100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3662

 

Introduced , by Rep. Tim Butler

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/1-3.38
235 ILCS 5/3-12
235 ILCS 5/5-1  from Ch. 43, par. 115
235 ILCS 5/6-4  from Ch. 43, par. 121

    Amends the Liquor Control Act of 1934. Authorizes a Class 1 brewer to manufacture cider and mead. Makes conforming changes.


LRB100 10925 RPS 21162 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3662LRB100 10925 RPS 21162 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 Sections 1-3.38, 3-12, 5-1, and 6-4 as follows:
 
6    (235 ILCS 5/1-3.38)
7    Sec. 1-3.38. Class 1 brewer. "Class 1 brewer" means a
8person who is a holder of a brewer license or non-resident
9dealer license who manufactures up to 930,000 gallons of beer,
10cider, mead, or any combination thereof per year and who may
11make sales and deliveries to importing distributors and
12distributors and to retail licensees in accordance with the
13conditions set forth in paragraph (18) of subsection (a) of
14Section 3-12 of this Act.
15(Source: P.A. 98-401, eff. 8-16-13; 99-448, eff. 8-24-15.)
 
16    (235 ILCS 5/3-12)
17    Sec. 3-12. Powers and duties of State Commission.
18    (a) The State commission shall have the following powers,
19functions, and duties:
20        (1) To receive applications and to issue licenses to
21    manufacturers, foreign importers, importing distributors,
22    distributors, non-resident dealers, on premise consumption

 

 

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1    retailers, off premise sale retailers, special event
2    retailer licensees, special use permit licenses, auction
3    liquor licenses, brew pubs, caterer retailers,
4    non-beverage users, railroads, including owners and
5    lessees of sleeping, dining and cafe cars, airplanes,
6    boats, brokers, and wine maker's premises licensees in
7    accordance with the provisions of this Act, and to suspend
8    or revoke such licenses upon the State commission's
9    determination, upon notice after hearing, that a licensee
10    has violated any provision of this Act or any rule or
11    regulation issued pursuant thereto and in effect for 30
12    days prior to such violation. Except in the case of an
13    action taken pursuant to a violation of Section 6-3, 6-5,
14    or 6-9, any action by the State Commission to suspend or
15    revoke a licensee's license may be limited to the license
16    for the specific premises where the violation occurred.
17        In lieu of suspending or revoking a license, the
18    commission may impose a fine, upon the State commission's
19    determination and notice after hearing, that a licensee has
20    violated any provision of this Act or any rule or
21    regulation issued pursuant thereto and in effect for 30
22    days prior to such violation.
23        For the purpose of this paragraph (1), when determining
24    multiple violations for the sale of alcohol to a person
25    under the age of 21, a second or subsequent violation for
26    the sale of alcohol to a person under the age of 21 shall

 

 

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1    only be considered if it was committed within 5 years after
2    the date when a prior violation for the sale of alcohol to
3    a person under the age of 21 was committed.
4        The fine imposed under this paragraph may not exceed
5    $500 for each violation. Each day that the activity, which
6    gave rise to the original fine, continues is a separate
7    violation. The maximum fine that may be levied against any
8    licensee, for the period of the license, shall not exceed
9    $20,000. The maximum penalty that may be imposed on a
10    licensee for selling a bottle of alcoholic liquor with a
11    foreign object in it or serving from a bottle of alcoholic
12    liquor with a foreign object in it shall be the destruction
13    of that bottle of alcoholic liquor for the first 10 bottles
14    so sold or served from by the licensee. For the eleventh
15    bottle of alcoholic liquor and for each third bottle
16    thereafter sold or served from by the licensee with a
17    foreign object in it, the maximum penalty that may be
18    imposed on the licensee is the destruction of the bottle of
19    alcoholic liquor and a fine of up to $50.
20        (2) To adopt such rules and regulations consistent with
21    the provisions of this Act which shall be necessary to
22    carry on its functions and duties to the end that the
23    health, safety and welfare of the People of the State of
24    Illinois shall be protected and temperance in the
25    consumption of alcoholic liquors shall be fostered and
26    promoted and to distribute copies of such rules and

 

 

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1    regulations to all licensees affected thereby.
2        (3) To call upon other administrative departments of
3    the State, county and municipal governments, county and
4    city police departments and upon prosecuting officers for
5    such information and assistance as it deems necessary in
6    the performance of its duties.
7        (4) To recommend to local commissioners rules and
8    regulations, not inconsistent with the law, for the
9    distribution and sale of alcoholic liquors throughout the
10    State.
11        (5) To inspect, or cause to be inspected, any premises
12    in this State where alcoholic liquors are manufactured,
13    distributed, warehoused, or sold. Nothing in this Act
14    authorizes an agent of the Commission to inspect private
15    areas within the premises without reasonable suspicion or a
16    warrant during an inspection. "Private areas" include, but
17    are not limited to, safes, personal property, and closed
18    desks.
19        (5.1) Upon receipt of a complaint or upon having
20    knowledge that any person is engaged in business as a
21    manufacturer, importing distributor, distributor, or
22    retailer without a license or valid license, to notify the
23    local liquor authority, file a complaint with the State's
24    Attorney's Office of the county where the incident
25    occurred, or initiate an investigation with the
26    appropriate law enforcement officials.

 

 

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1        (5.2) To issue a cease and desist notice to persons
2    shipping alcoholic liquor into this State from a point
3    outside of this State if the shipment is in violation of
4    this Act.
5        (5.3) To receive complaints from licensees, local
6    officials, law enforcement agencies, organizations, and
7    persons stating that any licensee has been or is violating
8    any provision of this Act or the rules and regulations
9    issued pursuant to this Act. Such complaints shall be in
10    writing, signed and sworn to by the person making the
11    complaint, and shall state with specificity the facts in
12    relation to the alleged violation. If the Commission has
13    reasonable grounds to believe that the complaint
14    substantially alleges a violation of this Act or rules and
15    regulations adopted pursuant to this Act, it shall conduct
16    an investigation. If, after conducting an investigation,
17    the Commission is satisfied that the alleged violation did
18    occur, it shall proceed with disciplinary action against
19    the licensee as provided in this Act.
20        (6) To hear and determine appeals from orders of a
21    local commission in accordance with the provisions of this
22    Act, as hereinafter set forth. Hearings under this
23    subsection shall be held in Springfield or Chicago, at
24    whichever location is the more convenient for the majority
25    of persons who are parties to the hearing.
26        (7) The commission shall establish uniform systems of

 

 

