103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5504

 

Introduced 2/9/2024, by Rep. Kevin John Olickal

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/1-3.45 new
235 ILCS 5/1-3.46 new
235 ILCS 5/3-12
235 ILCS 5/5-1  from Ch. 43, par. 115
235 ILCS 5/5-3  from Ch. 43, par. 118
235 ILCS 5/6-4  from Ch. 43, par. 121

    Amends the Liquor Control Act of 1934. Creates a distiller showcase permit and a class 3 craft distiller license. Provides that a class 3 craft distiller license, which may be issued to a distiller or a non-resident dealer, shall allow the manufacture of no more than 100,000 gallons of spirits per year and shall allow the sale of no more than 5,000 gallons of spirits in the aggregate from the class 3 craft distiller's in-state or out-of-state class 3 craft distillery premises to retail licensees, class 3 brewers, and class 3 craft distillers as long as the class 3 craft distiller licensee meets certain requirements. Authorizes a class 3 craft distiller to self-distribute subject to certain requirements and limitations. Provides that a spirits showcase permit shall allow an Illinois-licensed distributor to transfer a portion of its spirits inventory from its licensed premises to the premises specified in the spirits showcase permit license, and, in the case of a class 3 craft distiller, transfer only spirits the class 3 craft distiller manufactures from its licensed premises to the premises specified in the spirits showcase permit license; and to sell or offer for sale at retail, only in the premises specified in the spirits showcase permit license, the transferred or delivered spirits for on or off premises consumption, but not for resale in any form and to sell to non-licensees not more than 156 fluid ounces of spirits per person. Provides that a distilling pub license shall allow the licensee to manufacture up to 10,000 gallons (instead of 5,000 gallons) of spirits per year on the premises specified in the license.


LRB103 38154 RPS 68287 b

 

 

A BILL FOR

 

HB5504LRB103 38154 RPS 68287 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 3-12, 5-1, 5-3, and 6-4 and by adding
6Sections 1-3.45 and 1-3.46 as follows:
 
7    (235 ILCS 5/1-3.45 new)
8    Sec. 1-3.45. Spirits showcase permit. "Spirits showcase
9permit" means a license for use by a class 1 craft distiller,
10class 2 craft distiller, class 3 craft distiller, or
11distributor to allow for the transfer of spirits only from an
12existing licensed premises of a class 1 craft distiller, class
132 craft distiller, class 3 craft distiller, or distributor to
14a designated site for a specific event.
 
15    (235 ILCS 5/1-3.46 new)
16    Sec. 1-3.46. Class 3 craft distiller. "Class 3 craft
17distiller" means a person who is a holder of a distiller
18license, class 1 craft distiller license, class 2 craft
19distiller license, or a non-resident dealer license who
20manufactures no more than 100,000 gallons of spirits per year
21in the aggregate and who may make sales to importing
22distributors, distributors, and retail licensees in accordance

 

 

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1with the conditions set forth in paragraph (21) of subsection
2(a) of Section 3-12.
 
3    (235 ILCS 5/3-12)
4    Sec. 3-12. Powers and duties of State Commission.
5    (a) The State Commission shall have the following powers,
6functions, and duties:
7        (1) To receive applications and to issue licenses to
8    manufacturers, foreign importers, importing distributors,
9    distributors, non-resident dealers, on premise consumption
10    retailers, off premise sale retailers, special event
11    retailer licensees, special use permit licenses, auction
12    liquor licenses, brew pubs, caterer retailers,
13    non-beverage users, railroads, including owners and
14    lessees of sleeping, dining and cafe cars, airplanes,
15    boats, brokers, and wine maker's premises licensees in
16    accordance with the provisions of this Act, and to suspend
17    or revoke such licenses upon the State Commission's
18    determination, upon notice after hearing, that a licensee
19    has violated any provision of this Act or any rule or
20    regulation issued pursuant thereto and in effect for 30
21    days prior to such violation. Except in the case of an
22    action taken pursuant to a violation of Section 6-3, 6-5,
23    or 6-9, any action by the State Commission to suspend or
24    revoke a licensee's license may be limited to the license
25    for the specific premises where the violation occurred. An

 

 

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1    action for a violation of this Act shall be commenced by
2    the State Commission within 2 years after the date the
3    State Commission becomes aware of the violation.
4        In lieu of suspending or revoking a license, the
5    commission may impose a fine, upon the State Commission's
6    determination and 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.
10        For the purpose of this paragraph (1), when
11    determining multiple violations for the sale of alcohol to
12    a person under the age of 21, a second or subsequent
13    violation for the sale of alcohol to a person under the age
14    of 21 shall only be considered if it was committed within 5
15    years after the date when a prior violation for the sale of
16    alcohol to a person under the age of 21 was committed.
17        The fine imposed under this paragraph may not exceed
18    $500 for each violation. Each day that the activity, which
19    gave rise to the original fine, continues is a separate
20    violation. The maximum fine that may be levied against any
21    licensee, for the period of the license, shall not exceed
22    $20,000. The maximum penalty that may be imposed on a
23    licensee for selling a bottle of alcoholic liquor with a
24    foreign object in it or serving from a bottle of alcoholic
25    liquor with a foreign object in it shall be the
26    destruction of that bottle of alcoholic liquor for the

 

 

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1    first 10 bottles so sold or served from by the licensee.
2    For the eleventh bottle of alcoholic liquor and for each
3    third bottle thereafter sold or served from by the
4    licensee with a foreign object in it, the maximum penalty
5    that may be imposed on the licensee is the destruction of
6    the bottle of alcoholic liquor and a fine of up to $50.
7        Any notice issued by the State Commission to a
8    licensee for a violation of this Act or any notice with
9    respect to settlement or offer in compromise shall include
10    the field report, photographs, and any other supporting
11    documentation necessary to reasonably inform the licensee
12    of the nature and extent of the violation or the conduct
13    alleged to have occurred. The failure to include such
14    required documentation shall result in the dismissal of
15    the action.
16        (2) To adopt such rules and regulations consistent
17    with the provisions of this Act which shall be necessary
18    to carry on its functions and duties to the end that the
19    health, safety and welfare of the People of the State of
20    Illinois shall be protected and temperance in the
21    consumption of alcoholic liquors shall be fostered and
22    promoted and to distribute copies of such rules and
23    regulations to all licensees affected thereby.
24        (3) To call upon other administrative departments of
25    the State, county and municipal governments, county and
26    city police departments and upon prosecuting officers for

 

 

HB5504- 5 -LRB103 38154 RPS 68287 b

1    such information and assistance as it deems necessary in
2    the performance of its duties.
3        (4) To recommend to local commissioners rules and
4    regulations, not inconsistent with the law, for the
5    distribution and sale of alcoholic liquors throughout the
6    State.
7        (5) To inspect, or cause to be inspected, any premises
8    in this State where alcoholic liquors are manufactured,
9    distributed, warehoused, or sold. Nothing in this Act
10    authorizes an agent of the State Commission to inspect
11    private areas within the premises without reasonable
12    suspicion or a warrant during an inspection. "Private
13    areas" include, but are not limited to, safes, personal
14    property, and closed desks.
15        (5.1) Upon receipt of a complaint or upon having
16    knowledge that any person is engaged in business as a
17    manufacturer, importing distributor, distributor, or
18    retailer without a license or valid license, to conduct an
19    investigation. If, after conducting an investigation, the
20    State Commission is satisfied that the alleged conduct
21    occurred or is occurring, it may issue a cease and desist
22    notice as provided in this Act, impose civil penalties as
23    provided in this Act, notify the local liquor authority,
24    or file a complaint with the State's Attorney's Office of
25    the county where the incident occurred or the Attorney
26    General.

 

 

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1        (5.2) Upon receipt of a complaint or upon having
2    knowledge that any person is shipping alcoholic liquor
3    into this State from a point outside of this State if the
4    shipment is in violation of this Act, to conduct an
5    investigation. If, after conducting an investigation, the
6    State Commission is satisfied that the alleged conduct
7    occurred or is occurring, it may issue a cease and desist
8    notice as provided in this Act, impose civil penalties as
9    provided in this Act, notify the foreign jurisdiction, or
10    file a complaint with the State's Attorney's Office of the
11    county where the incident occurred or the Attorney
12    General.
13        (5.3) To receive complaints from licensees, local
14    officials, law enforcement agencies, organizations, and
15    persons stating that any licensee has been or is violating
16    any provision of this Act or the rules and regulations
17    issued pursuant to this Act. Such complaints shall be in
18    writing, signed and sworn to by the person making the
19    complaint, and shall state with specificity the facts in
20    relation to the alleged violation. If the State Commission
21    has reasonable grounds to believe that the complaint
22    substantially alleges a violation of this Act or rules and
23    regulations adopted pursuant to this Act, it shall conduct
24    an investigation. If, after conducting an investigation,
25    the State Commission is satisfied that the alleged
26    violation did occur, it shall proceed with disciplinary

 

 

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1    action against the licensee as provided in this Act.
2        (5.4) To make arrests and issue notices of civil
3    violations where necessary for the enforcement of this
4    Act.
5        (5.5) To investigate any and all unlicensed activity.
6        (5.6) To impose civil penalties or fines to any person
7    who, without holding a valid license, engages in conduct
8    that requires a license pursuant to this Act, in an amount
9    not to exceed $20,000 for each offense as determined by
10    the State Commission. A civil penalty shall be assessed by
11    the State Commission after a hearing is held in accordance
12    with the provisions set forth in this Act regarding the
13    provision of a hearing for the revocation or suspension of
14    a license.
15        (6) To hear and determine appeals from orders of a
16    local commission in accordance with the provisions of this
17    Act, as hereinafter set forth. Hearings under this
18    subsection shall be held in Springfield or Chicago, at
19    whichever location is the more convenient for the majority
20    of persons who are parties to the hearing.
21        (7) The State Commission shall establish uniform
22    systems of accounts to be kept by all retail licensees
23    having more than 4 employees, and for this purpose the
24    State Commission may classify all retail licensees having
25    more than 4 employees and establish a uniform system of
26    accounts for each class and prescribe the manner in which

 

 

HB5504- 8 -LRB103 38154 RPS 68287 b

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

 

 

HB5504- 9 -LRB103 38154 RPS 68287 b

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

 

 

HB5504- 10 -LRB103 38154 RPS 68287 b

1    areas of overserving consumers and illegal underage
2    purchasing and consumption of alcoholic beverages.
3        (11.1) To license persons providing education and
4    training to alcohol beverage sellers and servers for
5    mandatory and non-mandatory training under the Beverage
6    Alcohol Sellers and Servers Education and Training
7    (BASSET) programs and to develop and administer a public
8    awareness program in Illinois to reduce or eliminate the
9    illegal purchase and consumption of alcoholic beverage
10    products by persons under the age of 21. Application for a
11    license shall be made on forms provided by the State
12    Commission.
13        (12) To develop and maintain a repository of license
14    and regulatory information.
15        (13) (Blank).
16        (14) On or before April 30, 2008 and every 2 years
17    thereafter, the State Commission shall present a written
18    report to the Governor and the General Assembly that shall
19    be based on a study of the impact of Public Act 95-634 on
20    the business of soliciting, selling, and shipping wine
21    from inside and outside of this State directly to
22    residents of this State. As part of its report, the State
23    Commission shall provide all of the following information:
24            (A) The amount of State excise and sales tax
25        revenues generated.
26            (B) The amount of licensing fees received.

