Full Text of HB2878 100th General Assembly
HB2878eng 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning liquor.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Liquor Control Act of 1934 is amended by | 5 | | changing Section 3-12 as follows:
| 6 | | (235 ILCS 5/3-12)
| 7 | | Sec. 3-12. Powers and duties of State Commission.
| 8 | | (a) The State commission shall have the following powers, | 9 | | functions, and
duties:
| 10 | | (1) To receive applications and to issue licenses to | 11 | | manufacturers,
foreign importers, importing distributors, | 12 | | distributors, non-resident dealers,
on premise consumption | 13 | | retailers, off premise sale retailers, special event
| 14 | | retailer licensees, special use permit licenses, auction | 15 | | liquor licenses, brew
pubs, caterer retailers, | 16 | | non-beverage users, railroads, including owners and
| 17 | | lessees of sleeping, dining and cafe cars, airplanes, | 18 | | boats, brokers, and wine
maker's premises licensees in | 19 | | accordance with the provisions of this Act, and
to suspend | 20 | | or revoke such licenses upon the State commission's | 21 | | determination,
upon notice after hearing, that a licensee | 22 | | has violated any provision of this
Act or any rule or | 23 | | regulation issued pursuant thereto and in effect for 30 |
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| 1 | | days
prior to such violation. Except in the case of an | 2 | | action taken pursuant to a
violation of Section 6-3, 6-5, | 3 | | or 6-9, any action by the State Commission to
suspend or | 4 | | revoke a licensee's license may be limited to the license | 5 | | for the
specific premises where the violation occurred.
An | 6 | | action for a violation of this Act shall be commenced by | 7 | | the State Commission within 2 years after the date the | 8 | | State Commission becomes aware of the violation.
| 9 | | In lieu of suspending or revoking a license, the | 10 | | commission may impose
a fine, upon the State commission's | 11 | | determination and notice after hearing,
that a licensee has | 12 | | violated any provision of this Act or any rule or
| 13 | | regulation issued pursuant thereto and in effect for 30 | 14 | | days prior to such
violation. | 15 | | For the purpose of this paragraph (1), when determining | 16 | | multiple violations for the sale of alcohol to a person | 17 | | under the age of 21, a second or subsequent violation for | 18 | | the sale of alcohol to a person under the age of 21 shall | 19 | | only be considered if it was committed within 5 years after | 20 | | the date when a prior violation for the sale of alcohol to | 21 | | a person under the age of 21 was committed. | 22 | | The fine imposed under this paragraph may not exceed | 23 | | $500 for each
violation. Each day that the activity, which | 24 | | gave rise to the original fine,
continues is a separate | 25 | | violation. The maximum fine that may be levied against
any | 26 | | licensee, for the period of the license, shall not exceed |
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| 1 | | $20,000.
The maximum penalty that may be imposed on a | 2 | | licensee for selling a bottle of
alcoholic liquor with a | 3 | | foreign object in it or serving from a bottle of
alcoholic | 4 | | liquor with a foreign object in it shall be the destruction | 5 | | of that
bottle of alcoholic liquor for the first 10 bottles | 6 | | so sold or served from by
the licensee. For the eleventh | 7 | | bottle of alcoholic liquor and for each third
bottle | 8 | | thereafter sold or served from by the licensee with a | 9 | | foreign object in
it, the maximum penalty that may be | 10 | | imposed on the licensee is the destruction
of the bottle of | 11 | | alcoholic liquor and a fine of up to $50.
| 12 | | Any notice issued by the State Commission to a licensee | 13 | | for a violation of this Act or any notice with respect to | 14 | | settlement or offer in compromise shall include the field | 15 | | report, photographs, and any other supporting | 16 | | documentation necessary to reasonably inform the licensee | 17 | | of the nature and extent of the violation or the conduct | 18 | | alleged to have occurred. | 19 | | (2) To adopt such rules and regulations consistent with | 20 | | the
provisions of this Act which shall be necessary to | 21 | | carry on its
functions and duties to the end that the | 22 | | health, safety and welfare of
the People of the State of | 23 | | Illinois shall be protected and temperance in
the | 24 | | consumption of alcoholic liquors shall be fostered and | 25 | | promoted and
to distribute copies of such rules and | 26 | | regulations to all licensees
affected thereby.
