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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 HB5011
Introduced 02/05/04, by John A. Fritchey SYNOPSIS AS INTRODUCED: |
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235 ILCS 5/5-1 |
from Ch. 43, par. 115 |
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Amends the Liquor Control Act of 1934. Deletes provisions creating 2 classes of retailer's licenses (on premise consumption license and off premise sale license). Provides that the Illinois Liquor Control Control Commission may designate a retailer's licensee as either an on premise consumption retailer or an off premise sale retailer. Effective immediately.
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A BILL FOR
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HB5011 |
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LRB093 19000 LRD 44735 b |
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| AN ACT in relation to alcoholic liquor.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Liquor Control Act of 1934 is amended by |
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| changing Section 5-1 as follows:
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| (235 ILCS 5/5-1) (from Ch. 43, par. 115)
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| Sec. 5-1. Licenses issued by the Illinois Liquor Control |
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| Commission
shall be of the following classes:
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| (a) Manufacturer's license - Class 1.
Distiller, Class 2. |
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| Rectifier, Class 3. Brewer, Class 4. First Class Wine
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| Manufacturer, Class 5. Second Class Wine Manufacturer,
Class 6. |
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| First Class Winemaker, Class 7. Second Class Winemaker, Class |
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| 8.
Limited Wine Manufacturer,
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| (b) Distributor's license,
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| (c) Importing Distributor's license,
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| (d) Retailer's license,
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| (e) Special Event Retailer's license (not-for-profit),
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| (f) Railroad license,
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| (g) Boat license,
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| (h) Non-Beverage User's license,
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| (i) Wine-maker's premises license,
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| (j) Airplane license,
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| (k) Foreign importer's license,
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| (l) Broker's license,
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| (m) Non-resident dealer's
license,
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| (n) Brew Pub license,
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| (o) Auction liquor license,
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| (p) Caterer retailer license,
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| (q) Special use permit license.
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| No
person, firm, partnership, corporation, or other legal |
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| business entity that is
engaged in the manufacturing of wine |
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| may concurrently obtain and hold a
wine-maker's license and a |
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HB5011 |
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LRB093 19000 LRD 44735 b |
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| wine manufacturer's license.
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| (a) A manufacturer's license shall allow the manufacture,
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| importation in bulk, storage, distribution and sale of |
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| alcoholic liquor
to persons without the State, as may be |
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| permitted by law and to licensees
in this State as follows:
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| Class 1. A Distiller may make sales and deliveries of |
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| alcoholic liquor to
distillers, rectifiers, importing |
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| distributors, distributors and
non-beverage users and to no |
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| other licensees.
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| Class 2. A Rectifier, who is not a distiller, as defined |
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| herein, may make
sales and deliveries of alcoholic liquor to |
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| rectifiers, importing distributors,
distributors, retailers |
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| and non-beverage users and to no other licensees.
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| Class 3. A Brewer may make sales and deliveries of beer to |
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| importing
distributors, distributors, and to non-licensees, |
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| and to
retailers provided the brewer obtains an importing |
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| distributor's license or
distributor's license in accordance |
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| with the provisions of this Act.
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| Class 4. A first class wine-manufacturer may make sales and |
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| deliveries of
up to 50,000 gallons of wine to manufacturers,
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| importing
distributors and distributors, and to no other |
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| licensees.
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| Class 5. A second class Wine manufacturer may make sales |
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| and deliveries
of more than 50,000 gallons of wine to |
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| manufacturers, importing distributors
and distributors and to |
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| no other licensees.
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| Class 6. A first-class wine-maker's license shall allow the |
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| manufacture
of up to 50,000 gallons of wine per year, and the
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| storage
and sale of such
wine to distributors in the State and |
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| to persons without the
State, as may be permitted by law. A |
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| first-class wine-maker's license shall
allow the sale of no |
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| more than 5,000
gallons of the licensee's wine to retailers. |
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| The State Commission shall issue
only one first-class |
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| wine-maker's license to any person, firm, partnership,
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| corporation, or other legal business entity that is engaged in |
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| the making of
less than 50,000 gallons of wine annually that |
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HB5011 |
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LRB093 19000 LRD 44735 b |
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| applies for a first-class
wine-maker's license. No subsidiary |
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| or affiliate thereof, nor any officer,
associate, member, |
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| partner, representative, employee, agent, or shareholder may
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| be issued an additional wine-maker's license by the State |
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| Commission.
