Rep. Lou Lang
Filed: 4/20/2007
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1 | AMENDMENT TO HOUSE BILL 429
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2 | AMENDMENT NO. ______. Amend House Bill 429 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Liquor Control Act of 1934 is amended by | ||||||
5 | changing Sections 3-12, 5-1, 5-3, 6-4, 6-29, and 6-29.1 as | ||||||
6 | follows: | ||||||
7 | (235 ILCS 5/3-12) (from Ch. 43, par. 108)
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8 | Sec. 3-12. Powers and duties of State Commission.
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9 | (a) The State commission shall have the following powers, | ||||||
10 | functions and
duties:
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11 | (1) To receive applications and to issue licenses to | ||||||
12 | manufacturers,
foreign importers, importing distributors, | ||||||
13 | distributors, non-resident dealers,
on premise consumption | ||||||
14 | retailers, off premise sale retailers, special event
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15 | retailer licensees, special use permit licenses, auction | ||||||
16 | liquor licenses, brew
pubs, caterer retailers, |
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1 | non-beverage users, railroads, including owners and
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2 | lessees of sleeping, dining and cafe cars, airplanes, | ||||||
3 | boats, brokers, and wine
maker's premises licensees in | ||||||
4 | accordance with the provisions of this Act, and
to suspend | ||||||
5 | or revoke such licenses upon the State commission's | ||||||
6 | determination,
upon notice after hearing, that a licensee | ||||||
7 | has violated any provision of this
Act or any rule or | ||||||
8 | regulation issued pursuant thereto and in effect for 30 | ||||||
9 | days
prior to such violation. Except in the case of an | ||||||
10 | action taken pursuant to a
violation of Section 6-3, 6-5, | ||||||
11 | or 6-9, any action by the State Commission to
suspend or | ||||||
12 | revoke a licensee's license may be limited to the license | ||||||
13 | for the
specific premises where the violation occurred.
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14 | In lieu of suspending or revoking a license, the | ||||||
15 | commission may impose
a fine, upon the State commission's | ||||||
16 | determination and notice after hearing,
that a licensee has | ||||||
17 | violated any provision of this Act or any rule or
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18 | regulation issued pursuant thereto and in effect for 30 | ||||||
19 | days prior to such
violation. The fine imposed under this | ||||||
20 | paragraph may not exceed $500 for each
violation. Each day | ||||||
21 | that the activity, which gave rise to the original fine,
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22 | continues is a separate violation. The maximum fine that | ||||||
23 | may be levied against
any licensee, for the period of the | ||||||
24 | license, shall not exceed $20,000.
The maximum penalty that | ||||||
25 | may be imposed on a licensee for selling a bottle of
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26 | alcoholic liquor with a foreign object in it or serving |
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1 | from a bottle of
alcoholic liquor with a foreign object in | ||||||
2 | it shall be the destruction of that
bottle of alcoholic | ||||||
3 | liquor for the first 10 bottles so sold or served from by
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4 | the licensee. For the eleventh bottle of alcoholic liquor | ||||||
5 | and for each third
bottle thereafter sold or served from by | ||||||
6 | the licensee with a foreign object in
it, the maximum | ||||||
7 | penalty that may be imposed on the licensee is the | ||||||
8 | destruction
of the bottle of alcoholic liquor and a fine of | ||||||
9 | up to $50.
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10 | (2) To adopt such rules and regulations consistent with | ||||||
11 | the
provisions of this Act which shall be necessary to | ||||||
12 | carry on its
functions and duties to the end that the | ||||||
13 | health, safety and welfare of
the People of the State of | ||||||
14 | Illinois shall be protected and temperance in
the | ||||||
15 | consumption of alcoholic liquors shall be fostered and | ||||||
16 | promoted and
to distribute copies of such rules and | ||||||
17 | regulations to all licensees
affected thereby.
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18 | (3) To call upon other administrative departments of | ||||||
19 | the State,
county and municipal governments, county and | ||||||
20 | city police departments and
upon prosecuting officers for | ||||||
21 | such information and assistance as it
deems necessary in | ||||||
22 | the performance of its duties.
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23 | (4) To recommend to local commissioners rules and | ||||||
24 | regulations, not
inconsistent with the law, for the | ||||||
25 | distribution and sale of alcoholic
liquors throughout the | ||||||
26 | State.
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1 | (5) To inspect, or cause to be inspected, any
premises | ||||||
2 | in this State
where alcoholic liquors are manufactured, | ||||||
3 | distributed, warehoused, or
sold.
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4 | (5.1) Upon receipt of a complaint or upon having | ||||||
5 | knowledge that any person
is engaged in business as a | ||||||
6 | manufacturer, importing distributor, distributor,
or | ||||||
7 | retailer without a license or valid license, to notify the | ||||||
8 | local liquor
authority, file a complaint with the State's | ||||||
9 | Attorney's Office of the county
where the incident | ||||||
10 | occurred, or initiate an investigation with the | ||||||
11 | appropriate
law enforcement officials.
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12 | (5.2) To issue a cease and desist notice to persons | ||||||
13 | shipping alcoholic
liquor
into this State from a point | ||||||
14 | outside of this State if the shipment is in
violation of | ||||||
15 | this Act.
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16 | (5.3) To receive complaints from licensees, local | ||||||
17 | officials, law
enforcement agencies, organizations, and | ||||||
18 | persons stating that any licensee has
been or is violating | ||||||
19 | any provision of this Act or the rules and regulations
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20 | issued pursuant to this Act. Such complaints shall be in | ||||||
21 | writing, signed and
sworn to by the person making the | ||||||
22 | complaint, and shall state with specificity
the facts in | ||||||
23 | relation to the alleged violation. If the Commission has
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24 | reasonable grounds to believe that the complaint | ||||||
25 | substantially alleges a
violation of this Act or rules and | ||||||
26 | regulations adopted pursuant to this Act, it
shall conduct |
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1 | an investigation. If, after conducting an investigation, | ||||||
2 | the
Commission is satisfied that the alleged violation did | ||||||
3 | occur, it shall proceed
with disciplinary action against | ||||||
4 | the licensee as provided in this Act.
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5 | (6) To hear and determine appeals from orders of a | ||||||
6 | local commission
in accordance with the provisions of this | ||||||
7 | Act, as hereinafter set forth.
Hearings under this | ||||||
8 | subsection shall be held in Springfield or Chicago,
at | ||||||
9 | whichever location is the more convenient for the majority | ||||||
10 | of persons
who are parties to the hearing.
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11 | (7) The commission shall establish uniform systems of | ||||||
12 | accounts to be
kept by all retail licensees having more | ||||||
13 | than 4 employees, and for this
purpose the commission may | ||||||
14 | classify all retail licensees having more
than 4 employees | ||||||
15 | and establish a uniform system of accounts for each
class | ||||||
16 | and prescribe the manner in which such accounts shall be | ||||||
17 | kept.
The commission may also prescribe the forms of | ||||||
18 | accounts to be kept by
all retail licensees having more | ||||||
19 | than 4 employees, including but not
limited to accounts of | ||||||
20 | earnings and expenses and any distribution,
payment, or | ||||||
21 | other distribution of earnings or assets, and any other
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22 | forms, records and memoranda which in the judgment of the | ||||||
23 | commission may
be necessary or appropriate to carry out any | ||||||
24 | of the provisions of this
Act, including but not limited to | ||||||
25 | such forms, records and memoranda as
will readily and | ||||||
26 | accurately disclose at all times the beneficial
ownership |
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1 | of such retail licensed business. The accounts, forms,
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2 | records and memoranda shall be available at all reasonable | ||||||
3 | times for
inspection by authorized representatives of the | ||||||
4 | State commission or by
any local liquor control | ||||||
5 | commissioner or his or her authorized representative.
The | ||||||
6 | commission, may, from time to time, alter, amend or repeal, | ||||||
7 | in whole
or in part, any uniform system of accounts, or the | ||||||
8 | form and manner of
keeping accounts.
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9 | (8) In the conduct of any hearing authorized to be held | ||||||
10 | by the
commission, to appoint, at the commission's | ||||||
11 | discretion, hearing officers
to conduct hearings involving | ||||||
12 | complex issues or issues that will require a
protracted | ||||||
13 | period of time to resolve, to examine, or cause to be | ||||||
14 | examined,
under oath, any licensee, and to examine or cause | ||||||
15 | to be examined the books and
records
of such licensee; to | ||||||
16 | hear testimony and take proof material for its
information | ||||||
17 | in the discharge of its duties hereunder; to administer or
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18 | cause to be administered oaths; for any such purpose to | ||||||
19 | issue
subpoena or subpoenas to require the attendance of | ||||||
20 | witnesses and the
production of books, which shall be | ||||||
21 | effective in any part of this State, and
to adopt rules to | ||||||
22 | implement its powers under this paragraph (8).
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23 | Any Circuit Court may by order duly entered,
require | ||||||
24 | the attendance of witnesses and the production of relevant | ||||||
25 | books
subpoenaed by the State commission and the court may | ||||||
26 | compel
obedience to its order by proceedings for contempt.
