Rep. Frank J. Mautino
Filed: 4/11/2013
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1 | AMENDMENT TO HOUSE BILL 2606
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2 | AMENDMENT NO. ______. Amend House Bill 2606 by replacing | ||||||
3 | everything after the enacting clause with the following:
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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 6-1.5 and 6-4.5 as | ||||||
6 | follows: | ||||||
7 | (235 ILCS 5/6-1.5 new) | ||||||
8 | Sec. 6-1.5. Three-tier regulatory system; public policy | ||||||
9 | and rule of statutory construction. The General Assembly hereby | ||||||
10 | restates that it is the policy of this State that the primary | ||||||
11 | purpose of this Act is to protect the health, safety, and | ||||||
12 | welfare of this State through the sound and careful control and | ||||||
13 | regulation of the manufacture, distribution, and sale of | ||||||
14 | alcoholic liquor through a 3-tier regulatory system. To ensure | ||||||
15 | and maintain a 3-tier regulatory system, the General Assembly | ||||||
16 | finds that it is the obligation and duty of the State |
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1 | Commission to construe the provisions of this Act in a manner | ||||||
2 | that conforms to State policy and this Act's primary purpose as | ||||||
3 | articulated in this Section and to exercise its statutory | ||||||
4 | authority in a manner consistent with that purpose whether or | ||||||
5 | not the provisions of this Act are unambiguous or capable of | ||||||
6 | one or more reasonable constructions.
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7 | (235 ILCS 5/6-2) (from Ch. 43, par. 120)
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8 | Sec. 6-2. Issuance of licenses to certain persons | ||||||
9 | prohibited.
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10 | (a) Except as otherwise provided in subsection (b) of this | ||||||
11 | Section and in paragraph (1) of subsection (a) of Section 3-12, | ||||||
12 | no license
of any kind issued by the State Commission or any | ||||||
13 | local
commission shall be issued to:
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14 | (1) A person who is not a resident of any city, village | ||||||
15 | or county in
which the premises covered by the license are | ||||||
16 | located; except in case of
railroad or boat licenses.
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17 | (2) A person who is not of good character and | ||||||
18 | reputation in the
community in which he resides.
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19 | (3) A person who is not a citizen of the United States.
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20 | (4) A person who has been convicted of a felony under | ||||||
21 | any Federal or
State law, unless the Commission determines | ||||||
22 | that such
person has been sufficiently rehabilitated to | ||||||
23 | warrant the public trust
after considering matters set | ||||||
24 | forth in such person's application and the
Commission's | ||||||
25 | investigation. The burden of proof of sufficient
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1 | rehabilitation shall be on the applicant.
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2 | (5) A person who has been convicted of keeping a place | ||||||
3 | of prostitution or keeping a place of juvenile | ||||||
4 | prostitution, promoting prostitution that involves keeping | ||||||
5 | a place of prostitution, or promoting juvenile | ||||||
6 | prostitution that involves keeping a place of juvenile | ||||||
7 | prostitution.
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8 | (6) A person who has been convicted of pandering or | ||||||
9 | other crime or
misdemeanor opposed to decency and morality.
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10 | (7) A person whose license issued under this Act has | ||||||
11 | been revoked for
cause.
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12 | (8) A person who at the time of application for renewal | ||||||
13 | of any license
issued hereunder would not be eligible for | ||||||
14 | such license upon a first
application.
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15 | (9) A copartnership, if any general partnership | ||||||
16 | thereof, or any
limited partnership thereof, owning more | ||||||
17 | than 5% of the aggregate limited
partner interest in such | ||||||
18 | copartnership would not be eligible to receive a
license | ||||||
19 | hereunder for any reason other than residence within the | ||||||
20 | political
subdivision, unless residency is required by | ||||||
21 | local ordinance.
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22 | (10) A corporation or limited liability company, if any | ||||||
23 | member, officer, manager or director thereof, or
any | ||||||
24 | stockholder or stockholders owning in the aggregate more | ||||||
25 | than 5% of the
stock of such corporation, would not be | ||||||
26 | eligible to receive a license
hereunder for any reason |
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1 | other than citizenship and residence within the
political | ||||||
2 | subdivision.