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| 1 | | (3) To call upon other administrative departments of | 2 | | the State,
county and municipal governments, county and | 3 | | city police departments and
upon prosecuting officers for | 4 | | such information and assistance as it
deems necessary in | 5 | | the performance of its duties.
| 6 | | (4) To recommend to local commissioners rules and | 7 | | regulations, not
inconsistent with the law, for the | 8 | | distribution and sale of alcoholic
liquors throughout the | 9 | | State.
| 10 | | (5) To inspect, or cause to be inspected, any
premises | 11 | | in this State
where alcoholic liquors are manufactured, | 12 | | distributed, warehoused, or
sold. Nothing in this Act
| 13 | | authorizes an agent of the Commission to inspect private
| 14 | | areas within the premises without reasonable suspicion or a | 15 | | warrant
during an inspection. "Private areas" include, but | 16 | | are not limited to, safes, personal property, and closed | 17 | | desks.
| 18 | | (5.1) Upon receipt of a complaint or upon having | 19 | | knowledge that any person
is engaged in business as a | 20 | | manufacturer, importing distributor, distributor,
or | 21 | | retailer without a license or valid license, to notify the | 22 | | local liquor
authority, file a complaint with the State's | 23 | | Attorney's Office of the county
where the incident | 24 | | occurred, or initiate an investigation with the | 25 | | appropriate
law enforcement officials.
| 26 | | (5.2) To issue a cease and desist notice to persons |
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| 1 | | shipping alcoholic
liquor
into this State from a point | 2 | | outside of this State if the shipment is in
violation of | 3 | | this Act.
| 4 | | (5.3) To receive complaints from licensees, local | 5 | | officials, law
enforcement agencies, organizations, and | 6 | | persons stating that any licensee has
been or is violating | 7 | | any provision of this Act or the rules and regulations
| 8 | | issued pursuant to this Act. Such complaints shall be in | 9 | | writing, signed and
sworn to by the person making the | 10 | | complaint, and shall state with specificity
the facts in | 11 | | relation to the alleged violation. If the Commission has
| 12 | | reasonable grounds to believe that the complaint | 13 | | substantially alleges a
violation of this Act or rules and | 14 | | regulations adopted pursuant to this Act, it
shall conduct | 15 | | an investigation. If, after conducting an investigation, | 16 | | the
Commission is satisfied that the alleged violation did | 17 | | occur, it shall proceed
with disciplinary action against | 18 | | the licensee as provided in this Act.
| 19 | | (6) To hear and determine appeals from orders of a | 20 | | local commission
in accordance with the provisions of this | 21 | | Act, as hereinafter set forth.
Hearings under this | 22 | | subsection shall be held in Springfield or Chicago,
at | 23 | | whichever location is the more convenient for the majority | 24 | | of persons
who are parties to the hearing.
| 25 | | (7) The commission shall establish uniform systems of | 26 | | accounts to be
kept by all retail licensees having more |
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| 1 | | than 4 employees, and for this
purpose the commission may | 2 | | classify all retail licensees having more
than 4 employees | 3 | | and establish a uniform system of accounts for each
class | 4 | | and prescribe the manner in which such accounts shall be | 5 | | kept.
The commission may also prescribe the forms of | 6 | | accounts to be kept by
all retail licensees having more | 7 | | than 4 employees, including but not
limited to accounts of | 8 | | earnings and expenses and any distribution,
payment, or | 9 | | other distribution of earnings or assets, and any other
| 10 | | forms, records and memoranda which in the judgment of the | 11 | | commission may
be necessary or appropriate to carry out any | 12 | | of the provisions of this
Act, including but not limited to | 13 | | such forms, records and memoranda as
will readily and | 14 | | accurately disclose at all times the beneficial
ownership | 15 | | of such retail licensed business. The accounts, forms,
| 16 | | records and memoranda shall be available at all reasonable | 17 | | times for
inspection by authorized representatives of the | 18 | | State commission or by
any local liquor control | 19 | | commissioner or his or her authorized representative.