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1 | (9) To investigate the administration of laws in | ||||||
2 | relation to
alcoholic liquors in this and other states and | ||||||
3 | any foreign countries,
and to recommend from time to time | ||||||
4 | to the Governor and through him or
her to the legislature | ||||||
5 | of this State, such amendments to this Act, if any, as
it | ||||||
6 | may think desirable and as will serve to further the | ||||||
7 | general broad
purposes contained in Section 1-2 hereof.
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8 | (10) To adopt such rules and regulations consistent | ||||||
9 | with the
provisions of this Act which shall be necessary | ||||||
10 | for the control, sale or
disposition of alcoholic liquor | ||||||
11 | damaged as a result of an accident, wreck,
flood, fire or | ||||||
12 | other similar occurrence.
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13 | (11) To develop industry educational programs related | ||||||
14 | to responsible
serving and selling, particularly in the | ||||||
15 | areas of overserving consumers and
illegal underage | ||||||
16 | purchasing and consumption of alcoholic beverages.
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17 | (11.1) To license persons providing education and | ||||||
18 | training to alcohol
beverage sellers and servers under the
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19 | Beverage Alcohol Sellers and Servers
Education and | ||||||
20 | Training (BASSET) programs and to develop and administer a | ||||||
21 | public
awareness program in Illinois to reduce or eliminate | ||||||
22 | the illegal purchase and
consumption of alcoholic beverage | ||||||
23 | products by persons under the age of 21.
Application for a | ||||||
24 | license shall be made on forms provided by the State
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25 | Commission.
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26 | (12) To develop and maintain a repository of license |
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1 | and regulatory
information.
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2 | (13) On or before January 15, 1994, the Commission | ||||||
3 | shall issue
a written report to the Governor and General | ||||||
4 | Assembly that is to be based on a
comprehensive study of | ||||||
5 | the impact on and implications for the State of Illinois
of | ||||||
6 | Section 1926 of the Federal ADAMHA Reorganization Act of | ||||||
7 | 1992 (Public Law
102-321). This study shall address the | ||||||
8 | extent to which Illinois currently
complies with the | ||||||
9 | provisions of P.L. 102-321 and the rules promulgated | ||||||
10 | pursuant
thereto.
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11 | As part of its report, the Commission shall provide the | ||||||
12 | following essential
information:
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13 | (i) the number of retail distributors of tobacco | ||||||
14 | products, by type and
geographic area, in the State;
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15 | (ii) the number of reported citations and | ||||||
16 | successful convictions,
categorized by type and | ||||||
17 | location of retail distributor, for violation of the
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18 | Sale of Tobacco to Minors Act and the Smokeless
Tobacco | ||||||
19 | Limitation Act;
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20 | (iii) the extent and nature of organized | ||||||
21 | educational and governmental
activities that are | ||||||
22 | intended to promote, encourage or otherwise secure
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23 | compliance with any Illinois laws that prohibit the | ||||||
24 | sale or distribution of
tobacco products to minors; and
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25 | (iv) the level of access and availability of | ||||||
26 | tobacco products to
individuals under the age of 18.
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1 | To obtain the data necessary to comply with the | ||||||
2 | provisions of P.L. 102-321
and the requirements of this | ||||||
3 | report, the Commission shall conduct random,
unannounced | ||||||
4 | inspections of a geographically and scientifically | ||||||
5 | representative
sample of the State's retail tobacco | ||||||
6 | distributors.
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7 | The Commission shall consult with the Department of | ||||||
8 | Public Health, the
Department of Human Services, the
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9 | Illinois State Police and any
other executive branch | ||||||
10 | agency, and private organizations that may have
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11 | information relevant to this report.
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12 | The Commission may contract with the Food and Drug | ||||||
13 | Administration of the
U.S. Department of Health and Human | ||||||
14 | Services to conduct unannounced
investigations of Illinois | ||||||
15 | tobacco vendors to determine compliance with federal
laws | ||||||
16 | relating to the illegal sale of cigarettes and smokeless | ||||||
17 | tobacco products
to persons under the age of 18.
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18 | (14) On or before April 30, 2008 and every 2 years
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19 | thereafter, the Commission shall present a written
report | ||||||
20 | to the Governor and the General Assembly that shall
be | ||||||
21 | based on a study of the impact of this amendatory Act of
| ||||||
22 | the 95th General Assembly on the business of soliciting,
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23 | selling, and shipping wine from inside and outside of this
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24 | State directly to residents of this State. As part of its
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25 | report, the Commission shall provide all of the
following | ||||||
26 | information: |
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1 | (A) The amount of State excise and sales tax
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2 | revenues generated. | ||||||
3 | (B) The amount of licensing fees received. | ||||||
4 | (C) The number of cases of wine shipped from inside
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5 | and outside of this State directly to residents of this
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6 | State. | ||||||
7 | (D) The number of alcohol compliance operations
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8 | conducted. | ||||||
9 | (E) The number of winery shipper's licenses
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10 | issued. | ||||||
11 | (F) The number of each of the following: reported
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12 | violations; cease and desist notices issued by the
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13 | Commission; notices of violations issued by
the | ||||||
14 | Commission and to the Department of Revenue;
and | ||||||
15 | notices and complaints of violations to law
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16 | enforcement officials, including, without limitation,
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17 | the Illinois Attorney General and the U.S. Department
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18 | of Treasury's Alcohol and Tobacco Tax and Trade Bureau. | ||||||
19 | (15) As a means to reduce the underage consumption of
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20 | alcoholic liquors, the Commission shall conduct
alcohol | ||||||
21 | compliance operations to investigate whether
businesses | ||||||
22 | that are soliciting, selling, and shipping wine
from inside | ||||||
23 | or outside of this State directly to residents
of this | ||||||
24 | State are licensed by this State or are selling or
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25 | attempting to sell wine to persons under 21 years of age in
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26 | violation of this Act. |
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1 | (16) The Commission shall, in addition to
notifying any | ||||||
2 | appropriate law enforcement agency, submit
notices of | ||||||
3 | complaints or violations of Sections 6-29 and
6-29.1 by | ||||||
4 | persons who do not hold a winery shipper's
license under | ||||||
5 | this amendatory Act to the Illinois Attorney General and
to | ||||||
6 | the U.S. Department of Treasury's Alcohol and Tobacco Tax | ||||||
7 | and Trade Bureau. | ||||||
8 | (17) (A) A person licensed to make wine under the laws | ||||||
9 | of another state who has a winery shipper's license under | ||||||
10 | this amendatory Act and annually produces less than 25,000 | ||||||
11 | gallons of wine or a person who has a first-class or | ||||||
12 | second-class wine manufacturer's license, a first-class or | ||||||
13 | second-class wine-maker's license, or a limited wine | ||||||
14 | manufacturer's license under this Act and annually | ||||||
15 | produces less than 25,000 gallons of wine may make | ||||||
16 | application to the Commission for a self-distribution | ||||||
17 | exemption to allow the sale of not more than 5,000 gallons | ||||||
18 | of the exemption holder's wine to retail licensees per | ||||||
19 | year. | ||||||
20 | (B) In the application, which shall be sworn under | ||||||
21 | penalty of perjury, such person shall state (1) the | ||||||
22 | date it was established; (2) its volume of production | ||||||
23 | and sales for each year since its establishment; (3) | ||||||
24 | its efforts to establish distributor relationships; | ||||||
25 | (4) that a self-distribution exemption is necessary to | ||||||
26 | facilitate the marketing of its wine; and (5) that it |
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1 | will comply with the liquor and revenue laws of the | ||||||
2 | United States, this State, and any other state where it | ||||||
3 | is licensed. | ||||||
4 | (C) The Commission shall approve the application | ||||||
5 | for a self-distribution exemption if such person: (1) | ||||||
6 | is in compliance with State revenue and liquor laws; | ||||||
7 | (2) is not a member of any affiliated group that | ||||||
8 | produces more than 25,000 gallons of wine per annum or | ||||||
9 | produces any other alcoholic liquor; (3) will not | ||||||
10 | annually produce for sale more than 25,000 gallons of | ||||||
11 | wine; and (4) will not annually sell more than 5,000 | ||||||
12 | gallons of its wine to retail licensees. | ||||||
13 | (D) A self-distribution exemption holder shall | ||||||
14 | annually certify to the Commission its production of | ||||||
15 | wine in the previous 12 months and its anticipated | ||||||
16 | production and sales for the next 12 months. The | ||||||
17 | Commission may fine, suspend, or revoke a | ||||||
18 | self-distribution exemption after a hearing if it | ||||||
19 | finds that the exemption holder has made a material | ||||||
20 | misrepresentation in its application, violated a | ||||||
21 | revenue or liquor law of Illinois, exceeded production | ||||||
22 | of 25,000 gallons of wine in any calendar year, or | ||||||
23 | become part of an affiliated group producing more than | ||||||
24 | 25,000 gallons of wine or any other alcoholic liquor. | ||||||
25 | (E) Except in hearings for violations of this Act | ||||||
26 | or amendatory Act or a bona fide investigation by duly |
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1 | sworn law enforcement officials, the Commission, or | ||||||
2 | its agents, the Commission shall maintain the | ||||||
3 | production and sales information of a | ||||||
4 | self-distribution exemption holder as confidential and | ||||||
5 | shall not release such information to any person. | ||||||
6 | (F) The Commission shall issue regulations | ||||||
7 | governing self-distribution exemptions consistent with | ||||||
8 | this Section and this Act. | ||||||
9 | (G) Nothing in this subsection (17) shall prohibit | ||||||
10 | a self-distribution exemption holder from entering | ||||||
11 | into or simultaneously having a distribution agreement | ||||||
12 | with a licensed Illinois distributor. | ||||||
13 | (H) It is the intent of this subsection (17) to | ||||||
14 | promote and continue orderly markets. The General | ||||||
15 | Assembly finds that in order to preserve Illinois' | ||||||
16 | regulatory distribution system it is necessary to | ||||||
17 | create an exception for smaller makers of wine as their | ||||||
18 | wines are frequently adjusted in varietals, mixes, | ||||||
19 | vintages, and taste to find and create market niches | ||||||
20 | sometimes too small for distributor or importing | ||||||
21 | distributor business strategies. Limited | ||||||
22 | self-distribution rights will afford and allow smaller | ||||||
23 | makers of wine access to the marketplace in order to | ||||||
24 | develop a customer base without impairing the | ||||||
25 | integrity of the 3-tier system.
