102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4069

 

Introduced 4/23/2021, by Rep. Charles Meier

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/5-1  from Ch. 43, par. 115
235 ILCS 5/6-9.2 new

    Amends the Liquor Control Act of 1934. Provides that if an on-premises retail licensee's stock of a certain type of alcoholic liquor product is exhausted, that product is a spirit, and the delivery of that product is not within the distributor's delivery schedule, the on-premises retail licensee may make emergency purchases of not more than 6 liters of that type of product for resale from an off-premises retail licensee per month. Provides that the on-premises retail licensee shall pay an annual registration fee of $25 to the State Commission, which shall be a waiver of any penalty, fine, or fee that would otherwise be incurred if a retail licensee purchased alcoholic liquor products from another retail licensee. Provides recordkeeping requirements. Makes a conforming change.


LRB102 18182 RPS 25746 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4069LRB102 18182 RPS 25746 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Section 5-1 and by adding Section 6-9.2 as follows:
 
6    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
7    Sec. 5-1. Licenses issued by the Illinois Liquor Control
8Commission shall be of the following classes:
9    (a) Manufacturer's license - Class 1. Distiller, Class 2.
10Rectifier, Class 3. Brewer, Class 4. First Class Wine
11Manufacturer, Class 5. Second Class Wine Manufacturer, Class
126. First Class Winemaker, Class 7. Second Class Winemaker,
13Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
14Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
15Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
16    (b) Distributor's license,
17    (c) Importing Distributor's license,
18    (d) Retailer's license,
19    (e) Special Event Retailer's license (not-for-profit),
20    (f) Railroad license,
21    (g) Boat license,
22    (h) Non-Beverage User's license,
23    (i) Wine-maker's premises license,

 

 

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

 

 

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

 

 

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1per year, and the storage and sale of such wine to distributors
2in this State and to persons without the State, as may be
3permitted by law. A person who, prior to June 1, 2008 (the
4effective date of Public Act 95-634), is a holder of a
5second-class wine-maker's license and annually produces more
6than 25,000 gallons of its own wine and who distributes its
7wine to licensed retailers shall cease this practice on or
8before July 1, 2008 in compliance with Public Act 95-634.
9    Class 8. A limited wine-manufacturer may make sales and
10deliveries not to exceed 40,000 gallons of wine per year to
11distributors, and to non-licensees in accordance with the
12provisions of this Act.
13    Class 9. A craft distiller license, which may only be held
14by a class 1 craft distiller licensee or class 2 craft
15distiller licensee but not held by both a class 1 craft
16distiller licensee and a class 2 craft distiller licensee,
17shall grant all rights conveyed by either: (i) a class 1 craft
18distiller license if the craft distiller holds a class 1 craft
19distiller license; or (ii) a class 2 craft distiller licensee
20if the craft distiller holds a class 2 craft distiller
21license.
22    Class 10. A class 1 craft distiller license, which may
23only be issued to a licensed craft distiller or licensed
24non-resident dealer, shall allow the manufacture of up to
2550,000 gallons of spirits per year provided that the class 1
26craft distiller licensee does not manufacture more than a

 

 

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1combined 50,000 gallons of spirits per year and is not a member
2of or affiliated with, directly or indirectly, a manufacturer
3that produces more than 50,000 gallons of spirits per year or
4any other alcoholic liquor. A class 1 craft distiller licensee
5may make sales and deliveries to importing distributors and
6distributors and to retail licensees in accordance with the
7conditions set forth in paragraph (19) of subsection (a) of
8Section 3-12 of this Act. However, the aggregate amount of
9spirits sold to non-licensees and sold or delivered to retail
10licensees may not exceed 5,000 gallons per year.
11    A class 1 craft distiller licensee may sell up to 5,000
12gallons of such spirits to non-licensees to the extent
13permitted by any exemption approved by the State Commission
14pursuant to Section 6-4 of this Act. A class 1 craft distiller
15license holder may store such spirits at a non-contiguous
16licensed location, but at no time shall a class 1 craft
17distiller license holder directly or indirectly produce in the
18aggregate more than 50,000 gallons of spirits per year.
19    A class 1 craft distiller licensee may hold more than one
20class 1 craft distiller's license. However, a class 1 craft
21distiller that holds more than one class 1 craft distiller
22license shall not manufacture, in the aggregate, more than
2350,000 gallons of spirits by distillation per year and shall
24not sell, in the aggregate, more than 5,000 gallons of such
25spirits to non-licensees in accordance with an exemption
26approved by the State Commission pursuant to Section 6-4 of

 

 

