HB2462 96TH GENERAL ASSEMBLY


 


 
96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB2462

 

Introduced 2/19/2009, by Rep. Julie Hamos

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/3-12   from Ch. 43, par. 108
235 ILCS 5/5-1   from Ch. 43, par. 115
235 ILCS 5/5-3   from Ch. 43, par. 118
235 ILCS 5/6-36 new

    Amends the Liquor Control Act of 1934. Creates a retail wine shipper's license, which allows a person with a wine retailing or wine auctioning license under the laws of another state to ship wine directly to a resident of this State who is 21 years of age or older for that resident's personal use and not for resale. Sets forth the licensure requirements, license fee, grounds for discipline, and administrative procedure. Provides that sale and shipment by a retail wine shipper licensee pursuant to this Act shall be deemed to constitute a sale in this State for the purposes of the Retailers' Occupation Tax Act. Requires specific labelling on each shipment. Provides that nonpayment of taxes for all wine that is sold and shipped to a person in this State will result in revocation of the license. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning liquor.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Liquor Control Act of 1934 is amended by
5 changing Sections 3-12, 5-1, and 5-3 and by adding Section 6-36
6 as follows:
 
7     (235 ILCS 5/3-12)  (from Ch. 43, par. 108)
8     Sec. 3-12. Powers and duties of State Commission.
9     (a) The State commission shall have the following powers,
10 functions and duties:
11         (1) To receive applications and to issue licenses to
12     manufacturers, foreign importers, importing distributors,
13     distributors, non-resident dealers, on premise consumption
14     retailers, off premise sale retailers, special event
15     retailer licensees, special use permit licenses, auction
16     liquor licenses, brew pubs, caterer retailers,
17     non-beverage users, railroads, including owners and
18     lessees of sleeping, dining and cafe cars, airplanes,
19     boats, brokers, and wine maker's premises licensees in
20     accordance with the provisions of this Act, and to suspend
21     or revoke such licenses upon the State commission's
22     determination, upon notice after hearing, that a licensee
23     has violated any provision of this Act or any rule or

 

 

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1     regulation issued pursuant thereto and in effect for 30
2     days prior to such violation. Except in the case of an
3     action taken pursuant to a violation of Section 6-3, 6-5,
4     or 6-9, any action by the State Commission to suspend or
5     revoke a licensee's license may be limited to the license
6     for the specific premises where the violation occurred.
7         In lieu of suspending or revoking a license, the
8     commission may impose a fine, upon the State commission's
9     determination and notice after hearing, that a licensee has
10     violated any provision of this Act or any rule or
11     regulation issued pursuant thereto and in effect for 30
12     days prior to such violation. The fine imposed under this
13     paragraph may not exceed $500 for each violation. Each day
14     that the activity, which gave rise to the original fine,
15     continues is a separate violation. The maximum fine that
16     may be levied against any licensee, for the period of the
17     license, shall not exceed $20,000. The maximum penalty that
18     may be imposed on a licensee for selling a bottle of
19     alcoholic liquor with a foreign object in it or serving
20     from a bottle of alcoholic liquor with a foreign object in
21     it shall be the destruction of that bottle of alcoholic
22     liquor for the first 10 bottles so sold or served from by
23     the licensee. For the eleventh bottle of alcoholic liquor
24     and for each third bottle thereafter sold or served from by
25     the licensee with a foreign object in it, the maximum
26     penalty that may be imposed on the licensee is the

 

 

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1     destruction of the bottle of alcoholic liquor and a fine of
2     up to $50.
3         (2) To adopt such rules and regulations consistent with
4     the provisions of this Act which shall be necessary to
5     carry on its functions and duties to the end that the
6     health, safety and welfare of the People of the State of
7     Illinois shall be protected and temperance in the
8     consumption of alcoholic liquors shall be fostered and
9     promoted and to distribute copies of such rules and
10     regulations to all licensees affected thereby.
11         (3) To call upon other administrative departments of
12     the State, county and municipal governments, county and
13     city police departments and upon prosecuting officers for
14     such information and assistance as it deems necessary in
15     the performance of its duties.
16         (4) To recommend to local commissioners rules and
17     regulations, not inconsistent with the law, for the
18     distribution and sale of alcoholic liquors throughout the
19     State.
20         (5) To inspect, or cause to be inspected, any premises
21     in this State where alcoholic liquors are manufactured,
22     distributed, warehoused, or sold.
23         (5.1) Upon receipt of a complaint or upon having
24     knowledge that any person is engaged in business as a
25     manufacturer, importing distributor, distributor, or
26     retailer without a license or valid license, to notify the

