SB2797 EnrolledLRB099 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 Liquor Control Act of 1934 is amended by
5changing Sections 5-1, 5-3, 6-4, and 6-31 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. Class 1 Brewer, Class 11. Class 2 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    (s) Craft distiller tasting permit.
10    No person, firm, partnership, corporation, or other legal
11business entity that is engaged in the manufacturing of wine
12may concurrently obtain and hold a wine-maker's license and a
13wine manufacturer's license.
14    (a) A manufacturer's license shall allow the manufacture,
15importation in bulk, storage, distribution and sale of
16alcoholic liquor to persons without the State, as may be
17permitted by law and to licensees in this State as follows:
18    Class 1. A Distiller may make sales and deliveries of
19alcoholic liquor to distillers, rectifiers, importing
20distributors, distributors and non-beverage users and to no
21other licensees.
22    Class 2. A Rectifier, who is not a distiller, as defined
23herein, may make sales and deliveries of alcoholic liquor to
24rectifiers, importing distributors, distributors, retailers
25and non-beverage users and to no other licensees.
26    Class 3. A Brewer may make sales and deliveries of beer to

 

 

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

 

 

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1effective date of Public Act 95-634) this amendatory Act of the
295th General Assembly, is a holder of a second-class
3wine-maker's license and annually produces more than 25,000
4gallons of its own wine and who distributes its wine to
5licensed retailers shall cease this practice on or before July
61, 2008 in compliance with Public Act 95-634 this amendatory
7Act of the 95th General Assembly.
8    Class 8. A limited wine-manufacturer may make sales and
9deliveries not to exceed 40,000 gallons of wine per year to
10distributors, and to non-licensees in accordance with the
11provisions of this Act.
12    Class 9. A craft distiller license shall allow the
13manufacture of up to 100,000 30,000 gallons of spirits by
14distillation for one year after the effective date of this
15amendatory Act of the 97th General Assembly and up to 35,000
16gallons of spirits by distillation per year thereafter and the
17storage of such spirits. If a craft distiller licensee,
18including a craft distiller licensee who holds more than one
19craft distiller license, is not affiliated with any other
20manufacturer of spirits, then the craft distiller licensee may
21sell such spirits to distributors in this State and up to 2,500
22gallons of such spirits to non-licensees to the extent
23permitted by any exemption approved by the Commission pursuant
24to Section 6-4 of this Act. A craft distiller license holder
25may store such spirits at a non-contiguous licensed location,
26but at no time shall a craft distiller license holder directly

 

 

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1or indirectly produce in the aggregate more than 100,000
2gallons of spirits per year.
3    A craft distiller licensee may hold more than one craft
4distiller's license. However, a craft distiller that holds more
5than one craft distiller license shall not manufacture, in the
6aggregate, more than 100,000 gallons of spirits by distillation
7per year and shall not sell, in the aggregate, more than 2,500
8gallons of such spirits to non-licensees in accordance with an
9exemption approved by the State Commission pursuant to Section
106-4 of this Act.
11    Any craft distiller licensed under this Act who on July 28,
122010 (the effective date of Public Act 96-1367) this amendatory
13Act of the 96th General Assembly was licensed as a distiller
14and manufactured no more spirits than permitted by this Section
15shall not be required to pay the initial licensing fee.
16    Class 10. A class 1 brewer license, which may only be
17issued to a licensed brewer or licensed non-resident dealer,
18shall allow the manufacture of up to 930,000 gallons of beer
19per year provided that the class 1 brewer licensee does not
20manufacture more than a combined 930,000 gallons of beer per
21year and is not a member of or affiliated with, directly or
22indirectly, a manufacturer that produces more than 930,000
23gallons of beer per year or any other alcoholic liquor. A class
241 brewer licensee may make sales and deliveries to importing
25distributors and distributors and to retail licensees in
26accordance with the conditions set forth in paragraph (18) of

 

 

