102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4457

 

Introduced 1/21/2022, by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the General Provisions and State Employee Article of the Illinois Pension Code. Provides that the alternative retirement annuity under the State Employee Article applies to an investigator for the Illinois Liquor Control Commission, including an investigator for the Illinois Liquor Control Commission who is subject to the Tier 2 provisions. Authorizes investigators for the Illinois Liquor Control Commission to establish eligible creditable service under the alternative retirement annuity formula for certain service by applying and paying a specified contribution. Amends the Liquor Control Act of 1934. Provides that, subject to certain restrictions, the State Commission has the power to expend sums that the Executive Director deems necessary for the purchase of evidence and for the employment of persons to obtain evidence. Provides that an action for a violation of the Act shall be commenced by the State Commission not more than 18 months after conviction of the violation of the Act or other State law in a circuit court or, if there has not been a conviction, not more than 3 years after the violation occurred (instead of within 2 years after the date the State Commission becomes aware of the violation). Makes changes to provisions concerning notice of a violation of the Act and dismissals of an action for failing to provide that notice; inspection of premises by the State Commission and local liquor control commissioners; bonding requirements; and forfeiture of alcoholic liquor possessed, sold, shipped, or transported in violation of the Act. Makes other changes. Effective immediately.


LRB102 17775 RPS 24057 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4457LRB102 17775 RPS 24057 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by
5changing Sections 1-160, 14-110, and 14-152.1 as follows:
 
6    (40 ILCS 5/1-160)
7    Sec. 1-160. Provisions applicable to new hires.
8    (a) The provisions of this Section apply to a person who,
9on or after January 1, 2011, first becomes a member or a
10participant under any reciprocal retirement system or pension
11fund established under this Code, other than a retirement
12system or pension fund established under Article 2, 3, 4, 5, 6,
1315 or 18 of this Code, notwithstanding any other provision of
14this Code to the contrary, but do not apply to any self-managed
15plan established under this Code, to any person with respect
16to service as a sheriff's law enforcement employee under
17Article 7, or to any participant of the retirement plan
18established under Section 22-101. Notwithstanding anything to
19the contrary in this Section, for purposes of this Section, a
20person who participated in a retirement system under Article
2115 prior to January 1, 2011 shall be deemed a person who first
22became a member or participant prior to January 1, 2011 under
23any retirement system or pension fund subject to this Section.

 

 

HB4457- 2 -LRB102 17775 RPS 24057 b

1The changes made to this Section by Public Act 98-596 are a
2clarification of existing law and are intended to be
3retroactive to January 1, 2011 (the effective date of Public
4Act 96-889), notwithstanding the provisions of Section 1-103.1
5of this Code.
6    This Section does not apply to a person who first becomes a
7noncovered employee under Article 14 on or after the
8implementation date of the plan created under Section 1-161
9for that Article, unless that person elects under subsection
10(b) of Section 1-161 to instead receive the benefits provided
11under this Section and the applicable provisions of that
12Article.
13    This Section does not apply to a person who first becomes a
14member or participant under Article 16 on or after the
15implementation date of the plan created under Section 1-161
16for that Article, unless that person elects under subsection
17(b) of Section 1-161 to instead receive the benefits provided
18under this Section and the applicable provisions of that
19Article.
20    This Section does not apply to a person who elects under
21subsection (c-5) of Section 1-161 to receive the benefits
22under Section 1-161.
23    This Section does not apply to a person who first becomes a
24member or participant of an affected pension fund on or after 6
25months after the resolution or ordinance date, as defined in
26Section 1-162, unless that person elects under subsection (c)

 

 

HB4457- 3 -LRB102 17775 RPS 24057 b

1of Section 1-162 to receive the benefits provided under this
2Section and the applicable provisions of the Article under
3which he or she is a member or participant.
4    (b) "Final average salary" means the average monthly (or
5annual) salary obtained by dividing the total salary or
6earnings calculated under the Article applicable to the member
7or participant during the 96 consecutive months (or 8
8consecutive years) of service within the last 120 months (or
910 years) of service in which the total salary or earnings
10calculated under the applicable Article was the highest by the
11number of months (or years) of service in that period. For the
12purposes of a person who first becomes a member or participant
13of any retirement system or pension fund to which this Section
14applies on or after January 1, 2011, in this Code, "final
15average salary" shall be substituted for the following:
16        (1) In Article 7 (except for service as sheriff's law
17    enforcement employees), "final rate of earnings".
18        (2) In Articles 8, 9, 10, 11, and 12, "highest average
19    annual salary for any 4 consecutive years within the last
20    10 years of service immediately preceding the date of
21    withdrawal".
22        (3) In Article 13, "average final salary".
23        (4) In Article 14, "final average compensation".
24        (5) In Article 17, "average salary".
25        (6) In Section 22-207, "wages or salary received by
26    him at the date of retirement or discharge".

 

 

HB4457- 4 -LRB102 17775 RPS 24057 b

1    (b-5) Beginning on January 1, 2011, for all purposes under
2this Code (including without limitation the calculation of
3benefits and employee contributions), the annual earnings,
4salary, or wages (based on the plan year) of a member or
5participant to whom this Section applies shall not exceed
6$106,800; however, that amount shall annually thereafter be
7increased by the lesser of (i) 3% of that amount, including all
8previous adjustments, or (ii) one-half the annual unadjusted
9percentage increase (but not less than zero) in the consumer
10price index-u for the 12 months ending with the September
11preceding each November 1, including all previous adjustments.
12    For the purposes of this Section, "consumer price index-u"
13means the index published by the Bureau of Labor Statistics of
14the United States Department of Labor that measures the
15average change in prices of goods and services purchased by
16all urban consumers, United States city average, all items,
171982-84 = 100. The new amount resulting from each annual
18adjustment shall be determined by the Public Pension Division
19of the Department of Insurance and made available to the
20boards of the retirement systems and pension funds by November
211 of each year.
22    (c) A member or participant is entitled to a retirement
23annuity upon written application if he or she has attained age
2467 (beginning January 1, 2015, age 65 with respect to service
25under Article 12 of this Code that is subject to this Section)
26and has at least 10 years of service credit and is otherwise

 

 

HB4457- 5 -LRB102 17775 RPS 24057 b

1eligible under the requirements of the applicable Article.
2    A member or participant who has attained age 62 (beginning
3January 1, 2015, age 60 with respect to service under Article
412 of this Code that is subject to this Section) and has at
5least 10 years of service credit and is otherwise eligible
6under the requirements of the applicable Article may elect to
7receive the lower retirement annuity provided in subsection
8(d) of this Section.
9    (c-5) A person who first becomes a member or a participant
10subject to this Section on or after July 6, 2017 (the effective
11date of Public Act 100-23), notwithstanding any other
12provision of this Code to the contrary, is entitled to a
13retirement annuity under Article 8 or Article 11 upon written
14application if he or she has attained age 65 and has at least
1510 years of service credit and is otherwise eligible under the
16requirements of Article 8 or Article 11 of this Code,
17whichever is applicable.
18    (d) The retirement annuity of a member or participant who
19is retiring after attaining age 62 (beginning January 1, 2015,
20age 60 with respect to service under Article 12 of this Code
21that is subject to this Section) with at least 10 years of
22service credit shall be reduced by one-half of 1% for each full
23month that the member's age is under age 67 (beginning January
241, 2015, age 65 with respect to service under Article 12 of
25this Code that is subject to this Section).
26    (d-5) The retirement annuity payable under Article 8 or

 

 

HB4457- 6 -LRB102 17775 RPS 24057 b

1Article 11 to an eligible person subject to subsection (c-5)
2of this Section who is retiring at age 60 with at least 10
3years of service credit shall be reduced by one-half of 1% for
4each full month that the member's age is under age 65.
5    (d-10) Each person who first became a member or
6participant under Article 8 or Article 11 of this Code on or
7after January 1, 2011 and prior to the effective date of this
8amendatory Act of the 100th General Assembly shall make an
9irrevocable election either:
10        (i) to be eligible for the reduced retirement age
11    provided in subsections (c-5) and (d-5) of this Section,
12    the eligibility for which is conditioned upon the member
13    or participant agreeing to the increases in employee
14    contributions for age and service annuities provided in
15    subsection (a-5) of Section 8-174 of this Code (for
16    service under Article 8) or subsection (a-5) of Section
17    11-170 of this Code (for service under Article 11); or
18        (ii) to not agree to item (i) of this subsection
19    (d-10), in which case the member or participant shall
20    continue to be subject to the retirement age provisions in
21    subsections (c) and (d) of this Section and the employee
22    contributions for age and service annuity as provided in
23    subsection (a) of Section 8-174 of this Code (for service
24    under Article 8) or subsection (a) of Section 11-170 of
25    this Code (for service under Article 11).
26    The election provided for in this subsection shall be made

 

 

HB4457- 7 -LRB102 17775 RPS 24057 b

1between October 1, 2017 and November 15, 2017. A person
2subject to this subsection who makes the required election
3shall remain bound by that election. A person subject to this
4subsection who fails for any reason to make the required
5election within the time specified in this subsection shall be
6deemed to have made the election under item (ii).
7    (e) Any retirement annuity or supplemental annuity shall
8be subject to annual increases on the January 1 occurring
9either on or after the attainment of age 67 (beginning January
101, 2015, age 65 with respect to service under Article 12 of
11this Code that is subject to this Section and beginning on the
12effective date of this amendatory Act of the 100th General
13Assembly, age 65 with respect to service under Article 8 or
14Article 11 for eligible persons who: (i) are subject to
15subsection (c-5) of this Section; or (ii) made the election
16under item (i) of subsection (d-10) of this Section) or the
17first anniversary of the annuity start date, whichever is
18later. Each annual increase shall be calculated at 3% or
19one-half the annual unadjusted percentage increase (but not
20less than zero) in the consumer price index-u for the 12 months
21ending with the September preceding each November 1, whichever
22is less, of the originally granted retirement annuity. If the
23annual unadjusted percentage change in the consumer price
24index-u for the 12 months ending with the September preceding
25each November 1 is zero or there is a decrease, then the
26annuity shall not be increased.