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3 | (10a) A corporation or limited liability company | ||||||
4 | unless it is incorporated or organized in Illinois, or | ||||||
5 | unless it
is a foreign corporation or foreign limited | ||||||
6 | liability company which is qualified under the Business
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7 | Corporation Act of 1983 or the Limited Liability Company | ||||||
8 | Act to transact business in Illinois. The Commission shall | ||||||
9 | permit and accept from an applicant for a license under | ||||||
10 | this Act proof prepared from the Secretary of State's | ||||||
11 | website that the corporation or limited liability company | ||||||
12 | is in good standing and is qualified under the Business
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13 | Corporation Act of 1983 or the Limited Liability Company | ||||||
14 | Act to transact business in Illinois.
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15 | (11) A person whose place of business is conducted by a | ||||||
16 | manager or agent
unless the manager or agent possesses the | ||||||
17 | same qualifications required by
the licensee.
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18 | (12) A person who has been convicted of a violation of | ||||||
19 | any Federal or
State law concerning the manufacture, | ||||||
20 | possession or sale of alcoholic
liquor, subsequent to the | ||||||
21 | passage of this Act or has forfeited his bond to
appear in | ||||||
22 | court to answer charges for any such violation.
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23 | (13) A person who does not beneficially own the | ||||||
24 | premises for which a
license is sought, or does not have a | ||||||
25 | lease thereon for the full period for
which the license is | ||||||
26 | to be issued.
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1 | (14) Any law enforcing public official, including | ||||||
2 | members
of local liquor control commissions,
any mayor, | ||||||
3 | alderman, or member of the
city council or commission, any | ||||||
4 | president of the village board of trustees,
any member of a | ||||||
5 | village board of trustees, or any president or member of a
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6 | county board; and no such official shall have a direct | ||||||
7 | interest in the
manufacture, sale, or distribution of | ||||||
8 | alcoholic liquor, except that a
license
may be granted to | ||||||
9 | such official in relation to premises that are
not
located | ||||||
10 | within the territory subject to the jurisdiction of that | ||||||
11 | official
if the issuance of such license is approved by the | ||||||
12 | State Liquor Control
Commission
and except that a license | ||||||
13 | may be granted, in a city or village with a
population of | ||||||
14 | 50,000 or less, to any alderman, member of a city council, | ||||||
15 | or
member of a village board of trustees in relation to | ||||||
16 | premises that are located
within the territory
subject to | ||||||
17 | the jurisdiction of that official if (i) the sale of | ||||||
18 | alcoholic
liquor pursuant to the license is incidental to | ||||||
19 | the selling of food, (ii) the
issuance of the license is | ||||||
20 | approved by the State Commission, (iii) the
issuance of the | ||||||
21 | license is in accordance with all applicable local | ||||||
22 | ordinances
in effect where the premises are located, and | ||||||
23 | (iv) the official granted a
license does not vote on | ||||||
24 | alcoholic liquor issues pending before the board or
council | ||||||
25 | to which the license holder is elected. Notwithstanding any | ||||||
26 | provision of this paragraph (14) to the contrary, an |
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1 | alderman or member of a city council or commission, a | ||||||
2 | member of a village board of trustees other than the | ||||||
3 | president of the village board of trustees, or a member of | ||||||
4 | a county board other than the president of a county board | ||||||
5 | may have a direct interest in the manufacture, sale, or | ||||||
6 | distribution of alcoholic liquor as long as he or she is | ||||||
7 | not a law enforcing public official, a mayor, a village | ||||||
8 | board president, or president of a county board. To prevent | ||||||
9 | any conflict of interest, the elected official with the | ||||||
10 | direct interest in the manufacture, sale, or distribution | ||||||
11 | of alcoholic liquor shall not participate in any meetings, | ||||||
12 | hearings, or decisions on matters impacting the | ||||||
13 | manufacture, sale, or distribution of alcoholic liquor. | ||||||
14 | Furthermore, the mayor of a city with a population of | ||||||
15 | 50,000 or less or the president of a village with a | ||||||
16 | population of 50,000 or less may have an interest in the | ||||||
17 | manufacture, sale, or distribution of alcoholic liquor as | ||||||
18 | long as the council or board over which he or she presides | ||||||
19 | has made a local liquor control commissioner appointment | ||||||
20 | that complies with the requirements of Section 4-2 of this | ||||||
21 | Act.