The | 20 | | commission, may, from time to time, alter, amend or repeal, | 21 | | in whole
or in part, any uniform system of accounts, or the | 22 | | form and manner of
keeping accounts.
| 23 | | (8) In the conduct of any hearing authorized to be held | 24 | | by the
commission, to appoint, at the commission's | 25 | | discretion, hearing officers
to conduct hearings involving | 26 | | complex issues or issues that will require a
protracted |
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| 1 | | period of time to resolve, to examine, or cause to be | 2 | | examined,
under oath, any licensee, and to examine or cause | 3 | | to be examined the books and
records
of such licensee; to | 4 | | hear testimony and take proof material for its
information | 5 | | in the discharge of its duties hereunder; to administer or
| 6 | | cause to be administered oaths; for any such purpose to | 7 | | issue
subpoena or subpoenas to require the attendance of | 8 | | witnesses and the
production of books, which shall be | 9 | | effective in any part of this State, and
to adopt rules to | 10 | | implement its powers under this paragraph (8).
| 11 | | Any Circuit Court may by order duly entered,
require | 12 | | the attendance of witnesses and the production of relevant | 13 | | books
subpoenaed by the State commission and the court may | 14 | | compel
obedience to its order by proceedings for contempt.
| 15 | | (9) To investigate the administration of laws in | 16 | | relation to
alcoholic liquors in this and other states and | 17 | | any foreign countries,
and to recommend from time to time | 18 | | to the Governor and through him or
her to the legislature | 19 | | of this State, such amendments to this Act, if any, as
it | 20 | | may think desirable and as will serve to further the | 21 | | general broad
purposes contained in Section 1-2 hereof.
| 22 | | (10) To adopt such rules and regulations consistent | 23 | | with the
provisions of this Act which shall be necessary | 24 | | for the control, sale or
disposition of alcoholic liquor | 25 | | damaged as a result of an accident, wreck,
flood, fire or | 26 | | other similar occurrence.
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| 1 | | (11) To develop industry educational programs related | 2 | | to responsible
serving and selling, particularly in the | 3 | | areas of overserving consumers and
illegal underage | 4 | | purchasing and consumption of alcoholic beverages.
| 5 | | (11.1) To license persons providing education and | 6 | | training to alcohol
beverage sellers and servers for | 7 | | mandatory and non-mandatory training under the
Beverage | 8 | | Alcohol Sellers and Servers
Education and Training | 9 | | (BASSET) programs and to develop and administer a public
| 10 | | awareness program in Illinois to reduce or eliminate the | 11 | | illegal purchase and
consumption of alcoholic beverage | 12 | | products by persons under the age of 21.
Application for a | 13 | | license shall be made on forms provided by the State
| 14 | | Commission.
| 15 | | (12) To develop and maintain a repository of license | 16 | | and regulatory
information.
| 17 | | (13) On or before January 15, 1994, the Commission | 18 | | shall issue
a written report to the Governor and General | 19 | | Assembly that is to be based on a
comprehensive study of | 20 | | the impact on and implications for the State of Illinois
of | 21 | | Section 1926 of the federal Federal ADAMHA Reorganization | 22 | | Act of 1992 (Public Law
102-321). This study shall address | 23 | | the extent to which Illinois currently
complies with the | 24 | | provisions of P.L. 102-321 and the rules promulgated | 25 | | pursuant
thereto.
| 26 | | As part of its report, the Commission shall provide the |
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| 1 | | following essential
information:
| 2 | | (i) the number of retail distributors of tobacco | 3 | | products, by type and
geographic area, in the State;
| 4 | | (ii) the number of reported citations and | 5 | | successful convictions,
categorized by type and | 6 | | location of retail distributor, for violation of the
| 7 | | Prevention of Tobacco Use by Minors and Sale and | 8 | | Distribution of Tobacco Products Act and the Smokeless
| 9 | | Tobacco Limitation Act;
| 10 | | (iii) the extent and nature of organized | 11 | | educational and governmental
activities that are | 12 | | intended to promote, encourage or otherwise secure
| 13 | | compliance with any Illinois laws that prohibit the | 14 | | sale or distribution of
tobacco products to minors; and
| 15 | | (iv) the level of access and availability of | 16 | | tobacco products to
individuals under the age of 18.
