HB2577 Enrolled LRB101 06994 RPS 52027 b
1		AN ACT concerning liquor.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Liquor Control Act of 1934 is amended by
5		changing Sections 3-4, 3-12, 8-2, 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
8		Commission commission shall obtain, pursuant to the provisions
9		of the "Personnel Code" enacted by the 69th General Assembly,
10		such inspectors, clerks, and other employees as may be
11		necessary to carry out the provisions of this Act, or to
12		perform the duties and exercise the powers conferred by law
13		upon the State Commission commission. The inspectors obtained
14		by the State Commission shall not be peace officers and shall
15		not exercise any powers of a peace officer.
16		The State Commission shall have the power to appoint
17		investigators to conduct investigations, searches, seizures,
18		arrests, and other duties required to enforce the provisions of
19		this Act, on behalf of the State Commission, and to ensure the
20		health, safety, and welfare of the People of the State of
21		Illinois. The Commission's investigators are peace officers
22		and have all the powers possessed by police officers in cities
23		and by sheriffs. State Commission investigators may exercise

HB2577 Enrolled - 2 - LRB101 06994 RPS 52027 b
1		these powers throughout the State whenever enforcing the
2		provisions of this Act, subject to the rules and orders of the
3		State Commission. No State Commission investigator may have
4		peace officer status or may exercise police powers unless: (1)
5		he or she successfully completes the basic police training
6		course mandated and approved by the Illinois Law Enforcement
7		Training Standards Board; or (2) the Illinois Law Enforcement
8		Training Standards Board waives the training requirement by
9		reason of the investigator's prior law enforcement experience,
10		training, or both.
11		The Executive Director must authorize to each investigator
12		of the State Commission and to any other employee of the
13		Department exercising the powers of a peace officer a distinct
14		badge that, on its face: (1) clearly states that the badge is
15		authorized by the State Commission; and (2) contains a unique
16		identifying number. No other badge shall be authorized by the
17		State Commission. Nothing in this Section prohibits the
18		Executive Director from issuing shields or other distinctive
19		identification to employees performing security or regulatory
20		duties who are not peace officers if the Executive Director
21		determines that a shield or distinctive identification is
22		needed by the employee to carry out his or her
23		responsibilities.
24		(Source: P.A. 82-783.)
25		(235 ILCS 5/3-12)

HB2577 Enrolled - 3 - LRB101 06994 RPS 52027 b
1		Sec. 3-12. Powers and duties of State Commission.
2		(a) The State Commission shall have the following powers,
3		functions, and duties:
4		(1) To receive applications and to issue licenses to
5		manufacturers, foreign importers, importing distributors,
6		distributors, non-resident dealers, on premise consumption
7		retailers, off premise sale retailers, special event
8		retailer licensees, special use permit licenses, auction
9		liquor licenses, brew pubs, caterer retailers,
10		non-beverage users, railroads, including owners and
11		lessees of sleeping, dining and cafe cars, airplanes,
12		boats, brokers, and wine maker's premises licensees in
13		accordance with the provisions of this Act, and to suspend
14		or revoke such licenses upon the State Commission's
15		determination, upon notice after hearing, that a licensee
16		has violated any provision of this Act or any rule or
17		regulation issued pursuant thereto and in effect for 30
18		days prior to such violation. Except in the case of an
19		action taken pursuant to a violation of Section 6-3, 6-5,
20		or 6-9, any action by the State Commission to suspend or
21		revoke a licensee's license may be limited to the license
22		for the specific premises where the violation occurred. An
23		action for a violation of this Act shall be commenced by
24		the State Commission within 2 years after the date the
25		State Commission becomes aware of the violation.
26		In lieu of suspending or revoking a license, the

HB2577 Enrolled - 4 - LRB101 06994 RPS 52027 b
1		commission may impose a fine, upon the State Commission's
2		determination and notice after hearing, that a licensee has
3		violated any provision of this Act or any rule or
4		regulation issued pursuant thereto and in effect for 30
5		days prior to such violation.
6		For the purpose of this paragraph (1), when determining
7		multiple violations for the sale of alcohol to a person
8		under the age of 21, a second or subsequent violation for
9		the sale of alcohol to a person under the age of 21 shall
10		only be considered if it was committed within 5 years after
11		the date when a prior violation for the sale of alcohol to
12		a person under the age of 21 was committed.
13		The fine imposed under this paragraph may not exceed
14		$500 for each violation. Each day that the activity, which
15		gave rise to the original fine, continues is a separate
16		violation. The maximum fine that may be levied against any
17		licensee, for the period of the license, shall not exceed
18		$20,000. The maximum penalty that may be imposed on a
19		licensee for selling a bottle of alcoholic liquor with a
20		foreign object in it or serving from a bottle of alcoholic
21		liquor with a foreign object in it shall be the destruction
22		of that bottle of alcoholic liquor for the first 10 bottles
23		so sold or served from by the licensee. For the eleventh
24		bottle of alcoholic liquor and for each third bottle
25		thereafter sold or served from by the licensee with a
26		foreign object in it, the maximum penalty that may be