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26 | (b) On or before April 30, 1999, the Commission shall |
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1 | present a written
report to the Governor and the General | ||||||
2 | Assembly that shall be based on a study
of the impact of this | ||||||
3 | amendatory Act of 1998 on the business of soliciting,
selling, | ||||||
4 | and shipping
alcoholic liquor from outside of this State | ||||||
5 | directly to residents of this
State.
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6 | As part of its report, the Commission shall provide the | ||||||
7 | following
information:
| ||||||
8 | (i) the amount of State excise and sales tax revenues | ||||||
9 | generated as a
result of this amendatory Act of 1998;
| ||||||
10 | (ii) the amount of licensing fees received as a result | ||||||
11 | of this amendatory
Act of 1998;
| ||||||
12 | (iii) the number of reported violations, the number of | ||||||
13 | cease and desist
notices issued by the Commission, the | ||||||
14 | number of notices of violations issued
to the Department of | ||||||
15 | Revenue, and the number of notices and complaints of
| ||||||
16 | violations to law enforcement officials.
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17 | (Source: P.A. 92-378, eff. 8-16-01; 92-813, eff. 8-21-02; | ||||||
18 | 93-1057, eff. 12-2-04.)
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19 | (235 ILCS 5/5-1) (from Ch. 43, par. 115)
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20 | Sec. 5-1. Licenses issued by the Illinois Liquor Control | ||||||
21 | Commission
shall be of the following classes:
| ||||||
22 | (a) Manufacturer's license - Class 1.
Distiller, Class 2. | ||||||
23 | Rectifier, Class 3. Brewer, Class 4. First Class Wine
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24 | Manufacturer, Class 5. Second Class Wine Manufacturer,
Class 6. | ||||||
25 | First Class Winemaker, Class 7. Second Class Winemaker, Class |
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1 | 8.
Limited Wine Manufacturer,
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2 | (b) Distributor's license,
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3 | (c) Importing Distributor's license,
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4 | (d) Retailer's license,
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5 | (e) Special Event Retailer's license (not-for-profit),
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6 | (f) Railroad license,
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7 | (g) Boat license,
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8 | (h) Non-Beverage User's license,
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9 | (i) Wine-maker's premises license,
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10 | (j) Airplane license,
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11 | (k) Foreign importer's license,
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12 | (l) Broker's license,
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13 | (m) Non-resident dealer's
license,
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14 | (n) Brew Pub license,
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15 | (o) Auction liquor license,
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16 | (p) Caterer retailer license,
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17 | (q) Special use permit license , .
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18 | (r) Winery shipper's license.
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19 | No
person, firm, partnership, corporation, or other legal | ||||||
20 | business entity that is
engaged in the manufacturing of wine | ||||||
21 | may concurrently obtain and hold a
wine-maker's license and a | ||||||
22 | wine manufacturer's license.
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23 | (a) A manufacturer's license shall allow the manufacture,
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24 | importation in bulk, storage, distribution and sale of | ||||||
25 | alcoholic liquor
to persons without the State, as may be | ||||||
26 | permitted by law and to licensees
in this State as follows:
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1 | Class 1. A Distiller may make sales and deliveries of | ||||||
2 | alcoholic liquor to
distillers, rectifiers, importing | ||||||
3 | distributors, distributors and
non-beverage users and to no | ||||||
4 | other licensees.
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5 | Class 2. A Rectifier, who is not a distiller, as defined | ||||||
6 | herein, may make
sales and deliveries of alcoholic liquor to | ||||||
7 | rectifiers, importing distributors,
distributors, retailers | ||||||
8 | and non-beverage users and to no other licensees.
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9 | Class 3. A Brewer may make sales and deliveries of beer to | ||||||
10 | importing
distributors, distributors, and to non-licensees, | ||||||
11 | and to
retailers provided the brewer obtains an importing | ||||||
12 | distributor's license or
distributor's license in accordance | ||||||
13 | with the provisions of this Act.
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14 | Class 4. A first class wine-manufacturer may make sales and | ||||||
15 | deliveries of
up to 50,000 gallons of wine to manufacturers,
| ||||||
16 | importing
distributors and distributors, and to no other | ||||||
17 | licensees.
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18 | Class 5. A second class Wine manufacturer may make sales | ||||||
19 | and deliveries
of more than 50,000 gallons of wine to | ||||||
20 | manufacturers, importing distributors
and distributors and to | ||||||
21 | no other licensees.
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22 | Class 6. A first-class wine-maker's license shall allow the | ||||||
23 | manufacture
of up to 50,000 gallons of wine per year, and the
| ||||||
24 | storage
and sale of such
wine to distributors in the State and | ||||||
25 | to persons without the
State, as may be permitted by law. A | ||||||
26 | person who, prior to the effective date of this amendatory Act |
| |||||||
| |||||||
1 | of the 95th General Assembly, is a holder of a first-class | ||||||
2 | wine-maker's license and annually produces more than 25,000 | ||||||
3 | gallons of its own wine and who distributes its wine to | ||||||
4 | licensed retailers shall cease this practice on or before July | ||||||
5 | 1, 2008 in compliance with this amendatory Act of the 95th | ||||||
6 | General Assembly.
A first-class wine-maker's license shall
| ||||||
7 | allow the sale of no more than 5,000
gallons of the licensee's | ||||||
8 | wine to retailers. The State Commission shall issue
only one | ||||||
9 | first-class wine-maker's license to any person, firm, | ||||||
10 | partnership,
corporation, or other legal business entity that | ||||||
11 | is engaged in the making of
less than 50,000 gallons of wine | ||||||
12 | annually that applies for a first-class
wine-maker's license. | ||||||
13 | No subsidiary or affiliate thereof, nor any officer,
associate, | ||||||
14 | member, partner, representative, employee, agent, or | ||||||
15 | shareholder may
be issued an additional wine-maker's license by | ||||||
16 | the State Commission.
| ||||||
17 | Class 7. A second-class wine-maker's license shall allow | ||||||
18 | the manufacture
of between 50,000 and 150,000
100,000 gallons | ||||||
19 | of wine per year, and
the
storage and sale of such wine
to | ||||||
20 | distributors in this State and to persons without the State, as | ||||||
21 | may be
permitted by law. A person who, prior to the effective | ||||||
22 | date of this amendatory Act of the 95th General Assembly, is a | ||||||
23 | holder of a second-class wine-maker's license and annually | ||||||
24 | produces more than 25,000 gallons of its own wine and who | ||||||
25 | distributes its wine to licensed retailers shall cease this | ||||||
26 | practice on or before July 1, 2008 in compliance with this |
| |||||||
| |||||||
1 | amendatory Act of the 95th General Assembly.
A second-class | ||||||
2 | wine-maker's license shall allow the sale
of
no more than | ||||||
3 | 10,000 gallons of the licensee's wine directly to retailers.
| ||||||
4 | The State Commission shall issue only one second-class | ||||||
5 | wine-maker's license
to any person, firm, partnership, | ||||||
6 | corporation, or other legal business entity
that is engaged in | ||||||
7 | the making of less than 100,000 gallons of wine annually
that | ||||||
8 | applies for a second-class wine-maker's license. No subsidiary | ||||||
9 | or
affiliate thereof, or any officer, associate, member, | ||||||
10 | partner, representative,
employee, agent, or shareholder may | ||||||
11 | be issued an additional wine-maker's
license by the State | ||||||
12 | Commission.
| ||||||
13 | Class 8. A limited wine-manufacturer may make sales and | ||||||
14 | deliveries not to
exceed 40,000 gallons of wine per year to | ||||||
15 | distributors, and to
non-licensees in accordance with the | ||||||
16 | provisions of this Act.
| ||||||
17 | (a-1) A manufacturer which is licensed in this State to | ||||||
18 | make sales or
deliveries of alcoholic liquor and which enlists | ||||||
19 | agents, representatives, or
individuals acting on its behalf | ||||||
20 | who contact licensed retailers on a regular
and continual basis | ||||||
21 | in this State must register those agents, representatives,
or | ||||||
22 | persons acting on its behalf with the State Commission.
| ||||||
23 | Registration of agents, representatives, or persons acting | ||||||
24 | on behalf of a
manufacturer is fulfilled by submitting a form | ||||||
25 | to the Commission. The form
shall be developed by the | ||||||
26 | Commission and shall include the name and address of
the |
| |||||||
| |||||||
1 | applicant, the name and address of the manufacturer he or she | ||||||
2 | represents,
the territory or areas assigned to sell to or | ||||||
3 | discuss pricing terms of
alcoholic liquor, and any other | ||||||
4 | questions deemed appropriate and necessary.
