Bill Amendment: IL HB3625 | 2019-2020 | 101st General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: LIQUOR CONTROL-PEACE OFFICERS
Status: 2019-03-29 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB3625 Detail]
Download: Illinois-2019-HB3625-House_Amendment_001.html
Bill Title: LIQUOR CONTROL-PEACE OFFICERS
Status: 2019-03-29 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB3625 Detail]
Download: Illinois-2019-HB3625-House_Amendment_001.html
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1 | AMENDMENT TO HOUSE BILL 3625
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2 | AMENDMENT NO. ______. Amend House Bill 3625 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Liquor Control Act of 1934 is amended by | ||||||
5 | changing Sections 3-4, 3-12, 10-1, and 10-7.1 as follows:
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6 | (235 ILCS 5/3-4) (from Ch. 43, par. 100)
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7 | Sec. 3-4. Authority to conduct investigations. The | ||||||
8 | commission shall obtain, pursuant to the provisions of the
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9 | "Personnel Code" enacted by the 69th General Assembly, such | ||||||
10 | inspectors,
clerks and other employees as may be necessary to | ||||||
11 | carry out the provisions
of this Act, or to perform the duties | ||||||
12 | and exercise the powers conferred by
law upon the commission.
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13 | The Commission shall have the power to appoint | ||||||
14 | investigators to conduct investigations, searches, seizures, | ||||||
15 | arrests, and other duties required to enforce the provisions of | ||||||
16 | this Act, on behalf of the Commission, and to ensure the |
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1 | health, safety, and welfare of the People of the State of | ||||||
2 | Illinois. The Commission's investigators are peace officers | ||||||
3 | and have all the powers possessed by police officers in cities | ||||||
4 | and by sheriffs. Commission investigators may exercise these | ||||||
5 | powers throughout the State whenever enforcing the provisions | ||||||
6 | of this Chapter, subject to the regulations and orders of the | ||||||
7 | Commission. No Commission investigator may have peace officer | ||||||
8 | status or may exercise police powers unless: (1) he or she | ||||||
9 | successfully completes the basic police training course | ||||||
10 | mandated and approved by the Illinois Law Enforcement Training | ||||||
11 | Standards Board; or (2) the Illinois Law Enforcement Training | ||||||
12 | Standards Board waives the training requirement by reason of | ||||||
13 | the investigator's prior law enforcement experience, training, | ||||||
14 | or both. | ||||||
15 | The Executive Director must authorize to each investigator | ||||||
16 | of the Commission and to any other employee of the Department | ||||||
17 | exercising the powers of a peace officer a distinct badge that, | ||||||
18 | on its face: (1) clearly states that the badge is authorized by | ||||||
19 | the Commission; and (2) contains a unique identifying number. | ||||||
20 | No other badge shall be authorized by the Commission. Nothing | ||||||
21 | in this Section prohibits the Executive Director from issuing | ||||||
22 | shields or other distinctive identification to employees | ||||||
23 | performing security or regulatory duties who are not peace | ||||||
24 | officers if the Executive Director determines that a shield or | ||||||
25 | distinctive identification is needed by the employee to carry | ||||||
26 | out his or her responsibilities. |
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1 | (Source: P.A. 82-783.)
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2 | (235 ILCS 5/3-12)
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3 | Sec. 3-12. Powers and duties of State Commission.
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4 | (a) The State Commission shall have the following powers, | ||||||
5 | functions, and
duties:
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6 | (1) To receive applications and to issue licenses to | ||||||
7 | manufacturers,
foreign importers, importing distributors, | ||||||
8 | distributors, non-resident dealers,
on premise consumption | ||||||
9 | retailers, off premise sale retailers, special event
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10 | retailer licensees, special use permit licenses, auction | ||||||
11 | liquor licenses, brew
pubs, caterer retailers, | ||||||
12 | non-beverage users, railroads, including owners and
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13 | lessees of sleeping, dining and cafe cars, airplanes, | ||||||
14 | boats, brokers, and wine
maker's premises licensees in | ||||||
15 | accordance with the provisions of this Act, and
to suspend | ||||||
16 | or revoke such licenses upon the State Commission's | ||||||
17 | determination,
upon notice after hearing, that a licensee | ||||||
18 | has violated any provision of this
Act or any rule or | ||||||
19 | regulation issued pursuant thereto and in effect for 30 | ||||||
20 | days
prior to such violation. Except in the case of an | ||||||
21 | action taken pursuant to a
violation of Section 6-3, 6-5, | ||||||
22 | or 6-9, any action by the State Commission to
suspend or | ||||||
23 | revoke a licensee's license may be limited to the license | ||||||
24 | for the
specific premises where the violation occurred.
An | ||||||
25 | action for a violation of this Act shall be commenced by |
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1 | the State Commission within 2 years after the date the | ||||||
2 | State Commission becomes aware of the violation.