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22 | (15) A person who is not a beneficial owner of the | ||||||
23 | business to be
operated by the licensee.
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24 | (16) A person who has been convicted of a gambling | ||||||
25 | offense as
proscribed by any of subsections (a) (3) through | ||||||
26 | (a)
(11) of
Section 28-1 of, or as
proscribed by Section |
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1 | 28-1.1 or 28-3 of, the Criminal Code of
1961 or the | ||||||
2 | Criminal Code of 2012, or as proscribed by a
statute
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3 | replaced by any of the aforesaid statutory provisions.
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4 | (17) A person or entity to whom a federal wagering | ||||||
5 | stamp has been
issued by the
federal government, unless the | ||||||
6 | person or entity is eligible to be issued a
license under | ||||||
7 | the Raffles Act or the Illinois Pull Tabs and Jar Games | ||||||
8 | Act.
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9 | (18) A person who intends to sell alcoholic liquors for | ||||||
10 | use or
consumption on his or her licensed retail premises | ||||||
11 | who does not have liquor
liability insurance coverage for | ||||||
12 | that premises in an amount that is at least
equal to the | ||||||
13 | maximum liability amounts set out in subsection (a) of | ||||||
14 | Section
6-21.
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15 | (19) A person who is licensed by any licensing | ||||||
16 | authority as a manufacturer of beer, or any partnership, | ||||||
17 | corporation, subsidiary, limited liability company, trust, | ||||||
18 | agent, affiliate, or any other form of business enterprise | ||||||
19 | licensed as a manufacturer of beer, having any legal, | ||||||
20 | equitable, or beneficial interest, directly or indirectly, | ||||||
21 | in a person licensed in this State as a distributor or | ||||||
22 | importing distributor. For purposes of this paragraph | ||||||
23 | (19), "manufacturer of beer" shall also mean a brewer and a | ||||||
24 | non-resident dealer who is also a manufacturer of beer, | ||||||
25 | including a partnership, corporation, limited liability | ||||||
26 | company, or trust or any subsidiary, affiliate, or agent |
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1 | thereof, or any other form of business enterprise licensed | ||||||
2 | as a manufacturer of beer. | ||||||
3 | (20) A person who is licensed in this State as a | ||||||
4 | distributor or importing distributor, or any partnership, | ||||||
5 | corporation, limited liability company, or trust or any | ||||||
6 | subsidiary, affiliate, or agent thereof, or any other form | ||||||
7 | of business enterprise licensed in this State as a | ||||||
8 | distributor or importing distributor having any legal, | ||||||
9 | equitable, or beneficial interest, directly or indirectly, | ||||||
10 | in a person licensed as a manufacturer of beer by any | ||||||
11 | licensing authority, or any partnership, corporation, | ||||||
12 | subsidiary, limited liability company, trust, agent, or | ||||||
13 | affiliate, or any other form of business enterprise | ||||||
14 | thereof, except for a person who owns, on or after the | ||||||
15 | effective date of this amendatory Act of the 98th General | ||||||
16 | Assembly, no more than 5% of the outstanding shares of a | ||||||
17 | manufacturer of beer whose shares are publicly traded on an | ||||||
18 | exchange within the meaning of the Securities Exchange Act | ||||||
19 | of 1934. For the purposes of this paragraph (20), | ||||||
20 | "manufacturer of beer" shall also mean a brewer and a | ||||||
21 | non-resident dealer who is also a manufacturer of beer, | ||||||
22 | including a partnership, corporation, limited liability | ||||||
23 | company, or trust or any subsidiary, affiliate, or agent | ||||||
24 | thereof, or any other form of business enterprise licensed | ||||||
25 | as a manufacturer of beer. | ||||||
26 | (b) A criminal conviction of a corporation is not grounds |
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1 | for the
denial, suspension, or revocation of a license applied | ||||||
2 | for or held by the
corporation if the criminal conviction was | ||||||
3 | not the result of a violation of any
federal or State law | ||||||
4 | concerning the manufacture, possession or sale of
alcoholic | ||||||
5 | liquor, the offense that led to the conviction did not result | ||||||
6 | in any
financial gain to the corporation and the corporation | ||||||
7 | has terminated its
relationship with each director, officer, | ||||||
8 | employee, or controlling shareholder
whose actions directly | ||||||
9 | contributed to the conviction of the corporation. The
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10 | Commission shall determine if all provisions of this subsection | ||||||
11 | (b) have been
met before any action on the corporation's | ||||||
12 | license is initiated.
