SB3021 100TH GENERAL ASSEMBLY

LRB100 18566 RPS 33786 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3021

Introduced 2/15/2018, by Sen. Antonio Muņoz

SYNOPSIS AS INTRODUCED:

235 ILCS 5/6-8	from Ch. 43, par. 125
235 ILCS 5/6-15.1 new
235 ILCS 5/6-17.5 new
235 ILCS 5/6-31
235 ILCS 5/6-40 new
235 ILCS 5/7-6	from Ch. 43, par. 150

Amends the Liquor Control Act of 1934. Requires each manufacturer, importing distributor, foreign importer, and retailer to maintain certain records. Adds provisions authorizing an in-state or out-of-state maker of beer or wine to sell its own manufactured beer or wine directly to retail license holders if certain conditions are met. Provides that food service in buildings of golf courses owned by municipalities or park districts does not require certain kitchen and dining room equipment. Adds provisions concerning the sale of alcoholic liquor from mini bars in hotels and motels. Provides that a non-licensee wishing to conduct a tasting must register with the Illinois Liquor Control Commission and specifies requirements for registration and fees. Provides that the provisions of the Illinois Administrative Procedure Act concerning procedures in contested cases and licensing matters shall be applicable in all proceedings before the State Commission on citations. Adds provisions concerning ex parte communications and judicial review. Makes other changes. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

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 6-8, 6-31, and 7-6 and by adding Sections 6-15.1, 6-17.5, and 6-40 as follows:

(235 ILCS 5/6-8) (from Ch. 43, par. 125)

Sec. 6-8. Record keeping.

(a) Each manufacturer or importing distributor or foreign importer shall keep an accurate record of all alcoholic liquors manufactured, distributed, sold, used, or delivered by him in this State during each month, showing therein to whom sold, and shall furnish a copy thereof or a report thereon to the State Commission, as the State Commission may, request.

Each importing distributor or manufacturer to whom alcoholic liquors imported into this State have been consigned shall effect possession and physical control thereof by storing such alcoholic liquors in the premises wherein such importing distributor or manufacturer is licensed to engage in such business as an importing distributor or manufacturer and to make such alcoholic liquors together with accompanying invoices, bills of lading and receiving tickets available for inspection by an agent or representative of the Department of Revenue and of the State Commission.

All alcoholic liquor imported into this State must be off-loaded from the common carrier, vehicle, or mode of transportation by which the alcoholic liquor was delivered into this State. The alcoholic liquor shall be stored at the licensed premises of the importing distributor before sale and delivery to licensees in this State. A distributor or importing distributor, upon application to the Commission, may secure a waiver of the provisions of this Section for purposes of delivering beer directly to a licensee holding or otherwise participating in a special event sponsored by a unit of government or a not-for-profit organization.

(b) It is the duty of each manufacturer, importing distributor, distributor, and foreign importer to keep at all times complete and accurate records of all purchases and all sales or other dispositions of alcoholic liquor and complete and accurate records of alcoholic liquor produced, manufactured, compounded, or imported, whether for the licensee or for another. All books and records that manufacturers, distributors, importing distributors, and foreign importers are required by this Act to keep shall be preserved for a period of 3 years, unless the State Commission in writing authorizes their destruction or disposal at an earlier date.

(c) Each manufacturer, importing distributor, distributor, and foreign importer shall retain invoices and bills of lading covering sales of alcoholic liquors.

(d) Each manufacturer, distributor, importing distributor, and foreign importer must, at the time of sale of any alcoholic liquor, render to the purchaser an invoice describing the alcoholic liquor sold, the date of sale, to whom the alcoholic liquor was sold, and the quantity sold. Duplicate copies of all such invoices must be made and preserved by the manufacturer, distributor, importing distributor, or foreign importer for audit purposes.

(e) Each manufacturer, distributor, importing distributor, and foreign importer shall keep a ledger or other record giving the name, license number and expiration date, and address of each purchaser of alcoholic liquor and information concerning each purchase, including the invoice number, date of sale, amount of sale, and date of payment therefor.

(f) It is the duty of each retail licensee to keep on the licensed premises invoices, or copies thereof, covering purchases of alcoholic liquor for a period of 90 days after such purchase, unless the State Commission has granted a waiver in response to a written request in cases where books and records are kept at a central business location within the State. If a licensee is granted a waiver, the licensee shall have at each location a copy of the waiver granting permission to have the invoices located at a central business location. A copy of the waiver must be available for inspection at the location of the business within 30 days after the date of the signed waiver. An administrative fee of $10 per location, up to a maximum of $100 for businesses with multiple locations of 10 or more, shall be assessed. Before any change is made in the central business location where the invoices are to be kept, the State Commission must be notified and a new waiver request form must be submitted to the State Commission for prior approval. The waiver remains in effect unless and until a new waiver request has been approved by the State Commission. The State Commission may require periodic updates.