 

 

HB5504- 11 -LRB103 38154 RPS 68287 b

1            (C) The number of cases of wine shipped from
2        inside and outside of this State directly to residents
3        of this State.
4            (D) The number of alcohol compliance operations
5        conducted.
6            (E) The number of winery shipper's licenses
7        issued.
8            (F) The number of each of the following: reported
9        violations; cease and desist notices issued by the
10        Commission; notices of violations issued by the
11        Commission and to the Department of Revenue; and
12        notices and complaints of violations to law
13        enforcement officials, including, without limitation,
14        the Illinois Attorney General and the U.S. Department
15        of Treasury's Alcohol and Tobacco Tax and Trade
16        Bureau.
17        (15) As a means to reduce the underage consumption of
18    alcoholic liquors, the State Commission shall conduct
19    alcohol compliance operations to investigate whether
20    businesses that are soliciting, selling, and shipping wine
21    from inside or outside of this State directly to residents
22    of this State are licensed by this State or are selling or
23    attempting to sell wine to persons under 21 years of age in
24    violation of this Act.
25        (16) The State Commission shall, in addition to
26    notifying any appropriate law enforcement agency, submit

 

 

HB5504- 12 -LRB103 38154 RPS 68287 b

1    notices of complaints or violations of Sections 6-29 and
2    6-29.1 by persons who do not hold a winery shipper's
3    license under this Act to the Illinois Attorney General
4    and to the U.S. Department of Treasury's Alcohol and
5    Tobacco Tax and Trade Bureau.
6        (17)(A) A person licensed to make wine under the laws
7    of another state who has a winery shipper's license under
8    this Act and annually produces less than 25,000 gallons of
9    wine or a person who has a first-class or second-class
10    wine manufacturer's license, a first-class or second-class
11    wine-maker's license, or a limited wine manufacturer's
12    license under this Act and annually produces less than
13    25,000 gallons of wine may make application to the
14    Commission for a self-distribution exemption to allow the
15    sale of not more than 5,000 gallons of the exemption
16    holder's wine to retail licensees per year and to sell
17    cider, mead, or both cider and mead to brewers, class 1
18    brewers, class 2 brewers, and class 3 brewers, and class 3
19    craft distillers that, pursuant to subsection (e) of
20    Section 6-4 of this Act, sell beer, cider, spirits, mead,
21    or any combination thereof to non-licensees at their
22    breweries or distilleries.
23        (B) In the application, which shall be sworn under
24    penalty of perjury, such person shall state (1) the date
25    it was established; (2) its volume of production and sales
26    for each year since its establishment; (3) its efforts to

 

 

HB5504- 13 -LRB103 38154 RPS 68287 b

1    establish distributor relationships; (4) that a
2    self-distribution exemption is necessary to facilitate the
3    marketing of its wine; and (5) that it will comply with the
4    liquor and revenue laws of the United States, this State,
5    and any other state where it is licensed.
6        (C) The State Commission shall approve the application
7    for a self-distribution exemption if such person: (1) is
8    in compliance with State revenue and liquor laws; (2) is
9    not a member of any affiliated group that produces
10    directly or indirectly more than 25,000 gallons of wine
11    per annum, 930,000 gallons of beer per annum, or 50,000
12    gallons of spirits per annum; (3) will not annually
13    produce for sale more than 25,000 gallons of wine, 930,000
14    gallons of beer, or 50,000 gallons of spirits; and (4)
15    will not annually sell more than 5,000 gallons of its wine
16    to retail licensees.
17        (D) A self-distribution exemption holder shall
18    annually certify to the State Commission its production of
19    wine in the previous 12 months and its anticipated
20    production and sales for the next 12 months. The State
21    Commission may fine, suspend, or revoke a
22    self-distribution exemption after a hearing if it finds
23    that the exemption holder has made a material
24    misrepresentation in its application, violated a revenue
25    or liquor law of Illinois, exceeded production of 25,000
26    gallons of wine, 930,000 gallons of beer, or 50,000

 

 

HB5504- 14 -LRB103 38154 RPS 68287 b

1    gallons of spirits in any calendar year, or become part of
2    an affiliated group producing more than 25,000 gallons of
3    wine, 930,000 gallons of beer, or 50,000 gallons of
4    spirits.
5        (E) Except in hearings for violations of this Act or
6    Public Act 95-634 or a bona fide investigation by duly
7    sworn law enforcement officials, the State Commission, or
8    its agents, the State Commission shall maintain the
9    production and sales information of a self-distribution
10    exemption holder as confidential and shall not release
11    such information to any person.
12        (F) The State Commission shall issue regulations
13    governing self-distribution exemptions consistent with
14    this Section and this Act.
15        (G) Nothing in this paragraph (17) shall prohibit a
16    self-distribution exemption holder from entering into or
17    simultaneously having a distribution agreement with a
18    licensed Illinois distributor.
19        (H) It is the intent of this paragraph (17) to promote
20    and continue orderly markets. The General Assembly finds
21    that, in order to preserve Illinois' regulatory
22    distribution system, it is necessary to create an
23    exception for smaller makers of wine as their wines are
24    frequently adjusted in varietals, mixes, vintages, and
25    taste to find and create market niches sometimes too small
26    for distributor or importing distributor business

 

 

HB5504- 15 -LRB103 38154 RPS 68287 b

1    strategies. Limited self-distribution rights will afford
2    and allow smaller makers of wine access to the marketplace
3    in order to develop a customer base without impairing the
4    integrity of the 3-tier system.
5        (18)(A) A class 1 brewer licensee, who must also be
6    either a licensed brewer or licensed non-resident dealer
7    and annually manufacture less than 930,000 gallons of
8    beer, may make application to the State Commission for a
9    self-distribution exemption to allow the sale of not more
10    than 232,500 gallons per year of the exemption holder's
11    beer to retail licensees and to brewers, class 1 brewers,
12    and class 2 brewers that, pursuant to subsection (e) of
13    Section 6-4 of this Act, sell beer, cider, mead, or any
14    combination thereof to non-licensees at their breweries.
15        (B) In the application, which shall be sworn under
16    penalty of perjury, the class 1 brewer licensee shall
17    state (1) the date it was established; (2) its volume of
18    beer manufactured and sold for each year since its
19    establishment; (3) its efforts to establish distributor
20    relationships; (4) that a self-distribution exemption is
21    necessary to facilitate the marketing of its beer; and (5)
22    that it will comply with the alcoholic beverage and
23    revenue laws of the United States, this State, and any
24    other state where it is licensed.
25        (C) Any application submitted shall be posted on the
26    State Commission's website at least 45 days prior to

 

 

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1    action by the State Commission. The State Commission shall
2    approve the application for a self-distribution exemption
3    if the class 1 brewer licensee: (1) is in compliance with
4    the State, revenue, and alcoholic beverage laws; (2) is
5    not a member of any affiliated group that manufactures,
6    directly or indirectly, more than 930,000 gallons of beer
7    per annum, 25,000 gallons of wine per annum, or 50,000
8    gallons of spirits per annum; (3) shall not annually
9    manufacture for sale more than 930,000 gallons of beer,
10    25,000 gallons of wine, or 50,000 gallons of spirits; (4)
11    shall not annually sell more than 232,500 gallons of its
12    beer to retail licensees and class 3 brewers and to
13    brewers, class 1 brewers, and class 2 brewers that,
14    pursuant to subsection (e) of Section 6-4 of this Act,
15    sell beer, cider, mead, or any combination thereof to
16    non-licensees at their breweries; and (5) has relinquished
17    any brew pub license held by the licensee, including any
18    ownership interest it held in the licensed brew pub.
19        (D) A self-distribution exemption holder shall
20    annually certify to the State Commission its manufacture
21    of beer during the previous 12 months and its anticipated
22    manufacture and sales of beer for the next 12 months. The
23    State Commission may fine, suspend, or revoke a
24    self-distribution exemption after a hearing if it finds
25    that the exemption holder has made a material
26    misrepresentation in its application, violated a revenue

 

 

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1    or alcoholic beverage law of Illinois, exceeded the
2    manufacture of 930,000 gallons of beer, 25,000 gallons of
3    wine, or 50,000 gallons of spirits in any calendar year or
4    became part of an affiliated group manufacturing more than
5    930,000 gallons of beer, 25,000 gallons of wine, or 50,000
6    gallons of spirits.
7        (E) The State Commission shall issue rules and
8    regulations governing self-distribution exemptions
9    consistent with this Act.
10        (F) Nothing in this paragraph (18) shall prohibit a
11    self-distribution exemption holder from entering into or
12    simultaneously having a distribution agreement with a
13    licensed Illinois importing distributor or a distributor.
14    If a self-distribution exemption holder enters into a
15    distribution agreement and has assigned distribution
16    rights to an importing distributor or distributor, then
17    the self-distribution exemption holder's distribution
18    rights in the assigned territories shall cease in a
19    reasonable time not to exceed 60 days.
20        (G) It is the intent of this paragraph (18) to promote
21    and continue orderly markets. The General Assembly finds
22    that in order to preserve Illinois' regulatory
23    distribution system, it is necessary to create an
24    exception for smaller manufacturers in order to afford and
25    allow such smaller manufacturers of beer access to the
26    marketplace in order to develop a customer base without

 

 

HB5504- 18 -LRB103 38154 RPS 68287 b

1    impairing the integrity of the 3-tier system.
2        (19)(A) A class 1 craft distiller licensee or a
3    non-resident dealer who manufactures less than 50,000
4    gallons of distilled spirits per year may make application
5    to the State Commission for a self-distribution exemption
6    to allow the sale of not more than 5,000 gallons of the
7    exemption holder's spirits to retail licensees per year.
8        (B) In the application, which shall be sworn under
9    penalty of perjury, the class 1 craft distiller licensee
10    or non-resident dealer shall state (1) the date it was
11    established; (2) its volume of spirits manufactured and
12    sold for each year since its establishment; (3) its
13    efforts to establish distributor relationships; (4) that a
14    self-distribution exemption is necessary to facilitate the
15    marketing of its spirits; and (5) that it will comply with
16    the alcoholic beverage and revenue laws of the United
17    States, this State, and any other state where it is
18    licensed.
19        (C) Any application submitted shall be posted on the
20    State Commission's website at least 45 days prior to
21    action by the State Commission. The State Commission shall
22    approve the application for a self-distribution exemption
23    if the applicant: (1) is in compliance with State revenue
24    and alcoholic beverage laws; (2) is not a member of any
25    affiliated group that produces more than 50,000 gallons of
26    spirits per annum, 930,000 gallons of beer per annum, or

 

 

HB5504- 19 -LRB103 38154 RPS 68287 b

1    25,000 gallons of wine per annum; (3) does not annually
2    manufacture for sale more than 50,000 gallons of spirits,
3    930,000 gallons of beer, or 25,000 gallons of wine; and
4    (4) does not annually sell more than 5,000 gallons of its
5    spirits to retail licensees.
6        (D) A self-distribution exemption holder shall
7    annually certify to the State Commission its manufacture
8    of spirits during the previous 12 months and its
9    anticipated manufacture and sales of spirits for the next
10    12 months. The State Commission may fine, suspend, or
11    revoke a self-distribution exemption after a hearing if it
12    finds that the exemption holder has made a material
13    misrepresentation in its application, violated a revenue
14    or alcoholic beverage law of Illinois, exceeded the
15    manufacture of 50,000 gallons of spirits, 930,000 gallons
16    of beer, or 25,000 gallons of wine in any calendar year, or
17    has become part of an affiliated group manufacturing more
18    than 50,000 gallons of spirits, 930,000 gallons of beer,
19    or 25,000 gallons of wine.
20        (E) The State Commission shall adopt rules governing
21    self-distribution exemptions consistent with this Act.
22        (F) Nothing in this paragraph (19) shall prohibit a
23    self-distribution exemption holder from entering into or
24    simultaneously having a distribution agreement with a
25    licensed Illinois importing distributor or a distributor.
26        (G) It is the intent of this paragraph (19) to promote

 

 

HB5504- 20 -LRB103 38154 RPS 68287 b

1    and continue orderly markets. The General Assembly finds
2    that in order to preserve Illinois' regulatory
3    distribution system, it is necessary to create an
4    exception for smaller manufacturers in order to afford and
5    allow such smaller manufacturers of spirits access to the
6    marketplace in order to develop a customer base without
7    impairing the integrity of the 3-tier system.
8        (20)(A) A class 3 brewer licensee who must manufacture
9    less than 465,000 gallons of beer in the aggregate and not
10    more than 155,000 gallons at any single brewery premises
11    may make application to the State Commission for a
12    self-distribution exemption to allow the sale of not more
13    than 6,200 gallons of beer from each in-state or
14    out-of-state class 3 brewery premises, which shall not
15    exceed 18,600 gallons annually in the aggregate, that is
16    manufactured at a wholly owned class 3 brewer's in-state
17    or out-of-state licensed premises to retail licensees and
18    class 3 brewers and to brewers, class 1 brewers, class 2
19    brewers that, pursuant to subsection (e) of Section 6-4,
20    sell beer, cider, or both beer and cider to non-licensees
21    at their licensed breweries.
22        (B) In the application, which shall be sworn under
23    penalty of perjury, the class 3 brewer licensee shall
24    state:
25            (1) the date it was established;
26            (2) its volume of beer manufactured and sold for

 

 

HB5504- 21 -LRB103 38154 RPS 68287 b

1        each year since its establishment;
2            (3) its efforts to establish distributor
3        relationships;
4            (4) that a self-distribution exemption is
5        necessary to facilitate the marketing of its beer; and
6            (5) that it will comply with the alcoholic
7        beverage and revenue laws of the United States, this
8        State, and any other state where it is licensed.
9        (C) Any application submitted shall be posted on the
10    State Commission's website at least 45 days before action
11    by the State Commission. The State Commission shall
12    approve the application for a self-distribution exemption
13    if the class 3 brewer licensee: (1) is in compliance with
14    the State, revenue, and alcoholic beverage laws; (2) is
15    not a member of any affiliated group that manufacturers,
16    directly or indirectly, more than 465,000 gallons of beer
17    per annum; (3) shall not annually manufacture for sale
18    more than 465,000 gallons of beer or more than 155,000
19    gallons at any single brewery premises; and (4) shall not
20    annually sell more than 6,200 gallons of beer from each
21    in-state or out-of-state class 3 brewery premises, and
22    shall not exceed 18,600 gallons annually in the aggregate,
23    to retail licensees and class 3 brewers and to brewers,
24    class 1 brewers, and class 2 brewers that, pursuant to
25    subsection (e) of Section 6-4 of this Act, sell beer,
26    cider, or both beer and cider to non-licensees at their