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13 | (Source: P.A. 96-1551, eff. 7-1-11; 97-1059, eff. 8-24-12; | ||||||
14 | 97-1150, eff. 1-25-13.)
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15 | (235 ILCS 5/6-4.5 new) | ||||||
16 | Sec. 6-4.5. Prohibited ownership interests in a | ||||||
17 | distributor, importing distributor, manufacturer of beer, or | ||||||
18 | non-resident dealer. | ||||||
19 | (a) The General Assembly finds, consistent with Section | ||||||
20 | 6-1.5, that the 3-tier regulatory system is designed to prevent | ||||||
21 | a manufacturer of beer as described in paragraph (19) of | ||||||
22 | subsection (a) of Section 6-2 from exercising vertical | ||||||
23 | integration between a manufacturer of beer and a distributor or | ||||||
24 | importing distributor through any ownership interest, or | ||||||
25 | through control of the distributor or importing distributor. |
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1 | The General Assembly further finds, consistent with Section | ||||||
2 | 6-1.5, that the 3-tier regulatory system is designed to prevent | ||||||
3 | a distributor or importing distributor as described in | ||||||
4 | paragraph (20) of subsection (a) of Section 6-2 from having any | ||||||
5 | ownership interest in a manufacturer of beer as described in | ||||||
6 | paragraph (20) of subsection (a) of Section 6-2 except for the | ||||||
7 | ownership of no more than 5% of the outstanding shares of a | ||||||
8 | manufacturer of beer whose shares are publicly traded on an | ||||||
9 | exchange within the meaning of the Securities Exchange Act of | ||||||
10 | 1934. The General Assembly further finds that it is necessary | ||||||
11 | to have the State Commission undertake an expedited | ||||||
12 | investigation, in accordance with procedural due process, to | ||||||
13 | determine whether any existing manufacturer of beer described | ||||||
14 | in paragraph (19) of subsection (a) of Section 6-2 or any | ||||||
15 | existing distributor or importing distributor described in | ||||||
16 | paragraph (20) of subsection (a) of Section 6-2 owns a | ||||||
17 | prohibited ownership interest, and an orderly process by which | ||||||
18 | an existing manufacturer of beer, distributor, or importing | ||||||
19 | distributor may divest itself of or sever the prohibited | ||||||
20 | ownership interest by no later than January 1, 2015. | ||||||
21 | (b) Notwithstanding any provision of this Act to the | ||||||
22 | contrary, no person licensed as a manufacturer of beer as | ||||||
23 | described in paragraph (19) of subsection (a) of Section 6-2 | ||||||
24 | shall have any prohibited ownership interest, directly or | ||||||
25 | indirectly, in a person licensed as a distributor or importing | ||||||
26 | distributor. Any person who holds a prohibited ownership |
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1 | interest in a person licensed as a distributor or importing | ||||||
2 | distributor prior to this amendatory Act of the 98th General | ||||||
3 | Assembly shall, in accordance with paragraph (19) of subsection | ||||||
4 | (a) of Section 6-2, be ineligible to receive or hold any | ||||||
5 | license issued by the State Commission, unless that person | ||||||
6 | complies with the provisions of this Section. | ||||||
7 | (c) Notwithstanding any provision of this Act to the | ||||||
8 | contrary, no person licensed in this State as a distributor or | ||||||
9 | importing distributor as described in paragraph (20) of | ||||||
10 | subsection (a) of Section 6-2 shall have any prohibited | ||||||
11 | ownership interest, directly or indirectly, in a person | ||||||
12 | licensed as a manufacturer of beer as described in paragraph | ||||||
13 | (20) of subsection (a) of Section 6-2. Any person who holds an | ||||||
14 | interest in a person licensed as a distributor or importing | ||||||
15 | distributor in this State prior to this amendatory Act of the | ||||||
16 | 98th General Assembly shall, in accordance with paragraph (20) | ||||||
17 | of subsection (a) of Section 6-2, be ineligible to receive or | ||||||
18 | hold a license by the State Commission, unless the person | ||||||
19 | complies with the provisions of this Section. This subsection | ||||||
20 | (c) shall not apply to a person who owns, on or after the | ||||||
21 | effective date of this amendatory Act of the 98th General | ||||||
22 | Assembly, no more than 5% of the outstanding shares of a | ||||||