 

 

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

 

 

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1     subsection shall be held in Springfield or Chicago, at
2     whichever location is the more convenient for the majority
3     of persons who are parties to the hearing.
4         (7) The commission shall establish uniform systems of
5     accounts to be kept by all retail licensees having more
6     than 4 employees, and for this purpose the commission may
7     classify all retail licensees having more than 4 employees
8     and establish a uniform system of accounts for each class
9     and prescribe the manner in which such accounts shall be
10     kept. The commission may also prescribe the forms of
11     accounts to be kept by all retail licensees having more
12     than 4 employees, including but not limited to accounts of
13     earnings and expenses and any distribution, payment, or
14     other distribution of earnings or assets, and any other
15     forms, records and memoranda which in the judgment of the
16     commission may be necessary or appropriate to carry out any
17     of the provisions of this Act, including but not limited to
18     such forms, records and memoranda as will readily and
19     accurately disclose at all times the beneficial ownership
20     of such retail licensed business. The accounts, forms,
21     records and memoranda shall be available at all reasonable
22     times for inspection by authorized representatives of the
23     State commission or by any local liquor control
24     commissioner or his or her authorized representative. The
25     commission, may, from time to time, alter, amend or repeal,
26     in whole or in part, any uniform system of accounts, or the

 

 

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1     form and manner of keeping accounts.
2         (8) In the conduct of any hearing authorized to be held
3     by the commission, to appoint, at the commission's
4     discretion, hearing officers to conduct hearings involving
5     complex issues or issues that will require a protracted
6     period of time to resolve, to examine, or cause to be
7     examined, under oath, any licensee, and to examine or cause
8     to be examined the books and records of such licensee; to
9     hear testimony and take proof material for its information
10     in the discharge of its duties hereunder; to administer or
11     cause to be administered oaths; for any such purpose to
12     issue subpoena or subpoenas to require the attendance of
13     witnesses and the production of books, which shall be
14     effective in any part of this State, and to adopt rules to
15     implement its powers under this paragraph (8).
16         Any Circuit Court may by order duly entered, require
17     the attendance of witnesses and the production of relevant
18     books subpoenaed by the State commission and the court may
19     compel obedience to its order by proceedings for contempt.
20         (9) To investigate the administration of laws in
21     relation to alcoholic liquors in this and other states and
22     any foreign countries, and to recommend from time to time
23     to the Governor and through him or her to the legislature
24     of this State, such amendments to this Act, if any, as it
25     may think desirable and as will serve to further the
26     general broad purposes contained in Section 1-2 hereof.

 

 

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1         (10) To adopt such rules and regulations consistent
2     with the provisions of this Act which shall be necessary
3     for the control, sale or disposition of alcoholic liquor
4     damaged as a result of an accident, wreck, flood, fire or
5     other similar occurrence.
6         (11) To develop industry educational programs related
7     to responsible serving and selling, particularly in the
8     areas of overserving consumers and illegal underage
9     purchasing and consumption of alcoholic beverages.
10         (11.1) To license persons providing education and
11     training to alcohol beverage sellers and servers under the
12     Beverage Alcohol Sellers and Servers Education and
13     Training (BASSET) programs and to develop and administer a
14     public awareness program in Illinois to reduce or eliminate
15     the illegal purchase and consumption of alcoholic beverage
16     products by persons under the age of 21. Application for a
17     license shall be made on forms provided by the State
18     Commission.
19         (12) To develop and maintain a repository of license
20     and regulatory information.
21         (13) On or before January 15, 1994, the Commission
22     shall issue a written report to the Governor and General
23     Assembly that is to be based on a comprehensive study of
24     the impact on and implications for the State of Illinois of
25     Section 1926 of the Federal ADAMHA Reorganization Act of
26     1992 (Public Law 102-321). This study shall address the

