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1 | AN ACT concerning liquor.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Liquor Control Act of 1934 is amended by | |||||||||||||||||||||||
5 | changing Section 6-2 and by adding Sections 1-3.39 and 6-4.5 as | |||||||||||||||||||||||
6 | follows: | |||||||||||||||||||||||
7 | (235 ILCS 5/1-3.39 new) | |||||||||||||||||||||||
8 | Sec. 1-3.39. "Person" defined. For the purposes of this | |||||||||||||||||||||||
9 | Act, "person" means a natural person, partnership, | |||||||||||||||||||||||
10 | corporation, subsidiary, limited liability company, trust, | |||||||||||||||||||||||
11 | agent, affiliate, or other form of business enterprise. | |||||||||||||||||||||||
12 | "Person" also includes heirs, assigns, personal | |||||||||||||||||||||||
13 | representatives, and guardians.
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14 | (235 ILCS 5/6-2) (from Ch. 43, par. 120)
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15 | Sec. 6-2. Issuance of licenses to certain persons | |||||||||||||||||||||||
16 | prohibited.
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17 | (a) Except as otherwise provided in subsection (b) of this | |||||||||||||||||||||||
18 | Section and in paragraph (1) of subsection (a) of Section 3-12, | |||||||||||||||||||||||
19 | no license
of any kind issued by the State Commission or any | |||||||||||||||||||||||
20 | local
commission shall be issued to:
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21 | (1) A person who is not a resident of any city, village | |||||||||||||||||||||||
22 | or county in
which the premises covered by the license are |
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1 | located; except in case of
railroad or boat licenses.
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2 | (2) A person who is not of good character and | ||||||
3 | reputation in the
community in which he resides.
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4 | (3) A person who is not a citizen of the United States.
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5 | (4) A person who has been convicted of a felony under | ||||||
6 | any Federal or
State law, unless the Commission determines | ||||||
7 | that such
person has been sufficiently rehabilitated to | ||||||
8 | warrant the public trust
after considering matters set | ||||||
9 | forth in such person's application and the
Commission's | ||||||
10 | investigation. The burden of proof of sufficient
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11 | rehabilitation shall be on the applicant.
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12 | (5) A person who has been convicted of keeping a place | ||||||
13 | of prostitution or keeping a place of juvenile | ||||||
14 | prostitution, promoting prostitution that involves keeping | ||||||
15 | a place of prostitution, or promoting juvenile | ||||||
16 | prostitution that involves keeping a place of juvenile | ||||||
17 | prostitution.
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18 | (6) A person who has been convicted of pandering or | ||||||
19 | other crime or
misdemeanor opposed to decency and morality.
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20 | (7) A person whose license issued under this Act has | ||||||
21 | been revoked for
cause.
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22 | (8) A person who at the time of application for renewal | ||||||
23 | of any license
issued hereunder would not be eligible for | ||||||
24 | such license upon a first
application.
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25 | (9) A copartnership, if any general partnership | ||||||
26 | thereof, or any
limited partnership thereof, owning more |
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1 | than 5% of the aggregate limited
partner interest in such | ||||||
2 | copartnership would not be eligible to receive a
license | ||||||
3 | hereunder for any reason other than residence within the | ||||||
4 | political
subdivision, unless residency is required by | ||||||
5 | local ordinance.
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6 | (10) A corporation or limited liability company, if any | ||||||
7 | member, officer, manager or director thereof, or
any | ||||||
8 | stockholder or stockholders owning in the aggregate more | ||||||
9 | than 5% of the
stock of such corporation, would not be | ||||||
10 | eligible to receive a license
hereunder for any reason | ||||||
11 | other than citizenship and residence within the
political | ||||||
12 | subdivision.
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13 | (10a) A corporation or limited liability company | ||||||
14 | unless it is incorporated or organized in Illinois, or | ||||||
15 | unless it
is a foreign corporation or foreign limited | ||||||
16 | liability company which is qualified under the Business
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17 | Corporation Act of 1983 or the Limited Liability Company | ||||||
18 | Act to transact business in Illinois. The Commission shall | ||||||
19 | permit and accept from an applicant for a license under | ||||||
20 | this Act proof prepared from the Secretary of State's | ||||||
21 | website that the corporation or limited liability company | ||||||
22 | is in good standing and is qualified under the Business
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23 | Corporation Act of 1983 or the Limited Liability Company | ||||||
24 | Act to transact business in Illinois.
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25 | (11) A person whose place of business is conducted by a | ||||||
26 | manager or agent
unless the manager or agent possesses the |
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1 | same qualifications required by
the licensee.