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3 | In lieu of suspending or revoking a license, the | ||||||
4 | commission may impose
a fine, upon the State Commission's | ||||||
5 | determination and notice after hearing,
that a licensee has | ||||||
6 | violated any provision of this Act or any rule or
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7 | regulation issued pursuant thereto and in effect for 30 | ||||||
8 | days prior to such
violation. | ||||||
9 | For the purpose of this paragraph (1), when determining | ||||||
10 | multiple violations for the sale of alcohol to a person | ||||||
11 | under the age of 21, a second or subsequent violation for | ||||||
12 | the sale of alcohol to a person under the age of 21 shall | ||||||
13 | only be considered if it was committed within 5 years after | ||||||
14 | the date when a prior violation for the sale of alcohol to | ||||||
15 | a person under the age of 21 was committed. | ||||||
16 | The fine imposed under this paragraph may not exceed | ||||||
17 | $500 for each
violation. Each day that the activity, which | ||||||
18 | gave rise to the original fine,
continues is a separate | ||||||
19 | violation. The maximum fine that may be levied against
any | ||||||
20 | licensee, for the period of the license, shall not exceed | ||||||
21 | $20,000.
The maximum penalty that may be imposed on a | ||||||
22 | licensee for selling a bottle of
alcoholic liquor with a | ||||||
23 | foreign object in it or serving from a bottle of
alcoholic | ||||||
24 | liquor with a foreign object in it shall be the destruction | ||||||
25 | of that
bottle of alcoholic liquor for the first 10 bottles | ||||||
26 | so sold or served from by
the licensee. For the eleventh |
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1 | bottle of alcoholic liquor and for each third
bottle | ||||||
2 | thereafter sold or served from by the licensee with a | ||||||
3 | foreign object in
it, the maximum penalty that may be | ||||||
4 | imposed on the licensee is the destruction
of the bottle of | ||||||
5 | alcoholic liquor and a fine of up to $50.
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6 | Any notice issued by the State Commission to a licensee | ||||||
7 | for a violation of this Act or any notice with respect to | ||||||
8 | settlement or offer in compromise shall include the field | ||||||
9 | report, photographs, and any other supporting | ||||||
10 | documentation necessary to reasonably inform the licensee | ||||||
11 | of the nature and extent of the violation or the conduct | ||||||
12 | alleged to have occurred. The failure to include such | ||||||
13 | required documentation shall result in the dismissal of the | ||||||
14 | action. | ||||||
15 | (2) To adopt such rules and regulations consistent with | ||||||
16 | the
provisions of this Act which shall be necessary to | ||||||
17 | carry on its
functions and duties to the end that the | ||||||
18 | health, safety and welfare of
the People of the State of | ||||||
19 | Illinois shall be protected and temperance in
the | ||||||
20 | consumption of alcoholic liquors shall be fostered and | ||||||
21 | promoted and
to distribute copies of such rules and | ||||||
22 | regulations to all licensees
affected thereby.
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23 | (3) To call upon other administrative departments of | ||||||
24 | the State,
county and municipal governments, county and | ||||||
25 | city police departments and
upon prosecuting officers for | ||||||
26 | such information and assistance as it
deems necessary in |
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1 | the performance of its duties.
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2 | (4) To recommend to local commissioners rules and | ||||||
3 | regulations, not
inconsistent with the law, for the | ||||||
4 | distribution and sale of alcoholic
liquors throughout the | ||||||
5 | State.
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6 | (5) To inspect, or cause to be inspected, any
premises | ||||||
7 | in this State
where alcoholic liquors are manufactured, | ||||||
8 | distributed, warehoused, or
sold. Nothing in this Act
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9 | authorizes an agent of the Commission to inspect private
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10 | areas within the premises without reasonable suspicion or a | ||||||
11 | warrant
during an inspection. "Private areas" include, but | ||||||
12 | are not limited to, safes, personal property, and closed | ||||||
13 | desks.
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14 | (5.1) Upon receipt of a complaint or upon having | ||||||
15 | knowledge that any person
is engaged in business as a | ||||||
16 | manufacturer, importing distributor, distributor,
or | ||||||
17 | retailer without a license or valid license, to conduct an | ||||||
18 | investigation. If, after conducting an investigation, the | ||||||
19 | Commission is satisfied that the alleged conduct occurred | ||||||
20 | or is occurring, it may issue a cease and desist notice as | ||||||
21 | provided in this Act, impose civil penalties as provided in | ||||||
22 | this Act, to notify the local liquor
authority, or file a | ||||||
23 | complaint with the State's Attorney's Office of the county
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24 | where the incident occurred or the Attorney General , or | ||||||
25 | initiate an investigation with the appropriate
law | ||||||
26 | enforcement officials .
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1 | (5.2) Upon receipt of a complaint or upon having | ||||||
2 | knowledge that any person is To issue a cease and desist | ||||||
3 | notice to persons shipping alcoholic
liquor
into this State | ||||||
4 | from a point outside of this State if the shipment is in
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5 | violation of this Act to conduct an investigation. If, | ||||||
6 | after conducting an investigation, the Commission is | ||||||
7 | satisfied that the alleged conduct occurred or is | ||||||
8 | occurring, it may issue a cease and desist notice as | ||||||
9 | provided in this Act, impose civil penalties as provided in | ||||||
10 | this Act, notify the local liquor authority, or file a | ||||||
11 | complaint with the State's Attorney's Office of the county | ||||||
12 | where the incident occurred or the Attorney General .
