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Full Text of SB3022  100th General Assembly

SB3022eng 100TH GENERAL ASSEMBLY

  
  
  

 


 
SB3022 EngrossedLRB100 18964 RPS 34214 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 Executive Reorganization Implementation Act
5is amended by changing Section 3.1 as follows:
 
6    (15 ILCS 15/3.1)  (from Ch. 127, par. 1803.1)
7    Sec. 3.1. "Agency directly responsible to the Governor" or
8"agency" means any office, officer, division, or part thereof,
9and any other office, nonelective officer, department,
10division, bureau, board, or commission in the executive branch
11of State government, except that it does not apply to any
12agency whose primary function is service to the General
13Assembly or the Judicial Branch of State government, or to any
14agency administered by the Attorney General, Secretary of
15State, State Comptroller or State Treasurer. In addition the
16term does not apply to the following agencies created by law
17with the primary responsibility of exercising regulatory or
18adjudicatory functions independently of the Governor:
19    (1) the State Board of Elections;
20    (2) the State Board of Education;
21    (3) the Illinois Commerce Commission;
22    (4) the Illinois Workers' Compensation Commission;
23    (5) the Civil Service Commission;

 

 

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1    (6) the Fair Employment Practices Commission;
2    (7) the Pollution Control Board;
3    (8) the Department of State Police Merit Board;
4    (9) the Illinois Racing Board;
5    (10) the Illinois Power Agency; .
6    (11) the Illinois Liquor Control Commission.
7(Source: P.A. 96-796, eff. 10-29-09; 97-618, eff. 10-26-11.)
 
8    Section 10. The Liquor Control Act of 1934 is amended by
9changing Sections 3-2, 3-12, and 8-5 and by adding Section 3-20
10as follows:
 
11    (235 ILCS 5/3-2)  (from Ch. 43, par. 98)
12    Sec. 3-2. Immediately, or soon as may be after the
13effective date of this Act, the Governor shall appoint 3
14members of the commission, one of whom shall be designated as
15"Chairman", one to hold office for a period of 2 years, one to
16hold office for a period of 4 years and one to hold office for a
17period of 6 years. Immediately, or as soon as may be after the
18effective date of this amendatory Act of 1983, the Governor
19shall appoint 2 members to the commission to the offices
20created by this amendatory Act of 1983, one for an initial term
21expiring the third Monday in January of 1986 and one for an
22initial term expiring the third Monday in January of 1988. At
23the expiration of the term of any such commissioner the
24Governor shall reappoint said commissioner or appoint a

 

 

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1successor of said commissioner for a period of 6 years. The
2Governor shall have power to fill vacancies in the office of
3any commissioner.
4    Notwithstanding any provision of this Section to the
5contrary, the term of office of each member of the commission
6is abolished on the effective date of this amendatory Act of
71985, but the incumbent members shall continue to exercise all
8of the powers and be subject to all of the duties of members of
9the commission until their respective successors are appointed
10and qualified. The Governor shall appoint 2 members of the
11commission whose terms of office shall expire on February 1,
121986, 2 members of the commission whose terms of office shall
13expire on February 1, 1988, and one member of the commission
14whose term shall expire on February 1, 1990. Their respective
15successors shall be appointed for terms of 6 years from the
16first day of February of the year of appointment. Each member
17shall serve until his successor is appointed and qualified.
18    The initial term of both of the 2 additional members
19appointed pursuant to this amendatory Act of the 91st General
20Assembly shall expire on February 1, 2006. Their respective
21successors shall be appointed for terms of 6 years from the
22first day of February of the year of appointment. Each member
23shall serve until his or her successor is appointed and
24qualified.
25    Notwithstanding any action taken to fill the office on an
26acting, temporary, or other basis, the office of Executive

 

 

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1Director of the Commission shall be vacant on January 1, 2019.
2On and after January 1, 2019, the Governor shall appoint the
3Executive Director of the Commission for a 4-year term, with
4the advice and consent of the Senate.
5(Source: P.A. 91-798, eff. 7-9-00.)
 
