Sen. Elgie R. Sims, Jr.
Filed: 5/15/2019
 
 


 




10100HB2577sam001LRB101 06994 RPS 60430 a



1
AMENDMENT TO HOUSE BILL 2577




2 AMENDMENT NO. ______. Amend House Bill 2577 by replacing 
3everything after the enacting clause with the following:


4 "Section 5. The Liquor Control Act of 1934 is amended by 
5changing Sections 3-4, 8-2, 3-12, 10-1, and 10-7.1 as follows:




6 (235 ILCS 5/3-4) (from Ch. 43, par. 100)



7 Sec. 3-4. Authority to conduct investigations. The State 
8Commission commission shall obtain, pursuant to the provisions 
9of the
"Personnel Code" enacted by the 69th General Assembly, 
10such inspectors,
clerks, and other employees as may be 
11necessary to carry out the provisions
of this Act, or to 
12perform the duties and exercise the powers conferred by
law 
13upon the State Commission commission. The inspectors obtained 
14by the State Commission shall not be peace
officers and shall 
15not exercise any powers of a peace officer. 

16 The State Commission shall have the power to appoint 
 
 
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1investigators to conduct investigations, searches, seizures, 
2arrests, and other duties required to enforce the provisions of 
3this Act, on behalf of the State Commission, and to ensure the 
4health, safety, and welfare of the People of the State of 
5Illinois. The Commission's investigators are peace officers 
6and have all the powers possessed by police officers in cities 
7and by sheriffs. State Commission investigators may exercise 
8these powers throughout the State whenever enforcing the 
9provisions of this Act, subject to the rules and orders of the 
10State Commission. No State Commission investigator may have 
11peace officer status or may exercise police powers unless: (1) 
12he or she successfully completes the basic police training 
13course mandated and approved by the Illinois Law Enforcement 
14Training Standards Board; or (2) the Illinois Law Enforcement 
15Training Standards Board waives the training requirement by 
16reason of the investigator's prior law enforcement experience, 
17training, or both. 
18 The Executive Director must authorize to each investigator 
19of the State Commission and to any other employee of the 
20Department exercising the powers of a peace officer a distinct 
21badge that, on its face: (1) clearly states that the badge is 
22authorized by the State Commission; and (2) contains a unique 
23identifying number. No other badge shall be authorized by the 
24State Commission. Nothing in this Section prohibits the 
25Executive Director from issuing shields or other distinctive 
26identification to employees performing security or regulatory 
 
 
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1duties who are not peace officers if the Executive Director 
2determines that a shield or distinctive identification is 
3needed by the employee to carry out his or her 
4responsibilities. 
5(Source: P.A. 82-783.)




6 (235 ILCS 5/3-12)



7 Sec. 3-12. Powers and duties of State Commission.

8 (a) The State Commission shall have the following powers, 
9functions, and
duties:


10  (1) To receive applications and to issue licenses to 
11 manufacturers,
foreign importers, importing distributors, 
12 distributors, non-resident dealers,
on premise consumption 
13 retailers, off premise sale retailers, special event

14 retailer licensees, special use permit licenses, auction 
15 liquor licenses, brew
pubs, caterer retailers, 
16 non-beverage users, railroads, including owners and

17 lessees of sleeping, dining and cafe cars, airplanes, 
18 boats, brokers, and wine
maker's premises licensees in 
19 accordance with the provisions of this Act, and
to suspend 
20 or revoke such licenses upon the State Commission's 
21 determination,
upon notice after hearing, that a licensee 
22 has violated any provision of this
Act or any rule or 
23 regulation issued pursuant thereto and in effect for 30 
24 days
prior to such violation. Except in the case of an 
25 action taken pursuant to a
violation of Section 6-3, 6-5, 
 
 
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1 or 6-9, any action by the State Commission to
suspend or 
2 revoke a licensee's license may be limited to the license 
3 for the
specific premises where the violation occurred.
An 
4 action for a violation of this Act shall be commenced by 
5 the State Commission within 2 years after the date the 
6 State Commission becomes aware of the violation. 

7  In lieu of suspending or revoking a license, the 
8 commission may impose
a fine, upon the State Commission's 
9 determination and notice after hearing,
that a licensee has 
10 violated any provision of this Act or any rule or

11 regulation issued pursuant thereto and in effect for 30 
12 days prior to such
violation.
13  For the purpose of this paragraph (1), when determining 
14 multiple violations for the sale of alcohol to a person 
15 under the age of 21, a second or subsequent violation for 
16 the sale of alcohol to a person under the age of 21 shall 
17 only be considered if it was committed within 5 years after 
18 the date when a prior violation for the sale of alcohol to 
19 a person under the age of 21 was committed. 
20  The fine imposed under this paragraph may not exceed 
21 $500 for each
violation. Each day that the activity, which 
22 gave rise to the original fine,
continues is a separate 
23 violation. The maximum fine that may be levied against
any 
24 licensee, for the period of the license, shall not exceed 
25 $20,000.
The maximum penalty that may be imposed on a 
26 licensee for selling a bottle of
alcoholic liquor with a 
 
 
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1 foreign object in it or serving from a bottle of
alcoholic 
2 liquor with a foreign object in it shall be the destruction 
3 of that
bottle of alcoholic liquor for the first 10 bottles 
4 so sold or served from by
the licensee. For the eleventh 
5 bottle of alcoholic liquor and for each third
bottle 
6 thereafter sold or served from by the licensee with a 
7 foreign object in
it, the maximum penalty that may be 
8 imposed on the licensee is the destruction
of the bottle of 
9 alcoholic liquor and a fine of up to $50.


