SB2797 EngrossedLRB099 19929 RPS 44328 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 Video Gaming Act is amended by changing
5Section 5 as follows:
 
6    (230 ILCS 40/5)
7    Sec. 5. Definitions. As used in this Act:
8    "Board" means the Illinois Gaming Board.
9    "Credit" means one, 5, 10, or 25 cents either won or
10purchased by a player.
11    "Distributor" means an individual, partnership,
12corporation, or limited liability company licensed under this
13Act to buy, sell, lease, or distribute video gaming terminals
14or major components or parts of video gaming terminals to or
15from terminal operators.
16    "Electronic card" means a card purchased from a licensed
17establishment, licensed fraternal establishment, licensed
18veterans establishment, or licensed truck stop establishment
19for use in that establishment as a substitute for cash in the
20conduct of gaming on a video gaming terminal.
21    "Electronic voucher" means a voucher printed by an
22electronic video game machine that is redeemable in the
23licensed establishment for which it was issued.

 

 

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1    "Terminal operator" means an individual, partnership,
2corporation, or limited liability company that is licensed
3under this Act and that owns, services, and maintains video
4gaming terminals for placement in licensed establishments,
5licensed truck stop establishments, licensed fraternal
6establishments, or licensed veterans establishments.
7    "Licensed technician" means an individual who is licensed
8under this Act to repair, service, and maintain video gaming
9terminals.
10    "Licensed terminal handler" means a person, including but
11not limited to an employee or independent contractor working
12for a manufacturer, distributor, supplier, technician, or
13terminal operator, who is licensed under this Act to possess or
14control a video gaming terminal or to have access to the inner
15workings of a video gaming terminal. A licensed terminal
16handler does not include an individual, partnership,
17corporation, or limited liability company defined as a
18manufacturer, distributor, supplier, technician, or terminal
19operator under this Act.
20    "Manufacturer" means an individual, partnership,
21corporation, or limited liability company that is licensed
22under this Act and that manufactures or assembles video gaming
23terminals.
24    "Supplier" means an individual, partnership, corporation,
25or limited liability company that is licensed under this Act to
26supply major components or parts to video gaming terminals to

 

 

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1licensed terminal operators.
2    "Net terminal income" means money put into a video gaming
3terminal minus credits paid out to players.
4    "Video gaming terminal" means any electronic video game
5machine that, upon insertion of cash, electronic cards or
6vouchers, or any combination thereof, is available to play or
7simulate the play of a video game, including but not limited to
8video poker, line up, and blackjack, as authorized by the Board
9utilizing a video display and microprocessors in which the
10player may receive free games or credits that can be redeemed
11for cash. The term does not include a machine that directly
12dispenses coins, cash, or tokens or is for amusement purposes
13only.
14    "Licensed establishment" means any licensed retail
15establishment, as described in subsection (d) of Section 5-1 of
16the Liquor Control Act of 1934, where alcoholic liquor is
17drawn, poured, mixed, or otherwise served for consumption on
18the premises, whether the establishment operates on a nonprofit
19or for-profit basis. "Licensed establishment" includes any
20such establishment that has a contractual relationship with an
21inter-track wagering location licensee licensed under the
22Illinois Horse Racing Act of 1975, provided any contractual
23relationship shall not include any transfer or offer of revenue
24from the operation of video gaming under this Act to any
25licensee licensed under the Illinois Horse Racing Act of 1975.
26Provided, however, that the licensed establishment that has

 

 

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1such a contractual relationship with an inter-track wagering
2location licensee may not, itself, be (i) an inter-track
3wagering location licensee, (ii) the corporate parent or
4subsidiary of any licensee licensed under the Illinois Horse
5Racing Act of 1975, or (iii) the corporate subsidiary of a
6corporation that is also the corporate parent or subsidiary of
7any licensee licensed under the Illinois Horse Racing Act of
81975. "Licensed establishment" does not include a facility
9operated by an organization licensee, an inter-track wagering
10licensee, or an inter-track wagering location licensee
11licensed under the Illinois Horse Racing Act of 1975 or a
12riverboat licensed under the Riverboat Gambling Act, except as
13provided in this paragraph. The changes made to this definition
14by Public Act 98-587 are declarative of existing law. "Licensed
15establishment" does not include the premises of any
16manufacturer's licensee, wine maker's premises licensee, or
17brew pub licensee licensed under the Liquor Control Act of
181934.
19    "Licensed fraternal establishment" means the location
20where a qualified fraternal organization that derives its
21charter from a national fraternal organization regularly
22meets.
23    "Licensed veterans establishment" means the location where
24a qualified veterans organization that derives its charter from
25a national veterans organization regularly meets.
26    "Licensed truck stop establishment" means a facility (i)