 

 

HB4457- 8 -LRB102 17775 RPS 24057 b

1    For the purposes of Section 1-103.1 of this Code, the
2changes made to this Section by this amendatory Act of the
3100th General Assembly are applicable without regard to
4whether the employee was in active service on or after the
5effective date of this amendatory Act of the 100th General
6Assembly.
7    (f) The initial survivor's or widow's annuity of an
8otherwise eligible survivor or widow of a retired member or
9participant who first became a member or participant on or
10after January 1, 2011 shall be in the amount of 66 2/3% of the
11retired member's or participant's retirement annuity at the
12date of death. In the case of the death of a member or
13participant who has not retired and who first became a member
14or participant on or after January 1, 2011, eligibility for a
15survivor's or widow's annuity shall be determined by the
16applicable Article of this Code. The initial benefit shall be
1766 2/3% of the earned annuity without a reduction due to age. A
18child's annuity of an otherwise eligible child shall be in the
19amount prescribed under each Article if applicable. Any
20survivor's or widow's annuity shall be increased (1) on each
21January 1 occurring on or after the commencement of the
22annuity if the deceased member died while receiving a
23retirement annuity or (2) in other cases, on each January 1
24occurring after the first anniversary of the commencement of
25the annuity. Each annual increase shall be calculated at 3% or
26one-half the annual unadjusted percentage increase (but not

 

 

HB4457- 9 -LRB102 17775 RPS 24057 b

1less than zero) in the consumer price index-u for the 12 months
2ending with the September preceding each November 1, whichever
3is less, of the originally granted survivor's annuity. If the
4annual unadjusted percentage change in the consumer price
5index-u for the 12 months ending with the September preceding
6each November 1 is zero or there is a decrease, then the
7annuity shall not be increased.
8    (g) The benefits in Section 14-110 apply only if the
9person is a State policeman, a fire fighter in the fire
10protection service of a department, a conservation police
11officer, an investigator for the Secretary of State, an arson
12investigator, a Commerce Commission police officer,
13investigator for the Department of Revenue, Illinois Liquor
14Control Commission, or the Illinois Gaming Board, a security
15employee of the Department of Corrections or the Department of
16Juvenile Justice, or a security employee of the Department of
17Innovation and Technology, as those terms are defined in
18subsection (b) and subsection (c) of Section 14-110. A person
19who meets the requirements of this Section is entitled to an
20annuity calculated under the provisions of Section 14-110, in
21lieu of the regular or minimum retirement annuity, only if the
22person has withdrawn from service with not less than 20 years
23of eligible creditable service and has attained age 60,
24regardless of whether the attainment of age 60 occurs while
25the person is still in service.
26    (h) If a person who first becomes a member or a participant

 

 

HB4457- 10 -LRB102 17775 RPS 24057 b

1of a retirement system or pension fund subject to this Section
2on or after January 1, 2011 is receiving a retirement annuity
3or retirement pension under that system or fund and becomes a
4member or participant under any other system or fund created
5by this Code and is employed on a full-time basis, except for
6those members or participants exempted from the provisions of
7this Section under subsection (a) of this Section, then the
8person's retirement annuity or retirement pension under that
9system or fund shall be suspended during that employment. Upon
10termination of that employment, the person's retirement
11annuity or retirement pension payments shall resume and be
12recalculated if recalculation is provided for under the
13applicable Article of this Code.
14    If a person who first becomes a member of a retirement
15system or pension fund subject to this Section on or after
16January 1, 2012 and is receiving a retirement annuity or
17retirement pension under that system or fund and accepts on a
18contractual basis a position to provide services to a
19governmental entity from which he or she has retired, then
20that person's annuity or retirement pension earned as an
21active employee of the employer shall be suspended during that
22contractual service. A person receiving an annuity or
23retirement pension under this Code shall notify the pension
24fund or retirement system from which he or she is receiving an
25annuity or retirement pension, as well as his or her
26contractual employer, of his or her retirement status before

 

 

HB4457- 11 -LRB102 17775 RPS 24057 b

1accepting contractual employment. A person who fails to submit
2such notification shall be guilty of a Class A misdemeanor and
3required to pay a fine of $1,000. Upon termination of that
4contractual employment, the person's retirement annuity or
5retirement pension payments shall resume and, if appropriate,
6be recalculated under the applicable provisions of this Code.
7    (i) (Blank).
8    (j) In the case of a conflict between the provisions of
9this Section and any other provision of this Code, the
10provisions of this Section shall control.
11(Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17;
12100-563, eff. 12-8-17; 100-611, eff. 7-20-18; 100-1166, eff.
131-4-19; 101-610, eff. 1-1-20.)
 
14    (40 ILCS 5/14-110)  (from Ch. 108 1/2, par. 14-110)
15    Sec. 14-110. Alternative retirement annuity.
16    (a) Any member who has withdrawn from service with not
17less than 20 years of eligible creditable service and has
18attained age 55, and any member who has withdrawn from service
19with not less than 25 years of eligible creditable service and
20has attained age 50, regardless of whether the attainment of
21either of the specified ages occurs while the member is still
22in service, shall be entitled to receive at the option of the
23member, in lieu of the regular or minimum retirement annuity,
24a retirement annuity computed as follows:
25        (i) for periods of service as a noncovered employee:

 

 

HB4457- 12 -LRB102 17775 RPS 24057 b

1    if retirement occurs on or after January 1, 2001, 3% of
2    final average compensation for each year of creditable
3    service; if retirement occurs before January 1, 2001, 2
4    1/4% of final average compensation for each of the first
5    10 years of creditable service, 2 1/2% for each year above
6    10 years to and including 20 years of creditable service,
7    and 2 3/4% for each year of creditable service above 20
8    years; and
9        (ii) for periods of eligible creditable service as a
10    covered employee: if retirement occurs on or after January
11    1, 2001, 2.5% of final average compensation for each year
12    of creditable service; if retirement occurs before January
13    1, 2001, 1.67% of final average compensation for each of
14    the first 10 years of such service, 1.90% for each of the
15    next 10 years of such service, 2.10% for each year of such
16    service in excess of 20 but not exceeding 30, and 2.30% for
17    each year in excess of 30.
18    Such annuity shall be subject to a maximum of 75% of final
19average compensation if retirement occurs before January 1,
202001 or to a maximum of 80% of final average compensation if
21retirement occurs on or after January 1, 2001.
22    These rates shall not be applicable to any service
23performed by a member as a covered employee which is not
24eligible creditable service. Service as a covered employee
25which is not eligible creditable service shall be subject to
26the rates and provisions of Section 14-108.

 

 

HB4457- 13 -LRB102 17775 RPS 24057 b

1    (b) For the purpose of this Section, "eligible creditable
2service" means creditable service resulting from service in
3one or more of the following positions:
4        (1) State policeman;
5        (2) fire fighter in the fire protection service of a
6    department;
7        (3) air pilot;
8        (4) special agent;
9        (5) investigator for the Secretary of State;
10        (6) conservation police officer;
11        (7) investigator for the Department of Revenue, the
12    Illinois Liquor Control Commission, or the Illinois Gaming
13    Board;
14        (8) security employee of the Department of Human
15    Services;
16        (9) Central Management Services security police
17    officer;
18        (10) security employee of the Department of
19    Corrections or the Department of Juvenile Justice;
20        (11) dangerous drugs investigator;
21        (12) investigator for the Department of State Police;
22        (13) investigator for the Office of the Attorney
23    General;
24        (14) controlled substance inspector;
25        (15) investigator for the Office of the State's
26    Attorneys Appellate Prosecutor;

 

 

HB4457- 14 -LRB102 17775 RPS 24057 b

1        (16) Commerce Commission police officer;
2        (17) arson investigator;
3        (18) State highway maintenance worker;
4        (19) security employee of the Department of Innovation
5    and Technology; or
6        (20) transferred employee.
7    A person employed in one of the positions specified in
8this subsection is entitled to eligible creditable service for
9service credit earned under this Article while undergoing the
10basic police training course approved by the Illinois Law
11Enforcement Training Standards Board, if completion of that
12training is required of persons serving in that position. For
13the purposes of this Code, service during the required basic
14police training course shall be deemed performance of the
15duties of the specified position, even though the person is
16not a sworn peace officer at the time of the training.
17    A person under paragraph (20) is entitled to eligible
18creditable service for service credit earned under this
19Article on and after his or her transfer by Executive Order No.
202003-10, Executive Order No. 2004-2, or Executive Order No.
212016-1.
22    (c) For the purposes of this Section:
23        (1) The term "State policeman" includes any title or
24    position in the Department of State Police that is held by
25    an individual employed under the State Police Act.
26        (2) The term "fire fighter in the fire protection

 

 

HB4457- 15 -LRB102 17775 RPS 24057 b

1    service of a department" includes all officers in such
2    fire protection service including fire chiefs and
3    assistant fire chiefs.
4        (3) The term "air pilot" includes any employee whose
5    official job description on file in the Department of
6    Central Management Services, or in the department by which
7    he is employed if that department is not covered by the
8    Personnel Code, states that his principal duty is the
9    operation of aircraft, and who possesses a pilot's
10    license; however, the change in this definition made by
11    this amendatory Act of 1983 shall not operate to exclude
12    any noncovered employee who was an "air pilot" for the
13    purposes of this Section on January 1, 1984.
14        (4) The term "special agent" means any person who by
15    reason of employment by the Division of Narcotic Control,
16    the Bureau of Investigation or, after July 1, 1977, the
17    Division of Criminal Investigation, the Division of
18    Internal Investigation, the Division of Operations, or any
19    other Division or organizational entity in the Department
20    of State Police is vested by law with duties to maintain
21    public order, investigate violations of the criminal law
22    of this State, enforce the laws of this State, make
23    arrests and recover property. The term "special agent"
24    includes any title or position in the Department of State
25    Police that is held by an individual employed under the
26    State Police Act.

 

 

HB4457- 16 -LRB102 17775 RPS 24057 b

1        (5) The term "investigator for the Secretary of State"
2    means any person employed by the Office of the Secretary
3    of State and vested with such investigative duties as
4    render him ineligible for coverage under the Social
5    Security Act by reason of Sections 218(d)(5)(A),
6    218(d)(8)(D) and 218(l)(1) of that Act.
7        A person who became employed as an investigator for
8    the Secretary of State between January 1, 1967 and
9    December 31, 1975, and who has served as such until
10    attainment of age 60, either continuously or with a single
11    break in service of not more than 3 years duration, which
12    break terminated before January 1, 1976, shall be entitled
13    to have his retirement annuity calculated in accordance
14    with subsection (a), notwithstanding that he has less than
15    20 years of credit for such service.
16        (6) The term "Conservation Police Officer" means any
17    person employed by the Division of Law Enforcement of the
18    Department of Natural Resources and vested with such law
19    enforcement duties as render him ineligible for coverage
20    under the Social Security Act by reason of Sections
21    218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
22    term "Conservation Police Officer" includes the positions
23    of Chief Conservation Police Administrator and Assistant
24    Conservation Police Administrator.
25        (7) The term "investigator for the Department of
26    Revenue" means any person employed by the Department of

 

 

HB4457- 17 -LRB102 17775 RPS 24057 b

1    Revenue and vested with such investigative duties as
2    render him ineligible for coverage under the Social
3    Security Act by reason of Sections 218(d)(5)(A),
4    218(d)(8)(D) and 218(l)(1) of that Act.
5        The term "investigator for the Illinois Liquor Control
6    Commission" means any person employed as such by the
7    Illinois Liquor Control Commission and vested with such
8    peace officer duties as render the person ineligible for
9    coverage under the Social Security Act by reason of
10    Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that
11    Act.
12        The term "investigator for the Illinois Gaming Board"
13    means any person employed as such by the Illinois Gaming
14    Board and vested with such peace officer duties as render
15    the person ineligible for coverage under the Social
16    Security Act by reason of Sections 218(d)(5)(A),
17    218(d)(8)(D), and 218(l)(1) of that Act.
18        (8) The term "security employee of the Department of
19    Human Services" means any person employed by the
20    Department of Human Services who (i) is employed at the
21    Chester Mental Health Center and has daily contact with
22    the residents thereof, (ii) is employed within a security
23    unit at a facility operated by the Department and has
24    daily contact with the residents of the security unit,
25    (iii) is employed at a facility operated by the Department
26    that includes a security unit and is regularly scheduled

 

 