10  Any notice issued by the State Commission to a licensee 
11 for a violation of this Act or any notice with respect to 
12 settlement or offer in compromise shall include the field 
13 report, photographs, and any other supporting 
14 documentation necessary to reasonably inform the licensee 
15 of the nature and extent of the violation or the conduct 
16 alleged to have occurred. The failure to include such 
17 required documentation shall result in the dismissal of the 
18 action.
19  (2) To adopt such rules and regulations consistent with 
20 the
provisions of this Act which shall be necessary to 
21 carry on its
functions and duties to the end that the 
22 health, safety and welfare of
the People of the State of 
23 Illinois shall be protected and temperance in
the 
24 consumption of alcoholic liquors shall be fostered and 
25 promoted and
to distribute copies of such rules and 
26 regulations to all licensees
affected thereby.


 
 
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1  (3) To call upon other administrative departments of 
2 the State,
county and municipal governments, county and 
3 city police departments and
upon prosecuting officers for 
4 such information and assistance as it
deems necessary in 
5 the performance of its duties.


6  (4) To recommend to local commissioners rules and 
7 regulations, not
inconsistent with the law, for the 
8 distribution and sale of alcoholic
liquors throughout the 
9 State.


10  (5) To inspect, or cause to be inspected, any
premises 
11 in this State
where alcoholic liquors are manufactured, 
12 distributed, warehoused, or
sold. Nothing in this Act

13 authorizes an agent of the State Commission Commission to 
14 inspect private
areas within the premises without 
15 reasonable suspicion or a warrant
during an inspection. 
16 "Private areas" include, but are not limited to, safes, 
17 personal property, and closed desks.


18  (5.1) Upon receipt of a complaint or upon having 
19 knowledge that any person
is engaged in business as a 
20 manufacturer, importing distributor, distributor,
or 
21 retailer without a license or valid license, to conduct an 
22 investigation. If, after conducting an investigation, the 
23 State Commission is satisfied that the alleged conduct 
24 occurred or is occurring, it may issue a cease and desist 
25 notice as provided in this Act, impose civil penalties as 
26 provided in this Act, to notify the local liquor
authority, 
 
 
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1 or file a complaint with the State's Attorney's Office of 
2 the county
where the incident occurred or the Attorney 
3 General , or initiate an investigation with the appropriate

4 law enforcement officials.


5  (5.2) Upon receipt of a complaint or upon having 
6 knowledge that any person is To issue a cease and desist 
7 notice to persons shipping alcoholic
liquor
into this State 
8 from a point outside of this State if the shipment is in

9 violation of this Act, to conduct an investigation. If, 
10 after conducting an investigation, the State Commission is 
11 satisfied that the alleged conduct occurred or is 
12 occurring, it may issue a cease and desist notice as 
13 provided in this Act, impose civil penalties as provided in 
14 this Act, notify the foreign jurisdiction, or file a 
15 complaint with the State's Attorney's Office of the county 
16 where the incident occurred or the Attorney General.


17  (5.3) To receive complaints from licensees, local 
18 officials, law
enforcement agencies, organizations, and 
19 persons stating that any licensee has
been or is violating 
20 any provision of this Act or the rules and regulations

21 issued pursuant to this Act. Such complaints shall be in 
22 writing, signed and
sworn to by the person making the 
23 complaint, and shall state with specificity
the facts in 
24 relation to the alleged violation. If the State Commission 
25 has
reasonable grounds to believe that the complaint 
26 substantially alleges a
violation of this Act or rules and 
 
 
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1 regulations adopted pursuant to this Act, it
shall conduct 
2 an investigation. If, after conducting an investigation, 
3 the
State Commission is satisfied that the alleged 
4 violation did occur, it shall proceed
with disciplinary 
5 action against the licensee as provided in this Act.


6  (5.4) To make arrests and issue notices of civil 
7 violations where necessary for the enforcement of this Act. 
8  (5.5) To investigate any and all unlicensed activity. 
9  (5.6) To impose civil penalties or fines to any person 
10 who, without holding a valid license, engages in conduct 
11 that requires a license pursuant to this Act, in an amount 
12 not to exceed $20,000 for each offense as determined by the 
13 State Commission. A civil penalty shall be assessed by the 
14 State Commission after a hearing is held in accordance with 
15 the provisions set forth in this Act regarding the 
16 provision of a hearing for the revocation or suspension of 
17 a license. 
18  (6) To hear and determine appeals from orders of a 
19 local commission
in accordance with the provisions of this 
20 Act, as hereinafter set forth.
Hearings under this 
21 subsection shall be held in Springfield or Chicago,
at 
22 whichever location is the more convenient for the majority 
23 of persons
who are parties to the hearing.


24  (7) The State Commission commission shall establish 
25 uniform systems of accounts to be
kept by all retail 
26 licensees having more than 4 employees, and for this

 
 
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1 purpose the State Commission commission may classify all 
2 retail licensees having more
than 4 employees and establish 
3 a uniform system of accounts for each
class and prescribe 
4 the manner in which such accounts shall be kept.
The State 
5 Commission commission may also prescribe the forms of 
6 accounts to be kept by
all retail licensees having more 
7 than 4 employees, including but not
limited to accounts of 
8 earnings and expenses and any distribution,
payment, or 
9 other distribution of earnings or assets, and any other

10 forms, records and memoranda which in the judgment of the 
11 commission may
be necessary or appropriate to carry out any 
12 of the provisions of this
Act, including but not limited to 
13 such forms, records and memoranda as
will readily and 
14 accurately disclose at all times the beneficial
ownership 
15 of such retail licensed business. The accounts, forms,

16 records and memoranda shall be available at all reasonable 
17 times for
inspection by authorized representatives of the 
18 State Commission or by
any local liquor control 
19 commissioner or his or her authorized representative.
The 
20 commission, may, from time to time, alter, amend or repeal, 
21 in whole
or in part, any uniform system of accounts, or the 
22 form and manner of
keeping accounts.