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1this Act.
2    Class 11. A class 2 craft distiller license, which may
3only be issued to a licensed craft distiller or licensed
4non-resident dealer, shall allow the manufacture of up to
5100,000 gallons of spirits per year provided that the class 2
6craft distiller licensee does not manufacture more than a
7combined 100,000 gallons of spirits per year and is not a
8member of or affiliated with, directly or indirectly, a
9manufacturer that produces more than 100,000 gallons of
10spirits per year or any other alcoholic liquor. A class 2 craft
11distiller licensee may make sales and deliveries to importing
12distributors and distributors, but shall not make sales or
13deliveries to any other licensee. If the State Commission
14provides prior approval, a class 2 craft distiller licensee
15may annually transfer up to 100,000 gallons of spirits
16manufactured by that class 2 craft distiller licensee to the
17premises of a licensed class 2 craft distiller wholly owned
18and operated by the same licensee. A class 2 craft distiller
19may transfer spirits to a distilling pub wholly owned and
20operated by the class 2 craft distiller subject to the
21following limitations and restrictions: (i) the transfer shall
22not annually exceed more than 5,000 gallons; (ii) the annual
23amount transferred shall reduce the distilling pub's annual
24permitted production limit; (iii) all spirits transferred
25shall be subject to Article VIII of this Act; (iv) a written
26record shall be maintained by the distiller and distilling pub

 

 

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1specifying the amount, date of delivery, and receipt of the
2product by the distilling pub; and (v) the distilling pub
3shall be located no farther than 80 miles from the class 2
4craft distiller's licensed location.
5    A class 2 craft distiller shall, prior to transferring
6spirits to a distilling pub wholly owned by the class 2 craft
7distiller, furnish a written notice to the State Commission of
8intent to transfer spirits setting forth the name and address
9of the distilling pub and shall annually submit to the State
10Commission a verified report identifying the total gallons of
11spirits transferred to the distilling pub wholly owned by the
12class 2 craft distiller.
13    A class 2 craft distiller license holder may store such
14spirits at a non-contiguous licensed location, but at no time
15shall a class 2 craft distiller license holder directly or
16indirectly produce in the aggregate more than 100,000 gallons
17of spirits per year.
18    Class 12. A class 1 brewer license, which may only be
19issued to a licensed brewer or licensed non-resident dealer,
20shall allow the manufacture of up to 930,000 gallons of beer
21per year provided that the class 1 brewer licensee does not
22manufacture more than a combined 930,000 gallons of beer per
23year and is not a member of or affiliated with, directly or
24indirectly, a manufacturer that produces more than 930,000
25gallons of beer per year or any other alcoholic liquor. A class
261 brewer licensee may make sales and deliveries to importing

 

 

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1distributors and distributors and to retail licensees in
2accordance with the conditions set forth in paragraph (18) of
3subsection (a) of Section 3-12 of this Act. If the State
4Commission provides prior approval, a class 1 brewer may
5annually transfer up to 930,000 gallons of beer manufactured
6by that class 1 brewer to the premises of a licensed class 1
7brewer wholly owned and operated by the same licensee.
8    Class 13. A class 2 brewer license, which may only be
9issued to a licensed brewer or licensed non-resident dealer,
10shall allow the manufacture of up to 3,720,000 gallons of beer
11per year provided that the class 2 brewer licensee does not
12manufacture more than a combined 3,720,000 gallons of beer per
13year and is not a member of or affiliated with, directly or
14indirectly, a manufacturer that produces more than 3,720,000
15gallons of beer per year or any other alcoholic liquor. A class
162 brewer licensee may make sales and deliveries to importing
17distributors and distributors, but shall not make sales or
18deliveries to any other licensee. If the State Commission
19provides prior approval, a class 2 brewer licensee may
20annually transfer up to 3,720,000 gallons of beer manufactured
21by that class 2 brewer licensee to the premises of a licensed
22class 2 brewer wholly owned and operated by the same licensee.
23    A class 2 brewer may transfer beer to a brew pub wholly
24owned and operated by the class 2 brewer subject to the
25following limitations and restrictions: (i) the transfer shall
26not annually exceed more than 31,000 gallons; (ii) the annual

 

 

HB4069- 9 -LRB102 18182 RPS 25746 b

1amount transferred shall reduce the brew pub's annual
2permitted production limit; (iii) all beer transferred shall
3be subject to Article VIII of this Act; (iv) a written record
4shall be maintained by the brewer and brew pub specifying the
5amount, date of delivery, and receipt of the product by the
6brew pub; and (v) the brew pub shall be located no farther than
780 miles from the class 2 brewer's licensed location.
8    A class 2 brewer shall, prior to transferring beer to a
9brew pub wholly owned by the class 2 brewer, furnish a written
10notice to the State Commission of intent to transfer beer
11setting forth the name and address of the brew pub and shall
12annually submit to the State Commission a verified report
13identifying the total gallons of beer transferred to the brew
14pub wholly owned by the class 2 brewer.
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
20basis in this State must register those agents,
21representatives, or persons acting on its behalf with the
22State Commission.
23    Registration of agents, representatives, or persons acting
24on behalf of a manufacturer is fulfilled by submitting a form
25to the Commission. The form shall be developed by the
26Commission and shall include the name and address of the

 

 