 

 

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1that is at least a 3-acre facility with a convenience store,
2(ii) with separate diesel islands for fueling commercial motor
3vehicles, (iii) that sells at retail more than 10,000 gallons
4of diesel or biodiesel fuel per month, and (iv) with parking
5spaces for commercial motor vehicles. "Commercial motor
6vehicles" has the same meaning as defined in Section 18b-101 of
7the Illinois Vehicle Code. The requirement of item (iii) of
8this paragraph may be met by showing that estimated future
9sales or past sales average at least 10,000 gallons per month.
10(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
1198-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
127-16-14.)
 
13    Section 10. The Liquor Control Act of 1934 is amended by
14changing Sections 5-1 and 6-4 as follows:
 
15    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
16    Sec. 5-1. Licenses issued by the Illinois Liquor Control
17Commission shall be of the following classes:
18    (a) Manufacturer's license - Class 1. Distiller, Class 2.
19Rectifier, Class 3. Brewer, Class 4. First Class Wine
20Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
21First Class Winemaker, Class 7. Second Class Winemaker, Class
228. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
2310. Class 1 Brewer, Class 11. Class 2 Brewer,
24    (b) Distributor's license,

 

 

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

 

 

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1distributors, distributors and non-beverage users and to no
2other licensees.
3    Class 2. A Rectifier, who is not a distiller, as defined
4herein, may make sales and deliveries of alcoholic liquor to
5rectifiers, importing distributors, distributors, retailers
6and non-beverage users and to no other licensees.
7    Class 3. A Brewer may make sales and deliveries of beer to
8importing distributors and distributors and may make sales as
9authorized under subsection (e) of Section 6-4 of this Act.
10    Class 4. A first class wine-manufacturer may make sales and
11deliveries of up to 50,000 gallons of wine to manufacturers,
12importing distributors and distributors, and to no other
13licensees.
14    Class 5. A second class Wine manufacturer may make sales
15and deliveries of more than 50,000 gallons of wine to
16manufacturers, importing distributors and distributors and to
17no other licensees.
18    Class 6. A first-class wine-maker's license shall allow the
19manufacture of up to 50,000 gallons of wine per year, and the
20storage and sale of such wine to distributors in the State and
21to persons without the State, as may be permitted by law. A
22person who, prior to June 1, 2008 (the effective date of Public
23Act 95-634) this amendatory Act of the 95th General Assembly,
24is a holder of a first-class wine-maker's license and annually
25produces more than 25,000 gallons of its own wine and who
26distributes its wine to licensed retailers shall cease this

 

 

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1practice on or before July 1, 2008 in compliance with Public
2Act 95-634 this amendatory Act of the 95th General Assembly.
3    Class 7. A second-class wine-maker's license shall allow
4the manufacture of between 50,000 and 150,000 gallons of wine
5per year, and the storage and sale of such wine to distributors
6in this State and to persons without the State, as may be
7permitted by law. A person who, prior to June 1, 2008 (the
8effective date of Public Act 95-634) this amendatory Act of the
995th General Assembly, is a holder of a second-class
10wine-maker's license and annually produces more than 25,000
11gallons of its own wine and who distributes its wine to
12licensed retailers shall cease this practice on or before July
131, 2008 in compliance with Public Act 95-634 this amendatory
14Act of the 95th General Assembly.
15    Class 8. A limited wine-manufacturer may make sales and
16deliveries not to exceed 40,000 gallons of wine per year to
17distributors, and to non-licensees in accordance with the
18provisions of this Act.
19    Class 9. A craft distiller license shall allow the
20manufacture of up to 100,000 30,000 gallons of spirits by
21distillation for one year after the effective date of this
22amendatory Act of the 97th General Assembly and up to 35,000
23gallons of spirits by distillation per year thereafter and the
24storage of such spirits. A craft distiller license holder may
25store such spirits at a non-contiguous licensed location, but
26at no time shall a craft distiller license holder, or any