HB2577 Enrolled - 5 - LRB101 06994 RPS 52027 b
1		imposed on the licensee is the destruction of the bottle of
2		alcoholic liquor and a fine of up to $50.
3		Any notice issued by the State Commission to a licensee
4		for a violation of this Act or any notice with respect to
5		settlement or offer in compromise shall include the field
6		report, photographs, and any other supporting
7		documentation necessary to reasonably inform the licensee
8		of the nature and extent of the violation or the conduct
9		alleged to have occurred. The failure to include such
10		required documentation shall result in the dismissal of the
11		action.
12		(2) To adopt such rules and regulations consistent with
13		the provisions of this Act which shall be necessary to
14		carry on its functions and duties to the end that the
15		health, safety and welfare of the People of the State of
16		Illinois shall be protected and temperance in the
17		consumption of alcoholic liquors shall be fostered and
18		promoted and to distribute copies of such rules and
19		regulations to all licensees affected thereby.
20		(3) To call upon other administrative departments of
21		the State, county and municipal governments, county and
22		city police departments and upon prosecuting officers for
23		such information and assistance as it deems necessary in
24		the performance of its duties.
25		(4) To recommend to local commissioners rules and
26		regulations, not inconsistent with the law, for the

HB2577 Enrolled - 6 - LRB101 06994 RPS 52027 b
1		distribution and sale of alcoholic liquors throughout the
2		State.
3		(5) To inspect, or cause to be inspected, any premises
4		in this State where alcoholic liquors are manufactured,
5		distributed, warehoused, or sold. Nothing in this Act
6		authorizes an agent of the State Commission Commission to
7		inspect private areas within the premises without
8		reasonable suspicion or a warrant during an inspection.
9		"Private areas" include, but are not limited to, safes,
10		personal property, and closed desks.
11		(5.1) Upon receipt of a complaint or upon having
12		knowledge that any person is engaged in business as a
13		manufacturer, importing distributor, distributor, or
14		retailer without a license or valid license, to conduct an
15		investigation. If, after conducting an investigation, the
16		State Commission is satisfied that the alleged conduct
17		occurred or is occurring, it may issue a cease and desist
18		notice as provided in this Act, impose civil penalties as
19		provided in this Act, to notify the local liquor authority,
20		or file a complaint with the State's Attorney's Office of
21		the county where the incident occurred or the Attorney
22		General , or initiate an investigation with the appropriate
23		law enforcement officials.
24		(5.2) Upon receipt of a complaint or upon having
25		knowledge that any person is To issue a cease and desist
26		notice to persons shipping alcoholic liquor into this State

HB2577 Enrolled - 7 - LRB101 06994 RPS 52027 b
1		from a point outside of this State if the shipment is in
2		violation of this Act, to conduct an investigation. If,
3		after conducting an investigation, the State Commission is
4		satisfied that the alleged conduct occurred or is
5		occurring, it may issue a cease and desist notice as
6		provided in this Act, impose civil penalties as provided in
7		this Act, notify the foreign jurisdiction, or file a
8		complaint with the State's Attorney's Office of the county
9		where the incident occurred or the Attorney General.
10		(5.3) To receive complaints from licensees, local
11		officials, law enforcement agencies, organizations, and
12		persons stating that any licensee has been or is violating
13		any provision of this Act or the rules and regulations
14		issued pursuant to this Act. Such complaints shall be in
15		writing, signed and sworn to by the person making the
16		complaint, and shall state with specificity the facts in
17		relation to the alleged violation. If the State Commission
18		has reasonable grounds to believe that the complaint
19		substantially alleges a violation of this Act or rules and
20		regulations adopted pursuant to this Act, it shall conduct
21		an investigation. If, after conducting an investigation,
22		the State Commission is satisfied that the alleged
23		violation did occur, it shall proceed with disciplinary
24		action against the licensee as provided in this Act.
25		(5.4) To make arrests and issue notices of civil
26		violations where necessary for the enforcement of this Act.

HB2577 Enrolled - 8 - LRB101 06994 RPS 52027 b
1		(5.5) To investigate any and all unlicensed activity.
2		(5.6) To impose civil penalties or fines to any person
3		who, without holding a valid license, engages in conduct
4		that requires a license pursuant to this Act, in an amount
5		not to exceed $20,000 for each offense as determined by the
6		State Commission. A civil penalty shall be assessed by the
7		State Commission after a hearing is held in accordance with
8		the provisions set forth in this Act regarding the
9		provision of a hearing for the revocation or suspension of
10		a license.
11		(6) To hear and determine appeals from orders of a
12		local commission in accordance with the provisions of this
13		Act, as hereinafter set forth. Hearings under this
14		subsection shall be held in Springfield or Chicago, at
15		whichever location is the more convenient for the majority
16		of persons who are parties to the hearing.
17		(7) The State Commission commission shall establish
18		uniform systems of accounts to be kept by all retail
19		licensees having more than 4 employees, and for this
20		purpose the State Commission commission may classify all
21		retail licensees having more than 4 employees and establish
22		a uniform system of accounts for each class and prescribe
23		the manner in which such accounts shall be kept. The State
24		Commission commission may also prescribe the forms of
25		accounts to be kept by all retail licensees having more
26		than 4 employees, including but not limited to accounts of