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2 | (12) A person who has been convicted of a violation of | ||||||
3 | any Federal or
State law concerning the manufacture, | ||||||
4 | possession or sale of alcoholic
liquor, subsequent to the | ||||||
5 | passage of this Act or has forfeited his bond to
appear in | ||||||
6 | court to answer charges for any such violation.
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7 | (13) A person who does not beneficially own the | ||||||
8 | premises for which a
license is sought, or does not have a | ||||||
9 | lease thereon for the full period for
which the license is | ||||||
10 | to be issued.
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11 | (14) Any law enforcing public official, including | ||||||
12 | members
of local liquor control commissions,
any mayor, | ||||||
13 | alderman, or member of the
city council or commission, any | ||||||
14 | president of the village board of trustees,
any member of a | ||||||
15 | village board of trustees, or any president or member of a
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16 | county board; and no such official shall have a direct | ||||||
17 | interest in the
manufacture, sale, or distribution of | ||||||
18 | alcoholic liquor, except that a
license
may be granted to | ||||||
19 | such official in relation to premises that are
not
located | ||||||
20 | within the territory subject to the jurisdiction of that | ||||||
21 | official
if the issuance of such license is approved by the | ||||||
22 | State Liquor Control
Commission
and except that a license | ||||||
23 | may be granted, in a city or village with a
population of | ||||||
24 | 50,000 or less, to any alderman, member of a city council, | ||||||
25 | or
member of a village board of trustees in relation to | ||||||
26 | premises that are located
within the territory
subject to |
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1 | the jurisdiction of that official if (i) the sale of | ||||||
2 | alcoholic
liquor pursuant to the license is incidental to | ||||||
3 | the selling of food, (ii) the
issuance of the license is | ||||||
4 | approved by the State Commission, (iii) the
issuance of the | ||||||
5 | license is in accordance with all applicable local | ||||||
6 | ordinances
in effect where the premises are located, and | ||||||
7 | (iv) the official granted a
license does not vote on | ||||||
8 | alcoholic liquor issues pending before the board or
council | ||||||
9 | to which the license holder is elected. Notwithstanding any | ||||||
10 | provision of this paragraph (14) to the contrary, an | ||||||
11 | alderman or member of a city council or commission, a | ||||||
12 | member of a village board of trustees other than the | ||||||
13 | president of the village board of trustees, or a member of | ||||||
14 | a county board other than the president of a county board | ||||||
15 | may have a direct interest in the manufacture, sale, or | ||||||
16 | distribution of alcoholic liquor as long as he or she is | ||||||
17 | not a law enforcing public official, a mayor, a village | ||||||
18 | board president, or president of a county board. To prevent | ||||||
19 | any conflict of interest, the elected official with the | ||||||
20 | direct interest in the manufacture, sale, or distribution | ||||||
21 | of alcoholic liquor shall not participate in any meetings, | ||||||
22 | hearings, or decisions on matters impacting the | ||||||
23 | manufacture, sale, or distribution of alcoholic liquor. | ||||||
24 | Furthermore, the mayor of a city with a population of | ||||||
25 | 50,000 or less or the president of a village with a | ||||||
26 | population of 50,000 or less may have an interest in the |
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1 | manufacture, sale, or distribution of alcoholic liquor as | ||||||
2 | long as the council or board over which he or she presides | ||||||
3 | has made a local liquor control commissioner appointment | ||||||
4 | that complies with the requirements of Section 4-2 of this | ||||||
5 | Act.
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6 | (15) A person who is not a beneficial owner of the | ||||||
7 | business to be
operated by the licensee.
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8 | (16) A person who has been convicted of a gambling | ||||||
9 | offense as
proscribed by any of subsections (a) (3) through | ||||||
10 | (a)
(11) of
Section 28-1 of, or as
proscribed by Section | ||||||
11 | 28-1.1 or 28-3 of, the Criminal Code of
1961, or as | ||||||
12 | proscribed by a
statute
replaced by any of the aforesaid | ||||||
13 | statutory provisions.
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14 | (17) A person or entity to whom a federal wagering | ||||||
15 | stamp has been
issued by the
federal government, unless the | ||||||
16 | person or entity is eligible to be issued a
license under | ||||||
17 | the Raffles Act or the Illinois Pull Tabs and Jar Games | ||||||
18 | Act.
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19 | (18) A person who intends to sell alcoholic liquors for | ||||||
20 | use or
consumption on his or her licensed retail premises | ||||||
21 | who does not have liquor
liability insurance coverage for | ||||||
22 | that premises in an amount that is at least
equal to the | ||||||
23 | maximum liability amounts set out in subsection (a) of | ||||||
24 | Section
6-21.