 

 

HB5504- 22 -LRB103 38154 RPS 68287 b

1    breweries.
2        (D) A self-distribution exemption holder shall
3    annually certify to the State Commission its manufacture
4    of beer during the previous 12 months and its anticipated
5    manufacture and sales of beer for the next 12 months. The
6    State Commission may fine, suspend, or revoke a
7    self-distribution exemption after a hearing if it finds
8    that the exemption holder has made a material
9    misrepresentation in its application, violated a revenue
10    or alcoholic beverage law of Illinois, exceeded the
11    manufacture of 465,000 gallons of beer in any calendar
12    year or became part of an affiliated group manufacturing
13    more than 465,000 gallons of beer, or exceeded the sale to
14    retail licensees, brewers, class 1 brewers, class 2
15    brewers, and class 3 brewers of 6,200 gallons per brewery
16    location or 18,600 gallons in the aggregate.
17        (E) The State Commission may adopt rules governing
18    self-distribution exemptions consistent with this Act.
19        (F) Nothing in this paragraph shall prohibit a
20    self-distribution exemption holder from entering into or
21    simultaneously having a distribution agreement with a
22    licensed Illinois importing distributor or a distributor.
23    If a self-distribution exemption holder enters into a
24    distribution agreement and has assigned distribution
25    rights to an importing distributor or distributor, then
26    the self-distribution exemption holder's distribution

 

 

HB5504- 23 -LRB103 38154 RPS 68287 b

1    rights in the assigned territories shall cease in a
2    reasonable time not to exceed 60 days.
3        (G) It is the intent of this paragraph to promote and
4    continue orderly markets. The General Assembly finds that
5    in order to preserve Illinois' regulatory distribution
6    system, it is necessary to create an exception for smaller
7    manufacturers in order to afford and allow such smaller
8    manufacturers of beer access to the marketplace in order
9    to develop a customer base without impairing the integrity
10    of the 3-tier system.
11        (21)(A) A class 3 craft distiller licensee who
12    manufactures less than 100,000 gallons of spirits in the
13    aggregate may make application to the State Commission for
14    a self-distribution exemption to allow the sale of not
15    more than 5,000 gallons of spirits that are manufactured
16    at a wholly owned class 3 craft distiller's in-state or
17    out-of-state licensed premises to retail licensees and
18    class 3 brewers and to class 3 craft distillers that,
19    pursuant to subsection (e) of Section 6-4, sell beer,
20    cider, spirits, or any combination thereof to
21    non-licensees at their licensed distilleries.
22        (B) In the application, which shall be sworn under
23    penalty of perjury, the class 3 craft distiller licensee
24    shall state: (1) the date it was established; (2) its
25    volume of spirits manufactured and sold for each year
26    since its establishment; (3) its efforts to establish

 

 

HB5504- 24 -LRB103 38154 RPS 68287 b

1    distributor relationships; (4) that a self-distribution
2    exemption is necessary to facilitate the marketing of its
3    spirits; and (5) that it will comply with the alcoholic
4    beverage and revenue laws of the United States, this
5    State, and any other state where it is licensed.
6        (C) Any application submitted shall be posted on the
7    State Commission's website at least 45 days before action
8    by the State Commission. The State Commission shall
9    approve the application for a self-distribution exemption
10    if the class 3 craft distiller licensee: (1) is in
11    compliance with the State, revenue, and alcoholic beverage
12    laws; (2) is not a member of any affiliated group that
13    manufacturers, directly or indirectly, more than 100,000
14    gallons of spirits per annum; (3) shall not annually
15    manufacture for sale more than 100,000 gallons of spirits;
16    and (4) shall not annually sell more than 5,000 gallons of
17    spirits in the aggregate from the class 3 craft
18    distiller's in-state or out-of-state class 3 craft
19    distillery premises to retail licensees and class 3
20    brewers and to brewers, class 1 brewers, class 2 brewers,
21    distillers, class 1 craft distillers, and class 2 craft
22    distillers that, pursuant to subsection (e) of Section 6-4
23    of this Act, sell beer, cider, spirits, or any combination
24    thereof to non-licensees at their distilleries.
25        (D) A self-distribution exemption holder shall
26    annually certify to the State Commission its manufacture

 

 

HB5504- 25 -LRB103 38154 RPS 68287 b

1    of spirits during the previous 12 months and its
2    anticipated manufacture and sales of spirits for the next
3    12 months. The State Commission may fine, suspend, or
4    revoke a self-distribution exemption after a hearing if it
5    finds that the exemption holder has made a material
6    misrepresentation in its application, violated a revenue
7    or alcoholic beverage law of Illinois, exceeded the
8    manufacture of 100,000 gallons of spirits in any calendar
9    year or became part of an affiliated group manufacturing
10    more than 100,000 gallons of spirits, or exceeded the sale
11    to retail licensees, brewers, class 1 brewers, class 2
12    brewers, class 3 brewers, distillers, class 1 craft
13    distillers, and class 2 craft distillers of 5,000 gallons
14    in the aggregate.
15        (E) The State Commission may adopt rules governing
16    self-distribution exemptions consistent with this Act.
17        (F) Nothing in this paragraph shall prohibit a
18    self-distribution exemption holder from entering into or
19    simultaneously having a distribution agreement with a
20    licensed Illinois importing distributor or a distributor.
21        (G) It is the intent of this paragraph to promote and
22    continue orderly markets. The General Assembly finds that
23    in order to preserve Illinois' regulatory distribution
24    system, it is necessary to create an exception for smaller
25    manufacturers in order to afford and allow such smaller
26    manufacturers of spirits access to the marketplace in

 

 

HB5504- 26 -LRB103 38154 RPS 68287 b

1    order to develop a customer base without impairing the
2    integrity of the 3-tier system.
3    (b) On or before April 30, 1999, the Commission shall
4present a written report to the Governor and the General
5Assembly that shall be based on a study of the impact of Public
6Act 90-739 on the business of soliciting, selling, and
7shipping alcoholic liquor from outside of this State directly
8to residents of this State.
9    As part of its report, the Commission shall provide the
10following information:
11        (i) the amount of State excise and sales tax revenues
12    generated as a result of Public Act 90-739;
13        (ii) the amount of licensing fees received as a result
14    of Public Act 90-739;
15        (iii) the number of reported violations, the number of
16    cease and desist notices issued by the Commission, the
17    number of notices of violations issued to the Department
18    of Revenue, and the number of notices and complaints of
19    violations to law enforcement officials.
20(Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19;
21101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff.
228-20-21; 102-813, eff. 5-13-22.)
 
23    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
24    Sec. 5-1. Licenses issued by the Illinois Liquor Control
25Commission shall be of the following classes:

 

 

HB5504- 27 -LRB103 38154 RPS 68287 b

1    (a) Manufacturer's license - Class 1. Distiller, Class 2.
2Rectifier, Class 3. Brewer, Class 4. First Class Wine
3Manufacturer, Class 5. Second Class Wine Manufacturer, Class
46. First Class Winemaker, Class 7. Second Class Winemaker,
5Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
6Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
7Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
8Class 14. Class 3 Brewer, Class 15. Class 3 Craft Distiller,
9    (b) Distributor's license,
10    (c) Importing Distributor's license,
11    (d) Retailer's license,
12    (e) Special Event Retailer's license (not-for-profit),
13    (f) Railroad license,
14    (g) Boat license,
15    (h) Non-Beverage User's license,
16    (i) Wine-maker's premises license,
17    (j) Airplane license,
18    (k) Foreign importer's license,
19    (l) Broker's license,
20    (m) Non-resident dealer's license,
21    (n) Brew Pub license,
22    (o) Auction liquor license,
23    (p) Caterer retailer license,
24    (q) Special use permit license,
25    (r) Winery shipper's license,
26    (s) Craft distiller tasting permit,

 

 

HB5504- 28 -LRB103 38154 RPS 68287 b

1    (t) Brewer warehouse permit,
2    (u) Distilling pub license,
3    (v) Craft distiller warehouse permit,
4    (w) Beer showcase permit, .
5    (x) Spirits showcase permit.
6    No person, firm, partnership, corporation, or other legal
7business entity that is engaged in the manufacturing of wine
8may concurrently obtain and hold a wine-maker's license and a
9wine manufacturer's license.
10    (a) A manufacturer's license shall allow the manufacture,
11importation in bulk, storage, distribution and sale of
12alcoholic liquor to persons without the State, as may be
13permitted by law and to licensees in this State as follows:
14    Class 1. A Distiller may make sales and deliveries of
15alcoholic liquor to distillers, rectifiers, importing
16distributors, distributors and non-beverage users and to no
17other licensees.
18    Class 2. A Rectifier, who is not a distiller, as defined
19herein, may make sales and deliveries of alcoholic liquor to
20rectifiers, importing distributors, distributors, retailers
21and non-beverage users and to no other licensees.
22    Class 3. A Brewer may make sales and deliveries of beer to
23importing distributors and distributors and may make sales as
24authorized under subsection (e) of Section 6-4 of this Act,
25including any alcoholic liquor that subsection (e) of Section
266-4 authorizes a brewer to sell in its original package only to

 

 

HB5504- 29 -LRB103 38154 RPS 68287 b

1a non-licensee for pick-up by a non-licensee either within the
2interior of the brewery premises or at outside of the brewery
3premises at a curb-side or parking lot adjacent to the brewery
4premises, subject to any local ordinance.
5    Class 4. A first class wine-manufacturer may make sales
6and deliveries of up to 50,000 gallons of wine to
7manufacturers, importing distributors and distributors, and to
8no other licensees. If a first-class wine-manufacturer
9manufactures beer, it shall also obtain and shall only be
10eligible for, in addition to any current license, a class 1
11brewer license, shall not manufacture more than 930,000
12gallons of beer per year, and shall not be a member of or
13affiliated with, directly or indirectly, a manufacturer that
14produces more than 930,000 gallons of beer per year. If the
15first-class wine-manufacturer manufactures spirits, it shall
16also obtain and shall only be eligible for, in addition to any
17current license, a class 1 craft distiller license, shall not
18manufacture more than 50,000 gallons of spirits per year, and
19shall not be a member of or affiliated with, directly or
20indirectly, a manufacturer that produces more than 50,000
21gallons of spirits per year. A first-class wine-manufacturer
22shall be permitted to sell wine manufactured at the
23first-class wine-manufacturer premises to non-licensees.
24    Class 5. A second class Wine manufacturer may make sales
25and deliveries of more than 50,000 gallons of wine to
26manufacturers, importing distributors and distributors and to

 

 

HB5504- 30 -LRB103 38154 RPS 68287 b

1no other licensees.
2    Class 6. A first-class wine-maker's license shall allow
3the manufacture of up to 50,000 gallons of wine per year, and
4the storage and sale of such wine to distributors in the State
5and to persons without the State, as may be permitted by law. A
6person who, prior to June 1, 2008 (the effective date of Public
7Act 95-634), is a holder of a first-class wine-maker's license
8and annually produces more than 25,000 gallons of its own wine
9and who distributes its wine to licensed retailers shall cease
10this practice on or before July 1, 2008 in compliance with
11Public Act 95-634. If a first-class wine-maker manufactures
12beer, it shall also obtain and shall only be eligible for, in
13addition to any current license, a class 1 brewer license,
14shall not manufacture more than 930,000 gallons of beer per
15year, and shall not be a member of or affiliated with, directly
16or indirectly, a manufacturer that produces more than 930,000
17gallons of beer per year. If the first-class wine-maker
18manufactures spirits, it shall also obtain and shall only be
19eligible for, in addition to any current license, a class 1
20craft distiller license, shall not manufacture more than
2150,000 gallons of spirits per year, and shall not be a member
22of or affiliated with, directly or indirectly, a manufacturer
23that produces more than 50,000 gallons of spirits per year. A
24first-class wine-maker holding a class 1 brewer license or a
25class 1 craft distiller license shall not be eligible for a
26wine-maker's premises license but shall be permitted to sell

 

 