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1applicant, the name and address of the manufacturer he or she
2represents, the territory or areas assigned to sell to or
3discuss pricing terms of alcoholic liquor, and any other
4questions deemed appropriate and necessary. All statements in
5the forms required to be made by law or by rule shall be deemed
6material, and any person who knowingly misstates any material
7fact under oath in an application is guilty of a Class B
8misdemeanor. Fraud, misrepresentation, false statements,
9misleading statements, evasions, or suppression of material
10facts in the securing of a registration are grounds for
11suspension or revocation of the registration. The State
12Commission shall post a list of registered agents on the
13Commission's website.
14    (b) A distributor's license shall allow (i) the wholesale
15purchase and storage of alcoholic liquors and sale of
16alcoholic liquors to licensees in this State and to persons
17without the State, as may be permitted by law; (ii) the sale of
18beer, cider, or both beer and cider to brewers, class 1
19brewers, and class 2 brewers that, pursuant to subsection (e)
20of Section 6-4 of this Act, sell beer, cider, or both beer and
21cider to non-licensees at their breweries; and (iii) the sale
22of vermouth to class 1 craft distillers and class 2 craft
23distillers that, pursuant to subsection (e) of Section 6-4 of
24this Act, sell spirits, vermouth, or both spirits and vermouth
25to non-licensees at their distilleries. No person licensed as
26a distributor shall be granted a non-resident dealer's

 

 

HB4069- 11 -LRB102 18182 RPS 25746 b

1license.
2    (c) An importing distributor's license may be issued to
3and held by those only who are duly licensed distributors,
4upon the filing of an application by a duly licensed
5distributor, with the Commission and the Commission shall,
6without the payment of any fee, immediately issue such
7importing distributor's license to the applicant, which shall
8allow the importation of alcoholic liquor by the licensee into
9this State from any point in the United States outside this
10State, and the purchase of alcoholic liquor in barrels, casks
11or other bulk containers and the bottling of such alcoholic
12liquors before resale thereof, but all bottles or containers
13so filled shall be sealed, labeled, stamped and otherwise made
14to comply with all provisions, rules and regulations governing
15manufacturers in the preparation and bottling of alcoholic
16liquors. The importing distributor's license shall permit such
17licensee to purchase alcoholic liquor from Illinois licensed
18non-resident dealers and foreign importers only. No person
19licensed as an importing distributor shall be granted a
20non-resident dealer's license.
21    (d) A retailer's license shall allow the licensee to sell
22and offer for sale at retail, only in the premises specified in
23the license, alcoholic liquor for use or consumption, but not
24for resale in any form except as provided in Section 6-9.2.
25Nothing in Public Act 95-634 shall deny, limit, remove, or
26restrict the ability of a holder of a retailer's license to

 

 

HB4069- 12 -LRB102 18182 RPS 25746 b

1transfer, deliver, or ship alcoholic liquor to the purchaser
2for use or consumption subject to any applicable local law or
3ordinance. Any retail license issued to a manufacturer shall
4only permit the manufacturer to sell beer at retail on the
5premises actually occupied by the manufacturer. For the
6purpose of further describing the type of business conducted
7at a retail licensed premises, a retailer's licensee may be
8designated by the State Commission as (i) an on premise
9consumption retailer, (ii) an off premise sale retailer, or
10(iii) a combined on premise consumption and off premise sale
11retailer.
12    Notwithstanding any other provision of this subsection
13(d), a retail licensee may sell alcoholic liquors to a special
14event retailer licensee for resale to the extent permitted
15under subsection (e).
16    (e) A special event retailer's license (not-for-profit)
17shall permit the licensee to purchase alcoholic liquors from
18an Illinois licensed distributor (unless the licensee
19purchases less than $500 of alcoholic liquors for the special
20event, in which case the licensee may purchase the alcoholic
21liquors from a licensed retailer) and shall allow the licensee
22to sell and offer for sale, at retail, alcoholic liquors for
23use or consumption, but not for resale in any form and only at
24the location and on the specific dates designated for the
25special event in the license. An applicant for a special event
26retailer license must (i) furnish with the application: (A) a

 

 

HB4069- 13 -LRB102 18182 RPS 25746 b

1resale number issued under Section 2c of the Retailers'
2Occupation Tax Act or evidence that the applicant is
3registered under Section 2a of the Retailers' Occupation Tax
4Act, (B) a current, valid exemption identification number
5issued under Section 1g of the Retailers' Occupation Tax Act,
6and a certification to the Commission that the purchase of
7alcoholic liquors will be a tax-exempt purchase, or (C) a
8statement that the applicant is not registered under Section
92a of the Retailers' Occupation Tax Act, does not hold a resale
10number under Section 2c of the Retailers' Occupation Tax Act,
11and does not hold an exemption number under Section 1g of the
12Retailers' Occupation Tax Act, in which event the Commission
13shall set forth on the special event retailer's license a
14statement to that effect; (ii) submit with the application
15proof satisfactory to the State Commission that the applicant
16will provide dram shop liability insurance in the maximum
17limits; and (iii) show proof satisfactory to the State
18Commission that the applicant has obtained local authority
19approval.
20    Nothing in this Act prohibits an Illinois licensed
21distributor from offering credit or a refund for unused,
22salable alcoholic liquors to a holder of a special event
23retailer's license or the special event retailer's licensee
24from accepting the credit or refund of alcoholic liquors at
25the conclusion of the event specified in the license.
26    (f) A railroad license shall permit the licensee to import

 

 

