SB1782 EngrossedLRB097 06715 ASK 46802 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Section 6-4 as follows:
 
6    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
7    Sec. 6-4. (a) No person licensed by any licensing authority
8as a distiller, or a wine manufacturer, or any subsidiary or
9affiliate thereof, or any officer, associate, member, partner,
10representative, employee, agent or shareholder owning more
11than 5% of the outstanding shares of such person shall be
12issued an importing distributor's or distributor's license,
13nor shall any person licensed by any licensing authority as an
14importing distributor, distributor or retailer, or any
15subsidiary or affiliate thereof, or any officer or associate,
16member, partner, representative, employee, agent or
17shareholder owning more than 5% of the outstanding shares of
18such person be issued a distiller's license or a wine
19manufacturer's license; and no person or persons licensed as a
20distiller by any licensing authority shall have any interest,
21directly or indirectly, with such distributor or importing
22distributor.
23    However, an importing distributor or distributor, which on

 

 

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1January 1, 1985 is owned by a brewer, or any subsidiary or
2affiliate thereof or any officer, associate, member, partner,
3representative, employee, agent or shareholder owning more
4than 5% of the outstanding shares of the importing distributor
5or distributor referred to in this paragraph, may own or
6acquire an ownership interest of more than 5% of the
7outstanding shares of a wine manufacturer and be issued a wine
8manufacturer's license by any licensing authority.
9    (b) The foregoing provisions shall not apply to any person
10licensed by any licensing authority as a distiller or wine
11manufacturer, or to any subsidiary or affiliate of any
12distiller or wine manufacturer who shall have been heretofore
13licensed by the State Commission as either an importing
14distributor or distributor during the annual licensing period
15expiring June 30, 1947, and shall actually have made sales
16regularly to retailers.
17    (c) Provided, however, that in such instances where a
18distributor's or importing distributor's license has been
19issued to any distiller or wine manufacturer or to any
20subsidiary or affiliate of any distiller or wine manufacturer
21who has, during the licensing period ending June 30, 1947, sold
22or distributed as such licensed distributor or importing
23distributor alcoholic liquors and wines to retailers, such
24distiller or wine manufacturer or any subsidiary or affiliate
25of any distiller or wine manufacturer holding such
26distributor's or importing distributor's license may continue

 

 

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1to sell or distribute to retailers such alcoholic liquors and
2wines which are manufactured, distilled, processed or marketed
3by distillers and wine manufacturers whose products it sold or
4distributed to retailers during the whole or any part of its
5licensing periods; and such additional brands and additional
6products may be added to the line of such distributor or
7importing distributor, provided, that such brands and such
8products were not sold or distributed by any distributor or
9importing distributor licensed by the State Commission during
10the licensing period ending June 30, 1947, but can not sell or
11distribute to retailers any other alcoholic liquors or wines.
12    (d) It shall be unlawful for any distiller licensed
13anywhere to have any stock ownership or interest in any
14distributor's or importing distributor's license wherein any
15other person has an interest therein who is not a distiller and
16does not own more than 5% of any stock in any distillery.
17Nothing herein contained shall apply to such distillers or
18their subsidiaries or affiliates, who had a distributor's or
19importing distributor's license during the licensing period
20ending June 30, 1947, which license was owned in whole by such
21distiller, or subsidiaries or affiliates of such distiller.
22    (e) Any person having been licensed as a manufacturer shall
23be permitted to receive one retailer's license for the premises
24in which he or she actually conducts such business, permitting
25only the retail sale of beer manufactured at such premises and
26only on such premises, but no such person shall be entitled to

 

 

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1more than one retailer's license in any event, and, other than
2a manufacturer of beer as stated above, no manufacturer or
3distributor or importing distributor, excluding airplane
4licensees exercising powers provided in paragraph (i) of
5Section 5-1 of this Act, or any subsidiary or affiliate
6thereof, or any officer, associate, member, partner,
7representative, employee or agent, or shareholder shall be
8issued a retailer's license, nor shall any person having a
9retailer's license, excluding airplane licensees exercising
10powers provided in paragraph (i) of Section 5-1 of this Act, or
11any subsidiary or affiliate thereof, or any officer, associate,
12member, partner, representative or agent, or shareholder be
13issued a manufacturer's license or importing distributor's
14license.
15    A person licensed as a craft distiller not affiliated with
16any other person manufacturing spirits may be permitted to
17receive one retailer's license for the premises in which he or
18she actually conducts business permitting only the retail sale
19of spirits manufactured at such premises. Such sales shall be
20limited to on-premises, in-person sales only, for lawful
21consumption on or off premises. A craft distiller licensed for
22retail sale shall secure liquor liability insurance coverage in
23an amount at least equal to the maximum liability amounts set
24forth in subsection (a) of Section 6-21 of this Act.
25    (f) However, the foregoing prohibitions against any person
26licensed as a distiller or wine manufacturer being issued a

 

 

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1retailer's license shall not apply:
2        (i) to any hotel, motel or restaurant whose principal
3    business is not the sale of alcoholic liquors if said
4    retailer's sales of any alcoholic liquors manufactured,
5    sold, distributed or controlled, directly or indirectly,
6    by any affiliate, subsidiary, officer, associate, member,
7    partner, representative, employee, agent or shareholder
8    owning more than 5% of the outstanding shares of such
9    person does not exceed 10% of the total alcoholic liquor
10    sales of said retail licensee; and
11        (ii) where the Commission determines, having
12    considered the public welfare, the economic impact upon the
13    State and the entirety of the facts and circumstances
14    involved, that the purpose and intent of this Section would
15    not be violated by granting an exemption.
16    (g) Notwithstanding any of the foregoing prohibitions, a
17limited wine manufacturer may sell at retail at its
18manufacturing site for on or off premises consumption and may
19sell to distributors. A limited wine manufacturer licensee
20shall secure liquor liability insurance coverage in an amount
21at least equal to the maximum liability amounts set forth in
22subsection (a) of Section 6-21 of this Act.
23(Source: P.A. 95-634, eff. 6-1-08; 96-1367, eff. 7-28-10.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.