 

 

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1     extent to which Illinois currently complies with the
2     provisions of P.L. 102-321 and the rules promulgated
3     pursuant thereto.
4         As part of its report, the Commission shall provide the
5     following essential information:
6             (i) the number of retail distributors of tobacco
7         products, by type and geographic area, in the State;
8             (ii) the number of reported citations and
9         successful convictions, categorized by type and
10         location of retail distributor, for violation of the
11         Sale of Tobacco to Minors Act and the Smokeless Tobacco
12         Limitation Act;
13             (iii) the extent and nature of organized
14         educational and governmental activities that are
15         intended to promote, encourage or otherwise secure
16         compliance with any Illinois laws that prohibit the
17         sale or distribution of tobacco products to minors; and
18             (iv) the level of access and availability of
19         tobacco products to individuals under the age of 18.
20         To obtain the data necessary to comply with the
21     provisions of P.L. 102-321 and the requirements of this
22     report, the Commission shall conduct random, unannounced
23     inspections of a geographically and scientifically
24     representative sample of the State's retail tobacco
25     distributors.
26         The Commission shall consult with the Department of

 

 

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1     Public Health, the Department of Human Services, the
2     Illinois State Police and any other executive branch
3     agency, and private organizations that may have
4     information relevant to this report.
5         The Commission may contract with the Food and Drug
6     Administration of the U.S. Department of Health and Human
7     Services to conduct unannounced investigations of Illinois
8     tobacco vendors to determine compliance with federal laws
9     relating to the illegal sale of cigarettes and smokeless
10     tobacco products to persons under the age of 18.
11         (14) On or before April 30, 2008 and every 2 years
12     thereafter, the Commission shall present a written report
13     to the Governor and the General Assembly that shall be
14     based on a study of the impact of this amendatory Act of
15     the 95th General Assembly on the business of soliciting,
16     selling, and shipping wine from inside and outside of this
17     State directly to residents of this State. As part of its
18     report, the Commission shall provide all of the following
19     information:
20             (A) The amount of State excise and sales tax
21         revenues generated.
22             (B) The amount of licensing fees received.
23             (C) The number of cases of wine shipped from inside
24         and outside of this State directly to residents of this
25         State.
26             (D) The number of alcohol compliance operations

 

 

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1         conducted.
2             (E) The number of winery shipper's licenses and
3         retail wine shipper's licenses issued.
4             (F) The number of each of the following: reported
5         violations; cease and desist notices issued by the
6         Commission; notices of violations issued by the
7         Commission and to the Department of Revenue; and
8         notices and complaints of violations to law
9         enforcement officials, including, without limitation,
10         the Illinois Attorney General and the U.S. Department
11         of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
12         (15) As a means to reduce the underage consumption of
13     alcoholic liquors, the Commission shall conduct alcohol
14     compliance operations to investigate whether businesses
15     that are soliciting, selling, and shipping wine from inside
16     or outside of this State directly to residents of this
17     State are licensed by this State or are selling or
18     attempting to sell wine to persons under 21 years of age in
19     violation of this Act.
20         (16) The Commission shall, in addition to notifying any
21     appropriate law enforcement agency, submit notices of
22     complaints or violations of Sections 6-29 and 6-29.1 by
23     persons who do not hold a winery shipper's license or
24     retail wine shipper's license under this amendatory Act to
25     the Illinois Attorney General and to the U.S. Department of
26     Treasury's Alcohol and Tobacco Tax and Trade Bureau.

 

 

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1         (17) (A) A person licensed to make wine under the laws
2     of another state who has a winery shipper's license under
3     this amendatory Act and annually produces less than 25,000
4     gallons of wine or a person who has a first-class or
5     second-class wine manufacturer's license, a first-class or
6     second-class wine-maker's license, or a limited wine
7     manufacturer's license under this Act and annually
8     produces less than 25,000 gallons of wine may make
9     application to the Commission for a self-distribution
10     exemption to allow the sale of not more than 5,000 gallons
11     of the exemption holder's wine to retail licensees per
12     year.
13             (B) In the application, which shall be sworn under
14         penalty of perjury, such person shall state (1) the
15         date it was established; (2) its volume of production
16         and sales for each year since its establishment; (3)
17         its efforts to establish distributor relationships;
18         (4) that a self-distribution exemption is necessary to
19         facilitate the marketing of its wine; and (5) that it
20         will comply with the liquor and revenue laws of the
21         United States, this State, and any other state where it
22         is licensed.
23             (C) The Commission shall approve the application
24         for a self-distribution exemption if such person: (1)
25         is in compliance with State revenue and liquor laws;
26         (2) is not a member of any affiliated group that