23 | manufacturer of beer whose shares are publicly traded on an | ||||||
24 | exchange within the meaning of the Securities Exchange Act of | ||||||
25 | 1934. | ||||||
26 | (d) Within 30 days after the effective date of this |
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1 | amendatory Act of the 98th General Assembly, the State | ||||||
2 | Commission shall notify in writing all persons licensed by the | ||||||
3 | State Commission as a manufacturer of beer, as described in | ||||||
4 | paragraph (19) of subsection (a) of Section 6-2 of the | ||||||
5 | prohibited ownership interest provision set forth in | ||||||
6 | subsection (b) of this Section and paragraph (19) of subsection | ||||||
7 | (a) of Section 6-2. Also within 30 days after the effective | ||||||
8 | date of this amendatory Act of the 98th General Assembly, the | ||||||
9 | State Commission shall notify in writing all persons licensed | ||||||
10 | by the State Commission as a distributor or importing | ||||||
11 | distributor of the prohibited ownership interest provision set | ||||||
12 | forth in subsection (c) of this Section and paragraph (20) of | ||||||
13 | subsection (a) of Section 6-2. The notice provided by the State | ||||||
14 | Commission shall also state for a manufacturer of beer, as | ||||||
15 | described in paragraph (19) of subsection (a) of Section 6-2, | ||||||
16 | that it is required to disclose in writing any ownership | ||||||
17 | interest it directly or indirectly possesses in a distributor | ||||||
18 | or importing distributor, as described in paragraph (20) of | ||||||
19 | subsection (a) of Section 6-2, the type and amount of ownership | ||||||
20 | interest possessed by it, the length of time the manufacturer | ||||||
21 | of beer has held the ownership interest in the distributor or | ||||||
22 | importing distributor, and any other information specified by | ||||||
23 | the State Commission in its written notice. The notice provided | ||||||
24 | by the State Commission shall also state for a distributor or | ||||||
25 | importing distributor, as described in paragraph (20) of | ||||||
26 | subsection (a) of Section 6-2, that it is required to disclose |
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1 | in writing any ownership interest it directly or indirectly | ||||||
2 | possesses in a manufacturer of beer, as described in paragraph | ||||||
3 | (19) of subsection (a) of Section 6-2, the type and amount of | ||||||
4 | ownership interest possessed by it, the length of time the | ||||||
5 | manufacturer of beer has held the ownership interest in the | ||||||
6 | distributor or importing distributor, and any other | ||||||
7 | information specified by the State Commission in its written | ||||||
8 | notice. | ||||||
9 | (e) Within 60 days after the effective date of this | ||||||
10 | amendatory Act of the 98th General Assembly, each manufacturer | ||||||
11 | of beer, distributor, or importing distributor subject to | ||||||
12 | notification under subsection (d) of this Section shall | ||||||
13 | disclose in writing and under oath the relevant ownership | ||||||
14 | interest and other required information specified in the | ||||||
15 | notification provided by the State Commission pursuant to that | ||||||
16 | subsection. The written disclosure shall, as a mandatory | ||||||
17 | obligation, be tendered to the State Commission by either | ||||||
18 | personal service or via certified or registered mail at the | ||||||
19 | State Commission's Springfield or Chicago office on or before | ||||||
20 | the 60th day during regular business hours. Failure to tender | ||||||
21 | the required written disclosure shall result in the immediate | ||||||
22 | entry of an order by the State Commission suspending the | ||||||
23 | licensee's license within 5 days after the 60th day, and the | ||||||
24 | initiation of proceedings by the State Commission to enter an | ||||||
25 | order to permanently revoke the licensee's license no later | ||||||
26 | than 45 days after providing the licensee with notice and an |
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1 | opportunity for a hearing. Whenever the State Commission has | ||||||
2 | reason to believe that a person has failed to comply with the | ||||||
3 | Commission notice under this Section, it shall notify the | ||||||
4 | Department of Revenue and the Attorney General, and shall file | ||||||
5 | a complaint with the State's Attorney of the county where the | ||||||