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13 | (5.3) To receive complaints from licensees, local | ||||||
14 | officials, law
enforcement agencies, organizations, and | ||||||
15 | persons stating that any licensee has
been or is violating | ||||||
16 | any provision of this Act or the rules and regulations
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17 | issued pursuant to this Act. Such complaints shall be in | ||||||
18 | writing, signed and
sworn to by the person making the | ||||||
19 | complaint, and shall state with specificity
the facts in | ||||||
20 | relation to the alleged violation. If the Commission has
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21 | reasonable grounds to believe that the complaint | ||||||
22 | substantially alleges a
violation of this Act or rules and | ||||||
23 | regulations adopted pursuant to this Act, it
shall conduct | ||||||
24 | an investigation. If, after conducting an investigation, | ||||||
25 | the
Commission is satisfied that the alleged violation did | ||||||
26 | occur, it shall proceed
with disciplinary action against |
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1 | the licensee as provided in this Act.
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2 | (5.4) To make arrests and issue notices of civil | ||||||
3 | violations where necessary for the enforcement of this | ||||||
4 | Chapter. | ||||||
5 | (5.5) To investigate any and all unlicensed activity. | ||||||
6 | (5.6) To impose civil penalties or fines to any person | ||||||
7 | who, without holding a valid license, engages in conduct | ||||||
8 | which requires a license pursuant to this Act, in an amount | ||||||
9 | not to exceed $20,000 for each offense as determined by the | ||||||
10 | Commission. A civil penalty shall be assessed by the | ||||||
11 | Commission after a hearing is held in accordance with the | ||||||
12 | provisions set forth in this Act regarding the provision of | ||||||
13 | a hearing for the revocation or suspension of a license. | ||||||
14 | (6) To hear and determine appeals from orders of a | ||||||
15 | local commission
in accordance with the provisions of this | ||||||
16 | Act, as hereinafter set forth.
Hearings under this | ||||||
17 | subsection shall be held in Springfield or Chicago,
at | ||||||
18 | whichever location is the more convenient for the majority | ||||||
19 | of persons
who are parties to the hearing.
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20 | (7) The commission shall establish uniform systems of | ||||||
21 | accounts to be
kept by all retail licensees having more | ||||||
22 | than 4 employees, and for this
purpose the commission may | ||||||
23 | classify all retail licensees having more
than 4 employees | ||||||
24 | and establish a uniform system of accounts for each
class | ||||||
25 | and prescribe the manner in which such accounts shall be | ||||||
26 | kept.
The commission may also prescribe the forms of |
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1 | accounts to be kept by
all retail licensees having more | ||||||
2 | than 4 employees, including but not
limited to accounts of | ||||||
3 | earnings and expenses and any distribution,
payment, or | ||||||
4 | other distribution of earnings or assets, and any other
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5 | forms, records and memoranda which in the judgment of the | ||||||
6 | commission may
be necessary or appropriate to carry out any | ||||||
7 | of the provisions of this
Act, including but not limited to | ||||||
8 | such forms, records and memoranda as
will readily and | ||||||
9 | accurately disclose at all times the beneficial
ownership | ||||||
10 | of such retail licensed business. The accounts, forms,
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11 | records and memoranda shall be available at all reasonable | ||||||
12 | times for
inspection by authorized representatives of the | ||||||
13 | State Commission or by
any local liquor control | ||||||
14 | commissioner or his or her authorized representative.
The | ||||||
15 | commission, may, from time to time, alter, amend or repeal, | ||||||
16 | in whole
or in part, any uniform system of accounts, or the | ||||||
17 | form and manner of
keeping accounts.
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18 | (8) In the conduct of any hearing authorized to be held | ||||||
19 | by the
commission, to appoint, at the commission's | ||||||
20 | discretion, hearing officers
to conduct hearings involving | ||||||
21 | complex issues or issues that will require a
protracted | ||||||
22 | period of time to resolve, to examine, or cause to be | ||||||
23 | examined,
under oath, any licensee, and to examine or cause | ||||||
24 | to be examined the books and
records
of such licensee; to | ||||||
25 | hear testimony and take proof material for its
information | ||||||
26 | in the discharge of its duties hereunder; to administer or
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1 | cause to be administered oaths; for any such purpose to | ||||||
2 | issue
subpoena or subpoenas to require the attendance of | ||||||
3 | witnesses and the
production of books, which shall be | ||||||
4 | effective in any part of this State, and
to adopt rules to | ||||||
5 | implement its powers under this paragraph (8).
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6 | Any circuit court may by order duly entered,
require | ||||||
7 | the attendance of witnesses and the production of relevant | ||||||
8 | books
subpoenaed by the State Commission and the court may | ||||||
9 | compel
obedience to its order by proceedings for contempt.
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10 | (9) To investigate the administration of laws in | ||||||
11 | relation to
alcoholic liquors in this and other states and | ||||||
12 | any foreign countries,
and to recommend from time to time | ||||||
13 | to the Governor and through him or
her to the legislature | ||||||
14 | of this State, such amendments to this Act, if any, as
it | ||||||
15 | may think desirable and as will serve to further the | ||||||
16 | general broad
purposes contained in Section 1-2 hereof.