All statements in | ||||||
5 | the forms required to be made by law or by rule shall be
deemed | ||||||
6 | material, and any person who knowingly misstates any material | ||||||
7 | fact under
oath in an application is guilty of a Class B | ||||||
8 | misdemeanor. Fraud,
misrepresentation, false statements, | ||||||
9 | misleading statements, evasions, or
suppression of material | ||||||
10 | facts in the securing of a registration are grounds for
| ||||||
11 | suspension or revocation of the registration.
| ||||||
12 | (b) A distributor's license shall allow the wholesale | ||||||
13 | purchase and storage
of alcoholic liquors and sale of alcoholic | ||||||
14 | liquors to licensees
in this State and to persons without the | ||||||
15 | State, as may be permitted by law.
| ||||||
16 | (c) An importing distributor's license may be issued to and | ||||||
17 | held by
those only who are duly licensed distributors, upon the | ||||||
18 | filing of an
application by a duly licensed distributor, with | ||||||
19 | the Commission and
the Commission shall, without the
payment of | ||||||
20 | any fee, immediately issue such importing distributor's
| ||||||
21 | license to the applicant, which shall allow the importation of | ||||||
22 | alcoholic
liquor by the licensee into this State from any point | ||||||
23 | in the United
States outside this State, and the purchase of | ||||||
24 | alcoholic liquor in
barrels, casks or other bulk containers and | ||||||
25 | the bottling of such
alcoholic liquors before resale thereof, | ||||||
26 | but all bottles or containers
so filled shall be sealed, |
| |||||||
| |||||||
1 | labeled, stamped and otherwise made to comply
with all | ||||||
2 | provisions, rules and regulations governing manufacturers in
| ||||||
3 | the preparation and bottling of alcoholic liquors. The | ||||||
4 | importing
distributor's license shall permit such licensee to | ||||||
5 | purchase alcoholic
liquor from Illinois licensed non-resident | ||||||
6 | dealers and foreign importers only.
| ||||||
7 | (d) A retailer's license shall allow the licensee to sell | ||||||
8 | and offer
for sale at retail, only in the premises specified in | ||||||
9 | the license,
alcoholic liquor for use or consumption, but not | ||||||
10 | for resale in any form . Nothing in this amendatory Act of the | ||||||
11 | 95th General Assembly shall deny, limit, remove, or restrict | ||||||
12 | the ability of a holder of a retailer's license to transfer, | ||||||
13 | deliver, or ship alcoholic liquor to the purchaser for use or | ||||||
14 | consumption subject to any applicable local law or ordinance. | ||||||
15 | Any :
Provided that any retail license issued to a manufacturer | ||||||
16 | shall only
permit the manufacturer to sell beer at retail on | ||||||
17 | the premises actually
occupied by the manufacturer. For the | ||||||
18 | purpose of further describing the type of business conducted at | ||||||
19 | a retail licensed premises, a retailer's licensee may be | ||||||
20 | designated by the State Commission as (i) an on premise | ||||||
21 | consumption retailer, (ii) an off premise sale retailer, or | ||||||
22 | (iii) a combined on premise consumption and off premise sale | ||||||
23 | retailer.
| ||||||
24 | Notwithstanding any other provision of this subsection | ||||||
25 | (d), a retail
licensee may sell alcoholic liquors to a special | ||||||
26 | event retailer licensee for
resale to the extent permitted |
| |||||||
| |||||||
1 | under subsection (e).
| ||||||
2 | (e) A special event retailer's license (not-for-profit) | ||||||
3 | shall permit the
licensee to purchase alcoholic liquors from an | ||||||
4 | Illinois licensed distributor
(unless the licensee purchases | ||||||
5 | less than $500 of alcoholic liquors for the
special event, in | ||||||
6 | which case the licensee may purchase the alcoholic liquors
from | ||||||
7 | a licensed retailer) and shall allow the licensee to sell and | ||||||
8 | offer for
sale, at retail, alcoholic liquors for use or | ||||||
9 | consumption, but not for resale
in any form and only at the | ||||||
10 | location and on the specific dates designated for
the special | ||||||
11 | event in the license. An applicant for a special event retailer
| ||||||
12 | license must
(i) furnish with the application: (A) a resale | ||||||
13 | number issued under Section
2c of the Retailers' Occupation Tax | ||||||
14 | Act or evidence that the applicant is
registered under Section | ||||||
15 | 2a of the Retailers' Occupation Tax Act, (B) a
current, valid | ||||||
16 | exemption identification
number issued under Section 1g of the | ||||||
17 | Retailers' Occupation Tax Act, and a
certification to the | ||||||
18 | Commission that the purchase of alcoholic liquors will be
a | ||||||
19 | tax-exempt purchase, or (C) a statement that the applicant is | ||||||
20 | not registered
under Section 2a of the Retailers' Occupation | ||||||
21 | Tax Act, does not hold a resale
number under Section 2c of the | ||||||
22 | Retailers' Occupation Tax Act, and does not
hold an exemption | ||||||
23 | number under Section 1g of the Retailers' Occupation Tax
Act, | ||||||
24 | in which event the Commission shall set forth on the special | ||||||
25 | event
retailer's license a statement to that effect; (ii) | ||||||
26 | submit with the application proof satisfactory to
the State |
| |||||||
| |||||||
1 | Commission that the applicant will provide dram shop liability
| ||||||
2 | insurance in the maximum limits; and (iii) show proof | ||||||
3 | satisfactory to the
State Commission that the applicant has | ||||||
4 | obtained local authority
approval.
| ||||||
5 | (f) A railroad license shall permit the licensee to import | ||||||
6 | alcoholic
liquors into this State from any point in the United | ||||||
7 | States outside this
State and to store such alcoholic liquors | ||||||
8 | in this State; to make wholesale
purchases of alcoholic liquors | ||||||
9 | directly from manufacturers, foreign
importers, distributors | ||||||
10 | and importing distributors from within or outside
this State; | ||||||
11 | and to store such alcoholic liquors in this State; provided
| ||||||
12 | that the above powers may be exercised only in connection with | ||||||
13 | the
importation, purchase or storage of alcoholic liquors to be | ||||||
14 | sold or
dispensed on a club, buffet, lounge or dining car | ||||||
15 | operated on an electric,
gas or steam railway in this State; | ||||||
16 | and provided further, that railroad
licensees exercising the | ||||||
17 | above powers shall be subject to all provisions of
Article VIII | ||||||
18 | of this Act as applied to importing distributors. A railroad
| ||||||
19 | license shall also permit the licensee to sell or dispense | ||||||
20 | alcoholic
liquors on any club, buffet, lounge or dining car | ||||||
21 | operated on an electric,
gas or steam railway regularly | ||||||
22 | operated by a common carrier in this State,
but shall not | ||||||
23 | permit the sale for resale of any alcoholic liquors to any
| ||||||
24 | licensee within this State. A license shall be obtained for | ||||||
25 | each car in which
such sales are made.
| ||||||
26 | (g) A boat license shall allow the sale of alcoholic liquor |
| |||||||
| |||||||
1 | in
individual drinks, on any passenger boat regularly operated | ||||||
2 | as a common
carrier on navigable waters in this State or on any | ||||||
3 | riverboat operated
under
the Riverboat Gambling Act, which boat | ||||||
4 | or riverboat maintains a public
dining room or restaurant | ||||||
5 | thereon.
