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| Public Act 100-0134
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| HB2878 Enrolled | LRB100 09902 RPS 20073 b |
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AN ACT concerning liquor.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Liquor Control Act of 1934 is amended by |
changing Section 3-12 as follows:
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(235 ILCS 5/3-12)
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Sec. 3-12. Powers and duties of State Commission.
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(a) The State commission shall have the following powers, |
functions, and
duties:
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(1) To receive applications and to issue licenses to |
manufacturers,
foreign importers, importing distributors, |
distributors, non-resident dealers,
on premise consumption |
retailers, off premise sale retailers, special event
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retailer licensees, special use permit licenses, auction |
liquor licenses, brew
pubs, caterer retailers, |
non-beverage users, railroads, including owners and
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lessees of sleeping, dining and cafe cars, airplanes, |
boats, brokers, and wine
maker's premises licensees in |
accordance with the provisions of this Act, and
to suspend |
or revoke such licenses upon the State commission's |
determination,
upon notice after hearing, that a licensee |
has violated any provision of this
Act or any rule or |
regulation issued pursuant thereto and in effect for 30 |
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days
prior to such violation. Except in the case of an |
action taken pursuant to a
violation of Section 6-3, 6-5, |
or 6-9, any action by the State Commission to
suspend or |
revoke a licensee's license may be limited to the license |
for the
specific premises where the violation occurred.
An |
action for a violation of this Act shall be commenced by |
the State Commission within 2 years after the date the |
State Commission becomes aware of the violation.
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In lieu of suspending or revoking a license, the |
commission may impose
a fine, upon the State commission's |
determination and notice after hearing,
that a licensee has |
violated any provision of this Act or any rule or
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regulation issued pursuant thereto and in effect for 30 |
days prior to such
violation. |
For the purpose of this paragraph (1), when determining |
multiple violations for the sale of alcohol to a person |
under the age of 21, a second or subsequent violation for |
the sale of alcohol to a person under the age of 21 shall |
only be considered if it was committed within 5 years after |
the date when a prior violation for the sale of alcohol to |
a person under the age of 21 was committed. |
The fine imposed under this paragraph may not exceed |
$500 for each
violation. Each day that the activity, which |
gave rise to the original fine,
continues is a separate |
violation. The maximum fine that may be levied against
any |
licensee, for the period of the license, shall not exceed |
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$20,000.
The maximum penalty that may be imposed on a |
licensee for selling a bottle of
alcoholic liquor with a |
foreign object in it or serving from a bottle of
alcoholic |
liquor with a foreign object in it shall be the destruction |
of that
bottle of alcoholic liquor for the first 10 bottles |
so sold or served from by
the licensee. For the eleventh |
bottle of alcoholic liquor and for each third
bottle |
thereafter sold or served from by the licensee with a |
foreign object in
it, the maximum penalty that may be |
imposed on the licensee is the destruction
of the bottle of |
alcoholic liquor and a fine of up to $50.
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Any notice issued by the State Commission to a licensee |
for a violation of this Act or any notice with respect to |
settlement or offer in compromise shall include the field |
report, photographs, and any other supporting |
documentation necessary to reasonably inform the licensee |
of the nature and extent of the violation or the conduct |
alleged to have occurred. |
(2) To adopt such rules and regulations consistent with |
the
provisions of this Act which shall be necessary to |
carry on its
functions and duties to the end that the |
health, safety and welfare of
the People of the State of |
Illinois shall be protected and temperance in
the |
consumption of alcoholic liquors shall be fostered and |
promoted and
to distribute copies of such rules and |
regulations to all licensees
affected thereby.
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(3) To call upon other administrative departments of |
the State,
county and municipal governments, county and |
city police departments and
upon prosecuting officers for |
such information and assistance as it
deems necessary in |
the performance of its duties.
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(4) To recommend to local commissioners rules and |
regulations, not
inconsistent with the law, for the |
distribution and sale of alcoholic
liquors throughout the |
State.