 

 

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1         produces more than 25,000 gallons of wine per annum or
2         produces any other alcoholic liquor; (3) will not
3         annually produce for sale more than 25,000 gallons of
4         wine; and (4) will not annually sell more than 5,000
5         gallons of its wine to retail licensees.
6             (D) A self-distribution exemption holder shall
7         annually certify to the Commission its production of
8         wine in the previous 12 months and its anticipated
9         production and sales for the next 12 months. The
10         Commission may fine, suspend, or revoke a
11         self-distribution exemption after a hearing if it
12         finds that the exemption holder has made a material
13         misrepresentation in its application, violated a
14         revenue or liquor law of Illinois, exceeded production
15         of 25,000 gallons of wine in any calendar year, or
16         become part of an affiliated group producing more than
17         25,000 gallons of wine or any other alcoholic liquor.
18             (E) Except in hearings for violations of this Act
19         or amendatory Act or a bona fide investigation by duly
20         sworn law enforcement officials, the Commission, or
21         its agents, the Commission shall maintain the
22         production and sales information of a
23         self-distribution exemption holder as confidential and
24         shall not release such information to any person.
25             (F) The Commission shall issue regulations
26         governing self-distribution exemptions consistent with

 

 

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1         this Section and this Act.
2             (G) Nothing in this subsection (17) shall prohibit
3         a self-distribution exemption holder from entering
4         into or simultaneously having a distribution agreement
5         with a licensed Illinois distributor.
6             (H) It is the intent of this subsection (17) to
7         promote and continue orderly markets. The General
8         Assembly finds that in order to preserve Illinois'
9         regulatory distribution system it is necessary to
10         create an exception for smaller makers of wine as their
11         wines are frequently adjusted in varietals, mixes,
12         vintages, and taste to find and create market niches
13         sometimes too small for distributor or importing
14         distributor business strategies. Limited
15         self-distribution rights will afford and allow smaller
16         makers of wine access to the marketplace in order to
17         develop a customer base without impairing the
18         integrity of the 3-tier system.
19     (b) On or before April 30, 1999, the Commission shall
20 present a written report to the Governor and the General
21 Assembly that shall be based on a study of the impact of this
22 amendatory Act of 1998 on the business of soliciting, selling,
23 and shipping alcoholic liquor from outside of this State
24 directly to residents of this State.
25     As part of its report, the Commission shall provide the
26 following information:

 

 

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1         (i) the amount of State excise and sales tax revenues
2     generated as a result of this amendatory Act of 1998;
3         (ii) the amount of licensing fees received as a result
4     of this amendatory Act of 1998;
5         (iii) the number of reported violations, the number of
6     cease and desist notices issued by the Commission, the
7     number of notices of violations issued to the Department of
8     Revenue, and the number of notices and complaints of
9     violations to law enforcement officials.
10 (Source: P.A. 95-634, eff. 6-1-08.)
 
11     (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
12     Sec. 5-1. Licenses issued by the Illinois Liquor Control
13 Commission shall be of the following classes:
14     (a) Manufacturer's license - Class 1. Distiller, Class 2.
15 Rectifier, Class 3. Brewer, Class 4. First Class Wine
16 Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
17 First Class Winemaker, Class 7. Second Class Winemaker, Class
18 8. Limited Wine Manufacturer,
19     (b) Distributor's license,
20     (c) Importing Distributor's license,
21     (d) Retailer's license,
22     (e) Special Event Retailer's license (not-for-profit),
23     (f) Railroad license,
24     (g) Boat license,
25     (h) Non-Beverage User's license,

 

 

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

 

 

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

 

 

