99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4055

 

Introduced , by Rep. Terri Bryant

 

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

    Amends the Liquor Control Act of 1934. Provides that a craft distiller licensee may sell up to 35,000 gallons of spirits by distillation per year to importing distributors and retail licensees and up to 10,000 gallons (instead of 2,500 gallons) of spirits by distillation per year to non-licensees.


LRB099 09545 RPS 29753 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4055LRB099 09545 RPS 29753 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 5-1 and 6-4 as follows:
 
6    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
7    Sec. 5-1. Licenses issued by the Illinois Liquor Control
8Commission shall be of the following classes:
9    (a) Manufacturer's license - Class 1. Distiller, Class 2.
10Rectifier, Class 3. Brewer, Class 4. First Class Wine
11Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
12First Class Winemaker, Class 7. Second Class Winemaker, Class
138. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1410. Craft Brewer,
15    (b) Distributor's license,
16    (c) Importing Distributor's license,
17    (d) Retailer's license,
18    (e) Special Event Retailer's license (not-for-profit),
19    (f) Railroad license,
20    (g) Boat license,
21    (h) Non-Beverage User's license,
22    (i) Wine-maker's premises license,
23    (j) Airplane license,

 

 

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

 

 

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1authorized under subsection (e) of Section 6-4 of this Act.
2    Class 4. A first class wine-manufacturer may make sales and
3deliveries of up to 50,000 gallons of wine to manufacturers,
4importing distributors and distributors, and to no other
5licensees.
6    Class 5. A second class Wine manufacturer may make sales
7and deliveries of more than 50,000 gallons of wine to
8manufacturers, importing distributors and distributors and to
9no other licensees.
10    Class 6. A first-class wine-maker's license shall allow the
11manufacture of up to 50,000 gallons of wine per year, and the
12storage and sale of such wine to distributors in the State and
13to persons without the State, as may be permitted by law. A
14person who, prior to the effective date of this amendatory Act
15of the 95th General Assembly, is a holder of a first-class
16wine-maker's license and annually produces more than 25,000
17gallons of its own wine and who distributes its wine to
18licensed retailers shall cease this practice on or before July
191, 2008 in compliance with this amendatory Act of the 95th
20General Assembly.
21    Class 7. A second-class wine-maker's license shall allow
22the manufacture of between 50,000 and 150,000 gallons of wine
23per year, and the storage and sale of such wine to distributors
24in this State and to persons without the State, as may be
25permitted by law. A person who, prior to the effective date of
26this amendatory Act of the 95th General Assembly, is a holder

 

 

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1of a second-class wine-maker's license and annually produces
2more than 25,000 gallons of its own wine and who distributes
3its wine to licensed retailers shall cease this practice on or
4before July 1, 2008 in compliance with this amendatory Act of
5the 95th General Assembly.
6    Class 8. A limited wine-manufacturer may make sales and
7deliveries not to exceed 40,000 gallons of wine per year to
8distributors, and to non-licensees in accordance with the
9provisions of this Act.
10    Class 9. A craft distiller license shall allow the
11manufacture of up to 30,000 gallons of spirits by distillation
12for one year after the effective date of this amendatory Act of
13the 97th General Assembly and up to 35,000 gallons of spirits
14by distillation per year thereafter and the storage of such
15spirits. If a craft distiller licensee is not affiliated with
16any other manufacturer, then the craft distiller licensee may
17sell such spirits to distributors, importing distributors, and
18retail licensees in this State and up to 10,000 2,500 gallons
19of such spirits to non-licensees to the extent permitted by any
20exemption approved by the Commission pursuant to Section 6-4 of
21this Act.
22    Any craft distiller licensed under this Act who on the
23effective date of this amendatory Act of the 96th General
24Assembly was licensed as a distiller and manufactured no more
25spirits than permitted by this Section shall not be required to
26pay the initial licensing fee.

