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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. |
(2) To adopt such rules and regulations consistent with |
the
provisions of this Act which shall be necessary to |
carry on its
functions and duties to the end that the |
health, safety and welfare of
the People of the State of |
Illinois shall be protected and temperance in
the |
consumption of alcoholic liquors shall be fostered and |
promoted and
to distribute copies of such rules and |
regulations to all licensees
affected thereby.
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(3) To call upon other administrative departments of |
the State,
county and municipal governments, county and |
city police departments and
upon prosecuting officers for |
such information and assistance as it
deems necessary in |
the performance of its duties.
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(4) To recommend to local commissioners rules and |
regulations, not
inconsistent with the law, for the |
distribution and sale of alcoholic
liquors throughout the |
State.
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(5) To inspect, or cause to be inspected, any
premises |
in this State
where alcoholic liquors are manufactured, |
distributed, warehoused, or
sold. Nothing in this Act
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authorizes an agent of the Commission to inspect private
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areas within the premises without reasonable suspicion or a |
warrant
during an inspection. "Private areas" include, but |
are not limited to, safes, personal property, and closed |
desks.
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(5.1) Upon receipt of a complaint or upon having |
knowledge that any person
is engaged in business as a |
manufacturer, importing distributor, distributor,
or |
retailer without a license or valid license, to notify the |
local liquor
authority, file a complaint with the State's |
Attorney's Office of the county
where the incident |
occurred, or initiate an investigation with the |
appropriate
law enforcement officials.
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(5.2) To issue a cease and desist notice to persons |
shipping alcoholic
liquor
into this State from a point |
outside of this State if the shipment is in
violation of |
this Act.
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(5.3) To receive complaints from licensees, local |
officials, law
enforcement agencies, organizations, and |
persons stating that any licensee has
been or is violating |
any provision of this Act or the rules and regulations
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issued pursuant to this Act. Such complaints shall be in |
writing, signed and
sworn to by the person making the |
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complaint, and shall state with specificity
the facts in |
relation to the alleged violation. If the Commission has
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reasonable grounds to believe that the complaint |
substantially alleges a
violation of this Act or rules and |
regulations adopted pursuant to this Act, it
shall conduct |
an investigation. If, after conducting an investigation, |
the
Commission is satisfied that the alleged violation did |
occur, it shall proceed
with disciplinary action against |
the licensee as provided in this Act.
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(6) To hear and determine appeals from orders of a |
local commission
in accordance with the provisions of this |
Act, as hereinafter set forth.
Hearings under this |
subsection shall be held in Springfield or Chicago,
at |
whichever location is the more convenient for the majority |
of persons
who are parties to the hearing.
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(7) The commission shall establish uniform systems of |
accounts to be
kept by all retail licensees having more |
than 4 employees, and for this
purpose the commission may |
classify all retail licensees having more
than 4 employees |
and establish a uniform system of accounts for each
class |
and prescribe the manner in which such accounts shall be |
kept.
The commission may also prescribe the forms of |
accounts to be kept by
all retail licensees having more |
than 4 employees, including but not
limited to accounts of |
earnings and expenses and any distribution,
payment, or |
other distribution of earnings or assets, and any other
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forms, records and memoranda which in the judgment of the |
commission may
be necessary or appropriate to carry out any |
of the provisions of this
Act, including but not limited to |
such forms, records and memoranda as
will readily and |
accurately disclose at all times the beneficial
ownership |
of such retail licensed business. The accounts, forms,
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records and memoranda shall be available at all reasonable |
times for
inspection by authorized representatives of the |
State commission or by
any local liquor control |
commissioner or his or her authorized representative.
The |
commission, may, from time to time, alter, amend or repeal, |
in whole
or in part, any uniform system of accounts, or the |
form and manner of
keeping accounts.