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| Class 7. A second-class wine-maker's license shall allow |
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| the manufacture
of between 50,000 and 100,000 gallons of wine |
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| per year, and
the
storage and sale of such wine
to distributors |
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| in this State and to persons without the State, as may be
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| permitted by law. A second-class wine-maker's license shall |
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| allow the sale
of
no more than 10,000 gallons of the licensee's |
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| wine directly to retailers.
The State Commission shall issue |
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| only one second-class wine-maker's license
to any person, firm, |
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| partnership, corporation, or other legal business entity
that |
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| is engaged in the making of less than 100,000 gallons of wine |
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| annually
that applies for a second-class wine-maker's license. |
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| No subsidiary or
affiliate thereof, or any officer, associate, |
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| member, partner, representative,
employee, agent, or |
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| shareholder may be issued an additional wine-maker's
license by |
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| the State Commission.
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| Class 8. A limited wine-manufacturer may make sales and |
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| deliveries not to
exceed 40,000 gallons of wine per year to |
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| distributors, and to
non-licensees in accordance with the |
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| provisions of this Act.
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| (a-1) A manufacturer which is licensed in this State to |
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| make sales or
deliveries of alcoholic liquor and which enlists |
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| agents, representatives, or
individuals acting on its behalf |
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| who contact licensed retailers on a regular
and continual basis |
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| in this State must register those agents, representatives,
or |
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| persons acting on its behalf with the State Commission.
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| Registration of agents, representatives, or persons acting |
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| on behalf of a
manufacturer is fulfilled by submitting a form |
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| to the Commission. The form
shall be developed by the |
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| Commission and shall include the name and address of
the |
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| applicant, the name and address of the manufacturer he or she |
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| represents,
the territory or areas assigned to sell to or |
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HB5011 |
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LRB093 19000 LRD 44735 b |
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| discuss pricing terms of
alcoholic liquor, and any other |
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| questions deemed appropriate and necessary.
All statements in |
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| the forms required to be made by law or by rule shall be
deemed |
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| material, and any person who knowingly misstates any material |
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| fact under
oath in an application is guilty of a Class B |
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| misdemeanor. Fraud,
misrepresentation, false statements, |
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| misleading statements, evasions, or
suppression of material |
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| facts in the securing of a registration are grounds for
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| suspension or revocation of the registration.
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| (b) A distributor's license shall allow the wholesale |
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| purchase and storage
of alcoholic liquors and sale of alcoholic |
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| liquors to licensees
in this State and to persons without the |
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| State, as may be permitted by law.
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| (c) An importing distributor's license may be issued to and |
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| held by
those only who are duly licensed distributors, upon the |
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| filing of an
application by a duly licensed distributor, with |
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| the Commission and
the Commission shall, without the
payment of |
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| any fee, immediately issue such importing distributor's
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| license to the applicant, which shall allow the importation of |
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| alcoholic
liquor by the licensee into this State from any point |
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| in the United
States outside this State, and the purchase of |
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| alcoholic liquor in
barrels, casks or other bulk containers and |
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| the bottling of such
alcoholic liquors before resale thereof, |
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| but all bottles or containers
so filled shall be sealed, |
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| labeled, stamped and otherwise made to comply
with all |
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| provisions, rules and regulations governing manufacturers in
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| the preparation and bottling of alcoholic liquors. The |
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| importing
distributor's license shall permit such licensee to |
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| purchase alcoholic
liquor from Illinois licensed non-resident |
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| dealers and foreign importers only.
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| (d) A retailer's license shall allow the licensee to sell |
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| and offer
for sale at retail, only in the premises specified in |
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| the
such license,
alcoholic liquor for use or consumption, but |
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| not for resale in any form:
Provided that any retail license |
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| issued to a manufacturer shall only
permit the
such |
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| manufacturer to sell beer at retail on the premises actually
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HB5011 |
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LRB093 19000 LRD 44735 b |
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| occupied by the
such manufacturer. For the purpose of further |
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| describing the type of business conducted at a retail licensed |
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| premises, a retailer's licensee may be designated by the State |
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| Commission as either an on premise consumption retailer or an |
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| off premise sale retailer.
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| After January 1, 1995 there shall be 2 classes of licenses |
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| issued under a
retailers license.
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| (1) A "retailers on premise consumption license" shall |
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| allow the licensee
to sell and offer for sale at retail, |
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| only on the premises specified in the
license, alcoholic |
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| liquor for use or consumption on the premises or on and off
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| the premises, but not for resale in any form.