HB2577 Enrolled - 9 - LRB101 06994 RPS 52027 b
1		earnings and expenses and any distribution, payment, or
2		other distribution of earnings or assets, and any other
3		forms, records and memoranda which in the judgment of the
4		commission may be necessary or appropriate to carry out any
5		of the provisions of this Act, including but not limited to
6		such forms, records and memoranda as will readily and
7		accurately disclose at all times the beneficial ownership
8		of such retail licensed business. The accounts, forms,
9		records and memoranda shall be available at all reasonable
10		times for inspection by authorized representatives of the
11		State Commission or by any local liquor control
12		commissioner or his or her authorized representative. The
13		commission, may, from time to time, alter, amend or repeal,
14		in whole or in part, any uniform system of accounts, or the
15		form and manner of keeping accounts.
16		(8) In the conduct of any hearing authorized to be held
17		by the State Commission commission, to appoint, at the
18		commission's discretion, hearing officers to conduct
19		hearings involving complex issues or issues that will
20		require a protracted period of time to resolve, to examine,
21		or cause to be examined, under oath, any licensee, and to
22		examine or cause to be examined the books and records of
23		such licensee; to hear testimony and take proof material
24		for its information in the discharge of its duties
25		hereunder; to administer or cause to be administered oaths;
26		for any such purpose to issue subpoena or subpoenas to

HB2577 Enrolled - 10 - LRB101 06994 RPS 52027 b
1		require the attendance of witnesses and the production of
2		books, which shall be effective in any part of this State,
3		and to adopt rules to implement its powers under this
4		paragraph (8).
5		Any circuit court may by order duly entered, require
6		the attendance of witnesses and the production of relevant
7		books subpoenaed by the State Commission and the court may
8		compel obedience to its order by proceedings for contempt.
9		(9) To investigate the administration of laws in
10		relation to alcoholic liquors in this and other states and
11		any foreign countries, and to recommend from time to time
12		to the Governor and through him or her to the legislature
13		of this State, such amendments to this Act, if any, as it
14		may think desirable and as will serve to further the
15		general broad purposes contained in Section 1-2 hereof.
16		(10) To adopt such rules and regulations consistent
17		with the provisions of this Act which shall be necessary
18		for the control, sale or disposition of alcoholic liquor
19		damaged as a result of an accident, wreck, flood, fire or
20		other similar occurrence.
21		(11) To develop industry educational programs related
22		to responsible serving and selling, particularly in the
23		areas of overserving consumers and illegal underage
24		purchasing and consumption of alcoholic beverages.
25		(11.1) To license persons providing education and
26		training to alcohol beverage sellers and servers for

HB2577 Enrolled - 11 - LRB101 06994 RPS 52027 b
1		mandatory and non-mandatory training under the Beverage
2		Alcohol Sellers and Servers Education and Training
3		(BASSET) programs and to develop and administer a public
4		awareness program in Illinois to reduce or eliminate the
5		illegal purchase and consumption of alcoholic beverage
6		products by persons under the age of 21. Application for a
7		license shall be made on forms provided by the State
8		Commission.
9		(12) To develop and maintain a repository of license
10		and regulatory information.
11		(13) (Blank).
12		(14) On or before April 30, 2008 and every 2 years
13		thereafter, the State Commission shall present a written
14		report to the Governor and the General Assembly that shall
15		be based on a study of the impact of Public Act 95-634 on
16		the business of soliciting, selling, and shipping wine from
17		inside and outside of this State directly to residents of
18		this State. As part of its report, the State Commission
19		shall provide all of the following information:
20		(A) The amount of State excise and sales tax
21		revenues generated.
22		(B) The amount of licensing fees received.
23		(C) The number of cases of wine shipped from inside
24		and outside of this State directly to residents of this
25		State.
26		(D) The number of alcohol compliance operations

HB2577 Enrolled - 12 - LRB101 06994 RPS 52027 b
1		conducted.
2		(E) The number of winery shipper's licenses
3		issued.
4		(F) The number of each of the following: reported
5		violations; cease and desist notices issued by the
6		Commission; notices of violations issued by the
7		Commission and to the Department of Revenue; and
8		notices and complaints of violations to law
9		enforcement officials, including, without limitation,
10		the Illinois Attorney General and the U.S. Department
11		of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
12		(15) As a means to reduce the underage consumption of
13		alcoholic liquors, the State Commission shall conduct
14		alcohol compliance operations to investigate whether
15		businesses that are soliciting, selling, and shipping wine
16		from inside or outside of this State directly to residents
17		of this State are licensed by this State or are selling or
18		attempting to sell wine to persons under 21 years of age in
19		violation of this Act.
20		(16) The State Commission shall, in addition to
21		notifying any appropriate law enforcement agency, submit
22		notices of complaints or violations of Sections 6-29 and
23		6-29.1 by persons who do not hold a winery shipper's
24		license under this Act to the Illinois Attorney General and
25		to the U.S. Department of Treasury's Alcohol and Tobacco
26		Tax and Trade Bureau.

HB2577 Enrolled - 13 - LRB101 06994 RPS 52027 b
1		(17)(A) A person licensed to make wine under the laws
2		of another state who has a winery shipper's license under
3		this Act and annually produces less than 25,000 gallons of
4		wine or a person who has a first-class or second-class wine
5		manufacturer's license, a first-class or second-class
6		wine-maker's license, or a limited wine manufacturer's
7		license under this Act and annually produces less than
8		25,000 gallons of wine may make application to the
9		Commission for a self-distribution exemption to allow the
10		sale of not more than 5,000 gallons of the exemption
11		holder's wine to retail licensees per year.
12		(B) In the application, which shall be sworn under
13		penalty of perjury, such person shall state (1) the date it
14		was established; (2) its volume of production and sales for
15		each year since its establishment; (3) its efforts to
16		establish distributor relationships; (4) that a
17		self-distribution exemption is necessary to facilitate the
18		marketing of its wine; and (5) that it will comply with the
19		liquor and revenue laws of the United States, this State,
20		and any other state where it is licensed.
21		(C) The State Commission shall approve the application
22		for a self-distribution exemption if such person: (1) is in
23		compliance with State revenue and liquor laws; (2) is not a
24		member of any affiliated group that produces more than
25		25,000 gallons of wine per annum or produces any other
26		alcoholic liquor; (3) will not annually produce for sale