HB4069- 14 -LRB102 18182 RPS 25746 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
4liquors directly from manufacturers, foreign importers,
5distributors and importing distributors from within or outside
6this State; and to store such alcoholic liquors in this State;
7provided that the above powers may be exercised only in
8connection with the importation, purchase or storage of
9alcoholic liquors to be sold or dispensed on a club, buffet,
10lounge or dining car operated on an electric, gas or steam
11railway in this State; and provided further, that railroad
12licensees exercising the above powers shall be subject to all
13provisions of Article VIII of this Act as applied to importing
14distributors. A railroad license shall also permit the
15licensee to sell or dispense alcoholic liquors on any club,
16buffet, lounge or dining car operated on an electric, gas or
17steam railway regularly operated by a common carrier in this
18State, but shall not permit the sale for resale of any
19alcoholic liquors to any licensee within this State. A license
20shall be obtained for each car in which such sales are made.
21    (g) A boat license shall allow the sale of alcoholic
22liquor in individual drinks, on any passenger boat regularly
23operated as a common carrier on navigable waters in this State
24or on any riverboat operated under the Illinois Gambling Act,
25which boat or riverboat maintains a public dining room or
26restaurant thereon.

 

 

HB4069- 15 -LRB102 18182 RPS 25746 b

1    (h) A non-beverage user's license shall allow the licensee
2to purchase alcoholic liquor from a licensed manufacturer or
3importing distributor, without the imposition of any tax upon
4the business of such licensed manufacturer or importing
5distributor as to such alcoholic liquor to be used by such
6licensee solely for the non-beverage purposes set forth in
7subsection (a) of Section 8-1 of this Act, and such licenses
8shall be divided and classified and shall permit the purchase,
9possession and use of limited and stated quantities of
10alcoholic liquor as follows:
11Class 1, not to exceed ......................... 500 gallons
12Class 2, not to exceed ....................... 1,000 gallons
13Class 3, not to exceed ....................... 5,000 gallons
14Class 4, not to exceed ...................... 10,000 gallons
15Class 5, not to exceed ....................... 50,000 gallons
16    (i) A wine-maker's premises license shall allow a licensee
17that concurrently holds a first-class wine-maker's license to
18sell and offer for sale at retail in the premises specified in
19such license not more than 50,000 gallons of the first-class
20wine-maker's wine that is made at the first-class wine-maker's
21licensed premises per year for use or consumption, but not for
22resale in any form. A wine-maker's premises license shall
23allow a licensee who concurrently holds a second-class
24wine-maker's license to sell and offer for sale at retail in
25the premises specified in such license up to 100,000 gallons
26of the second-class wine-maker's wine that is made at the

 

 

HB4069- 16 -LRB102 18182 RPS 25746 b

1second-class wine-maker's licensed premises per year for use
2or consumption but not for resale in any form. A wine-maker's
3premises license shall allow a licensee that concurrently
4holds a first-class wine-maker's license or a second-class
5wine-maker's license to sell and offer for sale at retail at
6the premises specified in the wine-maker's premises license,
7for use or consumption but not for resale in any form, any
8beer, wine, and spirits purchased from a licensed distributor.
9Upon approval from the State Commission, a wine-maker's
10premises license shall allow the licensee to sell and offer
11for sale at (i) the wine-maker's licensed premises and (ii) at
12up to 2 additional locations for use and consumption and not
13for resale. Each location shall require additional licensing
14per location as specified in Section 5-3 of this Act. A
15wine-maker's premises licensee shall secure liquor liability
16insurance coverage in an amount at least equal to the maximum
17liability amounts set forth in subsection (a) of Section 6-21
18of this Act.
19    (j) An airplane license shall permit the licensee to
20import alcoholic liquors into this State from any point in the
21United States outside this State and to store such alcoholic
22liquors in this State; to make wholesale purchases of
23alcoholic liquors directly from manufacturers, foreign
24importers, distributors and importing distributors from within
25or outside this State; and to store such alcoholic liquors in
26this State; provided that the above powers may be exercised

 

 

HB4069- 17 -LRB102 18182 RPS 25746 b

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

 

 

HB4069- 18 -LRB102 18182 RPS 25746 b

1Sections 6-5 and 6-6 of this Act to the same extent that these
2provisions apply to manufacturers.
3    (l) (i) A broker's license shall be required of all
4persons who solicit orders for, offer to sell or offer to
5supply alcoholic liquor to retailers in the State of Illinois,
6or who offer to retailers to ship or cause to be shipped or to
7make contact with distillers, craft distillers, rectifiers,
8brewers or manufacturers or any other party within or without
9the State of Illinois in order that alcoholic liquors be
10shipped to a distributor, importing distributor or foreign
11importer, whether such solicitation or offer is consummated
12within or without the State of Illinois.
13    No holder of a retailer's license issued by the Illinois
14Liquor Control Commission shall purchase or receive any
15alcoholic liquor, the order for which was solicited or offered
16for sale to such retailer by a broker unless the broker is the
17holder of a valid broker's license.
18    The broker shall, upon the acceptance by a retailer of the
19broker's solicitation of an order or offer to sell or supply or
20deliver or have delivered alcoholic liquors, promptly forward
21to the Illinois Liquor Control Commission a notification of
22said transaction in such form as the Commission may by
23regulations prescribe.
24    (ii) A broker's license shall be required of a person
25within this State, other than a retail licensee, who, for a fee
26or commission, promotes, solicits, or accepts orders for