23  (8) In the conduct of any hearing authorized to be held 
24 by the State Commission
commission, to appoint, at the 
25 commission's discretion, hearing officers
to conduct 
26 hearings involving complex issues or issues that will 
 
 
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1 require a
protracted period of time to resolve, to examine, 
2 or cause to be examined,
under oath, any licensee, and to 
3 examine or cause to be examined the books and
records
of 
4 such licensee; to hear testimony and take proof material 
5 for its
information in the discharge of its duties 
6 hereunder; to administer or
cause to be administered oaths; 
7 for any such purpose to issue
subpoena or subpoenas to 
8 require the attendance of witnesses and the
production of 
9 books, which shall be effective in any part of this State, 
10 and
to adopt rules to implement its powers under this 
11 paragraph (8).


12  Any circuit court may by order duly entered,
require 
13 the attendance of witnesses and the production of relevant 
14 books
subpoenaed by the State Commission and the court may 
15 compel
obedience to its order by proceedings for contempt.


16  (9) To investigate the administration of laws in 
17 relation to
alcoholic liquors in this and other states and 
18 any foreign countries,
and to recommend from time to time 
19 to the Governor and through him or
her to the legislature 
20 of this State, such amendments to this Act, if any, as
it 
21 may think desirable and as will serve to further the 
22 general broad
purposes contained in Section 1-2 hereof.


23  (10) To adopt such rules and regulations consistent 
24 with the
provisions of this Act which shall be necessary 
25 for the control, sale or
disposition of alcoholic liquor 
26 damaged as a result of an accident, wreck,
flood, fire or 
 
 
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1 other similar occurrence.


2  (11) To develop industry educational programs related 
3 to responsible
serving and selling, particularly in the 
4 areas of overserving consumers and
illegal underage 
5 purchasing and consumption of alcoholic beverages.


6  (11.1) To license persons providing education and 
7 training to alcohol
beverage sellers and servers for 
8 mandatory and non-mandatory training under the
Beverage 
9 Alcohol Sellers and Servers
Education and Training 
10 (BASSET) programs and to develop and administer a public

11 awareness program in Illinois to reduce or eliminate the 
12 illegal purchase and
consumption of alcoholic beverage 
13 products by persons under the age of 21.
Application for a 
14 license shall be made on forms provided by the State

15 Commission.


16  (12) To develop and maintain a repository of license 
17 and regulatory
information.


18  (13) (Blank).

19  (14) On or before April 30, 2008 and every 2 years

20 thereafter, the State Commission shall present a written

21 report to the Governor and the General Assembly that shall

22 be based on a study of the impact of Public Act 95-634 on 
23 the business of soliciting,
selling, and shipping wine from 
24 inside and outside of this
State directly to residents of 
25 this State. As part of its
report, the State Commission 
26 shall provide all of the
following information:
 
 
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1   (A) The amount of State excise and sales tax

2 revenues generated.
3   (B) The amount of licensing fees received.
4   (C) The number of cases of wine shipped from inside

5 and outside of this State directly to residents of this

6 State.
7   (D) The number of alcohol compliance operations

8 conducted.
9   (E) The number of winery shipper's licenses

10 issued.
11   (F) The number of each of the following: reported

12 violations; cease and desist notices issued by the

13 Commission; notices of violations issued by
the 
14 Commission and to the Department of Revenue;
and 
15 notices and complaints of violations to law

16 enforcement officials, including, without limitation,

17 the Illinois Attorney General and the U.S. Department

18 of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
19  (15) As a means to reduce the underage consumption of

20 alcoholic liquors, the State Commission shall conduct

21 alcohol compliance operations to investigate whether

22 businesses that are soliciting, selling, and shipping wine

23 from inside or outside of this State directly to residents

24 of this State are licensed by this State or are selling or

25 attempting to sell wine to persons under 21 years of age in

26 violation of this Act.
 
 
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1  (16) The State Commission shall, in addition to

2 notifying any appropriate law enforcement agency, submit

3 notices of complaints or violations of Sections 6-29 and

4 6-29.1 by persons who do not hold a winery shipper's

5 license under this Act to the Illinois Attorney General and

6 to the U.S. Department of Treasury's Alcohol and Tobacco 
7 Tax and Trade Bureau.
8  (17)(A) A person licensed to make wine under the laws 
9 of another state who has a winery shipper's license under 
10 this Act and annually produces less than 25,000 gallons of 
11 wine or a person who has a first-class or second-class wine 
12 manufacturer's license, a first-class or second-class 
13 wine-maker's license, or a limited wine manufacturer's 
14 license under this Act and annually produces less than 
15 25,000 gallons of wine may make application to the 
16 Commission for a self-distribution exemption to allow the 
17 sale of not more than 5,000 gallons of the exemption 
18 holder's wine to retail licensees per year.
19  (B) In the application, which shall be sworn under 
20 penalty of perjury, such person shall state (1) the date it 
21 was established; (2) its volume of production and sales for 
22 each year since its establishment; (3) its efforts to 
23 establish distributor relationships; (4) that a 
24 self-distribution exemption is necessary to facilitate the 
25 marketing of its wine; and (5) that it will comply with the 
26 liquor and revenue laws of the United States, this State, 
 
