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| Public Act 101-0037
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| HB2577 Enrolled | LRB101 06994 RPS 52027 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 Sections 3-4, 3-12, 8-2, 10-1, and 10-7.1 as follows:
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(235 ILCS 5/3-4) (from Ch. 43, par. 100)
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Sec. 3-4. Authority to conduct investigations. The State |
Commission commission shall obtain, pursuant to the provisions |
of the
"Personnel Code" enacted by the 69th General Assembly, |
such inspectors,
clerks, and other employees as may be |
necessary to carry out the provisions
of this Act, or to |
perform the duties and exercise the powers conferred by
law |
upon the State Commission commission. The inspectors obtained |
by the State Commission shall not be peace
officers and shall |
not exercise any powers of a peace officer.
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The State Commission shall have the power to appoint |
investigators to conduct investigations, searches, seizures, |
arrests, and other duties required to enforce the provisions of |
this Act, on behalf of the State Commission, and to ensure the |
health, safety, and welfare of the People of the State of |
Illinois. The Commission's investigators are peace officers |
and have all the powers possessed by police officers in cities |
and by sheriffs. State Commission investigators may exercise |
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these powers throughout the State whenever enforcing the |
provisions of this Act, subject to the rules and orders of the |
State Commission. No State Commission investigator may have |
peace officer status or may exercise police powers unless: (1) |
he or she successfully completes the basic police training |
course mandated and approved by the Illinois Law Enforcement |
Training Standards Board; or (2) the Illinois Law Enforcement |
Training Standards Board waives the training requirement by |
reason of the investigator's prior law enforcement experience, |
training, or both. |
The Executive Director must authorize to each investigator |
of the State Commission and to any other employee of the |
Department exercising the powers of a peace officer a distinct |
badge that, on its face: (1) clearly states that the badge is |
authorized by the State Commission; and (2) contains a unique |
identifying number. No other badge shall be authorized by the |
State Commission. Nothing in this Section prohibits the |
Executive Director from issuing shields or other distinctive |
identification to employees performing security or regulatory |
duties who are not peace officers if the Executive Director |
determines that a shield or distinctive identification is |
needed by the employee to carry out his or her |
responsibilities. |
(Source: P.A. 82-783.)
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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 |
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 |
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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
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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 |
$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.
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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. The failure to include such |
required documentation shall result in the dismissal of the |
action. |
(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 |
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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 State Commission 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.
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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 conduct an |
investigation. If, after conducting an investigation, the |
State Commission is satisfied that the alleged conduct |
occurred or is occurring, it may issue a cease and desist |
notice as provided in this Act, impose civil penalties as |
provided in this Act, to notify the local liquor
authority, |
or file a complaint with the State's Attorney's Office of |
the county
where the incident occurred or the Attorney |
General , or initiate an investigation with the appropriate
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law enforcement officials.
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(5.2) Upon receipt of a complaint or upon having |
knowledge that any person is To issue a cease and desist |
notice to persons shipping alcoholic
liquor
into this State |
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from a point outside of this State if the shipment is in
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violation of this Act, to conduct an investigation. If, |
after conducting an investigation, the State Commission is |
satisfied that the alleged conduct occurred or is |
occurring, it may issue a cease and desist notice as |
provided in this Act, impose civil penalties as provided in |
this Act, notify the foreign jurisdiction, or file a |
complaint with the State's Attorney's Office of the county |
where the incident occurred or the Attorney General.
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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 State 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
State 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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(5.4) To make arrests and issue notices of civil |
violations where necessary for the enforcement of this Act. |
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(5.5) To investigate any and all unlicensed activity. |
(5.6) To impose civil penalties or fines to any person |
who, without holding a valid license, engages in conduct |
that requires a license pursuant to this Act, in an amount |
not to exceed $20,000 for each offense as determined by the |
State Commission. A civil penalty shall be assessed by the |
State Commission after a hearing is held in accordance with |
the provisions set forth in this Act regarding the |
provision of a hearing for the revocation or suspension of |
a license. |
(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 State Commission commission shall establish |
uniform systems of accounts to be
kept by all retail |
licensees having more than 4 employees, and for this
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purpose the State Commission 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 State |
Commission 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 |
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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 State Commission
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 |
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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 |
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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) (Blank).