(Source: P.A. 88-535.)

(235 ILCS 5/6-15.1 new)

Sec. 6-15.1. Food service; golf courses. Food service in buildings of golf courses owned by municipalities or park districts does not require the kitchen and dining room equipment specified in Section 1-3.23 of this Act.

(235 ILCS 5/6-17.5 new)

Sec. 6-17.5. Direct sale to retail licensees.

(a) An in-state or out-of-state maker of wine may sell its own manufactured wine directly to retail license holders if:

(1) the in-state or out-of-state maker of wine has been issued a federal Basic Permit to make wine by the Alcohol Tax and Trade Bureau of the United States Department of the Treasury;

(2) the in-state or out-of-state maker of wine has been issued a valid wine making license by a licensing authority of any state or territory of the United States;

(3) the in-state or out-of-state maker of wine does not hold any other manufacturer's license to make any other type of alcoholic liquor;

(4) the in-state or out-of-state maker of wine and its officers, managers, partners, owners who own more than 5% of the maker of wine, and any other affiliated entity or individual person annually produce less than 25,000 gallons of wine;

(5) the in-state or out-of-state maker of wine and its officers, managers, partners, owners who own more than 5% of the maker of wine, and any other affiliated entity or individual person annually sell 5,000 gallons of wine or less direct to retailers;

(6) the in-state or out-of-state maker of wine pays all necessary State excise taxes for the manufacture and importation of wine; and

(7) the out-of-state maker of wine holds a valid winery shipper's license under this Act prior to the issuance of a self-distribution exemption and at all times while self-distributing.

(b) An in-state or out-of-state maker of beer may sell its own manufactured beer directly to retail license holders if:

(1) the in-state or out-of-state maker of beer has been issued a federal Brewer's Notice to make beer by the Alcohol Tax and Trade Bureau of the United States Department of the Treasury;

(2) the in-state or out-of-state maker of beer has been issued a valid beer making license by a licensing authority of any state or territory of the United States;

(3) the in-state or out-of-state maker of beer has been issued a brewer license under this Act or a non-resident dealer license under this Act;

(4) the in-state or out-of-state maker of beer does not hold any other manufacturer's license to make any other type of alcoholic liquor;

(5) the in-state or out-of-state maker of beer and any of its officers, managers, partners, owners who own more than 5% of the brewer, and any other affiliated entity or individual person annually produces less than 930,000 gallons (30,000 barrels) of beer;

(6) the in-state or out-of-state maker of beer and any of its officers, managers, partners, owners who own more than 5% of the brewer, and any other affiliated entity or individual person annually sells not more than 232,500 gallons (7,500 barrels) of beer direct to retailers;

(7) the in-state or out-of-state maker of beer pays all necessary State excise taxes for the manufacture and importation of beer;

(8) the in-state or out-of-state maker of beer submits an affidavit in accordance with item (3) of subparagraph (B) of paragraph (18) of subsection (a) of Section 3-12 demonstrating with specific evidence its efforts to contact distributors for the purpose of establishing distributor relationships.

(235 ILCS 5/6-31)

Sec. 6-31. Product sampling.

(a) Retailer, distributor, importing distributor, manufacturer and nonresident dealer licensees may conduct product sampling for consumption at a licensed retail location. Up to 3 samples, consisting of no more than (i) 1/4 ounce of distilled spirits, (ii) one ounce of wine, or (iii) 2 ounces of beer may be served to a consumer in one day.

(b) Notwithstanding the provisions of subsection (a), an on-premises retail licensee may offer for sale and serve more than one drink per person for sampling purposes. In any event, all provisions of Section 6-28 shall apply to an on-premises retail licensee that conducts product sampling.

(c) A craft distiller tasting permit licensee may conduct product sampling of distilled spirits for consumption at the location specified in the craft distiller tasting permit license. Up to 3 samples, consisting of no more than 1/4 ounce of distilled spirits, may be served to a consumer in one day.

(d) Any non-licensee wishing to conduct a tasting, as defined in 11 Ill. Adm. Code 100.10, must register with the State Commission. A registered tasting representative acts as the agent of the licensee.