 

 

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1    Class 10. A craft brewer's license, which may only be
2issued to a licensed brewer or licensed non-resident dealer,
3shall allow the manufacture of up to 930,000 gallons of beer
4per year. A craft brewer licensee may make sales and deliveries
5to importing distributors and distributors and to retail
6licensees in accordance with the conditions set forth in
7paragraph (18) of subsection (a) of Section 3-12 of this Act.
8    (a-1) A manufacturer which is licensed in this State to
9make sales or deliveries of alcoholic liquor to licensed
10distributors or importing distributors and which enlists
11agents, representatives, or individuals acting on its behalf
12who contact licensed retailers on a regular and continual basis
13in this State must register those agents, representatives, or
14persons acting on its behalf with the State Commission.
15    Registration of agents, representatives, or persons acting
16on behalf of a manufacturer is fulfilled by submitting a form
17to the Commission. The form shall be developed by the
18Commission and shall include the name and address of the
19applicant, the name and address of the manufacturer he or she
20represents, the territory or areas assigned to sell to or
21discuss pricing terms of alcoholic liquor, and any other
22questions deemed appropriate and necessary. All statements in
23the forms required to be made by law or by rule shall be deemed
24material, and any person who knowingly misstates any material
25fact under oath in an application is guilty of a Class B
26misdemeanor. Fraud, misrepresentation, false statements,

 

 

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1misleading statements, evasions, or suppression of material
2facts in the securing of a registration are grounds for
3suspension or revocation of the registration. The State
4Commission shall post a list of registered agents on the
5Commission's website.
6    (b) A distributor's license shall allow the wholesale
7purchase and storage of alcoholic liquors and sale of alcoholic
8liquors to licensees in this State and to persons without the
9State, as may be permitted by law.
10    (c) An importing distributor's license may be issued to and
11held by those only who are duly licensed distributors, upon the
12filing of an application by a duly licensed distributor, with
13the Commission and the Commission shall, without the payment of
14any fee, immediately issue such importing distributor's
15license to the applicant, which shall allow the importation of
16alcoholic liquor by the licensee into this State from any point
17in the United States outside this State, and the purchase of
18alcoholic liquor in barrels, casks or other bulk containers and
19the bottling of such alcoholic liquors before resale thereof,
20but all bottles or containers so filled shall be sealed,
21labeled, stamped and otherwise made to comply with all
22provisions, rules and regulations governing manufacturers in
23the preparation and bottling of alcoholic liquors. The
24importing distributor's license shall permit such licensee to
25purchase alcoholic liquor from Illinois licensed non-resident
26dealers and foreign importers only.

 

 

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1    (d) A retailer's license shall allow the licensee to sell
2and offer for sale at retail, only in the premises specified in
3the license, alcoholic liquor for use or consumption, but not
4for resale in any form. Nothing in this amendatory Act of the
595th General Assembly shall deny, limit, remove, or restrict
6the ability of a holder of a retailer's license to transfer,
7deliver, or ship alcoholic liquor to the purchaser for use or
8consumption subject to any applicable local law or ordinance.
9Any retail license issued to a manufacturer shall only permit
10the manufacturer to sell beer at retail on the premises
11actually occupied by the manufacturer. For the purpose of
12further describing the type of business conducted at a retail
13licensed premises, a retailer's licensee may be designated by
14the State Commission as (i) an on premise consumption retailer,
15(ii) an off premise sale retailer, or (iii) a combined on
16premise consumption and off premise sale retailer.
17    Notwithstanding any other provision of this subsection
18(d), a retail licensee may sell alcoholic liquors to a special
19event retailer licensee for resale to the extent permitted
20under subsection (e).
21    (e) A special event retailer's license (not-for-profit)
22shall permit the licensee to purchase alcoholic liquors from an
23Illinois licensed distributor (unless the licensee purchases
24less than $500 of alcoholic liquors for the special event, in
25which case the licensee may purchase the alcoholic liquors from
26a licensed retailer) and shall allow the licensee to sell and

 

 