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(5) To inspect, or cause to be inspected, any
premises |
in this State
where alcoholic liquors are manufactured, |
distributed, warehoused, or
sold. Nothing in this Act
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authorizes an agent of the Commission to inspect private
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areas within the premises without reasonable suspicion or a |
warrant
during an inspection. "Private areas" include, but |
are not limited to, safes, personal property, and closed |
desks.
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(5.1) Upon receipt of a complaint or upon having |
knowledge that any person
is engaged in business as a |
manufacturer, importing distributor, distributor,
or |
retailer without a license or valid license, to notify the |
local liquor
authority, file a complaint with the State's |
Attorney's Office of the county
where the incident |
occurred, or initiate an investigation with the |
appropriate
law enforcement officials.
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(5.2) To issue a cease and desist notice to persons |
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shipping alcoholic
liquor
into this State from a point |
outside of this State if the shipment is in
violation of |
this Act.
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(5.3) To receive complaints from licensees, local |
officials, law
enforcement agencies, organizations, and |
persons stating that any licensee has
been or is violating |
any provision of this Act or the rules and regulations
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issued pursuant to this Act. Such complaints shall be in |
writing, signed and
sworn to by the person making the |
complaint, and shall state with specificity
the facts in |
relation to the alleged violation. If the Commission has
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reasonable grounds to believe that the complaint |
substantially alleges a
violation of this Act or rules and |
regulations adopted pursuant to this Act, it
shall conduct |
an investigation. If, after conducting an investigation, |
the
Commission is satisfied that the alleged violation did |
occur, it shall proceed
with disciplinary action against |
the licensee as provided in this Act.
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(6) To hear and determine appeals from orders of a |
local commission
in accordance with the provisions of this |
Act, as hereinafter set forth.
Hearings under this |
subsection shall be held in Springfield or Chicago,
at |
whichever location is the more convenient for the majority |
of persons
who are parties to the hearing.
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(7) The commission shall establish uniform systems of |
accounts to be
kept by all retail licensees having more |
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than 4 employees, and for this
purpose the commission may |
classify all retail licensees having more
than 4 employees |
and establish a uniform system of accounts for each
class |
and prescribe the manner in which such accounts shall be |
kept.
The commission may also prescribe the forms of |
accounts to be kept by
all retail licensees having more |
than 4 employees, including but not
limited to accounts of |
earnings and expenses and any distribution,
payment, or |
other distribution of earnings or assets, and any other
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forms, records and memoranda which in the judgment of the |
commission may
be necessary or appropriate to carry out any |
of the provisions of this
Act, including but not limited to |
such forms, records and memoranda as
will readily and |
accurately disclose at all times the beneficial
ownership |
of such retail licensed business. The accounts, forms,
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records and memoranda shall be available at all reasonable |
times for
inspection by authorized representatives of the |
State commission or by
any local liquor control |
commissioner or his or her authorized representative.
The |
commission, may, from time to time, alter, amend or repeal, |
in whole
or in part, any uniform system of accounts, or the |
form and manner of
keeping accounts.
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(8) In the conduct of any hearing authorized to be held |
by the
commission, to appoint, at the commission's |
discretion, hearing officers
to conduct hearings involving |
complex issues or issues that will require a
protracted |
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period of time to resolve, to examine, or cause to be |
examined,
under oath, any licensee, and to examine or cause |
to be examined the books and
records
of such licensee; to |
hear testimony and take proof material for its
information |
in the discharge of its duties hereunder; to administer or
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cause to be administered oaths; for any such purpose to |
issue
subpoena or subpoenas to require the attendance of |
witnesses and the
production of books, which shall be |
effective in any part of this State, and
to adopt rules to |
implement its powers under this paragraph (8).
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Any Circuit Court may by order duly entered,
require |
the attendance of witnesses and the production of relevant |
books
subpoenaed by the State commission and the court may |
compel
obedience to its order by proceedings for contempt.