HB5504- 31 -LRB103 38154 RPS 68287 b

1wine manufactured at the first-class wine-maker premises to
2non-licensees.
3    Class 7. A second-class wine-maker's license shall allow
4the manufacture of up to 150,000 gallons of wine per year, and
5the storage and sale of such wine to distributors in this State
6and to persons without the State, as may be permitted by law. A
7person who, prior to June 1, 2008 (the effective date of Public
8Act 95-634), is a holder of a second-class wine-maker's
9license and annually produces more than 25,000 gallons of its
10own wine and who distributes its wine to licensed retailers
11shall cease this practice on or before July 1, 2008 in
12compliance with Public Act 95-634. If a second-class
13wine-maker manufactures beer, it shall also obtain and shall
14only be eligible for, in addition to any current license, a
15class 2 brewer license, shall not manufacture more than
163,720,000 gallons of beer per year, and shall not be a member
17of or affiliated with, directly or indirectly, a manufacturer
18that produces more than 3,720,000 gallons of beer per year. If
19a second-class wine-maker manufactures spirits, it shall also
20obtain and shall only be eligible for, in addition to any
21current license, a class 2 craft distiller license, shall not
22manufacture more than 100,000 gallons of spirits per year, and
23shall not be a member of or affiliated with, directly or
24indirectly, a manufacturer that produces more than 100,000
25gallons of spirits per year.
26    Class 8. A limited wine-manufacturer may make sales and

 

 

HB5504- 32 -LRB103 38154 RPS 68287 b

1deliveries not to exceed 40,000 gallons of wine per year to
2distributors, and to non-licensees in accordance with the
3provisions of this Act.
4    Class 9. A craft distiller license, which may only be held
5by a class 1 craft distiller licensee or class 2 craft
6distiller licensee but not held by both a class 1 craft
7distiller licensee and a class 2 craft distiller licensee,
8shall grant all rights conveyed by either: (i) a class 1 craft
9distiller license if the craft distiller holds a class 1 craft
10distiller license; or (ii) a class 2 craft distiller licensee
11if the craft distiller holds a class 2 craft distiller
12license.
13    Class 10. A class 1 craft distiller license, which may
14only be issued to a licensed craft distiller or licensed
15non-resident dealer, shall allow the manufacture of up to
1650,000 gallons of spirits per year provided that the class 1
17craft distiller licensee does not manufacture more than a
18combined 50,000 gallons of spirits per year and is not a member
19of or affiliated with, directly or indirectly, a manufacturer
20that produces more than 50,000 gallons of spirits per year. If
21a class 1 craft distiller manufactures beer, it shall also
22obtain and shall only be eligible for, in addition to any
23current license, a class 1 brewer license, shall not
24manufacture more than 930,000 gallons of beer per year, and
25shall not be a member of or affiliated with, directly or
26indirectly, a manufacturer that produces more than 930,000

 

 

HB5504- 33 -LRB103 38154 RPS 68287 b

1gallons of beer per year. If a class 1 craft distiller
2manufactures wine, it shall also obtain and shall only be
3eligible for, in addition to any current license, a
4first-class wine-manufacturer license or a first-class
5wine-maker's license, shall not manufacture more than 50,000
6gallons of wine per year, and shall not be a member of or
7affiliated with, directly or indirectly, a manufacturer that
8produces more than 50,000 gallons of wine per year. A class 1
9craft distiller licensee may make sales and deliveries to
10importing distributors and distributors and to retail
11licensees in accordance with the conditions set forth in
12paragraph (19) of subsection (a) of Section 3-12 of this Act.
13However, the aggregate amount of spirits sold to non-licensees
14and sold or delivered to retail licensees may not exceed 5,000
15gallons per year.
16    A class 1 craft distiller licensee may sell up to 5,000
17gallons of such spirits to non-licensees to the extent
18permitted by any exemption approved by the State Commission
19pursuant to Section 6-4 of this Act. A class 1 craft distiller
20license holder may store such spirits at a non-contiguous
21licensed location, but at no time shall a class 1 craft
22distiller license holder directly or indirectly produce in the
23aggregate more than 50,000 gallons of spirits per year.
24    A class 1 craft distiller licensee may hold more than one
25class 1 craft distiller's license. However, a class 1 craft
26distiller that holds more than one class 1 craft distiller

 

 

HB5504- 34 -LRB103 38154 RPS 68287 b

1license shall not manufacture, in the aggregate, more than
250,000 gallons of spirits by distillation per year and shall
3not sell, in the aggregate, more than 5,000 gallons of such
4spirits to non-licensees in accordance with an exemption
5approved by the State Commission pursuant to Section 6-4 of
6this Act.
7    Class 11. A class 2 craft distiller license, which may
8only be issued to a licensed craft distiller or licensed
9non-resident dealer, shall allow the manufacture of up to
10100,000 gallons of spirits per year provided that the class 2
11craft distiller licensee does not manufacture more than a
12combined 100,000 gallons of spirits per year and is not a
13member of or affiliated with, directly or indirectly, a
14manufacturer that produces more than 100,000 gallons of
15spirits per year. If a class 2 craft distiller manufactures
16beer, it shall also obtain and shall only be eligible for, in
17addition to any current license, a class 2 brewer license,
18shall not manufacture more than 3,720,000 gallons of beer per
19year, and shall not be a member of or affiliated with, directly
20or indirectly, a manufacturer that produces more than
213,720,000 gallons of beer per year. If a class 2 craft
22distiller manufactures wine, it shall also obtain and shall
23only be eligible for, in addition to any current license, a
24second-class wine-maker's license, shall not manufacture more
25than 150,000 gallons of wine per year, and shall not be a
26member of or affiliated with, directly or indirectly, a

 

 

HB5504- 35 -LRB103 38154 RPS 68287 b

1manufacturer that produces more than 150,000 gallons of wine
2per year. A class 2 craft distiller licensee may make sales and
3deliveries to importing distributors and distributors, but
4shall not make sales or deliveries to any other licensee. If
5the State Commission provides prior approval, a class 2 craft
6distiller licensee may annually transfer up to 100,000 gallons
7of spirits manufactured by that class 2 craft distiller
8licensee to the premises of a licensed class 2 craft distiller
9wholly owned and operated by the same licensee. A class 2 craft
10distiller may transfer spirits to a distilling pub wholly
11owned and operated by the class 2 craft distiller subject to
12the following limitations and restrictions: (i) the transfer
13shall not annually exceed more than 5,000 gallons; (ii) the
14annual amount transferred shall reduce the distilling pub's
15annual permitted production limit; (iii) all spirits
16transferred shall be subject to Article VIII of this Act; (iv)
17a written record shall be maintained by the distiller and
18distilling pub specifying the amount, date of delivery, and
19receipt of the product by the distilling pub; and (v) the
20distilling pub shall be located no farther than 80 miles from
21the class 2 craft distiller's licensed location.
22    A class 2 craft distiller shall, prior to transferring
23spirits to a distilling pub wholly owned by the class 2 craft
24distiller, furnish a written notice to the State Commission of
25intent to transfer spirits setting forth the name and address
26of the distilling pub and shall annually submit to the State

 

 

HB5504- 36 -LRB103 38154 RPS 68287 b

1Commission a verified report identifying the total gallons of
2spirits transferred to the distilling pub wholly owned by the
3class 2 craft distiller.
4    A class 2 craft distiller license holder may store such
5spirits at a non-contiguous licensed location, but at no time
6shall a class 2 craft distiller license holder directly or
7indirectly produce in the aggregate more than 100,000 gallons
8of spirits per year.
9    Class 12. A class 1 brewer license, which may only be
10issued to a licensed brewer or licensed non-resident dealer,
11shall allow the manufacture of up to 930,000 gallons of beer
12per year provided that the class 1 brewer licensee does not
13manufacture more than a combined 930,000 gallons of beer per
14year and is not a member of or affiliated with, directly or
15indirectly, a manufacturer that produces more than 930,000
16gallons of beer per year. If a class 1 brewer manufactures
17spirits, it shall also obtain and shall only be eligible for,
18in addition to any current license, a class 1 craft distiller
19license, shall not manufacture more than 50,000 gallons of
20spirits per year, and shall not be a member of or affiliated
21with, directly or indirectly, a manufacturer that produces
22more than 50,000 gallons of spirits per year. If a class 1
23craft brewer manufactures wine, it shall also obtain and shall
24only be eligible for, in addition to any current license, a
25first-class wine-manufacturer license or a first-class
26wine-maker's license, shall not manufacture more than 50,000

 

 

HB5504- 37 -LRB103 38154 RPS 68287 b

1gallons of wine per year, and shall not be a member of or
2affiliated with, directly or indirectly, a manufacturer that
3produces more than 50,000 gallons of wine per year. A class 1
4brewer licensee may make sales and deliveries to importing
5distributors and distributors and to retail licensees in
6accordance with the conditions set forth in paragraph (18) of
7subsection (a) of Section 3-12 of this Act. If the State
8Commission provides prior approval, a class 1 brewer may
9annually transfer up to 930,000 gallons of beer manufactured
10by that class 1 brewer to the premises of a licensed class 1
11brewer wholly owned and operated by the same licensee.
12    Class 13. A class 2 brewer license, which may only be
13issued to a licensed brewer or licensed non-resident dealer,
14shall allow the manufacture of up to 3,720,000 gallons of beer
15per year provided that the class 2 brewer licensee does not
16manufacture more than a combined 3,720,000 gallons of beer per
17year and is not a member of or affiliated with, directly or
18indirectly, a manufacturer that produces more than 3,720,000
19gallons of beer per year. If a class 2 brewer manufactures
20spirits, it shall also obtain and shall only be eligible for,
21in addition to any current license, a class 2 craft distiller
22license, shall not manufacture more than 100,000 gallons of
23spirits per year, and shall not be a member of or affiliated
24with, directly or indirectly, a manufacturer that produces
25more than 100,000 gallons of spirits per year. If a class 2
26craft distiller manufactures wine, it shall also obtain and

 

 

HB5504- 38 -LRB103 38154 RPS 68287 b

1shall only be eligible for, in addition to any current
2license, a second-class wine-maker's license, shall not
3manufacture more than 150,000 gallons of wine per year, and
4shall not be a member of or affiliated with, directly or
5indirectly, a manufacturer that produces more than 150,000
6gallons of wine a year. A class 2 brewer licensee may make
7sales and deliveries to importing distributors and
8distributors, but shall not make sales or deliveries to any
9other licensee. If the State Commission provides prior
10approval, a class 2 brewer licensee may annually transfer up
11to 3,720,000 gallons of beer manufactured by that class 2
12brewer licensee to the premises of a licensed class 2 brewer
13wholly owned and operated by the same licensee.
14    A class 2 brewer may transfer beer to a brew pub wholly
15owned and operated by the class 2 brewer subject to the
16following limitations and restrictions: (i) the transfer shall
17not annually exceed more than 31,000 gallons; (ii) the annual
18amount transferred shall reduce the brew pub's annual
19permitted production limit; (iii) all beer transferred shall
20be subject to Article VIII of this Act; (iv) a written record
21shall be maintained by the brewer and brew pub specifying the
22amount, date of delivery, and receipt of the product by the
23brew pub; and (v) the brew pub shall be located no farther than
2480 miles from the class 2 brewer's licensed location.
25    A class 2 brewer shall, prior to transferring beer to a
26brew pub wholly owned by the class 2 brewer, furnish a written

 

 

HB5504- 39 -LRB103 38154 RPS 68287 b

1notice to the State Commission of intent to transfer beer
2setting forth the name and address of the brew pub and shall
3annually submit to the State Commission a verified report
4identifying the total gallons of beer transferred to the brew
5pub wholly owned by the class 2 brewer.
6    Class 14. A class 3 brewer license, which may be issued to
7a brewer or a non-resident dealer, shall allow the manufacture
8of no more than 465,000 gallons of beer per year and no more
9than 155,000 gallons at a single brewery premises, and shall
10allow the sale of no more than 6,200 gallons of beer from each
11in-state or out-of-state class 3 brewery premises, or 18,600
12gallons in the aggregate, to retail licensees, class 1
13brewers, class 2 brewers, and class 3 brewers as long as the
14class 3 brewer licensee does not manufacture more than a
15combined 465,000 gallons of beer per year and is not a member
16of or affiliated with, directly or indirectly, a manufacturer
17that produces more than 465,000 gallons of beer per year to
18make sales to importing distributors, distributors, retail
19licensees, brewers, class 1 brewers, class 2 brewers, and
20class 3 brewers in accordance with the conditions set forth in
21paragraph (20) of subsection (a) of Section 3-12. If the State
22Commission provides prior approval, a class 3 brewer may
23annually transfer up to 155,000 gallons of beer manufactured
24by that class 3 brewer to the premises of a licensed class 3
25brewer wholly owned and operated by the same licensee. A class
263 brewer shall manufacture beer at the brewer's class 3

 

 