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(14) On or before April 30, 2008 and every 2 years
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thereafter, the State Commission shall present a written
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report to the Governor and the General Assembly that shall
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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 State 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. |
(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 State Commission shall conduct
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alcohol compliance operations to investigate whether
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businesses that are soliciting, selling, and shipping wine
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from inside or outside of this State directly to residents
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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 State Commission shall, in addition to
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notifying any appropriate law enforcement agency, submit
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notices of complaints or violations of Sections 6-29 and
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6-29.1 by persons who do not hold a winery shipper's
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license under this Act to the Illinois Attorney General and
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to the U.S. Department of Treasury's Alcohol and Tobacco |
Tax and Trade Bureau. |
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(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 |
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 State 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 |
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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 State Commission its production of |
wine in the previous 12 months and its anticipated |
production and sales 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 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 or a bona fide investigation by duly |
sworn law enforcement officials, the State Commission, or |
its agents, the State 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 State Commission shall issue regulations |
governing self-distribution exemptions consistent with |
this Section and this Act. |
(G) Nothing in this paragraph subsection (17) shall |
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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 paragraph 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 per |
year to retail licensees and to brewers, class 1 brewers, |
and class 2 brewers that, pursuant to subsection (e) of |
Section 6-4 of this Act, sell beer, cider, or both beer and |
cider to non-licensees at their breweries. |
(B) In the application, which shall be sworn under |
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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 |
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 or to brewers, class 1 brewers, and class |
2 brewers that, pursuant to subsection (e) of Section 6-4 |
of this Act, sell beer, cider, or both beer and cider to |
non-licensees at their breweries; and (5) has relinquished |
any brew pub license held by the licensee, including any |
ownership interest it held in the licensed brew pub. |
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(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. |
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. |
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(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
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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;
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(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
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violations to law enforcement officials.
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(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15; |
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100-134, eff. 8-18-17; 100-201, eff. 8-18-17; 100-816, eff. |
8-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. 8-23-18; |
revised 10-24-18.)
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(235 ILCS 5/8-2) (from Ch. 43, par. 159)
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Sec. 8-2. Payments; reports. It is the duty of each |
manufacturer with respect to alcoholic
liquor produced or |
imported by such manufacturer, or purchased tax-free by
such |
manufacturer from another manufacturer or importing
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distributor, and of each importing distributor as to alcoholic |
liquor
purchased by such importing distributor from foreign |
importers or from
anyone from any point in the United States |
outside of this State or
purchased tax-free from another |
manufacturer or importing
distributor, to pay the tax imposed |
by Section 8-1 to the
Department of Revenue on or before the |
15th day of the calendar month
following the calendar month in |
which such alcoholic liquor is sold or used
by such |
manufacturer or by such importing distributor other than in an
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authorized tax-free manner or to pay that tax electronically as |
provided in
this Section.
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Each manufacturer and each importing distributor shall
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make payment under one of the following methods: (1) on or |
before the
15th day of each calendar month, file in person or |
by United States
first-class
mail, postage pre-paid,
with the |
Department of Revenue, on
forms prescribed and furnished by the |
Department, a report in writing in
such form as may be required |
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by the Department in order to compute, and
assure the accuracy |
of, the tax due on all taxable sales and uses of
alcoholic |
liquor occurring during the preceding month. Payment of the tax
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in the amount disclosed by the report shall accompany the |
report or, (2) on
or
before the 15th day of each calendar |
month, electronically file with the
Department of Revenue, on |
forms prescribed and furnished by the Department, an
electronic |
report in such form as may be required by the Department in |
order to
compute,
and assure the accuracy of, the tax due on |
all taxable sales and uses of
alcoholic liquor
occurring during |
the preceding month. An electronic payment of the tax in the
|
amount
disclosed by the report shall accompany the report. A |
manufacturer or
distributor who
files an electronic report and |
electronically pays the tax imposed pursuant to
Section 8-1
to |
the Department of Revenue on or before the 15th day of the |
calendar month
following
the calendar month in which such |
alcoholic liquor is sold or used by that
manufacturer or
|
importing distributor other than in an authorized tax-free |
manner shall pay to
the
Department the amount of the tax |
imposed pursuant to Section 8-1, less a
discount
which is |
allowed to reimburse the manufacturer or importing distributor
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for the
expenses incurred in keeping and maintaining records, |
preparing and filing the
electronic
returns, remitting the tax, |
and supplying data to the Department upon
request.