| 17 | | To obtain the data necessary to comply with the | 18 | | provisions of P.L. 102-321
and the requirements of this | 19 | | report, the Commission shall conduct random,
unannounced | 20 | | inspections of a geographically and scientifically | 21 | | representative
sample of the State's retail tobacco | 22 | | distributors.
| 23 | | The Commission shall consult with the Department of | 24 | | Public Health, the
Department of Human Services, the
| 25 | | Illinois State Police and any
other executive branch | 26 | | agency, and private organizations that may have
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| 1 | | information relevant to this report.
| 2 | | The Commission may contract with the Food and Drug | 3 | | Administration of the
U.S. Department of Health and Human | 4 | | Services to conduct unannounced
investigations of Illinois | 5 | | tobacco vendors to determine compliance with federal
laws | 6 | | relating to the illegal sale of cigarettes and smokeless | 7 | | tobacco products
to persons under the age of 18.
| 8 | | (14) On or before April 30, 2008 and every 2 years
| 9 | | thereafter, the Commission shall present a written
report | 10 | | to the Governor and the General Assembly that shall
be | 11 | | based on a study of the impact of Public Act 95-634 this | 12 | | amendatory Act of
the 95th General Assembly on the business | 13 | | of soliciting,
selling, and shipping wine from inside and | 14 | | outside of this
State directly to residents of this State. | 15 | | As part of its
report, the Commission shall provide all of | 16 | | the
following information: | 17 | | (A) The amount of State excise and sales tax
| 18 | | revenues generated. | 19 | | (B) The amount of licensing fees received. | 20 | | (C) The number of cases of wine shipped from inside
| 21 | | and outside of this State directly to residents of this
| 22 | | State. | 23 | | (D) The number of alcohol compliance operations
| 24 | | conducted. | 25 | | (E) The number of winery shipper's licenses
| 26 | | issued. |
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| 1 | | (F) The number of each of the following: reported
| 2 | | violations; cease and desist notices issued by the
| 3 | | Commission; notices of violations issued by
the | 4 | | Commission and to the Department of Revenue;
and | 5 | | notices and complaints of violations to law
| 6 | | enforcement officials, including, without limitation,
| 7 | | the Illinois Attorney General and the U.S. Department
| 8 | | of Treasury's Alcohol and Tobacco Tax and Trade Bureau. | 9 | | (15) As a means to reduce the underage consumption of
| 10 | | alcoholic liquors, the Commission shall conduct
alcohol | 11 | | compliance operations to investigate whether
businesses | 12 | | that are soliciting, selling, and shipping wine
from inside | 13 | | or outside of this State directly to residents
of this | 14 | | State are licensed by this State or are selling or
| 15 | | attempting to sell wine to persons under 21 years of age in
| 16 | | violation of this Act. | 17 | | (16) The Commission shall, in addition to
notifying any | 18 | | appropriate law enforcement agency, submit
notices of | 19 | | complaints or violations of Sections 6-29 and
6-29.1 by | 20 | | persons who do not hold a winery shipper's
license under | 21 | | this amendatory Act to the Illinois Attorney General and
to | 22 | | the U.S. Department of Treasury's Alcohol and Tobacco Tax | 23 | | and Trade Bureau. | 24 | | (17) (A) A person licensed to make wine under the laws | 25 | | of another state who has a winery shipper's license under | 26 | | this amendatory Act and annually produces less than 25,000 |