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17 | (10) To adopt such rules and regulations consistent | ||||||
18 | with the
provisions of this Act which shall be necessary | ||||||
19 | for the control, sale or
disposition of alcoholic liquor | ||||||
20 | damaged as a result of an accident, wreck,
flood, fire or | ||||||
21 | other similar occurrence.
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22 | (11) To develop industry educational programs related | ||||||
23 | to responsible
serving and selling, particularly in the | ||||||
24 | areas of overserving consumers and
illegal underage | ||||||
25 | purchasing and consumption of alcoholic beverages.
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26 | (11.1) To license persons providing education and |
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1 | training to alcohol
beverage sellers and servers for | ||||||
2 | mandatory and non-mandatory training under the
Beverage | ||||||
3 | Alcohol Sellers and Servers
Education and Training | ||||||
4 | (BASSET) programs and to develop and administer a public
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5 | awareness program in Illinois to reduce or eliminate the | ||||||
6 | illegal purchase and
consumption of alcoholic beverage | ||||||
7 | products by persons under the age of 21.
Application for a | ||||||
8 | license shall be made on forms provided by the State
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9 | Commission.
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10 | (12) To develop and maintain a repository of license | ||||||
11 | and regulatory
information.
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12 | (13) (Blank).
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13 | (14) On or before April 30, 2008 and every 2 years
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14 | thereafter, the Commission shall present a written
report | ||||||
15 | to the Governor and the General Assembly that shall
be | ||||||
16 | based on a study of the impact of Public Act 95-634 on the | ||||||
17 | business of soliciting,
selling, and shipping wine from | ||||||
18 | inside and outside of this
State directly to residents of | ||||||
19 | this State. As part of its
report, the Commission shall | ||||||
20 | provide all of the
following information: | ||||||
21 | (A) The amount of State excise and sales tax
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22 | revenues generated. | ||||||
23 | (B) The amount of licensing fees received. | ||||||
24 | (C) The number of cases of wine shipped from inside
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25 | and outside of this State directly to residents of this
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26 | State. |
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1 | (D) The number of alcohol compliance operations
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2 | conducted. | ||||||
3 | (E) The number of winery shipper's licenses
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4 | issued. | ||||||
5 | (F) The number of each of the following: reported
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6 | violations; cease and desist notices issued by the
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7 | Commission; notices of violations issued by
the | ||||||
8 | Commission and to the Department of Revenue;
and | ||||||
9 | notices and complaints of violations to law
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10 | enforcement officials, including, without limitation,
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11 | the Illinois Attorney General and the U.S. Department
| ||||||
12 | of Treasury's Alcohol and Tobacco Tax and Trade Bureau. | ||||||
13 | (15) As a means to reduce the underage consumption of
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14 | alcoholic liquors, the Commission shall conduct
alcohol | ||||||
15 | compliance operations to investigate whether
businesses | ||||||
16 | that are soliciting, selling, and shipping wine
from inside | ||||||
17 | or outside of this State directly to residents
of this | ||||||
18 | State are licensed by this State or are selling or
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19 | attempting to sell wine to persons under 21 years of age in
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20 | violation of this Act. | ||||||
21 | (16) The Commission shall, in addition to
notifying any | ||||||
22 | appropriate law enforcement agency, submit
notices of | ||||||
23 | complaints or violations of Sections 6-29 and
6-29.1 by | ||||||
24 | persons who do not hold a winery shipper's
license under | ||||||
25 | this Act to the Illinois Attorney General and
to the U.S. | ||||||
26 | Department of Treasury's Alcohol and Tobacco Tax and Trade |
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1 | Bureau. | ||||||
2 | (17)(A) A person licensed to make wine under the laws | ||||||
3 | of another state who has a winery shipper's license under | ||||||
4 | this Act and annually produces less than 25,000 gallons of | ||||||
5 | wine or a person who has a first-class or second-class wine | ||||||
6 | manufacturer's license, a first-class or second-class | ||||||
7 | wine-maker's license, or a limited wine manufacturer's | ||||||
8 | license under this Act and annually produces less than | ||||||
9 | 25,000 gallons of wine may make application to the | ||||||
10 | Commission for a self-distribution exemption to allow the | ||||||
11 | sale of not more than 5,000 gallons of the exemption | ||||||
12 | holder's wine to retail licensees per year. | ||||||
13 | (B) In the application, which shall be sworn under | ||||||
14 | penalty of perjury, such person shall state (1) the date it | ||||||
