SR0645 93RD GENERAL ASSEMBLY

SR0645 LRB093 22654 LRD 52280 r

SENATE RESOLUTION

WHEREAS, On October 18, 1919, Congress passed the National Prohibition Act, also known as the Volstead Act, after 46 states ratified the 18th Amendment, and the "Noble Experiment" began; and

WHEREAS, On February 14, 1933, Senator Blaine of Wisconsin introduced a resolution to repeal the 18th Amendment and return to the states the right to regulate alcoholic beverages within their borders, which was approved by the Senate on February 16, 1933; the House concurred on February 20, 1933 and sent the amendment on to the states for ratification; it required the approval of 36 states; and

WHEREAS, On July 10, 1933, Illinois ratified the 21st Amendment to the United States Constitution; and

WHEREAS, On December 5, 1933, Congress officially adopted the 21st Amendment to the Constitution, ending the nation's 13-year prohibition against the manufacture, distribution, and sale of alcoholic beverages; and

WHEREAS, For over 70 years, the 21st Amendment to the United States Constitution has given states the sovereign power to regulate alcoholic beverages within their borders by stating: "The transportation or importation into any State, Territory, or possession of the United States for delivery or use therein of intoxicating liquors, in violation of the laws thereof, is hereby prohibited."; and

WHEREAS, 12 suits have been initiated, primarily by wine 'connoisseurs', arguing that these state laws violate the Commerce Clause of the U.S. Constitution because they give in-state wineries special privileges such as selling directly to consumers; several Circuit Courts of Appeal have agreed with the plaintiffs and have ruled some state laws unconstitutional; the Second Circuit Court of Appeals and the Seventh Circuit Court of Appeals, which includes Illinois, held that states have the right to regulate alcoholic beverages within their borders, which includes the right to regulate interstate direct shipments of alcoholic beverages; and

WHEREAS, At risk is not only the permissibility of out-of-state wineries to ship directly to consumers but the ability of states to regulate all alcoholic beverages within their borders, which would lead to loss of liquor and sales taxes as well as the possibility of alcoholic beverages being sent to underage individuals; and

WHEREAS, The U.S. Supreme Court has agreed to hear this issue by consolidating 2 separate opposing Circuit Court of Appeals decisions, Heald v. Michigan Liquor Control Commission, 342 F.3d 517 (Nov. 4, 2003) and Swedenburg v. New York State Liquor Authority, 358 F.3d 223 (April 12, 2004); and

WHEREAS, Illinois Attorney General Lisa Madigan joined 35 other state Attorneys General supporting the states' rights to control and regulate direct shipment of alcoholic beverages into the separate states; Attorney General Madigan concurs that Illinois should have the right to regulate alcoholic beverages and will file an amicus curie brief with the Supreme Court; therefore, be it

RESOLVED, BY THE SENATE OF THE NINETY-THIRD GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that there is created a Senate Task Force on Illinois Alcoholic Beverage Laws for the purpose of examining whether Illinois laws regulating the importation of alcoholic beverages may be in jeopardy of being held invalid due to preferential treatment granted toward Illinois wine makers; and be it further

RESOLVED, That the Senate Task Force on Illinois Alcoholic Beverage Laws shall consist of the following members:

(1) The chairperson of the Illinois Senate Executive Committee, who shall be the chairperson of the Senate Task Force on Illinois Alcoholic Beverage Laws;

(2) 4 members of the General Assembly, 2 of whom shall be appointed by the President of the Senate and 2 of whom shall be appointed by the Minority Leader of the Senate;

(3) One member from the Associated Beer Distributors of Illinois appointed by its president;

(4) One member from the Wine Institute appointed by its president;

(5) One member from the Wine and Spirits Distributors of Illinois appointed by its president; and

(6) The Executive Director and the Chief Legal Counsel for the Illinois Liquor Control Commission, who shall serve as advisory members; and be it further

RESOLVED, That the public members shall serve on a voluntary basis and shall be responsible for any costs associated with their participation in the Senate Task Force; and be it further

RESOLVED, That all members of the Senate Task Force, other than the Executive Director and the Chief Legal Counsel for the Illinois Liquor Control Commission, shall be considered to be members with voting rights, that a simple majority of the voting members of the Senate Task Force shall constitute a quorum, that all actions and recommendations of the Senate Task Force must be approved by a simple majority of the voting members of the Senate Task Force, and that an appointed voting member representing the alcoholic beverage industry may send a surrogate to any and all meetings; however, no voting right shall be extended to the surrogate representing the voting member; and be it further

RESOLVED, That the Senate Task Force on Illinois Alcoholic Beverage Laws shall meet at the call of the chairperson and shall submit its recommendations in a report to the Senate no later than January 1, 2005; and be it further

RESOLVED, That suitable copies of this resolution be delivered to the Associated Beer Distributers of Illinois, the Wine Institute, the Wine and Spirits Distributers of Illinois, and the Illinois Liquor Control Commission.