 

 

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1subsidiary or affiliate thereof, or any officer, associate,
2member, partner, representative, employee, agent, or
3shareholder of that craft distiller license holder directly or
4indirectly produce in the aggregate more than 100,000 gallons
5of spirits per year. A craft distiller license holder shall not
6be affiliated with, directly or indirectly, any other alcoholic
7liquor manufacturer licensed by any licensing authority. A If a
8craft distiller licensee is not affiliated with any other
9manufacturer, then the craft distiller licensee may sell such
10spirits to distributors in this State and up to 2,500 gallons
11of such spirits to non-licensees to the extent permitted by any
12exemption approved by the Commission pursuant to Section 6-4 of
13this Act.
14    Any craft distiller licensed under this Act who on July 28,
152010 (the effective date of Public Act 96-1367) this amendatory
16Act of the 96th General Assembly was licensed as a distiller
17and manufactured no more spirits than permitted by this Section
18shall not be required to pay the initial licensing fee.
19    Class 10. A class 1 brewer license, which may only be
20issued to a licensed brewer or licensed non-resident dealer,
21shall allow the manufacture of up to 930,000 gallons of beer
22per year provided that the class 1 brewer licensee does not
23manufacture more than a combined 930,000 gallons of beer per
24year and is not a member of or affiliated with, directly or
25indirectly, a manufacturer that produces more than 930,000
26gallons of beer per year or any other alcoholic liquor. A class

 

 

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11 brewer licensee may make sales and deliveries to importing
2distributors and distributors and to retail licensees in
3accordance with the conditions set forth in paragraph (18) of
4subsection (a) of Section 3-12 of this Act.
5    Class 11. A class 2 brewer license, which may only be
6issued to a licensed brewer or licensed non-resident dealer,
7shall allow the manufacture of up to 3,720,000 gallons of beer
8per year provided that the class 2 brewer licensee does not
9manufacture more than a combined 3,720,000 gallons of beer per
10year and is not a member of or affiliated with, directly or
11indirectly, a manufacturer that produces more than 3,720,000
12gallons of beer per year or any other alcoholic liquor. A class
132 brewer licensee may make sales and deliveries to importing
14distributors and distributors, but shall not make sales or
15deliveries to any other licensee. If the State Commission
16provides prior approval, a class 2 brewer licensee may annually
17transfer up to 3,720,000 gallons of beer manufactured by that
18class 2 brewer licensee to the premises of a licensed class 2
19brewer wholly owned and operated by the same licensee.
20    (a-1) A manufacturer which is licensed in this State to
21make sales or deliveries of alcoholic liquor to licensed
22distributors or importing distributors and which enlists
23agents, representatives, or individuals acting on its behalf
24who contact licensed retailers on a regular and continual basis
25in this State must register those agents, representatives, or
26persons acting on its behalf with the State Commission.

 

 

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1    Registration of agents, representatives, or persons acting
2on behalf of a manufacturer is fulfilled by submitting a form
3to the Commission. The form shall be developed by the
4Commission and shall include the name and address of the
5applicant, the name and address of the manufacturer he or she
6represents, the territory or areas assigned to sell to or
7discuss pricing terms of alcoholic liquor, and any other
8questions deemed appropriate and necessary. All statements in
9the forms required to be made by law or by rule shall be deemed
10material, and any person who knowingly misstates any material
11fact under oath in an application is guilty of a Class B
12misdemeanor. Fraud, misrepresentation, false statements,
13misleading statements, evasions, or suppression of material
14facts in the securing of a registration are grounds for
15suspension or revocation of the registration. The State
16Commission shall post a list of registered agents on the
17Commission's website.
18    (b) A distributor's license shall allow the wholesale
19purchase and storage of alcoholic liquors and sale of alcoholic
20liquors to licensees in this State and to persons without the
21State, as may be permitted by law.
22    (c) An importing distributor's license may be issued to and
23held by those only who are duly licensed distributors, upon the
24filing of an application by a duly licensed distributor, with
25the Commission and the Commission shall, without the payment of
26any fee, immediately issue such importing distributor's