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1offer for sale, at retail, alcoholic liquors for use or
2consumption, but not for resale in any form and only at the
3location and on the specific dates designated for the special
4event in the license. An applicant for a special event retailer
5license must (i) furnish with the application: (A) a resale
6number issued under Section 2c of the Retailers' Occupation Tax
7Act or evidence that the applicant is registered under Section
82a of the Retailers' Occupation Tax Act, (B) a current, valid
9exemption identification number issued under Section 1g of the
10Retailers' Occupation Tax Act, and a certification to the
11Commission that the purchase of alcoholic liquors will be a
12tax-exempt purchase, or (C) a statement that the applicant is
13not registered under Section 2a of the Retailers' Occupation
14Tax Act, does not hold a resale number under Section 2c of the
15Retailers' Occupation Tax Act, and does not hold an exemption
16number under Section 1g of the Retailers' Occupation Tax Act,
17in which event the Commission shall set forth on the special
18event retailer's license a statement to that effect; (ii)
19submit with the application proof satisfactory to the State
20Commission that the applicant will provide dram shop liability
21insurance in the maximum limits; and (iii) show proof
22satisfactory to the State Commission that the applicant has
23obtained local authority approval.
24    (f) A railroad license shall permit the licensee to import
25alcoholic liquors into this State from any point in the United
26States outside this State and to store such alcoholic liquors

 

 

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1in this State; to make wholesale purchases of alcoholic liquors
2directly from manufacturers, foreign importers, distributors
3and importing distributors from within or outside this State;
4and to store such alcoholic liquors in this State; provided
5that the above powers may be exercised only in connection with
6the importation, purchase or storage of alcoholic liquors to be
7sold or dispensed on a club, buffet, lounge or dining car
8operated on an electric, gas or steam railway in this State;
9and provided further, that railroad licensees exercising the
10above powers shall be subject to all provisions of Article VIII
11of this Act as applied to importing distributors. A railroad
12license shall also permit the licensee to sell or dispense
13alcoholic liquors on any club, buffet, lounge or dining car
14operated on an electric, gas or steam railway regularly
15operated by a common carrier in this State, but shall not
16permit the sale for resale of any alcoholic liquors to any
17licensee within this State. A license shall be obtained for
18each car in which such sales are made.
19    (g) A boat license shall allow the sale of alcoholic liquor
20in individual drinks, on any passenger boat regularly operated
21as a common carrier on navigable waters in this State or on any
22riverboat operated under the Riverboat Gambling Act, which boat
23or riverboat maintains a public dining room or restaurant
24thereon.
25    (h) A non-beverage user's license shall allow the licensee
26to purchase alcoholic liquor from a licensed manufacturer or

 

 

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

 

 

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

 

 

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

 

 

HB4055- 13 -LRB099 09545 RPS 29753 b

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

 

 

HB4055- 14 -LRB099 09545 RPS 29753 b

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

 

 

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1right to sell such brands at wholesale, and (iii) the
2non-resident dealer shall comply with the provisions of
3Sections 6-5 and 6-6 of this Act to the same extent that these
4provisions apply to manufacturers.
5    (n) A brew pub license shall allow the licensee (i) to
6manufacture beer only on the premises specified in the license,
7(ii) to make sales of the beer manufactured on the premises or,
8with the approval of the Commission, beer manufactured on
9another brew pub licensed premises that is substantially owned
10and operated by the same licensee to importing distributors,
11distributors, and to non-licensees for use and consumption,
12(iii) to store the beer upon the premises, and (iv) to sell and
13offer for sale at retail from the licensed premises, provided
14that a brew pub licensee shall not sell for off-premises
15consumption more than 50,000 gallons per year. A person who
16holds a brew pub license may simultaneously hold a craft brewer
17license if he or she otherwise qualifies for the craft brewer
18license and the craft brewer license is for a location separate
19from the brew pub's licensed premises. A brew pub license shall
20permit a person who has received prior approval from the
21Commission to annually transfer no more than a total of 50,000
22gallons of beer manufactured on premises to all other licensed
23brew pubs that are substantially owned and operated by the same
24person.
25    (o) A caterer retailer license shall allow the holder to
26serve alcoholic liquors as an incidental part of a food service

 

 

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

 

 