6 | alcoholic liquor was delivered or with appropriate law | ||||||
7 | enforcement officials. Failure to make the written disclosure | ||||||
8 | required under this subsection shall constitute a business | ||||||
9 | offense for which the person shall be fined not more than | ||||||
10 | $5,000 for a first offense, not more than $10,000 for a second | ||||||
11 | offense, and not more than $15,000 for a third or subsequent | ||||||
12 | offense. | ||||||
13 | (f) Within 120 days after the effective date of this | ||||||
14 | amendatory Act of the 98th General Assembly, the State | ||||||
15 | Commission shall review each of the disclosures tendered to the | ||||||
16 | State Commission by licensees pursuant to subsection (e) and | ||||||
17 | enter an order determining whether or not each licensee is in | ||||||
18 | compliance with subsection (b) or (c) of this Section, | ||||||
19 | whichever is applicable, after providing each licensee with | ||||||
20 | notice and an opportunity for a hearing. As part of making its | ||||||
21 | determination, the State Commission shall also consider any | ||||||
22 | information otherwise admissible under Section 10-40 of the | ||||||
23 | Illinois Administrative Procedure Act. | ||||||
24 | (g) If the State Commission determines, based on a | ||||||
25 | preponderance of record evidence, that a manufacturer of beer, | ||||||
26 | distributor, or importing distributor has no prohibited |
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1 | ownership interest in a licensee in violation of subsection (b) | ||||||
2 | or (c) of this Section, then the State Commission shall enter | ||||||
3 | an order finding that the manufacturer of beer, distributor, or | ||||||
4 | importing distributor is in compliance with this Section, | ||||||
5 | record the matter as closed, and serve a copy of the order of | ||||||
6 | compliance on the licensee and each person with an ownership | ||||||
7 | interest in the licensee. | ||||||
8 | If the State Commission determines, based on a | ||||||
9 | preponderance of record evidence, that a manufacturer of beer, | ||||||
10 | as described in paragraph (19) of subsection (a) of Section | ||||||
11 | 6-2, has a prohibited ownership interest as set forth in | ||||||
12 | subsection (b) of this Section, then the State Commission shall | ||||||
13 | enter an order finding that the manufacturer of beer is not in | ||||||
14 | compliance with this Section and that the manufacturer of beer | ||||||
15 | shall divest itself of that interest on or before January 1, | ||||||
16 | 2015, subject to the State Commission's approval of the | ||||||
17 | successive owner pursuant to the State Commission's authority | ||||||
18 | provided in this Act. In addition, the State Commission shall | ||||||
19 | find that the relevant distributor or importing distributor is | ||||||
20 | not in compliance with this Section and that the distributor or | ||||||
21 | importing distributor is required to sever the prohibited | ||||||
22 | ownership interest possessed by the relevant manufacturer of | ||||||
23 | beer on or before January 1, 2015, subject to the State | ||||||
24 | Commission's approval of the successive owner pursuant to the | ||||||
25 | State Commission's authority provided in this Act. | ||||||
26 | If the State Commission determines, based on a |
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1 | preponderance of record evidence, that a distributor or | ||||||
2 | importing distributor, as described in paragraph (20) of | ||||||
3 | subsection (a) of Section 6-2, has a prohibited ownership | ||||||
4 | interest as set forth in subsection (c) of this Section, then | ||||||
5 | the State Commission shall enter an order finding that the | ||||||
6 | relevant distributor or importing distributor is not in | ||||||
7 | compliance with this Section and that the relevant distributor | ||||||
8 | or importing distributor shall divest itself of that interest | ||||||
9 | on or before January 1, 2015, subject to the State Commission's | ||||||
10 | approval of the successive owner pursuant to the State | ||||||
11 | Commission's authority provided in this Act. In addition, the | ||||||
12 | State Commission shall find that the manufacturer of beer is | ||||||
13 | not in compliance with this Section and that the manufacturer | ||||||
14 | of beer shall sever the prohibited ownership interest possessed | ||||||
15 | by the distributor or importing distributor on or before | ||||||