 

 

HB4069- 19 -LRB102 18182 RPS 25746 b

1alcoholic liquor, for use or consumption and not for resale,
2to be shipped from this State and delivered to residents
3outside of this State by an express company, common carrier,
4or contract carrier. This Section does not apply to any person
5who promotes, solicits, or accepts orders for wine as
6specifically authorized in Section 6-29 of this Act.
7    A broker's license under this subsection (l) shall not
8entitle the holder to buy or sell any alcoholic liquors for his
9own account or to take or deliver title to such alcoholic
10liquors.
11    This subsection (l) shall not apply to distributors,
12employees of distributors, or employees of a manufacturer who
13has registered the trademark, brand or name of the alcoholic
14liquor pursuant to Section 6-9 of this Act, and who regularly
15sells such alcoholic liquor in the State of Illinois only to
16its registrants thereunder.
17    Any agent, representative, or person subject to
18registration pursuant to subsection (a-1) of this Section
19shall not be eligible to receive a broker's license.
20    (m) A non-resident dealer's license shall permit such
21licensee to ship into and warehouse alcoholic liquor into this
22State from any point outside of this State, and to sell such
23alcoholic liquor to Illinois licensed foreign importers and
24importing distributors and to no one else in this State;
25provided that (i) said non-resident dealer shall register with
26the Illinois Liquor Control Commission each and every brand of

 

 

HB4069- 20 -LRB102 18182 RPS 25746 b

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

 

 

HB4069- 21 -LRB102 18182 RPS 25746 b

1or importing distributor, (vi) with the prior approval of the
2Commission, annually transfer no more than 155,000 gallons of
3beer manufactured on the premises to a licensed brew pub
4wholly owned and operated by the same licensee, and (vii)
5notwithstanding item (i) of this subsection, brew pubs wholly
6owned and operated by the same licensee may combine each
7location's production limit of 155,000 gallons of beer per
8year and allocate the aggregate total between the wholly
9owned, operated, and licensed locations.
10    A brew pub licensee shall not under any circumstance sell
11or offer for sale beer manufactured by the brew pub licensee to
12retail licensees.
13    A person who holds a class 2 brewer license may
14simultaneously hold a brew pub license if the class 2 brewer
15(i) does not, under any circumstance, sell or offer for sale
16beer manufactured by the class 2 brewer to retail licensees;
17(ii) does not hold more than 3 brew pub licenses in this State;
18(iii) does not manufacture more than a combined 3,720,000
19gallons of beer per year, including the beer manufactured at
20the brew pub; and (iv) is not a member of or affiliated with,
21directly or indirectly, a manufacturer that produces more than
223,720,000 gallons of beer per year or any other alcoholic
23liquor.
24    Notwithstanding any other provision of this Act, a
25licensed brewer, class 2 brewer, or non-resident dealer who
26before July 1, 2015 manufactured less than 3,720,000 gallons

 

 

HB4069- 22 -LRB102 18182 RPS 25746 b

1of beer per year and held a brew pub license on or before July
21, 2015 may (i) continue to qualify for and hold that brew pub
3license for the licensed premises and (ii) manufacture more
4than 3,720,000 gallons of beer per year and continue to
5qualify for and hold that brew pub license if that brewer,
6class 2 brewer, or non-resident dealer does not simultaneously
7hold a class 1 brewer license and is not a member of or
8affiliated with, directly or indirectly, a manufacturer that
9produces more than 3,720,000 gallons of beer per year or that
10produces any other alcoholic liquor.
11    (o) A caterer retailer license shall allow the holder to
12serve alcoholic liquors as an incidental part of a food
13service that serves prepared meals which excludes the serving
14of snacks as the primary meal, either on or off-site whether
15licensed or unlicensed. A caterer retailer license shall allow
16the holder, a distributor, or an importing distributor to
17transfer any inventory to and from the holder's retail
18premises and shall allow the holder to purchase alcoholic
19liquor from a distributor or importing distributor to be
20delivered directly to an off-site event.
21    Nothing in this Act prohibits a distributor or importing
22distributor from offering credit or a refund for unused,
23salable beer to a holder of a caterer retailer license or a
24caterer retailer licensee from accepting a credit or refund
25for unused, salable beer, in the event an act of God is the
26sole reason an off-site event is cancelled and if: (i) the

 

 