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The discount shall be in an amount as follows:
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(1) For original returns due on or after January 1, |
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2003 through
September 30, 2003, the discount shall be |
1.75% or $1,250 per return, whichever
is less;
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(2) For original returns due on or after October 1, |
2003 through September
30, 2004, the discount shall be 2% |
or $3,000 per return, whichever is less; and
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(3) For original returns due on or after October 1, |
2004, the discount
shall
be 2% or $2,000 per return, |
whichever is less.
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The Department may, if it deems it necessary in order to |
insure the
payment of the tax imposed by this Article, require |
returns to be made
more frequently than and covering periods of |
less than a month. Such return
shall contain such further |
information as the Department may reasonably
require.
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It shall be presumed that all alcoholic liquors acquired or |
made by any
importing distributor or manufacturer have been |
sold or used by him in this
State and are the basis for the tax |
imposed by this Article unless proven,
to the satisfaction of |
the Department, that such alcoholic liquors are (1)
still in |
the possession of such importing distributor or manufacturer, |
or
(2) prior to the termination of possession have been lost by |
theft or
through unintentional destruction, or (3) that such |
alcoholic liquors are
otherwise exempt from taxation under this |
Act.
|
If any payment provided for in this Section exceeds the |
manufacturer's or importing distributor's liabilities under |
this Act, as shown on an original report, the manufacturer or |
|
importing distributor may credit such excess payment against |
liability subsequently to be remitted to the Department under |
this Act, in accordance with reasonable rules adopted by the |
Department. If the Department subsequently determines that all |
or any part of the credit taken was not actually due to the |
manufacturer or importing distributor, the manufacturer's or |
importing distributor's discount shall be reduced by an amount |
equal to the difference between the discount as applied to the |
credit taken and that actually due, and the manufacturer or |
importing distributor shall be liable for penalties and |
interest on such difference. |
The Department may require any foreign importer to file |
monthly
information returns, by the 15th day of the month |
following the month which
any such return covers, if the |
Department determines this to be necessary
to the proper |
performance of the Department's functions and duties under
this |
Act. Such return shall contain such information as the |
Department may
reasonably require.
|
Every manufacturer and importing distributor, except for a
|
manufacturer or importing distributor that in the preceding
|
year had less than $50,000 of tax liability under this Article, |
shall also file, with the
Department, a bond in an amount not |
less than $1,000 and not to exceed
$100,000 on a form to be |
approved by, and with a surety or sureties
satisfactory to, the |
Department. Such bond shall be conditioned upon the
|
manufacturer or importing distributor paying to the Department |
|
all monies
becoming due from such manufacturer or importing |
distributor under this
Article. The Department shall fix the |
penalty of such bond in each case,
taking into consideration |
the amount of alcoholic liquor expected to be
sold and used by |
such manufacturer or importing distributor, and the
penalty |
fixed by the Department shall be sufficient, in the |
Department's
opinion, to protect the State of Illinois against |
failure to pay any amount
due under this Article, but the |
amount of the penalty fixed by the
Department shall not exceed |
twice the amount of tax liability of a monthly
return, nor |
shall the amount of such penalty be less than $1,000. The
|
Department shall notify the State Commission of the |
Department's approval or
disapproval of any such |
manufacturer's or importing distributor's bond, or
of the |
termination or cancellation of any such bond, or of the |
Department's
direction to a manufacturer or importing |
distributor that he must file
additional bond in order to |
comply with this Section. The Commission shall
not issue a |
license to any applicant for a manufacturer's or importing
|
distributor's license unless the Commission has received a |
notification
from the Department showing that such applicant |
has filed a satisfactory
bond with the Department hereunder and |
that such bond has been approved by
the Department. Failure by |
any licensed manufacturer or importing
distributor to keep a |
satisfactory bond in effect with the Department or to
furnish |
additional bond to the Department, when required hereunder by |
|
the
Department to do so, shall be grounds for the revocation or |
suspension of
such manufacturer's or importing distributor's |
license by the Commission.