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1first-class or second-class wine manufacturer's license, a
2first-class or second-class wine-maker's license, or a limited
3wine manufacturer's license or who is licensed to make wine
4under the laws of another state to ship wine made by that
5licensee directly to a resident of this State who is 21 years
6of age or older for that resident's personal use and not for
7resale. Prior to receiving a winery shipper's license, an
8applicant for the license must provide the Commission with a
9true copy of its current license in any state in which it is
10licensed as a manufacturer of wine. An applicant for a winery
11shipper's license must also complete an application form that
12provides any other information the Commission deems necessary.
13The application form shall include an acknowledgement
14consenting to the jurisdiction of the Commission, the Illinois
15Department of Revenue, and the courts of this State concerning
16the enforcement of this Act and any related laws, rules, and
17regulations, including authorizing the Department of Revenue
18and the Commission to conduct audits for the purpose of
19ensuring compliance with this amendatory Act.
20    A winery shipper licensee must pay to the Department of
21Revenue the State liquor gallonage tax under Section 8-1 for
22all wine that is sold by the licensee and shipped to a person
23in this State. For the purposes of Section 8-1, a winery
24shipper licensee shall be taxed in the same manner as a
25manufacturer of wine. A licensee who is not otherwise required
26to register under the Retailers' Occupation Tax Act must

 

 

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1register under the Use Tax Act to collect and remit use tax to
2the Department of Revenue for all gallons of wine that are sold
3by the licensee and shipped to persons in this State. If a
4licensee fails to remit the tax imposed under this Act in
5accordance with the provisions of Article VIII of this Act, the
6winery shipper's license shall be revoked in accordance with
7the provisions of Article VII of this Act. If a licensee fails
8to properly register and remit tax under the Use Tax Act or the
9Retailers' Occupation Tax Act for all wine that is sold by the
10winery shipper and shipped to persons in this State, the winery
11shipper's license shall be revoked in accordance with the
12provisions of Article VII of this Act.
13    A winery shipper licensee must collect, maintain, and
14submit to the Commission on a semi-annual basis the total
15number of cases per resident of wine shipped to residents of
16this State. A winery shipper licensed under this subsection (r)
17must comply with the requirements of Section 6-29 of this
18amendatory Act.
19(Source: P.A. 97-5, eff. 6-1-11; 97-455, eff. 8-19-11; 97-813,
20eff. 7-13-12; 97-1166, eff. 3-1-13; 98-394, eff. 8-16-13;
2198-401, eff. 8-16-13; 98-756, eff. 7-16-14.)
 
22    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
23    Sec. 6-4. (a) No person licensed by any licensing authority
24as a distiller, or a wine manufacturer, or any subsidiary or
25affiliate thereof, or any officer, associate, member, partner,

 

 

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1representative, employee, agent or shareholder owning more
2than 5% of the outstanding shares of such person shall be
3issued an importing distributor's or distributor's license,
4nor shall any person licensed by any licensing authority as an
5importing distributor, distributor or retailer, or any
6subsidiary or affiliate thereof, or any officer or associate,
7member, partner, representative, employee, agent or
8shareholder owning more than 5% of the outstanding shares of
9such person be issued a distiller's license or a wine
10manufacturer's license; and no person or persons licensed as a
11distiller by any licensing authority shall have any interest,
12directly or indirectly, with such distributor or importing
13distributor.
14    However, an importing distributor or distributor, which on
15January 1, 1985 is owned by a brewer, or any subsidiary or
16affiliate thereof or any officer, associate, member, partner,
17representative, employee, agent or shareholder owning more
18than 5% of the outstanding shares of the importing distributor
19or distributor referred to in this paragraph, may own or
20acquire an ownership interest of more than 5% of the
21outstanding shares of a wine manufacturer and be issued a wine
22manufacturer's license by any licensing authority.
23    (b) The foregoing provisions shall not apply to any person
24licensed by any licensing authority as a distiller or wine
25manufacturer, or to any subsidiary or affiliate of any
26distiller or wine manufacturer who shall have been heretofore

 

 

HB4055- 20 -LRB099 09545 RPS 29753 b

1licensed by the State Commission as either an importing
2distributor or distributor during the annual licensing period
3expiring June 30, 1947, and shall actually have made sales
4regularly to retailers.
5    (c) Provided, however, that in such instances where a
6distributor's or importing distributor's license has been
7issued to any distiller or wine manufacturer or to any
8subsidiary or affiliate of any distiller or wine manufacturer
9who has, during the licensing period ending June 30, 1947, sold
10or distributed as such licensed distributor or importing
11distributor alcoholic liquors and wines to retailers, such
12distiller or wine manufacturer or any subsidiary or affiliate
13of any distiller or wine manufacturer holding such
14distributor's or importing distributor's license may continue
15to sell or distribute to retailers such alcoholic liquors and
16wines which are manufactured, distilled, processed or marketed
17by distillers and wine manufacturers whose products it sold or
18distributed to retailers during the whole or any part of its
19licensing periods; and such additional brands and additional
20products may be added to the line of such distributor or
21importing distributor, provided, that such brands and such
22products were not sold or distributed by any distributor or
23importing distributor licensed by the State Commission during
24the licensing period ending June 30, 1947, but can not sell or
25distribute to retailers any other alcoholic liquors or wines.
26    (d) It shall be unlawful for any distiller licensed