| ||||||
6 | (h) A non-beverage user's license shall allow the licensee | ||||||
7 | to
purchase alcoholic liquor from a licensed manufacturer or | ||||||
8 | importing
distributor, without the imposition of any tax upon | ||||||
9 | the business of such
licensed manufacturer or importing | ||||||
10 | distributor as to such alcoholic
liquor to be used by such | ||||||
11 | licensee solely for the non-beverage purposes
set forth in | ||||||
12 | subsection (a) of Section 8-1 of this Act, and
such licenses | ||||||
13 | shall be divided and classified and shall permit the
purchase, | ||||||
14 | possession and use of limited and stated quantities of
| ||||||
15 | alcoholic liquor as follows:
| ||||||
16 | Class 1, not to exceed ......................... 500 gallons
| ||||||
17 | Class 2, not to exceed ....................... 1,000 gallons
| ||||||
18 | Class 3, not to exceed ....................... 5,000 gallons
| ||||||
19 | Class 4, not to exceed ...................... 10,000 gallons
| ||||||
20 | Class 5, not to exceed ....................... 50,000 gallons
| ||||||
21 | (i) A wine-maker's premises license shall allow a
licensee | ||||||
22 | that concurrently holds a first-class wine-maker's license to | ||||||
23 | sell
and offer for sale at retail in the premises specified in | ||||||
24 | such license
not more than 50,000 gallons of the first-class | ||||||
25 | wine-maker's wine that is
made at the first-class wine-maker's | ||||||
26 | licensed premises per year for use or
consumption, but not for |
| |||||||
| |||||||
1 | resale in any form. A wine-maker's premises
license shall allow | ||||||
2 | a licensee who concurrently holds a second-class
wine-maker's | ||||||
3 | license to sell and offer for sale at retail in the premises
| ||||||
4 | specified in such license up to 100,000 gallons of the
| ||||||
5 | second-class wine-maker's wine that is made at the second-class | ||||||
6 | wine-maker's
licensed premises per year
for use or consumption | ||||||
7 | but not for resale in any form. A wine-maker's premises license | ||||||
8 | shall allow a
licensee that concurrently holds a first-class | ||||||
9 | wine-maker's license or a second-class
wine-maker's license to | ||||||
10 | sell
and offer for sale at retail at the premises specified in | ||||||
11 | the wine-maker's premises license, for use or consumption but | ||||||
12 | not for resale in any form, any beer, wine, and spirits | ||||||
13 | purchased from a licensed distributor. Upon approval from the
| ||||||
14 | State Commission, a wine-maker's premises license
shall allow | ||||||
15 | the licensee to sell and offer for sale at (i) the wine-maker's
| ||||||
16 | licensed premises and (ii) at up to 2 additional locations for | ||||||
17 | use and
consumption and not for resale. Each location shall | ||||||
18 | require additional
licensing per location as specified in | ||||||
19 | Section 5-3 of this Act. A wine-maker's premises licensee shall
| ||||||
20 | secure liquor liability insurance coverage in an amount at
| ||||||
21 | least equal to the maximum liability amounts set forth in
| ||||||
22 | subsection (a) of Section 6-21 of this Act.
| ||||||
23 | (j) An airplane license shall permit the licensee to import
| ||||||
24 | alcoholic liquors into this State from any point in the United | ||||||
25 | States
outside this State and to store such alcoholic liquors | ||||||
26 | in this State; to
make wholesale purchases of alcoholic liquors |
| |||||||
| |||||||
1 | directly from
manufacturers, foreign importers, distributors | ||||||
2 | and importing
distributors from within or outside this State; | ||||||
3 | and to store such
alcoholic liquors in this State; provided | ||||||
4 | that the above powers may be
exercised only in connection with | ||||||
5 | the importation, purchase or storage
of alcoholic liquors to be | ||||||
6 | sold or dispensed on an airplane; and
provided further, that | ||||||
7 | airplane licensees exercising the above powers
shall be subject | ||||||
8 | to all provisions of Article VIII of this Act as
applied to | ||||||
9 | importing distributors. An airplane licensee shall also
permit | ||||||
10 | the sale or dispensing of alcoholic liquors on any passenger
| ||||||
11 | airplane regularly operated by a common carrier in this State, | ||||||
12 | but shall
not permit the sale for resale of any alcoholic | ||||||
13 | liquors to any licensee
within this State. A single airplane | ||||||
14 | license shall be required of an
airline company if liquor | ||||||
15 | service is provided on board aircraft in this
State. The annual | ||||||
16 | fee for such license shall be as determined in
Section 5-3.
| ||||||
17 | (k) A foreign importer's license shall permit such licensee | ||||||
18 | to purchase
alcoholic liquor from Illinois licensed | ||||||
19 | non-resident dealers only, and to
import alcoholic liquor other | ||||||
20 | than in bulk from any point outside the
United States and to | ||||||
21 | sell such alcoholic liquor to Illinois licensed
importing | ||||||
22 | distributors and to no one else in Illinois;
provided that the | ||||||
23 | foreign importer registers with the State Commission
every
| ||||||
24 | brand of
alcoholic liquor that it proposes to sell to Illinois | ||||||
25 | licensees during the
license period and
provided further that | ||||||
26 | the foreign importer complies with all of the provisions
of |
| |||||||
| |||||||
1 | Section
6-9 of this Act with respect to registration of such | ||||||
2 | Illinois licensees as may
be granted the
right to sell such | ||||||
3 | brands at wholesale.
| ||||||
4 | (l) (i) A broker's license shall be required of all persons
| ||||||
5 | who solicit
orders for, offer to sell or offer to supply | ||||||
6 | alcoholic liquor to
retailers in the State of Illinois, or who | ||||||
7 | offer to retailers to ship or
cause to be shipped or to make | ||||||
8 | contact with distillers, rectifiers,
brewers or manufacturers | ||||||
9 | or any other party within or without the State
of Illinois in | ||||||
10 | order that alcoholic liquors be shipped to a distributor,
| ||||||
11 | importing distributor or foreign importer, whether such | ||||||
12 | solicitation or
offer is consummated within or without the | ||||||
13 | State of Illinois.
| ||||||
14 | No holder of a retailer's license issued by the Illinois | ||||||
15 | Liquor
Control Commission shall purchase or receive any | ||||||
16 | alcoholic liquor, the
order for which was solicited or offered | ||||||
17 | for sale to such retailer by a
broker unless the broker is the | ||||||
18 | holder of a valid broker's license.
| ||||||
19 | The broker shall, upon the acceptance by a retailer of the | ||||||
20 | broker's
solicitation of an order or offer to sell or supply or | ||||||
21 | deliver or have
delivered alcoholic liquors, promptly forward | ||||||
22 | to the Illinois Liquor
Control Commission a notification of | ||||||
23 | said transaction in such form as
the Commission may by | ||||||
24 | regulations prescribe.
| ||||||
25 | (ii) A broker's license shall be required of
a person | ||||||
26 | within this State, other than a retail licensee,
who, for a fee |
| |||||||
| |||||||
1 | or commission, promotes, solicits, or accepts orders for
| ||||||
2 | alcoholic liquor, for use or consumption and not for
resale, to | ||||||
3 | be shipped from this State and delivered to residents outside | ||||||
4 | of
this State by an express company, common carrier, or | ||||||
5 | contract carrier.
This Section does not apply to any person who | ||||||
6 | promotes, solicits, or accepts
orders for wine as specifically | ||||||
7 | authorized in Section 6-29 of this Act.
| ||||||
8 | A broker's license under this subsection (l)
(1) shall not | ||||||
9 | entitle the holder to
buy or sell any
alcoholic liquors for his | ||||||
10 | own account or to take or deliver title to
such alcoholic | ||||||
11 | liquors.
| ||||||
12 | This subsection (l)
(1) shall not apply to distributors, | ||||||
13 | employees of
distributors, or employees of a manufacturer who | ||||||
14 | has registered the
trademark, brand or name of the alcoholic | ||||||
15 | liquor pursuant to Section 6-9
of this Act, and who regularly | ||||||
16 | sells such alcoholic liquor
in the State of Illinois only to | ||||||
17 | its registrants thereunder.
| ||||||
18 | Any agent, representative, or person subject to | ||||||
19 | registration pursuant to
subsection (a-1) of this Section shall | ||||||
20 | not be eligible to receive a broker's
license.
| ||||||
21 | (m) A non-resident dealer's license shall permit such | ||||||
22 | licensee to ship
into and warehouse alcoholic liquor into this | ||||||
23 | State from any point
outside of this State, and to sell such | ||||||
24 | alcoholic liquor to Illinois licensed
foreign importers and | ||||||
25 | importing distributors and to no one else in this State;
| ||||||
26 | provided that said non-resident dealer shall register with the |
| |||||||
| |||||||
1 | Illinois Liquor
Control Commission each and every brand of | ||||||
2 | alcoholic liquor which it proposes
to sell to Illinois | ||||||
3 | licensees during the license period; and further provided
that | ||||||
4 | it shall comply with all of the provisions of Section 6-9 | ||||||
5 | hereof with
respect to registration of such Illinois licensees | ||||||
6 | as may be granted the right
to sell such brands at wholesale.
| ||||||
7 | (n) A brew pub license shall allow the licensee to | ||||||
8 | manufacture beer only
on the premises specified in the license, | ||||||
9 | to make sales of the
beer manufactured on the premises to | ||||||
10 | importing distributors, distributors,
and to non-licensees for | ||||||
11 | use and consumption, to store the beer upon
the premises, and | ||||||
12 | to sell and offer for sale at retail from the licensed
| ||||||
13 | premises, provided that a brew pub licensee shall not sell for | ||||||
14 | off-premises
consumption more than 50,000 gallons per year.