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1    accounts to be kept by all retail licensees having more
2    than 4 employees, and for this purpose the commission may
3    classify all retail licensees having more than 4 employees
4    and establish a uniform system of accounts for each class
5    and prescribe the manner in which such accounts shall be
6    kept. The commission may also prescribe the forms of
7    accounts to be kept by all retail licensees having more
8    than 4 employees, including but not limited to accounts of
9    earnings and expenses and any distribution, payment, or
10    other distribution of earnings or assets, and any other
11    forms, records and memoranda which in the judgment of the
12    commission may be necessary or appropriate to carry out any
13    of the provisions of this Act, including but not limited to
14    such forms, records and memoranda as will readily and
15    accurately disclose at all times the beneficial ownership
16    of such retail licensed business. The accounts, forms,
17    records and memoranda shall be available at all reasonable
18    times for inspection by authorized representatives of the
19    State commission or by any local liquor control
20    commissioner or his or her authorized representative. The
21    commission, may, from time to time, alter, amend or repeal,
22    in whole or in part, any uniform system of accounts, or the
23    form and manner of keeping accounts.
24        (8) In the conduct of any hearing authorized to be held
25    by the commission, to appoint, at the commission's
26    discretion, hearing officers to conduct hearings involving

 

 

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1    complex issues or issues that will require a protracted
2    period of time to resolve, to examine, or cause to be
3    examined, under oath, any licensee, and to examine or cause
4    to be examined the books and records of such licensee; to
5    hear testimony and take proof material for its information
6    in the discharge of its duties hereunder; to administer or
7    cause to be administered oaths; for any such purpose to
8    issue subpoena or subpoenas to require the attendance of
9    witnesses and the production of books, which shall be
10    effective in any part of this State, and to adopt rules to
11    implement its powers under this paragraph (8).
12        Any Circuit Court may by order duly entered, require
13    the attendance of witnesses and the production of relevant
14    books subpoenaed by the State commission and the court may
15    compel obedience to its order by proceedings for contempt.
16        (9) To investigate the administration of laws in
17    relation to alcoholic liquors in this and other states and
18    any foreign countries, and to recommend from time to time
19    to the Governor and through him or her to the legislature
20    of this State, such amendments to this Act, if any, as it
21    may think desirable and as will serve to further the
22    general broad purposes contained in Section 1-2 hereof.
23        (10) To adopt such rules and regulations consistent
24    with the provisions of this Act which shall be necessary
25    for the control, sale or disposition of alcoholic liquor
26    damaged as a result of an accident, wreck, flood, fire or

 

 

HB3662- 8 -LRB100 10925 RPS 21162 b

1    other similar occurrence.
2        (11) To develop industry educational programs related
3    to responsible serving and selling, particularly in the
4    areas of overserving consumers and illegal underage
5    purchasing and consumption of alcoholic beverages.
6        (11.1) To license persons providing education and
7    training to alcohol beverage sellers and servers for
8    mandatory and non-mandatory training under the Beverage
9    Alcohol Sellers and Servers Education and Training
10    (BASSET) programs and to develop and administer a public
11    awareness program in Illinois to reduce or eliminate the
12    illegal purchase and consumption of alcoholic beverage
13    products by persons under the age of 21. Application for a
14    license shall be made on forms provided by the State
15    Commission.
16        (12) To develop and maintain a repository of license
17    and regulatory information.
18        (13) On or before January 15, 1994, the Commission
19    shall issue a written report to the Governor and General
20    Assembly that is to be based on a comprehensive study of
21    the impact on and implications for the State of Illinois of
22    Section 1926 of the federal Federal ADAMHA Reorganization
23    Act of 1992 (Public Law 102-321). This study shall address
24    the extent to which Illinois currently complies with the
25    provisions of P.L. 102-321 and the rules promulgated
26    pursuant thereto.

 

 

HB3662- 9 -LRB100 10925 RPS 21162 b

1        As part of its report, the Commission shall provide the
2    following essential information:
3            (i) the number of retail distributors of tobacco
4        products, by type and geographic area, in the State;
5            (ii) the number of reported citations and
6        successful convictions, categorized by type and
7        location of retail distributor, for violation of the
8        Prevention of Tobacco Use by Minors and Sale and
9        Distribution of Tobacco Products Act and the Smokeless
10        Tobacco Limitation Act;
11            (iii) the extent and nature of organized
12        educational and governmental activities that are
13        intended to promote, encourage or otherwise secure
14        compliance with any Illinois laws that prohibit the
15        sale or distribution of tobacco products to minors; and
16            (iv) the level of access and availability of
17        tobacco products to individuals under the age of 18.
18        To obtain the data necessary to comply with the
19    provisions of P.L. 102-321 and the requirements of this
20    report, the Commission shall conduct random, unannounced
21    inspections of a geographically and scientifically
22    representative sample of the State's retail tobacco
23    distributors.
24        The Commission shall consult with the Department of
25    Public Health, the Department of Human Services, the
26    Illinois State Police and any other executive branch

 

 

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1    agency, and private organizations that may have
2    information relevant to this report.
3        The Commission may contract with the Food and Drug
4    Administration of the U.S. Department of Health and Human
5    Services to conduct unannounced investigations of Illinois
6    tobacco vendors to determine compliance with federal laws
7    relating to the illegal sale of cigarettes and smokeless
8    tobacco products to persons under the age of 18.
9        (14) On or before April 30, 2008 and every 2 years
10    thereafter, the Commission shall present a written report
11    to the Governor and the General Assembly that shall be
12    based on a study of the impact of Public Act 95-634 this
13    amendatory Act of the 95th General Assembly on the business
14    of soliciting, selling, and shipping wine from inside and
15    outside of this State directly to residents of this State.
16    As part of its report, the Commission shall provide all of
17    the following information:
18            (A) The amount of State excise and sales tax
19        revenues generated.
20            (B) The amount of licensing fees received.
21            (C) The number of cases of wine shipped from inside
22        and outside of this State directly to residents of this
23        State.
24            (D) The number of alcohol compliance operations
25        conducted.
26            (E) The number of winery shipper's licenses

 

 

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

 

 

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

 

 

HB3662- 13 -LRB100 10925 RPS 21162 b

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

 

 

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

 

 

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

 

 

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1        license held by the licensee, including any ownership
2        interest it held in the licensed brew pub.
3            (D) A self-distribution exemption holder shall
4        annually certify to the State Commission its
5        manufacture of beer during the previous 12 months and
6        its anticipated manufacture and sales of beer for the
7        next 12 months. The State Commission may fine, suspend,
8        or revoke a self-distribution exemption after a
9        hearing if it finds that the exemption holder has made
10        a material misrepresentation in its application,
11        violated a revenue or alcoholic beverage law of
12        Illinois, exceeded the manufacture of 930,000 gallons
13        of beer, cider, mead, or any combination thereof in any
14        calendar year or became part of an affiliated group
15        manufacturing more than 930,000 gallons of beer,
16        cider, mead, or any combination thereof or any other
17        alcoholic beverage.
18            (E) The State Commission shall issue rules and
19        regulations governing self-distribution exemptions
20        consistent with this Act.
21            (F) Nothing in this paragraph (18) shall prohibit a
22        self-distribution exemption holder from entering into
23        or simultaneously having a distribution agreement with
24        a licensed Illinois importing distributor or a
25        distributor. If a self-distribution exemption holder
26        enters into a distribution agreement and has assigned