HB4069- 23 -LRB102 18182 RPS 25746 b

1holder of a caterer retailer license has not transferred
2alcoholic liquor from its caterer retailer premises to an
3off-site location; (ii) the distributor or importing
4distributor offers the credit or refund for the unused,
5salable beer that it delivered to the off-site premises and
6not for any unused, salable beer that the distributor or
7importing distributor delivered to the caterer retailer's
8premises; and (iii) the unused, salable beer would likely
9spoil if transferred to the caterer retailer's premises. A
10caterer retailer license shall allow the holder to transfer
11any inventory from any off-site location to its caterer
12retailer premises at the conclusion of an off-site event or
13engage a distributor or importing distributor to transfer any
14inventory from any off-site location to its caterer retailer
15premises at the conclusion of an off-site event, provided that
16the distributor or importing distributor issues bona fide
17charges to the caterer retailer licensee for fuel, labor, and
18delivery and the distributor or importing distributor collects
19payment from the caterer retailer licensee prior to the
20distributor or importing distributor transferring inventory to
21the caterer retailer premises.
22    For purposes of this subsection (o), an "act of God" means
23an unforeseeable event, such as a rain or snow storm, hail, a
24flood, or a similar event, that is the sole cause of the
25cancellation of an off-site, outdoor event.
26    (p) An auction liquor license shall allow the licensee to

 

 

HB4069- 24 -LRB102 18182 RPS 25746 b

1sell and offer for sale at auction wine and spirits for use or
2consumption, or for resale by an Illinois liquor licensee in
3accordance with provisions of this Act. An auction liquor
4license will be issued to a person and it will permit the
5auction liquor licensee to hold the auction anywhere in the
6State. An auction liquor license must be obtained for each
7auction at least 14 days in advance of the auction date.
8    (q) A special use permit license shall allow an Illinois
9licensed retailer to transfer a portion of its alcoholic
10liquor inventory from its retail licensed premises to the
11premises specified in the license hereby created; to purchase
12alcoholic liquor from a distributor or importing distributor
13to be delivered directly to the location specified in the
14license hereby created; and to sell or offer for sale at
15retail, only in the premises specified in the license hereby
16created, the transferred or delivered alcoholic liquor for use
17or consumption, but not for resale in any form. A special use
18permit license may be granted for the following time periods:
19one day or less; 2 or more days to a maximum of 15 days per
20location in any 12-month period. An applicant for the special
21use permit license must also submit with the application proof
22satisfactory to the State Commission that the applicant will
23provide dram shop liability insurance to the maximum limits
24and have local authority approval.
25    A special use permit license shall allow the holder to
26transfer any inventory from the holder's special use premises

 

 

HB4069- 25 -LRB102 18182 RPS 25746 b

1to its retail premises at the conclusion of the special use
2event or engage a distributor or importing distributor to
3transfer any inventory from the holder's special use premises
4to its retail premises at the conclusion of an off-site event,
5provided that the distributor or importing distributor issues
6bona fide charges to the special use permit licensee for fuel,
7labor, and delivery and the distributor or importing
8distributor collects payment from the retail licensee prior to
9the distributor or importing distributor transferring
10inventory to the retail premises.
11    Nothing in this Act prohibits a distributor or importing
12distributor from offering credit or a refund for unused,
13salable beer to a special use permit licensee or a special use
14permit licensee from accepting a credit or refund for unused,
15salable beer at the conclusion of the event specified in the
16license if: (i) the holder of the special use permit license
17has not transferred alcoholic liquor from its retail licensed
18premises to the premises specified in the special use permit
19license; (ii) the distributor or importing distributor offers
20the credit or refund for the unused, salable beer that it
21delivered to the premises specified in the special use permit
22license and not for any unused, salable beer that the
23distributor or importing distributor delivered to the
24retailer's premises; and (iii) the unused, salable beer would
25likely spoil if transferred to the retailer premises.
26    (r) A winery shipper's license shall allow a person with a

 

 

HB4069- 26 -LRB102 18182 RPS 25746 b

1first-class or second-class wine manufacturer's license, a
2first-class or second-class wine-maker's license, or a limited
3wine manufacturer's license or who is licensed to make wine
4under the laws of another state to ship wine made by that
5licensee directly to a resident of this State who is 21 years
6of age or older for that resident's personal use and not for
7resale. Prior to receiving a winery shipper's license, an
8applicant for the license must provide the Commission with a
9true copy of its current license in any state in which it is
10licensed as a manufacturer of wine. An applicant for a winery
11shipper's license must also complete an application form that
12provides any other information the Commission deems necessary.
13The application form shall include all addresses from which
14the applicant for a winery shipper's license intends to ship
15wine, including the name and address of any third party,
16except for a common carrier, authorized to ship wine on behalf
17of the manufacturer. The application form shall include an
18acknowledgement consenting to the jurisdiction of the
19Commission, the Illinois Department of Revenue, and the courts
20of this State concerning the enforcement of this Act and any
21related laws, rules, and regulations, including authorizing
22the Department of Revenue and the Commission to conduct audits
23for the purpose of ensuring compliance with Public Act 95-634,
24and an acknowledgement that the wine manufacturer is in
25compliance with Section 6-2 of this Act. Any third party,
26except for a common carrier, authorized to ship wine on behalf

 

 