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(8) In the conduct of any hearing authorized to be held |
by the
commission, to appoint, at the commission's |
discretion, hearing officers
to conduct hearings involving |
complex issues or issues that will require a
protracted |
period of time to resolve, to examine, or cause to be |
examined,
under oath, any licensee, and to examine or cause |
to be examined the books and
records
of such licensee; to |
hear testimony and take proof material for its
information |
in the discharge of its duties hereunder; to administer or
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cause to be administered oaths; for any such purpose to |
issue
subpoena or subpoenas to require the attendance of |
witnesses and the
production of books, which shall be |
effective in any part of this State, and
to adopt rules to |
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implement its powers under this paragraph (8).
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Any Circuit Court may by order duly entered,
require |
the attendance of witnesses and the production of relevant |
books
subpoenaed by the State commission and the court may |
compel
obedience to its order by proceedings for contempt.
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(9) To investigate the administration of laws in |
relation to
alcoholic liquors in this and other states and |
any foreign countries,
and to recommend from time to time |
to the Governor and through him or
her to the legislature |
of this State, such amendments to this Act, if any, as
it |
may think desirable and as will serve to further the |
general broad
purposes contained in Section 1-2 hereof.
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(10) To adopt such rules and regulations consistent |
with the
provisions of this Act which shall be necessary |
for the control, sale or
disposition of alcoholic liquor |
damaged as a result of an accident, wreck,
flood, fire or |
other similar occurrence.
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(11) To develop industry educational programs related |
to responsible
serving and selling, particularly in the |
areas of overserving consumers and
illegal underage |
purchasing and consumption of alcoholic beverages.
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(11.1) To license persons providing education and |
training to alcohol
beverage sellers and servers for |
mandatory and non-mandatory training under the
Beverage |
Alcohol Sellers and Servers
Education and Training |
(BASSET) programs and to develop and administer a public
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awareness program in Illinois to reduce or eliminate the |
illegal purchase and
consumption of alcoholic beverage |
products by persons under the age of 21.
Application for a |
license shall be made on forms provided by the State
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Commission.
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(12) To develop and maintain a repository of license |
and regulatory
information.
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(13) (Blank). On or before January 15, 1994, the |
Commission shall issue
a written report to the Governor and |
General Assembly that is to be based on a
comprehensive |
study of the impact on and implications for the State of |
Illinois
of Section 1926 of the federal ADAMHA |
Reorganization Act of 1992 (Public Law
102-321). This study |
shall address the extent to which Illinois currently
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complies with the provisions of P.L. 102-321 and the rules |
promulgated pursuant
thereto.
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As part of its report, the Commission shall provide the |
following essential
information:
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(i) the number of retail distributors of tobacco |
products, by type and
geographic area, in the State;
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(ii) the number of reported citations and |
successful convictions,
categorized by type and |
location of retail distributor, for violation of the
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Prevention of Tobacco Use by Minors and Sale and |
Distribution of Tobacco Products Act and the Smokeless
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Tobacco Limitation Act;
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(iii) the extent and nature of organized |
educational and governmental
activities that are |
intended to promote, encourage or otherwise secure
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compliance with any Illinois laws that prohibit the |
sale or distribution of
tobacco products to minors; and
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(iv) the level of access and availability of |
tobacco products to
individuals under the age of 18.
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To obtain the data necessary to comply with the |
provisions of P.L. 102-321
and the requirements of this |
report, the Commission shall conduct random,
unannounced |
inspections of a geographically and scientifically |
representative
sample of the State's retail tobacco |
distributors.
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The Commission shall consult with the Department of |
Public Health, the
Department of Human Services, the
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Illinois State Police and any
other executive branch |
agency, and private organizations that may have
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information relevant to this report.
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The Commission may contract with the Food and Drug |
Administration of the
U.S. Department of Health and Human |
Services to conduct unannounced
investigations of Illinois |
tobacco vendors to determine compliance with federal
laws |
relating to the illegal sale of cigarettes and smokeless |
tobacco products
to persons under the age of 18.