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1subsection (a) of Section 3-12 of this Act.
2    Class 11. A class 2 brewer license, which may only be
3issued to a licensed brewer or licensed non-resident dealer,
4shall allow the manufacture of up to 3,720,000 gallons of beer
5per year provided that the class 2 brewer licensee does not
6manufacture more than a combined 3,720,000 gallons of beer per
7year and is not a member of or affiliated with, directly or
8indirectly, a manufacturer that produces more than 3,720,000
9gallons of beer per year or any other alcoholic liquor. A class
102 brewer licensee may make sales and deliveries to importing
11distributors and distributors, but shall not make sales or
12deliveries to any other licensee. If the State Commission
13provides prior approval, a class 2 brewer licensee may annually
14transfer up to 3,720,000 gallons of beer manufactured by that
15class 2 brewer licensee to the premises of a licensed class 2
16brewer wholly owned and operated by the same licensee.
17    (a-1) A manufacturer which is licensed in this State to
18make sales or deliveries of alcoholic liquor to licensed
19distributors or importing distributors and which enlists
20agents, representatives, or individuals acting on its behalf
21who contact licensed retailers on a regular and continual basis
22in this State must register those agents, representatives, or
23persons acting on its behalf with the State Commission.
24    Registration of agents, representatives, or persons acting
25on behalf of a manufacturer is fulfilled by submitting a form
26to the Commission. The form shall be developed by the

 

 

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

 

 

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

 

 

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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 an
7Illinois licensed distributor (unless the licensee purchases
8less than $500 of alcoholic liquors for the special event, in
9which case the licensee may purchase the alcoholic liquors from
10a licensed retailer) and shall allow the licensee to sell and
11offer for sale, at retail, alcoholic liquors for use or
12consumption, but not for resale in any form and only at the
13location and on the specific dates designated for the special
14event in the license. An applicant for a special event retailer
15license must (i) furnish with the application: (A) a resale
16number issued under Section 2c of the Retailers' Occupation Tax
17Act or evidence that the applicant is registered under Section
182a of the Retailers' Occupation Tax Act, (B) a current, valid
19exemption identification number issued under Section 1g of the
20Retailers' Occupation Tax Act, and a certification to the
21Commission that the purchase of alcoholic liquors will be a
22tax-exempt purchase, or (C) a statement that the applicant is
23not registered under Section 2a of the Retailers' Occupation
24Tax Act, does not hold a resale number under Section 2c of the
25Retailers' Occupation Tax Act, and does not hold an exemption
26number under Section 1g of the Retailers' Occupation Tax Act,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1licensee to ship into and warehouse alcoholic liquor into this
2State from any point outside of this State, and to sell such
3alcoholic liquor to Illinois licensed foreign importers and
4importing distributors and to no one else in this State;
5provided that (i) said non-resident dealer shall register with
6the Illinois Liquor Control Commission each and every brand of
7alcoholic liquor which it proposes to sell to Illinois
8licensees during the license period, (ii) it shall comply with
9all of the provisions of Section 6-9 hereof with respect to
10registration of such Illinois licensees as may be granted the
11right to sell such brands at wholesale, and (iii) the
12non-resident dealer shall comply with the provisions of
13Sections 6-5 and 6-6 of this Act to the same extent that these
14provisions apply to manufacturers.
15    (n) A brew pub license shall allow the licensee to only (i)
16manufacture up to 155,000 gallons of beer per year only on the
17premises specified in the license, (ii) make sales of the beer
18manufactured on the premises or, with the approval of the
19Commission, beer manufactured on another brew pub licensed
20premises that is wholly owned and operated by the same licensee
21to importing distributors, distributors, and to non-licensees
22for use and consumption, (iii) store the beer upon the
23premises, (iv) sell and offer for sale at retail from the
24licensed premises for off-premises consumption no more than
25155,000 gallons per year so long as such sales are only made
26in-person, (v) sell and offer for sale at retail for use and

 

 