The non-licensee may register by submitting a State Commission form, including the name, address, social security number, and telephone number of the registrant; the name, address, and telephone number of the licensee for which the registrant will be acting and any other licensee being represented; and a $100 administrative fee payable annually to the State Commission. Registration shall be completed at least 14 days before the initial tasting. If an application is received less than 14 days before the initial tasting, the applicant shall be assessed a $25 late fee. An applicant must meet the eligibility requirements under Section 6-2.

The registration identification, or a copy thereof, must be available for inspection during a tasting.

(e) If a retailer conducts an alcoholic liquor product sampling in which the consumer pays a reasonable entrance fee in relation to the amount of alcoholic liquor available for tasting or sampling, the retailer must charge a uniform admission price and may not treat patrons differently.

(Source: P.A. 99-46, eff. 7-15-15; 99-902, eff. 8-26-16.)

(235 ILCS 5/6-40 new)

Sec. 6-40. Sale of alcohol from a mini bar in a hotel or motel. To sell alcoholic liquor from a mini bar in a hotel or a motel, the hotel or motel must:

(1) possess a valid local and State retail liquor license for the entire hotel or motel or as the local commission deems necessary;

(2) establish a method of control to prevent the use of the mini bar as a means of over-service or consumption of alcohol by a person under the age of 21; and

(3) comply with all applicable provisions of this Act, rules of the State Commission, and local liquor control ordinances.

(235 ILCS 5/7-6) (from Ch. 43, par. 150)

Sec. 7-6. (a) All proceedings for the revocation or suspension of licenses of manufacturers, distributors, importing distributors, non-resident dealers, foreign importers, non-beverage users, railroads, airplanes and boats shall be before the State Commission. All such proceedings and all proceedings for the revocation or suspension of a retailer's license before the State commission shall be in accordance with rules and regulations established by it not inconsistent with law. However, no such license shall be so revoked or suspended except after a hearing by the State commission with reasonable notice to the licensee served by registered or certified mail with return receipt requested at least 10 days prior to the hearings at the last known place of business of the licensee and after an opportunity to appear and defend. Such notice shall specify the time and place of the hearing, the nature of the charges, the specific provisions of the Act and rules violated, and the specific facts supporting the charges or violation. The findings of the Commission shall be predicated upon competent evidence. The revocation of a local license shall automatically result in the revocation of a State license. Upon notification by the Illinois Department of Revenue, the State Commission, in accordance with Section 3-12, may refuse the issuance or renewal of a license, fine a licensee, or suspend or revoke any license issued by the State Commission if the licensee or license applicant has violated the provisions of Section 3 of the Retailers' Occupation Tax Act. All procedures for the suspension or revocation of a license, as enumerated above, are applicable to the levying of fines for violations of this Act or any rule or regulation issued pursuant thereto.

(b) Pursuant to Sections 3-12, 3-13, and 7-6 of this Act and the Illinois Administrative Procedure Act, the provisions of the Illinois Administrative Procedure Act concerning procedures in contested cases and licensing matters shall be applicable in all proceedings on citations before the State Commission.

(c) Pursuant to Sections 3-12 and 3-13 of this Act and Section 10-60 of the Illinois Administrative Procedure Act, except in the disposition of matters that they are authorized by law to entertain or dispose of on an ex parte basis, neither State Commission members, Department of Revenue employees assigned to State Commission functions, nor hearing examiners shall, after notice of hearing in a contested case or licensing to which the procedures of a contested case apply under this Act, communicate, directly or indirectly, in connection with any issue of fact, with any person or party, or in connection with any other issue with any party or representative of such party, except upon notice and opportunity for all parties to participate. However, a State Commission member may communicate with other members of the State Commission or employees of the Department of Revenue, and a State Commission member, Department of Revenue employee, or hearing examiner may have the aid and advice of one or more personal assistants.

(d) Pursuant to Section 7-11 of this Act and Section 3-109 of the Administrative Review Law, any party seeking judicial review of any order of the State Commission shall pay the cost of the transcripts of such hearings conducted by the Commission, which shall become a part of the official record. The party requesting administrative review in the Circuit Court shall pay to the State Commission the costs of preparing and certifying the record of the proceedings before the State Commission. Failure to make that payment prior to the time the State Commission's answer to the complaint is due shall relieve the State Commission of the necessity of filing the answer required in Section 3-108 of the Administrative Review Law and shall be authority for the entry of an order by the court, on motion therefor by the Commission, dismissing the complaint with costs.

(Source: P.A. 95-331, eff. 8-21-07.)

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