HB2577 Enrolled - 14 - LRB101 06994 RPS 52027 b
1		more than 25,000 gallons of wine; and (4) will not annually
2		sell more than 5,000 gallons of its wine to retail
3		licensees.
4		(D) A self-distribution exemption holder shall
5		annually certify to the State Commission its production of
6		wine in the previous 12 months and its anticipated
7		production and sales for the next 12 months. The State
8		Commission may fine, suspend, or revoke a
9		self-distribution exemption after a hearing if it finds
10		that the exemption holder has made a material
11		misrepresentation in its application, violated a revenue
12		or liquor law of Illinois, exceeded production of 25,000
13		gallons of wine in any calendar year, or become part of an
14		affiliated group producing more than 25,000 gallons of wine
15		or any other alcoholic liquor.
16		(E) Except in hearings for violations of this Act or
17		Public Act 95-634 or a bona fide investigation by duly
18		sworn law enforcement officials, the State Commission, or
19		its agents, the State Commission shall maintain the
20		production and sales information of a self-distribution
21		exemption holder as confidential and shall not release such
22		information to any person.
23		(F) The State Commission shall issue regulations
24		governing self-distribution exemptions consistent with
25		this Section and this Act.
26		(G) Nothing in this paragraph subsection (17) shall

HB2577 Enrolled - 15 - LRB101 06994 RPS 52027 b
1		prohibit a self-distribution exemption holder from
2		entering into or simultaneously having a distribution
3		agreement with a licensed Illinois distributor.
4		(H) It is the intent of this paragraph subsection (17)
5		to promote and continue orderly markets. The General
6		Assembly finds that in order to preserve Illinois'
7		regulatory distribution system it is necessary to create an
8		exception for smaller makers of wine as their wines are
9		frequently adjusted in varietals, mixes, vintages, and
10		taste to find and create market niches sometimes too small
11		for distributor or importing distributor business
12		strategies. Limited self-distribution rights will afford
13		and allow smaller makers of wine access to the marketplace
14		in order to develop a customer base without impairing the
15		integrity of the 3-tier system.
16		(18)(A) A class 1 brewer licensee, who must also be
17		either a licensed brewer or licensed non-resident dealer
18		and annually manufacture less than 930,000 gallons of beer,
19		may make application to the State Commission for a
20		self-distribution exemption to allow the sale of not more
21		than 232,500 gallons of the exemption holder's beer per
22		year to retail licensees and to brewers, class 1 brewers,
23		and class 2 brewers that, pursuant to subsection (e) of
24		Section 6-4 of this Act, sell beer, cider, or both beer and
25		cider to non-licensees at their breweries.
26		(B) In the application, which shall be sworn under

HB2577 Enrolled - 16 - LRB101 06994 RPS 52027 b
1		penalty of perjury, the class 1 brewer licensee shall state
2		(1) the date it was established; (2) its volume of beer
3		manufactured and sold for each year since its
4		establishment; (3) its efforts to establish distributor
5		relationships; (4) that a self-distribution exemption is
6		necessary to facilitate the marketing of its beer; and (5)
7		that it will comply with the alcoholic beverage and revenue
8		laws of the United States, this State, and any other state
9		where it is licensed.
10		(C) Any application submitted shall be posted on the
11		State Commission's website at least 45 days prior to action
12		by the State Commission. The State Commission shall approve
13		the application for a self-distribution exemption if the
14		class 1 brewer licensee: (1) is in compliance with the
15		State, revenue, and alcoholic beverage laws; (2) is not a
16		member of any affiliated group that manufactures more than
17		930,000 gallons of beer per annum or produces any other
18		alcoholic beverages; (3) shall not annually manufacture
19		for sale more than 930,000 gallons of beer; (4) shall not
20		annually sell more than 232,500 gallons of its beer to
21		retail licensees or to brewers, class 1 brewers, and class
22		2 brewers that, pursuant to subsection (e) of Section 6-4
23		of this Act, sell beer, cider, or both beer and cider to
24		non-licensees at their breweries; and (5) has relinquished
25		any brew pub license held by the licensee, including any
26		ownership interest it held in the licensed brew pub.

HB2577 Enrolled - 17 - LRB101 06994 RPS 52027 b
1		(D) A self-distribution exemption holder shall
2		annually certify to the State Commission its manufacture of
3		beer during the previous 12 months and its anticipated
4		manufacture and sales of beer for the next 12 months. The
5		State Commission may fine, suspend, or revoke a
6		self-distribution exemption after a hearing if it finds
7		that the exemption holder has made a material
8		misrepresentation in its application, violated a revenue
9		or alcoholic beverage law of Illinois, exceeded the
10		manufacture of 930,000 gallons of beer in any calendar year
11		or became part of an affiliated group manufacturing more
12		than 930,000 gallons of beer or any other alcoholic
13		beverage.
14		(E) The State Commission shall issue rules and
15		regulations governing self-distribution exemptions
16		consistent with this Act.
17		(F) Nothing in this paragraph (18) shall prohibit a
18		self-distribution exemption holder from entering into or
19		simultaneously having a distribution agreement with a
20		licensed Illinois importing distributor or a distributor.
21		If a self-distribution exemption holder enters into a
22		distribution agreement and has assigned distribution
23		rights to an importing distributor or distributor, then the
24		self-distribution exemption holder's distribution rights
25		in the assigned territories shall cease in a reasonable
26		time not to exceed 60 days.