| ||||||
15 | (o) A caterer retailer license shall allow the holder
to | ||||||
16 | serve alcoholic liquors as an incidental part of a food service | ||||||
17 | that serves
prepared meals which excludes the serving of snacks | ||||||
18 | as
the primary meal, either on or off-site whether licensed or | ||||||
19 | unlicensed.
| ||||||
20 | (p) An auction liquor license shall allow the licensee to | ||||||
21 | sell and offer
for sale at auction wine and spirits for use or | ||||||
22 | consumption, or for resale by
an Illinois liquor licensee in | ||||||
23 | accordance with provisions of this Act. An
auction liquor | ||||||
24 | license will be issued to a person and it will permit the
| ||||||
25 | auction liquor licensee to hold the auction anywhere in the | ||||||
26 | State. An auction
liquor license must be obtained for each |
| |||||||
| |||||||
1 | auction at least 14 days in advance of
the auction date.
| ||||||
2 | (q) A special use permit license shall allow an Illinois | ||||||
3 | licensed
retailer to transfer a portion of its alcoholic liquor | ||||||
4 | inventory from its
retail licensed premises to the premises | ||||||
5 | specified in the license hereby
created, and to sell or offer | ||||||
6 | for sale at retail, only in the premises
specified in the | ||||||
7 | license hereby created, the transferred alcoholic liquor for
| ||||||
8 | use or consumption, but not for resale in any form. A special | ||||||
9 | use permit
license may be granted for the following time | ||||||
10 | periods: one day or less; 2 or
more days to a maximum of 15 days | ||||||
11 | per location in any 12 month period. An
applicant for the | ||||||
12 | special use permit license must also submit with the
| ||||||
13 | application proof satisfactory to the State Commission that the | ||||||
14 | applicant will
provide dram shop liability insurance to the | ||||||
15 | maximum limits and have local
authority approval.
| ||||||
16 | (r) A winery shipper's license shall allow a person
with a | ||||||
17 | first-class or second-class wine manufacturer's
license, a | ||||||
18 | first-class or second-class wine-maker's license,
or a limited | ||||||
19 | wine manufacturer's license or who is licensed to
make wine | ||||||
20 | under the laws of another state to ship wine
made by that | ||||||
21 | licensee directly to a resident of this
State who is 21 years | ||||||
22 | of age or older for that resident's
personal use and not for | ||||||
23 | resale. Prior to receiving a
winery shipper's license, an | ||||||
24 | applicant for the license must
provide the Commission with a | ||||||
25 | true copy of its current
license in any state in which it is | ||||||
26 | licensed as a manufacturer
of wine. An applicant for a winery |
| |||||||
| |||||||
1 | shipper's license must
also complete an application form that | ||||||
2 | provides any other
information the Commission deems necessary. | ||||||
3 | The
application form shall include an acknowledgement | ||||||
4 | consenting
to the jurisdiction of the Commission, the Illinois
| ||||||
5 | Department of Revenue, and the courts of this State concerning
| ||||||
6 | the enforcement of this Act and any related laws, rules, and
| ||||||
7 | regulations, including authorizing the Department of Revenue
| ||||||
8 | and the Commission to conduct audits for the purpose of
| ||||||
9 | ensuring compliance with this amendatory Act. | ||||||
10 | A winery shipper licensee must pay to the Department
of | ||||||
11 | Revenue the State liquor gallonage tax under Section 8-1 for
| ||||||
12 | all wine that is sold by the licensee and shipped to a person
| ||||||
13 | in this State. For the purposes of Section 8-1, a winery
| ||||||
14 | shipper licensee shall be taxed in the same manner as a
| ||||||
15 | manufacturer of wine. A licensee who is not otherwise required | ||||||
16 | to register under the Retailers' Occupation Tax Act must
| ||||||
17 | register under the Use Tax Act to collect and remit use tax to
| ||||||
18 | The Department of Revenue for all gallons of wine that are sold
| ||||||
19 | by the licensee and shipped to persons in this State. If a
| ||||||
20 | licensee fails to remit the tax imposed under this Act in
| ||||||
21 | accordance with the provisions of Article VIII of this Act, the
| ||||||
22 | winery shipper's license shall be revoked in accordance
with | ||||||
23 | the provisions of Article VII of this Act. If a licensee
fails | ||||||
24 | to properly register and remit tax under the Use Tax Act
or the | ||||||
25 | Retailers' Occupation Tax Act for all wine that is sold
by the | ||||||
26 | winery shipper and shipped to persons in this
State, the winery |
| ||||||||||||||||||||||
| ||||||||||||||||||||||
1 | shipper's license shall be revoked in
accordance with the | |||||||||||||||||||||
2 | provisions of Article VII of this Act. | |||||||||||||||||||||
3 | A winery shipper licensee must collect, maintain, and
| |||||||||||||||||||||
4 | submit to the Commission on a semi-annual basis the
total | |||||||||||||||||||||
5 | number of cases per resident of wine shipped to residents
of | |||||||||||||||||||||
6 | this State.
A winery shipper licensed under this subsection (r)
| |||||||||||||||||||||
7 | must comply with the requirements of Section 6-29 of this | |||||||||||||||||||||
8 | amendatory Act.
| |||||||||||||||||||||
9 | (Source: P.A. 92-105, eff. 1-1-02; 92-378, eff. 8-16-01; | |||||||||||||||||||||
10 | 92-651, eff. 7-11-02; 92-672, eff. 7-16-02; 93-923, eff. | |||||||||||||||||||||
11 | 8-12-04; 93-1057, eff. 12-2-04; revised 12-6-04.)
| |||||||||||||||||||||
12 | (235 ILCS 5/5-3) (from Ch. 43, par. 118)
| |||||||||||||||||||||
13 | Sec. 5-3. License fees. Except as otherwise provided | |||||||||||||||||||||
14 | herein, at the time
application is made to the State Commission | |||||||||||||||||||||
15 | for a license of any class, the
applicant shall pay to the | |||||||||||||||||||||
16 | State Commission the fee hereinafter provided for
the kind of | |||||||||||||||||||||
17 | license applied for.
| |||||||||||||||||||||
18 | The fee for licenses issued by the State Commission shall | |||||||||||||||||||||
19 | be as follows:
| |||||||||||||||||||||
20 | For a manufacturer's license:
| |||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | Fees collected under this Section shall be paid into the
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | Dram Shop Fund. On and after July 1, 2003, of the funds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | received for a
retailer's license, in
addition to the
first | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | $175, an additional $75 shall be paid into the Dram Shop Fund, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 | and $250
shall be
paid into the General Revenue Fund. Beginning | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
26 | June 30, 1990 and on June 30
of each
subsequent year through |
| |||||||
| |||||||
1 | June 29, 2003, any balance over $5,000,000
remaining in the | ||||||
2 | Dram Shop Fund
shall be credited to State liquor licensees and | ||||||
3 | applied against their fees for
State liquor licenses for the | ||||||
4 | following year. The amount credited to each
licensee shall be a | ||||||
5 | proportion of the balance in the Dram Fund that is the
same as | ||||||
6 | the proportion of the license fee paid by the licensee under
| ||||||
7 | this Section for the period in which the balance was | ||||||
8 | accumulated to the
aggregate fees paid by all licensees during | ||||||
9 | that period.
| ||||||
10 | No fee shall be paid for licenses issued by the State | ||||||
11 | Commission to
the following non-beverage users:
| ||||||
12 | (a) Hospitals, sanitariums, or clinics when their use | ||||||
13 | of alcoholic
liquor is exclusively medicinal, mechanical | ||||||
14 | or scientific.
| ||||||
15 | (b) Universities, colleges of learning or schools when | ||||||
16 | their use of
alcoholic liquor is exclusively medicinal, | ||||||
17 | mechanical or scientific.
| ||||||
18 | (c) Laboratories when their use is exclusively for the | ||||||
19 | purpose of
scientific research.
| ||||||
20 | (Source: P.A. 92-378, eff.