HB5504- 40 -LRB103 38154 RPS 68287 b

1designated licensed premises, and may sell beer as otherwise
2provided in this Act.
3    Class 15. A class 3 craft distiller license, which may be
4issued to a distiller or a non-resident dealer, shall allow
5the manufacture of no more than 100,000 gallons of spirits per
6year and shall allow the sale of no more than 5,000 gallons of
7spirits in the aggregate from the class 3 craft distiller's
8in-state or out-of-state class 3 craft distillery premises to
9retail licensees, class 3 brewers, and class 3 craft
10distillers as long as the class 3 craft distiller licensee
11does not manufacture more than a combined 100,000 gallons of
12spirits per year and is not a member of or affiliated with,
13directly or indirectly, a manufacturer that produces more than
14100,000 gallons of spirits per year and to make sales to
15importing distributors, distributors, retail licensees, class
163 brewers, and class 3 craft distillers in accordance with the
17conditions set forth in paragraph (21) of subsection (a) of
18Section 3-12. If the State Commission provides prior approval,
19a class 3 craft distiller may annually transfer up to 5,000
20gallons of spirits manufactured by that class 3 craft
21distiller to the premises of a licensed class 3 craft
22distiller wholly owned and operated by the same licensee. A
23class 3 craft distiller shall manufacture spirits at the
24distiller's class 3 designated licensed premises and may sell
25spirits as otherwise provided in this Act.
26    (a-1) A manufacturer which is licensed in this State to

 

 

HB5504- 41 -LRB103 38154 RPS 68287 b

1make sales or deliveries of alcoholic liquor to licensed
2distributors or importing distributors and which enlists
3agents, representatives, or individuals acting on its behalf
4who contact licensed retailers on a regular and continual
5basis in this State must register those agents,
6representatives, or persons acting on its behalf with the
7State Commission.
8    Registration of agents, representatives, or persons acting
9on behalf of a manufacturer is fulfilled by submitting a form
10to the Commission. The form shall be developed by the
11Commission and shall include the name and address of the
12applicant, the name and address of the manufacturer he or she
13represents, the territory or areas assigned to sell to or
14discuss pricing terms of alcoholic liquor, and any other
15questions deemed appropriate and necessary. All statements in
16the forms required to be made by law or by rule shall be deemed
17material, and any person who knowingly misstates any material
18fact under oath in an application is guilty of a Class B
19misdemeanor. Fraud, misrepresentation, false statements,
20misleading statements, evasions, or suppression of material
21facts in the securing of a registration are grounds for
22suspension or revocation of the registration. The State
23Commission shall post a list of registered agents on the
24Commission's website.
25    (b) A distributor's license shall allow (i) the wholesale
26purchase and storage of alcoholic liquors and sale of

 

 

HB5504- 42 -LRB103 38154 RPS 68287 b

1alcoholic liquors to licensees in this State and to persons
2without the State, as may be permitted by law; (ii) the sale of
3beer, cider, mead, or any combination thereof to brewers,
4class 1 brewers, and class 2 brewers that, pursuant to
5subsection (e) of Section 6-4 of this Act, sell beer, cider,
6mead, or any combination thereof to non-licensees at their
7breweries; (iii) the sale of vermouth to class 1 craft
8distillers and class 2 craft distillers that, pursuant to
9subsection (e) of Section 6-4 of this Act, sell spirits,
10vermouth, or both spirits and vermouth to non-licensees at
11their distilleries; or (iv) as otherwise provided in this Act.
12No person licensed as a distributor shall be granted a
13non-resident dealer's license.
14    (c) An importing distributor's license may be issued to
15and held by those only who are duly licensed distributors,
16upon the filing of an application by a duly licensed
17distributor, with the Commission and the Commission shall,
18without the payment of any fee, immediately issue such
19importing distributor's license to the applicant, which shall
20allow the importation of alcoholic liquor by the licensee into
21this State from any point in the United States outside this
22State, and the purchase of alcoholic liquor in barrels, casks
23or other bulk containers and the bottling of such alcoholic
24liquors before resale thereof, but all bottles or containers
25so filled shall be sealed, labeled, stamped and otherwise made
26to comply with all provisions, rules and regulations governing

 

 

HB5504- 43 -LRB103 38154 RPS 68287 b

1manufacturers in the preparation and bottling of alcoholic
2liquors. The importing distributor's license shall permit such
3licensee to purchase alcoholic liquor from Illinois licensed
4non-resident dealers and foreign importers only. No person
5licensed as an importing distributor shall be granted a
6non-resident dealer's license.
7    (d) A retailer's license shall allow the licensee to sell
8and offer for sale at retail, only in the premises specified in
9the license, alcoholic liquor for use or consumption, but not
10for resale in any form. Except as provided in Section 6-16,
116-29, or 6-29.1, nothing in this Act shall deny, limit,
12remove, or restrict the ability of a holder of a retailer's
13license to transfer or ship alcoholic liquor to the purchaser
14for use or consumption subject to any applicable local law or
15ordinance. For the purposes of this Section, "shipping" means
16the movement of alcoholic liquor from a licensed retailer to a
17consumer via a common carrier. Except as provided in Section
186-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,
19remove, or restrict the ability of a holder of a retailer's
20license to deliver alcoholic liquor to the purchaser for use
21or consumption. The delivery shall be made only within 12
22hours from the time the alcoholic liquor leaves the licensed
23premises of the retailer for delivery. For the purposes of
24this Section, "delivery" means the movement of alcoholic
25liquor purchased from a licensed retailer to a consumer
26through the following methods:

 

 

HB5504- 44 -LRB103 38154 RPS 68287 b

1        (1) delivery within licensed retailer's parking lot,
2    including curbside, for pickup by the consumer;
3        (2) delivery by an owner, officer, director,
4    shareholder, or employee of the licensed retailer; or
5        (3) delivery by a third-party contractor, independent
6    contractor, or agent with whom the licensed retailer has
7    contracted to make deliveries of alcoholic liquors.
8    Under subsection (1), (2), or (3), delivery shall not
9include the use of common carriers.
10    Any retail license issued to a manufacturer shall only
11permit the manufacturer to sell beer at retail on the premises
12actually occupied by the manufacturer. For the purpose of
13further describing the type of business conducted at a retail
14licensed premises, a retailer's licensee may be designated by
15the State Commission as (i) an on premise consumption
16retailer, (ii) an off premise sale retailer, or (iii) a
17combined on premise consumption and off premise sale retailer.
18    Except for a municipality with a population of more than
191,000,000 inhabitants, a home rule unit may not regulate the
20delivery of alcoholic liquor inconsistent with this
21subsection. This paragraph is a limitation under subsection
22(i) of Section 6 of Article VII of the Illinois Constitution on
23the concurrent exercise by home rule units of powers and
24functions exercised by the State. A non-home rule municipality
25may not regulate the delivery of alcoholic liquor inconsistent
26with this subsection.

 

 

HB5504- 45 -LRB103 38154 RPS 68287 b

1    Notwithstanding any other provision of this subsection
2(d), a retail licensee may sell alcoholic liquors to a special
3event retailer licensee for resale to the extent permitted
4under subsection (e).
5    (e) A special event retailer's license (not-for-profit)
6shall permit the licensee to purchase alcoholic liquors from
7an Illinois licensed distributor (unless the licensee
8purchases less than $500 of alcoholic liquors for the special
9event, in which case the licensee may purchase the alcoholic
10liquors from a licensed retailer) and shall allow the licensee
11to sell and offer for sale, at retail, alcoholic liquors for
12use or consumption, but not for resale in any form and only at
13the location and on the specific dates designated for the
14special event in the license. An applicant for a special event
15retailer license must (i) furnish with the application: (A) a
16resale number issued under Section 2c of the Retailers'
17Occupation Tax Act or evidence that the applicant is
18registered under Section 2a of the Retailers' Occupation Tax
19Act, (B) a current, valid exemption identification number
20issued under Section 1g of the Retailers' Occupation Tax Act,
21and a certification to the Commission that the purchase of
22alcoholic liquors will be a tax-exempt purchase, or (C) a
23statement that the applicant is not registered under Section
242a of the Retailers' Occupation Tax Act, does not hold a resale
25number under Section 2c of the Retailers' Occupation Tax Act,
26and does not hold an exemption number under Section 1g of the

 

 

HB5504- 46 -LRB103 38154 RPS 68287 b

1Retailers' Occupation Tax Act, in which event the Commission
2shall set forth on the special event retailer's license a
3statement to that effect; (ii) submit with the application
4proof satisfactory to the State Commission that the applicant
5will provide dram shop liability insurance in the maximum
6limits; and (iii) show proof satisfactory to the State
7Commission that the applicant has obtained local authority
8approval.
9    Nothing in this Act prohibits an Illinois licensed
10distributor from offering credit or a refund for unused,
11salable alcoholic liquors to a holder of a special event
12retailer's license or the special event retailer's licensee
13from accepting the credit or refund of alcoholic liquors at
14the conclusion of the event specified in the license.
15    (f) A railroad license shall permit the licensee to import
16alcoholic liquors into this State from any point in the United
17States outside this State and to store such alcoholic liquors
18in this State; to make wholesale purchases of alcoholic
19liquors directly from manufacturers, foreign importers,
20distributors and importing distributors from within or outside
21this State; and to store such alcoholic liquors in this State;
22provided that the above powers may be exercised only in
23connection with the importation, purchase or storage of
24alcoholic liquors to be sold or dispensed on a club, buffet,
25lounge or dining car operated on an electric, gas or steam
26railway in this State; and provided further, that railroad

 

 

HB5504- 47 -LRB103 38154 RPS 68287 b

1licensees exercising the above powers shall be subject to all
2provisions of Article VIII of this Act as applied to importing
3distributors. A railroad license shall also permit the
4licensee to sell or dispense alcoholic liquors on any club,
5buffet, lounge or dining car operated on an electric, gas or
6steam railway regularly operated by a common carrier in this
7State, but shall not permit the sale for resale of any
8alcoholic liquors to any licensee within this State. A license
9shall be obtained for each car in which such sales are made.
10    (g) A boat license shall allow the sale of alcoholic
11liquor in individual drinks, on any passenger boat regularly
12operated as a common carrier on navigable waters in this State
13or on any riverboat operated under the Illinois Gambling Act,
14which boat or riverboat maintains a public dining room or
15restaurant thereon.
16    (h) A non-beverage user's license shall allow the licensee
17to purchase alcoholic liquor from a licensed manufacturer or
18importing distributor, without the imposition of any tax upon
19the business of such licensed manufacturer or importing
20distributor as to such alcoholic liquor to be used by such
21licensee solely for the non-beverage purposes set forth in
22subsection (a) of Section 8-1 of this Act, and such licenses
23shall be divided and classified and shall permit the purchase,
24possession and use of limited and stated quantities of
25alcoholic liquor as follows:
26Class 1, not to exceed ......................... 500 gallons

 

 

HB5504- 48 -LRB103 38154 RPS 68287 b

1Class 2, not to exceed ....................... 1,000 gallons
2Class 3, not to exceed ....................... 5,000 gallons
3Class 4, not to exceed ...................... 10,000 gallons
4Class 5, not to exceed ....................... 50,000 gallons
5    (i) A wine-maker's premises license shall allow a licensee
6that concurrently holds a first-class wine-maker's license to
7sell and offer for sale at retail in the premises specified in
8such license not more than 50,000 gallons of the first-class
9wine-maker's wine that is made at the first-class wine-maker's
10licensed premises per year for use or consumption, but not for
11resale in any form. A wine-maker's premises license shall
12allow a licensee who concurrently holds a second-class
13wine-maker's license to sell and offer for sale at retail in
14the premises specified in such license up to 100,000 gallons
15of the second-class wine-maker's wine that is made at the
16second-class wine-maker's licensed premises per year for use
17or consumption but not for resale in any form. A first-class
18wine-maker that concurrently holds a class 1 brewer license or
19a class 1 craft distiller license shall not be eligible to hold
20a wine-maker's premises license. A wine-maker's premises
21license shall allow a licensee that concurrently holds a
22first-class wine-maker's license or a second-class
23wine-maker's license to sell and offer for sale at retail at
24the premises specified in the wine-maker's premises license,
25for use or consumption but not for resale in any form, any
26beer, wine, and spirits purchased from a licensed distributor.