 

 

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1        distribution rights to an importing distributor or
2        distributor, then the self-distribution exemption
3        holder's distribution rights in the assigned
4        territories shall cease in a reasonable time not to
5        exceed 60 days.
6            (G) It is the intent of this paragraph (18) to
7        promote and continue orderly markets. The General
8        Assembly finds that in order to preserve Illinois'
9        regulatory distribution system, it is necessary to
10        create an exception for smaller manufacturers in order
11        to afford and allow such smaller manufacturers of beer
12        access to the marketplace in order to develop a
13        customer base without impairing the integrity of the
14        3-tier system.
15    (b) On or before April 30, 1999, the Commission shall
16present a written report to the Governor and the General
17Assembly that shall be based on a study of the impact of Public
18Act 90-739 this amendatory Act of 1998 on the business of
19soliciting, selling, and shipping alcoholic liquor from
20outside of this State directly to residents of this State.
21    As part of its report, the Commission shall provide the
22following information:
23        (i) the amount of State excise and sales tax revenues
24    generated as a result of Public Act 90-739 this amendatory
25    Act of 1998;
26        (ii) the amount of licensing fees received as a result

 

 

HB3662- 18 -LRB100 10925 RPS 21162 b

1    of Public Act 90-739 this amendatory Act of 1998;
2        (iii) the number of reported violations, the number of
3    cease and desist notices issued by the Commission, the
4    number of notices of violations issued to the Department of
5    Revenue, and the number of notices and complaints of
6    violations to law enforcement officials.
7(Source: P.A. 98-401, eff. 8-16-13; 98-939, eff. 7-1-15;
898-941, eff. 1-1-15; 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
9revised 9-13-16.)
 
10    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
11    Sec. 5-1. Licenses issued by the Illinois Liquor Control
12Commission shall be of the following classes:
13    (a) Manufacturer's license - Class 1. Distiller, Class 2.
14Rectifier, Class 3. Brewer, Class 4. First Class Wine
15Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
16First Class Winemaker, Class 7. Second Class Winemaker, Class
178. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1810. Class 1 Brewer, Class 11. Class 2 Brewer,
19    (b) Distributor's license,
20    (c) Importing Distributor's license,
21    (d) Retailer's license,
22    (e) Special Event Retailer's license (not-for-profit),
23    (f) Railroad license,
24    (g) Boat license,
25    (h) Non-Beverage User's license,

 

 

HB3662- 19 -LRB100 10925 RPS 21162 b

1    (i) Wine-maker's premises license,
2    (j) Airplane license,
3    (k) Foreign importer's license,
4    (l) Broker's license,
5    (m) Non-resident dealer's license,
6    (n) Brew Pub license,
7    (o) Auction liquor license,
8    (p) Caterer retailer license,
9    (q) Special use permit license,
10    (r) Winery shipper's license,
11    (s) Craft distiller tasting permit.
12    No person, firm, partnership, corporation, or other legal
13business entity that is engaged in the manufacturing of wine
14may concurrently obtain and hold a wine-maker's license and a
15wine manufacturer's license.
16    (a) A manufacturer's license shall allow the manufacture,
17importation in bulk, storage, distribution and sale of
18alcoholic liquor to persons without the State, as may be
19permitted by law and to licensees in this State as follows:
20    Class 1. A Distiller may make sales and deliveries of
21alcoholic liquor to distillers, rectifiers, importing
22distributors, distributors and non-beverage users and to no
23other licensees.
24    Class 2. A Rectifier, who is not a distiller, as defined
25herein, may make sales and deliveries of alcoholic liquor to
26rectifiers, importing distributors, distributors, retailers

 

 

HB3662- 20 -LRB100 10925 RPS 21162 b

1and non-beverage users and to no other licensees.
2    Class 3. A Brewer may make sales and deliveries of beer to
3importing distributors and distributors and may make sales as
4authorized under subsection (e) of Section 6-4 of this Act.
5    Class 4. A first class wine-manufacturer may make sales and
6deliveries of up to 50,000 gallons of wine to manufacturers,
7importing distributors and distributors, and to no other
8licensees.
9    Class 5. A second class Wine manufacturer may make sales
10and deliveries of more than 50,000 gallons of wine to
11manufacturers, importing distributors and distributors and to
12no other licensees.
13    Class 6. A first-class wine-maker's license shall allow the
14manufacture of up to 50,000 gallons of wine per year, and the
15storage and sale of such wine to distributors in the State and
16to persons without the State, as may be permitted by law. A
17person who, prior to June 1, 2008 (the effective date of Public
18Act 95-634), is a holder of a first-class wine-maker's license
19and annually produces more than 25,000 gallons of its own wine
20and who distributes its wine to licensed retailers shall cease
21this practice on or before July 1, 2008 in compliance with
22Public Act 95-634.
23    Class 7. A second-class wine-maker's license shall allow
24the manufacture of between 50,000 and 150,000 gallons of wine
25per year, and the storage and sale of such wine to distributors
26in this State and to persons without the State, as may be

 

 

HB3662- 21 -LRB100 10925 RPS 21162 b

1permitted by law. A person who, prior to June 1, 2008 (the
2effective date of Public Act 95-634), is a holder of a
3second-class wine-maker's license and annually produces more
4than 25,000 gallons of its own wine and who distributes its
5wine to licensed retailers shall cease this practice on or
6before July 1, 2008 in compliance with Public Act 95-634.
7    Class 8. A limited wine-manufacturer may make sales and
8deliveries not to exceed 40,000 gallons of wine per year to
9distributors, and to non-licensees in accordance with the
10provisions of this Act.
11    Class 9. A craft distiller license shall allow the
12manufacture of up to 100,000 March 1, 2013 (Public Act 97-1166)
13gallons of spirits by distillation per year and the storage of
14such spirits. If a craft distiller licensee, including a craft
15distiller licensee who holds more than one craft distiller
16license, is not affiliated with any other manufacturer of
17spirits, then the craft distiller licensee may sell such
18spirits to distributors in this State and up to 2,500 gallons
19of such spirits to non-licensees to the extent permitted by any
20exemption approved by the Commission pursuant to Section 6-4 of
21this Act. A craft distiller license holder may store such
22spirits at a non-contiguous licensed location, but at no time
23shall a craft distiller license holder directly or indirectly
24produce in the aggregate more than 100,000 gallons of spirits
25per year.
26    A craft distiller licensee may hold more than one craft

 

 