 
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1 and any other state where it is licensed.
2  (C) The State Commission shall approve the application 
3 for a self-distribution exemption if such person: (1) is in 
4 compliance with State revenue and liquor laws; (2) is not a 
5 member of any affiliated group that produces more than 
6 25,000 gallons of wine per annum or produces any other 
7 alcoholic liquor; (3) will not annually produce for sale 
8 more than 25,000 gallons of wine; and (4) will not annually 
9 sell more than 5,000 gallons of its wine to retail 
10 licensees.
11  (D) A self-distribution exemption holder shall 
12 annually certify to the State Commission its production of 
13 wine in the previous 12 months and its anticipated 
14 production and sales for the next 12 months. The State 
15 Commission may fine, suspend, or revoke a 
16 self-distribution exemption after a hearing if it finds 
17 that the exemption holder has made a material 
18 misrepresentation in its application, violated a revenue 
19 or liquor law of Illinois, exceeded production of 25,000 
20 gallons of wine in any calendar year, or become part of an 
21 affiliated group producing more than 25,000 gallons of wine 
22 or any other alcoholic liquor.
23  (E) Except in hearings for violations of this Act or 
24 Public Act 95-634 or a bona fide investigation by duly 
25 sworn law enforcement officials, the State Commission, or 
26 its agents, the State Commission shall maintain the 
 
 
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1 production and sales information of a self-distribution 
2 exemption holder as confidential and shall not release such 
3 information to any person.
4  (F) The State Commission shall issue regulations 
5 governing self-distribution exemptions consistent with 
6 this Section and this Act.
7  (G) Nothing in this paragraph subsection (17) shall 
8 prohibit a self-distribution exemption holder from 
9 entering into or simultaneously having a distribution 
10 agreement with a licensed Illinois distributor.
11  (H) It is the intent of this paragraph subsection (17) 
12 to promote and continue orderly markets. The General 
13 Assembly finds that in order to preserve Illinois' 
14 regulatory distribution system it is necessary to create an 
15 exception for smaller makers of wine as their wines are 
16 frequently adjusted in varietals, mixes, vintages, and 
17 taste to find and create market niches sometimes too small 
18 for distributor or importing distributor business 
19 strategies. Limited self-distribution rights will afford 
20 and allow smaller makers of wine access to the marketplace 
21 in order to develop a customer base without impairing the 
22 integrity of the 3-tier system.

23  (18)(A) A class 1 brewer licensee, who must also be 
24 either a licensed brewer or licensed non-resident dealer 
25 and annually manufacture less than 930,000 gallons of beer, 
26 may make application to the State Commission for a 
 
 
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1 self-distribution exemption to allow the sale of not more 
2 than 232,500 gallons of the exemption holder's beer per 
3 year to retail licensees and to brewers, class 1 brewers, 
4 and class 2 brewers that, pursuant to subsection (e) of 
5 Section 6-4 of this Act, sell beer, cider, or both beer and 
6 cider to non-licensees at their breweries.
7  (B) In the application, which shall be sworn under 
8 penalty of perjury, the class 1 brewer licensee shall state 
9 (1) the date it was established; (2) its volume of beer 
10 manufactured and sold for each year since its 
11 establishment; (3) its efforts to establish distributor 
12 relationships; (4) that a self-distribution exemption is 
13 necessary to facilitate the marketing of its beer; and (5) 
14 that it will comply with the alcoholic beverage and revenue 
15 laws of the United States, this State, and any other state 
16 where it is licensed.
17  (C) Any application submitted shall be posted on the 
18 State Commission's website at least 45 days prior to action 
19 by the State Commission. The State Commission shall approve 
20 the application for a self-distribution exemption if the 
21 class 1 brewer licensee: (1) is in compliance with the 
22 State, revenue, and alcoholic beverage laws; (2) is not a 
23 member of any affiliated group that manufactures more than 
24 930,000 gallons of beer per annum or produces any other 
25 alcoholic beverages; (3) shall not annually manufacture 
26 for sale more than 930,000 gallons of beer; (4) shall not 
 
 
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1 annually sell more than 232,500 gallons of its beer to 
2 retail licensees or to brewers, class 1 brewers, and class 
3 2 brewers that, pursuant to subsection (e) of Section 6-4 
4 of this Act, sell beer, cider, or both beer and cider to 
5 non-licensees at their breweries; and (5) has relinquished 
6 any brew pub license held by the licensee, including any 
7 ownership interest it held in the licensed brew pub.
8  (D) A self-distribution exemption holder shall 
9 annually certify to the State Commission its manufacture of 
10 beer during the previous 12 months and its anticipated 
11 manufacture and sales of beer for the next 12 months. The 
12 State Commission may fine, suspend, or revoke a 
13 self-distribution exemption after a hearing if it finds 
14 that the exemption holder has made a material 
15 misrepresentation in its application, violated a revenue 
16 or alcoholic beverage law of Illinois, exceeded the 
17 manufacture of 930,000 gallons of beer in any calendar year 
18 or became part of an affiliated group manufacturing more 
19 than 930,000 gallons of beer or any other alcoholic 
20 beverage.
21  (E) The State Commission shall issue rules and 
22 regulations governing self-distribution exemptions 
23 consistent with this Act.
24  (F) Nothing in this paragraph (18) shall prohibit a 
25 self-distribution exemption holder from entering into or 
26 simultaneously having a distribution agreement with a 
 