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,
9functions, 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
24    days prior to such violation. Except in the case of an
25    action taken pursuant to a violation of Section 6-3, 6-5,

 

 

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

 

 

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1    foreign object in it or serving from a bottle of alcoholic
2    liquor with a foreign object in it shall be the destruction
3    of that bottle of alcoholic liquor for the first 10 bottles
4    so sold or served from by the licensee. For the eleventh
5    bottle of alcoholic liquor and for each third bottle
6    thereafter sold or served from by the licensee with a
7    foreign object in it, the maximum penalty that may be
8    imposed on the licensee is the destruction of the bottle of
9    alcoholic liquor and a fine of up to $50.
10        Any notice issued by the State Commission to a licensee
11    for a violation of this Act or any notice with respect to
12    settlement or offer in compromise shall include the field
13    report, photographs, and any other supporting
14    documentation necessary to reasonably inform the licensee
15    of the nature and extent of the violation or the conduct
16    alleged to have occurred. The failure to include such
17    required documentation shall result in the dismissal of the
18    action.
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 ADAMHA Reorganization Act of
22    1992 (Public Law 102-321). This study shall address the
23    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 on the
12    business of soliciting, selling, and shipping wine from
13    inside and outside of this State directly to residents of
14    this State. As part of its report, the Commission shall
15    provide all of the following information:
16            (A) The amount of State excise and sales tax
17        revenues generated.
18            (B) The amount of licensing fees received.
19            (C) The number of cases of wine shipped from inside
20        and outside of this State directly to residents of this
21        State.
22            (D) The number of alcohol compliance operations
23        conducted.
24            (E) The number of winery shipper's licenses
25        issued.
26            (F) The number of each of the following: reported

 

 

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1        violations; cease and desist notices issued by the
2        Commission; notices of violations issued by the
3        Commission and to the Department of Revenue; and
4        notices and complaints of violations to law
5        enforcement officials, including, without limitation,
6        the Illinois Attorney General and the U.S. Department
7        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
8        (15) As a means to reduce the underage consumption of
9    alcoholic liquors, the Commission shall conduct alcohol
10    compliance operations to investigate whether businesses
11    that are soliciting, selling, and shipping wine from inside
12    or outside of this State directly to residents of this
13    State are licensed by this State or are selling or
14    attempting to sell wine to persons under 21 years of age in
15    violation of this Act.
16        (16) The Commission shall, in addition to notifying any
17    appropriate law enforcement agency, submit notices of
18    complaints or violations of Sections 6-29 and 6-29.1 by
19    persons who do not hold a winery shipper's license under
20    this Act to the Illinois Attorney General and to the U.S.
21    Department of Treasury's Alcohol and Tobacco Tax and Trade
22    Bureau.
23        (17)(A) A person licensed to make wine under the laws
24    of another state who has a winery shipper's license under
25    this Act and annually produces less than 25,000 gallons of
26    wine or a person who has a first-class or second-class wine

 

 

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1    manufacturer's license, a first-class or second-class
2    wine-maker's license, or a limited wine manufacturer's
3    license under this Act and annually produces less than
4    25,000 gallons of wine may make application to the
5    Commission for a self-distribution exemption to allow the
6    sale of not more than 5,000 gallons of the exemption
7    holder's wine to retail licensees per year.
8        (B) In the application, which shall be sworn under
9    penalty of perjury, such person shall state (1) the date it
10    was established; (2) its volume of production and sales for
11    each year since its establishment; (3) its efforts to
12    establish distributor relationships; (4) that a
13    self-distribution exemption is necessary to facilitate the
14    marketing of its wine; and (5) that it will comply with the
15    liquor and revenue laws of the United States, this State,
16    and any other state where it is licensed.
17        (C) The Commission shall approve the application for a
18    self-distribution exemption if such person: (1) is in
19    compliance with State revenue and liquor laws; (2) is not a
20    member of any affiliated group that produces more than
21    25,000 gallons of wine per annum or produces any other
22    alcoholic liquor; (3) will not annually produce for sale
23    more than 25,000 gallons of wine; and (4) will not annually
24    sell more than 5,000 gallons of its wine to retail
25    licensees.
26        (D) A self-distribution exemption holder shall

 

 

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1    annually certify to the Commission its production of wine
2    in the previous 12 months and its anticipated production
3    and sales for the next 12 months. The Commission may fine,
4    suspend, or revoke a self-distribution exemption after a
5    hearing if it finds that the exemption holder has made a
6    material misrepresentation in its application, violated a
7    revenue or liquor law of Illinois, exceeded production of
8    25,000 gallons of wine in any calendar year, or become part
9    of an affiliated group producing more than 25,000 gallons
10    of wine or any other alcoholic liquor.
11        (E) Except in hearings for violations of this Act or
12    Public Act 95-634 or a bona fide investigation by duly
13    sworn law enforcement officials, the Commission, or its
14    agents, the Commission shall maintain the production and
15    sales information of a self-distribution exemption holder
16    as confidential and shall not release such information to
17    any person.
18        (F) The Commission shall issue regulations governing
19    self-distribution exemptions consistent with this Section
20    and this Act.
21        (G) Nothing in this subsection (17) shall prohibit a
22    self-distribution exemption holder from entering into or
23    simultaneously having a distribution agreement with a
24    licensed Illinois distributor.
25        (H) It is the intent of this subsection (17) to promote
26    and continue orderly markets. The General Assembly finds