HB3662- 22 -LRB100 10925 RPS 21162 b

1distiller's license. However, a craft distiller that holds more
2than one craft distiller license shall not manufacture, in the
3aggregate, more than 100,000 gallons of spirits by distillation
4per year and shall not sell, in the aggregate, more than 2,500
5gallons of such spirits to non-licensees in accordance with an
6exemption approved by the State Commission pursuant to Section
76-4 of this Act.
8    Any craft distiller licensed under this Act who on July 28,
92010 (the effective date of Public Act 96-1367) was licensed as
10a distiller and manufactured no more spirits than permitted by
11this Section shall not be required to pay the initial licensing
12fee.
13    Class 10. A class 1 brewer license, which may only be
14issued to a licensed brewer or licensed non-resident dealer,
15shall allow the manufacture of up to 930,000 gallons of beer,
16cider, mead, or any combination thereof per year provided that
17the class 1 brewer licensee does not manufacture more than a
18combined 930,000 gallons of beer, cider, or mead per year and
19is not a member of or affiliated with, directly or indirectly,
20a manufacturer that produces more than 930,000 gallons of beer,
21cider, mead, or any combination thereof per year or any other
22alcoholic liquor. A class 1 brewer licensee may make sales and
23deliveries to importing distributors and distributors and to
24retail licensees in accordance with the conditions set forth in
25paragraph (18) of subsection (a) of Section 3-12 of this Act.
26    Class 11. A class 2 brewer license, which may only be

 

 

HB3662- 23 -LRB100 10925 RPS 21162 b

1issued to a licensed brewer or licensed non-resident dealer,
2shall allow the manufacture of up to 3,720,000 gallons of beer
3per year provided that the class 2 brewer licensee does not
4manufacture more than a combined 3,720,000 gallons of beer per
5year and is not a member of or affiliated with, directly or
6indirectly, a manufacturer that produces more than 3,720,000
7gallons of beer per year or any other alcoholic liquor. A class
82 brewer licensee may make sales and deliveries to importing
9distributors and distributors, but shall not make sales or
10deliveries to any other licensee. If the State Commission
11provides prior approval, a class 2 brewer licensee may annually
12transfer up to 3,720,000 gallons of beer manufactured by that
13class 2 brewer licensee to the premises of a licensed class 2
14brewer wholly owned and operated by the same licensee.
15    (a-1) A manufacturer which is licensed in this State to
16make sales or deliveries of alcoholic liquor to licensed
17distributors or importing distributors and which enlists
18agents, representatives, or individuals acting on its behalf
19who contact licensed retailers on a regular and continual basis
20in this State must register those agents, representatives, or
21persons acting on its behalf with the State Commission.
22    Registration of agents, representatives, or persons acting
23on behalf of a manufacturer is fulfilled by submitting a form
24to the Commission. The form shall be developed by the
25Commission and shall include the name and address of the
26applicant, the name and address of the manufacturer he or she

 

 

HB3662- 24 -LRB100 10925 RPS 21162 b

1represents, the territory or areas assigned to sell to or
2discuss pricing terms of alcoholic liquor, and any other
3questions deemed appropriate and necessary. All statements in
4the forms required to be made by law or by rule shall be deemed
5material, and any person who knowingly misstates any material
6fact under oath in an application is guilty of a Class B
7misdemeanor. Fraud, misrepresentation, false statements,
8misleading statements, evasions, or suppression of material
9facts in the securing of a registration are grounds for
10suspension or revocation of the registration. The State
11Commission shall post a list of registered agents on the
12Commission's website.
13    (b) A distributor's license shall allow the wholesale
14purchase and storage of alcoholic liquors and sale of alcoholic
15liquors to licensees in this State and to persons without the
16State, as may be permitted by law. No person licensed as a
17distributor shall be granted a non-resident dealer's license.
18    (c) An importing distributor's license may be issued to and
19held by those only who are duly licensed distributors, upon the
20filing of an application by a duly licensed distributor, with
21the Commission and the Commission shall, without the payment of
22any fee, immediately issue such importing distributor's
23license to the applicant, which shall allow the importation of
24alcoholic liquor by the licensee into this State from any point
25in the United States outside this State, and the purchase of
26alcoholic liquor in barrels, casks or other bulk containers and

 

 

HB3662- 25 -LRB100 10925 RPS 21162 b

1the bottling of such alcoholic liquors before resale thereof,
2but all bottles or containers so filled shall be sealed,
3labeled, stamped and otherwise made to comply with all
4provisions, rules and regulations governing manufacturers in
5the preparation and bottling of alcoholic liquors. The
6importing distributor's license shall permit such licensee to
7purchase alcoholic liquor from Illinois licensed non-resident
8dealers and foreign importers only. No person licensed as an
9importing distributor shall be granted a non-resident dealer's
10license.
11    (d) A retailer's license shall allow the licensee to sell
12and offer for sale at retail, only in the premises specified in
13the license, alcoholic liquor for use or consumption, but not
14for resale in any form. Nothing in Public Act 95-634 shall
15deny, limit, remove, or restrict the ability of a holder of a
16retailer's license to transfer, deliver, or ship alcoholic
17liquor to the purchaser for use or consumption subject to any
18applicable local law or ordinance. Any retail license issued to
19a manufacturer shall only permit the manufacturer to sell beer
20at retail on the premises actually occupied by the
21manufacturer. For the purpose of further describing the type of
22business conducted at a retail licensed premises, a retailer's
23licensee may be designated by the State Commission as (i) an on
24premise consumption retailer, (ii) an off premise sale
25retailer, or (iii) a combined on premise consumption and off
26premise sale retailer.

 

 

HB3662- 26 -LRB100 10925 RPS 21162 b

1    Notwithstanding any other provision of this subsection
2(d), a retail licensee may sell alcoholic liquors to a special
3event retailer licensee for resale to the extent permitted
4under subsection (e).
5    (e) A special event retailer's license (not-for-profit)
6shall permit the licensee to purchase alcoholic liquors from an
7Illinois licensed distributor (unless the licensee purchases
8less than $500 of alcoholic liquors for the special event, in
9which case the licensee may purchase the alcoholic liquors from
10a licensed retailer) and shall allow the licensee to sell and
11offer for sale, at retail, alcoholic liquors for use or
12consumption, but not for resale in any form and only at the
13location and on the specific dates designated for the special
14event in the license. An applicant for a special event retailer
15license must (i) furnish with the application: (A) a resale
16number issued under Section 2c of the Retailers' Occupation Tax
17Act or evidence that the applicant is registered under Section
182a of the Retailers' Occupation Tax Act, (B) a current, valid
19exemption identification number issued under Section 1g of the
20Retailers' Occupation Tax Act, and a certification to the
21Commission that the purchase of alcoholic liquors will be a
22tax-exempt purchase, or (C) a statement that the applicant is
23not registered under Section 2a of the Retailers' Occupation
24Tax Act, does not hold a resale number under Section 2c of the
25Retailers' Occupation Tax Act, and does not hold an exemption
26number under Section 1g of the Retailers' Occupation Tax Act,