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1 the manufacture of between 50,000 and 150,000 gallons of wine
2 per year, and the storage and sale of such wine to distributors
3 in this State and to persons without the State, as may be
4 permitted by law. A person who, prior to the effective date of
5 this amendatory Act of the 95th General Assembly, is a holder
6 of a second-class wine-maker's license and annually produces
7 more than 25,000 gallons of its own wine and who distributes
8 its wine to licensed retailers shall cease this practice on or
9 before July 1, 2008 in compliance with this amendatory Act of
10 the 95th General Assembly.
11     Class 8. A limited wine-manufacturer may make sales and
12 deliveries not to exceed 40,000 gallons of wine per year to
13 distributors, and to non-licensees in accordance with the
14 provisions of this Act.
15     (a-1) A manufacturer which is licensed in this State to
16 make sales or deliveries of alcoholic liquor and which enlists
17 agents, representatives, or individuals acting on its behalf
18 who contact licensed retailers on a regular and continual basis
19 in this State must register those agents, representatives, or
20 persons acting on its behalf with the State Commission.
21     Registration of agents, representatives, or persons acting
22 on behalf of a manufacturer is fulfilled by submitting a form
23 to the Commission. The form shall be developed by the
24 Commission and shall include the name and address of the
25 applicant, the name and address of the manufacturer he or she
26 represents, the territory or areas assigned to sell to or

 

 

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1 discuss pricing terms of alcoholic liquor, and any other
2 questions deemed appropriate and necessary. All statements in
3 the forms required to be made by law or by rule shall be deemed
4 material, and any person who knowingly misstates any material
5 fact under oath in an application is guilty of a Class B
6 misdemeanor. Fraud, misrepresentation, false statements,
7 misleading statements, evasions, or suppression of material
8 facts in the securing of a registration are grounds for
9 suspension or revocation of the registration.
10     (b) A distributor's license shall allow the wholesale
11 purchase and storage of alcoholic liquors and sale of alcoholic
12 liquors to licensees in this State and to persons without the
13 State, as may be permitted by law.
14     (c) An importing distributor's license may be issued to and
15 held by those only who are duly licensed distributors, upon the
16 filing of an application by a duly licensed distributor, with
17 the Commission and the Commission shall, without the payment of
18 any fee, immediately issue such importing distributor's
19 license to the applicant, which shall allow the importation of
20 alcoholic liquor by the licensee into this State from any point
21 in the United States outside this State, and the purchase of
22 alcoholic liquor in barrels, casks or other bulk containers and
23 the bottling of such alcoholic liquors before resale thereof,
24 but all bottles or containers so filled shall be sealed,
25 labeled, stamped and otherwise made to comply with all
26 provisions, rules and regulations governing manufacturers in

 

 

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1 the preparation and bottling of alcoholic liquors. The
2 importing distributor's license shall permit such licensee to
3 purchase alcoholic liquor from Illinois licensed non-resident
4 dealers and foreign importers only.
5     (d) A retailer's license shall allow the licensee to sell
6 and offer for sale at retail, only in the premises specified in
7 the license, alcoholic liquor for use or consumption, but not
8 for resale in any form. Nothing in this amendatory Act of the
9 95th General Assembly shall deny, limit, remove, or restrict
10 the ability of a holder of a retailer's license to transfer,
11 deliver, or ship alcoholic liquor to the purchaser for use or
12 consumption subject to any applicable local law or ordinance.
13 Any retail license issued to a manufacturer shall only permit
14 the manufacturer to sell beer at retail on the premises
15 actually occupied by the manufacturer. For the purpose of
16 further describing the type of business conducted at a retail
17 licensed premises, a retailer's licensee may be designated by
18 the State Commission as (i) an on premise consumption retailer,
19 (ii) an off premise sale retailer, or (iii) a combined on
20 premise consumption and off premise sale retailer.
21     Notwithstanding any other provision of this subsection
22 (d), a retail licensee may sell alcoholic liquors to a special
23 event retailer licensee for resale to the extent permitted
24 under subsection (e).
25     (e) A special event retailer's license (not-for-profit)
26 shall permit the licensee to purchase alcoholic liquors from an