 
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1 licensed Illinois importing distributor or a distributor. 
2 If a self-distribution exemption holder enters into a 
3 distribution agreement and has assigned distribution 
4 rights to an importing distributor or distributor, then the 
5 self-distribution exemption holder's distribution rights 
6 in the assigned territories shall cease in a reasonable 
7 time not to exceed 60 days.
8  (G) It is the intent of this paragraph (18) to promote 
9 and continue orderly markets. The General Assembly finds 
10 that in order to preserve Illinois' regulatory 
11 distribution system, it is necessary to create an exception 
12 for smaller manufacturers in order to afford and allow such 
13 smaller manufacturers of beer access to the marketplace in 
14 order to develop a customer base without impairing the 
15 integrity of the 3-tier system. 
16 (b) On or before April 30, 1999, the Commission shall 
17present a written
report to the Governor and the General 
18Assembly that shall be based on a study
of the impact of Public 
19Act 90-739 on the business of soliciting,
selling, and shipping

20alcoholic liquor from outside of this State directly to 
21residents of this
State.


22 As part of its report, the Commission shall provide the 
23following
information:


24  (i) the amount of State excise and sales tax revenues 
25 generated as a
result of Public Act 90-739;


26  (ii) the amount of licensing fees received as a result 
 
 
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1 of Public Act 90-739;


2  (iii) the number of reported violations, the number of 
3 cease and desist
notices issued by the Commission, the 
4 number of notices of violations issued
to the Department of 
5 Revenue, and the number of notices and complaints of

6 violations to law enforcement officials.


7(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15; 
8100-134, eff. 8-18-17; 100-201, eff. 8-18-17; 100-816, eff. 
98-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. 8-23-18; 
10revised 10-24-18.)




11 (235 ILCS 5/8-2) (from Ch. 43, par. 159)



12 Sec. 8-2. Payments; reports. It is the duty of each 
13manufacturer with respect to alcoholic
liquor produced or 
14imported by such manufacturer, or purchased tax-free by
such 
15manufacturer from another manufacturer or importing

16distributor, and of each importing distributor as to alcoholic 
17liquor
purchased by such importing distributor from foreign 
18importers or from
anyone from any point in the United States 
19outside of this State or
purchased tax-free from another 
20manufacturer or importing
distributor, to pay the tax imposed 
21by Section 8-1 to the
Department of Revenue on or before the 
2215th day of the calendar month
following the calendar month in 
23which such alcoholic liquor is sold or used
by such 
24manufacturer or by such importing distributor other than in an

25authorized tax-free manner or to pay that tax electronically as 
 
 
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1provided in
this Section.

2 Each manufacturer and each importing distributor shall

3make payment under one of the following methods: (1) on or 
4before the
15th day of each calendar month, file in person or 
5by United States
first-class
mail, postage pre-paid,
with the 
6Department of Revenue, on
forms prescribed and furnished by the 
7Department, a report in writing in
such form as may be required 
8by the Department in order to compute, and
assure the accuracy 
9of, the tax due on all taxable sales and uses of
alcoholic 
10liquor occurring during the preceding month. Payment of the tax

11in the amount disclosed by the report shall accompany the 
12report or, (2) on
or
before the 15th day of each calendar 
13month, electronically file with the
Department of Revenue, on 
14forms prescribed and furnished by the Department, an
electronic 
15report in such form as may be required by the Department in 
16order to
compute,
and assure the accuracy of, the tax due on 
17all taxable sales and uses of
alcoholic liquor
occurring during 
18the preceding month. An electronic payment of the tax in the

19amount
disclosed by the report shall accompany the report. A 
20manufacturer or
distributor who
files an electronic report and 
21electronically pays the tax imposed pursuant to
Section 8-1
to 
22the Department of Revenue on or before the 15th day of the 
23calendar month
following
the calendar month in which such 
24alcoholic liquor is sold or used by that
manufacturer or

25importing distributor other than in an authorized tax-free 
26manner shall pay to
the
Department the amount of the tax 
 
 
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1imposed pursuant to Section 8-1, less a
discount
which is 
2allowed to reimburse the manufacturer or importing distributor

3for the
expenses incurred in keeping and maintaining records, 
4preparing and filing the
electronic
returns, remitting the tax, 
5and supplying data to the Department upon
request.

6 The discount shall be in an amount as follows:


7  (1) For original returns due on or after January 1, 
8 2003 through
September 30, 2003, the discount shall be 
9 1.75% or $1,250 per return, whichever
is less;


10  (2) For original returns due on or after October 1, 
11 2003 through September
30, 2004, the discount shall be 2% 
12 or $3,000 per return, whichever is less; and


13  (3) For original returns due on or after October 1, 
14 2004, the discount
shall
be 2% or $2,000 per return, 
15 whichever is less.

16 The Department may, if it deems it necessary in order to 
17insure the
payment of the tax imposed by this Article, require 
18returns to be made
more frequently than and covering periods of 
19less than a month. Such return
shall contain such further 
20information as the Department may reasonably
require.

