Public Act 098-0010
 
SB0724 EnrolledLRB098 04929 MGM 34959 b



    AN ACT concerning liquor.

 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly: 

 
    Section 5. The Liquor Control Act of 1934 is amended  by 
changing Sections 4-2 and 6-2 as follows:
 



    (235 ILCS 5/4-2)  (from Ch. 43, par. 111)



    Sec. 4-2. The mayor or president of the board of trustees  
of each city,
village or incorporated town or his or her 
designee, and the president or chairman of the county
board or 
his or her designee, shall be the local liquor control 
commissioner for their respective
cities, villages, 
incorporated towns and counties, and shall be charged
with the 
administration in their respective jurisdictions of the

appropriate provisions of this Act and of such ordinances and 
resolutions
relating to alcoholic liquor as may be enacted; but 
the authority of the
president or chairman of the county board 
or his or her designee shall extend only to that area in
any 
county which lies outside the corporate limits of the cities, 
villages
and incorporated towns therein and those areas which 
are owned by the
county and are within the corporate limits of 
the cities, villages and
incorporated towns with a population 
of less than 1,000,000, however, such
county shall comply with 
the operating rules of the municipal ordinances
affected when 
issuing their own licenses.

    However, such mayor, president of the board of trustees or 
president or
chairman of the county board or his or her 
designee may appoint a person or persons to assist him
in the 
exercise of the powers and the performance of the duties herein

provided for such local liquor control commissioner. 
    Notwithstanding any other provision of this Section to the 
contrary, the mayor of a city with a population of 55,000 
50,000 or less or the president of a village with a population 
of 55,000 50,000 or less that has an interest in the 
manufacture, sale, or distribution of alcoholic liquor must 
direct the council or board over which he or she presides to 
appoint, by majority vote, a person other than him or her to 
serve as the local liquor control commissioner.  The appointment 
must be made within 30 days from the day on which the mayor or 
president takes office, and the mayor or president cannot make 
nominations or serve any other role in the appointment.  To 
prevent any conflict of interest, the mayor or president with 
the interest in the manufacture, sale, or distribution of 
alcoholic liquor shall not participate in any meetings, 
hearings, or decisions on matters impacting the manufacture, 
sale, or distribution of alcoholic liquor.  Further, the 
appointee (i) shall be an attorney with an active license to 
practice law in the State of Illinois, (ii) shall not legally 
represent liquor license applicants or holders before the 
jurisdiction over which he or she presides as local liquor 
control commissioner or before an adjacent jurisdiction, (iii) 
shall not have an interest in the manufacture, sale, or 
distribution of alcoholic liquor, and (iv) shall not be 
appointed to a term to exceed the term of the mayor, president, 
or members of the council or board. 

(Source: P.A. 97-1059, eff. 8-24-12.)

 


    (235 ILCS 5/6-2)  (from Ch. 43, par. 120)



    Sec. 6-2. Issuance of licenses to certain persons 
prohibited. 

    (a) Except as otherwise provided in subsection (b) of this 
Section and in paragraph (1) of subsection (a) of Section 3-12, 
no license
of any kind issued by the State Commission or any 
local
commission shall be issued to:


        (1) A person who is not a resident of any city, village 
    or county in
which the premises covered by the license are 
    located; except in case of
railroad or boat licenses.


        (2) A person who is not of good character and 
    reputation in the
community in which he resides.


        (3) A person who is not a citizen of the United States.


        (4) A person who has been convicted of a felony under 
    any Federal or
State law, unless the Commission determines 
    that such
person has been sufficiently rehabilitated to 
    warrant the public trust
after considering matters set 
    forth in such person's application and the
Commission's 
    investigation.  The burden of proof of sufficient

    rehabilitation shall be on the applicant.


        (5) A person who has been convicted of keeping a place 
    of prostitution or keeping a place of juvenile 
    prostitution, promoting prostitution that involves keeping 
    a place of prostitution, or promoting juvenile 
    prostitution that involves keeping a place of juvenile 
    prostitution.


        (6) A person who has been convicted of pandering or 
    other crime or
misdemeanor opposed to decency and morality.


        (7) A person whose license issued under this Act has 
    been revoked for
cause.


        (8) A person who at the time of application for renewal 
    of any license
issued hereunder would not be eligible for 
    such license upon a first
application.


        (9) A copartnership, if any general partnership 
    thereof, or any
limited partnership thereof, owning more 
    than 5% of the aggregate limited
partner interest in such 
    copartnership would not be eligible to receive a
license 
    hereunder for any reason other than residence within the 
    political
subdivision, unless residency is required by 
    local ordinance.


        (10) A corporation or limited liability company, if any 
    member, officer, manager or director thereof, or
any 
    stockholder or stockholders owning in the aggregate more 
    than 5% of the
stock of such corporation, would not be 
    eligible to receive a license
hereunder for any reason 
    other than citizenship and residence within the
political 
    subdivision.