HB4457- 18 -LRB102 17775 RPS 24057 b

1    to work at least 50% of his or her working hours within
2    that security unit, or (iv) is a mental health police
3    officer. "Mental health police officer" means any person
4    employed by the Department of Human Services in a position
5    pertaining to the Department's mental health and
6    developmental disabilities functions who is vested with
7    such law enforcement duties as render the person
8    ineligible for coverage under the Social Security Act by
9    reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
10    218(l)(1) of that Act. "Security unit" means that portion
11    of a facility that is devoted to the care, containment,
12    and treatment of persons committed to the Department of
13    Human Services as sexually violent persons, persons unfit
14    to stand trial, or persons not guilty by reason of
15    insanity. With respect to past employment, references to
16    the Department of Human Services include its predecessor,
17    the Department of Mental Health and Developmental
18    Disabilities.
19        The changes made to this subdivision (c)(8) by Public
20    Act 92-14 apply to persons who retire on or after January
21    1, 2001, notwithstanding Section 1-103.1.
22        (9) "Central Management Services security police
23    officer" means any person employed by the Department of
24    Central Management Services who is vested with such law
25    enforcement duties as render him ineligible for coverage
26    under the Social Security Act by reason of Sections

 

 

HB4457- 19 -LRB102 17775 RPS 24057 b

1    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
2        (10) For a member who first became an employee under
3    this Article before July 1, 2005, the term "security
4    employee of the Department of Corrections or the
5    Department of Juvenile Justice" means any employee of the
6    Department of Corrections or the Department of Juvenile
7    Justice or the former Department of Personnel, and any
8    member or employee of the Prisoner Review Board, who has
9    daily contact with inmates or youth by working within a
10    correctional facility or Juvenile facility operated by the
11    Department of Juvenile Justice or who is a parole officer
12    or an employee who has direct contact with committed
13    persons in the performance of his or her job duties. For a
14    member who first becomes an employee under this Article on
15    or after July 1, 2005, the term means an employee of the
16    Department of Corrections or the Department of Juvenile
17    Justice who is any of the following: (i) officially
18    headquartered at a correctional facility or Juvenile
19    facility operated by the Department of Juvenile Justice,
20    (ii) a parole officer, (iii) a member of the apprehension
21    unit, (iv) a member of the intelligence unit, (v) a member
22    of the sort team, or (vi) an investigator.
23        (11) The term "dangerous drugs investigator" means any
24    person who is employed as such by the Department of Human
25    Services.
26        (12) The term "investigator for the Department of

 

 

HB4457- 20 -LRB102 17775 RPS 24057 b

1    State Police" means a person employed by the Department of
2    State Police who is vested under Section 4 of the Narcotic
3    Control Division Abolition Act with such law enforcement
4    powers as render him ineligible for coverage under the
5    Social Security Act by reason of Sections 218(d)(5)(A),
6    218(d)(8)(D) and 218(l)(1) of that Act.
7        (13) "Investigator for the Office of the Attorney
8    General" means any person who is employed as such by the
9    Office of the Attorney General and is vested with such
10    investigative duties as render him ineligible for coverage
11    under the Social Security Act by reason of Sections
12    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
13    the period before January 1, 1989, the term includes all
14    persons who were employed as investigators by the Office
15    of the Attorney General, without regard to social security
16    status.
17        (14) "Controlled substance inspector" means any person
18    who is employed as such by the Department of Professional
19    Regulation and is vested with such law enforcement duties
20    as render him ineligible for coverage under the Social
21    Security Act by reason of Sections 218(d)(5)(A),
22    218(d)(8)(D) and 218(l)(1) of that Act. The term
23    "controlled substance inspector" includes the Program
24    Executive of Enforcement and the Assistant Program
25    Executive of Enforcement.
26        (15) The term "investigator for the Office of the

 

 

HB4457- 21 -LRB102 17775 RPS 24057 b

1    State's Attorneys Appellate Prosecutor" means a person
2    employed in that capacity on a full time basis under the
3    authority of Section 7.06 of the State's Attorneys
4    Appellate Prosecutor's Act.
5        (16) "Commerce Commission police officer" means any
6    person employed by the Illinois Commerce Commission who is
7    vested with such law enforcement duties as render him
8    ineligible for coverage under the Social Security Act by
9    reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
10    218(l)(1) of that Act.
11        (17) "Arson investigator" means any person who is
12    employed as such by the Office of the State Fire Marshal
13    and is vested with such law enforcement duties as render
14    the person ineligible for coverage under the Social
15    Security Act by reason of Sections 218(d)(5)(A),
16    218(d)(8)(D), and 218(l)(1) of that Act. A person who was
17    employed as an arson investigator on January 1, 1995 and
18    is no longer in service but not yet receiving a retirement
19    annuity may convert his or her creditable service for
20    employment as an arson investigator into eligible
21    creditable service by paying to the System the difference
22    between the employee contributions actually paid for that
23    service and the amounts that would have been contributed
24    if the applicant were contributing at the rate applicable
25    to persons with the same social security status earning
26    eligible creditable service on the date of application.

 

 

HB4457- 22 -LRB102 17775 RPS 24057 b

1        (18) The term "State highway maintenance worker" means
2    a person who is either of the following:
3            (i) A person employed on a full-time basis by the
4        Illinois Department of Transportation in the position
5        of highway maintainer, highway maintenance lead
6        worker, highway maintenance lead/lead worker, heavy
7        construction equipment operator, power shovel
8        operator, or bridge mechanic; and whose principal
9        responsibility is to perform, on the roadway, the
10        actual maintenance necessary to keep the highways that
11        form a part of the State highway system in serviceable
12        condition for vehicular traffic.
13            (ii) A person employed on a full-time basis by the
14        Illinois State Toll Highway Authority in the position
15        of equipment operator/laborer H-4, equipment
16        operator/laborer H-6, welder H-4, welder H-6,
17        mechanical/electrical H-4, mechanical/electrical H-6,
18        water/sewer H-4, water/sewer H-6, sign maker/hanger
19        H-4, sign maker/hanger H-6, roadway lighting H-4,
20        roadway lighting H-6, structural H-4, structural H-6,
21        painter H-4, or painter H-6; and whose principal
22        responsibility is to perform, on the roadway, the
23        actual maintenance necessary to keep the Authority's
24        tollways in serviceable condition for vehicular
25        traffic.
26        (19) The term "security employee of the Department of

 

 

HB4457- 23 -LRB102 17775 RPS 24057 b

1    Innovation and Technology" means a person who was a
2    security employee of the Department of Corrections or the
3    Department of Juvenile Justice, was transferred to the
4    Department of Innovation and Technology pursuant to
5    Executive Order 2016-01, and continues to perform similar
6    job functions under that Department.
7        (20) "Transferred employee" means an employee who was
8    transferred to the Department of Central Management
9    Services by Executive Order No. 2003-10 or Executive Order
10    No. 2004-2 or transferred to the Department of Innovation
11    and Technology by Executive Order No. 2016-1, or both, and
12    was entitled to eligible creditable service for services
13    immediately preceding the transfer.
14    (d) A security employee of the Department of Corrections
15or the Department of Juvenile Justice, a security employee of
16the Department of Human Services who is not a mental health
17police officer, and a security employee of the Department of
18Innovation and Technology shall not be eligible for the
19alternative retirement annuity provided by this Section unless
20he or she meets the following minimum age and service
21requirements at the time of retirement:
22        (i) 25 years of eligible creditable service and age
23    55; or
24        (ii) beginning January 1, 1987, 25 years of eligible
25    creditable service and age 54, or 24 years of eligible
26    creditable service and age 55; or

 

 

HB4457- 24 -LRB102 17775 RPS 24057 b

1        (iii) beginning January 1, 1988, 25 years of eligible
2    creditable service and age 53, or 23 years of eligible
3    creditable service and age 55; or
4        (iv) beginning January 1, 1989, 25 years of eligible
5    creditable service and age 52, or 22 years of eligible
6    creditable service and age 55; or
7        (v) beginning January 1, 1990, 25 years of eligible
8    creditable service and age 51, or 21 years of eligible
9    creditable service and age 55; or
10        (vi) beginning January 1, 1991, 25 years of eligible
11    creditable service and age 50, or 20 years of eligible
12    creditable service and age 55.
13    Persons who have service credit under Article 16 of this
14Code for service as a security employee of the Department of
15Corrections or the Department of Juvenile Justice, or the
16Department of Human Services in a position requiring
17certification as a teacher may count such service toward
18establishing their eligibility under the service requirements
19of this Section; but such service may be used only for
20establishing such eligibility, and not for the purpose of
21increasing or calculating any benefit.
22    (e) If a member enters military service while working in a
23position in which eligible creditable service may be earned,
24and returns to State service in the same or another such
25position, and fulfills in all other respects the conditions
26prescribed in this Article for credit for military service,

 

 

HB4457- 25 -LRB102 17775 RPS 24057 b

1such military service shall be credited as eligible creditable
2service for the purposes of the retirement annuity prescribed
3in this Section.
4    (f) For purposes of calculating retirement annuities under
5this Section, periods of service rendered after December 31,
61968 and before October 1, 1975 as a covered employee in the
7position of special agent, conservation police officer, mental
8health police officer, or investigator for the Secretary of
9State, shall be deemed to have been service as a noncovered
10employee, provided that the employee pays to the System prior
11to retirement an amount equal to (1) the difference between
12the employee contributions that would have been required for
13such service as a noncovered employee, and the amount of
14employee contributions actually paid, plus (2) if payment is
15made after July 31, 1987, regular interest on the amount
16specified in item (1) from the date of service to the date of
17payment.
18    For purposes of calculating retirement annuities under
19this Section, periods of service rendered after December 31,
201968 and before January 1, 1982 as a covered employee in the
21position of investigator for the Department of Revenue shall
22be deemed to have been service as a noncovered employee,
23provided that the employee pays to the System prior to
24retirement an amount equal to (1) the difference between the
25employee contributions that would have been required for such
26service as a noncovered employee, and the amount of employee

 

 

HB4457- 26 -LRB102 17775 RPS 24057 b

1contributions actually paid, plus (2) if payment is made after
2January 1, 1990, regular interest on the amount specified in
3item (1) from the date of service to the date of payment.
4    (g) A State policeman may elect, not later than January 1,
51990, to establish eligible creditable service for up to 10
6years of his service as a policeman under Article 3, by filing
7a written election with the Board, accompanied by payment of
8an amount to be determined by the Board, equal to (i) the
9difference between the amount of employee and employer
10contributions transferred to the System under Section 3-110.5,
11and the amounts that would have been contributed had such
12contributions been made at the rates applicable to State
13policemen, plus (ii) interest thereon at the effective rate
14for each year, compounded annually, from the date of service
15to the date of payment.
16    Subject to the limitation in subsection (i), a State
17policeman may elect, not later than July 1, 1993, to establish
18eligible creditable service for up to 10 years of his service
19as a member of the County Police Department under Article 9, by
20filing a written election with the Board, accompanied by
21payment of an amount to be determined by the Board, equal to
22(i) the difference between the amount of employee and employer
23contributions transferred to the System under Section 9-121.10
24and the amounts that would have been contributed had those
25contributions been made at the rates applicable to State
26policemen, plus (ii) interest thereon at the effective rate

 

 