HB4069- 27 -LRB102 18182 RPS 25746 b

1of a first-class or second-class wine manufacturer's licensee,
2a first-class or second-class wine-maker's licensee, a limited
3wine manufacturer's licensee, or a person who is licensed to
4make wine under the laws of another state shall also be
5disclosed by the winery shipper's licensee, and a copy of the
6written appointment of the third-party wine provider, except
7for a common carrier, to the wine manufacturer shall be filed
8with the State Commission as a supplement to the winery
9shipper's license application or any renewal thereof. The
10winery shipper's license holder shall affirm under penalty of
11perjury, as part of the winery shipper's license application
12or renewal, that he or she only ships wine, either directly or
13indirectly through a third-party provider, from the licensee's
14own production.
15    Except for a common carrier, a third-party provider
16shipping wine on behalf of a winery shipper's license holder
17is the agent of the winery shipper's license holder and, as
18such, a winery shipper's license holder is responsible for the
19acts and omissions of the third-party provider acting on
20behalf of the license holder. A third-party provider, except
21for a common carrier, that engages in shipping wine into
22Illinois on behalf of a winery shipper's license holder shall
23consent to the jurisdiction of the State Commission and the
24State. Any third-party, except for a common carrier, holding
25such an appointment shall, by February 1 of each calendar year
26and upon request by the State Commission or the Department of

 

 

HB4069- 28 -LRB102 18182 RPS 25746 b

1Revenue, file with the State Commission a statement detailing
2each shipment made to an Illinois resident. The statement
3shall include the name and address of the third-party provider
4filing the statement, the time period covered by the
5statement, and the following information:
6        (1) the name, address, and license number of the
7    winery shipper on whose behalf the shipment was made;
8        (2) the quantity of the products delivered; and
9        (3) the date and address of the shipment.
10If the Department of Revenue or the State Commission requests
11a statement under this paragraph, the third-party provider
12must provide that statement no later than 30 days after the
13request is made. Any books, records, supporting papers, and
14documents containing information and data relating to a
15statement under this paragraph shall be kept and preserved for
16a period of 3 years, unless their destruction sooner is
17authorized, in writing, by the Director of Revenue, and shall
18be open and available to inspection by the Director of Revenue
19or the State Commission or any duly authorized officer, agent,
20or employee of the State Commission or the Department of
21Revenue, at all times during business hours of the day. Any
22person who violates any provision of this paragraph or any
23rule of the State Commission for the administration and
24enforcement of the provisions of this paragraph is guilty of a
25Class C misdemeanor. In case of a continuing violation, each
26day's continuance thereof shall be a separate and distinct

 

 

HB4069- 29 -LRB102 18182 RPS 25746 b

1offense.
2    The State Commission shall adopt rules as soon as
3practicable to implement the requirements of Public Act 99-904
4and shall adopt rules prohibiting any such third-party
5appointment of a third-party provider, except for a common
6carrier, that has been deemed by the State Commission to have
7violated the provisions of this Act with regard to any winery
8shipper licensee.
9    A winery shipper licensee must pay to the Department of
10Revenue the State liquor gallonage tax under Section 8-1 for
11all wine that is sold by the licensee and shipped to a person
12in this State. For the purposes of Section 8-1, a winery
13shipper licensee shall be taxed in the same manner as a
14manufacturer of wine. A licensee who is not otherwise required
15to register under the Retailers' Occupation Tax Act must
16register under the Use Tax Act to collect and remit use tax to
17the Department of Revenue for all gallons of wine that are sold
18by the licensee and shipped to persons in this State. If a
19licensee fails to remit the tax imposed under this Act in
20accordance with the provisions of Article VIII of this Act,
21the winery shipper's license shall be revoked in accordance
22with the provisions of Article VII of this Act. If a licensee
23fails to properly register and remit tax under the Use Tax Act
24or the Retailers' Occupation Tax Act for all wine that is sold
25by the winery shipper and shipped to persons in this State, the
26winery shipper's license shall be revoked in accordance with

 

 

HB4069- 30 -LRB102 18182 RPS 25746 b

1the provisions of Article VII of this Act.
2    A winery shipper licensee must collect, maintain, and
3submit to the Commission on a semi-annual basis the total
4number of cases per resident of wine shipped to residents of
5this State. A winery shipper licensed under this subsection
6(r) must comply with the requirements of Section 6-29 of this
7Act.
8    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
9Section 3-12, the State Commission may receive, respond to,
10and investigate any complaint and impose any of the remedies
11specified in paragraph (1) of subsection (a) of Section 3-12.
12    As used in this subsection, "third-party provider" means
13any entity that provides fulfillment house services, including
14warehousing, packaging, distribution, order processing, or
15shipment of wine, but not the sale of wine, on behalf of a
16licensed winery shipper.
17    (s) A craft distiller tasting permit license shall allow
18an Illinois licensed class 1 craft distiller or class 2 craft
19distiller to transfer a portion of its alcoholic liquor
20inventory from its class 1 craft distiller or class 2 craft
21distiller licensed premises to the premises specified in the
22license hereby created and to conduct a sampling, only in the
23premises specified in the license hereby created, of the
24transferred alcoholic liquor in accordance with subsection (c)
25of Section 6-31 of this Act. The transferred alcoholic liquor
26may not be sold or resold in any form. An applicant for the

 

 