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(9) To investigate the administration of laws in |
relation to
alcoholic liquors in this and other states and |
any foreign countries,
and to recommend from time to time |
to the Governor and through him or
her to the legislature |
of this State, such amendments to this Act, if any, as
it |
may think desirable and as will serve to further the |
general broad
purposes contained in Section 1-2 hereof.
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(10) To adopt such rules and regulations consistent |
with the
provisions of this Act which shall be necessary |
for the control, sale or
disposition of alcoholic liquor |
damaged as a result of an accident, wreck,
flood, fire or |
other similar occurrence.
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(11) To develop industry educational programs related |
to responsible
serving and selling, particularly in the |
areas of overserving consumers and
illegal underage |
purchasing and consumption of alcoholic beverages.
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(11.1) To license persons providing education and |
training to alcohol
beverage sellers and servers for |
mandatory and non-mandatory training under the
Beverage |
Alcohol Sellers and Servers
Education and Training |
(BASSET) programs and to develop and administer a public
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awareness program in Illinois to reduce or eliminate the |
illegal purchase and
consumption of alcoholic beverage |
products by persons under the age of 21.
Application for a |
license shall be made on forms provided by the State
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Commission.
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(12) To develop and maintain a repository of license |
and regulatory
information.
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(13) On or before January 15, 1994, the Commission |
shall issue
a written report to the Governor and General |
Assembly that is to be based on a
comprehensive study of |
the impact on and implications for the State of Illinois
of |
Section 1926 of the federal Federal ADAMHA Reorganization |
Act of 1992 (Public Law
102-321). This study shall address |
the extent to which Illinois currently
complies with the |
provisions of P.L. 102-321 and the rules promulgated |
pursuant
thereto.
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As part of its report, the Commission shall provide the |
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following essential
information:
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(i) the number of retail distributors of tobacco |
products, by type and
geographic area, in the State;
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(ii) the number of reported citations and |
successful convictions,
categorized by type and |
location of retail distributor, for violation of the
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Prevention of Tobacco Use by Minors and Sale and |
Distribution of Tobacco Products Act and the Smokeless
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Tobacco Limitation Act;
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(iii) the extent and nature of organized |
educational and governmental
activities that are |
intended to promote, encourage or otherwise secure
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compliance with any Illinois laws that prohibit the |
sale or distribution of
tobacco products to minors; and
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(iv) the level of access and availability of |
tobacco products to
individuals under the age of 18.
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To obtain the data necessary to comply with the |
provisions of P.L. 102-321
and the requirements of this |
report, the Commission shall conduct random,
unannounced |
inspections of a geographically and scientifically |
representative
sample of the State's retail tobacco |
distributors.
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The Commission shall consult with the Department of |
Public Health, the
Department of Human Services, the
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Illinois State Police and any
other executive branch |
agency, and private organizations that may have
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information relevant to this report.
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The Commission may contract with the Food and Drug |
Administration of the
U.S. Department of Health and Human |
Services to conduct unannounced
investigations of Illinois |
tobacco vendors to determine compliance with federal
laws |
relating to the illegal sale of cigarettes and smokeless |
tobacco products
to persons under the age of 18.