 

 

HB3662- 27 -LRB100 10925 RPS 21162 b

1in which event the Commission shall set forth on the special
2event retailer's license a statement to that effect; (ii)
3submit with the application proof satisfactory to the State
4Commission that the applicant will provide dram shop liability
5insurance in the maximum limits; and (iii) show proof
6satisfactory to the State Commission that the applicant has
7obtained local authority approval.
8    (f) A railroad license shall permit the licensee to import
9alcoholic liquors into this State from any point in the United
10States outside this State and to store such alcoholic liquors
11in this State; to make wholesale purchases of alcoholic liquors
12directly from manufacturers, foreign importers, distributors
13and importing distributors from within or outside this State;
14and to store such alcoholic liquors in this State; provided
15that the above powers may be exercised only in connection with
16the importation, purchase or storage of alcoholic liquors to be
17sold or dispensed on a club, buffet, lounge or dining car
18operated on an electric, gas or steam railway in this State;
19and provided further, that railroad licensees exercising the
20above powers shall be subject to all provisions of Article VIII
21of this Act as applied to importing distributors. A railroad
22license shall also permit the licensee to sell or dispense
23alcoholic liquors on any club, buffet, lounge or dining car
24operated on an electric, gas or steam railway regularly
25operated by a common carrier in this State, but shall not
26permit the sale for resale of any alcoholic liquors to any

 

 

HB3662- 28 -LRB100 10925 RPS 21162 b

1licensee within this State. A license shall be obtained for
2each car in which such sales are made.
3    (g) A boat license shall allow the sale of alcoholic liquor
4in individual drinks, on any passenger boat regularly operated
5as a common carrier on navigable waters in this State or on any
6riverboat operated under the Riverboat Gambling Act, which boat
7or riverboat maintains a public dining room or restaurant
8thereon.
9    (h) A non-beverage user's license shall allow the licensee
10to purchase alcoholic liquor from a licensed manufacturer or
11importing distributor, without the imposition of any tax upon
12the business of such licensed manufacturer or importing
13distributor as to such alcoholic liquor to be used by such
14licensee solely for the non-beverage purposes set forth in
15subsection (a) of Section 8-1 of this Act, and such licenses
16shall be divided and classified and shall permit the purchase,
17possession and use of limited and stated quantities of
18alcoholic liquor as follows:
19Class 1, not to exceed ......................... 500 gallons
20Class 2, not to exceed ....................... 1,000 gallons
21Class 3, not to exceed ....................... 5,000 gallons
22Class 4, not to exceed ...................... 10,000 gallons
23Class 5, not to exceed ....................... 50,000 gallons
24    (i) A wine-maker's premises license shall allow a licensee
25that concurrently holds a first-class wine-maker's license to
26sell and offer for sale at retail in the premises specified in

 

 

HB3662- 29 -LRB100 10925 RPS 21162 b

1such license not more than 50,000 gallons of the first-class
2wine-maker's wine that is made at the first-class wine-maker's
3licensed premises per year for use or consumption, but not for
4resale in any form. A wine-maker's premises license shall allow
5a licensee who concurrently holds a second-class wine-maker's
6license to sell and offer for sale at retail in the premises
7specified in such license up to 100,000 gallons of the
8second-class wine-maker's wine that is made at the second-class
9wine-maker's licensed premises per year for use or consumption
10but not for resale in any form. A wine-maker's premises license
11shall allow a licensee that concurrently holds a first-class
12wine-maker's license or a second-class wine-maker's license to
13sell and offer for sale at retail at the premises specified in
14the wine-maker's premises license, for use or consumption but
15not for resale in any form, any beer, wine, and spirits
16purchased from a licensed distributor. Upon approval from the
17State Commission, a wine-maker's premises license shall allow
18the licensee to sell and offer for sale at (i) the wine-maker's
19licensed premises and (ii) at up to 2 additional locations for
20use and consumption and not for resale. Each location shall
21require additional licensing per location as specified in
22Section 5-3 of this Act. A wine-maker's premises licensee shall
23secure liquor liability insurance coverage in an amount at
24least equal to the maximum liability amounts set forth in
25subsection (a) of Section 6-21 of this Act.
26    (j) An airplane license shall permit the licensee to import

 

 

HB3662- 30 -LRB100 10925 RPS 21162 b

1alcoholic liquors into this State from any point in the United
2States outside this State and to store such alcoholic liquors
3in this State; to make wholesale purchases of alcoholic liquors
4directly from manufacturers, foreign importers, distributors
5and importing distributors from within or outside this State;
6and to store such alcoholic liquors in this State; provided
7that the above powers may be exercised only in connection with
8the importation, purchase or storage of alcoholic liquors to be
9sold or dispensed on an airplane; and provided further, that
10airplane licensees exercising the above powers shall be subject
11to all provisions of Article VIII of this Act as applied to
12importing distributors. An airplane licensee shall also permit
13the sale or dispensing of alcoholic liquors on any passenger
14airplane regularly operated by a common carrier in this State,
15but shall not permit the sale for resale of any alcoholic
16liquors to any licensee within this State. A single airplane
17license shall be required of an airline company if liquor
18service is provided on board aircraft in this State. The annual
19fee for such license shall be as determined in Section 5-3.
20    (k) A foreign importer's license shall permit such licensee
21to purchase alcoholic liquor from Illinois licensed
22non-resident dealers only, and to import alcoholic liquor other
23than in bulk from any point outside the United States and to
24sell such alcoholic liquor to Illinois licensed importing
25distributors and to no one else in Illinois; provided that (i)
26the foreign importer registers with the State Commission every

 

 

HB3662- 31 -LRB100 10925 RPS 21162 b

1brand of alcoholic liquor that it proposes to sell to Illinois
2licensees during the license period, (ii) the foreign importer
3complies with all of the provisions of Section 6-9 of this Act
4with respect to registration of such Illinois licensees as may
5be granted the right to sell such brands at wholesale, and
6(iii) the foreign importer complies with the provisions of
7Sections 6-5 and 6-6 of this Act to the same extent that these
8provisions apply to manufacturers.
9    (l) (i) A broker's license shall be required of all persons
10who solicit orders for, offer to sell or offer to supply
11alcoholic liquor to retailers in the State of Illinois, or who
12offer to retailers to ship or cause to be shipped or to make
13contact with distillers, rectifiers, brewers or manufacturers
14or any other party within or without the State of Illinois in
15order that alcoholic liquors be shipped to a distributor,
16importing distributor or foreign importer, whether such
17solicitation or offer is consummated within or without the
18State of Illinois.
19    No holder of a retailer's license issued by the Illinois
20Liquor Control Commission shall purchase or receive any
21alcoholic liquor, the order for which was solicited or offered
22for sale to such retailer by a broker unless the broker is the
23holder of a valid broker's license.
24    The broker shall, upon the acceptance by a retailer of the
25broker's solicitation of an order or offer to sell or supply or
26deliver or have delivered alcoholic liquors, promptly forward