 

 

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1license to the applicant, which shall allow the importation of
2alcoholic liquor by the licensee into this State from any point
3in the United States outside this State, and the purchase of
4alcoholic liquor in barrels, casks or other bulk containers and
5the bottling of such alcoholic liquors before resale thereof,
6but all bottles or containers so filled shall be sealed,
7labeled, stamped and otherwise made to comply with all
8provisions, rules and regulations governing manufacturers in
9the preparation and bottling of alcoholic liquors. The
10importing distributor's license shall permit such licensee to
11purchase alcoholic liquor from Illinois licensed non-resident
12dealers and foreign importers only.
13    (d) A retailer's license shall allow the licensee to sell
14and offer for sale at retail, only in the premises specified in
15the license, alcoholic liquor for use or consumption, but not
16for resale in any form. Nothing in Public Act 95-634 this
17amendatory Act of the 95th General Assembly shall deny, limit,
18remove, or restrict the ability of a holder of a retailer's
19license to transfer, deliver, or ship alcoholic liquor to the
20purchaser for use or consumption subject to any applicable
21local law or ordinance. Any retail license issued to a
22manufacturer shall only permit the manufacturer to sell beer at
23retail on the premises actually occupied by the manufacturer.
24For the purpose of further describing the type of business
25conducted at a retail licensed premises, a retailer's licensee
26may be designated by the State Commission as (i) an on premise

 

 

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1consumption retailer, (ii) an off premise sale retailer, or
2(iii) a combined on premise consumption and off premise sale
3retailer.
4    Notwithstanding any other provision of this subsection
5(d), a retail licensee may sell alcoholic liquors to a special
6event retailer licensee for resale to the extent permitted
7under subsection (e).
8    (e) A special event retailer's license (not-for-profit)
9shall permit the licensee to purchase alcoholic liquors from an
10Illinois licensed distributor (unless the licensee purchases
11less than $500 of alcoholic liquors for the special event, in
12which case the licensee may purchase the alcoholic liquors from
13a licensed retailer) and shall allow the licensee to sell and
14offer for sale, at retail, alcoholic liquors for use or
15consumption, but not for resale in any form and only at the
16location and on the specific dates designated for the special
17event in the license. An applicant for a special event retailer
18license must (i) furnish with the application: (A) a resale
19number issued under Section 2c of the Retailers' Occupation Tax
20Act or evidence that the applicant is registered under Section
212a of the Retailers' Occupation Tax Act, (B) a current, valid
22exemption identification number issued under Section 1g of the
23Retailers' Occupation Tax Act, and a certification to the
24Commission that the purchase of alcoholic liquors will be a
25tax-exempt purchase, or (C) a statement that the applicant is
26not registered under Section 2a of the Retailers' Occupation

 

 

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

 

 

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

 

 

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

 

 

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1least equal to the maximum liability amounts set forth in
2subsection (a) of Section 6-21 of this Act.
3    (j) An airplane license shall permit the licensee to import
4alcoholic liquors into this State from any point in the United
5States outside this State and to store such alcoholic liquors
6in this State; to make wholesale purchases of alcoholic liquors
7directly from manufacturers, foreign importers, distributors
8and importing distributors from within or outside this State;
9and to store such alcoholic liquors in this State; provided
10that the above powers may be exercised only in connection with
11the importation, purchase or storage of alcoholic liquors to be
12sold or dispensed on an airplane; and provided further, that
13airplane licensees exercising the above powers shall be subject
14to all provisions of Article VIII of this Act as applied to
15importing distributors. An airplane licensee shall also permit
16the sale or dispensing of alcoholic liquors on any passenger
17airplane regularly operated by a common carrier in this State,
18but shall not permit the sale for resale of any alcoholic
19liquors to any licensee within this State. A single airplane
20license shall be required of an airline company if liquor
21service is provided on board aircraft in this State. The annual
22fee for such license shall be as determined in Section 5-3.
23    (k) A foreign importer's license shall permit such licensee
24to purchase alcoholic liquor from Illinois licensed
25non-resident dealers only, and to import alcoholic liquor other
26than in bulk from any point outside the United States and to