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25 | (19) A person who is licensed by any licensing | ||||||
26 | authority as a manufacturer of beer, or any partnership, |
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1 | corporation, subsidiary, limited liability company, trust, | ||||||
2 | agent or affiliate, or any other form of business | ||||||
3 | enterprise thereof, having any interest, directly or | ||||||
4 | indirectly, in a person licensed in this State as a | ||||||
5 | distributor or importing distributor. | ||||||
6 | (20) A person who is licensed in this State as a | ||||||
7 | distributor or importing distributor having any interest, | ||||||
8 | directly or indirectly, in a person licensed as a | ||||||
9 | manufacturer of beer by any licensing authority, or any | ||||||
10 | partnership, corporation, subsidiary, limited liability | ||||||
11 | company, trust, agent or affiliate, or any other form of | ||||||
12 | business enterprise thereof, except for persons who own no | ||||||
13 | more than 5% of the outstanding shares of a manufacturer of | ||||||
14 | beer whose shares are publicly traded on an exchange within | ||||||
15 | the meaning of the Securities Exchange Act of 1934. | ||||||
16 | (b) A criminal conviction of a corporation is not grounds | ||||||
17 | for the
denial, suspension, or revocation of a license applied | ||||||
18 | for or held by the
corporation if the criminal conviction was | ||||||
19 | not the result of a violation of any
federal or State law | ||||||
20 | concerning the manufacture, possession or sale of
alcoholic | ||||||
21 | liquor, the offense that led to the conviction did not result | ||||||
22 | in any
financial gain to the corporation and the corporation | ||||||
23 | has terminated its
relationship with each director, officer, | ||||||
24 | employee, or controlling shareholder
whose actions directly | ||||||
25 | contributed to the conviction of the corporation. The
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26 | Commission shall determine if all provisions of this subsection |
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1 | (b) have been
met before any action on the corporation's | ||||||
2 | license is initiated.
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3 | (Source: P.A. 96-1551, eff. 7-1-11; 97-1059, eff. 8-24-12.)
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4 | (235 ILCS 5/6-4.5 new) | ||||||
5 | Sec. 6-4.5. Manufacturers with an interest in a distributor | ||||||
6 | or importing distributor. | ||||||
7 | (a) The General Assembly hereby restates its commitment to | ||||||
8 | the primary purpose of the Liquor Control Act of 1934, which is | ||||||
9 | to protect the health, safety, and welfare of the People of | ||||||
10 | Illinois through the sound and careful control and regulation | ||||||
11 | of the manufacture, distribution, and sale of alcoholic liquor | ||||||
12 | through independent licensees in a 3-tier regulatory system. | ||||||
13 | The State's 3-tier regulatory system is designed to prevent a | ||||||
14 | manufacturer or non-resident dealer, if the non-resident | ||||||
15 | dealer is also the manufacturer of alcoholic liquors, including | ||||||
16 | a partnership, corporation, subsidiary, limited liability | ||||||
17 | company, trust, agent, affiliate, or other form of business | ||||||
18 | enterprise thereof, from exercising vertical integration | ||||||
19 | between a manufacturer or non-resident dealer, if the | ||||||
20 | non-resident dealer is also the manufacturer of alcoholic | ||||||
21 | liquors, and a distributor, importing distributor, or retailer | ||||||
22 | through any ownership interest or through control. | ||||||
23 | (b) Notwithstanding any provision of this Act, no person | ||||||
24 | licensed as a manufacturer of beer by any licensing authority, | ||||||
25 | or any partnership, corporation, subsidiary, limited liability |
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1 | company, trust, agent, affiliate, or other form of business | ||||||
2 | enterprise thereof, shall have any interest, directly or | ||||||
3 | indirectly, in a holder of a distributor's license or importing | ||||||
4 | distributor's license. Any such person who holds an interest in | ||||||
5 | a holder of a distributor's license or importing distributor's | ||||||
6 | license prior to this amendatory Act of the 98th General | ||||||
7 | Assembly shall, in accordance with paragraph (19) of subsection | ||||||
8 | (a) of Section 6-2, be ineligible to receive or hold a license | ||||||
9 | issued by the State Commission. | ||||||
10 | (c) The State Commission shall, within 30 days after the | ||||||
11 | effective date of this amendatory Act of the 98th General | ||||||
12 | Assembly, notify all persons licensed by the State Commission | ||||||
13 | as a manufacturer of beer, brewer, or non-resident dealer of | ||||||
14 | the provisions of subsection (b) of this Section. Such | ||||||
15 | manufacturer of beer, brewer, or non-resident dealer shall, | ||||||
16 | within 30 days after receiving the notice, file a written | ||||||
17 | disclosure with the Commission of all such interests in the | ||||||
18 | manner and form prescribed by the Commission. Any manufacturer | ||||||
19 | of beer, brewer, or non-resident dealer, who is also the | ||||||
20 | manufacturer of beer, who has disclosed any interest in a | ||||||