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1 alcoholic liquor which it proposes to sell to Illinois
2 licensees during the license period, (ii) it shall comply with
3 all of the provisions of Section 6-9 hereof with respect to
4 registration of such Illinois licensees as may be granted the
5 right to sell such brands at wholesale, and (iii) the
6 non-resident dealer shall comply with the provisions of
7 Sections 6-5 and 6-6 of this Act to the same extent that these
8 provisions apply to manufacturers.
9     (n) A brew pub license shall allow the licensee to
10 manufacture beer only on the premises specified in the license,
11 to make sales of the beer manufactured on the premises to
12 importing distributors, distributors, and to non-licensees for
13 use and consumption, to store the beer upon the premises, and
14 to sell and offer for sale at retail from the licensed
15 premises, provided that a brew pub licensee shall not sell for
16 off-premises consumption more than 50,000 gallons per year.
17     (o) A caterer retailer license shall allow the holder to
18 serve alcoholic liquors as an incidental part of a food service
19 that serves prepared meals which excludes the serving of snacks
20 as the primary meal, either on or off-site whether licensed or
21 unlicensed.
22     (p) An auction liquor license shall allow the licensee to
23 sell and offer for sale at auction wine and spirits for use or
24 consumption, or for resale by an Illinois liquor licensee in
25 accordance with provisions of this Act. An auction liquor
26 license will be issued to a person and it will permit the

 

 

HB2462 - 28 - LRB096 04346 ASK 14393 b

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

 

 

HB2462 - 29 - LRB096 04346 ASK 14393 b

1 true copy of its current license in any state in which it is
2 licensed as a manufacturer of wine. An applicant for a winery
3 shipper's license must also complete an application form that
4 provides any other information the Commission deems necessary.
5 The application form shall include an acknowledgement
6 consenting to the jurisdiction of the Commission, the Illinois
7 Department of Revenue, and the courts of this State concerning
8 the enforcement of this Act and any related laws, rules, and
9 regulations, including authorizing the Department of Revenue
10 and the Commission to conduct audits for the purpose of
11 ensuring compliance with this amendatory Act.
12     A winery shipper licensee must pay to the Department of
13 Revenue the State liquor gallonage tax under Section 8-1 for
14 all wine that is sold by the licensee and shipped to a person
15 in this State. For the purposes of Section 8-1, a winery
16 shipper licensee shall be taxed in the same manner as a
17 manufacturer of wine. A licensee who is not otherwise required
18 to register under the Retailers' Occupation Tax Act must
19 register under the Use Tax Act to collect and remit use tax to
20 the Department of Revenue for all gallons of wine that are sold
21 by the licensee and shipped to persons in this State. If a
22 licensee fails to remit the tax imposed under this Act in
23 accordance with the provisions of Article VIII of this Act, the
24 winery shipper's license shall be revoked in accordance with
25 the provisions of Article VII of this Act. If a licensee fails
26 to properly register and remit tax under the Use Tax Act or the

 

 

HB2462 - 30 - LRB096 04346 ASK 14393 b

1 Retailers' Occupation Tax Act for all wine that is sold by the
2 winery shipper and shipped to persons in this State, the winery
3 shipper's license shall be revoked in accordance with the
4 provisions of Article VII of this Act.
5     A winery shipper licensee must collect, maintain, and
6 submit to the Commission on a semi-annual basis the total
7 number of cases per resident of wine shipped to residents of
8 this State. A winery shipper licensed under this subsection (r)
9 must comply with the requirements of Section 6-29 of this
10 amendatory Act.
11     (s) A retail wine shipper's license shall allow a person to
12 ship wine directly to a resident of this State who is 21 years
13 of age or older for that resident's personal use and not for
14 resale. Prior to receiving a retail wine shipper's license, an
15 applicant for the license must provide the Commission with a
16 true copy of its current license in any state in which it is
17 licensed as a wine retailer or wine auction house. An applicant
18 for a retail wine shipper's license must also complete an
19 application form that provides any other information that the
20 Commission deems necessary. The application form shall include
21 an acknowledgement consenting to the jurisdiction of the
22 Commission, the Illinois Department of Revenue, and the courts
23 of this State concerning the enforcement of this Act and any
24 related laws, rules, and regulations, including authorizing
25 the Department of Revenue and the Commission to conduct audits
26 for the purpose of ensuring compliance with this Act.