21 It shall be presumed that all alcoholic liquors acquired or 
22made by any
importing distributor or manufacturer have been 
23sold or used by him in this
State and are the basis for the tax 
24imposed by this Article unless proven,
to the satisfaction of 
25the Department, that such alcoholic liquors are (1)
still in 
26the possession of such importing distributor or manufacturer, 
 
 
10100HB2577sam001- 22 -LRB101 06994 RPS 60430 a


1or
(2) prior to the termination of possession have been lost by 
2theft or
through unintentional destruction, or (3) that such 
3alcoholic liquors are
otherwise exempt from taxation under this 
4Act.

5 If any payment provided for in this Section exceeds the 
6manufacturer's or importing distributor's liabilities under 
7this Act, as shown on an original report, the manufacturer or 
8importing distributor may credit such excess payment against 
9liability subsequently to be remitted to the Department under 
10this Act, in accordance with reasonable rules adopted by the 
11Department. If the Department subsequently determines that all 
12or any part of the credit taken was not actually due to the 
13manufacturer or importing distributor, the manufacturer's or 
14importing distributor's discount shall be reduced by an amount 
15equal to the difference between the discount as applied to the 
16credit taken and that actually due, and the manufacturer or 
17importing distributor shall be liable for penalties and 
18interest on such difference. 
19 The Department may require any foreign importer to file 
20monthly
information returns, by the 15th day of the month 
21following the month which
any such return covers, if the 
22Department determines this to be necessary
to the proper 
23performance of the Department's functions and duties under
this 
24Act. Such return shall contain such information as the 
25Department may
reasonably require.

26 Every manufacturer and importing distributor, except for a

 
 
10100HB2577sam001- 23 -LRB101 06994 RPS 60430 a


1manufacturer or importing distributor that in the preceding

2year had less than $50,000 of tax liability under this Article, 
3shall also file, with the
Department, a bond in an amount not 
4less than $1,000 and not to exceed
$100,000 on a form to be 
5approved by, and with a surety or sureties
satisfactory to, the 
6Department. Such bond shall be conditioned upon the

7manufacturer or importing distributor paying to the Department 
8all monies
becoming due from such manufacturer or importing 
9distributor under this
Article. The Department shall fix the 
10penalty of such bond in each case,
taking into consideration 
11the amount of alcoholic liquor expected to be
sold and used by 
12such manufacturer or importing distributor, and the
penalty 
13fixed by the Department shall be sufficient, in the 
14Department's
opinion, to protect the State of Illinois against 
15failure to pay any amount
due under this Article, but the 
16amount of the penalty fixed by the
Department shall not exceed 
17twice the amount of tax liability of a monthly
return, nor 
18shall the amount of such penalty be less than $1,000. The

19Department shall notify the State Commission of the 
20Department's approval or
disapproval of any such 
21manufacturer's or importing distributor's bond, or
of the 
22termination or cancellation of any such bond, or of the 
23Department's
direction to a manufacturer or importing 
24distributor that he must file
additional bond in order to 
25comply with this Section. The Commission shall
not issue a 
26license to any applicant for a manufacturer's or importing

 
 
10100HB2577sam001- 24 -LRB101 06994 RPS 60430 a


1distributor's license unless the Commission has received a 
2notification
from the Department showing that such applicant 
3has filed a satisfactory
bond with the Department hereunder and 
4that such bond has been approved by
the Department. Failure by 
5any licensed manufacturer or importing
distributor to keep a 
6satisfactory bond in effect with the Department or to
furnish 
7additional bond to the Department, when required hereunder by 
8the
Department to do so, shall be grounds for the revocation or 
9suspension of
such manufacturer's or importing distributor's 
10license by the Commission.
If a manufacturer or importing 
11distributor fails to pay any amount due
under this Article, his 
12bond with the Department shall be deemed forfeited,
and the 
13Department may institute a suit in its own name on such bond.

14 After notice and opportunity for a hearing the State 
15Commission may
revoke or suspend the license of any 
16manufacturer or importing distributor
who fails to comply with 
17the provisions of this Section. Notice of such
hearing and the 
18time and place thereof shall be in writing and shall
contain a 
19statement of the charges against the licensee. Such notice may 
20be
given by United States registered or certified mail with 
21return receipt
requested, addressed to the person concerned at 
22his last known address and
shall be given not less than 7 days 
23prior to the date fixed for the
hearing. An order revoking or 
24suspending a license under the provisions of
this Section may 
25be reviewed in the manner provided in Section 7-10
of this Act. 
26No new license shall be granted to a person
whose license has 
 
 
10100HB2577sam001- 25 -LRB101 06994 RPS 60430 a


1been revoked for a violation of this Section or, in case
of 
2suspension, shall such suspension be terminated until he has 
3paid to the
Department all taxes and penalties which he owes 
4the State under the
provisions of this Act.

5 Every manufacturer or importing distributor who has, as 
6verified by
the Department, continuously complied with the 
7conditions of the bond under
this Act for a period of 2 years 
8shall be considered to be a prior
continuous compliance 
9taxpayer. In determining the consecutive period of
time for 
10qualification as a prior continuous compliance taxpayer, any

11consecutive period of time of qualifying compliance 
12immediately prior to
the effective date of this amendatory Act 
13of 1987 shall be credited to any
manufacturer or importing 
14distributor.

15 A manufacturer or importing distributor that is a prior 
16continuous compliance taxpayer under this Section and becomes a 
17successor as the result of an acquisition, merger, or 
18consolidation of a manufacturer or importing distributor shall 
19be deemed to be a prior continuous compliance taxpayer with 
20respect to the acquired, merged, or consolidated entity.