HB2577 Enrolled - 18 - LRB101 06994 RPS 52027 b
1		(G) It is the intent of this paragraph (18) to promote
2		and continue orderly markets. The General Assembly finds
3		that in order to preserve Illinois' regulatory
4		distribution system, it is necessary to create an exception
5		for smaller manufacturers in order to afford and allow such
6		smaller manufacturers of beer access to the marketplace in
7		order to develop a customer base without impairing the
8		integrity of the 3-tier system.
9		(b) On or before April 30, 1999, the Commission shall
10		present a written report to the Governor and the General
11		Assembly that shall be based on a study of the impact of Public
12		Act 90-739 on the business of soliciting, selling, and shipping
13		alcoholic liquor from outside of this State directly to
14		residents of this State.
15		As part of its report, the Commission shall provide the
16		following information:
17		(i) the amount of State excise and sales tax revenues
18		generated as a result of Public Act 90-739;
19		(ii) the amount of licensing fees received as a result
20		of Public Act 90-739;
21		(iii) the number of reported violations, the number of
22		cease and desist notices issued by the Commission, the
23		number of notices of violations issued to the Department of
24		Revenue, and the number of notices and complaints of
25		violations to law enforcement officials.
26		(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;

HB2577 Enrolled - 19 - LRB101 06994 RPS 52027 b
1		100-134, eff. 8-18-17; 100-201, eff. 8-18-17; 100-816, eff.
2		8-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. 8-23-18;
3		revised 10-24-18.)
4		(235 ILCS 5/8-2) (from Ch. 43, par. 159)
5		Sec. 8-2. Payments; reports. It is the duty of each
6		manufacturer with respect to alcoholic liquor produced or
7		imported by such manufacturer, or purchased tax-free by such
8		manufacturer from another manufacturer or importing
9		distributor, and of each importing distributor as to alcoholic
10		liquor purchased by such importing distributor from foreign
11		importers or from anyone from any point in the United States
12		outside of this State or purchased tax-free from another
13		manufacturer or importing distributor, to pay the tax imposed
14		by Section 8-1 to the Department of Revenue on or before the
15		15th day of the calendar month following the calendar month in
16		which such alcoholic liquor is sold or used by such
17		manufacturer or by such importing distributor other than in an
18		authorized tax-free manner or to pay that tax electronically as
19		provided in this Section.
20		Each manufacturer and each importing distributor shall
21		make payment under one of the following methods: (1) on or
22		before the 15th day of each calendar month, file in person or
23		by United States first-class mail, postage pre-paid, with the
24		Department of Revenue, on forms prescribed and furnished by the
25		Department, a report in writing in such form as may be required

HB2577 Enrolled - 20 - LRB101 06994 RPS 52027 b
1		by the Department in order to compute, and assure the accuracy
2		of, the tax due on all taxable sales and uses of alcoholic
3		liquor occurring during the preceding month. Payment of the tax
4		in the amount disclosed by the report shall accompany the
5		report or, (2) on or before the 15th day of each calendar
6		month, electronically file with the Department of Revenue, on
7		forms prescribed and furnished by the Department, an electronic
8		report in such form as may be required by the Department in
9		order to compute, and assure the accuracy of, the tax due on
10		all taxable sales and uses of alcoholic liquor occurring during
11		the preceding month. An electronic payment of the tax in the
12		amount disclosed by the report shall accompany the report. A
13		manufacturer or distributor who files an electronic report and
14		electronically pays the tax imposed pursuant to Section 8-1 to
15		the Department of Revenue on or before the 15th day of the
16		calendar month following the calendar month in which such
17		alcoholic liquor is sold or used by that manufacturer or
18		importing distributor other than in an authorized tax-free
19		manner shall pay to the Department the amount of the tax
20		imposed pursuant to Section 8-1, less a discount which is
21		allowed to reimburse the manufacturer or importing distributor
22		for the expenses incurred in keeping and maintaining records,
23		preparing and filing the electronic returns, remitting the tax,
24		and supplying data to the Department upon request.
25		The discount shall be in an amount as follows:
26		(1) For original returns due on or after January 1,

HB2577 Enrolled - 21 - LRB101 06994 RPS 52027 b
1		2003 through September 30, 2003, the discount shall be
2		1.75% or $1,250 per return, whichever is less;
3		(2) For original returns due on or after October 1,
4		2003 through September 30, 2004, the discount shall be 2%
5		or $3,000 per return, whichever is less; and
6		(3) For original returns due on or after October 1,
7		2004, the discount shall be 2% or $2,000 per return,
8		whichever is less.
9		The Department may, if it deems it necessary in order to
10		insure the payment of the tax imposed by this Article, require
11		returns to be made more frequently than and covering periods of
12		less than a month. Such return shall contain such further
13		information as the Department may reasonably require.
14		It shall be presumed that all alcoholic liquors acquired or
15		made by any importing distributor or manufacturer have been
16		sold or used by him in this State and are the basis for the tax
17		imposed by this Article unless proven, to the satisfaction of
18		the Department, that such alcoholic liquors are (1) still in
19		the possession of such importing distributor or manufacturer,
20		or (2) prior to the termination of possession have been lost by
21		theft or through unintentional destruction, or (3) that such
22		alcoholic liquors are otherwise exempt from taxation under this
23		Act.
24		If any payment provided for in this Section exceeds the
25		manufacturer's or importing distributor's liabilities under
26		this Act, as shown on an original report, the manufacturer or