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(14) On or before April 30, 2008 and every 2 years
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thereafter, the Commission shall present a written
report |
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to the Governor and the General Assembly that shall
be |
based on a study of the impact of Public Act 95-634 on the |
business of soliciting,
selling, and shipping wine from |
inside and outside of this
State directly to residents of |
this State. As part of its
report, the Commission shall |
provide all of the
following information: |
(A) The amount of State excise and sales tax
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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 Commission shall conduct
alcohol |
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compliance operations to investigate whether
businesses |
that are soliciting, selling, and shipping wine
from inside |
or outside of this State directly to residents
of this |
State are licensed by this State or are selling or
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attempting to sell wine to persons under 21 years of age in
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violation of this Act. |
(16) The Commission shall, in addition to
notifying any |
appropriate law enforcement agency, submit
notices of |
complaints or violations of Sections 6-29 and
6-29.1 by |
persons who do not hold a winery shipper's
license under |
this Act to the Illinois Attorney General and
to the U.S. |
Department of Treasury's Alcohol and Tobacco Tax and Trade |
Bureau. |
(17)(A) A person licensed to make wine under the laws |
of another state who has a winery shipper's license under |
this Act and annually produces less than 25,000 gallons of |
wine or a person who has a first-class or second-class wine |
manufacturer's license, a first-class or second-class |
wine-maker's license, or a limited wine manufacturer's |
license under this Act and annually produces less than |
25,000 gallons of wine may make application to the |
Commission for a self-distribution exemption to allow the |
sale of not more than 5,000 gallons of the exemption |
holder's wine to retail licensees per year. |
(B) In the application, which shall be sworn under |
penalty of perjury, such person shall state (1) the date it |
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was established; (2) its volume of production and sales for |
each year since its establishment; (3) its efforts to |
establish distributor relationships; (4) that a |
self-distribution exemption is necessary to facilitate the |
marketing of its wine; and (5) that it will comply with the |
liquor and revenue laws of the United States, this State, |
and any other state where it is licensed. |
(C) The Commission shall approve the application for a |
self-distribution exemption if such person: (1) is in |
compliance with State revenue and liquor laws; (2) is not a |
member of any affiliated group that produces more than |
25,000 gallons of wine per annum or produces any other |
alcoholic liquor; (3) will not annually produce for sale |
more than 25,000 gallons of wine; and (4) will not annually |
sell more than 5,000 gallons of its wine to retail |
licensees. |
(D) A self-distribution exemption holder shall |
annually certify to the Commission its production of wine |
in the previous 12 months and its anticipated production |
and sales for the next 12 months. The Commission may fine, |
suspend, or revoke a self-distribution exemption after a |
hearing if it finds that the exemption holder has made a |
material misrepresentation in its application, violated a |
revenue or liquor law of Illinois, exceeded production of |
25,000 gallons of wine in any calendar year, or become part |
of an affiliated group producing more than 25,000 gallons |
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of wine or any other alcoholic liquor. |
(E) Except in hearings for violations of this Act or |
Public Act 95-634 or a bona fide investigation by duly |
sworn law enforcement officials, the Commission, or its |
agents, the Commission shall maintain the production and |
sales information of a self-distribution exemption holder |
as confidential and shall not release such information to |
any person. |
(F) The Commission shall issue regulations governing |
self-distribution exemptions consistent with this Section |
and this Act. |
(G) Nothing in this subsection (17) shall prohibit a |
self-distribution exemption holder from entering into or |
simultaneously having a distribution agreement with a |
licensed Illinois distributor. |
(H) It is the intent of this subsection (17) to promote |
and continue orderly markets. The General Assembly finds |
that in order to preserve Illinois' regulatory |
distribution system it is necessary to create an exception |
for smaller makers of wine as their wines are frequently |
adjusted in varietals, mixes, vintages, and taste to find |
and create market niches sometimes too small for |
distributor or importing distributor business strategies. |
Limited self-distribution rights will afford and allow |
smaller makers of wine access to the marketplace in order |
to develop a customer base without impairing the integrity |
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of the 3-tier system.