HB4457- 27 -LRB102 17775 RPS 24057 b

1for each year, compounded annually, from the date of service
2to the date of payment.
3    (h) Subject to the limitation in subsection (i), a State
4policeman or investigator for the Secretary of State may elect
5to establish eligible creditable service for up to 12 years of
6his service as a policeman under Article 5, by filing a written
7election with the Board on or before January 31, 1992, and
8paying to the System by January 31, 1994 an amount to be
9determined by the Board, equal to (i) the difference between
10the amount of employee and employer contributions transferred
11to the System under Section 5-236, and the amounts that would
12have been contributed had such contributions been made at the
13rates applicable to State policemen, plus (ii) interest
14thereon at the effective rate for each year, compounded
15annually, from the date of service to the date of payment.
16    Subject to the limitation in subsection (i), a State
17policeman, conservation police officer, or investigator for
18the Secretary of State may elect to establish eligible
19creditable service for up to 10 years of service as a sheriff's
20law enforcement employee under Article 7, by filing a written
21election with the Board on or before January 31, 1993, and
22paying to the System by January 31, 1994 an amount to be
23determined by the Board, equal to (i) the difference between
24the amount of employee and employer contributions transferred
25to the System under Section 7-139.7, and the amounts that
26would have been contributed had such contributions been made

 

 

HB4457- 28 -LRB102 17775 RPS 24057 b

1at the rates applicable to State policemen, plus (ii) interest
2thereon at the effective rate for each year, compounded
3annually, from the date of service to the date of payment.
4    Subject to the limitation in subsection (i), a State
5policeman, conservation police officer, or investigator for
6the Secretary of State may elect to establish eligible
7creditable service for up to 5 years of service as a police
8officer under Article 3, a policeman under Article 5, a
9sheriff's law enforcement employee under Article 7, a member
10of the county police department under Article 9, or a police
11officer under Article 15 by filing a written election with the
12Board and paying to the System an amount to be determined by
13the Board, equal to (i) the difference between the amount of
14employee and employer contributions transferred to the System
15under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
16and the amounts that would have been contributed had such
17contributions been made at the rates applicable to State
18policemen, plus (ii) interest thereon at the effective rate
19for each year, compounded annually, from the date of service
20to the date of payment.
21    Subject to the limitation in subsection (i), an
22investigator for the Office of the Attorney General, or an
23investigator for the Department of Revenue, may elect to
24establish eligible creditable service for up to 5 years of
25service as a police officer under Article 3, a policeman under
26Article 5, a sheriff's law enforcement employee under Article

 

 

HB4457- 29 -LRB102 17775 RPS 24057 b

17, or a member of the county police department under Article 9
2by filing a written election with the Board within 6 months
3after August 25, 2009 (the effective date of Public Act
496-745) and paying to the System an amount to be determined by
5the Board, equal to (i) the difference between the amount of
6employee and employer contributions transferred to the System
7under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
8amounts that would have been contributed had such
9contributions been made at the rates applicable to State
10policemen, plus (ii) interest thereon at the actuarially
11assumed rate for each year, compounded annually, from the date
12of service to the date of payment.
13    Subject to the limitation in subsection (i), a State
14policeman, conservation police officer, investigator for the
15Office of the Attorney General, an investigator for the
16Department of Revenue, or investigator for the Secretary of
17State may elect to establish eligible creditable service for
18up to 5 years of service as a person employed by a
19participating municipality to perform police duties, or law
20enforcement officer employed on a full-time basis by a forest
21preserve district under Article 7, a county corrections
22officer, or a court services officer under Article 9, by
23filing a written election with the Board within 6 months after
24August 25, 2009 (the effective date of Public Act 96-745) and
25paying to the System an amount to be determined by the Board,
26equal to (i) the difference between the amount of employee and

 

 

HB4457- 30 -LRB102 17775 RPS 24057 b

1employer contributions transferred to the System under
2Sections 7-139.8 and 9-121.10 and the amounts that would have
3been contributed had such contributions been made at the rates
4applicable to State policemen, plus (ii) interest thereon at
5the actuarially assumed rate for each year, compounded
6annually, from the date of service to the date of payment.
7    Subject to the limitation in subsection (i), an
8investigator for the Illinois Liquor Control Commission may
9elect to establish eligible creditable service for up to 5
10years of service as a police officer under Article 3, a
11policeman under Article 5, a sheriff's law enforcement
12employee under Article 7, or a member of the county police
13department under Article 9 by filing a written election with
14the Board within 6 months after the effective date of this
15amendatory Act of the 102nd General Assembly and paying to the
16System an amount to be determined by the Board, equal to (i)
17the difference between the amount of employee and employer
18contributions transferred to the System under Section 3-110.6,
195-236, 7-139.8, or 9-121.10 and the amounts that would have
20been contributed had such contributions been made at the rates
21applicable to State policemen, plus (ii) interest thereon at
22the actuarially assumed rate for each year, compounded
23annually, from the date of service to the date of payment.
24    (i) The total amount of eligible creditable service
25established by any person under subsections (g), (h), (j),
26(k), (l), (l-5), and (o), and (p) of this Section shall not

 

 

HB4457- 31 -LRB102 17775 RPS 24057 b

1exceed 12 years.
2    (j) Subject to the limitation in subsection (i), an
3investigator for the Office of the State's Attorneys Appellate
4Prosecutor or a controlled substance inspector may elect to
5establish eligible creditable service for up to 10 years of
6his service as a policeman under Article 3 or a sheriff's law
7enforcement employee under Article 7, by filing a written
8election with the Board, accompanied by payment of an amount
9to be determined by the Board, equal to (1) the difference
10between the amount of employee and employer contributions
11transferred to the System under Section 3-110.6 or 7-139.8,
12and the amounts that would have been contributed had such
13contributions been made at the rates applicable to State
14policemen, plus (2) interest thereon at the effective rate for
15each year, compounded annually, from the date of service to
16the date of payment.
17    (k) Subject to the limitation in subsection (i) of this
18Section, an alternative formula employee may elect to
19establish eligible creditable service for periods spent as a
20full-time law enforcement officer or full-time corrections
21officer employed by the federal government or by a state or
22local government located outside of Illinois, for which credit
23is not held in any other public employee pension fund or
24retirement system. To obtain this credit, the applicant must
25file a written application with the Board by March 31, 1998,
26accompanied by evidence of eligibility acceptable to the Board

 

 

HB4457- 32 -LRB102 17775 RPS 24057 b

1and payment of an amount to be determined by the Board, equal
2to (1) employee contributions for the credit being
3established, based upon the applicant's salary on the first
4day as an alternative formula employee after the employment
5for which credit is being established and the rates then
6applicable to alternative formula employees, plus (2) an
7amount determined by the Board to be the employer's normal
8cost of the benefits accrued for the credit being established,
9plus (3) regular interest on the amounts in items (1) and (2)
10from the first day as an alternative formula employee after
11the employment for which credit is being established to the
12date of payment.
13    (l) Subject to the limitation in subsection (i), a
14security employee of the Department of Corrections may elect,
15not later than July 1, 1998, to establish eligible creditable
16service for up to 10 years of his or her service as a policeman
17under Article 3, by filing a written election with the Board,
18accompanied by payment of an amount to be determined by the
19Board, equal to (i) the difference between the amount of
20employee and employer contributions transferred to the System
21under Section 3-110.5, and the amounts that would have been
22contributed had such contributions been made at the rates
23applicable to security employees of the Department of
24Corrections, plus (ii) interest thereon at the effective rate
25for each year, compounded annually, from the date of service
26to the date of payment.

 

 

HB4457- 33 -LRB102 17775 RPS 24057 b

1    (l-5) Subject to the limitation in subsection (i) of this
2Section, a State policeman may elect to establish eligible
3creditable service for up to 5 years of service as a full-time
4law enforcement officer employed by the federal government or
5by a state or local government located outside of Illinois for
6which credit is not held in any other public employee pension
7fund or retirement system. To obtain this credit, the
8applicant must file a written application with the Board no
9later than 3 years after the effective date of this amendatory
10Act of the 101st General Assembly, accompanied by evidence of
11eligibility acceptable to the Board and payment of an amount
12to be determined by the Board, equal to (1) employee
13contributions for the credit being established, based upon the
14applicant's salary on the first day as an alternative formula
15employee after the employment for which credit is being
16established and the rates then applicable to alternative
17formula employees, plus (2) an amount determined by the Board
18to be the employer's normal cost of the benefits accrued for
19the credit being established, plus (3) regular interest on the
20amounts in items (1) and (2) from the first day as an
21alternative formula employee after the employment for which
22credit is being established to the date of payment.
23    (m) The amendatory changes to this Section made by this
24amendatory Act of the 94th General Assembly apply only to: (1)
25security employees of the Department of Juvenile Justice
26employed by the Department of Corrections before the effective

 

 

HB4457- 34 -LRB102 17775 RPS 24057 b

1date of this amendatory Act of the 94th General Assembly and
2transferred to the Department of Juvenile Justice by this
3amendatory Act of the 94th General Assembly; and (2) persons
4employed by the Department of Juvenile Justice on or after the
5effective date of this amendatory Act of the 94th General
6Assembly who are required by subsection (b) of Section
73-2.5-15 of the Unified Code of Corrections to have any
8bachelor's or advanced degree from an accredited college or
9university or, in the case of persons who provide vocational
10training, who are required to have adequate knowledge in the
11skill for which they are providing the vocational training.
12    (n) A person employed in a position under subsection (b)
13of this Section who has purchased service credit under
14subsection (j) of Section 14-104 or subsection (b) of Section
1514-105 in any other capacity under this Article may convert up
16to 5 years of that service credit into service credit covered
17under this Section by paying to the Fund an amount equal to (1)
18the additional employee contribution required under Section
1914-133, plus (2) the additional employer contribution required
20under Section 14-131, plus (3) interest on items (1) and (2) at
21the actuarially assumed rate from the date of the service to
22the date of payment.
23    (o) Subject to the limitation in subsection (i), a
24conservation police officer, investigator for the Secretary of
25State, Commerce Commission police officer, investigator for
26the Department of Revenue or the Illinois Gaming Board, or

 

 

HB4457- 35 -LRB102 17775 RPS 24057 b

1arson investigator subject to subsection (g) of Section 1-160
2may elect to convert up to 8 years of service credit
3established before the effective date of this amendatory Act
4of the 101st General Assembly as a conservation police
5officer, investigator for the Secretary of State, Commerce
6Commission police officer, investigator for the Department of
7Revenue or the Illinois Gaming Board, or arson investigator
8under this Article into eligible creditable service by filing
9a written election with the Board no later than one year after
10the effective date of this amendatory Act of the 101st General
11Assembly, accompanied by payment of an amount to be determined
12by the Board equal to (i) the difference between the amount of
13the employee contributions actually paid for that service and
14the amount of the employee contributions that would have been
15paid had the employee contributions been made as a noncovered
16employee serving in a position in which eligible creditable
17service, as defined in this Section, may be earned, plus (ii)
18interest thereon at the effective rate for each year,
19compounded annually, from the date of service to the date of
20payment.
21    (p) Subject to the limitation in subsection (i), an
22investigator for the Illinois Liquor Control Commission may
23elect to convert up to 8 years of service credit established
24before the effective date of this amendatory Act of the 102nd
25General Assembly as an investigator for the Illinois Liquor
26Control Commission under this Article into eligible creditable

 

 

HB4457- 36 -LRB102 17775 RPS 24057 b

1service by filing a written election with the Board no later
2than one year after the effective date of this amendatory Act
3of the 102nd General Assembly, accompanied by payment of an
4amount to be determined by the Board equal to (i) the
5difference between the amount of the employee contributions
6actually paid for that service and the amount of the employee
7contributions that would have been paid had the employee
8contributions been made as a noncovered employee serving in a
9position in which eligible creditable service, as defined in
10this Section, may be earned, plus (ii) interest thereon at the
11effective rate for each year, compounded annually, from the
12date of service to the date of payment.
13(Source: P.A. 100-19, eff. 1-1-18; 100-611, eff. 7-20-18;
14101-610, eff. 1-1-20.)
 