 

 

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1    that in order to preserve Illinois' regulatory
2    distribution system it is necessary to create an exception
3    for smaller makers of wine as their wines are frequently
4    adjusted in varietals, mixes, vintages, and taste to find
5    and create market niches sometimes too small for
6    distributor or importing distributor business strategies.
7    Limited self-distribution rights will afford and allow
8    smaller makers of wine access to the marketplace in order
9    to develop a customer base without impairing the integrity
10    of the 3-tier system.
11        (18)(A) A class 1 brewer licensee, who must also be
12    either a licensed brewer or licensed non-resident dealer
13    and annually manufacture less than 930,000 gallons of beer,
14    may make application to the State Commission for a
15    self-distribution exemption to allow the sale of not more
16    than 232,500 gallons of the exemption holder's beer to
17    retail licensees per year.
18        (B) In the application, which shall be sworn under
19    penalty of perjury, the class 1 brewer licensee shall state
20    (1) the date it was established; (2) its volume of beer
21    manufactured and sold for each year since its
22    establishment; (3) its efforts to establish distributor
23    relationships; (4) that a self-distribution exemption is
24    necessary to facilitate the marketing of its beer; and (5)
25    that it will comply with the alcoholic beverage and revenue
26    laws of the United States, this State, and any other state

 

 

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1    where it is licensed.
2        (C) Any application submitted shall be posted on the
3    State Commission's website at least 45 days prior to action
4    by the State Commission. The State Commission shall approve
5    the application for a self-distribution exemption if the
6    class 1 brewer licensee: (1) is in compliance with the
7    State, revenue, and alcoholic beverage laws; (2) is not a
8    member of any affiliated group that manufactures more than
9    930,000 gallons of beer per annum or produces any other
10    alcoholic beverages; (3) shall not annually manufacture
11    for sale more than 930,000 gallons of beer; (4) shall not
12    annually sell more than 232,500 gallons of its beer to
13    retail licensees; and (5) has relinquished any brew pub
14    license held by the licensee, including any ownership
15    interest it held in the licensed brew pub.
16        (D) A self-distribution exemption holder shall
17    annually certify to the State Commission its manufacture of
18    beer during the previous 12 months and its anticipated
19    manufacture and sales of beer for the next 12 months. The
20    State Commission may fine, suspend, or revoke a
21    self-distribution exemption after a hearing if it finds
22    that the exemption holder has made a material
23    misrepresentation in its application, violated a revenue
24    or alcoholic beverage law of Illinois, exceeded the
25    manufacture of 930,000 gallons of beer in any calendar year
26    or became part of an affiliated group manufacturing more

 

 

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1    than 930,000 gallons of beer or any other alcoholic
2    beverage.
3        (E) The State Commission shall issue rules and
4    regulations governing self-distribution exemptions
5    consistent with this Act.
6        (F) Nothing in this paragraph (18) shall prohibit a
7    self-distribution exemption holder from entering into or
8    simultaneously having a distribution agreement with a
9    licensed Illinois importing distributor or a distributor.
10    If a self-distribution exemption holder enters into a
11    distribution agreement and has assigned distribution
12    rights to an importing distributor or distributor, then the
13    self-distribution exemption holder's distribution rights
14    in the assigned territories shall cease in a reasonable
15    time not to exceed 60 days.
16        (G) It is the intent of this paragraph (18) to promote
17    and continue orderly markets. The General Assembly finds
18    that in order to preserve Illinois' regulatory
19    distribution system, it is necessary to create an exception
20    for smaller manufacturers in order to afford and allow such
21    smaller manufacturers of beer access to the marketplace in
22    order to develop a customer base without impairing the
23    integrity of the 3-tier system.
24    (b) On or before April 30, 1999, the Commission shall
25present a written report to the Governor and the General
26Assembly that shall be based on a study of the impact of Public

 

 

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1Act 90-739 on the business of soliciting, selling, and shipping
2alcoholic liquor from outside of this State directly to
3residents of this State.
4    As part of its report, the Commission shall provide the
5following information:
6        (i) the amount of State excise and sales tax revenues
7    generated as a result of Public Act 90-739;
8        (ii) the amount of licensing fees received as a result
9    of Public Act 90-739;
10        (iii) the number of reported violations, the number of
11    cease and desist notices issued by the Commission, the
12    number of notices of violations issued to the Department of
13    Revenue, and the number of notices and complaints of
14    violations to law enforcement officials.
15(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
16100-134, eff. 8-18-17; 100-201, eff. 8-18-17.)
 