HB2577 Enrolled - 22 - LRB101 06994 RPS 52027 b
1		importing distributor may credit such excess payment against
2		liability subsequently to be remitted to the Department under
3		this Act, in accordance with reasonable rules adopted by the
4		Department. If the Department subsequently determines that all
5		or any part of the credit taken was not actually due to the
6		manufacturer or importing distributor, the manufacturer's or
7		importing distributor's discount shall be reduced by an amount
8		equal to the difference between the discount as applied to the
9		credit taken and that actually due, and the manufacturer or
10		importing distributor shall be liable for penalties and
11		interest on such difference.
12		The Department may require any foreign importer to file
13		monthly information returns, by the 15th day of the month
14		following the month which any such return covers, if the
15		Department determines this to be necessary to the proper
16		performance of the Department's functions and duties under this
17		Act. Such return shall contain such information as the
18		Department may reasonably require.
19		Every manufacturer and importing distributor, except for a
20		manufacturer or importing distributor that in the preceding
21		year had less than $50,000 of tax liability under this Article,
22		shall also file, with the Department, a bond in an amount not
23		less than $1,000 and not to exceed $100,000 on a form to be
24		approved by, and with a surety or sureties satisfactory to, the
25		Department. Such bond shall be conditioned upon the
26		manufacturer or importing distributor paying to the Department

HB2577 Enrolled - 23 - LRB101 06994 RPS 52027 b
1		all monies becoming due from such manufacturer or importing
2		distributor under this Article. The Department shall fix the
3		penalty of such bond in each case, taking into consideration
4		the amount of alcoholic liquor expected to be sold and used by
5		such manufacturer or importing distributor, and the penalty
6		fixed by the Department shall be sufficient, in the
7		Department's opinion, to protect the State of Illinois against
8		failure to pay any amount due under this Article, but the
9		amount of the penalty fixed by the Department shall not exceed
10		twice the amount of tax liability of a monthly return, nor
11		shall the amount of such penalty be less than $1,000. The
12		Department shall notify the State Commission of the
13		Department's approval or disapproval of any such
14		manufacturer's or importing distributor's bond, or of the
15		termination or cancellation of any such bond, or of the
16		Department's direction to a manufacturer or importing
17		distributor that he must file additional bond in order to
18		comply with this Section. The Commission shall not issue a
19		license to any applicant for a manufacturer's or importing
20		distributor's license unless the Commission has received a
21		notification from the Department showing that such applicant
22		has filed a satisfactory bond with the Department hereunder and
23		that such bond has been approved by the Department. Failure by
24		any licensed manufacturer or importing distributor to keep a
25		satisfactory bond in effect with the Department or to furnish
26		additional bond to the Department, when required hereunder by

HB2577 Enrolled - 24 - LRB101 06994 RPS 52027 b
1		the Department to do so, shall be grounds for the revocation or
2		suspension of such manufacturer's or importing distributor's
3		license by the Commission. If a manufacturer or importing
4		distributor fails to pay any amount due under this Article, his
5		bond with the Department shall be deemed forfeited, and the
6		Department may institute a suit in its own name on such bond.
7		After notice and opportunity for a hearing the State
8		Commission may revoke or suspend the license of any
9		manufacturer or importing distributor who fails to comply with
10		the provisions of this Section. Notice of such hearing and the
11		time and place thereof shall be in writing and shall contain a
12		statement of the charges against the licensee. Such notice may
13		be given by United States registered or certified mail with
14		return receipt requested, addressed to the person concerned at
15		his last known address and shall be given not less than 7 days
16		prior to the date fixed for the hearing. An order revoking or
17		suspending a license under the provisions of this Section may
18		be reviewed in the manner provided in Section 7-10 of this Act.
19		No new license shall be granted to a person whose license has
20		been revoked for a violation of this Section or, in case of
21		suspension, shall such suspension be terminated until he has
22		paid to the Department all taxes and penalties which he owes
23		the State under the provisions of this Act.
24		Every manufacturer or importing distributor who has, as
25		verified by the Department, continuously complied with the
26		conditions of the bond under this Act for a period of 2 years