 

 

HB3662- 32 -LRB100 10925 RPS 21162 b

1to the Illinois Liquor Control Commission a notification of
2said transaction in such form as the Commission may by
3regulations prescribe.
4    (ii) A broker's license shall be required of a person
5within this State, other than a retail licensee, who, for a fee
6or commission, promotes, solicits, or accepts orders for
7alcoholic liquor, for use or consumption and not for resale, to
8be shipped from this State and delivered to residents outside
9of this State by an express company, common carrier, or
10contract carrier. This Section does not apply to any person who
11promotes, solicits, or accepts orders for wine as specifically
12authorized in Section 6-29 of this Act.
13    A broker's license under this subsection (l) shall not
14entitle the holder to buy or sell any alcoholic liquors for his
15own account or to take or deliver title to such alcoholic
16liquors.
17    This subsection (l) shall not apply to distributors,
18employees of distributors, or employees of a manufacturer who
19has registered the trademark, brand or name of the alcoholic
20liquor pursuant to Section 6-9 of this Act, and who regularly
21sells such alcoholic liquor in the State of Illinois only to
22its registrants thereunder.
23    Any agent, representative, or person subject to
24registration pursuant to subsection (a-1) of this Section shall
25not be eligible to receive a broker's license.
26    (m) A non-resident dealer's license shall permit such

 

 

HB3662- 33 -LRB100 10925 RPS 21162 b

1licensee to ship into and warehouse alcoholic liquor into this
2State from any point outside of this State, and to sell such
3alcoholic liquor to Illinois licensed foreign importers and
4importing distributors and to no one else in this State;
5provided that (i) said non-resident dealer shall register with
6the Illinois Liquor Control Commission each and every brand of
7alcoholic liquor which it proposes to sell to Illinois
8licensees during the license period, (ii) it shall comply with
9all of the provisions of Section 6-9 hereof with respect to
10registration of such Illinois licensees as may be granted the
11right to sell such brands at wholesale, and (iii) the
12non-resident dealer shall comply with the provisions of
13Sections 6-5 and 6-6 of this Act to the same extent that these
14provisions apply to manufacturers. No person licensed as a
15non-resident dealer shall be granted a distributor's or
16importing distributor's license.
17    (n) A brew pub license shall allow the licensee to only (i)
18manufacture up to 155,000 gallons of beer per year only on the
19premises specified in the license, (ii) make sales of the beer
20manufactured on the premises or, with the approval of the
21Commission, beer manufactured on another brew pub licensed
22premises that is wholly owned and operated by the same licensee
23to importing distributors, distributors, and to non-licensees
24for use and consumption, (iii) store the beer upon the
25premises, (iv) sell and offer for sale at retail from the
26licensed premises for off-premises consumption no more than

 

 

HB3662- 34 -LRB100 10925 RPS 21162 b

1155,000 gallons per year so long as such sales are only made
2in-person, (v) sell and offer for sale at retail for use and
3consumption on the premises specified in the license any form
4of alcoholic liquor purchased from a licensed distributor or
5importing distributor, and (vi) with the prior approval of the
6Commission, annually transfer no more than 155,000 gallons of
7beer manufactured on the premises to a licensed brew pub wholly
8owned and operated by the same licensee.
9    A brew pub licensee shall not under any circumstance sell
10or offer for sale beer manufactured by the brew pub licensee to
11retail licensees.
12    A person who holds a class 2 brewer license may
13simultaneously hold a brew pub license if the class 2 brewer
14(i) does not, under any circumstance, sell or offer for sale
15beer manufactured by the class 2 brewer to retail licensees;
16(ii) does not hold more than 3 brew pub licenses in this State;
17(iii) does not manufacture more than a combined 3,720,000
18gallons of beer per year, including the beer manufactured at
19the brew pub; and (iv) is not a member of or affiliated with,
20directly or indirectly, a manufacturer that produces more than
213,720,000 gallons of beer per year or any other alcoholic
22liquor.
23    Notwithstanding any other provision of this Act, a licensed
24brewer, class 2 brewer, or non-resident dealer who before July
251, 2015 manufactured less than 3,720,000 gallons of beer per
26year and held a brew pub license on or before July 1, 2015 may

 

 

HB3662- 35 -LRB100 10925 RPS 21162 b

1(i) continue to qualify for and hold that brew pub license for
2the licensed premises and (ii) manufacture more than 3,720,000
3gallons of beer per year and continue to qualify for and hold
4that brew pub license if that brewer, class 2 brewer, or
5non-resident dealer does not simultaneously hold a class 1
6brewer license and is not a member of or affiliated with,
7directly or indirectly, a manufacturer that produces more than
83,720,000 gallons of beer per year or that produces any other
9alcoholic liquor.
10    (o) A caterer retailer license shall allow the holder to
11serve alcoholic liquors as an incidental part of a food service
12that serves prepared meals which excludes the serving of snacks
13as the primary meal, either on or off-site whether licensed or
14unlicensed.
15    (p) An auction liquor license shall allow the licensee to
16sell and offer for sale at auction wine and spirits for use or
17consumption, or for resale by an Illinois liquor licensee in
18accordance with provisions of this Act. An auction liquor
19license will be issued to a person and it will permit the
20auction liquor licensee to hold the auction anywhere in the
21State. An auction liquor license must be obtained for each
22auction at least 14 days in advance of the auction date.
23    (q) A special use permit license shall allow an Illinois
24licensed retailer to transfer a portion of its alcoholic liquor
25inventory from its retail licensed premises to the premises
26specified in the license hereby created, and to sell or offer

 

 

HB3662- 36 -LRB100 10925 RPS 21162 b

1for sale at retail, only in the premises specified in the
2license hereby created, the transferred alcoholic liquor for
3use or consumption, but not for resale in any form. A special
4use permit license may be granted for the following time
5periods: one day or less; 2 or more days to a maximum of 15 days
6per location in any 12-month 12 month period. An applicant for
7the special use permit license must also submit with the
8application proof satisfactory to the State Commission that the
9applicant will provide dram shop liability insurance to the
10maximum limits and have local authority approval.
11    (r) A winery shipper's license shall allow a person with a
12first-class or second-class wine manufacturer's license, a
13first-class or second-class wine-maker's license, or a limited
14wine manufacturer's license or who is licensed to make wine
15under the laws of another state to ship wine made by that
16licensee directly to a resident of this State who is 21 years
17of age or older for that resident's personal use and not for
18resale. Prior to receiving a winery shipper's license, an
19applicant for the license must provide the Commission with a
20true copy of its current license in any state in which it is
21licensed as a manufacturer of wine. An applicant for a winery
22shipper's license must also complete an application form that
23provides any other information the Commission deems necessary.
24The application form shall include all addresses from which the
25applicant for a winery shipper's license intends to ship wine,
26including the name and address of any third party, except for a