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| (2) An "off premise sale license" shall allow the |
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| licensee to sell, or
offer for sale at retail, alcoholic |
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| liquor intended only for off premise
consumption and not |
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| for resale in any form.
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| Notwithstanding any other provision of this subsection |
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| (d), a retail
licensee may sell alcoholic liquors to a special |
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| event retailer licensee for
resale to the extent permitted |
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| under subsection (e).
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| (e) A special event retailer's license (not-for-profit) |
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| shall permit the
licensee to purchase alcoholic liquors from an |
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| Illinois licensed distributor
(unless the licensee purchases |
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| less than $500 of alcoholic liquors for the
special event, in |
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| which case the licensee may purchase the alcoholic liquors
from |
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| a licensed retailer) and shall allow the licensee to sell and |
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| offer for
sale, at retail, alcoholic liquors for use or |
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| consumption, but not for resale
in any form and only at the |
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| location and on the specific dates designated for
the special |
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| event in the license. An applicant for a special event retailer
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| license must
(i) furnish with the application: (A) a resale |
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| number issued under Section
2c of the Retailers' Occupation Tax |
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| Act or evidence that the applicant is
registered under Section |
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| 2a of the Retailers' Occupation Tax Act, (B) a
current, valid |
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| exemption identification
number issued under Section 1g of the |
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| Retailers' Occupation Tax Act, and a
certification to the |
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HB5011 |
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LRB093 19000 LRD 44735 b |
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| Commission that the purchase of alcoholic liquors will be
a |
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| tax-exempt purchase, or (C) a statement that the applicant is |
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| not registered
under Section 2a of the Retailers' Occupation |
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| Tax Act, does not hold a resale
number under Section 2c of the |
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| Retailers' Occupation Tax Act, and does not
hold an exemption |
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| number under Section 1g of the Retailers' Occupation Tax
Act, |
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| in which event the Commission shall set forth on the special |
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| event
retailer's license a statement to that effect; (ii) |
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| submit with the application proof satisfactory to
the State |
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| Commission that the applicant will provide dram shop liability
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| insurance in the maximum limits; and (iii) show proof |
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| satisfactory to the
State Commission that the applicant has |
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| obtained local authority
approval.
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| (f) A railroad license shall permit the licensee to import |
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| alcoholic
liquors into this State from any point in the United |
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| States outside this
State and to store such alcoholic liquors |
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| in this State; to make wholesale
purchases of alcoholic liquors |
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| directly from manufacturers, foreign
importers, distributors |
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| and importing distributors from within or outside
this State; |
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| and to store such alcoholic liquors in this State; provided
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| that the above powers may be exercised only in connection with |
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| the
importation, purchase or storage of alcoholic liquors to be |
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| sold or
dispensed on a club, buffet, lounge or dining car |
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| operated on an electric,
gas or steam railway in this State; |
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| and provided further, that railroad
licensees exercising the |
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| above powers shall be subject to all provisions of
Article VIII |
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| of this Act as applied to importing distributors. A railroad
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| license shall also permit the licensee to sell or dispense |
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| alcoholic
liquors on any club, buffet, lounge or dining car |
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| operated on an electric,
gas or steam railway regularly |
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| operated by a common carrier in this State,
but shall not |
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| permit the sale for resale of any alcoholic liquors to any
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| licensee within this State. A license shall be obtained for |
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| each car in which
such sales are made.
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| (g) A boat license shall allow the sale of alcoholic liquor |
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| in
individual drinks, on any passenger boat regularly operated |
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HB5011 |
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LRB093 19000 LRD 44735 b |
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| as a common
carrier on navigable waters in this State or on any |
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| riverboat operated
under
the Riverboat Gambling Act, which boat |
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| or riverboat maintains a public
dining room or restaurant |
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| thereon.