21 Every prior continuous compliance taxpayer shall be exempt 
22from the bond
requirements of this Act until the Department has 
23determined the taxpayer
to be delinquent in the filing of any 
24return or deficient in the payment of
any tax under this Act. 
25Any taxpayer who fails to pay an admitted or
established 
26liability under this Act may also be required to post bond or

 
 
10100HB2577sam001- 26 -LRB101 06994 RPS 60430 a


1other acceptable security with the Department guaranteeing the 
2payment of
such admitted or established liability.

3 The Department shall discharge any surety and shall release 
4and return
any bond or security deposit assigned, pledged or 
5otherwise provided to it
by a taxpayer under this Section 
6within 30 days after: (1) such taxpayer
becomes a prior 
7continuous compliance taxpayer; or (2) such taxpayer has
ceased 
8to collect receipts on which he is required to remit tax to the

9Department, has filed a final tax return, and has paid to the 
10Department an
amount sufficient to discharge his remaining tax 
11liability as determined by
the Department under this Act.

12(Source: P.A. 100-1171, eff. 1-4-19.)




13 (235 ILCS 5/10-1) (from Ch. 43, par. 183)



14 Sec. 10-1. Violations; penalties. Whereas a substantial 
15threat
to the sound and careful control, regulation, and 
16taxation of the
manufacture, sale, and distribution of 
17alcoholic liquors exists by virtue
of individuals who 
18manufacture,
import, distribute, or sell alcoholic liquors 
19within the State without
having first obtained a valid license 
20to do so, and whereas such threat is
especially serious along 
21the borders of this State, and whereas such threat
requires 
22immediate correction by this Act, by active investigation and

23prosecution by the State Commission, law enforcement 
24officials, and prosecutors, and by prompt and
strict 
25enforcement through the courts of this State to punish 
 
 
10100HB2577sam001- 27 -LRB101 06994 RPS 60430 a


1violators and
to deter such conduct in the future:

2 (a) Any person who manufactures, imports
for distribution 
3or use, transports from outside this State into this State, or 
4distributes or sells 108 liters (28.53 gallons) or more of 
5wine, 45 liters (11.88 gallons) or more of distilled spirits, 
6or 118 liters (31.17 gallons) or more of beer at any
place 
7within the State without having first obtained a valid license 
8to do
so under the provisions of this Act shall be guilty of a 
9Class 4 felony for each offense. However, any person who was 
10duly licensed under this Act and whose license expired within 
1130 days prior to a violation shall be guilty of a business 
12offense and fined not more than $1,000 for the first such 
13offense and shall be guilty of a Class 4 felony for each 
14subsequent offense. 

15 Any person who manufactures, imports for distribution, 
16transports from outside this State into this State for sale or 
17resale in this State, or distributes or sells less than 108 
18liters (28.53 gallons) of wine, less than 45 liters (11.88 
19gallons) of distilled spirits, or less than 118 liters (31.17 
20gallons) of beer at any place within the State without having 
21first obtained a valid license to do so under the provisions of 
22this Act shall be guilty of a business offense and fined not 
23more than $1,000 for the first such offense and shall be guilty 
24of a Class 4 felony for each subsequent offense. This 
25subsection does not apply to a motor carrier or freight 
26forwarder, as defined in Section 13102 of Title 49 of the 
 
 
10100HB2577sam001- 28 -LRB101 06994 RPS 60430 a


1United States Code, an air carrier, as defined in Section 40102 
2of Title 49 of the United States Code, or a rail carrier, as 
3defined in Section 10102 of Title 49 of the United States Code. 
4 Any person who: (1) both has been issued an initial cease 
5and desist notice from the State Commission; and (2) for 
6compensation, does any of the following: (i) ships alcoholic 
7liquor into this State without a license authorized by Section 
85-1 issued by the State Commission or in violation of that 
9license; or (ii) manufactures, imports for distribution, 
10transports from outside this State into this State for sale or 
11resale in this State, or distributes or sells alcoholic liquors 
12at any place without having first obtained a valid license to 
13do so is guilty of a Class 4 felony for each offense. 
14 (b) (1) Any retailer, caterer retailer, brew pub, special 
15event retailer, special use permit holder, homebrewer special 
16event permit holder, or craft distiller tasting permit holder 
17who knowingly causes alcoholic liquors to be imported directly 
18into the State of Illinois from outside of the State for the 
19purpose of furnishing, giving, or selling to another, except 
20when having received the product from a duly licensed 
21distributor or importing distributor, licensed in this State, 
22who knowingly causes to
furnish,
give, sell, or otherwise being 
23within the State, any alcoholic liquor destined
to be used, 
24distributed, consumed or sold in another state, unless such

25alcoholic liquor was received in this State by a duly licensed 
26distributor,
or importing distributors shall have his license 
 
 
10100HB2577sam001- 29 -LRB101 06994 RPS 60430 a


1suspended for 30 7 days for
the first offense and for the 
2second offense, shall have his license
revoked by the 
3Commission.

4 (2) In the event the State Commission receives a certified 
5copy of a final order
from a foreign jurisdiction that an 
6Illinois retail licensee has been found to
have violated that 
7foreign jurisdiction's laws, rules, or regulations
concerning 
8the importation of alcoholic liquor into that foreign 
9jurisdiction,
the violation may be grounds for the State 
10Commission to revoke, suspend, or refuse
to
issue or renew a 
11license, to impose a fine, or to take any additional action

12provided by this Act with respect to the Illinois retail 
13license or licensee.
Any such action on the part of the State 
14Commission shall be in accordance with this
Act and 
15implementing rules.