8-16-01; 93-22, eff. 6-20-03 .)
| ||||||
21 | (235 ILCS 5/6-4) (from Ch. 43, par. 121)
| ||||||
22 | Sec. 6-4. (a) No person licensed by any licensing authority | ||||||
23 | as a
distiller, or a wine manufacturer, or any subsidiary or | ||||||
24 | affiliate
thereof, or any officer, associate, member, partner, | ||||||
25 | representative,
employee, agent or shareholder owning more |
| |||||||
| |||||||
1 | than 5% of the outstanding
shares of such person shall be | ||||||
2 | issued an importing distributor's or
distributor's license, | ||||||
3 | nor shall any person licensed by any licensing
authority as an | ||||||
4 | importing distributor, distributor or retailer, or any
| ||||||
5 | subsidiary or affiliate thereof, or any officer or associate, | ||||||
6 | member,
partner, representative, employee, agent or | ||||||
7 | shareholder owning more than
5% of the outstanding shares of | ||||||
8 | such person be issued a distiller's
license or a wine | ||||||
9 | manufacturer's license; and no person or persons
licensed as a | ||||||
10 | distiller by any licensing authority shall have any
interest, | ||||||
11 | directly or indirectly, with such distributor or importing
| ||||||
12 | distributor.
| ||||||
13 | However, an importing distributor or distributor, which on | ||||||
14 | January
1, 1985 is owned by a brewer, or any subsidiary or | ||||||
15 | affiliate thereof or any
officer, associate, member, partner, | ||||||
16 | representative, employee, agent or
shareholder owning more | ||||||
17 | than 5% of the outstanding shares of the importing
distributor | ||||||
18 | or distributor referred to in this paragraph, may own or
| ||||||
19 | acquire an ownership interest of more than 5% of the | ||||||
20 | outstanding shares of
a wine manufacturer and be issued a wine
| ||||||
21 | manufacturer's license by any licensing authority.
| ||||||
22 | (b) The foregoing provisions shall not apply to any person | ||||||
23 | licensed
by any licensing authority as a distiller or wine | ||||||
24 | manufacturer, or to
any subsidiary or affiliate of any | ||||||
25 | distiller or wine manufacturer who
shall have been heretofore | ||||||
26 | licensed by the State Commission as either an
importing |
| |||||||
| |||||||
1 | distributor or distributor during the annual licensing period
| ||||||
2 | expiring June 30, 1947, and shall actually have made sales | ||||||
3 | regularly to
retailers.
| ||||||
4 | (c) Provided, however, that in such instances where a | ||||||
5 | distributor's
or importing distributor's license has been | ||||||
6 | issued to any distiller or
wine manufacturer or to any | ||||||
7 | subsidiary or affiliate of any distiller or
wine manufacturer | ||||||
8 | who has, during the licensing period ending June 30,
1947, sold | ||||||
9 | or distributed as such licensed distributor or importing
| ||||||
10 | distributor alcoholic liquors and wines to retailers, such | ||||||
11 | distiller or
wine manufacturer or any subsidiary or affiliate | ||||||
12 | of any distiller or
wine manufacturer holding such | ||||||
13 | distributor's or importing distributor's
license may continue | ||||||
14 | to sell or distribute to retailers such alcoholic
liquors and | ||||||
15 | wines which are manufactured, distilled, processed or
marketed | ||||||
16 | by distillers and wine manufacturers whose products it sold or
| ||||||
17 | distributed to retailers during the whole or any part of its | ||||||
18 | licensing
periods; and such additional brands and additional | ||||||
19 | products may be added
to the line of such distributor or | ||||||
20 | importing distributor, provided, that
such brands and such | ||||||
21 | products were not sold or distributed by any
distributor or | ||||||
22 | importing distributor licensed by the State Commission
during | ||||||
23 | the licensing period ending June 30, 1947, but can not sell or
| ||||||
24 | distribute to retailers any other alcoholic liquors or wines.
| ||||||
25 | (d) It shall be unlawful for any distiller licensed | ||||||
26 | anywhere to have
any stock ownership or interest in any |
| |||||||
| |||||||
1 | distributor's or importing
distributor's license wherein any | ||||||
2 | other person has an interest therein
who is not a distiller and | ||||||
3 | does not own more than 5% of any stock in any
distillery. | ||||||
4 | Nothing herein contained shall apply to such distillers or
| ||||||
5 | their subsidiaries or affiliates, who had a distributor's or | ||||||
6 | importing
distributor's license during the licensing period | ||||||
7 | ending June 30, 1947,
which license was owned in whole by such | ||||||
8 | distiller, or subsidiaries or
affiliates of such distiller.
| ||||||
9 | (e) Any person having been licensed as a manufacturer shall | ||||||
10 | be
permitted to receive one retailer's license for the premises | ||||||
11 | in which he
actually conducts such business, permitting the | ||||||
12 | sale of beer only on
such premises, but no such person shall be | ||||||
13 | entitled to more than one
retailer's license in any event, and, | ||||||
14 | other than a manufacturer of beer
as stated above, no | ||||||
15 | manufacturer or distributor or importing
distributor, | ||||||
16 | excluding airplane licensees exercising powers provided in
| ||||||
17 | paragraph (i) of Section 5-1 of this Act, or any subsidiary or | ||||||
18 | affiliate
thereof, or any officer,
associate, member, partner, | ||||||
19 | representative, employee or agent, or
shareholder shall be | ||||||
20 | issued a retailer's license, nor shall any person
having a | ||||||
21 | retailer's license, excluding airplane licensees exercising | ||||||
22 | powers
provided in paragraph (i) of Section 5-1 of this
Act, or | ||||||
23 | any subsidiary or affiliate thereof, or
any officer, associate, | ||||||
24 | member, partner, representative or agent, or
shareholder be | ||||||
25 | issued a manufacturer's license, importing distributor's
| ||||||
26 | license.
|
| |||||||
| |||||||
1 | (f) However, the foregoing prohibitions against any person | ||||||
2 | licensed as
a distiller or wine manufacturer being issued a | ||||||
3 | retailer's license shall not apply:
| ||||||
4 | (i) to any hotel, motel or restaurant whose principal | ||||||
5 | business is not
the sale of alcoholic liquors if said | ||||||
6 | retailer's sales of any alcoholic
liquors manufactured, sold, | ||||||
7 | distributed or controlled, directly or
indirectly, by any | ||||||
8 | affiliate, subsidiary, officer, associate, member,
partner, | ||||||
9 | representative, employee, agent or shareholder owning more | ||||||
10 | than 5%
of the outstanding shares of such person does not | ||||||
11 | exceed
10% of the total alcoholic liquor sales of said retail | ||||||
12 | licensee; and
| ||||||
13 | (ii) where the Commission determines, having considered | ||||||
14 | the public
welfare, the economic impact upon the State and the | ||||||
15 | entirety of the facts
and circumstances involved, that the | ||||||
16 | purpose and intent of this Section
would not be violated by | ||||||
17 | granting an exemption.
| ||||||
18 | (g) Notwithstanding any of the foregoing prohibitions, a | ||||||
19 | limited wine
manufacturer may sell at retail at its | ||||||
20 | manufacturing site for on or off
premises consumption and may | ||||||
21 | sell to distributors. A limited wine manufacturer licensee
| ||||||
22 | shall secure liquor liability insurance coverage in an amount
| ||||||
23 | at least equal to the maximum liability amounts set forth in
| ||||||
24 | subsection (a) of Section 6-21 of this Act.
| ||||||
25 | (Source: P.A. 86-858.)
|
| |||||||
| |||||||
1 | (235 ILCS 5/6-29) (from Ch. 43, par. 144e)
| ||||||
2 | Sec. 6-29. Winery shipper's license.
Interstate reciprocal | ||||||
3 | wine shipments.
| ||||||
4 | (a) The General Assembly declares that the following is | ||||||
5 | the
intent of this Section: | ||||||
6 | (1) To authorize direct shipment of wine by an
| ||||||
7 | out-of-state maker of wine on the same basis permitted an
| ||||||
8 | in-state maker of wine pursuant to the authority of the | ||||||
9 | State
under the provisions of Section 2 of the Twenty-First
| ||||||
10 | Amendment to the United States Constitution and in
| ||||||
11 | conformance with the United States Supreme Court decision
| ||||||
12 | decided on May 16, 2005 in Granholm v. Heald. | ||||||
13 | (2) To reaffirm that the General Assembly's findings
| ||||||
14 | and declarations that selling alcoholic liquor through
| ||||||
15 | various direct marketing means such as catalogs,
| ||||||
16 | newspapers, mailings, and the Internet directly to
| ||||||
17 | consumers of this State poses a serious threat to the
| ||||||
18 | State's efforts to further temperance and prevent youth
| ||||||
19 | from accessing alcoholic liquor and the expansion of youth
| ||||||
20 | access to additional types of alcoholic liquors. | ||||||
21 | (3) To maintain the State's broad powers granted by
| ||||||
22 | Section 2 of the Twenty-First Amendment to the United
| ||||||
23 | States Constitution to control the importation or sale of
| ||||||
24 | alcoholic liquor and its right to structure its alcoholic
| ||||||
25 | liquor distribution system. | ||||||
26 | (4) To ensure that the General Assembly, by authorizing
|
| |||||||
| |||||||
1 | limited direct shipment of wine to meet the directives of
| ||||||
2 | the United States Supreme Court, does not intend to impair
| ||||||
3 | or modify the State's distribution of wine through
| ||||||
4 | distributors or importing distributors, but only to permit
| ||||||
5 | limited shipment of wine for personal use. | ||||||
6 | (5) To provide that, in the event that a court of
| ||||||
7 | competent jurisdiction declares or finds that this
| ||||||
8 | Section, which is enacted to conform Illinois law to the
| ||||||
9 | United States Supreme Court decision, is invalid or
| ||||||
10 | unconstitutional, the Illinois General Assembly at its
| ||||||
11 | earliest general session shall conduct hearings and study
| ||||||
12 | methods to conform to any directive or order of the court | ||||||
13 | consistent with the temperance and
revenue collection | ||||||
14 | purposes of this Act. | ||||||
15 | (b) Notwithstanding any other provision of law, a
wine | ||||||
16 | shipper licensee may ship, for personal use and not for
resale, | ||||||
17 | not more than 12 cases of wine per year to any resident
of this | ||||||
18 | State who is 21 years of age or older. | ||||||
19 | (b-3) Notwithstanding any other provision of law, sale and
| ||||||
20 | shipment by a winery shipper licensee pursuant to this
Section | ||||||
21 | shall be deemed to constitute a sale in this State. | ||||||
22 | (b-5) The shipping container of any wine shipped under this
| ||||||
23 | Section shall be clearly labeled with the following words:
| ||||||
24 | "CONTAINS ALCOHOL. SIGNATURE OF A PERSON 21 YEARS OF AGE OR
| ||||||
25 | OLDER REQUIRED FOR DELIVERY. PROOF OF AGE AND IDENTITY MUST BE
| ||||||
26 | SHOWN BEFORE DELIVERY.". This warning must be prominently
|
| |||||||
| |||||||
1 | displayed on the packaging. A licensee shall require the
| ||||||
2 | transporter or common carrier that delivers the wine to obtain
| ||||||
3 | the signature of a person 21 years of age or older at the
| ||||||
4 | delivery address at the time of delivery. At the expense of the
| ||||||
5 | licensee, the licensee shall receive a delivery confirmation
| ||||||
6 | from the express company, common carrier, or contract carrier
| ||||||
7 | indicating the location of the delivery, time of delivery, and
| ||||||
8 | the name and signature of the individual 21 years of age or
| ||||||
9 | older who accepts delivery. The Commission shall design
and | ||||||
10 | create a label or approve a label that must be affixed to
the | ||||||
11 | shipping container by the licensee.
