Bill Text: IL SB2765 | 2017-2018 | 100th General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Illinois Public Labor Relations Act. Makes a technical change in a Section concerning security employees.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2018-08-21 - Public Act . . . . . . . . . 100-1012 [SB2765 Detail]

Download: Illinois-2017-SB2765-Enrolled.html

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AN ACT concerning government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Alcoholism and Other Drug Abuse and
Dependency Act is amended by adding Section 55-35 as follows:
(20 ILCS 301/55-35 new)
Sec. 55-35. Tobacco enforcement.
(a) The Department of Human Services 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.
(b) Grant funds received from the Food and Drug
Administration of the U.S. Department of Health and Human
Services for conducting unannounced investigations of Illinois
tobacco vendors shall be deposited into the Tobacco Settlement
Recovery Fund starting July 1, 2018.
Section 10. The Liquor Control Act of 1934 is amended by
changing Sections 3-12 and 5-6 as follows:
(235 ILCS 5/3-12)

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Sec. 3-12. Powers and duties of State Commission.
(a) The State commission shall have the following powers,
functions, and duties:
(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
retailer licensees, special use permit licenses, auction
liquor licenses, brew pubs, caterer retailers,
non-beverage users, railroads, including owners and
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
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.
In lieu of suspending or revoking a license, the

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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
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
$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

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imposed on the licensee is the destruction of the bottle of
alcoholic liquor and a fine of up to $50.
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.
(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.
(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
authorizes an agent of the Commission to inspect private
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.
(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.
(5.2) To issue a cease and desist notice to persons
shipping alcoholic liquor into this State from a point
outside of this State if the shipment is in violation of
this Act.
(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
issued pursuant to this Act. Such complaints shall be in
writing, signed and sworn to by the person making the

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complaint, and shall state with specificity the facts in
relation to the alleged violation. If the Commission has
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.
(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.
(7) The commission shall establish uniform systems of
accounts to be kept by all retail licensees having more
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,
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.
(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
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
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

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implement its powers under this paragraph (8).
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.
(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.
(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.
(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.
(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
Commission.
(12) To develop and maintain a repository of license
and regulatory information.
(13) (Blank). 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 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.
As part of its report, the Commission shall provide the
following essential information:
(i) the number of retail distributors of tobacco
products, by type and geographic area, in the State;
(ii) the number of reported citations and
successful convictions, categorized by type and
location of retail distributor, for violation of the
Prevention of Tobacco Use by Minors and Sale and
Distribution of Tobacco Products Act and the Smokeless
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
compliance with any Illinois laws that prohibit the
sale or distribution of tobacco products to minors; and
(iv) the level of access and availability of
tobacco products to individuals under the age of 18.
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.
The Commission shall consult with the Department of
Public Health, the Department of Human Services, the
Illinois State Police and any other executive branch
agency, and private organizations that may have
information relevant to this report.
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.
(14) On or before April 30, 2008 and every 2 years
thereafter, the Commission shall present a written report

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to the Governor and the General Assembly that shall be
based on a study of the impact of Public Act 95-634 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
revenues generated.
(B) The amount of licensing fees received.
(C) The number of cases of wine shipped from inside
and outside of this State directly to residents of this
State.
(D) The number of alcohol compliance operations
conducted.
(E) The number of winery shipper's licenses
issued.
(F) The number of each of the following: reported
violations; cease and desist notices issued by the
Commission; notices of violations issued by the
Commission and to the Department of Revenue; and
notices and complaints of violations to law
enforcement officials, including, without limitation,
the Illinois Attorney General and the U.S. Department
of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
(15) As a means to reduce the underage consumption of
alcoholic liquors, the Commission shall conduct alcohol

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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
attempting to sell wine to persons under 21 years of age in
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 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 Act and annually produces less than 25,000 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

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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 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

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of wine or any other alcoholic liquor.
(E) Except in hearings for violations of this Act or
Public Act 95-634 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 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

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of the 3-tier system.
(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
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 more than
930,000 gallons of beer per annum or produces any other

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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 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.

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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 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 on the business of soliciting, selling, and shipping
alcoholic liquor from outside of this State directly to
residents of this State.
As part of its report, the Commission shall provide the
following information:
(i) the amount of State excise and sales tax revenues
generated as a result of Public Act 90-739;
(ii) the amount of licensing fees received as a result
of Public Act 90-739;

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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
violations to law enforcement officials.
(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
100-134, eff. 8-18-17; 100-201, eff. 8-18-17.)
(235 ILCS 5/5-6)
Sec. 5-6. FDA grant funds. Grant funds received from the
Food and Drug Administration of the U.S. Department of Health
and Human Services for conducting unannounced investigations
of Illinois tobacco vendors shall be deposited into the Dram
Shop Fund until June 30, 2018.
(Source: P.A. 90-9, eff. 7-1-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.