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91_SB0402
LRB9105019LDmbA
1 AN ACT to amend the Liquor Control Act of 1934 by
2 changing Section 6-2 and adding Section 6-9.1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Liquor Control Act of 1934 is amended by
6 changing Section 6-2 and adding Section 6-9.1 as follows:
7 (235 ILCS 5/6-2) (from Ch. 43, par. 120)
8 Sec. 6-2. Issuance of licenses to certain persons
9 prohibited.
10 (a) Except as otherwise provided in subsection (b), no
11 license of any kind issued by the State Commission or any
12 local commission shall be issued to:
13 (1) A person who is not a resident of any city,
14 village or county in which the premises covered by the
15 license are located; except in case of railroad or boat
16 licenses;
17 (2) A person who is not of good character and
18 reputation in the community in which he resides;
19 (3) A person who is not a citizen of the United
20 States;
21 (4) A person who has been convicted of a felony
22 under any Federal or State law, unless the Commission
23 determines that such person has been sufficiently
24 rehabilitated to warrant the public trust after
25 considering matters set forth in such person's
26 application and the Commission's investigation. The
27 burden of proof of sufficient rehabilitation shall be on
28 the applicant;
29 (5) A person who has been convicted of being the
30 keeper or is keeping a house of ill fame;
31 (6) A person who has been convicted of pandering or
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1 other crime or misdemeanor opposed to decency and
2 morality;
3 (7) A person whose license issued under this Act
4 has been revoked for cause;
5 (8) A person who at the time of application for
6 renewal of any license issued hereunder would not be
7 eligible for such license upon a first application;
8 (9) A copartnership, if any general partnership
9 thereof, or any limited partnership thereof, owning more
10 than 5% of the aggregate limited partner interest in such
11 copartnership would not be eligible to receive a license
12 hereunder for any reason other than residence within the
13 political subdivision, unless residency is required by
14 local ordinance;
15 (10) A corporation, if any officer, manager or
16 director thereof, or any stockholder or stockholders
17 owning in the aggregate more than 5% of the stock of such
18 corporation, would not be eligible to receive a license
19 hereunder for any reason other than citizenship and
20 residence within the political subdivision;
21 (10a) A corporation unless it is incorporated in
22 Illinois, or unless it is a foreign corporation which is
23 qualified under the Business Corporation Act of 1983 to
24 transact business in Illinois;
25 (11) A person whose place of business is conducted
26 by a manager or agent unless the manager or agent
27 possesses the same qualifications required by the
28 licensee;
29 (12) A person who has been convicted of a violation
30 of any Federal or State law concerning the manufacture,
31 possession or sale of alcoholic liquor, subsequent to the
32 passage of this Act or has forfeited his bond to appear
33 in court to answer charges for any such violation;
34 (13) A person who does not beneficially own the
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1 premises for which a license is sought, or does not have
2 a lease thereon for the full period for which the license
3 is to be issued;
4 (14) Any law enforcing public official, including
5 members of local liquor control commissions, any mayor,
6 alderman, or member of the city council or commission,
7 any president of the village board of trustees, any
8 member of a village board of trustees, or any president
9 or member of a county board; and no such official shall
10 be interested directly in the manufacture, sale or
11 distribution of alcoholic liquor, except that license may
12 be granted to such official in relation to premises which
13 are not located within the territory subject to the
14 jurisdiction of that official if the issuance of such
15 license is approved by the State Liquor Control
16 Commission;
17 (15) A person who is not a beneficial owner of the
18 business to be operated by the licensee;
19 (16) A person who has been convicted of a gambling
20 offense as proscribed by any of subsections (a) (3)
21 through (a) (11) of Section 28-1 of, or as proscribed by
22 Section 28-1.1 or 28-3 of, the Criminal Code of 1961, or
23 as proscribed by a statute replaced by any of the
24 aforesaid statutory provisions;
25 (17) A person or entity to whom a federal wagering
26 stamp has been issued by the federal government, unless
27 the person or entity is eligible to be issued a license
28 under the Raffles Act or the Illinois Pull Tabs and Jar
29 Games Act;.
30 (18) A person, if required to register pursuant to
31 and in accordance with Section 6-9 of this Act, who has
32 failed to submit all required registration statements
33 with the Commission;
34 (19) A person, if governed by Section 6-9.1 of this
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1 Act, who has failed to submit the required verified
2 statement under Section 6-9.1 to the Commission.
3 (b) A criminal conviction of a corporation is not
4 grounds for the denial, suspension, or revocation of a
5 license applied for or held by the corporation if the
6 criminal conviction was not the result of a violation of any
7 federal or State law concerning the manufacture, possession
8 or sale of alcoholic liquor, the offense that led to the
9 conviction did not result in any financial gain to the
10 corporation and the corporation has terminated its
11 relationship with each director, officer, employee, or
12 controlling shareholder whose actions directly contributed to
13 the conviction of the corporation. The Commission shall
14 determine if all provisions of this subsection (b) have been
15 met before any action on the corporation's license is
16 initiated.
17 (Source: P.A. 88-652, eff. 9-16-94; 89-250, eff. 1-1-96.)
18 (235 ILCS 5/6-9.1 new)
19 Sec. 6-9.1 Registration statement.
20 (a) The legislature hereby finds and declares that for
21 the purpose of the State regulating the importation and
22 distribution of beer and avoiding the unnecessary control and
23 dominance accompanying consolidation with the alcoholic
24 liquor industry primarily among manufacturers and foreign
25 importers, it has been and continues to be a matter or vital
26 interest to the State to preserve the independence and
27 separateness within the distribution system and prevent the
28 evils resulting from control and dominance within the
29 alcoholic liquor industry known as "tied houses".
30 (b) A manufacturer, non-resident dealer, or foreign
31 importer who has granted to any distributor and importing
32 distributor the right to sell at wholesale any beer and who
33 is required to register with the State Commission under
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1 Section 6-9 of this Act shall submit to the State Commission
2 with such registration statement affirming in writing and
3 under oath the following:
4 (1) The law of this State governs the distribution
5 agreement or arrangement with all distributors and
6 importing distributors registered or required to be
7 registered with the State Commission pursuant to Section
8 6-9 of this Act.
9 (2) All causes of action that directly relate to or
10 stem from the relationship with a distributor and
11 importing distributor or the agreement with the
12 distributor and importing distributor shall be filed in
13 this State or a federal court of competent jurisdiction
14 located in this State.
15 (3) The distributor and importing distributor were
16 offered in writing the option and opportunity to reject,
17 if required by the agreement, mandatory arbitration as a
18 method of alternative dispute resolution and were
19 afforded the opportunity to select judicial remedies
20 instead of arbitration.
21 (4) The manufacturer, non-resident dealer, or
22 foreign importer does not directly or indirectly control
23 the appointment, hiring, or firing of any officer,
24 director, manager, or employee of the distributor or
25 importing distributor other than to the extent permitted
26 by law.
27 (5) The manufacturer, non-resident dealer, or
28 foreign importer does not directly or indirectly fix or
29 maintain the price at which a distributor and importing
30 distributor may sell beer.
31 (c) A manufacturer, non-resident dealer, or foreign
32 importer with respect to existing registrations filed with
33 the Commission must within 90 days of the effective date of
34 this amendatory Act of 1999 furnish a verified statement to
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1 the Commission for all such existing registrations. The
2 Commission shall, within 30 days of receipt of such verified
3 statements, furnish a copy of the verified statement to the
4 distributor or importing distributor who has been granted the
5 right to sell the beer at wholesale.
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.