 

 

HB5504- 49 -LRB103 38154 RPS 68287 b

1Upon approval from the State Commission, a wine-maker's
2premises license shall allow the licensee to sell and offer
3for sale at (i) the wine-maker's licensed premises and (ii) at
4up to 2 additional locations for use and consumption and not
5for resale. Each location shall require additional licensing
6per location as specified in Section 5-3 of this Act. A
7wine-maker's premises licensee shall secure liquor liability
8insurance coverage in an amount at least equal to the maximum
9liability amounts set forth in subsection (a) of Section 6-21
10of this Act.
11    (j) An airplane license shall permit the licensee to
12import alcoholic liquors into this State from any point in the
13United States outside this State and to store such alcoholic
14liquors in this State; to make wholesale purchases of
15alcoholic liquors directly from manufacturers, foreign
16importers, distributors and importing distributors from within
17or outside this State; and to store such alcoholic liquors in
18this State; provided that the above powers may be exercised
19only in connection with the importation, purchase or storage
20of alcoholic liquors to be sold or dispensed on an airplane;
21and provided further, that airplane licensees exercising the
22above powers shall be subject to all provisions of Article
23VIII of this Act as applied to importing distributors. An
24airplane licensee shall also permit the sale or dispensing of
25alcoholic liquors on any passenger airplane regularly operated
26by a common carrier in this State, but shall not permit the

 

 

HB5504- 50 -LRB103 38154 RPS 68287 b

1sale for resale of any alcoholic liquors to any licensee
2within this State. A single airplane license shall be required
3of an airline company if liquor service is provided on board
4aircraft in this State. The annual fee for such license shall
5be as determined in Section 5-3.
6    (k) A foreign importer's license shall permit such
7licensee to purchase alcoholic liquor from Illinois licensed
8non-resident dealers only, and to import alcoholic liquor
9other than in bulk from any point outside the United States and
10to sell such alcoholic liquor to Illinois licensed importing
11distributors and to no one else in Illinois; provided that (i)
12the foreign importer registers with the State Commission every
13brand of alcoholic liquor that it proposes to sell to Illinois
14licensees during the license period, (ii) the foreign importer
15complies with all of the provisions of Section 6-9 of this Act
16with respect to registration of such Illinois licensees as may
17be granted the right to sell such brands at wholesale, and
18(iii) the foreign importer complies with the provisions of
19Sections 6-5 and 6-6 of this Act to the same extent that these
20provisions apply to manufacturers.
21    (l) (i) A broker's license shall be required of all
22persons who solicit orders for, offer to sell or offer to
23supply alcoholic liquor to retailers in the State of Illinois,
24or who offer to retailers to ship or cause to be shipped or to
25make contact with distillers, craft distillers, rectifiers,
26brewers or manufacturers or any other party within or without

 

 

HB5504- 51 -LRB103 38154 RPS 68287 b

1the State of Illinois in order that alcoholic liquors be
2shipped to a distributor, importing distributor or foreign
3importer, whether such solicitation or offer is consummated
4within or without the State of Illinois.
5    No holder of a retailer's license issued by the Illinois
6Liquor Control Commission shall purchase or receive any
7alcoholic liquor, the order for which was solicited or offered
8for sale to such retailer by a broker unless the broker is the
9holder of a valid broker's license.
10    The broker shall, upon the acceptance by a retailer of the
11broker's solicitation of an order or offer to sell or supply or
12deliver or have delivered alcoholic liquors, promptly forward
13to the Illinois Liquor Control Commission a notification of
14said transaction in such form as the Commission may by
15regulations prescribe.
16    (ii) A broker's license shall be required of a person
17within this State, other than a retail licensee, who, for a fee
18or commission, promotes, solicits, or accepts orders for
19alcoholic liquor, for use or consumption and not for resale,
20to be shipped from this State and delivered to residents
21outside of this State by an express company, common carrier,
22or contract carrier. This Section does not apply to any person
23who promotes, solicits, or accepts orders for wine as
24specifically authorized in Section 6-29 of this Act.
25    A broker's license under this subsection (l) shall not
26entitle the holder to buy or sell any alcoholic liquors for his

 

 

HB5504- 52 -LRB103 38154 RPS 68287 b

1own account or to take or deliver title to such alcoholic
2liquors.
3    This subsection (l) shall not apply to distributors,
4employees of distributors, or employees of a manufacturer who
5has registered the trademark, brand or name of the alcoholic
6liquor pursuant to Section 6-9 of this Act, and who regularly
7sells such alcoholic liquor in the State of Illinois only to
8its registrants thereunder.
9    Any agent, representative, or person subject to
10registration pursuant to subsection (a-1) of this Section
11shall not be eligible to receive a broker's license.
12    (m) A non-resident dealer's license shall permit such
13licensee to ship into and warehouse alcoholic liquor into this
14State from any point outside of this State, and to sell such
15alcoholic liquor to Illinois licensed foreign importers and
16importing distributors and to no one else in this State;
17provided that (i) said non-resident dealer shall register with
18the Illinois Liquor Control Commission each and every brand of
19alcoholic liquor which it proposes to sell to Illinois
20licensees during the license period, (ii) it shall comply with
21all of the provisions of Section 6-9 hereof with respect to
22registration of such Illinois licensees as may be granted the
23right to sell such brands at wholesale by duly filing such
24registration statement, thereby authorizing the non-resident
25dealer to proceed to sell such brands at wholesale, and (iii)
26the non-resident dealer shall comply with the provisions of

 

 

HB5504- 53 -LRB103 38154 RPS 68287 b

1Sections 6-5 and 6-6 of this Act to the same extent that these
2provisions apply to manufacturers. No person licensed as a
3non-resident dealer shall be granted a distributor's or
4importing distributor's license.
5    (n) A brew pub license shall allow the licensee to only (i)
6manufacture up to 155,000 gallons of beer per year only on the
7premises specified in the license, (ii) make sales of the beer
8manufactured on the premises or, with the approval of the
9Commission, beer manufactured on another brew pub licensed
10premises that is wholly owned and operated by the same
11licensee to importing distributors, distributors, and to
12non-licensees for use and consumption, (iii) store the beer
13upon the premises, (iv) sell and offer for sale at retail from
14the licensed premises for off-premises consumption no more
15than 155,000 gallons per year so long as such sales are only
16made in-person, (v) sell and offer for sale at retail for use
17and consumption on the premises specified in the license any
18form of alcoholic liquor purchased from a licensed distributor
19or importing distributor, (vi) with the prior approval of the
20Commission, annually transfer no more than 155,000 gallons of
21beer manufactured on the premises to a licensed brew pub
22wholly owned and operated by the same licensee, and (vii)
23notwithstanding item (i) of this subsection, brew pubs wholly
24owned and operated by the same licensee may combine each
25location's production limit of 155,000 gallons of beer per
26year and allocate the aggregate total between the wholly

 

 

HB5504- 54 -LRB103 38154 RPS 68287 b

1owned, operated, and licensed locations.
2    A brew pub licensee shall not under any circumstance sell
3or offer for sale beer manufactured by the brew pub licensee to
4retail licensees.
5    A person who holds a class 2 brewer license may
6simultaneously hold a brew pub license if the class 2 brewer
7(i) does not, under any circumstance, sell or offer for sale
8beer manufactured by the class 2 brewer to retail licensees;
9(ii) does not hold more than 3 brew pub licenses in this State;
10(iii) does not manufacture more than a combined 3,720,000
11gallons of beer per year, including the beer manufactured at
12the brew pub; and (iv) is not a member of or affiliated with,
13directly or indirectly, a manufacturer that produces more than
143,720,000 gallons of beer per year or any other alcoholic
15liquor.
16    Notwithstanding any other provision of this Act, a
17licensed brewer, class 2 brewer, or non-resident dealer who
18before July 1, 2015 manufactured less than 3,720,000 gallons
19of beer per year and held a brew pub license on or before July
201, 2015 may (i) continue to qualify for and hold that brew pub
21license for the licensed premises and (ii) manufacture more
22than 3,720,000 gallons of beer per year and continue to
23qualify for and hold that brew pub license if that brewer,
24class 2 brewer, or non-resident dealer does not simultaneously
25hold a class 1 brewer license and is not a member of or
26affiliated with, directly or indirectly, a manufacturer that

 

 

HB5504- 55 -LRB103 38154 RPS 68287 b

1produces more than 3,720,000 gallons of beer per year or that
2produces any other alcoholic liquor.
3    A brew pub licensee may apply for a class 3 brewer license
4and, upon meeting all applicable qualifications of this Act
5and relinquishing all commonly owned brew pub or retail
6licenses, shall be issued a class 3 brewer license. Nothing in
7this Act shall prohibit the issuance of a class 3 brewer
8license if the applicant:
9        (1) has a valid retail license on or before May 1,
10    2021;
11        (2) has an ownership interest in at least two brew
12    pubs licenses on or before May 1, 2021;
13        (3) the brew pub licensee applies for a class 3 brewer
14    license on or before October 1, 2022 and relinquishes all
15    commonly owned brew pub licenses; and
16        (4) relinquishes all commonly owned retail licenses on
17    or before December 31, 2022.
18    If a brew pub licensee is issued a class 3 brewer license,
19the class 3 brewer license shall expire on the same date as the
20existing brew pub license and the State Commission shall not
21require a class 3 brewer licensee to obtain a brewer license,
22or in the alternative to pay a fee for a brewer license, until
23the date the brew pub license of the applicant would have
24expired.
25    (o) A caterer retailer license shall allow the holder to
26serve alcoholic liquors as an incidental part of a food

 

 

HB5504- 56 -LRB103 38154 RPS 68287 b

1service that serves prepared meals which excludes the serving
2of snacks as the primary meal, either on or off-site whether
3licensed or unlicensed. A caterer retailer license shall allow
4the holder, a distributor, or an importing distributor to
5transfer any inventory to and from the holder's retail
6premises and shall allow the holder to purchase alcoholic
7liquor from a distributor or importing distributor to be
8delivered directly to an off-site event.
9    Nothing in this Act prohibits a distributor or importing
10distributor from offering credit or a refund for unused,
11salable beer to a holder of a caterer retailer license or a
12caterer retailer licensee from accepting a credit or refund
13for unused, salable beer, in the event an act of God is the
14sole reason an off-site event is cancelled and if: (i) the
15holder of a caterer retailer license has not transferred
16alcoholic liquor from its caterer retailer premises to an
17off-site location; (ii) the distributor or importing
18distributor offers the credit or refund for the unused,
19salable beer that it delivered to the off-site premises and
20not for any unused, salable beer that the distributor or
21importing distributor delivered to the caterer retailer's
22premises; and (iii) the unused, salable beer would likely
23spoil if transferred to the caterer retailer's premises. A
24caterer retailer license shall allow the holder to transfer
25any inventory from any off-site location to its caterer
26retailer premises at the conclusion of an off-site event or

 

 

HB5504- 57 -LRB103 38154 RPS 68287 b

1engage a distributor or importing distributor to transfer any
2inventory from any off-site location to its caterer retailer
3premises at the conclusion of an off-site event, provided that
4the distributor or importing distributor issues bona fide
5charges to the caterer retailer licensee for fuel, labor, and
6delivery and the distributor or importing distributor collects
7payment from the caterer retailer licensee prior to the
8distributor or importing distributor transferring inventory to
9the caterer retailer premises.
10    For purposes of this subsection (o), an "act of God" means
11an unforeseeable event, such as a rain or snow storm, hail, a
12flood, or a similar event, that is the sole cause of the
13cancellation of an off-site, outdoor event.
14    (p) An auction liquor license shall allow the licensee to
15sell and offer for sale at auction wine and spirits for use or
16consumption, or for resale by an Illinois liquor licensee in
17accordance with provisions of this Act. An auction liquor
18license will be issued to a person and it will permit the
19auction liquor licensee to hold the auction anywhere in the
20State. An auction liquor license must be obtained for each
21auction at least 14 days in advance of the auction date.
22    (q) A special use permit license shall allow an Illinois
23licensed retailer to transfer a portion of its alcoholic
24liquor inventory from its retail licensed premises to the
25premises specified in the license hereby created; to purchase
26alcoholic liquor from a distributor or importing distributor

 

 

HB5504- 58 -LRB103 38154 RPS 68287 b

1to be delivered directly to the location specified in the
2license hereby created; and to sell or offer for sale at
3retail, only in the premises specified in the license hereby
4created, the transferred or delivered alcoholic liquor for use
5or consumption, but not for resale in any form. A special use
6permit license may be granted for the following time periods:
7one day or less; 2 or more days to a maximum of 15 days per
8location in any 12-month period. An applicant for the special
9use permit license must also submit with the application proof
10satisfactory to the State Commission that the applicant will
11provide dram shop liability insurance to the maximum limits
12and have local authority approval.
13    A special use permit license shall allow the holder to
14transfer any inventory from the holder's special use premises
15to its retail premises at the conclusion of the special use
16event or engage a distributor or importing distributor to
17transfer any inventory from the holder's special use premises
18to its retail premises at the conclusion of an off-site event,
19provided that the distributor or importing distributor issues
20bona fide charges to the special use permit licensee for fuel,
21labor, and delivery and the distributor or importing
22distributor collects payment from the retail licensee prior to
23the distributor or importing distributor transferring
24inventory to the retail premises.
25    Nothing in this Act prohibits a distributor or importing
26distributor from offering credit or a refund for unused,

 

 

HB5504- 59 -LRB103 38154 RPS 68287 b

1salable beer to a special use permit licensee or a special use
2permit licensee from accepting a credit or refund for unused,
3salable beer at the conclusion of the event specified in the
4license if: (i) the holder of the special use permit license
5has not transferred alcoholic liquor from its retail licensed
6premises to the premises specified in the special use permit
7license; (ii) the distributor or importing distributor offers
8the credit or refund for the unused, salable beer that it
9delivered to the premises specified in the special use permit
10license and not for any unused, salable beer that the
11distributor or importing distributor delivered to the
12retailer's premises; and (iii) the unused, salable beer would
13likely spoil if transferred to the retailer premises.
14    (r) A winery shipper's license shall allow a person with a
15first-class or second-class wine manufacturer's license, a
16first-class or second-class wine-maker's license, or a limited
17wine manufacturer's license or who is licensed to make wine
18under the laws of another state to ship wine made by that
19licensee directly to a resident of this State who is 21 years
20of age or older for that resident's personal use and not for
21resale. Prior to receiving a winery shipper's license, an
22applicant for the license must provide the Commission with a
23true copy of its current license in any state in which it is
24licensed as a manufacturer of wine. An applicant for a winery
25shipper's license must also complete an application form that
26provides any other information the Commission deems necessary.