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(18)(A) A class 1 brewer licensee, who must also be |
either a licensed brewer or licensed non-resident dealer |
and annually manufacture less than 930,000 gallons of beer, |
may make application to the State Commission for a |
self-distribution exemption to allow the sale of not more |
than 232,500 gallons of the exemption holder's beer to |
retail licensees per year. |
(B) In the application, which shall be sworn under |
penalty of perjury, the class 1 brewer licensee shall state |
(1) the date it was established; (2) its volume of beer |
manufactured and sold for each year since its |
establishment; (3) its efforts to establish distributor |
relationships; (4) that a self-distribution exemption is |
necessary to facilitate the marketing of its beer; and (5) |
that it will comply with the alcoholic beverage and revenue |
laws of the United States, this State, and any other state |
where it is licensed. |
(C) Any application submitted shall be posted on the |
State Commission's website at least 45 days prior to action |
by the State Commission. The State Commission shall approve |
the application for a self-distribution exemption if the |
class 1 brewer licensee: (1) is in compliance with the |
State, revenue, and alcoholic beverage laws; (2) is not a |
member of any affiliated group that manufactures more than |
930,000 gallons of beer per annum or produces any other |
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alcoholic beverages; (3) shall not annually manufacture |
for sale more than 930,000 gallons of beer; (4) shall not |
annually sell more than 232,500 gallons of its beer to |
retail licensees; and (5) has relinquished any brew pub |
license held by the licensee, including any ownership |
interest it held in the licensed brew pub. |
(D) A self-distribution exemption holder shall |
annually certify to the State Commission its manufacture of |
beer during the previous 12 months and its anticipated |
manufacture and sales of beer for the next 12 months. The |
State Commission may fine, suspend, or revoke a |
self-distribution exemption after a hearing if it finds |
that the exemption holder has made a material |
misrepresentation in its application, violated a revenue |
or alcoholic beverage law of Illinois, exceeded the |
manufacture of 930,000 gallons of beer in any calendar year |
or became part of an affiliated group manufacturing more |
than 930,000 gallons of beer or any other alcoholic |
beverage. |
(E) The State Commission shall issue rules and |
regulations governing self-distribution exemptions |
consistent with this Act. |
(F) Nothing in this paragraph (18) shall prohibit a |
self-distribution exemption holder from entering into or |
simultaneously having a distribution agreement with a |
licensed Illinois importing distributor or a distributor. |
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If a self-distribution exemption holder enters into a |
distribution agreement and has assigned distribution |
rights to an importing distributor or distributor, then the |
self-distribution exemption holder's distribution rights |
in the assigned territories shall cease in a reasonable |
time not to exceed 60 days. |
(G) It is the intent of this paragraph (18) to promote |
and continue orderly markets. The General Assembly finds |
that in order to preserve Illinois' regulatory |
distribution system, it is necessary to create an exception |
for smaller manufacturers in order to afford and allow such |
smaller manufacturers of beer access to the marketplace in |
order to develop a customer base without impairing the |
integrity of the 3-tier system. |
(b) On or before April 30, 1999, the Commission shall |
present a written
report to the Governor and the General |
Assembly that shall be based on a study
of the impact of Public |
Act 90-739 on the business of soliciting,
selling, and shipping
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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; |
100-134, eff. 8-18-17; 100-201, eff. 8-18-17.)
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(235 ILCS 5/5-6)
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Sec. 5-6. FDA grant funds. Grant funds received from the |
Food and Drug
Administration of the U.S. Department of Health |
and Human Services for
conducting unannounced investigations |
of Illinois tobacco vendors shall be
deposited into the Dram |
Shop Fund until June 30, 2018.
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(Source: P.A. 90-9, eff. 7-1-97.)
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Section 99. Effective date. This Act takes effect upon |
becoming law.
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