16 | January 1, 2015, subject to the State Commission's approval of | ||||||
17 | the successive owner pursuant to the State Commission's | ||||||
18 | authority provided in this Act. | ||||||
19 | The State Commission's order shall further find that the | ||||||
20 | continued ownership of the prohibited ownership interest | ||||||
21 | beyond January 1, 2015 by the manufacturer of beer, | ||||||
22 | distributor, or importing distributor is against the public | ||||||
23 | interest and a violation of this Section and Section 6-1.5 of | ||||||
24 | the Act. | ||||||
25 | The State Commission's order shall further find for a | ||||||
26 | manufacturer of beer, as described in paragraph (19) of |
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1 | subsection (a) of Section 6-2, found in non-compliance with | ||||||
2 | subsection (b) of this Section that its license is revoked on | ||||||
3 | January 16, 2015 as to the transport, transfer, or sale of any | ||||||
4 | alcoholic liquor to the relevant distributor or importing | ||||||
5 | distributor that the manufacturer of beer has a prohibited | ||||||
6 | ownership interest in if that interest is not properly divested | ||||||
7 | on January 1, 2015, subject to the State Commission's approval | ||||||
8 | of the successive owner pursuant to the State Commission's | ||||||
9 | authority provided in this Act. In addition, the State | ||||||
10 | Commission shall find that the license of a distributor or | ||||||
11 | importing distributor that is subject to the prohibited | ||||||
12 | ownership interest of the manufacturer of beer is revoked on | ||||||
13 | January 16, 2015 as to the transport, transfer, or sale of | ||||||
14 | alcoholic liquor from the relevant manufacturer of beer to any | ||||||
15 | retailer if that ownership interest is not properly severed on | ||||||
16 | January 1, 2015, subject to the State Commission's approval of | ||||||
17 | the successive owner pursuant to the State Commission's | ||||||
18 | authority provided in this Act. | ||||||
19 | The State Commission's order shall further find for a | ||||||
20 | distributor or importing distributor, as described in | ||||||
21 | paragraph (20) of subsection (a) of Section 6-2, found in | ||||||
22 | non-compliance with subsection (c) of this Section, that its | ||||||
23 | license is revoked on January 16, 2015 as to the transport, | ||||||
24 | transfer, or sale of any alcoholic liquor from the relevant | ||||||
25 | manufacturer of beer to any retailer if that prohibited | ||||||
26 | ownership interest in the manufacturer of beer is not properly |
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1 | divested on January 1, 2015, subject to the State Commission's | ||||||
2 | approval of the successive owner pursuant to the State | ||||||
3 | Commission's authority provided in this Act. In addition, the | ||||||
4 | State Commission shall find that the license of the | ||||||
5 | manufacturer of beer that is subject to the prohibited | ||||||
6 | ownership interest of a distributor or importing distributor is | ||||||
7 | revoked on January 16, 2015 as to the transport, transfer, or | ||||||
8 | sale of alcoholic liquor to the distributor or importing | ||||||
9 | distributor if that ownership interest is not properly severed | ||||||
10 | on January 1, 2015, subject to the State Commission's approval | ||||||
11 | of the successive owner pursuant to the State Commission's | ||||||
12 | authority provided in this Act. | ||||||
13 | The State Commission shall serve a copy of the order of | ||||||
14 | non-compliance on the licensee and each person with an | ||||||
15 | ownership interest in the licensee. | ||||||
16 | (h) If a person with a prohibited ownership interest in a | ||||||
17 | licensee under subsection (b) or (c) of this Section succeeds | ||||||
18 | in divesting itself of or severing that interest and obtains | ||||||
19 | the State Commission's approval of the successive owner | ||||||
20 | pursuant to its authority provided in this Act on or before | ||||||
21 | January 1, 2015, then the State Commission shall enter an order | ||||||
22 | finding that the licensee is in compliance, record the matter | ||||||
23 | as closed, and serve a copy of the order of compliance on the | ||||||
24 | licensee and each person with an ownership interest in the | ||||||
25 | licensee. | ||||||
26 | If a person with a prohibited ownership interest in |
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| |||||||