15 | was established; (2) its volume of production and sales for | ||||||
16 | each year since its establishment; (3) its efforts to | ||||||
17 | establish distributor relationships; (4) that a | ||||||
18 | self-distribution exemption is necessary to facilitate the | ||||||
19 | marketing of its wine; and (5) that it will comply with the | ||||||
20 | liquor and revenue laws of the United States, this State, | ||||||
21 | and any other state where it is licensed. | ||||||
22 | (C) The Commission shall approve the application for a | ||||||
23 | self-distribution exemption if such person: (1) is in | ||||||
24 | compliance with State revenue and liquor laws; (2) is not a | ||||||
25 | member of any affiliated group that produces more than | ||||||
26 | 25,000 gallons of wine per annum or produces any other |
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1 | alcoholic liquor; (3) will not annually produce for sale | ||||||
2 | more than 25,000 gallons of wine; and (4) will not annually | ||||||
3 | sell more than 5,000 gallons of its wine to retail | ||||||
4 | licensees. | ||||||
5 | (D) A self-distribution exemption holder shall | ||||||
6 | annually certify to the Commission its production of wine | ||||||
7 | in the previous 12 months and its anticipated production | ||||||
8 | and sales for the next 12 months. The Commission may fine, | ||||||
9 | suspend, or revoke a self-distribution exemption after a | ||||||
10 | hearing if it finds that the exemption holder has made a | ||||||
11 | material misrepresentation in its application, violated a | ||||||
12 | revenue or liquor law of Illinois, exceeded production of | ||||||
13 | 25,000 gallons of wine in any calendar year, or become part | ||||||
14 | of an affiliated group producing more than 25,000 gallons | ||||||
15 | of wine or any other alcoholic liquor. | ||||||
16 | (E) Except in hearings for violations of this Act or | ||||||
17 | Public Act 95-634 or a bona fide investigation by duly | ||||||
18 | sworn law enforcement officials, the Commission, or its | ||||||
19 | agents, the Commission shall maintain the production and | ||||||
20 | sales information of a self-distribution exemption holder | ||||||
21 | as confidential and shall not release such information to | ||||||
22 | any person. | ||||||
23 | (F) The Commission shall issue regulations governing | ||||||
24 | self-distribution exemptions consistent with this Section | ||||||
25 | and this Act. | ||||||
26 | (G) Nothing in this paragraph subsection (17) shall |
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1 | prohibit a self-distribution exemption holder from | ||||||
2 | entering into or simultaneously having a distribution | ||||||
3 | agreement with a licensed Illinois distributor. | ||||||
4 | (H) It is the intent of this paragraph subsection (17) | ||||||
5 | to promote and continue orderly markets. The General | ||||||
6 | Assembly finds that in order to preserve Illinois' | ||||||
7 | regulatory distribution system it is necessary to create an | ||||||
8 | exception for smaller makers of wine as their wines are | ||||||
9 | frequently adjusted in varietals, mixes, vintages, and | ||||||
10 | taste to find and create market niches sometimes too small | ||||||
11 | for distributor or importing distributor business | ||||||
12 | strategies. Limited self-distribution rights will afford | ||||||
13 | and allow smaller makers of wine access to the marketplace | ||||||
14 | in order to develop a customer base without impairing the | ||||||
15 | integrity of the 3-tier system.
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16 | (18)(A) A class 1 brewer licensee, who must also be | ||||||
17 | either a licensed brewer or licensed non-resident dealer | ||||||
18 | and annually manufacture less than 930,000 gallons of beer, | ||||||
19 | may make application to the State Commission for a | ||||||
20 | self-distribution exemption to allow the sale of not more | ||||||
21 | than 232,500 gallons of the exemption holder's beer per | ||||||
22 | year to retail licensees and to brewers, class 1 brewers, | ||||||
23 | and class 2 brewers that, pursuant to subsection (e) of | ||||||
24 | Section 6-4 of this Act, sell beer, cider, or both beer and | ||||||
25 | cider to non-licensees at their breweries. | ||||||
26 | (B) In the application, which shall be sworn under |
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1 | penalty of perjury, the class 1 brewer licensee shall state | ||||||
2 | (1) the date it was established; (2) its volume of beer | ||||||
3 | manufactured and sold for each year since its | ||||||
4 | establishment; (3) its efforts to establish distributor | ||||||
5 | relationships; (4) that a self-distribution exemption is | ||||||
6 | necessary to facilitate the marketing of its beer; and (5) | ||||||
7 | that it will comply with the alcoholic beverage and revenue | ||||||
8 | laws of the United States, this State, and any other state | ||||||
9 | where it is licensed. | ||||||
10 | (C) Any application submitted shall be posted on the | ||||||
11 | State Commission's website at least 45 days prior to action | ||||||
12 | by the State Commission. The State Commission shall approve | ||||||
13 | the application for a self-distribution exemption if the | ||||||
14 | class 1 brewer licensee: (1) is in compliance with the | ||||||
15 | State, revenue, and alcoholic beverage laws; (2) is not a | ||||||
16 | member of any affiliated group that manufactures more than | ||||||
17 | 930,000 gallons of beer per annum or produces any other | ||||||
18 | alcoholic beverages; (3) shall not annually manufacture | ||||||
19 | for sale more than 930,000 gallons of beer; (4) shall not | ||||||
20 | annually sell more than 232,500 gallons of its beer to | ||||||
21 | retail licensees or to brewers, class 1 brewers, and class | ||||||