17    (235 ILCS 5/3-20 new)
18    Sec. 3-20. State Commission; separation from the
19Department of Revenue.
20    (a) Executive Order No. 2003-9 is hereby superseded by this
21amendatory Act of the 100th General Assembly to the extent that
22Executive Order No. 2003-9 transferred clerks, management and
23staff support, employees, and other resources from the State
24Commission to the Department of Revenue.
25    (b) To the extent that Executive Order No. 2003-9

 

 

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1transferred personnel to the Department of Revenue from the
2State Commission, those personnel shall be transferred to the
3State Commission. The status and rights of such employees under
4the Personnel Code shall not be affected by the transfer. The
5rights of the employees and the State of Illinois and its
6agencies under the Personnel Code and applicable collective
7bargaining agreements or under any pension, retirement, or
8annuity plan shall not be affected by this amendatory Act of
9the 100th General Assembly. To the extent that an employee
10performs duties for the State Commission and the Department of
11Revenue itself or any other division or agency within the
12Department of Revenue, that employee shall be transferred at
13the Governor's discretion.
14    (c) All books, records, papers, documents, property (real
15and personal), contracts, causes of action, and pending
16business pertaining to the powers, duties, rights, and
17responsibilities transferred by this amendatory Act of the
18100th General Assembly from the Department of Revenue to the
19State Commission, including, but not limited to, material in
20electronic or magnetic format and necessary computer hardware
21and software, shall be transferred to the State Commission.
22    (d) All unexpended appropriations and balances and other
23funds available for use by the Department of Revenue to operate
24the State Commission shall be transferred for use by the State
25Commission. Unexpended balances so transferred shall be
26expended only for the purpose for which the appropriations were

 

 

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1originally made.
2    (e) The powers, duties, rights, and responsibilities
3transferred from the Department of Revenue by this amendatory
4Act of the 100th General Assembly shall be vested in and shall
5be exercised by the State Commission.
6    (f) Whenever reports or notices are now required to be made
7or given or papers or documents furnished or served by any
8person to or upon the Department of Revenue in connection with
9any of the powers, duties, rights, and responsibilities
10transferred by this amendatory Act of the 100th General
11Assembly, the same shall be made, given, furnished, or served
12in the same manner to or upon the State Commission.
13    (g) Any rules of the Department of Revenue that relate to
14the functions transferred from the State Commission to the
15Department of Revenue by Executive Order No. 2003-9 that are in
16full force on the effective date of this amendatory Act of the
17100th General Assembly shall become the rules of the State
18Commission. This amendatory Act of the 100th General Assembly
19does not affect the legality of any such rules in the Illinois
20Administrative Code.
21    Any proposed rules filed with the Secretary of State by the
22Department of Revenue that are pending in the rulemaking
23process on the effective date of this amendatory Act of the
24100th General Assembly and pertain to the functions transferred
25from the State Commission to the Department of Revenue by
26Executive Order No. 2003-9 shall be deemed to have been filed

 

 

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1by the State Commission. As soon as practicable hereafter, the
2State Commission shall revise and clarify the rules transferred
3to it under this amendatory Act of the 100th General Assembly
4to reflect the reorganization of powers, duties, rights, and
5responsibilities affected by this amendatory Act of the 100th
6General Assembly, using the procedures for recodification of
7rules available under the Illinois Administrative Procedure
8Act, except that existing title, part, and section numbering
9for the affected rules may be retained.
 
10    (235 ILCS 5/8-5)  (from Ch. 43, par. 163a)
11    Sec. 8-5. As soon as practicable after any return is filed
12but not before 90 days after the return is filed, or any
13amendments to that return, whichever is later, the Department
14shall examine such return or amended return and shall correct
15such return according to its best judgment and information,
16which return so corrected by the Department shall be prima
17facie correct and shall be prima facie evidence of the
18correctness of the amount of tax due, as shown therein. Instead
19of requiring the licensee to file an amended return, the
20Department may simply notify the licensee of the correction or
21corrections it has made. Proof of such correction by the
22Department, or of the determination of the amount of tax due as
23provided in Sections 8-4 and 8-10, may be made at any hearing
24before the Department or in any legal proceeding by a
25reproduced copy of the Department's record relating thereto in