1 | violation of subsection (b) or (c) of this Section fails to | ||||||
2 | divest itself of or sever that interest and obtain the State | ||||||
3 | Commission's approval of the successive owner pursuant to the | ||||||
4 | State Commission's authority provided in this Act on or before | ||||||
5 | January 1, 2015, then the State Commission shall, after notice | ||||||
6 | and an opportunity for a hearing, revoke each licensee's | ||||||
7 | license as specified in subsection (g) of this Section on | ||||||
8 | January 16, 2015. The State Commission, when entering the | ||||||
9 | order, shall give notice to the person by certified mail to | ||||||
10 | cease and desist all shipments of alcoholic liquor into or | ||||||
11 | within this State and to withdraw from this State within 5 | ||||||
12 | working days after receipt of the notice all shipments of | ||||||
13 | alcoholic liquor in transit. Whenever the State Commission has | ||||||
14 | reason to believe that a person has failed to comply with the | ||||||
15 | State Commission's notice under this Section, it shall notify | ||||||
16 | the Department of Revenue and the Attorney General, and shall | ||||||
17 | file a complaint with the State's Attorney of the county where | ||||||
18 | the alcoholic liquor was delivered, or with appropriate law | ||||||
19 | enforcement officials. Failure to comply with the notice issued | ||||||
20 | by the State Commission under this Section is against the | ||||||
21 | public interest and constitutes a business offense for which | ||||||
22 | the person shall be fined not more than $5,000 for a first | ||||||
23 | offense, not more than $10,000 for a second offense, and not | ||||||
24 | more than $15,000 for a third or subsequent offense. Each | ||||||
25 | shipment or transfer of alcoholic liquor in violation of the | ||||||
26 | cease and desist notice shall constitute a separate offense. |
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1 | (i) The power and authority granted to the State Commission | ||||||
2 | under this Section is in addition to any existing power or | ||||||
3 | authority the State Commission has under this Act and its | ||||||
4 | exercise shall be accorded precedence on the State Commission's | ||||||
5 | meeting agenda so as to fully accommodate the schedule for any | ||||||
6 | proceeding under the provisions of this Section. Nothing in | ||||||
7 | this Act shall be construed as limiting or otherwise impairing | ||||||
8 | the ability of the State Commission to conduct future | ||||||
9 | investigations and proceedings sua sponte or pursuant to a | ||||||
10 | complaint to ensure compliance with this Section or paragraph | ||||||
11 | (19) or (20) of subsection (a) of Section 6-2 of this Act. Any | ||||||
12 | future investigations and proceedings shall be conducted by the | ||||||
13 | State Commission on an expedited basis and pursuant to an | ||||||
14 | initiating order entered by the State Commission. The State | ||||||
15 | Commission shall enter its initiating order within 30 days | ||||||
16 | after the receipt of a complaint. The initiating order shall | ||||||
17 | set forth a schedule by which the required notices, | ||||||
18 | disclosures, determinations, or orders specified in | ||||||
19 | subsections (d), (e), (f), (g), and (h) shall be made or | ||||||
20 | entered, and the period of time by which a licensee shall | ||||||
21 | divest itself of or sever a prohibited ownership interest, | ||||||
22 | which shall be no later than 540 days after the entry of the | ||||||
23 | initiating order. | ||||||
24 | (j) Any association or non-profit corporation representing | ||||||
25 | beer distributors in this State shall have standing to | ||||||
26 | intervene and otherwise participate as a party in any |
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1 | proceeding undertaken by the State Commission under this | ||||||
2 | Section to review and determine compliance or non-compliance | ||||||
3 | with this Section. | ||||||
4 | (k) For purposes of this Section, the term "ownership | ||||||
5 | interest" means a legal, equitable, or beneficial interest | ||||||
6 | recognized under Illinois law. The term "prohibited ownership | ||||||
7 | interest" means an ownership interest in a distributor, | ||||||
8 | importing distributor, or manufacturer of beer as specified in | ||||||
9 | this Section.
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10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.".
|