| ||||||
12 | (a) Notwithstanding
any other provision of law, an adult | ||||||
13 | resident or holder of an alcoholic
beverage license in a state | ||||||
14 | which affords Illinois licensees or adult
residents an equal | ||||||
15 | reciprocal shipping privilege may ship, for personal use
and | ||||||
16 | not for resale, not more than 2 cases of wine (each case | ||||||
17 | containing not
more than 9 liters) per year to any adult | ||||||
18 | resident of this State. Delivery
of a shipment pursuant to this | ||||||
19 | Section shall not be deemed to constitute a
sale in this State.
| ||||||
20 | (b) The shipping container of any wine sent into or out of | ||||||
21 | this State
under this Section shall be clearly labeled to | ||||||
22 | indicate that the package
cannot be delivered to a person under | ||||||
23 | the age of 21 years.
| ||||||
24 | (c) No broker within this State shall solicit consumers to | ||||||
25 | engage in
direct
interstate reciprocal wine shipments under | ||||||
26 | this Section. No shipper
located outside this State may |
| |||||||
| |||||||
1 | advertise such interstate reciprocal wine
shipments in this | ||||||
2 | State.
| ||||||
3 | (d) It is not the intent of this Section to impair the | ||||||
4 | distribution of
wine through distributors or importing | ||||||
5 | distributors, but only to permit
shipments of wine for personal | ||||||
6 | use.
| ||||||
7 | (Source: P.A. 86-1483.)
| ||||||
8 | (235 ILCS 5/6-29.1)
| ||||||
9 | Sec. 6-29.1. Direct shipments of alcoholic liquor. | ||||||
10 | (a) The General Assembly makes the following findings: | ||||||
11 | (1) The General Assembly of Illinois, having reviewed
| ||||||
12 | this Act in light of the United
States Supreme Court's 2005 | ||||||
13 | decision in Granholm v. Heald,
has determined to conform | ||||||
14 | that law to the constitutional
principles enunciated by the | ||||||
15 | Court in a manner that best
preserves the temperance, | ||||||
16 | revenue, and orderly
distribution values of this Act. | ||||||
17 | (2) Minimizing automobile accidents and fatalities,
| ||||||
18 | domestic violence, health problems, loss of productivity,
| ||||||
19 | unemployment, and other social problems associated with
| ||||||
20 | dependency and improvident, use of alcoholic beverages
| ||||||
21 | remains the policy of Illinois. | ||||||
22 | (3) To the maximum extent constitutionally feasible,
| ||||||
23 | Illinois desires to collect sufficient revenue from excise
| ||||||
24 | and use taxes on alcoholic beverages for the purpose of
| ||||||
25 | responding to such social problems. |
| |||||||
| |||||||
1 | (4) Combined with family education and individual
| ||||||
2 | discipline, retail validation of age, and assessment of the
| ||||||
3 | capacity of the consumer remains the best pre-sale social
| ||||||
4 | protection against the problems associated with the abuse
| ||||||
5 | of alcoholic liquor. | ||||||
6 | (5) Therefore, the paramount purpose of this | ||||||
7 | amendatory Act is to
continue to carefully limit direct | ||||||
8 | shipment sales of wine produced by makers of wine
and to | ||||||
9 | continue to prohibit such direct shipment sales for
spirits | ||||||
10 | and beer. | ||||||
11 | For these reasons, the Commission shall establish
a system | ||||||
12 | to notify the out-of-state trade of this prohibition
and to | ||||||
13 | detect violations. The Commission shall request
the Attorney | ||||||
14 | General to extradite any offender.
| ||||||
15 | (b) Pursuant to the
Twenty-First Amendment of the United | ||||||
16 | States Constitution allowing states to
regulate the | ||||||
17 | distribution and sale of alcoholic liquor and pursuant to the
| ||||||
18 | federal Webb-Kenyon Act declaring that alcoholic liquor | ||||||
19 | shipped in interstate
commerce must comply with state laws, the | ||||||
20 | General Assembly hereby finds and
declares that selling | ||||||
21 | alcoholic liquor from a point outside this State
through | ||||||
22 | various direct marketing means, such as catalogs,
newspapers, | ||||||
23 | mailers, and the Internet,
directly to residents of this State | ||||||
24 | poses a serious threat
to the State's efforts to prevent youths | ||||||
25 | from accessing alcoholic liquor;
to State revenue collections; | ||||||
26 | and to the economy of this State.
|
| |||||||
| |||||||
1 | Any person manufacturing, distributing, or selling
| ||||||
2 | alcoholic liquor who knowingly ships or transports or causes | ||||||
3 | the shipping or
transportation of any alcoholic liquor from a | ||||||
4 | point outside this State to a
person in this State who does not | ||||||
5 | hold a manufacturer's, distributor's,
importing distributor's, | ||||||
6 | or non-resident dealer's license issued by the Liquor
Control | ||||||
7 | Commission, other than a shipment of sacramental wine to a bona | ||||||
8 | fide
religious organization, a shipment authorized by Section | ||||||
9 | 6-29 , subparagraph (17) of Section 3-12 , or any other
shipment | ||||||
10 | authorized by this Act, is in violation of this Act.
| ||||||
11 | The Commission, upon determining, after investigation, | ||||||
12 | that a person
has violated this Section, shall give notice to | ||||||
13 | the person by certified mail to
cease and desist all shipments | ||||||
14 | of
alcoholic liquor into this State and to withdraw from this | ||||||
15 | State within 5
working days after receipt of the notice all | ||||||
16 | shipments of alcoholic liquor then
in transit.
| ||||||
17 | Whenever the Commission has reason to believe that a person
| ||||||
18 | has failed to comply with the Commission notice under this | ||||||
19 | Section, it shall
notify the Department of Revenue and file a | ||||||
20 | complaint with the State's Attorney
of the county where the | ||||||
21 | alcoholic liquor was delivered or with appropriate
law | ||||||
22 | enforcement officials.
| ||||||
23 | Failure to comply with the notice issued by the Commission | ||||||
24 | under this Section
constitutes a
business offense for which the | ||||||
25 | person shall be fined not more than $1,000 for
a first offense, | ||||||
26 | not more than $5,000 for a second offense, and not more than
|
| |||||||
| |||||||
1 | $10,000 for a third or
subsequent offense. Each shipment of | ||||||
2 | alcoholic liquor delivered in
violation of the cease and desist | ||||||
3 | notice shall constitute a separate offense.
| ||||||
4 | (Source: P.A. 90-739, eff. 8-13-98.)
| ||||||
5 | Section 90. Severability. The General Assembly recognizes | ||||||
6 | that courts established pursuant to the Constitution of the | ||||||
7 | United States and the Constitution of the State of Illinois | ||||||
8 | construe statutory provisions dealing with judicial | ||||||
9 | interpretation, severability, and partial invalidity by | ||||||
10 | determining whether the legislative intent was to enforce the | ||||||
11 | remainder of the law enacted in the event of a judicial | ||||||
12 | determination of partial invalidity. For the purpose of | ||||||
13 | explaining such intent, if any provision, application, | ||||||
14 | exemption, exception, or authorization of this amendatory Act, | ||||||
15 | the Retailer's Occupation Tax Act, Section 3-7 of the Uniform | ||||||
16 | Penalty and Interest Act, or the Liquor Control Act of 1934 is | ||||||
17 | held invalid, then all other constitutional provisions, | ||||||
18 | exemptions, exceptions, and authorizations of this amendatory | ||||||
19 | Act are severable and shall be given effect.".
|