15    (40 ILCS 5/14-152.1)
16    Sec. 14-152.1. Application and expiration of new benefit
17increases.
18    (a) As used in this Section, "new benefit increase" means
19an increase in the amount of any benefit provided under this
20Article, or an expansion of the conditions of eligibility for
21any benefit under this Article, that results from an amendment
22to this Code that takes effect after June 1, 2005 (the
23effective date of Public Act 94-4). "New benefit increase",
24however, does not include any benefit increase resulting from
25the changes made to Article 1 or this Article by Public Act

 

 

HB4457- 37 -LRB102 17775 RPS 24057 b

196-37, Public Act 100-23, Public Act 100-587, Public Act
2100-611, Public Act 101-10, Public Act 101-610, or this
3amendatory Act of the 102nd General Assembly or this
4amendatory Act of the 101st General Assembly.
5    (b) Notwithstanding any other provision of this Code or
6any subsequent amendment to this Code, every new benefit
7increase is subject to this Section and shall be deemed to be
8granted only in conformance with and contingent upon
9compliance with the provisions of this Section.
10    (c) The Public Act enacting a new benefit increase must
11identify and provide for payment to the System of additional
12funding at least sufficient to fund the resulting annual
13increase in cost to the System as it accrues.
14    Every new benefit increase is contingent upon the General
15Assembly providing the additional funding required under this
16subsection. The Commission on Government Forecasting and
17Accountability shall analyze whether adequate additional
18funding has been provided for the new benefit increase and
19shall report its analysis to the Public Pension Division of
20the Department of Insurance. A new benefit increase created by
21a Public Act that does not include the additional funding
22required under this subsection is null and void. If the Public
23Pension Division determines that the additional funding
24provided for a new benefit increase under this subsection is
25or has become inadequate, it may so certify to the Governor and
26the State Comptroller and, in the absence of corrective action

 

 

HB4457- 38 -LRB102 17775 RPS 24057 b

1by the General Assembly, the new benefit increase shall expire
2at the end of the fiscal year in which the certification is
3made.
4    (d) Every new benefit increase shall expire 5 years after
5its effective date or on such earlier date as may be specified
6in the language enacting the new benefit increase or provided
7under subsection (c). This does not prevent the General
8Assembly from extending or re-creating a new benefit increase
9by law.
10    (e) Except as otherwise provided in the language creating
11the new benefit increase, a new benefit increase that expires
12under this Section continues to apply to persons who applied
13and qualified for the affected benefit while the new benefit
14increase was in effect and to the affected beneficiaries and
15alternate payees of such persons, but does not apply to any
16other person, including, without limitation, a person who
17continues in service after the expiration date and did not
18apply and qualify for the affected benefit while the new
19benefit increase was in effect.
20(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
21100-611, eff. 7-20-18; 101-10, eff. 6-5-19; 101-81, eff.
227-12-19; 101-610, eff. 1-1-20.)
 
23    Section 10. The Liquor Control Act of 1934 is amended by
24changing Sections 3-12, 4-4, 8-2, 10-8, and 10-6 and by adding
25Section 3-4.1 as follows:
 

 

 

HB4457- 39 -LRB102 17775 RPS 24057 b

1    (235 ILCS 5/3-4.1 new)
2    Sec. 3-4.1. Obtaining evidence. The State Commission has
3the power to expend sums that the Executive Director deems
4necessary for the purchase of evidence and for the employment
5of persons to obtain evidence. The sums shall be advanced to
6employees authorized by the Executive Director to expend
7funds, on vouchers signed by the Executive Director.
8    In addition, the Executive Director is authorized to
9maintain one or more commercial checking accounts with any
10State banking corporation or corporations organized under or
11subject to the Illinois Banking Act for the deposit and
12withdrawal of moneys to be used solely for the purchase of
13evidence and for the employment of persons to obtain evidence.
14No check may be written on nor any withdrawal made from such an
15account except on the written signature of 2 persons
16designated by the Executive Director to write those checks and
17make those withdrawals. The balance of moneys on deposit in
18any such account shall not exceed $25,000 at any time, nor
19shall any one check written on or single withdrawal made from
20any such account exceed $25,000.
 
21    (235 ILCS 5/3-12)
22    Sec. 3-12. Powers and duties of State Commission.
23    (a) The State Commission shall have the following powers,
24functions, and duties:

 

 

HB4457- 40 -LRB102 17775 RPS 24057 b

1        (1) To receive applications and to issue licenses to
2    manufacturers, foreign importers, importing distributors,
3    distributors, non-resident dealers, on premise consumption
4    retailers, off premise sale retailers, special event
5    retailer licensees, special use permit licenses, auction
6    liquor licenses, brew pubs, caterer retailers,
7    non-beverage users, railroads, including owners and
8    lessees of sleeping, dining and cafe cars, airplanes,
9    boats, brokers, and wine maker's premises licensees in
10    accordance with the provisions of this Act, and to suspend
11    or revoke such licenses upon the State Commission's
12    determination, upon notice after hearing, that a licensee
13    has violated any provision of this Act or any rule or
14    regulation issued pursuant thereto and in effect for 30
15    days prior to such violation. Except in the case of an
16    action taken pursuant to a violation of Section 6-3, 6-5,
17    or 6-9, any action by the State Commission to suspend or
18    revoke a licensee's license may be limited to the license
19    for the specific premises where the violation occurred. An
20    action for a violation of this Act shall be commenced by
21    the State Commission not more than 18 months after
22    conviction of the violation of the Act or other State law
23    in a circuit court or, if there has not been a conviction,
24    not more than 3 years after the violation occurred within
25    2 years after the date the State Commission becomes aware
26    of the violation.

 

 

HB4457- 41 -LRB102 17775 RPS 24057 b

1        In lieu of suspending or revoking a license, the
2    commission may impose a fine, upon the State Commission's
3    determination and notice after hearing, that a licensee
4    has violated any provision of this Act or any rule or
5    regulation issued pursuant thereto and in effect for 30
6    days prior to such violation.
7        For the purpose of this paragraph (1), when
8    determining multiple violations for the sale of alcohol to
9    a person under the age of 21, a second or subsequent
10    violation for the sale of alcohol to a person under the age
11    of 21 shall only be considered if it was committed within 5
12    years after the date when a prior violation for the sale of
13    alcohol to a person under the age of 21 was committed.
14        The fine imposed under this paragraph may not exceed
15    $500 for each violation. Each day that the activity, which
16    gave rise to the original fine, continues is a separate
17    violation. The maximum fine that may be levied against any
18    licensee, for the period of the license, shall not exceed
19    $20,000. The maximum penalty that may be imposed on a
20    licensee for selling a bottle of alcoholic liquor with a
21    foreign object in it or serving from a bottle of alcoholic
22    liquor with a foreign object in it shall be the
23    destruction of that bottle of alcoholic liquor for the
24    first 10 bottles so sold or served from by the licensee.
25    For the eleventh bottle of alcoholic liquor and for each
26    third bottle thereafter sold or served from by the

 

 

HB4457- 42 -LRB102 17775 RPS 24057 b

1    licensee with a foreign object in it, the maximum penalty
2    that may be imposed on the licensee is the destruction of
3    the bottle of alcoholic liquor and a fine of up to $50.
4        Any notice issued by the State Commission to a
5    licensee for a violation of this Act or any notice with
6    respect to settlement or offer in compromise shall include
7    the field report, photographs, and any other supporting
8    documentation necessary to reasonably inform the licensee
9    of the nature and extent of the violation or the conduct
10    alleged to have occurred, which may include, but is not
11    limited to, the field report, photographs, and any other
12    supporting documentation. The failure to reasonably inform
13    the licensee include such required documentation shall
14    result in the dismissal of the action.
15        (2) To adopt such rules and regulations consistent
16    with the provisions of this Act which shall be necessary
17    to carry on its functions and duties to the end that the
18    health, safety and welfare of the People of the State of
19    Illinois shall be protected and temperance in the
20    consumption of alcoholic liquors shall be fostered and
21    promoted and to distribute copies of such rules and
22    regulations to all licensees affected thereby.
23        (3) To call upon other administrative departments of
24    the State, county and municipal governments, county and
25    city police departments and upon prosecuting officers for
26    such information and assistance as it deems necessary in

 

 

HB4457- 43 -LRB102 17775 RPS 24057 b

1    the performance of its duties.
2        (4) To recommend to local commissioners rules and
3    regulations, not inconsistent with the law, for the
4    distribution and sale of alcoholic liquors throughout the
5    State.
6        (5) To inspect, or cause to be inspected, at
7    reasonable times any premises in this State where
8    alcoholic liquors are manufactured, distributed,
9    warehoused, or sold. Nothing in this Act authorizes an
10    agent of the State Commission to inspect private areas
11    within the premises without reasonable suspicion or a
12    warrant during an inspection. "Private areas" include, but
13    are not limited to, safes, personal property, and closed
14    desks.
15        For the purposes of this paragraph (5), the term "at
16    reasonable times" means (i) during normal business hours;
17    (ii) during the hours of operation of the business; (iii)
18    any time the business is found to be operating; or (iv) any
19    time when a customer is in the business, including before
20    or after the hours of operation of such business.
21        (5.1) Upon receipt of a complaint or upon having
22    knowledge that any person is engaged in business as a
23    manufacturer, importing distributor, distributor, or
24    retailer without a license or valid license, to conduct an
25    investigation. If, after conducting an investigation, the
26    State Commission is satisfied that the alleged conduct

 

 

HB4457- 44 -LRB102 17775 RPS 24057 b

1    occurred or is occurring, it may issue a cease and desist
2    notice as provided in this Act, impose civil penalties as
3    provided in this Act, notify the local liquor authority,
4    or file a complaint with the State's Attorney's Office of
5    the county where the incident occurred or the Attorney
6    General.
7        (5.2) Upon receipt of a complaint or upon having
8    knowledge that any person is shipping alcoholic liquor
9    into this State from a point outside of this State if the
10    shipment is in violation of this Act, to conduct an
11    investigation. If, after conducting an investigation, the
12    State Commission is satisfied that the alleged conduct
13    occurred or is occurring, it may issue a cease and desist
14    notice as provided in this Act, impose civil penalties as
15    provided in this Act, notify the foreign jurisdiction, or
16    file a complaint with the State's Attorney's Office of the
17    county where the incident occurred or the Attorney
18    General.
19        (5.3) To receive complaints from licensees, local
20    officials, law enforcement agencies, organizations, and
21    persons stating that any licensee has been or is violating
22    any provision of this Act or the rules and regulations
23    issued pursuant to this Act. Such complaints shall be in
24    writing, signed and sworn to by the person making the
25    complaint, and shall state with specificity the facts in
26    relation to the alleged violation. If the State Commission

 

 

HB4457- 45 -LRB102 17775 RPS 24057 b

1    has reasonable grounds to believe that the complaint
2    substantially alleges a violation of this Act or rules and
3    regulations adopted pursuant to this Act, it shall conduct
4    an investigation. If, after conducting an investigation,
5    the State Commission is satisfied that the alleged
6    violation did occur, it shall proceed with disciplinary
7    action against the licensee as provided in this Act.
8        (5.4) To make arrests and issue notices of civil
9    violations where necessary for the enforcement of this
10    Act.
11        (5.5) To investigate any and all unlicensed activity.
12        (5.6) To impose civil penalties or fines to any person
13    who, without holding a valid license, engages in conduct
14    that requires a license pursuant to this Act, in an amount
15    not to exceed $20,000 for each offense as determined by
16    the State Commission. A civil penalty shall be assessed by
17    the State Commission after a hearing is held in accordance
18    with the provisions set forth in this Act regarding the
19    provision of a hearing for the revocation or suspension of
20    a license.
21        (6) To hear and determine appeals from orders of a
22    local commission in accordance with the provisions of this
23    Act, as hereinafter set forth. Hearings under this
24    subsection shall be held in Springfield or Chicago, at
25    whichever location is the more convenient for the majority
26    of persons who are parties to the hearing.

