Miller v. Illinois Liquor Control Commission

254 N.E.2d 502, 44 Ill. 2d 155, 1969 Ill. LEXIS 450
CourtIllinois Supreme Court
DecidedNovember 26, 1969
Docket42027
StatusPublished
Cited by6 cases

This text of 254 N.E.2d 502 (Miller v. Illinois Liquor Control Commission) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Illinois Liquor Control Commission, 254 N.E.2d 502, 44 Ill. 2d 155, 1969 Ill. LEXIS 450 (Ill. 1969).

Opinion

Mr. Justice Schaefer

delivered the opinion of the court :

The plaintiff, Virginia Miller, brought this action in the circuit court of Cook County to enjoin the Illinois Liquor Control Commission from enforcing those provisions of the Liquor Control Act which prohibit the issuance of a State license to the holder of a Federal gaming device stamp (Ill. Rev. Stat. 1967, ch. 43, par. 120, subpars. (16) (17) (18) (19)), and to enjoin the sheriff of Cook County from enforcing the provision of the Criminal Code which requires the holder of a Federal gaming device stamp to register with the county clerk in the county where he resides and where he does business. (Ill. Rev. Stat. 1967, ch. 38, par. 28 — 4.) The circuit court heard evidence and issued the injunctions as prayed. Constitutional questions are involved, and the defendants have appealed directly to this court.

The plaintiff holds a local retail liquor license issued by the Calumet Park Liquor Control Commission authorizing her to operate a tavern upon premises she has rented in Calumet Park, Illinois. She has also entered into an arrangement by which a coin-operated amusement device, commonly known as a pinball machine, would be placed in her tavern. The arrangement contemplated that she would receive "half of any monies that were in the machine.” Sections 4461 and 4462 of the Internal Revenue Code (26 U.S.C.A. secs. 4461, 4462) require any person who permits a coin-operated gaming device to be used on his premises to pay an excise tax and receive a Federal gaming device stamp. Plaintiff was required by rulings of the Internal Revenue Service interpreting sections 4461 and 4462 to purchase such a stamp for the pinball machine and she did so under protest.

In 1967 the General Assembly amended the Liquor Control Act to prohibit the Commission from issuing a license to anyone to whom a Federal gaming device stamp had been issued for the current tax period. (Ill. Rev. Stat. 1967, ch. 43, par. 120, subpars. (i6)(i7)(i8)(i9).) The Commission requires an applicant for a State license to state whether he has a Federal gaming device stamp for the current tax period. The complaint alleged that because the plaintiff must answer that question affirmatively the Commission would be required to refuse to issue a license to her. It also alleged that because pinball machines are legal in Illinois unless prohibited by a municipal ordinance, which Calumet Park does not have, the refusal of a license deprives her of due process of law under the fourteenth amendment to the Federal constitution and sections 1 and 2 of article II of the constitution of Illinois, and that the statute is invalid under sections 1 and 22 of article IV of the constitution of Illinois.

The complaint further alleged, and the trial court held, that the provision of the Criminal Code which requires that any person who has purchased a Federal gaming device tax stamp shall register the stamp in the office of the county clerk in the county in which he resides and in which he conducts any business (Ill. Rev. Stat. 1967, ch. 38, par. 28 — 4) violates the fifth and fourteenth amendments to the Federal constitution and section 10 of article II of the constitution of Illinois.

We consider first the statute which prohibits the issuance of a liquor license to one who holds a Federal gaming device stamp. Like other courts, this court has often held that because of its nature the right to engage in the liquor trade is not an inherent one, but is subject to regulation by the State in the exercise of its police power. (Oak Park Nat. Bank v. Village of Broadview (1963), 27 Ill.2d 151, 154; Schreiber v. Illinois Liquor Control Com. (1957), 12 Ill.2d 118, 121; Hornstein v. Illinois Liquor Control Com. (1952), 412 Ill. 365, 369.) It is axiomatic that the legislative judgment as to what the public welfare requires is not open to judicial dispute so long as that judgment is not exercised in such an arbitrary, oppressive and unreasonable manner as to constitute a deprivation of due process of law. The legislature’s discretion is broad, and its determinations may not be overturned because a court may think them unwise or inappropriate. See People ex rel. Baker v. Strautz (1944), 386 Ill. 360, 364 — 5; South Carolina State Highway Dept. v. Barnwell Bros., Inc., (1938), 303 U.S. 177, 191, 82 L. Ed. 734, 743, 5§ S. Ct. 510.

The plaintiff argues that the statute creates an irrebuttable presumption that a prospective licensee, to whom a Federal stamp has been issued, has in fact indulged in illegal gambling. And because pinball machines are not illegal . in Illinois, she argues, this presumption is arbitrary and unreasonable. If this was the premise underlying the statute, the plaintiff would be correct in her assertion. But the statute makes no such judgment. Its underlying premise is not that possession of a stamp necessarily implies that gambling exists or has existed, but rather that those devices for which such a stamp is required are particularly susceptible to being used for gambling.

This prohibition against owning both a liquor license and a gaming stamp is prophylactic in nature; it looks not to past or present actions, but only to the avoidance of opportunity for future transgression. The legislature has decided that gambling and liquor in combination is an evil to be avoided. It has sought to implement that decision by preventing those situations which lend themselves to such abuse from arising. Unless it can be said that the legislative prohibition has no rational tendency to minimize the likelihood of gambling on premises licensed for the sale of liquor, the legislative determination must be sustained.

Section 4461 of the Internal Revenue Code (26 U.S.C. 4461) imposes a tax upon “every person who * * * permits the use of, on any place or premises occupied by him, a coin-operated gaming device * * *.” Section 4462 (26 U.S.C. 4462) defines “coin-operated gaming device” to exclude “a bona fide vending or amusement machine in which gaming features are not incorporated * * Thus, by definition, it is only those devices which have built-in features suitable for gambling that are subject to the Federal tax. The Federal statute does not impose a tax on illegal gambling devices; it is concerned only with machines that have features which peculiarly afford the opportunity to gamble. (See Marchetti v. United States (1968), 390 U.S. 39, 19 L. Ed. 2d 889, 88 S. Ct. 697; United States v. Nine Gambling Devices (S.D. Ill. 1957), 59-2 USTC, par. 15,257; United States v. Korpan (1957), 354 U.S. 271, 1 L. Ed. 2d 1337, 77 S. Ct. 1099.) The general legality of the device under Illinois law is therefore irrelevant; the question is whether the legislature lacks the power to prohibit a device with built-in gambling features in an establishment licensed for the sale of liquor. That question must be answered in the negative.

The plaintiff relies heavily on Shoot v. Illinois Liquor Control Com. (1964), 30 Ill.2d 570.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

County of Cook v. Kontos
565 N.E.2d 249 (Appellate Court of Illinois, 1990)
Leong v. Village of Schaumburg
550 N.E.2d 1073 (Appellate Court of Illinois, 1990)
Two Kats, Inc. v. Village of Chicago Ridge
497 N.E.2d 1314 (Appellate Court of Illinois, 1986)
Jamaica Inn, Inc. v. Daley
331 N.E.2d 228 (Appellate Court of Illinois, 1975)
Daley v. Berzanskis
269 N.E.2d 716 (Illinois Supreme Court, 1971)

Cite This Page — Counsel Stack

Bluebook (online)
254 N.E.2d 502, 44 Ill. 2d 155, 1969 Ill. LEXIS 450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-illinois-liquor-control-commission-ill-1969.