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(14) On or before April 30, 2008 and every 2 years
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thereafter, the Commission shall present a written
report |
to the Governor and the General Assembly that shall
be |
based on a study of the impact of Public Act 95-634 this |
amendatory Act of
the 95th General Assembly on the business |
of soliciting,
selling, and shipping wine from inside and |
outside of this
State directly to residents of this State. |
As part of its
report, the Commission shall provide all of |
the
following information: |
(A) The amount of State excise and sales tax
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revenues generated. |
(B) The amount of licensing fees received. |
(C) The number of cases of wine shipped from inside
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and outside of this State directly to residents of this
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State. |
(D) The number of alcohol compliance operations
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conducted. |
(E) The number of winery shipper's licenses
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issued. |
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(F) The number of each of the following: reported
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violations; cease and desist notices issued by the
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Commission; notices of violations issued by
the |
Commission and to the Department of Revenue;
and |
notices and complaints of violations to law
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enforcement officials, including, without limitation,
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the Illinois Attorney General and the U.S. Department
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of Treasury's Alcohol and Tobacco Tax and Trade Bureau. |
(15) As a means to reduce the underage consumption of
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alcoholic liquors, the Commission shall conduct
alcohol |
compliance operations to investigate whether
businesses |
that are soliciting, selling, and shipping wine
from inside |
or outside of this State directly to residents
of this |
State are licensed by this State or are selling or
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attempting to sell wine to persons under 21 years of age in
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violation of this Act. |
(16) The Commission shall, in addition to
notifying any |
appropriate law enforcement agency, submit
notices of |
complaints or violations of Sections 6-29 and
6-29.1 by |
persons who do not hold a winery shipper's
license under |
this amendatory Act to the Illinois Attorney General and
to |
the U.S. Department of Treasury's Alcohol and Tobacco Tax |
and Trade Bureau. |
(17) (A) A person licensed to make wine under the laws |
of another state who has a winery shipper's license under |
this amendatory Act and annually produces less than 25,000 |
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gallons of wine or a person who has a first-class or |
second-class wine manufacturer's license, a first-class or |
second-class wine-maker's license, or a limited wine |
manufacturer's license under this Act and annually |
produces less than 25,000 gallons of wine may make |
application to the Commission for a self-distribution |
exemption to allow the sale of not more than 5,000 gallons |
of the exemption holder's wine to retail licensees per |
year. |
(B) In the application, which shall be sworn under |
penalty of perjury, such person shall state (1) the |
date it was established; (2) its volume of production |
and sales for each year since its establishment; (3) |
its efforts to establish distributor relationships; |
(4) that a self-distribution exemption is necessary to |
facilitate the marketing of its wine; and (5) that it |
will comply with the liquor and revenue laws of the |
United States, this State, and any other state where it |
is licensed. |
(C) The Commission shall approve the application |
for a self-distribution exemption if such person: (1) |
is in compliance with State revenue and liquor laws; |
(2) is not a member of any affiliated group that |
produces more than 25,000 gallons of wine per annum or |
produces any other alcoholic liquor; (3) will not |
annually produce for sale more than 25,000 gallons of |
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wine; and (4) will not annually sell more than 5,000 |
gallons of its wine to retail licensees. |
(D) A self-distribution exemption holder shall |
annually certify to the Commission its production of |
wine in the previous 12 months and its anticipated |
production and sales for the next 12 months. The |
Commission may fine, suspend, or revoke a |
self-distribution exemption after a hearing if it |
finds that the exemption holder has made a material |
misrepresentation in its application, violated a |
revenue or liquor law of Illinois, exceeded production |
of 25,000 gallons of wine in any calendar year, or |
become part of an affiliated group producing more than |
25,000 gallons of wine or any other alcoholic liquor. |
(E) Except in hearings for violations of this Act |
or Public Act 95-634 amendatory Act or a bona fide |
investigation by duly sworn law enforcement officials, |
the Commission, or its agents, the Commission shall |
maintain the production and sales information of a |
self-distribution exemption holder as confidential and |
shall not release such information to any person. |
(F) The Commission shall issue regulations |
governing self-distribution exemptions consistent with |
this Section and this Act. |
(G) Nothing in this subsection (17) shall prohibit |
a self-distribution exemption holder from entering |
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into or simultaneously having a distribution agreement |
with a licensed Illinois distributor. |
(H) It is the intent of this subsection (17) to |
promote and continue orderly markets. The General |
Assembly finds that in order to preserve Illinois' |
regulatory distribution system it is necessary to |
create an exception for smaller makers of wine as their |
wines are frequently adjusted in varietals, mixes, |
vintages, and taste to find and create market niches |
sometimes too small for distributor or importing |
distributor business strategies. Limited |
self-distribution rights will afford and allow smaller |
makers of wine access to the marketplace in order to |
develop a customer base without impairing the |
integrity of the 3-tier system.