 

 

HB3662- 37 -LRB100 10925 RPS 21162 b

1common carrier, authorized to ship wine on behalf of the
2manufacturer. The application form shall include an
3acknowledgement consenting to the jurisdiction of the
4Commission, the Illinois Department of Revenue, and the courts
5of this State concerning the enforcement of this Act and any
6related laws, rules, and regulations, including authorizing
7the Department of Revenue and the Commission to conduct audits
8for the purpose of ensuring compliance with Public Act 95-634,
9and an acknowledgement that the wine manufacturer is in
10compliance with Section 6-2 of this Act. Any third party,
11except for a common carrier, authorized to ship wine on behalf
12of a first-class or second-class wine manufacturer's licensee,
13a first-class or second-class wine-maker's licensee, a limited
14wine manufacturer's licensee, or a person who is licensed to
15make wine under the laws of another state shall also be
16disclosed by the winery shipper's licensee, and a copy of the
17written appointment of the third-party wine provider, except
18for a common carrier, to the wine manufacturer shall be filed
19with the State Commission as a supplement to the winery
20shipper's license application or any renewal thereof. The
21winery shipper's license holder shall affirm under penalty of
22perjury, as part of the winery shipper's license application or
23renewal, that he or she only ships wine, either directly or
24indirectly through a third-party provider, from the licensee's
25own production.
26    Except for a common carrier, a third-party provider

 

 

HB3662- 38 -LRB100 10925 RPS 21162 b

1shipping wine on behalf of a winery shipper's license holder is
2the agent of the winery shipper's license holder and, as such,
3a winery shipper's license holder is responsible for the acts
4and omissions of the third-party provider acting on behalf of
5the license holder. A third-party provider, except for a common
6carrier, that engages in shipping wine into Illinois on behalf
7of a winery shipper's license holder shall consent to the
8jurisdiction of the State Commission and the State. Any
9third-party, except for a common carrier, holding such an
10appointment shall, by February 1 of each calendar year, file
11with the State Commission a statement detailing each shipment
12made to an Illinois resident. The State Commission shall adopt
13rules as soon as practicable to implement the requirements of
14Public Act 99-904 this amendatory Act of the 99th General
15Assembly and shall adopt rules prohibiting any such third-party
16appointment of a third-party provider, except for a common
17carrier, that has been deemed by the State Commission to have
18violated the provisions of this Act with regard to any winery
19shipper licensee.
20    A winery shipper licensee must pay to the Department of
21Revenue the State liquor gallonage tax under Section 8-1 for
22all wine that is sold by the licensee and shipped to a person
23in this State. For the purposes of Section 8-1, a winery
24shipper licensee shall be taxed in the same manner as a
25manufacturer of wine. A licensee who is not otherwise required
26to register under the Retailers' Occupation Tax Act must

 

 

HB3662- 39 -LRB100 10925 RPS 21162 b

1register under the Use Tax Act to collect and remit use tax to
2the Department of Revenue for all gallons of wine that are sold
3by the licensee and shipped to persons in this State. If a
4licensee fails to remit the tax imposed under this Act in
5accordance with the provisions of Article VIII of this Act, the
6winery shipper's license shall be revoked in accordance with
7the provisions of Article VII of this Act. If a licensee fails
8to properly register and remit tax under the Use Tax Act or the
9Retailers' Occupation Tax Act for all wine that is sold by the
10winery shipper and shipped to persons in this State, the winery
11shipper's license shall be revoked in accordance with the
12provisions of Article VII of this Act.
13    A winery shipper licensee must collect, maintain, and
14submit to the Commission on a semi-annual basis the total
15number of cases per resident of wine shipped to residents of
16this State. A winery shipper licensed under this subsection (r)
17must comply with the requirements of Section 6-29 of this Act.
18    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
19Section 3-12, the State Commission may receive, respond to, and
20investigate any complaint and impose any of the remedies
21specified in paragraph (1) of subsection (a) of Section 3-12.
22    (s) A craft distiller tasting permit license shall allow an
23Illinois licensed craft distiller to transfer a portion of its
24alcoholic liquor inventory from its craft distiller licensed
25premises to the premises specified in the license hereby
26created and to conduct a sampling, only in the premises

 

 

HB3662- 40 -LRB100 10925 RPS 21162 b

1specified in the license hereby created, of the transferred
2alcoholic liquor in accordance with subsection (c) of Section
36-31 of this Act. The transferred alcoholic liquor may not be
4sold or resold in any form. An applicant for the craft
5distiller tasting permit license must also submit with the
6application proof satisfactory to the State Commission that the
7applicant will provide dram shop liability insurance to the
8maximum limits and have local authority approval.
9(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
1098-756, eff. 7-16-14; 99-448, eff. 8-24-15; 99-642, eff.
117-28-16; 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904,
12eff. 1-1-17; revised 9-15-16.)
 
13    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
14    Sec. 6-4. (a) No person licensed by any licensing authority
15as a distiller, or a wine manufacturer, or any subsidiary or
16affiliate thereof, or any officer, associate, member, partner,
17representative, employee, agent or shareholder owning more
18than 5% of the outstanding shares of such person shall be
19issued an importing distributor's or distributor's license,
20nor shall any person licensed by any licensing authority as an
21importing distributor, distributor or retailer, or any
22subsidiary or affiliate thereof, or any officer or associate,
23member, partner, representative, employee, agent or
24shareholder owning more than 5% of the outstanding shares of
25such person be issued a distiller's license, a craft

 

 

HB3662- 41 -LRB100 10925 RPS 21162 b

1distiller's license, or a wine manufacturer's license; and no
2person or persons licensed as a distiller or craft distiller by
3any licensing authority shall have any interest, directly or
4indirectly, with such distributor or importing distributor.
5    However, an importing distributor or distributor, which on
6January 1, 1985 is owned by a brewer, or any subsidiary or
7affiliate thereof or any officer, associate, member, partner,
8representative, employee, agent or shareholder owning more
9than 5% of the outstanding shares of the importing distributor
10or distributor referred to in this paragraph, may own or
11acquire an ownership interest of more than 5% of the
12outstanding shares of a wine manufacturer and be issued a wine
13manufacturer's license by any licensing authority.
14    (b) The foregoing provisions shall not apply to any person
15licensed by any licensing authority as a distiller or wine
16manufacturer, or to any subsidiary or affiliate of any
17distiller or wine manufacturer who shall have been heretofore
18licensed by the State Commission as either an importing
19distributor or distributor during the annual licensing period
20expiring June 30, 1947, and shall actually have made sales
21regularly to retailers.
22    (c) Provided, however, that in such instances where a
23distributor's or importing distributor's license has been
24issued to any distiller or wine manufacturer or to any
25subsidiary or affiliate of any distiller or wine manufacturer
26who has, during the licensing period ending June 30, 1947, sold