 

 

HB5504- 60 -LRB103 38154 RPS 68287 b

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

 

 

HB5504- 61 -LRB103 38154 RPS 68287 b

1indirectly through a third-party provider, from the licensee's
2own production.
3    Except for a common carrier, a third-party provider
4shipping wine on behalf of a winery shipper's license holder
5is the agent of the winery shipper's license holder and, as
6such, a winery shipper's license holder is responsible for the
7acts and omissions of the third-party provider acting on
8behalf of the license holder. A third-party provider, except
9for a common carrier, that engages in shipping wine into
10Illinois on behalf of a winery shipper's license holder shall
11consent to the jurisdiction of the State Commission and the
12State. Any third-party, except for a common carrier, holding
13such an appointment shall, by February 1 of each calendar year
14and upon request by the State Commission or the Department of
15Revenue, file with the State Commission a statement detailing
16each shipment made to an Illinois resident. The statement
17shall include the name and address of the third-party provider
18filing the statement, the time period covered by the
19statement, and the following information:
20        (1) the name, address, and license number of the
21    winery shipper on whose behalf the shipment was made;
22        (2) the quantity of the products delivered; and
23        (3) the date and address of the shipment.
24If the Department of Revenue or the State Commission requests
25a statement under this paragraph, the third-party provider
26must provide that statement no later than 30 days after the

 

 

HB5504- 62 -LRB103 38154 RPS 68287 b

1request is made. Any books, records, supporting papers, and
2documents containing information and data relating to a
3statement under this paragraph shall be kept and preserved for
4a period of 3 years, unless their destruction sooner is
5authorized, in writing, by the Director of Revenue, and shall
6be open and available to inspection by the Director of Revenue
7or the State Commission or any duly authorized officer, agent,
8or employee of the State Commission or the Department of
9Revenue, at all times during business hours of the day. Any
10person who violates any provision of this paragraph or any
11rule of the State Commission for the administration and
12enforcement of the provisions of this paragraph is guilty of a
13Class C misdemeanor. In case of a continuing violation, each
14day's continuance thereof shall be a separate and distinct
15offense.
16    The State Commission shall adopt rules as soon as
17practicable to implement the requirements of Public Act 99-904
18and shall adopt rules prohibiting any such third-party
19appointment of a third-party provider, except for a common
20carrier, that has been deemed by the State Commission to have
21violated the provisions of this Act with regard to any winery
22shipper licensee.
23    A winery shipper licensee must pay to the Department of
24Revenue the State liquor gallonage tax under Section 8-1 for
25all wine that is sold by the licensee and shipped to a person
26in this State. For the purposes of Section 8-1, a winery

 

 

HB5504- 63 -LRB103 38154 RPS 68287 b

1shipper licensee shall be taxed in the same manner as a
2manufacturer of wine. A licensee who is not otherwise required
3to register under the Retailers' Occupation Tax Act must
4register under the Use Tax Act to collect and remit use tax to
5the Department of Revenue for all gallons of wine that are sold
6by the licensee and shipped to persons in this State. If a
7licensee fails to remit the tax imposed under this Act in
8accordance with the provisions of Article VIII of this Act,
9the winery shipper's license shall be revoked in accordance
10with the provisions of Article VII of this Act. If a licensee
11fails to properly register and remit tax under the Use Tax Act
12or the Retailers' Occupation Tax Act for all wine that is sold
13by the winery shipper and shipped to persons in this State, the
14winery shipper's license shall be revoked in accordance with
15the provisions of Article VII of this Act.
16    A winery shipper licensee must collect, maintain, and
17submit to the Commission on a semi-annual basis the total
18number of cases per resident of wine shipped to residents of
19this State. A winery shipper licensed under this subsection
20(r) must comply with the requirements of Section 6-29 of this
21Act.
22    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
23Section 3-12, the State Commission may receive, respond to,
24and investigate any complaint and impose any of the remedies
25specified in paragraph (1) of subsection (a) of Section 3-12.
26    As used in this subsection, "third-party provider" means

 

 

HB5504- 64 -LRB103 38154 RPS 68287 b

1any entity that provides fulfillment house services, including
2warehousing, packaging, distribution, order processing, or
3shipment of wine, but not the sale of wine, on behalf of a
4licensed winery shipper.
5    (s) A craft distiller tasting permit license shall allow
6an Illinois licensed class 1 craft distiller or class 2 craft
7distiller to transfer a portion of its alcoholic liquor
8inventory from its class 1 craft distiller or class 2 craft
9distiller licensed premises to the premises specified in the
10license hereby created and to conduct a sampling, only in the
11premises specified in the license hereby created, of the
12transferred alcoholic liquor in accordance with subsection (c)
13of Section 6-31 of this Act. The transferred alcoholic liquor
14may not be sold or resold in any form. An applicant for the
15craft distiller tasting permit license must also submit with
16the application proof satisfactory to the State Commission
17that the applicant will provide dram shop liability insurance
18to the maximum limits and have local authority approval.
19    (t) A brewer warehouse permit may be issued to the holder
20of a class 1 brewer license or a class 2 brewer license. If the
21holder of the permit is a class 1 brewer licensee, the brewer
22warehouse permit shall allow the holder to store or warehouse
23up to 930,000 gallons of tax-determined beer manufactured by
24the holder of the permit at the premises specified on the
25permit. If the holder of the permit is a class 2 brewer
26licensee, the brewer warehouse permit shall allow the holder

 

 

HB5504- 65 -LRB103 38154 RPS 68287 b

1to store or warehouse up to 3,720,000 gallons of
2tax-determined beer manufactured by the holder of the permit
3at the premises specified on the permit. Sales to
4non-licensees are prohibited at the premises specified in the
5brewer warehouse permit.
6    (u) A distilling pub license shall allow the licensee to
7only (i) manufacture up to 10,000 5,000 gallons of spirits per
8year only on the premises specified in the license, (ii) make
9sales of the spirits manufactured on the premises or, with the
10approval of the State Commission, spirits manufactured on
11another distilling pub licensed premises that is wholly owned
12and operated by the same licensee to importing distributors
13and distributors and to non-licensees for use and consumption,
14(iii) store the spirits upon the premises, (iv) sell and offer
15for sale at retail from the licensed premises for off-premises
16consumption no more than 5,000 gallons per year so long as such
17sales are only made in-person, (v) sell and offer for sale at
18retail for use and consumption on the premises specified in
19the license any form of alcoholic liquor purchased from a
20licensed distributor or importing distributor, and (vi) with
21the prior approval of the State Commission, annually transfer
22no more than 5,000 gallons of spirits manufactured on the
23premises to a licensed distilling pub wholly owned and
24operated by the same licensee.
25    A distilling pub licensee shall not under any circumstance
26sell or offer for sale spirits manufactured by the distilling

 

 

HB5504- 66 -LRB103 38154 RPS 68287 b

1pub licensee to retail licensees.
2    A person who holds a class 2 craft distiller license may
3simultaneously hold a distilling pub license if the class 2
4craft distiller (i) does not, under any circumstance, sell or
5offer for sale spirits manufactured by the class 2 craft
6distiller to retail licensees; (ii) does not hold more than 3
7distilling pub licenses in this State; (iii) does not
8manufacture more than a combined 100,000 gallons of spirits
9per year, including the spirits manufactured at the distilling
10pub; and (iv) is not a member of or affiliated with, directly
11or indirectly, a manufacturer that produces more than 100,000
12gallons of spirits per year or any other alcoholic liquor.
13    (v) A craft distiller warehouse permit may be issued to
14the holder of a class 1 craft distiller or class 2 craft
15distiller license. The craft distiller warehouse permit shall
16allow the holder to store or warehouse up to 500,000 gallons of
17spirits manufactured by the holder of the permit at the
18premises specified on the permit. Sales to non-licensees are
19prohibited at the premises specified in the craft distiller
20warehouse permit.
21    (w) A beer showcase permit license shall allow an
22Illinois-licensed distributor to transfer a portion of its
23beer inventory from its licensed premises to the premises
24specified in the beer showcase permit license, and, in the
25case of a class 3 brewer, transfer only beer the class 3 brewer
26manufactures from its licensed premises to the premises

 

 

HB5504- 67 -LRB103 38154 RPS 68287 b

1specified in the beer showcase permit license; and to sell or
2offer for sale at retail, only in the premises specified in the
3beer showcase permit license, the transferred or delivered
4beer for on or off premise consumption, but not for resale in
5any form and to sell to non-licensees not more than 96 fluid
6ounces of beer per person. A beer showcase permit license may
7be granted for the following time periods: one day or less; or
82 or more days to a maximum of 15 days per location in any
912-month period. An applicant for a beer showcase permit
10license must also submit with the application proof
11satisfactory to the State Commission that the applicant will
12provide dram shop liability insurance to the maximum limits
13and have local authority approval. The State Commission shall
14require the beer showcase applicant to comply with Section
156-27.1.
16    (x) A spirits showcase permit shall allow an
17Illinois-licensed distributor to transfer a portion of its
18spirits inventory from its licensed premises to the premises
19specified in the spirits showcase permit and, in the case of a
20class 3 craft distiller, transfer only spirits the class 3
21craft distiller manufactures from its licensed premises to the
22premises specified in the spirits showcase permit; and to sell
23or offer for sale at retail, only in the premises specified in
24the spirits showcase permit, the transferred or delivered
25spirits for on-premises or off-premises consumption, but not
26for resale in any form and to sell to non-licensees not more

 

 

HB5504- 68 -LRB103 38154 RPS 68287 b

1than 156 fluid ounces of spirits per person. A spirits
2showcase permit may be granted for the following time periods:
3one day or less; or 2 or more days to a maximum of 15 days per
4location in any 12-month period. An applicant for a spirits
5showcase permit must also submit with the application proof
6satisfactory to the State Commission that the applicant will
7provide dram shop liability insurance to the maximum limits
8and have local authority approval. The State Commission shall
9require the spirits showcase applicant to comply with Section
106-27.1.
11(Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19;
12101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff.
138-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22;
14102-442, eff. 8-20-21; 102-1142, eff. 2-17-23.)
 