 

 

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

 

 

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

 

 

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1registration pursuant to subsection (a-1) of this Section shall
2not be eligible to receive a broker's license.
3    (m) A non-resident dealer's license shall permit such
4licensee to ship into and warehouse alcoholic liquor into this
5State from any point outside of this State, and to sell such
6alcoholic liquor to Illinois licensed foreign importers and
7importing distributors and to no one else in this State;
8provided that (i) said non-resident dealer shall register with
9the Illinois Liquor Control Commission each and every brand of
10alcoholic liquor which it proposes to sell to Illinois
11licensees during the license period, (ii) it shall comply with
12all of the provisions of Section 6-9 hereof with respect to
13registration of such Illinois licensees as may be granted the
14right to sell such brands at wholesale, and (iii) the
15non-resident dealer shall comply with the provisions of
16Sections 6-5 and 6-6 of this Act to the same extent that these
17provisions apply to manufacturers.
18    (n) A brew pub license shall allow the licensee to only (i)
19manufacture up to 155,000 gallons of beer per year only on the
20premises specified in the license, (ii) make sales of the beer
21manufactured on the premises or, with the approval of the
22Commission, beer manufactured on another brew pub licensed
23premises that is wholly owned and operated by the same licensee
24to importing distributors, distributors, and to non-licensees
25for use and consumption, (iii) store the beer upon the
26premises, (iv) sell and offer for sale at retail from the

 

 

SB2797 Engrossed- 21 -LRB099 19929 RPS 44328 b

1licensed premises for off-premises consumption no more than
2155,000 gallons per year so long as such sales are only made
3in-person, (v) sell and offer for sale at retail for use and
4consumption on the premises specified in the license any form
5of alcoholic liquor purchased from a licensed distributor or
6importing distributor, and (vi) with the prior approval of the
7Commission, annually transfer no more than 155,000 gallons of
8beer manufactured on the premises to a licensed brew pub wholly
9owned and operated by the same licensee.
10    A brew pub licensee shall not under any circumstance sell
11or offer for sale beer manufactured by the brew pub licensee to
12retail licensees.
13    A person who holds a class 2 brewer license may
14simultaneously hold a brew pub license if the class 2 brewer
15(i) does not, under any circumstance, sell or offer for sale
16beer manufactured by the class 2 brewer to retail licensees;
17(ii) does not hold more than 3 brew pub licenses in this State;
18(iii) does not manufacture more than a combined 3,720,000
19gallons of beer per year, including the beer manufactured at
20the brew pub; and (iv) is not a member of or affiliated with,
21directly or indirectly, a manufacturer that produces more than
223,720,000 gallons of beer per year or any other alcoholic
23liquor.
24    Notwithstanding any other provision of this Act, a licensed
25brewer, class 2 brewer, or non-resident dealer who before July
261, 2015 manufactured less than than 3,720,000 gallons of beer

 

 

SB2797 Engrossed- 22 -LRB099 19929 RPS 44328 b

1per year and held a brew pub license on or before July 1, 2015
2may (i) continue to qualify for and hold that brew pub license
3for the licensed premises and (ii) manufacture more than
43,720,000 gallons of beer per year and continue to qualify for
5and hold that brew pub license if that brewer, class 2 brewer,
6or non-resident dealer does not simultaneously hold a class 1
7brewer license and is not a member of or affiliated with,
8directly or indirectly, a manufacturer that produces more than
93,720,000 gallons of beer per year or that produces any other
10alcoholic liquor.
11    (o) A caterer retailer license shall allow the holder to
12serve alcoholic liquors as an incidental part of a food service
13that serves prepared meals which excludes the serving of snacks
14as the primary meal, either on or off-site whether licensed or
15unlicensed.
16    (p) An auction liquor license shall allow the licensee to
17sell and offer for sale at auction wine and spirits for use or
18consumption, or for resale by an Illinois liquor licensee in
19accordance with provisions of this Act. An auction liquor
20license will be issued to a person and it will permit the
21auction liquor licensee to hold the auction anywhere in the
22State. An auction liquor license must be obtained for each
23auction at least 14 days in advance of the auction date.
24    (q) A special use permit license shall allow an Illinois
25licensed retailer to transfer a portion of its alcoholic liquor
26inventory from its retail licensed premises to the premises