 

 

HB4055- 21 -LRB099 09545 RPS 29753 b

1anywhere to have any stock ownership or interest in any
2distributor's or importing distributor's license wherein any
3other person has an interest therein who is not a distiller and
4does not own more than 5% of any stock in any distillery.
5Nothing herein contained shall apply to such distillers or
6their subsidiaries or affiliates, who had a distributor's or
7importing distributor's license during the licensing period
8ending June 30, 1947, which license was owned in whole by such
9distiller, or subsidiaries or affiliates of such distiller.
10    (e) Any person having been licensed as a manufacturer shall
11be permitted to receive one retailer's license for the premises
12in which he or she actually conducts such business, permitting
13only the retail sale of beer manufactured at such premises and
14only on such premises, but no such person shall be entitled to
15more than one retailer's license in any event, and, other than
16a manufacturer of beer as stated above, no manufacturer or
17distributor or importing distributor, excluding airplane
18licensees exercising powers provided in paragraph (i) of
19Section 5-1 of this Act, or any subsidiary or affiliate
20thereof, or any officer, associate, member, partner,
21representative, employee or agent, or shareholder shall be
22issued a retailer's license, nor shall any person having a
23retailer's license, excluding airplane licensees exercising
24powers provided in paragraph (i) of Section 5-1 of this Act, or
25any subsidiary or affiliate thereof, or any officer, associate,
26member, partner, representative or agent, or shareholder be

 

 

HB4055- 22 -LRB099 09545 RPS 29753 b

1issued a manufacturer's license or importing distributor's
2license.
3    A person licensed as a craft distiller not affiliated with
4any other person manufacturing spirits may be authorized by the
5Commission to sell up to 10,000 2,500 gallons of spirits
6produced by the person to non-licensees for on or off-premises
7consumption for the premises in which he or she actually
8conducts business permitting only the retail sale of spirits
9manufactured at such premises. Such sales shall be limited to
10on-premises, in-person sales only, for lawful consumption on or
11off premises, and such authorization shall be considered a
12privilege granted by the craft distiller license. A craft
13distiller licensed for retail sale shall secure liquor
14liability insurance coverage in an amount at least equal to the
15maximum liability amounts set forth in subsection (a) of
16Section 6-21 of this Act.
17    (f) However, the foregoing prohibitions against any person
18licensed as a distiller or wine manufacturer being issued a
19retailer's license shall not apply:
20        (i) to any hotel, motel or restaurant whose principal
21    business is not the sale of alcoholic liquors if said
22    retailer's sales of any alcoholic liquors manufactured,
23    sold, distributed or controlled, directly or indirectly,
24    by any affiliate, subsidiary, officer, associate, member,
25    partner, representative, employee, agent or shareholder
26    owning more than 5% of the outstanding shares of such

 

 

HB4055- 23 -LRB099 09545 RPS 29753 b

1    person does not exceed 10% of the total alcoholic liquor
2    sales of said retail licensee; and
3        (ii) where the Commission determines, having
4    considered the public welfare, the economic impact upon the
5    State and the entirety of the facts and circumstances
6    involved, that the purpose and intent of this Section would
7    not be violated by granting an exemption.
8    (g) Notwithstanding any of the foregoing prohibitions, a
9limited wine manufacturer may sell at retail at its
10manufacturing site for on or off premises consumption and may
11sell to distributors. A limited wine manufacturer licensee
12shall secure liquor liability insurance coverage in an amount
13at least equal to the maximum liability amounts set forth in
14subsection (a) of Section 6-21 of this Act.
15(Source: P.A. 96-1367, eff. 7-28-10; 97-606, eff. 8-26-11;
1697-1166, eff. 3-1-13.)