22 | 2 brewers that, pursuant to subsection (e) of Section 6-4 | ||||||
23 | of this Act, sell beer, cider, or both beer and cider to | ||||||
24 | non-licensees at their breweries; and (5) has relinquished | ||||||
25 | any brew pub license held by the licensee, including any | ||||||
26 | ownership interest it held in the licensed brew pub. |
| |||||||
| |||||||
1 | (D) A self-distribution exemption holder shall | ||||||
2 | annually certify to the State Commission its manufacture of | ||||||
3 | beer during the previous 12 months and its anticipated | ||||||
4 | manufacture and sales of beer for the next 12 months. The | ||||||
5 | State Commission may fine, suspend, or revoke a | ||||||
6 | self-distribution exemption after a hearing if it finds | ||||||
7 | that the exemption holder has made a material | ||||||
8 | misrepresentation in its application, violated a revenue | ||||||
9 | or alcoholic beverage law of Illinois, exceeded the | ||||||
10 | manufacture of 930,000 gallons of beer in any calendar year | ||||||
11 | or became part of an affiliated group manufacturing more | ||||||
12 | than 930,000 gallons of beer or any other alcoholic | ||||||
13 | beverage. | ||||||
14 | (E) The State Commission shall issue rules and | ||||||
15 | regulations governing self-distribution exemptions | ||||||
16 | consistent with this Act. | ||||||
17 | (F) Nothing in this paragraph (18) shall prohibit a | ||||||
18 | self-distribution exemption holder from entering into or | ||||||
19 | simultaneously having a distribution agreement with a | ||||||
20 | licensed Illinois importing distributor or a distributor. | ||||||
21 | If a self-distribution exemption holder enters into a | ||||||
22 | distribution agreement and has assigned distribution | ||||||
23 | rights to an importing distributor or distributor, then the | ||||||
24 | self-distribution exemption holder's distribution rights | ||||||
25 | in the assigned territories shall cease in a reasonable | ||||||
26 | time not to exceed 60 days. |
| |||||||
| |||||||
1 | (G) It is the intent of this paragraph (18) to promote | ||||||
2 | and continue orderly markets. The General Assembly finds | ||||||
3 | that in order to preserve Illinois' regulatory | ||||||
4 | distribution system, it is necessary to create an exception | ||||||
5 | for smaller manufacturers in order to afford and allow such | ||||||
6 | smaller manufacturers of beer access to the marketplace in | ||||||
7 | order to develop a customer base without impairing the | ||||||
8 | integrity of the 3-tier system. | ||||||
9 | (b) On or before April 30, 1999, the Commission shall | ||||||
10 | present a written
report to the Governor and the General | ||||||
11 | Assembly that shall be based on a study
of the impact of Public | ||||||
12 | Act 90-739 on the business of soliciting,
selling, and shipping
| ||||||
13 | alcoholic liquor from outside of this State directly to | ||||||
14 | residents of this
State.
| ||||||
15 | As part of its report, the Commission shall provide the | ||||||
16 | following
information:
| ||||||
17 | (i) the amount of State excise and sales tax revenues | ||||||
18 | generated as a
result of Public Act 90-739;
| ||||||
19 | (ii) the amount of licensing fees received as a result | ||||||
20 | of Public Act 90-739;
| ||||||
21 | (iii) the number of reported violations, the number of | ||||||
22 | cease and desist
notices issued by the Commission, the | ||||||
23 | number of notices of violations issued
to the Department of | ||||||
24 | Revenue, and the number of notices and complaints of
| ||||||
25 | violations to law enforcement officials.
| ||||||
26 | (Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15; |
| |||||||
| |||||||
1 | 100-134, eff. 8-18-17; 100-201, eff. 8-18-17; 100-816, eff. | ||||||
2 | 8-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. 8-23-18; | ||||||
3 | revised 10-24-18.)
| ||||||
4 | (235 ILCS 5/10-1) (from Ch. 43, par. 183)
| ||||||
5 | Sec. 10-1. Violations; penalties. Whereas a substantial | ||||||
6 | threat
to the sound and careful control, regulation, and | ||||||
7 | taxation of the
manufacture, sale, and distribution of | ||||||
8 | alcoholic liquors exists by virtue
of individuals who | ||||||
9 | manufacture,
import, distribute, or sell alcoholic liquors | ||||||
10 | within the State without
having first obtained a valid license | ||||||
11 | to do so, and whereas such threat is
especially serious along | ||||||
12 | the borders of this State, and whereas such threat
requires | ||||||
13 | immediate correction by this Act, by active investigation and
| ||||||
14 | prosecution by the Commission, law enforcement officials , and | ||||||
15 | prosecutors, and by prompt and
strict enforcement through the | ||||||
16 | courts of this State to punish violators and
to deter such | ||||||
17 | conduct in the future:
| ||||||
18 | (a) Any person who manufactures, imports
for distribution | ||||||
19 | or use, transports from outside this State into this State, or | ||||||
20 | distributes or sells 108 liters (28.53 gallons) or more of | ||||||
21 | wine, 45 liters (11.88 gallons) or more of distilled spirits, | ||||||
22 | or 118 liters (31.17 gallons) or more of beer at any
place | ||||||
23 | within the State without having first obtained a valid license | ||||||
24 | to do
so under the provisions of this Act shall be guilty of a | ||||||
25 | Class 4 felony for each offense. However, any person who was |
| |||||||
| |||||||
1 | duly licensed under this Act and whose license expired within | ||||||
2 | 30 days prior to a violation shall be guilty of a business | ||||||
3 | offense and fined not more than $1,000 for the first such | ||||||
4 | offense and shall be guilty of a Class 4 felony for each | ||||||
5 | subsequent offense.