HB4069- 31 -LRB102 18182 RPS 25746 b

1craft distiller tasting permit license must also submit with
2the application proof satisfactory to the State Commission
3that the applicant will provide dram shop liability insurance
4to the maximum limits and have local authority approval.
5    (t) A brewer warehouse permit may be issued to the holder
6of a class 1 brewer license or a class 2 brewer license. If the
7holder of the permit is a class 1 brewer licensee, the brewer
8warehouse permit shall allow the holder to store or warehouse
9up to 930,000 gallons of tax-determined beer manufactured by
10the holder of the permit at the premises specified on the
11permit. If the holder of the permit is a class 2 brewer
12licensee, the brewer warehouse permit shall allow the holder
13to store or warehouse up to 3,720,000 gallons of
14tax-determined beer manufactured by the holder of the permit
15at the premises specified on the permit. Sales to
16non-licensees are prohibited at the premises specified in the
17brewer warehouse permit.
18    (u) A distilling pub license shall allow the licensee to
19only (i) manufacture up to 5,000 gallons of spirits per year
20only on the premises specified in the license, (ii) make sales
21of the spirits manufactured on the premises or, with the
22approval of the State Commission, spirits manufactured on
23another distilling pub licensed premises that is wholly owned
24and operated by the same licensee to importing distributors
25and distributors and to non-licensees for use and consumption,
26(iii) store the spirits upon the premises, (iv) sell and offer

 

 

HB4069- 32 -LRB102 18182 RPS 25746 b

1for sale at retail from the licensed premises for off-premises
2consumption no more than 5,000 gallons per year so long as such
3sales are only made in-person, (v) sell and offer for sale at
4retail for use and consumption on the premises specified in
5the license any form of alcoholic liquor purchased from a
6licensed distributor or importing distributor, and (vi) with
7the prior approval of the State Commission, annually transfer
8no more than 5,000 gallons of spirits manufactured on the
9premises to a licensed distilling pub wholly owned and
10operated by the same licensee.
11    A distilling pub licensee shall not under any circumstance
12sell or offer for sale spirits manufactured by the distilling
13pub licensee to retail licensees.
14    A person who holds a class 2 craft distiller license may
15simultaneously hold a distilling pub license if the class 2
16craft distiller (i) does not, under any circumstance, sell or
17offer for sale spirits manufactured by the class 2 craft
18distiller to retail licensees; (ii) does not hold more than 3
19distilling pub licenses in this State; (iii) does not
20manufacture more than a combined 100,000 gallons of spirits
21per year, including the spirits manufactured at the distilling
22pub; and (iv) is not a member of or affiliated with, directly
23or indirectly, a manufacturer that produces more than 100,000
24gallons of spirits per year or any other alcoholic liquor.
25    (v) A craft distiller warehouse permit may be issued to
26the holder of a class 1 craft distiller or class 2 craft

 

 

HB4069- 33 -LRB102 18182 RPS 25746 b

1distiller license. The craft distiller warehouse permit shall
2allow the holder to store or warehouse up to 500,000 gallons of
3spirits manufactured by the holder of the permit at the
4premises specified on the permit. Sales to non-licensees are
5prohibited at the premises specified in the craft distiller
6warehouse permit.
7(Source: P.A. 100-17, eff. 6-30-17; 100-201, eff. 8-18-17;
8100-816, eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff.
98-23-18; 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; 101-81,
10eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. 8-23-19;
11101-615, eff. 12-20-19.)
 
12    (235 ILCS 5/6-9.2 new)
13    Sec. 6-9.2. Emergency purchase of alcoholic liquor
14products by a retail licensee. If an on-premises retail
15licensee's stock of a certain type of alcoholic liquor product
16is exhausted, that product is a spirit, and the delivery of
17that product is not within the distributor's delivery
18schedule, the on-premises retail licensee may make emergency
19purchases of not more than 6 liters of that type of product for
20resale from an off-premises retail licensee per month. The
21on-premises retail licensee shall pay an annual registration
22fee of $25 to the State Commission, which shall constitute a
23waiver of any penalty, fine, or fee that would otherwise be
24incurred if a retail licensee purchased alcoholic liquor
25products from another retail licensee. Purchases of alcoholic

 

 

HB4069- 34 -LRB102 18182 RPS 25746 b

1liquor products authorized under this Section shall be
2conducted in accordance with the following:
3        (1) The off-premises retail licensee shall record on a
4    form furnished by the State Commission all of the
5    following:
6            (A) the name and signature of the on-premises
7        retail licensee making the purchase;
8            (B) the date and time of the purchase; and
9            (C) the on-premises retail licensee's Retailers'
10        Occupation Tax Registration Number.
11        (2) The on-premises retail licensee shall maintain the
12    receipt from the sale and any related invoices for 90
13    days.
14        (3) The on-premises retail licensee shall report the
15    purchase of the alcoholic liquor products on its monthly
16    sales tax report form.
17    The form collected pursuant to paragraph (1) shall be
18provided to the State Commission within 30 days after the sale
19and shall be maintained by the seller of the alcoholic liquor
20products for not less than one year after the date of the sale.
21The form shall be available upon request for the State
22Commission to inspect.