 

 

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1the name of the Department under the certificate of the
2Director of Revenue. Such reproduced copy shall, without
3further proof, be admitted into evidence before the Department
4or in any legal proceeding and shall be prima facie proof of
5the correctness of the amount of tax due, as shown therein. If
6the return so corrected by the Department discloses the sale or
7use, by a licensed manufacturer or importing distributor, of
8alcoholic liquors as to which the tax provided for in this
9Article should have been paid, but has not been paid, in excess
10of the alcoholic liquors reported as being taxable by the
11licensee, and as to which the proper tax was paid the
12Department shall notify the licensee that it shall issue the
13taxpayer a notice of tax liability for the amount of tax
14claimed by the Department to be due, together with penalties at
15the rates prescribed by Sections 3-3, 3-5 and 3-6 of the
16Uniform Penalty and Interest Act, which amount of tax shall be
17equivalent to the amount of tax which, at the prescribed rate
18per gallon, should have been paid with respect to the alcoholic
19liquors disposed of in excess of those reported as being
20taxable. In a case where no return has been filed, the
21Department shall determine the amount of tax due according to
22its best judgment and information and shall issue the taxpayer
23a notice of tax liability for the amount of tax claimed by the
24Department to be due as herein provided together with penalties
25at the rates prescribed by Sections 3-3, 3-5 and 3-6 of the
26Uniform Penalty and Interest Act. If, in administering the

 

 

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1provisions of this Act, a comparison of a licensee's return or
2returns with the books, records and physical inventories of
3such licensee discloses a deficiency which cannot be allocated
4by the Department to a particular month or months, the
5Department shall issue the taxpayer a notice of tax liability
6for the amount of tax claimed by the Department to be due for a
7given period, but without any obligation upon the Department to
8allocate such deficiency to any particular month or months,
9together with penalties at the rates prescribed by Sections
103-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, which
11amount of tax shall be equivalent to the amount of tax which,
12at the prescribed rate per gallon, should have been paid with
13respect to the alcoholic liquors disposed of in excess of those
14reported being taxable, with the tax thereon having been paid
15under which circumstances the aforesaid notice of tax liability
16shall be prima facie correct and shall be prima facie evidence
17of the correctness of the amount of tax due as shown therein;
18and proof of such correctness may be made in accordance with,
19and the admissibility of a reproduced copy of such notice of
20the Department's notice of tax liability shall be governed by,
21all the provisions of this Act applicable to corrected returns.
22    If the licensee dies or becomes a person under legal
23disability at any time before the Department issues its notice
24of tax liability, such notice shall be issued to the
25administrator, executor or other legal representative, as
26such, of the deceased or licensee who is under legal

 

 

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1disability.
2    If such licensee or legal representative, within 60 days
3after such notice of tax liability, files a protest to such
4notice of tax liability and requests a hearing thereon, the
5Department shall give at least 7 days' notice to such licensee
6or legal representative, as the case may be, of the time and
7place fixed for such hearing and shall hold a hearing in
8conformity with the provisions of this Act, and pursuant
9thereto shall issue a final assessment to such licensee or
10legal representative for the amount found to be due as a result
11of such hearing.
12    If a protest to the notice of tax liability and a request
13for a hearing thereon is not filed within 60 days after such
14notice of tax liability, such notice of tax liability shall
15become final without the necessity of a final assessment being
16issued and shall be deemed to be a final assessment.
17    In case of failure to pay the tax, or any portion thereof,
18or any penalty provided for herein, when due, the Department
19may recover the amount of such tax, or portion thereof, or
20penalty in a civil action; or if the licensee dies or becomes a
21person under legal disability, by filing a claim therefor
22against his or her estate; provided that no such claim shall be
23filed against the estate of any deceased or of the licensee who
24is under legal disability for any tax or penalty or portion
25thereof except in the manner prescribed and within the time
26limited by the Probate Act of 1975, as amended.

 

 

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1    The collection of any such tax and penalty, or either, by
2any means provided for herein, shall not be a bar to any
3prosecution under this Act.
4    In addition to any other penalty provided for in this
5Article, any licensee who fails to pay any tax within the time
6required by this Article shall be subject to assessment of
7penalties and interest at rates set forth in the Uniform
8Penalty and Interest Act.
9(Source: P.A. 87-205; 87-879.)
 
10    Section 99. Effective date. This Act takes effect January
111, 2019, except that this Section and changes to Section 3-12
12of the Liquor Control Act of 1934 take effect upon becoming
13law.