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| (h) A non-beverage user's license shall allow the licensee |
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| to
purchase alcoholic liquor from a licensed manufacturer or |
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| importing
distributor, without the imposition of any tax upon |
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| the business of such
licensed manufacturer or importing |
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| distributor as to such alcoholic
liquor to be used by such |
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| licensee solely for the non-beverage purposes
set forth in |
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| subsection (a) of Section 8-1 of this Act, and
such licenses |
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| shall be divided and classified and shall permit the
purchase, |
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| possession and use of limited and stated quantities of
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| alcoholic liquor as follows:
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15 | | Class 1, not to exceed ......................... |
500 gallons |
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16 | | Class 2, not to exceed ......................... |
1,000 gallons |
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17 | | Class 3, not to exceed ......................... |
5,000 gallons |
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18 | | Class 4, not to exceed ......................... |
10,000 gallons |
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19 | | Class 5, not to exceed ......................... |
50,000 gallons |
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| (i) A wine-maker's premises license shall allow a
licensee |
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| that concurrently holds a first-class wine-maker's license to |
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| sell
and offer for sale at retail in the premises specified in |
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| such license
not more than 50,000 gallons of the first-class |
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| wine-maker's wine that is
made at the first-class wine-maker's |
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| licensed premises per year for use or
consumption, but not for |
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| resale in any form. A wine-maker's premises
license shall allow |
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| a licensee who concurrently holds a second-class
wine-maker's |
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| license to sell and offer for sale at retail in the premises
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| specified in such license up to 100,000 gallons of the
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| second-class wine-maker's wine that is made at the second-class |
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| wine-maker's
licensed premises per year
for use or consumption |
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| but not for resale in any form. Upon approval from the
State |
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| Commission, a wine-maker's premises license
shall allow the |
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| licensee to sell and offer for sale at (i) the wine-maker's
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| licensed premises and (ii) at up to 2 additional locations for |
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| use and
consumption and not for resale. Each location shall |
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HB5011 |
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LRB093 19000 LRD 44735 b |
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| require additional
licensing per location as specified in |
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| Section 5-3 of this Act.
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| (j) An airplane license shall permit the licensee to import
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| alcoholic liquors into this State from any point in the United |
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| States
outside this State and to store such alcoholic liquors |
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| in this State; to
make wholesale purchases of alcoholic liquors |
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| directly from
manufacturers, foreign importers, distributors |
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| and importing
distributors from within or outside this State; |
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| and to store such
alcoholic liquors in this State; provided |
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| that the above powers may be
exercised only in connection with |
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| the importation, purchase or storage
of alcoholic liquors to be |
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| sold or dispensed on an airplane; and
provided further, that |
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| airplane licensees exercising the above powers
shall be subject |
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| to all provisions of Article VIII of this Act as
applied to |
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| importing distributors. An airplane licensee shall also
permit |
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| the sale or dispensing of alcoholic liquors on any passenger
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| airplane regularly operated by a common carrier in this State, |
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| but shall
not permit the sale for resale of any alcoholic |
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| liquors to any licensee
within this State. A single airplane |
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| license shall be required of an
airline company if liquor |
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| service is provided on board aircraft in this
State. The annual |
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| fee for such license shall be as determined in
Section 5-3.
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| (k) A foreign importer's license shall permit such licensee |
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| to purchase
alcoholic liquor from Illinois licensed |
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| non-resident dealers only, and to
import alcoholic liquor other |
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| than in bulk from any point outside the
United States and to |
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| sell such alcoholic liquor to Illinois licensed
importing |
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| distributors and to no one else in Illinois;
provided that the |
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| foreign importer registers with the State Commission
every
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| brand of
alcoholic liquor that it proposes to sell to Illinois |
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| licensees during the
license period and
provided further that |
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| the foreign importer complies with all of the provisions
of |
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| Section
6-9 of this Act with respect to registration of such |
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| Illinois licensees as may
be granted the
right to sell such |
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| brands at wholesale.
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| (l) (i) A broker's license shall be required of all persons
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HB5011 |
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LRB093 19000 LRD 44735 b |
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| who solicit
orders for, offer to sell or offer to supply |
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| alcoholic liquor to
retailers in the State of Illinois, or who |
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| offer to retailers to ship or
cause to be shipped or to make |
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| contact with distillers, rectifiers,
brewers or manufacturers |
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| or any other party within or without the State
of Illinois in |
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| order that alcoholic liquors be shipped to a distributor,
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| importing distributor or foreign importer, whether such |
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| solicitation or
offer is consummated within or without the |
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| State of Illinois.
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| No holder of a retailer's license issued by the Illinois |
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| Liquor
Control Commission shall purchase or receive any |
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| alcoholic liquor, the
order for which was solicited or offered |
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| for sale to such retailer by a
broker unless the broker is the |
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| holder of a valid broker's license.
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| The broker shall, upon the acceptance by a retailer of the |
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| broker's
solicitation of an order or offer to sell or supply or |
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| deliver or have
delivered alcoholic liquors, promptly forward |
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| to the Illinois Liquor
Control Commission a notification of |
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| said transaction in such form as
the Commission may by |
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| regulations prescribe.
