Local communities will now have more control over which
businesses receive liquor licenses under a bill signed into law Aug. 2 by Gov.
Bruce Rauner.
Under the Liquor Control Act of 1934, the Prohibition-era law that governs
Illinois’ system of liquor licensure, businesses located within 100 feet of a
school, church or hospital are prohibited from obtaining liquor licenses.
Previously, the only way businesses could avoid this restriction was through the
passage of a bill in the General Assembly specifically granting them an
exemption, followed by the governor’s signature.
Senate Bill 2436 gives local officials the authority to exempt businesses from
the state’s liquor law, rather than leaving Springfield to grant special
carveouts to politically connected businesses. According to state Rep. Sara
Feigenholtz, D-Chicago, “Sixty-eight pages of the 72-page liquor control act are
exemptions.”
In January, Rauner vetoed a bill that would have exempted one business from the
liquor license restriction. Instead, the governor issued a letter urging
lawmakers to reform the state’s broken liquor law. Unfortunately, lawmakers
overrode Rauner’s veto the following month.
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SB 2436 passed with strong bipartisan support in the General
Assembly, and received the endorsement of advocacy groups such as the Small
Business Advocacy Council, Illinois Chamber of Commerce and Illinois Restaurant
Association.
However, there still remain other steps lawmakers could take to
reform Illinois’ archaic liquor laws. The state’s “three-tier” liquor
distribution system, in addition to restrictions on out-of-state imports, hurt
consumers and small business owners alike. Moreover, the Prairie State’s
sky-high alcohol taxes harm border-state businesses by sending shoppers across
state lines.
Lawmakers should build on the momentum of SB 2436 and continue to enact reforms
that target antiquated regulations.
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