HB4795 96TH GENERAL ASSEMBLY

LRB096 16345 ASK 31609 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4795

Introduced 1/12/2010, by Rep. Lou Lang

SYNOPSIS AS INTRODUCED:

235 ILCS 5/3-15 new
235 ILCS 5/3-16 new
235 ILCS 5/6-2	from Ch. 43, par. 120

Amends the Liquor Control Act. Supersedes Executive Order No. 2003-9 with respect to (1) the transfer of certain employees and resources from the State Liquor Control Commission to the Department of Revenue, and (2) the appointment of the Secretary and Executive Director of the State Commission by the Governor. Beginning July 1, 2010, moves the affected employees and positions back to the State Commission. Provides that the status and rights of the transferred employees shall remain unchanged by the transfer. Also transfers related resources, property, rules, and unexpended appropriations and balances back to the State Commission. Provides that the Secretary and Executive Director of the State Commission shall again be appointed by the State Commission rather than the Governor; except that the Secretary and Executive Director serving on June 30, 2010 may continue to serve for the remainder of their appointed terms. Includes savings provisions. Provides that the State Commission has the power to appoint investigators. Provides that these investigators have all the powers of peace officers solely for the purpose of enforcing the Act, and may carry firearms if certain conditions are met. Provides that a mayor, a president of a village board of trustees, or a president of a county board may have a direct interest in the manufacture, sale, or distribution of alcoholic liquor, provided that he or she is not involved in law enforcement, abstains from hearings and actions involving alcoholic liquor, and delegates any authority over the manufacture, sale, or distribution of alcoholic liquor to another official in the jurisdiction. 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 Section 6-2 and by adding Sections 3-15 and 3-16 as follows:

(235 ILCS 5/3-15 new)

Sec. 3-15. Executive order provisions superseded.

(a) Executive Order No. 2003-9 is superseded by this amendatory Act of the 96th General Assembly to the extent that Executive Order No. 2003-9 (1) transfers certain "clerks, other management and staff support or employees, and other resources necessary for the operation of the Liquor Control Commission" to the Department of Revenue, and (2) provides for the Secretary and Executive Director of the State Commission to be appointed by the Governor.

(b) Beginning July 1, 2010, the Secretary and Executive Director of the State Commission shall be appointed by the State Commission rather than the Governor; except that the Secretary and Executive Director of the State Commission serving on June 30, 2010 may continue to serve for the remainder of their appointed terms.

(c) Beginning July 1, 2010, the State Commission may again obtain, employ, and administer clerks and other employees in accordance with this Act.

On July 1, 2010, all clerk, employee, and management and support staff positions that were transferred from the State Commission to the Department of Revenue under Executive Order No. 2003-9, including the persons serving in those positions on June 30, 2010, are hereby transferred from the Department of Revenue back to the State Commission; except that in the case of an employee who performs both duties relating to the State Commission and other duties, the employee is transferred under this subsection only if a majority of the employee's time on the job is usually spent performing duties relating to the State Commission, or if the Director of Revenue otherwise directs.

The status and rights of the employees transferred under this Section, and of the State of Illinois and its agencies, under the Personnel Code and applicable collective bargaining agreements or under any pension, retirement, or annuity plan shall not be affected by that transfer.

(d) On July 1, 2010, any remaining "other resources necessary for the operation of the Liquor Control Commission" that were transferred to the Department of Revenue for the operation of the State Commission pursuant to Executive Order No. 2003-9 shall be transferred by the Department of Revenue back to the State Commission.

(e) All books, records, papers, documents, property (real and personal), contracts, causes of action, and pending business pertaining to the persons, positions, or resources transferred under this Section from the Department of Revenue to the State Commission, including, but not limited to, material in electronic or magnetic format and necessary computer hardware and software, shall be transferred to the State Commission.

(f) All unexpended and unobligated appropriations and balances and other funds available on or after July 1, 2010 for use by the Department of Revenue for the employees or positions (or relating to the property) transferred under this Section shall be transferred for use by the State Commission. An unexpended appropriation so transferred shall be expended only for the purpose for which the appropriation was originally made.

(g) On July 1, 2010, any rules of the State Commission that became rules of the Department of Revenue under Executive Order No. 2003-9 shall again become the rules of the State Commission with respect to the transferred employees. This amendatory Act does not affect the legality of any such rules in the Illinois Administrative Code.

(h) This Section does not affect any act done, ratified, or canceled or any right occurring or established or any action or proceeding had or commenced in an administrative, civil, or criminal cause by the Department of Revenue before this Section takes effect that relates to a person, position, resource, or property transferred under this Section. Any such action or proceeding may be prosecuted and continued by the State Commission.

(i) The other provisions of this Section do not apply to or affect any employee, position, power, or duty of the Department of Revenue that was unaffected by Executive Order No. 2003-9, including without limitation those relating to the collection of taxes.

(235 ILCS 5/3-16 new)

Sec. 3-16. Investigators.

(a) The State Commission has the power to appoint investigators to conduct all investigations, searches, seizures, arrests, and other duties imposed under the provisions of any law administered by the State Commission. Except as provided in subsection (c), these investigators have and may exercise all the powers of peace officers solely for the purpose of enforcing this Act.

(b) The State Commission must authorize to each investigator employed under this Section and to any other employee of the State Commission exercising the powers of a peace officer a distinct badge that, on its face, (i) clearly states that the badge is authorized by the State Commission and (ii) contains a unique identifying number. No other badge shall be authorized by the State Commission.

(c) Notwithstanding any police powers granted to a State Commission investigator, an investigator may carry a firearm in the performance of his or her duties as an investigator only if all of the following conditions are met:

(1) the investigator possesses a valid Firearm Owner’s Identification Card issued under the Firearm Owners Identification Card Act;

(2) the investigator maintains firearms proficiency on an annual basis as determined by the State Commission; and

(3) the investigator has either successfully completed the 40-hour firearms training course of the Illinois Law Enforcement Training Standards Board under the Peace Officer Firearm Training Act or obtained a waiver from that Training Board based on at least 3 years of experience as a sworn police officer or graduation from a police academy recognized by the Training Board.

(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 being the keeper or is keeping a house of ill fame.

(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 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, a mayor, an alderman or member of a city council or commission, a member or president of a village board of trustees other than the president of the village board of trustees, or a member or president 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 cannot participate in any meetings, hearings, or decisions on matters impacting the manufacture, sale, or distribution of alcoholic liquor; and in the case of a mayor, village board president, or president of a county board, he or she must delegate any authority that he or she has over the manufacture, sale, or distribution of alcoholic liquor pursuant to any State statute or county or municipal ordinance, to another municipal, village, or county official in the jurisdiction over which he or she presides.

(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 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. 94-5, eff. 6-3-05; 94-289, eff. 1-1-06; 94-381, eff. 7-29-05; 95-331, eff. 8-21-07.)

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