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| (ii) A broker's license shall be required of
a person |
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| within this State, other than a retail licensee,
who, for a fee |
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| or commission, promotes, solicits, or accepts orders for
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| alcoholic liquor, for use or consumption and not for
resale, to |
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| be shipped from this State and delivered to residents outside |
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| of
this State by an express company, common carrier, or |
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| contract carrier.
This Section does not apply to any person who |
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| promotes, solicits, or accepts
orders for wine as specifically |
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| authorized in Section 6-29 of this Act.
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| A broker's license under this subsection (1) shall not |
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| entitle the holder to
buy or sell any
alcoholic liquors for his |
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| own account or to take or deliver title to
such alcoholic |
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| liquors.
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| This subsection (1) shall not apply to distributors, |
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| employees of
distributors, or employees of a manufacturer who |
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| has registered the
trademark, brand or name of the alcoholic |
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HB5011 |
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LRB093 19000 LRD 44735 b |
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| liquor pursuant to Section 6-9
of this Act, and who regularly |
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| sells such alcoholic liquor
in the State of Illinois only to |
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| its registrants thereunder.
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| Any agent, representative, or person subject to |
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| registration pursuant to
subsection (a-1) of this Section shall |
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| not be eligible to receive a broker's
license.
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| (m) A non-resident dealer's license shall permit such |
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| licensee to ship
into and warehouse alcoholic liquor into this |
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| State from any point
outside of this State, and to sell such |
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| alcoholic liquor to Illinois licensed
foreign importers and |
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| importing distributors and to no one else in this State;
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| provided that said non-resident dealer shall register with the |
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| Illinois Liquor
Control Commission each and every brand of |
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| alcoholic liquor which it proposes
to sell to Illinois |
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| licensees during the license period; and further provided
that |
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| it shall comply with all of the provisions of Section 6-9 |
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| hereof with
respect to registration of such Illinois licensees |
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| as may be granted the right
to sell such brands at wholesale.
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| (n) A brew pub license shall allow the licensee to |
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| manufacture beer only
on the premises specified in the license, |
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| to make sales of the
beer manufactured on the premises to |
22 |
| importing distributors, distributors,
and to non-licensees for |
23 |
| use and consumption, to store the beer upon
the premises, and |
24 |
| to sell and offer for sale at retail from the licensed
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| premises, provided that a brew pub licensee shall not sell for |
26 |
| off-premises
consumption more than 50,000 gallons per year.
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| (o) A caterer retailer license shall allow the holder
to |
28 |
| serve alcoholic liquors as an incidental part of a food service |
29 |
| that serves
prepared meals which excludes the serving of snacks |
30 |
| as
the primary meal, either on or off-site whether licensed or |
31 |
| unlicensed.
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| (p) An auction liquor license shall allow the licensee to |
33 |
| sell and offer
for sale at auction wine and spirits for use or |
34 |
| consumption, or for resale by
an Illinois liquor licensee in |
35 |
| accordance with provisions of this Act. An
auction liquor |
36 |
| license will be issued to a person and it will permit the
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HB5011 |
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LRB093 19000 LRD 44735 b |
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| auction liquor licensee to hold the auction anywhere in the |
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| State. An auction
liquor license must be obtained for each |
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| auction at least 14 days in advance of
the auction date.
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| (q) A special use permit license shall allow an Illinois |
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| licensed
retailer to transfer a portion of its alcoholic liquor |
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| inventory from its
retail licensed premises to the premises |
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| specified in the license hereby
created, and to sell or offer |
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| for sale at retail, only in the premises
specified in the |
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| license hereby created, the transferred alcoholic liquor for
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| use or consumption, but not for resale in any form. A special |
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| use permit
license may be granted for the following time |
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| periods: one day or less; 2 or
more days to a maximum of 15 days |
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| per location in any 12 month period. An
applicant for the |
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| special use permit license must also submit with the
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| application proof satisfactory to the State Commission that the |
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| applicant will
provide dram shop liability insurance to the |
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| maximum limits and have local
authority approval.
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| (Source: P.A. 91-357, eff. 7-29-99; 92-105, eff. 1-1-02; |
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| 92-378, eff.
8-16-01; 92-651, eff. 7-11-02; 92-672, eff. |
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| 7-16-02.)
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.
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