 

 

HB4457- 46 -LRB102 17775 RPS 24057 b

1        (7) The State Commission shall establish uniform
2    systems of accounts to be kept by all retail licensees
3    having more than 4 employees, and for this purpose the
4    State Commission may classify all retail licensees having
5    more than 4 employees and establish a uniform system of
6    accounts for each class and prescribe the manner in which
7    such accounts shall be kept. The State Commission may also
8    prescribe the forms of accounts to be kept by all retail
9    licensees having more than 4 employees, including, but not
10    limited to, accounts of earnings and expenses and any
11    distribution, payment, or other distribution of earnings
12    or assets, and any other forms, records, and memoranda
13    which in the judgment of the commission may be necessary
14    or appropriate to carry out any of the provisions of this
15    Act, including, but not limited to, such forms, records,
16    and memoranda as will readily and accurately disclose at
17    all times the beneficial ownership of such retail licensed
18    business. The accounts, forms, records, and memoranda
19    shall be available at all reasonable times for inspection
20    by authorized representatives of the State Commission or
21    by any local liquor control commissioner or his or her
22    authorized representative. The commission, may, from time
23    to time, alter, amend, or repeal, in whole or in part, any
24    uniform system of accounts, or the form and manner of
25    keeping accounts.
26        (8) In the conduct of any hearing authorized to be

 

 

HB4457- 47 -LRB102 17775 RPS 24057 b

1    held by the State Commission, to appoint, at the
2    commission's discretion, hearing officers to conduct
3    hearings involving complex issues or issues that will
4    require a protracted period of time to resolve, to
5    examine, or cause to be examined, under oath, any
6    licensee, and to examine or cause to be examined the books
7    and records of such licensee; to hear testimony and take
8    proof material for its information in the discharge of its
9    duties hereunder; to administer or cause to be
10    administered oaths; for any such purpose to issue subpoena
11    or subpoenas to require the attendance of witnesses and
12    the production of books, which shall be effective in any
13    part of this State, and to adopt rules to implement its
14    powers under this paragraph (8).
15        Any circuit court may, by order duly entered, require
16    the attendance of witnesses and the production of relevant
17    books subpoenaed by the State Commission and the court may
18    compel obedience to its order by proceedings for contempt.
19        (9) To investigate the administration of laws in
20    relation to alcoholic liquors in this and other states and
21    any foreign countries, and to recommend from time to time
22    to the Governor and through him or her to the legislature
23    of this State, such amendments to this Act, if any, as it
24    may think desirable and as will serve to further the
25    general broad purposes contained in Section 1-2 hereof.
26        (10) To adopt such rules and regulations consistent

 

 

HB4457- 48 -LRB102 17775 RPS 24057 b

1    with the provisions of this Act which shall be necessary
2    for the control, sale, or disposition of alcoholic liquor
3    damaged as a result of an accident, wreck, flood, fire, or
4    other similar occurrence.
5        (11) To develop industry educational programs related
6    to responsible serving and selling, particularly in the
7    areas of overserving consumers and illegal underage
8    purchasing and consumption of alcoholic beverages.
9        (11.1) To license persons providing education and
10    training to alcohol beverage sellers and servers for
11    mandatory and non-mandatory training under the Beverage
12    Alcohol Sellers and Servers Education and Training
13    (BASSET) programs and to develop and administer a public
14    awareness program in Illinois to reduce or eliminate the
15    illegal purchase and consumption of alcoholic beverage
16    products by persons under the age of 21. Application for a
17    license shall be made on forms provided by the State
18    Commission.
19        (12) To develop and maintain a repository of license
20    and regulatory information.
21        (13) (Blank).
22        (14) On or before April 30, 2008 and every 2 years
23    thereafter, the State Commission shall present a written
24    report to the Governor and the General Assembly that shall
25    be based on a study of the impact of Public Act 95-634 on
26    the business of soliciting, selling, and shipping wine

 

 

HB4457- 49 -LRB102 17775 RPS 24057 b

1    from inside and outside of this State directly to
2    residents of this State. As part of its report, the State
3    Commission shall provide all of the following information:
4            (A) The amount of State excise and sales tax
5        revenues generated.
6            (B) The amount of licensing fees received.
7            (C) The number of cases of wine shipped from
8        inside and outside of this State directly to residents
9        of this State.
10            (D) The number of alcohol compliance operations
11        conducted.
12            (E) The number of winery shipper's licenses
13        issued.
14            (F) The number of each of the following: reported
15        violations; cease and desist notices issued by the
16        Commission; notices of violations issued by the
17        Commission and to the Department of Revenue; and
18        notices and complaints of violations to law
19        enforcement officials, including, without limitation,
20        the Illinois Attorney General and the U.S. Department
21        of Treasury's Alcohol and Tobacco Tax and Trade
22        Bureau.
23        (15) As a means to reduce the underage consumption of
24    alcoholic liquors, the State Commission shall conduct
25    alcohol compliance operations to investigate whether
26    businesses that are soliciting, selling, and shipping wine

 

 

HB4457- 50 -LRB102 17775 RPS 24057 b

1    from inside or outside of this State directly to residents
2    of this State are licensed by this State or are selling or
3    attempting to sell wine to persons under 21 years of age in
4    violation of this Act.
5        (16) The State Commission shall, in addition to
6    notifying any appropriate law enforcement agency, submit
7    notices of complaints or violations of Sections 6-29 and
8    6-29.1 by persons who do not hold a winery shipper's
9    license under this Act to the Illinois Attorney General
10    and to the U.S. Department of Treasury's Alcohol and
11    Tobacco Tax and Trade Bureau.
12        (17)(A) A person licensed to make wine under the laws
13    of another state who has a winery shipper's license under
14    this Act and annually produces less than 25,000 gallons of
15    wine or a person who has a first-class or second-class
16    wine manufacturer's license, a first-class or second-class
17    wine-maker's license, or a limited wine manufacturer's
18    license under this Act and annually produces less than
19    25,000 gallons of wine may make application to the
20    Commission for a self-distribution exemption to allow the
21    sale of not more than 5,000 gallons of the exemption
22    holder's wine to retail licensees per year.
23        (B) In the application, which shall be sworn under
24    penalty of perjury, such person shall state (1) the date
25    it was established; (2) its volume of production and sales
26    for each year since its establishment; (3) its efforts to

 

 

HB4457- 51 -LRB102 17775 RPS 24057 b

1    establish distributor relationships; (4) that a
2    self-distribution exemption is necessary to facilitate the
3    marketing of its wine; and (5) that it will comply with the
4    liquor and revenue laws of the United States, this State,
5    and any other state where it is licensed.
6        (C) The State Commission shall approve the application
7    for a self-distribution exemption if such person: (1) is
8    in compliance with State revenue and liquor laws; (2) is
9    not a member of any affiliated group that produces more
10    than 25,000 gallons of wine per annum or produces any
11    other alcoholic liquor; (3) will not annually produce for
12    sale more than 25,000 gallons of wine; and (4) will not
13    annually sell more than 5,000 gallons of its wine to
14    retail licensees.
15        (D) A self-distribution exemption holder shall
16    annually certify to the State Commission its production of
17    wine in the previous 12 months and its anticipated
18    production and sales for the next 12 months. The State
19    Commission may fine, suspend, or revoke a
20    self-distribution exemption after a hearing if it finds
21    that the exemption holder has made a material
22    misrepresentation in its application, violated a revenue
23    or liquor law of Illinois, exceeded production of 25,000
24    gallons of wine in any calendar year, or become part of an
25    affiliated group producing more than 25,000 gallons of
26    wine or any other alcoholic liquor.

 

 

HB4457- 52 -LRB102 17775 RPS 24057 b

1        (E) Except in hearings for violations of this Act or
2    Public Act 95-634 or a bona fide investigation by duly
3    sworn law enforcement officials, the State Commission, or
4    its agents, the State Commission shall maintain the
5    production and sales information of a self-distribution
6    exemption holder as confidential and shall not release
7    such information to any person.
8        (F) The State Commission shall issue regulations
9    governing self-distribution exemptions consistent with
10    this Section and this Act.
11        (G) Nothing in this paragraph (17) shall prohibit a
12    self-distribution exemption holder from entering into or
13    simultaneously having a distribution agreement with a
14    licensed Illinois distributor.
15        (H) It is the intent of this paragraph (17) to promote
16    and continue orderly markets. The General Assembly finds
17    that, in order to preserve Illinois' regulatory
18    distribution system, it is necessary to create an
19    exception for smaller makers of wine as their wines are
20    frequently adjusted in varietals, mixes, vintages, and
21    taste to find and create market niches sometimes too small
22    for distributor or importing distributor business
23    strategies. Limited self-distribution rights will afford
24    and allow smaller makers of wine access to the marketplace
25    in order to develop a customer base without impairing the
26    integrity of the 3-tier system.