If a manufacturer or importing |
distributor fails to pay any amount due
under this Article, his |
bond with the Department shall be deemed forfeited,
and the |
Department may institute a suit in its own name on such bond.
|
After notice and opportunity for a hearing the State |
Commission may
revoke or suspend the license of any |
manufacturer or importing distributor
who fails to comply with |
the provisions of this Section. Notice of such
hearing and the |
time and place thereof shall be in writing and shall
contain a |
statement of the charges against the licensee. Such notice may |
be
given by United States registered or certified mail with |
return receipt
requested, addressed to the person concerned at |
his last known address and
shall be given not less than 7 days |
prior to the date fixed for the
hearing. An order revoking or |
suspending a license under the provisions of
this Section may |
be reviewed in the manner provided in Section 7-10
of this Act. |
No new license shall be granted to a person
whose license has |
been revoked for a violation of this Section or, in case
of |
suspension, shall such suspension be terminated until he has |
paid to the
Department all taxes and penalties which he owes |
the State under the
provisions of this Act.
|
Every manufacturer or importing distributor who has, as |
verified by
the Department, continuously complied with the |
conditions of the bond under
this Act for a period of 2 years |
|
shall be considered to be a prior
continuous compliance |
taxpayer. In determining the consecutive period of
time for |
qualification as a prior continuous compliance taxpayer, any
|
consecutive period of time of qualifying compliance |
immediately prior to
the effective date of this amendatory Act |
of 1987 shall be credited to any
manufacturer or importing |
distributor.
|
A manufacturer or importing distributor that is a prior |
continuous compliance taxpayer under this Section and becomes a |
successor as the result of an acquisition, merger, or |
consolidation of a manufacturer or importing distributor shall |
be deemed to be a prior continuous compliance taxpayer with |
respect to the acquired, merged, or consolidated entity.
|
Every prior continuous compliance taxpayer shall be exempt |
from the bond
requirements of this Act until the Department has |
determined the taxpayer
to be delinquent in the filing of any |
return or deficient in the payment of
any tax under this Act. |
Any taxpayer who fails to pay an admitted or
established |
liability under this Act may also be required to post bond or
|
other acceptable security with the Department guaranteeing the |
payment of
such admitted or established liability.
|
The Department shall discharge any surety and shall release |
and return
any bond or security deposit assigned, pledged or |
otherwise provided to it
by a taxpayer under this Section |
within 30 days after: (1) such taxpayer
becomes a prior |
continuous compliance taxpayer; or (2) such taxpayer has
ceased |
|
to collect receipts on which he is required to remit tax to the
|
Department, has filed a final tax return, and has paid to the |
Department an
amount sufficient to discharge his remaining tax |
liability as determined by
the Department under this Act.
|
(Source: P.A. 100-1171, eff. 1-4-19.)
|
(235 ILCS 5/10-1) (from Ch. 43, par. 183)
|
Sec. 10-1. Violations; penalties. Whereas a substantial |
threat
to the sound and careful control, regulation, and |
taxation of the
manufacture, sale, and distribution of |
alcoholic liquors exists by virtue
of individuals who |
manufacture,
import, distribute, or sell alcoholic liquors |
within the State without
having first obtained a valid license |
to do so, and whereas such threat is
especially serious along |
the borders of this State, and whereas such threat
requires |
immediate correction by this Act, by active investigation and
|
prosecution by the State Commission, law enforcement |
officials, and prosecutors, and by prompt and
strict |
enforcement through the courts of this State to punish |
violators and
to deter such conduct in the future:
|
(a) Any person who manufactures, imports
for distribution |
or use, transports from outside this State into this State, or |
distributes or sells 108 liters (28.53 gallons) or more of |
wine, 45 liters (11.88 gallons) or more of distilled spirits, |
or 118 liters (31.17 gallons) or more of beer at any
place |
within the State without having first obtained a valid license |
|
to do
so under the provisions of this Act shall be guilty of a |
Class 4 felony for each offense. However, any person who was |
duly licensed under this Act and whose license expired within |
30 days prior to a violation shall be guilty of a business |
offense and fined not more than $1,000 for the first such |
offense and shall be guilty of a Class 4 felony for each |
subsequent offense.