HB2577 Enrolled - 25 - LRB101 06994 RPS 52027 b
1		shall be considered to be a prior continuous compliance
2		taxpayer. In determining the consecutive period of time for
3		qualification as a prior continuous compliance taxpayer, any
4		consecutive period of time of qualifying compliance
5		immediately prior to the effective date of this amendatory Act
6		of 1987 shall be credited to any manufacturer or importing
7		distributor.
8		A manufacturer or importing distributor that is a prior
9		continuous compliance taxpayer under this Section and becomes a
10		successor as the result of an acquisition, merger, or
11		consolidation of a manufacturer or importing distributor shall
12		be deemed to be a prior continuous compliance taxpayer with
13		respect to the acquired, merged, or consolidated entity.
14		Every prior continuous compliance taxpayer shall be exempt
15		from the bond requirements of this Act until the Department has
16		determined the taxpayer to be delinquent in the filing of any
17		return or deficient in the payment of any tax under this Act.
18		Any taxpayer who fails to pay an admitted or established
19		liability under this Act may also be required to post bond or
20		other acceptable security with the Department guaranteeing the
21		payment of such admitted or established liability.
22		The Department shall discharge any surety and shall release
23		and return any bond or security deposit assigned, pledged or
24		otherwise provided to it by a taxpayer under this Section
25		within 30 days after: (1) such taxpayer becomes a prior
26		continuous compliance taxpayer; or (2) such taxpayer has ceased

HB2577 Enrolled - 26 - LRB101 06994 RPS 52027 b
1		to collect receipts on which he is required to remit tax to the
2		Department, has filed a final tax return, and has paid to the
3		Department an amount sufficient to discharge his remaining tax
4		liability as determined by the Department under this Act.
5		(Source: P.A. 100-1171, eff. 1-4-19.)
6		(235 ILCS 5/10-1) (from Ch. 43, par. 183)
7		Sec. 10-1. Violations; penalties. Whereas a substantial
8		threat to the sound and careful control, regulation, and
9		taxation of the manufacture, sale, and distribution of
10		alcoholic liquors exists by virtue of individuals who
11		manufacture, import, distribute, or sell alcoholic liquors
12		within the State without having first obtained a valid license
13		to do so, and whereas such threat is especially serious along
14		the borders of this State, and whereas such threat requires
15		immediate correction by this Act, by active investigation and
16		prosecution by the State Commission, law enforcement
17		officials, and prosecutors, and by prompt and strict
18		enforcement through the courts of this State to punish
19		violators and to deter such conduct in the future:
20		(a) Any person who manufactures, imports for distribution
21		or use, transports from outside this State into this State, or
22		distributes or sells 108 liters (28.53 gallons) or more of
23		wine, 45 liters (11.88 gallons) or more of distilled spirits,
24		or 118 liters (31.17 gallons) or more of beer at any place
25		within the State without having first obtained a valid license

HB2577 Enrolled - 27 - LRB101 06994 RPS 52027 b
1		to do so under the provisions of this Act shall be guilty of a
2		Class 4 felony for each offense. However, any person who was
3		duly licensed under this Act and whose license expired within
4		30 days prior to a violation shall be guilty of a business
5		offense and fined not more than $1,000 for the first such
6		offense and shall be guilty of a Class 4 felony for each
7		subsequent offense.
8		Any person who manufactures, imports for distribution,
9		transports from outside this State into this State for sale or
10		resale in this State, or distributes or sells less than 108
11		liters (28.53 gallons) of wine, less than 45 liters (11.88
12		gallons) of distilled spirits, or less than 118 liters (31.17
13		gallons) of beer at any place within the State without having
14		first obtained a valid license to do so under the provisions of
15		this Act shall be guilty of a business offense and fined not
16		more than $1,000 for the first such offense and shall be guilty
17		of a Class 4 felony for each subsequent offense. This
18		subsection does not apply to a motor carrier or freight
19		forwarder, as defined in Section 13102 of Title 49 of the
20		United States Code, an air carrier, as defined in Section 40102
21		of Title 49 of the United States Code, or a rail carrier, as
22		defined in Section 10102 of Title 49 of the United States Code.
23		Any person who: (1) both has been issued an initial cease
24		and desist notice from the State Commission; and (2) for
25		compensation, does any of the following: (i) ships alcoholic
26		liquor into this State without a license authorized by Section

HB2577 Enrolled - 28 - LRB101 06994 RPS 52027 b
1		5-1 issued by the State Commission or in violation of that
2		license; or (ii) manufactures, imports for distribution,
3		transports from outside this State into this State for sale or
4		resale in this State, or distributes or sells alcoholic liquors
5		at any place without having first obtained a valid license to
6		do so is guilty of a Class 4 felony for each offense.
7		(b) (1) Any retailer, caterer retailer, brew pub, special
8		event retailer, special use permit holder, homebrewer special
9		event permit holder, or craft distiller tasting permit holder
10		who knowingly causes alcoholic liquors to be imported directly
11		into the State of Illinois from outside of the State for the
12		purpose of furnishing, giving, or selling to another, except
13		when having received the product from a duly licensed
14		distributor or importing distributor, licensed in this State,
15		who knowingly causes to furnish, give, sell, or otherwise being
16		within the State, any alcoholic liquor destined to be used,
17		distributed, consumed or sold in another state, unless such
18		alcoholic liquor was received in this State by a duly licensed
19		distributor, or importing distributors shall have his license
20		suspended for 30 7 days for the first offense and for the
21		second offense, shall have his license revoked by the
22		Commission.
23		(2) In the event the State Commission receives a certified
24		copy of a final order from a foreign jurisdiction that an
25		Illinois retail licensee has been found to have violated that
26		foreign jurisdiction's laws, rules, or regulations concerning