        (10a) A corporation or limited liability company 
    unless it is incorporated or organized in Illinois, or 
    unless it
is a foreign corporation or foreign limited 
    liability company which is qualified under the Business

    Corporation Act of 1983 or the Limited Liability Company 
    Act to transact business in Illinois. The Commission shall 
    permit and accept from an applicant for a license under 
    this Act proof prepared from the Secretary of State's 
    website that the corporation or limited liability company 
    is in good standing and is qualified under the Business

    Corporation Act of 1983 or the Limited Liability Company 
    Act to transact business in Illinois.



        (11) A person whose place of business is conducted by a 
    manager or agent
unless the manager or agent possesses the 
    same qualifications required by
the licensee.


        (12) A person who has been convicted of a violation of 
    any Federal or
State law concerning the manufacture, 
    possession or sale of alcoholic
liquor, subsequent to the 
    passage of this Act or has forfeited his bond to
appear in 
    court to answer charges for any such violation.


        (13) A person who does not beneficially own the 
    premises for which a
license is sought, or does not have a 
    lease thereon for the full period for
which the license is 
    to be issued.


        (14) Any law enforcing public official, including 
    members
of local liquor control commissions,
any mayor, 
    alderman, or member of the
city council or commission, any 
    president of the village board of trustees,
any member of a 
    village board of trustees, or any president or member of a

    county board; and no such official shall have a direct 
    interest in the
manufacture, sale, or distribution of 
    alcoholic liquor, except that a
license
may be granted to 
    such official in relation to premises that are
not
located 
    within the territory subject to the jurisdiction of that 
    official
if the issuance of such license is approved by the 
    State Liquor Control
Commission
and except that a license 
    may be granted, in a city or village with a
population of 
    55,000 50,000 or less, to any alderman, member of a city 
    council, or
member of a village board of trustees in 
    relation to premises that are located
within the territory

    subject to the jurisdiction of that official if (i) the 
    sale of alcoholic
liquor pursuant to the license is 
    incidental to the selling of food, (ii) the
issuance of the 
    license is approved by the State Commission, (iii) the

    issuance of the license is in accordance with all 
    applicable local ordinances
in effect where the premises 
    are located, and (iv) the official granted a
license does 
    not vote on alcoholic liquor issues pending before the 
    board or
council to which the license holder is elected. 
    Notwithstanding any provision of this paragraph (14) to the 
    contrary, an alderman or member of a city council or 
    commission, a member of a village board of trustees other 
    than the president of the village board of trustees, or a 
    member of a county board other than the president of a 
    county board may have a direct interest in the manufacture, 
    sale, or distribution of alcoholic liquor as long as he or 
    she is not a law enforcing public official, a mayor, a 
    village board president, or president of a county board. To 
    prevent any conflict of interest, the elected official with 
    the direct interest in the manufacture, sale, or 
    distribution of alcoholic liquor shall not participate in 
    any meetings, hearings, or decisions on matters impacting 
    the manufacture, sale, or distribution of alcoholic 
    liquor. Furthermore, the mayor of a city with a population 
    of 55,000 50,000 or less or the president of a village with 
    a population of 55,000 50,000 or less may have an interest 
    in the manufacture, sale, or distribution of alcoholic 
    liquor as long as the council or board over which he or she 
    presides has made a local liquor control commissioner 
    appointment that complies with the requirements of Section 
    4-2 of this Act. 


        (15) A person who is not a beneficial owner of the 
    business to be
operated by the licensee.


        (16) A person who has been convicted of a gambling 
    offense as
proscribed by any of subsections (a) (3) through 
    (a)
(11) of
Section 28-1 of, or as
proscribed by Section 
    28-1.1 or 28-3 of, the Criminal Code of
1961 or the 
    Criminal Code of 2012, or as proscribed by a
statute

    replaced by any of the aforesaid statutory provisions.


        (17) A person or entity to whom a federal wagering 
    stamp has been
issued by the
federal government, unless the 
    person or entity is eligible to be issued a
license under 
    the Raffles Act or the Illinois Pull Tabs and Jar Games 
    Act.


        (18) A person who intends to sell alcoholic liquors for 
    use or
consumption on his or her licensed retail premises 
    who does not have liquor
liability insurance coverage for 
    that premises in an amount that is at least
equal to the 
    maximum liability amounts set out in subsection (a) of 
    Section
6-21.

    (b) A criminal conviction of a corporation is not grounds 
for the
denial, suspension, or revocation of a license applied 
for or held by the
corporation if the criminal conviction was 
not the result of a violation of any
federal or State law 
concerning the manufacture, possession or sale of
alcoholic 
liquor, the offense that led to the conviction did not result 
in any
financial gain to the corporation and the corporation 
has terminated its
relationship with each director, officer, 
employee, or controlling shareholder
whose actions directly 
contributed to the conviction of the corporation. The

Commission shall determine if all provisions of this subsection 
(b) have been
met before any action on the corporation's 
license is initiated.

(Source: P.A. 96-1551, eff. 7-1-11; 97-1059, eff. 8-24-12; 
97-1150, eff. 1-25-13.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.