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| 1 | | gallons of wine or a person who has a first-class or | 2 | | second-class wine manufacturer's license, a first-class or | 3 | | second-class wine-maker's license, or a limited wine | 4 | | manufacturer's license under this Act and annually | 5 | | produces less than 25,000 gallons of wine may make | 6 | | application to the Commission for a self-distribution | 7 | | exemption to allow the sale of not more than 5,000 gallons | 8 | | of the exemption holder's wine to retail licensees per | 9 | | year. | 10 | | (B) In the application, which shall be sworn under | 11 | | penalty of perjury, such person shall state (1) the | 12 | | date it was established; (2) its volume of production | 13 | | and sales for each year since its establishment; (3) | 14 | | its efforts to establish distributor relationships; | 15 | | (4) that a self-distribution exemption is necessary to | 16 | | facilitate the marketing of its wine; and (5) that it | 17 | | will comply with the liquor and revenue laws of the | 18 | | United States, this State, and any other state where it | 19 | | is licensed. | 20 | | (C) The Commission shall approve the application | 21 | | for a self-distribution exemption if such person: (1) | 22 | | is in compliance with State revenue and liquor laws; | 23 | | (2) is not a member of any affiliated group that | 24 | | produces more than 25,000 gallons of wine per annum or | 25 | | produces any other alcoholic liquor; (3) will not | 26 | | annually produce for sale more than 25,000 gallons of |
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| 1 | | wine; and (4) will not annually sell more than 5,000 | 2 | | gallons of its wine to retail licensees. | 3 | | (D) A self-distribution exemption holder shall | 4 | | annually certify to the Commission its production of | 5 | | wine in the previous 12 months and its anticipated | 6 | | production and sales for the next 12 months. The | 7 | | Commission may fine, suspend, or revoke a | 8 | | self-distribution exemption after a hearing if it | 9 | | finds that the exemption holder has made a material | 10 | | misrepresentation in its application, violated a | 11 | | revenue or liquor law of Illinois, exceeded production | 12 | | of 25,000 gallons of wine in any calendar year, or | 13 | | become part of an affiliated group producing more than | 14 | | 25,000 gallons of wine or any other alcoholic liquor. | 15 | | (E) Except in hearings for violations of this Act | 16 | | or Public Act 95-634 amendatory Act or a bona fide | 17 | | investigation by duly sworn law enforcement officials, | 18 | | the Commission, or its agents, the Commission shall | 19 | | maintain the production and sales information of a | 20 | | self-distribution exemption holder as confidential and | 21 | | shall not release such information to any person. | 22 | | (F) The Commission shall issue regulations | 23 | | governing self-distribution exemptions consistent with | 24 | | this Section and this Act. | 25 | | (G) Nothing in this subsection (17) shall prohibit | 26 | | a self-distribution exemption holder from entering |
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| 1 | | into or simultaneously having a distribution agreement | 2 | | with a licensed Illinois distributor. | 3 | | (H) It is the intent of this subsection (17) to | 4 | | promote and continue orderly markets. The General | 5 | | Assembly finds that in order to preserve Illinois' | 6 | | regulatory distribution system it is necessary to | 7 | | create an exception for smaller makers of wine as their | 8 | | wines are frequently adjusted in varietals, mixes, | 9 | | vintages, and taste to find and create market niches | 10 | | sometimes too small for distributor or importing | 11 | | distributor business strategies. Limited | 12 | | self-distribution rights will afford and allow smaller | 13 | | makers of wine access to the marketplace in order to | 14 | | develop a customer base without impairing the | 15 | | integrity of the 3-tier system.