 

 

SB2797 Engrossed- 23 -LRB099 19929 RPS 44328 b

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

 

 

SB2797 Engrossed- 24 -LRB099 19929 RPS 44328 b

1Department of Revenue, and the courts of this State concerning
2the enforcement of this Act and any related laws, rules, and
3regulations, including authorizing the Department of Revenue
4and the Commission to conduct audits for the purpose of
5ensuring compliance with Public Act 95-634 this amendatory Act.
6    A winery shipper licensee must pay to the Department of
7Revenue the State liquor gallonage tax under Section 8-1 for
8all wine that is sold by the licensee and shipped to a person
9in this State. For the purposes of Section 8-1, a winery
10shipper licensee shall be taxed in the same manner as a
11manufacturer of wine. A licensee who is not otherwise required
12to register under the Retailers' Occupation Tax Act must
13register under the Use Tax Act to collect and remit use tax to
14the Department of Revenue for all gallons of wine that are sold
15by the licensee and shipped to persons in this State. If a
16licensee fails to remit the tax imposed under this Act in
17accordance with the provisions of Article VIII of this Act, the
18winery shipper's license shall be revoked in accordance with
19the provisions of Article VII of this Act. If a licensee fails
20to properly register and remit tax under the Use Tax Act or the
21Retailers' Occupation Tax Act for all wine that is sold by the
22winery shipper and shipped to persons in this State, the winery
23shipper's license shall be revoked in accordance with the
24provisions of Article VII of this Act.
25    A winery shipper licensee must collect, maintain, and
26submit to the Commission on a semi-annual basis the total

 

 

SB2797 Engrossed- 25 -LRB099 19929 RPS 44328 b

1number of cases per resident of wine shipped to residents of
2this State. A winery shipper licensed under this subsection (r)
3must comply with the requirements of Section 6-29 of this
4amendatory Act.
5    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
6Section 3-12, the State Commission may receive, respond to, and
7investigate any complaint and impose any of the remedies
8specified in paragraph (1) of subsection (a) of Section 3-12.
9(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
1098-756, eff. 7-16-14; 99-448, eff. 8-24-15; revised 10-27-15.)
 
11    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
12    Sec. 6-4. (a) No person licensed by any licensing authority
13as a distiller, or a wine manufacturer, or any subsidiary or
14affiliate thereof, or any officer, associate, member, partner,
15representative, employee, agent or shareholder owning more
16than 5% of the outstanding shares of such person shall be
17issued an importing distributor's or distributor's license,
18nor shall any person licensed by any licensing authority as an
19importing distributor, distributor or retailer, or any
20subsidiary or affiliate thereof, or any officer or associate,
21member, partner, representative, employee, agent or
22shareholder owning more than 5% of the outstanding shares of
23such person be issued a distiller's license, craft distiller's
24license, or a wine manufacturer's license; and no person or
25persons licensed as a distiller or craft distiller by any

 

 