| ||||||
6 | Any person who manufactures, imports for distribution, | ||||||
7 | transports from outside this State into this State for sale or | ||||||
8 | resale in this State, or distributes or sells less than 108 | ||||||
9 | liters (28.53 gallons) of wine, less than 45 liters (11.88 | ||||||
10 | gallons) of distilled spirits, or less than 118 liters (31.17 | ||||||
11 | gallons) of beer at any place within the State without having | ||||||
12 | first obtained a valid license to do so under the provisions of | ||||||
13 | this Act shall be guilty of a business offense and fined not | ||||||
14 | more than $1,000 for the first such offense and shall be guilty | ||||||
15 | of a Class 4 felony for each subsequent offense. This | ||||||
16 | subsection does not apply to a motor carrier or freight | ||||||
17 | forwarder, as defined in Section 13102 of Title 49 of the | ||||||
18 | United States Code, an air carrier, as defined in Section 40102 | ||||||
19 | of Title 49 of the United States Code, or a rail carrier, as | ||||||
20 | defined in Section 10102 of Title 49 of the United States Code. | ||||||
21 | Any person who : (1) both has been issued an initial cease | ||||||
22 | and desist notice from the State Commission ; and (2) for | ||||||
23 | compensation , does any of the following: (i) ships alcoholic | ||||||
24 | liquor into this State without a license authorized by Section | ||||||
25 | 5-1 issued by the State Commission or in violation of that | ||||||
26 | license ; or (ii) manufactures, imports for distribution, |
| |||||||
| |||||||
1 | transports from outside this State into this State for sale or | ||||||
2 | resale in this State, or distributes or sells alcoholic liquors | ||||||
3 | at any place without having first obtained a valid license to | ||||||
4 | do so is guilty of a Class 4 felony for each offense. | ||||||
5 | (b) (1) Any retailer, caterer retailer, brew pub, special | ||||||
6 | event retailer, special use permit holder, homebrewer special | ||||||
7 | event permit holder, or craft distiller tasting permit holder | ||||||
8 | who knowingly causes alcoholic liquors to be imported directly | ||||||
9 | into the State of Illinois from outside of the State for the | ||||||
10 | purpose of furnishing, giving, or selling to another, except | ||||||
11 | when having received the product from a duly licensed | ||||||
12 | distributor or importing distributor, licensed in this State, | ||||||
13 | who knowingly causes to
furnish,
give, sell, or otherwise being | ||||||
14 | within the State, any alcoholic liquor destined
to be used, | ||||||
15 | distributed, consumed or sold in another state, unless such
| ||||||
16 | alcoholic liquor was received in this State by a duly licensed | ||||||
17 | distributor,
or importing distributors shall have his license | ||||||
18 | suspended for 7 days for
the first offense and for the second | ||||||
19 | offense, shall have his license
revoked by the Commission.
| ||||||
20 | (2) In the event the Commission receives a certified copy | ||||||
21 | of a final order
from a foreign jurisdiction that an Illinois | ||||||
22 | retail licensee has been found to
have violated that foreign | ||||||
23 | jurisdiction's laws, rules, or regulations
concerning the | ||||||
24 | importation of alcoholic liquor into that foreign | ||||||
25 | jurisdiction,
the violation may be grounds for the Commission | ||||||
26 | to revoke, suspend, or refuse
to
issue or renew a license, to |
| |||||||
| |||||||
1 | impose a fine, or to take any additional action
provided by | ||||||
2 | this Act with respect to the Illinois retail license or | ||||||
3 | licensee.
Any such action on the part of the Commission shall | ||||||
4 | be in accordance with this
Act and implementing rules.
| ||||||
5 | For the purposes of paragraph (2): (i) "foreign | ||||||
6 | jurisdiction" means a
state, territory, or possession of the | ||||||
7 | United States, the District of Columbia,
or the Commonwealth of | ||||||
8 | Puerto Rico, and (ii) "final order" means an order or
judgment | ||||||
9 | of a court or administrative body that determines the rights of | ||||||
10 | the
parties respecting the subject matter of the proceeding, | ||||||
11 | that remains in full
force and effect, and from which no appeal | ||||||
12 | can be taken.
| ||||||
13 | (c) Any person who shall make any false statement or | ||||||
14 | otherwise
violates any of the provisions of this Act in | ||||||
15 | obtaining any license
hereunder, or who having obtained a | ||||||
16 | license hereunder shall violate any
of the provisions of this | ||||||
17 | Act with respect to the manufacture,
possession, distribution | ||||||
18 | or sale of alcoholic liquor, or with respect to
the maintenance | ||||||
19 | of the licensed premises, or shall violate any other
provision | ||||||
20 | of this Act, shall for a first offense be guilty of a petty
| ||||||
21 | offense and fined not more than $500, and for a second or | ||||||
22 | subsequent
offense shall be guilty of a Class B misdemeanor.