16 For the purposes of paragraph (2): (i) "foreign 
17jurisdiction" means a
state, territory, or possession of the 
18United States, the District of Columbia,
or the Commonwealth of 
19Puerto Rico, and (ii) "final order" means an order or
judgment 
20of a court or administrative body that determines the rights of 
21the
parties respecting the subject matter of the proceeding, 
22that remains in full
force and effect, and from which no appeal 
23can be taken.

24 (c) Any person who shall make any false statement or 
25otherwise
violates any of the provisions of this Act in 
26obtaining any license
hereunder, or who having obtained a 
 
 
10100HB2577sam001- 30 -LRB101 06994 RPS 60430 a


1license hereunder shall violate any
of the provisions of this 
2Act with respect to the manufacture,
possession, distribution 
3or sale of alcoholic liquor, or with respect to
the maintenance 
4of the licensed premises, or shall violate any other
provision 
5of this Act, shall for a first offense be guilty of a petty

6offense and fined not more than $500, and for a second or 
7subsequent
offense shall be guilty of a Class B misdemeanor.

8 (c-5) Any owner of an establishment that serves alcohol on 
9its premises, if more than 50% of the establishment's gross 
10receipts within the prior 3 months is from the sale of alcohol, 
11who knowingly fails to prohibit concealed firearms on its 
12premises or who knowingly makes a false statement or record to 
13avoid the prohibition of concealed firearms on its premises 
14under the Firearm Concealed Carry Act shall be guilty of a 
15business offense with a fine up to $5,000. 
16 (d) Each day any person engages in business as a 
17manufacturer,
foreign importer, importing distributor, 
18distributor or retailer in
violation of the provisions of this 
19Act shall constitute a separate offense.

20 (e) Any person, under the age of 21 years who, for the 
21purpose
of buying, accepting or receiving alcoholic liquor from 
22a
licensee, represents that he is 21 years of age or over shall 
23be guilty
of a Class A misdemeanor.

24 (f) In addition to the penalties herein provided, any 
25person
licensed as a wine-maker in either class who 
26manufactures more wine than
authorized by his license shall be 
 
 
10100HB2577sam001- 31 -LRB101 06994 RPS 60430 a


1guilty of a business offense and shall be
fined $1 for each 
2gallon so manufactured.

3 (g) A person shall be exempt from prosecution for a 
4violation of this
Act if he is a peace officer in the 
5enforcement of the criminal laws and
such activity is approved 
6in writing by one of the following:


7  (1) In all counties, the respective State's Attorney;


8  (2) The Director of State Police under
Section 2605-10, 
9 2605-15, 2605-75, 2605-100, 2605-105, 2605-110,
2605-115, 
10 2605-120, 2605-130, 2605-140, 2605-190, 2605-200, 
11 2605-205, 2605-210,
2605-215, 2605-250, 2605-275, 
12 2605-300, 2605-305, 2605-315, 2605-325, 2605-335,

13 2605-340,
2605-350, 2605-355, 2605-360, 2605-365, 
14 2605-375, 2605-390, 2605-400, 2605-405,
2605-420,

15 2605-430, 2605-435, 2605-500, 2605-525, or 2605-550 of the 
16 Department of State
Police Law (20 ILCS 2605/2605-10, 
17 2605/2605-15, 2605/2605-75,
2605/2605-100, 2605/2605-105, 
18 2605/2605-110, 2605/2605-115,
2605/2605-120, 
19 2605/2605-130, 2605/2605-140, 2605/2605-190, 
20 2605/2605-200,
2605/2605-205, 2605/2605-210, 
21 2605/2605-215, 2605/2605-250, 2605/2605-275,

22 2605/2605-300,
2605/2605-305, 2605/2605-315, 
23 2605/2605-325, 2605/2605-335, 2605/2605-340,

24 2605/2605-350, 2605/2605-355, 2605/2605-360,

25 2605/2605-365, 2605/2605-375, 2605/2605-390,

26 2605/2605-400, 2605/2605-405, 2605/2605-420, 
 
 
10100HB2577sam001- 32 -LRB101 06994 RPS 60430 a


1 2605/2605-430, 2605/2605-435,
2605/2605-500, 
2 2605/2605-525, or 2605/2605-550); or


3  (3) In cities over 1,000,000, the Superintendent of 
4 Police.

5(Source: P.A. 98-63, eff. 7-9-13; 99-904, eff. 1-1-17.)





6 (235 ILCS 5/10-7.1) (from Ch. 43, par. 189.1)



7 Sec. 10-7.1. 
The State Commission, upon receipt of a 
8complaint or upon having
knowledge that any
person is engaged 
9in the business as a manufacturer, importing distributor,

10distributor, or retailer without a license or valid license, 
11shall conduct an investigation. If, after conducting an 
12investigation, the State Commission is satisfied that the 
13alleged conduct occurred or is occurring, it may issue a cease 
14and desist notice as provided in this Act, issue civil 
15penalties as provided in this Act, notify
the Department of 
16Revenue and the local liquor authority, or and file a
complaint 
17with the State's Attorney's
Office of the County where the 
18incident occurred or with the Attorney General initiate an

19investigation with the appropriate
law enforcement officials.

20(Source: P.A. 90-739, eff. 8-13-98.)



21 Section 99. Effective date. This Act takes effect upon 
22becoming law, except that the changes to Section 8-2 of the 
23Liquor Control Act of 1934 take effect
upon becoming law.".