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1consumption on the premises specified in the license any form
2of alcoholic liquor purchased from a licensed distributor or
3importing distributor, and (vi) with the prior approval of the
4Commission, annually transfer no more than 155,000 gallons of
5beer manufactured on the premises to a licensed brew pub wholly
6owned and operated by the same licensee.
7    A brew pub licensee shall not under any circumstance sell
8or offer for sale beer manufactured by the brew pub licensee to
9retail licensees.
10    A person who holds a class 2 brewer license may
11simultaneously hold a brew pub license if the class 2 brewer
12(i) does not, under any circumstance, sell or offer for sale
13beer manufactured by the class 2 brewer to retail licensees;
14(ii) does not hold more than 3 brew pub licenses in this State;
15(iii) does not manufacture more than a combined 3,720,000
16gallons of beer per year, including the beer manufactured at
17the brew pub; and (iv) is not a member of or affiliated with,
18directly or indirectly, a manufacturer that produces more than
193,720,000 gallons of beer per year or any other alcoholic
20liquor.
21    Notwithstanding any other provision of this Act, a licensed
22brewer, class 2 brewer, or non-resident dealer who before July
231, 2015 manufactured less than than 3,720,000 gallons of beer
24per year and held a brew pub license on or before July 1, 2015
25may (i) continue to qualify for and hold that brew pub license
26for the licensed premises and (ii) manufacture more than

 

 

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13,720,000 gallons of beer per year and continue to qualify for
2and hold that brew pub license if that brewer, class 2 brewer,
3or non-resident dealer does not simultaneously hold a class 1
4brewer license and is not a member of or affiliated with,
5directly or indirectly, a manufacturer that produces more than
63,720,000 gallons of beer per year or that produces any other
7alcoholic liquor.
8    (o) A caterer retailer license shall allow the holder to
9serve alcoholic liquors as an incidental part of a food service
10that serves prepared meals which excludes the serving of snacks
11as the primary meal, either on or off-site whether licensed or
12unlicensed.
13    (p) An auction liquor license shall allow the licensee to
14sell and offer for sale at auction wine and spirits for use or
15consumption, or for resale by an Illinois liquor licensee in
16accordance with provisions of this Act. An auction liquor
17license will be issued to a person and it will permit the
18auction liquor licensee to hold the auction anywhere in the
19State. An auction liquor license must be obtained for each
20auction at least 14 days in advance of the auction date.
21    (q) A special use permit license shall allow an Illinois
22licensed retailer to transfer a portion of its alcoholic liquor
23inventory from its retail licensed premises to the premises
24specified in the license hereby created, and to sell or offer
25for sale at retail, only in the premises specified in the
26license hereby created, the transferred alcoholic liquor for

 

 

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

 

 

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1and the Commission to conduct audits for the purpose of
2ensuring compliance with Public Act 95-634 this amendatory Act.
3    A winery shipper licensee must pay to the Department of
4Revenue the State liquor gallonage tax under Section 8-1 for
5all wine that is sold by the licensee and shipped to a person
6in this State. For the purposes of Section 8-1, a winery
7shipper licensee shall be taxed in the same manner as a
8manufacturer of wine. A licensee who is not otherwise required
9to register under the Retailers' Occupation Tax Act must
10register under the Use Tax Act to collect and remit use tax to
11the Department of Revenue for all gallons of wine that are sold
12by the licensee and shipped to persons in this State. If a
13licensee fails to remit the tax imposed under this Act in
14accordance with the provisions of Article VIII of this Act, the
15winery shipper's license shall be revoked in accordance with
16the provisions of Article VII of this Act. If a licensee fails
17to properly register and remit tax under the Use Tax Act or the
18Retailers' Occupation Tax Act for all wine that is sold by the
19winery shipper and shipped to persons in this State, the winery
20shipper's license shall be revoked in accordance with the
21provisions of Article VII of this Act.
22    A winery shipper licensee must collect, maintain, and
23submit to the Commission on a semi-annual basis the total
24number of cases per resident of wine shipped to residents of
25this State. A winery shipper licensed under this subsection (r)
26must comply with the requirements of Section 6-29 of this

 

 