| ||||||
23 | (c-5) Any owner of an establishment that serves alcohol on | ||||||
24 | its premises, if more than 50% of the establishment's gross | ||||||
25 | receipts within the prior 3 months is from the sale of alcohol, | ||||||
26 | who knowingly fails to prohibit concealed firearms on its |
| |||||||
| |||||||
1 | premises or who knowingly makes a false statement or record to | ||||||
2 | avoid the prohibition of concealed firearms on its premises | ||||||
3 | under the Firearm Concealed Carry Act shall be guilty of a | ||||||
4 | business offense with a fine up to $5,000. | ||||||
5 | (d) Each day any person engages in business as a | ||||||
6 | manufacturer,
foreign importer, importing distributor, | ||||||
7 | distributor or retailer in
violation of the provisions of this | ||||||
8 | Act shall constitute a separate offense.
| ||||||
9 | (e) Any person, under the age of 21 years who, for the | ||||||
10 | purpose
of buying, accepting or receiving alcoholic liquor from | ||||||
11 | a
licensee, represents that he is 21 years of age or over shall | ||||||
12 | be guilty
of a Class A misdemeanor.
| ||||||
13 | (f) In addition to the penalties herein provided, any | ||||||
14 | person
licensed as a wine-maker in either class who | ||||||
15 | manufactures more wine than
authorized by his license shall be | ||||||
16 | guilty of a business offense and shall be
fined $1 for each | ||||||
17 | gallon so manufactured.
| ||||||
18 | (g) A person shall be exempt from prosecution for a | ||||||
19 | violation of this
Act if he is a peace officer in the | ||||||
20 | enforcement of the criminal laws and
such activity is approved | ||||||
21 | in writing by one of the following:
| ||||||
22 | (1) In all counties, the respective State's Attorney;
| ||||||
23 | (2) The Director of State Police under
Section 2605-10, | ||||||
24 | 2605-15, 2605-75, 2605-100, 2605-105, 2605-110,
2605-115, | ||||||
25 | 2605-120, 2605-130, 2605-140, 2605-190, 2605-200, | ||||||
26 | 2605-205, 2605-210,
2605-215, 2605-250, 2605-275, |
| |||||||
| |||||||
1 | 2605-300, 2605-305, 2605-315, 2605-325, 2605-335,
| ||||||
2 | 2605-340,
2605-350, 2605-355, 2605-360, 2605-365, | ||||||
3 | 2605-375, 2605-390, 2605-400, 2605-405,
2605-420,
| ||||||
4 | 2605-430, 2605-435, 2605-500, 2605-525, or 2605-550 of the | ||||||
5 | Department of State
Police Law (20 ILCS 2605/2605-10, | ||||||
6 | 2605/2605-15, 2605/2605-75,
2605/2605-100, 2605/2605-105, | ||||||
7 | 2605/2605-110, 2605/2605-115,
2605/2605-120, | ||||||
8 | 2605/2605-130, 2605/2605-140, 2605/2605-190, | ||||||
9 | 2605/2605-200,
2605/2605-205, 2605/2605-210, | ||||||
10 | 2605/2605-215, 2605/2605-250, 2605/2605-275,
| ||||||
11 | 2605/2605-300,
2605/2605-305, 2605/2605-315, | ||||||
12 | 2605/2605-325, 2605/2605-335, 2605/2605-340,
| ||||||
13 | 2605/2605-350, 2605/2605-355, 2605/2605-360,
| ||||||
14 | 2605/2605-365, 2605/2605-375, 2605/2605-390,
| ||||||
15 | 2605/2605-400, 2605/2605-405, 2605/2605-420, | ||||||
16 | 2605/2605-430, 2605/2605-435,
2605/2605-500, | ||||||
17 | 2605/2605-525, or 2605/2605-550); or
| ||||||
18 | (3) In cities over 1,000,000, the Superintendent of | ||||||
19 | Police.
| ||||||
20 | (Source: P.A. 98-63, eff. 7-9-13; 99-904, eff. 1-1-17 .)
| ||||||
21 | (235 ILCS 5/10-7.1) (from Ch. 43, par. 189.1)
| ||||||
22 | Sec. 10-7.1.
The Commission, upon receipt of a complaint or | ||||||
23 | upon having
knowledge that any
person is engaged in the | ||||||
24 | business as a manufacturer, importing distributor,
| ||||||
25 | distributor , or retailer without a license or valid license, |
| |||||||
| |||||||
1 | shall conduct an investigation. If, after conducting an | ||||||
2 | investigation, the Commission is satisfied that the alleged | ||||||
3 | conduct occurred or is occurring, it may issue a cease and | ||||||
4 | desist notice as provided in this Act, issue civil penalties as | ||||||
5 | provided in this Act, notify
the Department of Revenue and the | ||||||
6 | local liquor authority, and file a
complaint with the State's | ||||||
7 | Attorney's
Office of the County where the incident occurred or | ||||||
8 | with the Attorney General initiate an
investigation with the | ||||||
9 | appropriate
law enforcement officials .
| ||||||
10 | (Source: P.A. 90-739, eff. 8-13-98.)".
|