| 16 | | (18) (A) A class 1 brewer licensee, who must also be | 17 | | either a licensed brewer or licensed non-resident dealer | 18 | | and annually manufacture less than 930,000 gallons of beer, | 19 | | may make application to the State Commission for a | 20 | | self-distribution exemption to allow the sale of not more | 21 | | than 232,500 gallons of the exemption holder's beer to | 22 | | retail licensees per year. | 23 | | (B) In the application, which shall be sworn under | 24 | | penalty of perjury, the class 1 brewer licensee shall | 25 | | state (1) the date it was established; (2) its volume | 26 | | of beer manufactured and sold for each year since its |
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| 1 | | establishment; (3) its efforts to establish | 2 | | distributor relationships; (4) that a | 3 | | self-distribution exemption is necessary to facilitate | 4 | | the marketing of its beer; and (5) that it will comply | 5 | | with the alcoholic beverage and revenue laws of the | 6 | | United States, this State, and any other state where it | 7 | | is licensed. | 8 | | (C) Any application submitted shall be posted on | 9 | | the State Commission's website at least 45 days prior | 10 | | to action by the State Commission. The State Commission | 11 | | shall approve the application for a self-distribution | 12 | | exemption if the class 1 brewer licensee: (1) is in | 13 | | compliance with the State, revenue, and alcoholic | 14 | | beverage laws; (2) is not a member of any affiliated | 15 | | group that manufactures manufacturers more than | 16 | | 930,000 gallons of beer per annum or produces any other | 17 | | alcoholic beverages; (3) shall not annually | 18 | | manufacture for sale more than 930,000 gallons of beer; | 19 | | (4) shall not annually sell more than 232,500 gallons | 20 | | of its beer to retail licensees; and (5) has | 21 | | relinquished any brew pub license held by the licensee, | 22 | | including any ownership interest it held in the | 23 | | licensed brew pub. | 24 | | (D) A self-distribution exemption holder shall | 25 | | annually certify to the State Commission its | 26 | | manufacture of beer during the previous 12 months and |
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| 1 | | its anticipated manufacture and sales of beer for the | 2 | | next 12 months. The State Commission may fine, suspend, | 3 | | or revoke a self-distribution exemption after a | 4 | | hearing if it finds that the exemption holder has made | 5 | | a material misrepresentation in its application, | 6 | | violated a revenue or alcoholic beverage law of | 7 | | Illinois, exceeded the manufacture of 930,000 gallons | 8 | | of beer in any calendar year or became part of an | 9 | | affiliated group manufacturing more than 930,000 | 10 | | gallons of beer or any other alcoholic beverage. | 11 | | (E) The State Commission shall issue rules and | 12 | | regulations governing self-distribution exemptions | 13 | | consistent with this Act. | 14 | | (F) Nothing in this paragraph (18) shall prohibit a | 15 | | self-distribution exemption holder from entering into | 16 | | or simultaneously having a distribution agreement with | 17 | | a licensed Illinois importing distributor or a | 18 | | distributor. If a self-distribution exemption holder | 19 | | enters into a distribution agreement and has assigned | 20 | | distribution rights to an importing distributor or | 21 | | distributor, then the self-distribution exemption | 22 | | holder's distribution rights in the assigned | 23 | | territories shall cease in a reasonable time not to | 24 | | exceed 60 days. | 25 | | (G) It is the intent of this paragraph (18) to | 26 | | promote and continue orderly markets. The General |
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| 1 | | Assembly finds that in order to preserve Illinois' | 2 | | regulatory distribution system, it is necessary to | 3 | | create an exception for smaller manufacturers in order | 4 | | to afford and allow such smaller manufacturers of beer | 5 | | access to the marketplace in order to develop a | 6 | | customer base without impairing the integrity of the | 7 | | 3-tier system. | 8 | | (b) On or before April 30, 1999, the Commission shall | 9 | | present a written
report to the Governor and the General | 10 | | Assembly that shall be based on a study
of the impact of Public | 11 | | Act 90-739 this amendatory Act of 1998 on the business of | 12 | | soliciting,
selling, and shipping
alcoholic liquor from | 13 | | outside of this State directly to residents of this
State.
| 14 | | As part of its report, the Commission shall provide the | 15 | | following
information:
| 16 | | (i) the amount of State excise and sales tax revenues | 17 | | generated as a
result of Public Act 90-739 this amendatory | 18 | | Act of 1998 ;
| 19 | | (ii) the amount of licensing fees received as a result | 20 | | of Public Act 90-739 this amendatory
Act of 1998 ;
| 21 | | (iii) the number of reported violations, the number of | 22 | | cease and desist
notices issued by the Commission, the | 23 | | number of notices of violations issued
to the Department of | 24 | | Revenue, and the number of notices and complaints of
| 25 | | violations to law enforcement officials.
| 26 | | (Source: P.A. 98-401, eff. 8-16-13; 98-939, eff. 7-1-15; |
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| 1 | | 98-941, eff. 1-1-15; 99-78, eff. 7-20-15; 99-448, eff. 8-24-15; | 2 | | revised 9-13-16.)
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.
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