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(18) (A) A class 1 brewer licensee, who must also be |
either a licensed brewer or licensed non-resident dealer |
and annually manufacture less than 930,000 gallons of beer, |
may make application to the State Commission for a |
self-distribution exemption to allow the sale of not more |
than 232,500 gallons of the exemption holder's beer to |
retail licensees per year. |
(B) In the application, which shall be sworn under |
penalty of perjury, the class 1 brewer licensee shall |
state (1) the date it was established; (2) its volume |
of beer manufactured and sold for each year since its |
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establishment; (3) its efforts to establish |
distributor relationships; (4) that a |
self-distribution exemption is necessary to facilitate |
the marketing of its beer; and (5) that it will comply |
with the alcoholic beverage and revenue laws of the |
United States, this State, and any other state where it |
is licensed. |
(C) Any application submitted shall be posted on |
the State Commission's website at least 45 days prior |
to action by the State Commission. The State Commission |
shall approve the application for a self-distribution |
exemption if the class 1 brewer licensee: (1) is in |
compliance with the State, revenue, and alcoholic |
beverage laws; (2) is not a member of any affiliated |
group that manufactures manufacturers more than |
930,000 gallons of beer per annum or produces any other |
alcoholic beverages; (3) shall not annually |
manufacture for sale more than 930,000 gallons of beer; |
(4) shall not annually sell more than 232,500 gallons |
of its beer to retail licensees; and (5) has |
relinquished any brew pub license held by the licensee, |
including any ownership interest it held in the |
licensed brew pub. |
(D) A self-distribution exemption holder shall |
annually certify to the State Commission its |
manufacture of beer during the previous 12 months and |
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its anticipated manufacture and sales of beer for the |
next 12 months. The State Commission may fine, suspend, |
or revoke a self-distribution exemption after a |
hearing if it finds that the exemption holder has made |
a material misrepresentation in its application, |
violated a revenue or alcoholic beverage law of |
Illinois, exceeded the manufacture of 930,000 gallons |
of beer in any calendar year or became part of an |
affiliated group manufacturing more than 930,000 |
gallons of beer or any other alcoholic beverage. |
(E) The State Commission shall issue rules and |
regulations governing self-distribution exemptions |
consistent with this Act. |
(F) Nothing in this paragraph (18) shall prohibit a |
self-distribution exemption holder from entering into |
or simultaneously having a distribution agreement with |
a licensed Illinois importing distributor or a |
distributor. If a self-distribution exemption holder |
enters into a distribution agreement and has assigned |
distribution rights to an importing distributor or |
distributor, then the self-distribution exemption |
holder's distribution rights in the assigned |
territories shall cease in a reasonable time not to |
exceed 60 days. |
(G) It is the intent of this paragraph (18) to |
promote and continue orderly markets. The General |
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Assembly finds that in order to preserve Illinois' |
regulatory distribution system, it is necessary to |
create an exception for smaller manufacturers in order |
to afford and allow such smaller manufacturers of beer |
access to the marketplace in order to develop a |
customer base without impairing the integrity of the |
3-tier system. |
(b) On or before April 30, 1999, the Commission shall |
present a written
report to the Governor and the General |
Assembly that shall be based on a study
of the impact of Public |
Act 90-739 this amendatory Act of 1998 on the business of |
soliciting,
selling, and shipping
alcoholic liquor from |
outside of this State directly to residents of this
State.
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As part of its report, the Commission shall provide the |
following
information:
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(i) the amount of State excise and sales tax revenues |
generated as a
result of Public Act 90-739 this amendatory |
Act of 1998;
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(ii) the amount of licensing fees received as a result |
of Public Act 90-739 this amendatory
Act of 1998;
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(iii) the number of reported violations, the number of |
cease and desist
notices issued by the Commission, the |
number of notices of violations issued
to the Department of |
Revenue, and the number of notices and complaints of
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violations to law enforcement officials.
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(Source: P.A. 98-401, eff. 8-16-13; 98-939, eff. 7-1-15; |