HB2577 Enrolled - 29 - LRB101 06994 RPS 52027 b
1		the importation of alcoholic liquor into that foreign
2		jurisdiction, the violation may be grounds for the State
3		Commission to revoke, suspend, or refuse to issue or renew a
4		license, to impose a fine, or to take any additional action
5		provided by this Act with respect to the Illinois retail
6		license or licensee. Any such action on the part of the State
7		Commission shall be in accordance with this Act and
8		implementing rules.
9		For the purposes of paragraph (2): (i) "foreign
10		jurisdiction" means a state, territory, or possession of the
11		United States, the District of Columbia, or the Commonwealth of
12		Puerto Rico, and (ii) "final order" means an order or judgment
13		of a court or administrative body that determines the rights of
14		the parties respecting the subject matter of the proceeding,
15		that remains in full force and effect, and from which no appeal
16		can be taken.
17		(c) Any person who shall make any false statement or
18		otherwise violates any of the provisions of this Act in
19		obtaining any license hereunder, or who having obtained a
20		license hereunder shall violate any of the provisions of this
21		Act with respect to the manufacture, possession, distribution
22		or sale of alcoholic liquor, or with respect to the maintenance
23		of the licensed premises, or shall violate any other provision
24		of this Act, shall for a first offense be guilty of a petty
25		offense and fined not more than $500, and for a second or
26		subsequent offense shall be guilty of a Class B misdemeanor.

HB2577 Enrolled - 30 - LRB101 06994 RPS 52027 b
1		(c-5) Any owner of an establishment that serves alcohol on
2		its premises, if more than 50% of the establishment's gross
3		receipts within the prior 3 months is from the sale of alcohol,
4		who knowingly fails to prohibit concealed firearms on its
5		premises or who knowingly makes a false statement or record to
6		avoid the prohibition of concealed firearms on its premises
7		under the Firearm Concealed Carry Act shall be guilty of a
8		business offense with a fine up to $5,000.
9		(d) Each day any person engages in business as a
10		manufacturer, foreign importer, importing distributor,
11		distributor or retailer in violation of the provisions of this
12		Act shall constitute a separate offense.
13		(e) Any person, under the age of 21 years who, for the
14		purpose of buying, accepting or receiving alcoholic liquor from
15		a licensee, represents that he is 21 years of age or over shall
16		be guilty of a Class A misdemeanor.
17		(f) In addition to the penalties herein provided, any
18		person licensed as a wine-maker in either class who
19		manufactures more wine than authorized by his license shall be
20		guilty of a business offense and shall be fined $1 for each
21		gallon so manufactured.
22		(g) A person shall be exempt from prosecution for a
23		violation of this Act if he is a peace officer in the
24		enforcement of the criminal laws and such activity is approved
25		in writing by one of the following:
26		(1) In all counties, the respective State's Attorney;

HB2577 Enrolled - 31 - LRB101 06994 RPS 52027 b
1		(2) The Director of State Police under Section 2605-10,
2		2605-15, 2605-75, 2605-100, 2605-105, 2605-110, 2605-115,
3		2605-120, 2605-130, 2605-140, 2605-190, 2605-200,
4		2605-205, 2605-210, 2605-215, 2605-250, 2605-275,
5		2605-300, 2605-305, 2605-315, 2605-325, 2605-335,
6		2605-340, 2605-350, 2605-355, 2605-360, 2605-365,
7		2605-375, 2605-390, 2605-400, 2605-405, 2605-420,
8		2605-430, 2605-435, 2605-500, 2605-525, or 2605-550 of the
9		Department of State Police Law (20 ILCS 2605/2605-10,
10		2605/2605-15, 2605/2605-75, 2605/2605-100, 2605/2605-105,
11		2605/2605-110, 2605/2605-115, 2605/2605-120,
12		2605/2605-130, 2605/2605-140, 2605/2605-190,
13		2605/2605-200, 2605/2605-205, 2605/2605-210,
14		2605/2605-215, 2605/2605-250, 2605/2605-275,
15		2605/2605-300, 2605/2605-305, 2605/2605-315,
16		2605/2605-325, 2605/2605-335, 2605/2605-340,
17		2605/2605-350, 2605/2605-355, 2605/2605-360,
18		2605/2605-365, 2605/2605-375, 2605/2605-390,
19		2605/2605-400, 2605/2605-405, 2605/2605-420,
20		2605/2605-430, 2605/2605-435, 2605/2605-500,
21		2605/2605-525, or 2605/2605-550); or
22		(3) In cities over 1,000,000, the Superintendent of
23		Police.
24		(Source: P.A. 98-63, eff. 7-9-13; 99-904, eff. 1-1-17.)
25		(235 ILCS 5/10-7.1) (from Ch. 43, par. 189.1)

HB2577 Enrolled - 32 - LRB101 06994 RPS 52027 b
1		Sec. 10-7.1. The State Commission, upon receipt of a
2		complaint or upon having knowledge that any person is engaged
3		in the business as a manufacturer, importing distributor,
4		distributor, or retailer without a license or valid license,
5		shall conduct an investigation. If, after conducting an
6		investigation, the State Commission is satisfied that the
7		alleged conduct occurred or is occurring, it may issue a cease
8		and desist notice as provided in this Act, issue civil
9		penalties as provided in this Act, notify the Department of
10		Revenue and the local liquor authority, or and file a complaint
11		with the State's Attorney's Office of the County where the
12		incident occurred or with the Attorney General initiate an
13		investigation with the appropriate law enforcement officials.
14		(Source: P.A. 90-739, eff. 8-13-98.)
15		Section 99. Effective date. This Act takes effect upon
16		becoming law, except that the changes to Section 8-2 of the
17		Liquor Control Act of 1934 take effect