|
Any person who manufactures, imports for distribution, |
transports from outside this State into this State for sale or |
resale in this State, or distributes or sells less than 108 |
liters (28.53 gallons) of wine, less than 45 liters (11.88 |
gallons) of distilled spirits, or less than 118 liters (31.17 |
gallons) of beer at any place within the State without having |
first obtained a valid license to do so under the provisions of |
this Act shall be guilty of a business offense and fined not |
more than $1,000 for the first such offense and shall be guilty |
of a Class 4 felony for each subsequent offense. This |
subsection does not apply to a motor carrier or freight |
forwarder, as defined in Section 13102 of Title 49 of the |
United States Code, an air carrier, as defined in Section 40102 |
of Title 49 of the United States Code, or a rail carrier, as |
defined in Section 10102 of Title 49 of the United States Code. |
Any person who: (1) both has been issued an initial cease |
and desist notice from the State Commission; and (2) for |
compensation, does any of the following: (i) ships alcoholic |
liquor into this State without a license authorized by Section |
|
5-1 issued by the State Commission or in violation of that |
license; or (ii) manufactures, imports for distribution, |
transports from outside this State into this State for sale or |
resale in this State, or distributes or sells alcoholic liquors |
at any place without having first obtained a valid license to |
do so is guilty of a Class 4 felony for each offense. |
(b) (1) Any retailer, caterer retailer, brew pub, special |
event retailer, special use permit holder, homebrewer special |
event permit holder, or craft distiller tasting permit holder |
who knowingly causes alcoholic liquors to be imported directly |
into the State of Illinois from outside of the State for the |
purpose of furnishing, giving, or selling to another, except |
when having received the product from a duly licensed |
distributor or importing distributor, licensed in this State, |
who knowingly causes to
furnish,
give, sell, or otherwise being |
within the State, any alcoholic liquor destined
to be used, |
distributed, consumed or sold in another state, unless such
|
alcoholic liquor was received in this State by a duly licensed |
distributor,
or importing distributors shall have his license |
suspended for 30 7 days for
the first offense and for the |
second offense, shall have his license
revoked by the |
Commission.
|
(2) In the event the State Commission receives a certified |
copy of a final order
from a foreign jurisdiction that an |
Illinois retail licensee has been found to
have violated that |
foreign jurisdiction's laws, rules, or regulations
concerning |
|
the importation of alcoholic liquor into that foreign |
jurisdiction,
the violation may be grounds for the State |
Commission to revoke, suspend, or refuse
to
issue or renew a |
license, to impose a fine, or to take any additional action
|
provided by this Act with respect to the Illinois retail |
license or licensee.
Any such action on the part of the State |
Commission shall be in accordance with this
Act and |
implementing rules.
|
For the purposes of paragraph (2): (i) "foreign |
jurisdiction" means a
state, territory, or possession of the |
United States, the District of Columbia,
or the Commonwealth of |
Puerto Rico, and (ii) "final order" means an order or
judgment |
of a court or administrative body that determines the rights of |
the
parties respecting the subject matter of the proceeding, |
that remains in full
force and effect, and from which no appeal |
can be taken.
|
(c) Any person who shall make any false statement or |
otherwise
violates any of the provisions of this Act in |
obtaining any license
hereunder, or who having obtained a |
license hereunder shall violate any
of the provisions of this |
Act with respect to the manufacture,
possession, distribution |
or sale of alcoholic liquor, or with respect to
the maintenance |
of the licensed premises, or shall violate any other
provision |
of this Act, shall for a first offense be guilty of a petty
|
offense and fined not more than $500, and for a second or |
subsequent
offense shall be guilty of a Class B misdemeanor.