SB2797 Enrolled- 21 -LRB099 19929 RPS 44328 b

1amendatory Act.
2    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
3Section 3-12, the State Commission may receive, respond to, and
4investigate any complaint and impose any of the remedies
5specified in paragraph (1) of subsection (a) of Section 3-12.
6    (s) A craft distiller tasting permit license shall allow an
7Illinois licensed craft distiller to transfer a portion of its
8alcoholic liquor inventory from its craft distiller licensed
9premises to the premises specified in the license hereby
10created and to conduct a sampling, only in the premises
11specified in the license hereby created, of the transferred
12alcoholic liquor in accordance with subsection (c) of Section
136-31 of this Act. The transferred alcoholic liquor may not be
14sold or resold in any form. An applicant for the craft
15distiller tasting permit license must also submit with the
16application proof satisfactory to the State Commission that the
17applicant will provide dram shop liability insurance to the
18maximum limits and have local authority approval.
19(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
2098-756, eff. 7-16-14; 99-448, eff. 8-24-15; revised 10-27-15.)
 
21    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
22    Sec. 5-3. License fees. Except as otherwise provided
23herein, at the time application is made to the State Commission
24for a license of any class, the applicant shall pay to the
25State Commission the fee hereinafter provided for the kind of

 

 

SB2797 Enrolled- 22 -LRB099 19929 RPS 44328 b

1license applied for.
2    The fee for licenses issued by the State Commission shall
3be as follows:
4    For a manufacturer's license:
5    Class 1. Distiller .............................$3,600
6    Class 2. Rectifier .............................3,600
7    Class 3. Brewer ................................900
8    Class 4. First-class Wine Manufacturer .........600
9    Class 5. Second-class
10        Wine Manufacturer ..........................1,200
11    Class 6. First-class wine-maker ................600
12    Class 7. Second-class wine-maker ...............1200
13    Class 8. Limited Wine Manufacturer..............120
14    Class 9. Craft Distiller........................ 1,800
15    Class 10. Class 1 Brewer........................25
16    Class 11. Class 2 Brewer........................ 25
17    For a Brew Pub License .........................1,050
18    For a caterer retailer's license................200
19    For a foreign importer's license ...............25
20    For an importing distributor's license .........25
21    For a distributor's license ....................270
22    For a non-resident dealer's license
23        (500,000 gallons or over) ..................270
24    For a non-resident dealer's license
25        (under 500,000 gallons) ....................90
26    For a wine-maker's premises license ............100

 

 

SB2797 Enrolled- 23 -LRB099 19929 RPS 44328 b

1    For a winery shipper's license
2        (under 250,000 gallons).....................150
3    For a winery shipper's license
4        (250,000 or over, but under 500,000 gallons).500
5    For a winery shipper's license
6        (500,000 gallons or over)...................1,000
7    For a wine-maker's premises license,
8        second location ............................350
9    For a wine-maker's premises license,
10        third location .............................350
11    For a retailer's license .......................500
12    For a special event retailer's license,
13        (not-for-profit) ...........................25
14    For a special use permit license,
15        one day only ...............................50
16        2 days or more .............................100
17    For a railroad license .........................60
18    For a boat license .............................180
19    For an airplane license, times the
20        licensee's maximum number of aircraft
21        in flight, serving liquor over the
22        State at any given time, which either
23        originate, terminate, or make
24        an intermediate stop in the State ..........60
25    For a non-beverage user's license:
26        Class 1 ....................................24

 

 

SB2797 Enrolled- 24 -LRB099 19929 RPS 44328 b

1        Class 2 ....................................60
2        Class 3 ....................................120
3        Class 4 ....................................240
4        Class 5 ....................................600
5    For a broker's license .........................600
6    For an auction liquor license ..................50
7    For a homebrewer special event permit........... 25
8    For a craft distiller tasting permit............ 25
9    Fees collected under this Section shall be paid into the
10Dram Shop Fund. On and after July 1, 2003, of the funds
11received for a retailer's license, in addition to the first
12$175, an additional $75 shall be paid into the Dram Shop Fund,
13and $250 shall be paid into the General Revenue Fund. Beginning
14June 30, 1990 and on June 30 of each subsequent year through
15June 29, 2003, any balance over $5,000,000 remaining in the
16Dram Shop Fund shall be credited to State liquor licensees and
17applied against their fees for State liquor licenses for the
18following year. The amount credited to each licensee shall be a
19proportion of the balance in the Dram Fund that is the same as
20the proportion of the license fee paid by the licensee under
21this Section for the period in which the balance was
22accumulated to the aggregate fees paid by all licensees during
23that period.
24    No fee shall be paid for licenses issued by the State
25Commission to the following non-beverage users:
26        (a) Hospitals, sanitariums, or clinics when their use