SB2797 Engrossed- 26 -LRB099 19929 RPS 44328 b

1licensing authority shall have any interest, directly or
2indirectly, with such distributor or importing distributor.
3    However, an importing distributor or distributor, which on
4January 1, 1985 is owned by a brewer, or any subsidiary or
5affiliate thereof or any officer, associate, member, partner,
6representative, employee, agent or shareholder owning more
7than 5% of the outstanding shares of the importing distributor
8or distributor referred to in this paragraph, may own or
9acquire an ownership interest of more than 5% of the
10outstanding shares of a wine manufacturer and be issued a wine
11manufacturer's license by any licensing authority.
12    (b) The foregoing provisions shall not apply to any person
13licensed by any licensing authority as a distiller or wine
14manufacturer, or to any subsidiary or affiliate of any
15distiller or wine manufacturer who shall have been heretofore
16licensed by the State Commission as either an importing
17distributor or distributor during the annual licensing period
18expiring June 30, 1947, and shall actually have made sales
19regularly to retailers.
20    (c) Provided, however, that in such instances where a
21distributor's or importing distributor's license has been
22issued to any distiller or wine manufacturer or to any
23subsidiary or affiliate of any distiller or wine manufacturer
24who has, during the licensing period ending June 30, 1947, sold
25or distributed as such licensed distributor or importing
26distributor alcoholic liquors and wines to retailers, such

 

 

SB2797 Engrossed- 27 -LRB099 19929 RPS 44328 b

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

 

 

SB2797 Engrossed- 28 -LRB099 19929 RPS 44328 b

1premises to non-licensees for on or off-premises consumption
2for the premises in which he or she actually conducts such
3business beer manufactured by the brewer, class 1 brewer, or
4class 2 brewer. Such sales shall be limited to on-premises,
5in-person sales only, for lawful consumption on or off
6premises. Such authorization shall be considered a privilege
7granted by the brewer license and, other than a manufacturer of
8beer as stated above, no manufacturer or distributor or
9importing distributor, excluding airplane licensees exercising
10powers provided in paragraph (i) of Section 5-1 of this Act, or
11any subsidiary or affiliate thereof, or any officer, associate,
12member, partner, representative, employee or agent, or
13shareholder shall be issued a retailer's license, nor shall any
14person having a retailer's license, excluding airplane
15licensees exercising powers provided in paragraph (i) of
16Section 5-1 of this Act, or any subsidiary or affiliate
17thereof, or any officer, associate, member, partner,
18representative or agent, or shareholder be issued a
19manufacturer's license or importing distributor's license.
20    A person who holds a class 1 or class 2 brewer license and
21is authorized by this Section to sell beer to non-licensees
22shall not sell beer to non-licensees from more than 3 total
23brewer or commonly owned brew pub licensed locations in this
24State. The class 1 or class 2 brewer shall designate to the
25State Commission the brewer or brew pub locations from which it
26will sell beer to non-licensees.

 

 

SB2797 Engrossed- 29 -LRB099 19929 RPS 44328 b

1    A person licensed as a craft distiller not affiliated with
2any other person manufacturing spirits may be authorized by the
3Commission to sell up to 2,500 gallons of spirits produced by
4the person to non-licensees for on or off-premises consumption
5for the premises in which he or she actually conducts business
6permitting only the retail sale of spirits manufactured at such
7premises. Such sales shall be limited to on-premises, in-person
8sales only, for lawful consumption on or off premises, and such
9authorization shall be considered a privilege granted by the
10craft distiller license. A craft distiller licensed for retail
11sale shall secure liquor liability insurance coverage in an
12amount at least equal to the maximum liability amounts set
13forth in subsection (a) of Section 6-21 of this Act.
14    A craft distiller license holder shall not deliver any
15alcoholic liquor to any non-licensee off the licensed premises.
16A craft distiller shall affirm in its annual craft distiller's
17license application that it does not produce more than 100,000
18gallons of distilled spirits annually and that the craft
19distiller does not sell more than 2,500 gallons of spirits to
20non-licensees for on or off-premises consumption. In the
21application, which shall be sworn under penalty of perjury, the
22craft distiller shall state the volume of production and sales
23for each year since the craft distiller's establishment.
24    (f) (Blank).
25    (g) Notwithstanding any of the foregoing prohibitions, a
26limited wine manufacturer may sell at retail at its

 

 

SB2797 Engrossed- 30 -LRB099 19929 RPS 44328 b

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

 

 

SB2797 Engrossed- 31 -LRB099 19929 RPS 44328 b

1continues to diligently adhere to all representations made in
2writing to the State Commission on or before February 18, 2015,
3or thereafter, or in the affidavit filed by that person with
4the State Commission to support the issuance of a retail
5license and to abide by all applicable laws and duly adopted
6rules.
7(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
8revised 10-30-15.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.