 

 

HB4457- 53 -LRB102 17775 RPS 24057 b

1        (18)(A) A class 1 brewer licensee, who must also be
2    either a licensed brewer or licensed non-resident dealer
3    and annually manufacture less than 930,000 gallons of
4    beer, may make application to the State Commission for a
5    self-distribution exemption to allow the sale of not more
6    than 232,500 gallons of the exemption holder's beer per
7    year to retail licensees and to brewers, class 1 brewers,
8    and class 2 brewers that, pursuant to subsection (e) of
9    Section 6-4 of this Act, sell beer, cider, or both beer and
10    cider to non-licensees at their breweries.
11        (B) In the application, which shall be sworn under
12    penalty of perjury, the class 1 brewer licensee shall
13    state (1) the date it was established; (2) its volume of
14    beer manufactured and sold for each year since its
15    establishment; (3) its efforts to establish distributor
16    relationships; (4) that a self-distribution exemption is
17    necessary to facilitate the marketing of its beer; and (5)
18    that it will comply with the alcoholic beverage and
19    revenue laws of the United States, this State, and any
20    other state where it is licensed.
21        (C) Any application submitted shall be posted on the
22    State Commission's website at least 45 days prior to
23    action by the State Commission. The State Commission shall
24    approve the application for a self-distribution exemption
25    if the class 1 brewer licensee: (1) is in compliance with
26    the State, revenue, and alcoholic beverage laws; (2) is

 

 

HB4457- 54 -LRB102 17775 RPS 24057 b

1    not a member of any affiliated group that manufactures
2    more than 930,000 gallons of beer per annum or produces
3    any other alcoholic beverages; (3) shall not annually
4    manufacture for sale more than 930,000 gallons of beer;
5    (4) shall not annually sell more than 232,500 gallons of
6    its beer to retail licensees or to brewers, class 1
7    brewers, and class 2 brewers that, pursuant to subsection
8    (e) of Section 6-4 of this Act, sell beer, cider, or both
9    beer and cider to non-licensees at their breweries; and
10    (5) has relinquished any brew pub license held by the
11    licensee, including any ownership interest it held in the
12    licensed brew pub.
13        (D) A self-distribution exemption holder shall
14    annually certify to the State Commission its manufacture
15    of beer during the previous 12 months and its anticipated
16    manufacture and sales of beer for the next 12 months. The
17    State Commission may fine, suspend, or revoke a
18    self-distribution exemption after a hearing if it finds
19    that the exemption holder has made a material
20    misrepresentation in its application, violated a revenue
21    or alcoholic beverage law of Illinois, exceeded the
22    manufacture of 930,000 gallons of beer in any calendar
23    year or became part of an affiliated group manufacturing
24    more than 930,000 gallons of beer or any other alcoholic
25    beverage.
26        (E) The State Commission shall issue rules and

 

 

HB4457- 55 -LRB102 17775 RPS 24057 b

1    regulations governing self-distribution exemptions
2    consistent with this Act.
3        (F) Nothing in this paragraph (18) shall prohibit a
4    self-distribution exemption holder from entering into or
5    simultaneously having a distribution agreement with a
6    licensed Illinois importing distributor or a distributor.
7    If a self-distribution exemption holder enters into a
8    distribution agreement and has assigned distribution
9    rights to an importing distributor or distributor, then
10    the self-distribution exemption holder's distribution
11    rights in the assigned territories shall cease in a
12    reasonable time not to exceed 60 days.
13        (G) It is the intent of this paragraph (18) to promote
14    and continue orderly markets. The General Assembly finds
15    that in order to preserve Illinois' regulatory
16    distribution system, it is necessary to create an
17    exception for smaller manufacturers in order to afford and
18    allow such smaller manufacturers of beer access to the
19    marketplace in order to develop a customer base without
20    impairing the integrity of the 3-tier system.
21        (19)(A) A class 1 craft distiller licensee or a
22    non-resident dealer who manufactures less than 50,000
23    gallons of distilled spirits per year may make application
24    to the State Commission for a self-distribution exemption
25    to allow the sale of not more than 5,000 gallons of the
26    exemption holder's spirits to retail licensees per year.

 

 

HB4457- 56 -LRB102 17775 RPS 24057 b

1        (B) In the application, which shall be sworn under
2    penalty of perjury, the class 1 craft distiller licensee
3    or non-resident dealer shall state (1) the date it was
4    established; (2) its volume of spirits manufactured and
5    sold for each year since its establishment; (3) its
6    efforts to establish distributor relationships; (4) that a
7    self-distribution exemption is necessary to facilitate the
8    marketing of its spirits; and (5) that it will comply with
9    the alcoholic beverage and revenue laws of the United
10    States, this State, and any other state where it is
11    licensed.
12        (C) Any application submitted shall be posted on the
13    State Commission's website at least 45 days prior to
14    action by the State Commission. The State Commission shall
15    approve the application for a self-distribution exemption
16    if the applicant: (1) is in compliance with State revenue
17    and alcoholic beverage laws; (2) is not a member of any
18    affiliated group that produces more than 50,000 gallons of
19    spirits per annum or produces any other alcoholic liquor;
20    (3) does not annually manufacture for sale more than
21    50,000 gallons of spirits; and (4) does not annually sell
22    more than 5,000 gallons of its spirits to retail
23    licensees.
24        (D) A self-distribution exemption holder shall
25    annually certify to the State Commission its manufacture
26    of spirits during the previous 12 months and its

 

 

HB4457- 57 -LRB102 17775 RPS 24057 b

1    anticipated manufacture and sales of spirits for the next
2    12 months. The State Commission may fine, suspend, or
3    revoke a self-distribution exemption after a hearing if it
4    finds that the exemption holder has made a material
5    misrepresentation in its application, violated a revenue
6    or alcoholic beverage law of Illinois, exceeded the
7    manufacture of 50,000 gallons of spirits in any calendar
8    year, or has become part of an affiliated group
9    manufacturing more than 50,000 gallons of spirits or any
10    other alcoholic beverage.
11        (E) The State Commission shall adopt rules governing
12    self-distribution exemptions consistent with this Act.
13        (F) Nothing in this paragraph (19) shall prohibit a
14    self-distribution exemption holder from entering into or
15    simultaneously having a distribution agreement with a
16    licensed Illinois importing distributor or a distributor.
17        (G) It is the intent of this paragraph (19) to promote
18    and continue orderly markets. The General Assembly finds
19    that in order to preserve Illinois' regulatory
20    distribution system, it is necessary to create an
21    exception for smaller manufacturers in order to afford and
22    allow such smaller manufacturers of spirits access to the
23    marketplace in order to develop a customer base without
24    impairing the integrity of the 3-tier system.
25    (b) On or before April 30, 1999, the Commission shall
26present a written report to the Governor and the General

 

 

HB4457- 58 -LRB102 17775 RPS 24057 b

1Assembly that shall be based on a study of the impact of Public
2Act 90-739 on the business of soliciting, selling, and
3shipping alcoholic liquor from outside of this State directly
4to residents of this State.
5    As part of its report, the Commission shall provide the
6following information:
7        (i) the amount of State excise and sales tax revenues
8    generated as a result of Public Act 90-739;
9        (ii) the amount of licensing fees received as a result
10    of Public Act 90-739;
11        (iii) the number of reported violations, the number of
12    cease and desist notices issued by the Commission, the
13    number of notices of violations issued to the Department
14    of Revenue, and the number of notices and complaints of
15    violations to law enforcement officials.
16(Source: P.A. 100-134, eff. 8-18-17; 100-201, eff. 8-18-17;
17100-816, eff. 8-13-18; 100-1012, eff. 8-21-18; 100-1050, eff.
188-23-18; 101-37, eff. 7-3-19; 101-81, eff. 7-12-19; 101-482,
19eff. 8-23-19; revised 9-20-19.)
 
20    (235 ILCS 5/4-4)  (from Ch. 43, par. 112)
21    Sec. 4-4. Additional powers of local liquor control
22commissioners. Each local liquor control commissioner shall
23also have the following powers, functions, and duties with
24respect to licenses, other than licenses to manufacturers,
25importing distributors, distributors, foreign importers,

 

 

HB4457- 59 -LRB102 17775 RPS 24057 b

1non-resident dealers, non-beverage users, brokers, railroads,
2airplanes, and boats:
3        1. To grant or suspend for not more than 30 days or
4    revoke for cause all local licenses issued to persons for
5    premises within his jurisdiction;
6        2. To enter or to authorize any law enforcing officer
7    to enter at reasonable times any time upon any premises
8    licensed hereunder to determine whether any of the
9    provisions of this Act or any rules or regulations adopted
10    by him or by the State Commission have been or are being
11    violated, and at such time to examine said premises of
12    said licensee in connection therewith;
13        3. To notify the Secretary of State where a club
14    incorporated under the General Not for Profit Corporation
15    Act of 1986 or a foreign corporation functioning as a club
16    in this State under a certificate of authority issued
17    under that Act has violated this Act by selling or
18    offering for sale at retail alcoholic liquors without a
19    retailer's license;
20        4. To receive a complaint from any citizen within his
21    jurisdiction that any of the provisions of this Act, or
22    any rules or regulations adopted pursuant hereto, have
23    been or are being violated and to act upon the complaint in
24    the manner hereinafter provided;
25        5. To receive local license fees and pay the same
26    forthwith to the city, village, town, or county treasurer,

 

 

HB4457- 60 -LRB102 17775 RPS 24057 b

1    as the case may be.
2    Each local liquor commissioner also has the duty to notify
3the Secretary of State of any convictions or dispositions of
4court supervision for a violation of Section 6-20 of this Act
5or a similar provision of a local ordinance.
6    In counties and municipalities, the local liquor control
7commissioners shall also have the power to levy fines in
8accordance with Section 7-5 of this Act.
9    For the purposes of this Section, the term "at reasonable
10times" means (i) during normal business hours; (ii) during the
11hours of operation of the business; (iii) any time the
12business is found to be operating; or (iv) any time when a
13customer is in the business, including before or after the
14hours of operation of such business.
15(Source: P.A. 100-863, eff. 8-14-18.)
 
16    (235 ILCS 5/8-2)  (from Ch. 43, par. 159)
17    Sec. 8-2. Payments; reports. It is the duty of each
18manufacturer with respect to alcoholic liquor produced or
19imported by such manufacturer, or purchased tax-free by such
20manufacturer from another manufacturer or importing
21distributor, and of each importing distributor as to alcoholic
22liquor purchased by such importing distributor from foreign
23importers or from anyone from any point in the United States
24outside of this State or purchased tax-free from another
25manufacturer or importing distributor, to pay the tax imposed

 

 

HB4457- 61 -LRB102 17775 RPS 24057 b

1by Section 8-1 to the Department of Revenue on or before the
215th day of the calendar month following the calendar month in
3which such alcoholic liquor is sold or used by such
4manufacturer or by such importing distributor other than in an
5authorized tax-free manner or to pay that tax electronically
6as provided in this Section.
7    Each manufacturer and each importing distributor shall
8make payment under one of the following methods: (1) on or
9before the 15th day of each calendar month, file in person or
10by United States first-class mail, postage pre-paid, with the
11Department of Revenue, on forms prescribed and furnished by
12the Department, a report in writing in such form as may be
13required by the Department in order to compute, and assure the
14accuracy of, the tax due on all taxable sales and uses of
15alcoholic liquor occurring during the preceding month. Payment
16of the tax in the amount disclosed by the report shall
17accompany the report or, (2) on or before the 15th day of each
18calendar month, electronically file with the Department of
19Revenue, on forms prescribed and furnished by the Department,
20an electronic report in such form as may be required by the
21Department in order to compute, and assure the accuracy of,
22the tax due on all taxable sales and uses of alcoholic liquor
23occurring during the preceding month. An electronic payment of
24the tax in the amount disclosed by the report shall accompany
25the report. A manufacturer or distributor who files an
26electronic report and electronically pays the tax imposed

 

 

HB4457- 62 -LRB102 17775 RPS 24057 b

1pursuant to Section 8-1 to the Department of Revenue on or
2before the 15th day of the calendar month following the
3calendar month in which such alcoholic liquor is sold or used
4by that manufacturer or importing distributor other than in an
5authorized tax-free manner shall pay to the Department the
6amount of the tax imposed pursuant to Section 8-1, less a
7discount which is allowed to reimburse the manufacturer or
8importing distributor for the expenses incurred in keeping and
9maintaining records, preparing and filing the electronic
10returns, remitting the tax, and supplying data to the
11Department upon request.
12    The discount shall be in an amount as follows:
13        (1) For original returns due on or after January 1,
14    2003 through September 30, 2003, the discount shall be
15    1.75% or $1,250 per return, whichever is less;
16        (2) For original returns due on or after October 1,
17    2003 through September 30, 2004, the discount shall be 2%
18    or $3,000 per return, whichever is less; and
19        (3) For original returns due on or after October 1,
20    2004, the discount shall be 2% or $2,000 per return,
21    whichever is less.
22    The Department may, if it deems it necessary in order to
23insure the payment of the tax imposed by this Article, require
24returns to be made more frequently than and covering periods
25of less than a month. Such return shall contain such further
26information as the Department may reasonably require.