|
|
(c-5) Any owner of an establishment that serves alcohol on |
its premises, if more than 50% of the establishment's gross |
receipts within the prior 3 months is from the sale of alcohol, |
who knowingly fails to prohibit concealed firearms on its |
premises or who knowingly makes a false statement or record to |
avoid the prohibition of concealed firearms on its premises |
under the Firearm Concealed Carry Act shall be guilty of a |
business offense with a fine up to $5,000. |
(d) Each day any person engages in business as a |
manufacturer,
foreign importer, importing distributor, |
distributor or retailer in
violation of the provisions of this |
Act shall constitute a separate offense.
|
(e) Any person, under the age of 21 years who, for the |
purpose
of buying, accepting or receiving alcoholic liquor from |
a
licensee, represents that he is 21 years of age or over shall |
be guilty
of a Class A misdemeanor.
|
(f) In addition to the penalties herein provided, any |
person
licensed as a wine-maker in either class who |
manufactures more wine than
authorized by his license shall be |
guilty of a business offense and shall be
fined $1 for each |
gallon so manufactured.
|
(g) A person shall be exempt from prosecution for a |
violation of this
Act if he is a peace officer in the |
enforcement of the criminal laws and
such activity is approved |
in writing by one of the following:
|
(1) In all counties, the respective State's Attorney;
|
|
(2) The Director of State Police under
Section 2605-10, |
2605-15, 2605-75, 2605-100, 2605-105, 2605-110,
2605-115, |
2605-120, 2605-130, 2605-140, 2605-190, 2605-200, |
2605-205, 2605-210,
2605-215, 2605-250, 2605-275, |
2605-300, 2605-305, 2605-315, 2605-325, 2605-335,
|
2605-340,
2605-350, 2605-355, 2605-360, 2605-365, |
2605-375, 2605-390, 2605-400, 2605-405,
2605-420,
|
2605-430, 2605-435, 2605-500, 2605-525, or 2605-550 of the |
Department of State
Police Law (20 ILCS 2605/2605-10, |
2605/2605-15, 2605/2605-75,
2605/2605-100, 2605/2605-105, |
2605/2605-110, 2605/2605-115,
2605/2605-120, |
2605/2605-130, 2605/2605-140, 2605/2605-190, |
2605/2605-200,
2605/2605-205, 2605/2605-210, |
2605/2605-215, 2605/2605-250, 2605/2605-275,
|
2605/2605-300,
2605/2605-305, 2605/2605-315, |
2605/2605-325, 2605/2605-335, 2605/2605-340,
|
2605/2605-350, 2605/2605-355, 2605/2605-360,
|
2605/2605-365, 2605/2605-375, 2605/2605-390,
|
2605/2605-400, 2605/2605-405, 2605/2605-420, |
2605/2605-430, 2605/2605-435,
2605/2605-500, |
2605/2605-525, or 2605/2605-550); or
|
(3) In cities over 1,000,000, the Superintendent of |
Police.
|
(Source: P.A. 98-63, eff. 7-9-13; 99-904, eff. 1-1-17.)
|
(235 ILCS 5/10-7.1) (from Ch. 43, par. 189.1)
|
|
Sec. 10-7.1.
The State Commission, upon receipt of a |
complaint or upon having
knowledge that any
person is engaged |
in the business as a manufacturer, importing distributor,
|
distributor, or retailer without a license or valid license, |
shall conduct an investigation. If, after conducting an |
investigation, the State Commission is satisfied that the |
alleged conduct occurred or is occurring, it may issue a cease |
and desist notice as provided in this Act, issue civil |
penalties as provided in this Act, notify
the Department of |
Revenue and the local liquor authority, or and file a
complaint |
with the State's Attorney's
Office of the County where the |
incident occurred or with the Attorney General initiate an
|
investigation with the appropriate
law enforcement officials.
|
(Source: P.A. 90-739, eff. 8-13-98.)
|
Section 99. Effective date. This Act takes effect upon |
becoming law, except that the changes to Section 8-2 of the |
Liquor Control Act of 1934 take effect
|