15    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
16    Sec. 5-3. License fees. Except as otherwise provided
17herein, at the time application is made to the State
18Commission for a license of any class, the applicant shall pay
19to the State Commission the fee hereinafter provided for the
20kind of license applied for.
21    The fee for licenses issued by the State Commission shall
22be as follows:
23OnlineInitial
24renewallicense
25 or

 

 

HB5504- 69 -LRB103 38154 RPS 68287 b

1 non-online
2 renewal
3    For a manufacturer's license:
4    Class 1. Distiller .................$4,000$5,000
5    Class 2. Rectifier .................4,000 5,000
6    Class 3. Brewer ....................1,200 1,500
7    Class 4. First-class Wine
8        Manufacturer ...................750900
9    Class 5. Second-class
10        Wine Manufacturer ..............1,500 1,750
11    Class 6. First-class wine-maker ....750 900
12    Class 7. Second-class wine-maker ...1,500 1,750
13    Class 8. Limited Wine
14        Manufacturer....................250 350
15    Class 9. Craft Distiller............ 2,000 2,500
16    Class 10. Class 1 Craft Distiller... 50 75
17    Class 11. Class 2 Craft Distiller... 75 100
18    Class 12. Class 1 Brewer............50 75
19    Class 13. Class 2 Brewer............ 75 100
20    Class 14. Class 3 Brewer............ 25 50
21    Class 15. Class 3 Craft Distiller.175200
22    For a Brew Pub License..............1,2001,500
23    For a Distilling Pub License........ 1,200 1,500
24    For a caterer retailer's license....350 500
25    For a foreign importer's license ...25 25
26    For an importing distributor's

 

 

HB5504- 70 -LRB103 38154 RPS 68287 b

1        license.........................2525
2    For a distributor's license
3        (11,250,000 gallons
4        or over)........................1,4502,200
5    For a distributor's license
6        (over 4,500,000 gallons, but
7        under 11,250,000 gallons)....... 9501,450
8    For a distributor's license
9        (4,500,000 gallons or under)....300450
10    For a non-resident dealer's license
11        (500,000 gallons or over)
12        or with self-distribution
13        privileges .....................1,200 1,500
14    For a non-resident dealer's license
15        (under 500,000 gallons) ........250 350
16    For a wine-maker's premises
17        license ........................250500
18    For a winery shipper's license
19        (under 250,000 gallons).........200 350
20    For a winery shipper's license
21        (250,000 or over, but
22        under 500,000 gallons)..........7501,000
23    For a winery shipper's license
24        (500,000 gallons or over).......1,200 1,500
25    For a wine-maker's premises
26        license, second location .......500 1,000

 

 

HB5504- 71 -LRB103 38154 RPS 68287 b

1    For a wine-maker's premises
2        license, third location ........5001,000
3    For a retailer's license ...........600 750
4    For a special event retailer's
5        license, (not-for-profit) ......25 25
6    For a beer showcase permit,
7        one day only ................... 100 150
8        2 days or more ................. 150 250
9    For a spirits showcase permit
10        one day only.100150
11        2 days or more.150250
12    For a special use permit license,
13        one day only ...................100 150
14        2 days or more .................150 250
15    For a railroad license .............100 150
16    For a boat license .................500 1,000
17    For an airplane license, times the
18        licensee's maximum number of
19        aircraft in flight, serving
20        liquor over the State at any
21        given time, which either
22        originate, terminate, or make
23        an intermediate stop in
24        the State.......................100150
25    For a non-beverage user's license:
26        Class 1 ........................2424

 

 

HB5504- 72 -LRB103 38154 RPS 68287 b

1        Class 2 ........................6060
2        Class 3 ........................120120
3        Class 4 ........................240240
4        Class 5 ........................600600
5    For a broker's license .............750 1,000
6    For an auction liquor license ......100 150
7    For a homebrewer special
8        event permit....................2525
9    For a craft distiller
10        tasting permit..................25 25
11    For a BASSET trainer license........ 300 350
12    For a tasting representative
13        license.........................200300
14    For a brewer warehouse permit....... 2525
15    For a craft distiller
16        warehouse permit................25 25
17    Fees collected under this Section shall be paid into the
18Dram Shop Fund. The State Commission shall waive license
19renewal fees for those retailers' licenses that are designated
20as "1A" by the State Commission and expire on or after July 1,
212022, and on or before June 30, 2023. One-half of the funds
22received for a retailer's license shall be paid into the Dram
23Shop Fund and one-half of the funds received for a retailer's
24license shall be paid into the General Revenue Fund.
25    No fee shall be paid for licenses issued by the State
26Commission to the following non-beverage users:

 

 

HB5504- 73 -LRB103 38154 RPS 68287 b

1        (a) Hospitals, sanitariums, or clinics when their use
2    of alcoholic liquor is exclusively medicinal, mechanical,
3    or scientific.
4        (b) Universities, colleges of learning, or schools
5    when their use of alcoholic liquor is exclusively
6    medicinal, mechanical, or scientific.
7        (c) Laboratories when their use is exclusively for the
8    purpose of scientific research.
9(Source: P.A. 102-442, eff. 8-20-21; 102-558, eff. 8-20-21;
10102-699, eff. 4-19-22; 102-1142, eff. 2-17-23; 103-154, eff.
116-30-23; revised 9-5-23.)
 
12    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
13    Sec. 6-4. (a) No person licensed by any licensing
14authority as a distiller, or a wine manufacturer, or any
15subsidiary or affiliate thereof, or any officer, associate,
16member, partner, representative, employee, agent or
17shareholder owning more than 5% of the outstanding shares of
18such person shall be issued an importing distributor's or
19distributor's license, nor shall any person licensed by any
20licensing authority as an importing distributor, distributor
21or retailer, or any subsidiary or affiliate thereof, or any
22officer or associate, member, partner, representative,
23employee, agent or shareholder owning more than 5% of the
24outstanding shares of such person be issued a distiller's
25license, a craft distiller's license, or a wine manufacturer's

 

 

HB5504- 74 -LRB103 38154 RPS 68287 b

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

 

 

HB5504- 75 -LRB103 38154 RPS 68287 b

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

 

 

HB5504- 76 -LRB103 38154 RPS 68287 b

1distiller, or subsidiaries or affiliates of such distiller.
2    (e) Any person licensed as a brewer, class 1 brewer, or
3class 2 brewer shall be permitted to sell on the licensed
4premises to non-licensees for on or off-premises consumption
5for the premises in which he or she actually conducts such
6business: (i) beer manufactured by the brewer, class 1 brewer,
7class 2 brewer, or class 3 brewer; (ii) beer manufactured by
8any other brewer, class 1 brewer, class 2 brewer, or class 3
9brewer; and (iii) cider or mead. Any person licensed as a class
103 brewer shall be permitted to sell on the licensed premises to
11non-licensees for on or off premises consumption for the
12premises in which he or she actually conducts such business:
13(i) beer manufactured by the class 3 brewer on the premises;
14(ii) beer manufactured by any other brewer, class 1 brewer,
15class 2 brewer, or class 3 brewer; and (iii) cider, wine, and
16spirits. All products sold under this subsection that are not
17manufactured on premises must be purchased through a licensed
18distributor, importing distributor, or manufacturer with
19self-distribution privileges. Such sales shall be limited to
20on-premises, in-person sales only, for lawful consumption on
21or off premises. Such authorization shall be considered a
22privilege granted by the brewer license and, other than a
23manufacturer of beer as stated above, no manufacturer or
24distributor or importing distributor, excluding airplane
25licensees exercising powers provided in paragraph (i) of
26Section 5-1 of this Act, or any subsidiary or affiliate

 

 

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1thereof, or any officer, associate, member, partner,
2representative, employee or agent, or shareholder shall be
3issued a retailer's license, nor shall any person having a
4retailer's license, excluding airplane licensees exercising
5powers provided in paragraph (i) of Section 5-1 of this Act, or
6any subsidiary or affiliate thereof, or any officer,
7associate, member, partner, representative or agent, or
8shareholder be issued a manufacturer's license or importing
9distributor's license.
10    A manufacturer of beer that imports or transfers beer into
11this State must comply with Sections 6-8 and 8-1 of this Act.
12    A person who holds a class 2 brewer license and is
13authorized by this Section to sell beer to non-licensees shall
14not sell beer to non-licensees from more than 3 total brewer or
15commonly owned brew pub licensed locations in this State. The
16class 2 brewer shall designate to the State Commission the
17brewer or brew pub locations from which it will sell beer to
18non-licensees.
19    A person licensed as a class 1 craft distiller or a class 2
20craft distiller, including a person who holds more than one
21class 1 craft distiller or class 2 craft distiller license,
22not affiliated with any other person manufacturing spirits may
23be authorized by the State Commission to sell (1) up to 5,000
24gallons of spirits produced by the person to non-licensees for
25on or off-premises consumption for the premises in which he or
26she actually conducts business permitting only the retail sale

 

 

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1of spirits manufactured at such premises and (2) vermouth
2purchased through a licensed distributor for on-premises
3consumption. Such sales shall be limited to on-premises,
4in-person sales only, for lawful consumption on or off
5premises, and such authorization shall be considered a
6privilege granted by the class 1 craft distiller or class 2
7craft distiller license. A class 1 craft distiller or class 2
8craft distiller licensed for retail sale shall secure liquor
9liability insurance coverage in an amount at least equal to
10the maximum liability amounts set forth in subsection (a) of
11Section 6-21 of this Act.
12    A class 1 craft distiller or class 2 craft distiller
13license holder shall not deliver any alcoholic liquor to any
14non-licensee off the licensed premises. A class 1 craft
15distiller or class 2 craft distiller shall affirm in its
16annual license application that it does not produce more than
1750,000 or 100,000 gallons of distilled spirits annually,
18whichever is applicable, and that the craft distiller does not
19sell more than 5,000 gallons of spirits to non-licensees for
20on or off-premises consumption. In the application, which
21shall be sworn under penalty of perjury, the class 1 craft
22distiller or class 2 craft distiller shall state the volume of
23production and sales for each year since the class 1 craft
24distiller's or class 2 craft distiller's establishment.
25    A person who holds a class 1 craft distiller or class 2
26craft distiller license and is authorized by this Section to

 

 

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1sell spirits to non-licensees shall not sell spirits to
2non-licensees from more than 3 total distillery or commonly
3owned distilling pub licensed locations in this State. The
4class 1 craft distiller or class 2 craft distiller shall
5designate to the State Commission the distillery or distilling
6pub locations from which it will sell spirits to
7non-licensees.
8    A class 3 craft distiller license shall allow the licensee
9to only (i) manufacture up to 100,000 gallons of spirits per
10year, (ii) make sales of the spirits manufactured on the
11premises or, with the approval of the State Commission,
12spirits manufactured on another class 3 craft distiller
13licensed premises that is wholly owned and operated by the
14same licensee to importing distributors and distributors, to
15retail licensees in accordance with the conditions set forth
16in paragraph (21) of subsection (a) of Section 3-12 of this
17Act, and to non-licensees for use and consumption, (iii) store
18the spirits upon the premises, (iv) sell and offer for sale at
19retail from the licensed premises for off-premises consumption
20no more than 5,000 gallons per year so long as such sales are
21only made in-person, (v) sell and offer for sale at retail for
22use and consumption on the premises specified in the license
23any form of alcoholic liquor purchased from a licensed
24distributor or importing distributor, and (vi) with the prior
25approval of the State Commission, annually transfer no more
26than 19,375 gallons of spirits manufactured on the premises to

 

 

HB5504- 80 -LRB103 38154 RPS 68287 b

1a licensed class 3 craft distiller wholly owned and operated
2by the same licensee.
3    (f) (Blank).
4    (g) Notwithstanding any of the foregoing prohibitions, a
5limited wine manufacturer may sell at retail at its
6manufacturing site for on or off premises consumption and may
7sell to distributors. A limited wine manufacturer licensee
8shall secure liquor liability insurance coverage in an amount
9at least equal to the maximum liability amounts set forth in
10subsection (a) of Section 6-21 of this Act.
11    (h) The changes made to this Section by Public Act 99-47
12shall not diminish or impair the rights of any person, whether
13a distiller, wine manufacturer, agent, or affiliate thereof,
14who requested in writing and submitted documentation to the
15State Commission on or before February 18, 2015 to be approved
16for a retail license pursuant to what has heretofore been
17subsection (f); provided that, on or before that date, the
18State Commission considered the intent of that person to apply
19for the retail license under that subsection and, by recorded
20vote, the State Commission approved a resolution indicating
21that such a license application could be lawfully approved
22upon that person duly filing a formal application for a retail
23license and if that person, within 90 days of the State
24Commission appearance and recorded vote, first filed an
25application with the appropriate local commission, which
26application was subsequently approved by the appropriate local

 

 

HB5504- 81 -LRB103 38154 RPS 68287 b

1commission prior to consideration by the State Commission of
2that person's application for a retail license. It is further
3provided that the State Commission may approve the person's
4application for a retail license or renewals of such license
5if such person continues to diligently adhere to all
6representations made in writing to the State Commission on or
7before February 18, 2015, or thereafter, or in the affidavit
8filed by that person with the State Commission to support the
9issuance of a retail license and to abide by all applicable
10laws and duly adopted rules.
11    (i) Notwithstanding any other provision of this Act, the
12common ownership of a brewery, winery, or a distillery shall
13not authorize the grant of and aggregation of retail
14privileges granted to any person or licensees in subsection
15(e). Any person or licensee with common ownership in a
16brewery, winery, or a distillery shall be limited to the
17retail privileges granted to only one of the commonly owned
18brewery, winery, or distillery. The State Commission is hereby
19authorized to restrict the locations of any commonly owned
20brewery, winery, or distillery to prevent the expansion of
21retail privileges, including, without limitation, restricting
22a commonly owned brewery, winery, or distillery from operating
23in adjacent licensed premises or restricting self-distribution
24privileges.
25(Source: P.A. 101-81, eff. 7-12-19; 101-482, eff. 8-23-19;
26101-615, eff. 12-20-19; 102-442, eff. 8-20-21.)