 

 

HB4457- 63 -LRB102 17775 RPS 24057 b

1    It shall be presumed that all alcoholic liquors acquired
2or made by any importing distributor or manufacturer have been
3sold or used by him in this State and are the basis for the tax
4imposed by this Article unless proven, to the satisfaction of
5the Department, that such alcoholic liquors are (1) still in
6the possession of such importing distributor or manufacturer,
7or (2) prior to the termination of possession have been lost by
8theft or through unintentional destruction, or (3) that such
9alcoholic liquors are otherwise exempt from taxation under
10this Act.
11    If any payment provided for in this Section exceeds the
12manufacturer's or importing distributor's liabilities under
13this Act, as shown on an original report, the manufacturer or
14importing distributor may credit such excess payment against
15liability subsequently to be remitted to the Department under
16this Act, in accordance with reasonable rules adopted by the
17Department. If the Department subsequently determines that all
18or any part of the credit taken was not actually due to the
19manufacturer or importing distributor, the manufacturer's or
20importing distributor's discount shall be reduced by an amount
21equal to the difference between the discount as applied to the
22credit taken and that actually due, and the manufacturer or
23importing distributor shall be liable for penalties and
24interest on such difference.
25    The Department may require any foreign importer to file
26monthly information returns, by the 15th day of the month

 

 

HB4457- 64 -LRB102 17775 RPS 24057 b

1following the month which any such return covers, if the
2Department determines this to be necessary to the proper
3performance of the Department's functions and duties under
4this Act. Such return shall contain such information as the
5Department may reasonably require.
6    Every manufacturer and importing distributor, except for a
7new applicant for a manufacturer license or importing
8distributor license or a manufacturer or importing distributor
9that in the preceding year had less than $50,000 of tax
10liability under this Article, shall also file, with the
11Department, a bond in an amount not less than $1,000 and not to
12exceed $100,000 on a form to be approved by, and with a surety
13or sureties satisfactory to, the Department. Such bond shall
14be conditioned upon the manufacturer or importing distributor
15paying to the Department all monies becoming due from such
16manufacturer or importing distributor under this Article. The
17Department shall fix the penalty of such bond in each case,
18taking into consideration the amount of alcoholic liquor
19expected to be sold and used by such manufacturer or importing
20distributor, and the penalty fixed by the Department shall be
21sufficient, in the Department's opinion, to protect the State
22of Illinois against failure to pay any amount due under this
23Article, but the amount of the penalty fixed by the Department
24shall not exceed twice the amount of tax liability of a monthly
25return, nor shall the amount of such penalty be less than
26$1,000. The Department shall notify the State Commission of

 

 

HB4457- 65 -LRB102 17775 RPS 24057 b

1the Department's approval or disapproval of any such
2manufacturer's or importing distributor's bond, or of the
3termination or cancellation of any such bond, or of the
4Department's direction to a manufacturer or importing
5distributor that he must file additional bond in order to
6comply with this Section. The Commission shall not issue a
7license to any applicant for a manufacturer's or importing
8distributor's license unless the Commission has received a
9notification from the Department showing that such applicant
10has filed a satisfactory bond with the Department hereunder
11and that such bond has been approved by the Department.
12Failure by any licensed manufacturer or importing distributor
13to keep a satisfactory bond in effect with the Department or to
14furnish additional bond to the Department, when required
15hereunder by the Department to do so, shall be grounds for the
16revocation or suspension of such manufacturer's or importing
17distributor's license by the Commission. If a manufacturer or
18importing distributor fails to pay any amount due under this
19Article, his bond with the Department shall be deemed
20forfeited, and the Department may institute a suit in its own
21name on such bond.
22    After notice and opportunity for a hearing the State
23Commission may revoke or suspend the license of any
24manufacturer or importing distributor who fails to comply with
25the provisions of this Section. Notice of such hearing and the
26time and place thereof shall be in writing and shall contain a

 

 

HB4457- 66 -LRB102 17775 RPS 24057 b

1statement of the charges against the licensee. Such notice may
2be given by United States registered or certified mail with
3return receipt requested, addressed to the person concerned at
4his last known address and shall be given not less than 7 days
5prior to the date fixed for the hearing. An order revoking or
6suspending a license under the provisions of this Section may
7be reviewed in the manner provided in Section 7-10 of this Act.
8No new license shall be granted to a person whose license has
9been revoked for a violation of this Section or, in case of
10suspension, shall such suspension be terminated until he has
11paid to the Department all taxes and penalties which he owes
12the State under the provisions of this Act.
13    Every manufacturer or importing distributor who has, as
14verified by the Department, continuously complied with the
15conditions of the bond under this Act for a period of 2 years
16shall be considered to be a prior continuous compliance
17taxpayer. In determining the consecutive period of time for
18qualification as a prior continuous compliance taxpayer, any
19consecutive period of time of qualifying compliance
20immediately prior to the effective date of this amendatory Act
21of 1987 shall be credited to any manufacturer or importing
22distributor.
23    A manufacturer or importing distributor that is a prior
24continuous compliance taxpayer under this Section and becomes
25a successor as the result of an acquisition, merger, or
26consolidation of a manufacturer or importing distributor shall

 

 

HB4457- 67 -LRB102 17775 RPS 24057 b

1be deemed to be a prior continuous compliance taxpayer with
2respect to the acquired, merged, or consolidated entity.
3    Every prior continuous compliance taxpayer shall be exempt
4from the bond requirements of this Act until the Department
5has determined the taxpayer to be delinquent in the filing of
6any return or deficient in the payment of any tax under this
7Act. Any taxpayer who fails to pay an admitted or established
8liability under this Act may also be required to post bond or
9other acceptable security with the Department guaranteeing the
10payment of such admitted or established liability.
11    The Department shall discharge any surety and shall
12release and return any bond or security deposit assigned,
13pledged or otherwise provided to it by a taxpayer under this
14Section within 30 days after: (1) such taxpayer becomes a
15prior continuous compliance taxpayer; or (2) such taxpayer has
16ceased to collect receipts on which he is required to remit tax
17to the Department, has filed a final tax return, and has paid
18to the Department an amount sufficient to discharge his
19remaining tax liability as determined by the Department under
20this Act.
21(Source: P.A. 100-1171, eff. 1-4-19; 101-37, eff. 7-3-19.)
 
22    (235 ILCS 5/10-6)  (from Ch. 43, par. 188)
23    Sec. 10-6. Forfeiture. Any person who shall knowingly
24possess, sell, ship, transport or in any wise dispose of any
25alcoholic liquor under any other than the proper name or brand

 

 

HB4457- 68 -LRB102 17775 RPS 24057 b

1known to the trade as designating the kind and quality of the
2contents of the package or other containers of said alcoholic
3liquor, or who shall cause any such Act to be done, or who
4shall knowingly possess, sell, ship, transport, or in any way
5dispose of any alcoholic liquor in violation of the provisions
6of this Act , shall have no property right of any kind in said
7alcoholic liquor and shall forfeit to the State said alcoholic
8liquor and said packages and containers and shall be subject
9to the punishment and penalties provided for violation of this
10Act.
11(Source: P.A. 82-783.)
 
12    (235 ILCS 5/10-8)  (from Ch. 43, par. 190)
13    Sec. 10-8. Complaints. Whenever complaint is made in
14writing, verified by affidavit, to any judge of the circuit
15court, that complainant has just and reasonable grounds to
16believe and does believe that alcoholic liquor is
17manufactured, possessed, kept for sale, used or transported,
18in violation of this Act, or any mash, still or other property
19designed for the manufacture of alcoholic liquor is possessed
20in any premises which are not licensed hereunder,
21(particularly describing and designating such property in the
22complaint), the judge may issue a search warrant as
23hereinafter provided; provided, however, no search warrant
24shall be necessary for the inspection or search at reasonable
25times of any premises licensed under this Act, and provided,

 

 

HB4457- 69 -LRB102 17775 RPS 24057 b

1further, that no search warrant shall be issued for the search
2of premises in use for residence purposes. The property seized
3on any such warrant shall not be taken from the officer seizing
4the same on any order of replevin or other like process. For
5the purposes of this Section, the term "at reasonable times"
6means (i) during normal business hours; (ii) during the hours
7of operation of the business; (iii) any time the business is
8found to be operating; or (iv) any time when a customer is in
9the business, including before or after the hours of operation
10of such business.
11    Each complaint shall be substantially in the following
12form:
13State of Illinois,)
14                  ) ss.
15County of Cook.   )
16
Complaint for Search Warrant.
17    The complaint and affidavit of .... (name of complainant),
18of .... (his residence), made before .... (name of officer)
19one of the .... (official title of officer), in and for the
20.... (county, city or village, as the case may be), on (insert
21date), being first duly sworn, upon his oath says: That he has
22just and reasonable grounds to believe, and does believe that
23alcoholic liquor is now unlawfully (manufactured, possessed,
24used, disposed of or kept for sale, or any mash, still or other
25property designed for the illegal manufacture of alcoholic
26liquor is possessed therein, as the case may be), to-wit: At

 

 

HB4457- 70 -LRB102 17775 RPS 24057 b

1and within a certain .... (here describe the house, building,
2premises, boat, vehicle, receptacle or other place to be
3searched, with particulars as to the location sufficiently to
4identify it, stating the name of the person occupying the
5same, if known), in the .... (city, village or town of) ....,
6in the county and state set out above; that the following are
7the reasons for his or her belief, to-wit .... (here insert the
8facts upon which such belief is based). Wherefore complainant
9prays that a search warrant may issue according to law.
10
...........................
11
(Signature of complainant.)
12    Subscribed and Sworn to before me on (insert date).
13
............................
14
(Name of officer.)
15
............................
16
(Official title of officer.)
17(Source: P.A. 91-357, eff. 7-29-99.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.

 

 

HB4457- 71 -LRB102 17775 RPS 24057 b

1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/1-160
4    40 ILCS 5/14-110from Ch. 108 1/2, par. 14-110
5    40 ILCS 5/14-152.1
6    235 ILCS 5/3-4.1 new
7    235 ILCS 5/3-12
8    235 ILCS 5/4-4from Ch. 43, par. 112
9    235 ILCS 5/8-2from Ch. 43, par. 159
10    235 ILCS 5/10-6from Ch. 43, par. 188
11    235 ILCS 5/10-8from Ch. 43, par. 190