21 | distributor or importing distributor may request in its written | ||||||
22 | disclosure an additional period of time to divest such | ||||||
23 | interest. If such interest is not divested by the agreed time | ||||||
24 | by such manufacturer of beer, brewer, or non-resident dealer, | ||||||
25 | who is also the manufacturer of beer, the State Commission | ||||||
26 | shall, after notice and hearing, revoke the license upon the |
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1 | State Commission's determination of a violation of subsection | ||||||
2 | (b) of this Section. The State Commission shall enter its order | ||||||
3 | within 90 days after the date of issuance of the notice of | ||||||
4 | revocation of the license. The State Commission may, upon good | ||||||
5 | cause, grant an extension to divest such interest for a | ||||||
6 | reasonable period of time not to exceed 24 months from the | ||||||
7 | effective date of this amendatory Act of the 98th General | ||||||
8 | Assembly. | ||||||
9 | In the event a timely request for a hearing is not received | ||||||
10 | and the manufacturer of beer, brewer, or non-resident dealer, | ||||||
11 | who is also the manufacturer of beer, is found in violation of | ||||||
12 | subsection (b) of this Section, such license issued to the | ||||||
13 | manufacturer of beer, brewer, or non-resident dealer, who is | ||||||
14 | also the manufacturer of beer, shall expire without further | ||||||
15 | action. | ||||||
16 | (d) Notwithstanding any provision of this Act, no person | ||||||
17 | licensed as a distributor or importing distributor shall have | ||||||
18 | any interest, directly or indirectly, in a person licensed as a | ||||||
19 | manufacturer of beer by any licensing authority, or any | ||||||
20 | partnership, corporation, subsidiary, limited liability | ||||||
21 | company, trust, agent or affiliate, or any other form of | ||||||
22 | business enterprise thereof, except for ownership of no more | ||||||
23 | than 5% of the outstanding shares of a manufacturer of beer | ||||||
24 | whose shares are publicly traded on an exchange within the | ||||||
25 | meaning of the Securities Exchange Act of 1934. Any person who | ||||||
26 | holds such an interest in a person licensed as a manufacturer |
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1 | of beer by any licensing authority or any partnership, | ||||||
2 | corporation, subsidiary, limited liability company, trust, | ||||||
3 | agent or affiliate, or any other form of business enterprise | ||||||
4 | thereof, except for ownership of no more than 5% of the | ||||||
5 | outstanding shares of a manufacturer of beer whose shares are | ||||||
6 | publicly traded on an exchange within the meaning of the | ||||||
7 | Securities Exchange Act of 1934 prior to this amendatory Act of | ||||||
8 | the 98th General Assembly, shall, in accordance with paragraph | ||||||
9 | (20) of subsection (a) of Section 6-2, be ineligible to receive | ||||||
10 | or hold a license issued by the State Commission. | ||||||
11 | (e) The State Commission shall, within 30 days after the | ||||||
12 | effective date of this amendatory Act of the 98th General | ||||||
13 | Assembly, notify all persons licensed by the State Commission | ||||||
14 | as a distributor or importing distributor of the provisions of | ||||||
15 | subsection (d) of this Section. Such distributors or importing | ||||||
16 | distributors shall, within 30 days after receiving the notice, | ||||||
17 | file a written disclosure with the Commission of all such | ||||||
18 | interests greater than permitted by the provisions of | ||||||
19 | subsection (d) of this Section in the manner and form | ||||||
20 | prescribed by the Commission. Any distributor or importing | ||||||
21 | distributor who has disclosed any interest greater than | ||||||
22 | permitted by the provisions of subsection (d) may indicate in | ||||||
23 | its written disclosure a request for an additional period of | ||||||
24 | time to divest such interest. If such interest is not divested | ||||||
25 | by the agreed time by such distributor or importing | ||||||
26 | distributor, the State Commission, after notice and hearing, |
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1 | shall revoke the license upon the State Commission's | ||||||
2 | determination of a violation of subsection (d) of this Section. | ||||||
3 | The State Commission shall enter its order within 90 days of | ||||||
4 | the date of issuance of the notice of revocation of the | ||||||
5 | license. The State Commission may, upon good cause, grant an | ||||||
6 | extension to divest such interest for a reasonable period of | ||||||
7 | time not to exceed 24 months from the effective date of this | ||||||
8 | amendatory Act of the 98th General Assembly. | ||||||
9 | In the event that a timely request for a hearing is not | ||||||
10 | received and the distributor or importing distributor is found | ||||||
11 | in violation of subsection (d) of this Section, such license | ||||||
12 | issued to the distributor or importing distributor shall expire | ||||||
13 | without further action.
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14 | Section 99. Effective date. This Act takes effect upon | ||||||
15 | becoming law.
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