 

 

SB2797 Enrolled- 25 -LRB099 19929 RPS 44328 b

1    of alcoholic liquor is exclusively medicinal, mechanical
2    or scientific.
3        (b) Universities, colleges of learning or schools when
4    their use of alcoholic liquor is exclusively medicinal,
5    mechanical or scientific.
6        (c) Laboratories when their use is exclusively for the
7    purpose of scientific research.
8(Source: P.A. 98-55, eff. 7-5-13; 99-448, eff. 8-24-15.)
 
9    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
10    Sec. 6-4. (a) No person licensed by any licensing authority
11as a distiller, or a wine manufacturer, or any subsidiary or
12affiliate thereof, or any officer, associate, member, partner,
13representative, employee, agent or shareholder owning more
14than 5% of the outstanding shares of such person shall be
15issued an importing distributor's or distributor's license,
16nor shall any person licensed by any licensing authority as an
17importing distributor, distributor or retailer, or any
18subsidiary or affiliate thereof, or any officer or associate,
19member, partner, representative, employee, agent or
20shareholder owning more than 5% of the outstanding shares of
21such person be issued a distiller's license, craft distiller's
22license, or a wine manufacturer's license; and no person or
23persons licensed as a distiller or craft distiller by any
24licensing authority shall have any interest, directly or
25indirectly, with such distributor or importing distributor.

 

 

SB2797 Enrolled- 26 -LRB099 19929 RPS 44328 b

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

 

 

SB2797 Enrolled- 27 -LRB099 19929 RPS 44328 b

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

 

 

SB2797 Enrolled- 28 -LRB099 19929 RPS 44328 b

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

 

 

SB2797 Enrolled- 29 -LRB099 19929 RPS 44328 b

1with any other person manufacturing spirits may be authorized
2by the Commission to sell up to 2,500 gallons of spirits
3produced by the person to non-licensees for on or off-premises
4consumption for the premises in which he or she actually
5conducts business permitting only the retail sale of spirits
6manufactured at such premises. Such sales shall be limited to
7on-premises, in-person sales only, for lawful consumption on or
8off premises, and such authorization shall be considered a
9privilege granted by the craft distiller license. A craft
10distiller licensed for retail sale shall secure liquor
11liability insurance coverage in an amount at least equal to the
12maximum liability amounts set forth in subsection (a) of
13Section 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 Enrolled- 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 Enrolled- 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    (235 ILCS 5/6-31)
10    Sec. 6-31. Product sampling.
11    (a) Retailer, distributor, importing distributor,
12manufacturer and nonresident dealer licensees may conduct
13product sampling for consumption at a licensed retail location.
14Up to 3 samples, consisting of no more than (i) 1/4 ounce of
15distilled spirits, (ii) one ounce of wine, or (iii) 2 ounces of
16beer may be served to a consumer in one day.
17    (b) Notwithstanding the provisions of subsection (a), an
18on-premises retail licensee may offer for sale and serve more
19than one drink per person for sampling purposes. In any event,
20all provisions of Section 6-28 shall apply to an on-premises
21retail licensee that conducts product sampling.
22    (c) A craft distiller tasting permit licensee may conduct
23product sampling of distilled spirits for consumption at the
24location specified in the craft distiller tasting permit
25license. Up to 3 samples, consisting of no more than 1/4 ounce

 

 

SB2797 Enrolled- 32 -LRB099 19929 RPS 44328 b

1of distilled spirits, may be served to a consumer in one day.
2(Source: P.A. 99-46, eff. 7-15-15.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.