 

 

HB3662- 42 -LRB100 10925 RPS 21162 b

1or distributed as such licensed distributor or importing
2distributor alcoholic liquors and wines to retailers, such
3distiller or wine manufacturer or any subsidiary or affiliate
4of any distiller or wine manufacturer holding such
5distributor's or importing distributor's license may continue
6to sell or distribute to retailers such alcoholic liquors and
7wines which are manufactured, distilled, processed or marketed
8by distillers and wine manufacturers whose products it sold or
9distributed to retailers during the whole or any part of its
10licensing periods; and such additional brands and additional
11products may be added to the line of such distributor or
12importing distributor, provided, that such brands and such
13products were not sold or distributed by any distributor or
14importing distributor licensed by the State Commission during
15the licensing period ending June 30, 1947, but can not sell or
16distribute to retailers any other alcoholic liquors or wines.
17    (d) It shall be unlawful for any distiller licensed
18anywhere to have any stock ownership or interest in any
19distributor's or importing distributor's license wherein any
20other person has an interest therein who is not a distiller and
21does not own more than 5% of any stock in any distillery.
22Nothing herein contained shall apply to such distillers or
23their subsidiaries or affiliates, who had a distributor's or
24importing distributor's license during the licensing period
25ending June 30, 1947, which license was owned in whole by such
26distiller, or subsidiaries or affiliates of such distiller.

 

 

HB3662- 43 -LRB100 10925 RPS 21162 b

1    (e) Any person licensed as a brewer, class 1 brewer, or
2class 2 brewer shall be permitted to sell on the licensed
3premises to non-licensees for on or off-premises consumption
4for the premises in which he or she actually conducts such
5business beer manufactured by the brewer, class 1 brewer, or
6class 2 brewer. Any person licensed as a class 1 brewer shall
7be permitted to sell on the licensed premises to non-licensees
8for on or off-premises consumption for the premises in which he
9or she actually conducts such business beer, cider, or mead
10manufactured by the class 1 brewer. Such sales shall be limited
11to on-premises, in-person sales only, for lawful consumption on
12or off premises. Such authorization shall be considered a
13privilege granted by the brewer license and, other than a
14manufacturer of beer as stated above, no manufacturer or
15distributor or importing distributor, excluding airplane
16licensees exercising powers provided in paragraph (i) of
17Section 5-1 of this Act, or any subsidiary or affiliate
18thereof, or any officer, associate, member, partner,
19representative, employee or agent, or shareholder shall be
20issued a retailer's license, nor shall any person having a
21retailer's license, excluding airplane licensees exercising
22powers provided in paragraph (i) of Section 5-1 of this Act, or
23any subsidiary or affiliate thereof, or any officer, associate,
24member, partner, representative or agent, or shareholder be
25issued a manufacturer's license or importing distributor's
26license.

 

 

HB3662- 44 -LRB100 10925 RPS 21162 b

1    A person who holds a class 1 or class 2 brewer license and
2is authorized by this Section to sell beer to non-licensees
3shall not sell beer to non-licensees from more than 3 total
4brewer or commonly owned brew pub licensed locations in this
5State. The class 1 or class 2 brewer shall designate to the
6State Commission the brewer or brew pub locations from which it
7will sell beer to non-licensees.
8    A person who holds a class 1 brewer license and is
9authorized by this Section to sell beer, cider, or mead to
10non-licensees shall not sell beer, cider, or mead to
11non-licensees from more than 3 total brewer or commonly owned
12brew pub licensed locations in this State. The class 1 brewer
13shall designate to the State Commission the brewer or brew pub
14locations from which it will sell beer, cider, or mead to
15non-licensees.
16    A person licensed as a craft distiller, including a person
17who holds more than one craft distiller license, not affiliated
18with any other person manufacturing spirits may be authorized
19by the Commission to sell up to 2,500 gallons of spirits
20produced by the person to non-licensees for on or off-premises
21consumption for the premises in which he or she actually
22conducts business permitting only the retail sale of spirits
23manufactured at such premises. Such sales shall be limited to
24on-premises, in-person sales only, for lawful consumption on or
25off premises, and such authorization shall be considered a
26privilege granted by the craft distiller license. A craft

 

 

HB3662- 45 -LRB100 10925 RPS 21162 b

1distiller licensed for retail sale shall secure liquor
2liability insurance coverage in an amount at least equal to the
3maximum liability amounts set forth in subsection (a) of
4Section 6-21 of this Act.
5    A craft distiller license holder shall not deliver any
6alcoholic liquor to any non-licensee off the licensed premises.
7A craft distiller shall affirm in its annual craft distiller's
8license application that it does not produce more than 100,000
9gallons of distilled spirits annually and that the craft
10distiller does not sell more than 2,500 gallons of spirits to
11non-licensees for on or off-premises consumption. In the
12application, which shall be sworn under penalty of perjury, the
13craft distiller shall state the volume of production and sales
14for each year since the craft distiller's establishment.
15    (f) (Blank).
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    (h) The changes made to this Section by Public Act 99-47
24shall not diminish or impair the rights of any person, whether
25a distiller, wine manufacturer, agent, or affiliate thereof,
26who requested in writing and submitted documentation to the

 

 

HB3662- 46 -LRB100 10925 RPS 21162 b

1State Commission on or before February 18, 2015 to be approved
2for a retail license pursuant to what has heretofore been
3subsection (f); provided that, on or before that date, the
4State Commission considered the intent of that person to apply
5for the retail license under that subsection and, by recorded
6vote, the State Commission approved a resolution indicating
7that such a license application could be lawfully approved upon
8that person duly filing a formal application for a retail
9license and if that person, within 90 days of the State
10Commission appearance and recorded vote, first filed an
11application with the appropriate local commission, which
12application was subsequently approved by the appropriate local
13commission prior to consideration by the State Commission of
14that person's application for a retail license. It is further
15provided that the State Commission may approve the person's
16application for a retail license or renewals of such license if
17such person continues to diligently adhere to all
18representations made in writing to the State Commission on or
19before February 18, 2015, or thereafter, or in the affidavit
20filed by that person with the State Commission to support the
21issuance of a retail license and to abide by all applicable
22laws and duly adopted rules.
23(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
2499-642, eff. 7-28-16; 99-902, eff. 8-26-16; revised 10-25-16.)