 

 

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1     A retail wine shipper licensee must pay to the Department
2 of Revenue the State sales tax under Section 8-14 for all wine
3 that is sold by the licensee and shipped to a person in this
4 State. If a licensee fails to remit the tax imposed under this
5 Act in accordance with the provisions of Article VIII of this
6 Act, the retail wine shipper's license shall be revoked in
7 accordance with the provisions of Article VII of this Act.
8     If a licensee fails to properly register and remit tax
9 under the Retailers' Occupation Tax Act for all wine that is
10 sold by the retail wine shipper and shipped to persons in this
11 State, the retail shipper's license shall be revoked in
12 accordance with the provisions of Article VII of this Act. A
13 retail wine shipper licensee must collect, maintain, and submit
14 to the Commission on a semi-annual basis the total number of
15 cases per resident of wine shipped to residents of this State.
16 A retail wine shipper licensed under this subsection (s) must
17 comply with the requirements of Section 6-36 of this Act.
18 (Source: P.A. 95-331, eff. 8-21-07; 95-634, eff. 6-1-08;
19 95-769, eff. 7-29-08.)
 
20     (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
21     Sec. 5-3. License fees. Except as otherwise provided
22 herein, at the time application is made to the State Commission
23 for a license of any class, the applicant shall pay to the
24 State Commission the fee hereinafter provided for the kind of
25 license applied for.

 

 

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1     The fee for licenses issued by the State Commission shall
2 be as follows:
3     For a manufacturer's license:
4    Class 1. Distiller .............................$3,600
5    Class 2. Rectifier .............................3,600
6    Class 3. Brewer ................................900
7    Class 4. First-class Wine Manufacturer .........600
8    Class 5. Second-class
9        Wine Manufacturer ..........................1,200
10    Class 6. First-class wine-maker ................600
11    Class 7. Second-class wine-maker ...............1200
12    Class 8. Limited Wine Manufacturer..............120
13    For a Brew Pub License .........................1,050
14    For a caterer retailer's license................200
15    For a foreign importer's license ...............25
16    For an importing distributor's license .........25
17    For a distributor's license ....................270
18    For a non-resident dealer's license
19        (500,000 gallons or over) ..................270
20    For a non-resident dealer's license
21        (under 500,000 gallons) ....................90
22    For a wine-maker's premises license ............100
23    For a winery shipper's license
24        (under 250,000 gallons).....................150
25    For a winery shipper's license
26        (250,000 or over, but under 500,000 gallons).500

 

 

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1    For a winery shipper's license
2        (500,000 gallons or over)...................1,000
3    For a wine-maker's premises license,
4        second location ............................350
5    For a wine-maker's premises license,
6        third location .............................350
7    For a retailer's license .......................500
8    For a retail wine shipper's license............ 500
9    For a special event retailer's license,
10        (not-for-profit) ...........................25
11    For a special use permit license,
12        one day only ...............................50
13        2 days or more .............................100
14    For a railroad license .........................60
15    For a boat license .............................180
16    For an airplane license, times the
17        licensee's maximum number of aircraft
18        in flight, serving liquor over the
19        State at any given time, which either
20        originate, terminate, or make
21        an intermediate stop in the State ..........60
22    For a non-beverage user's license:
23        Class 1 ....................................24
24        Class 2 ....................................60
25        Class 3 ....................................120
26        Class 4 ....................................240

 

 

HB2462 - 34 - LRB096 04346 ASK 14393 b

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

 

 

HB2462 - 35 - LRB096 04346 ASK 14393 b

1         (c) Laboratories when their use is exclusively for the
2     purpose of scientific research.
3 (Source: P.A. 95-634, eff. 6-1-08.)
 
4     (235 ILCS 5/6-36 new)
5     Sec. 6-36. Retail wine shipper's license.
6     (a) The General Assembly declares that it is the intent of
7 this Section:
8         (1) To authorize direct shipment of wine by an
9     out-of-state wine retailer on the same basis permitted an
10     in-state wine retailer pursuant to the authority of the
11     State under the provisions of Section 2 of the Twenty-First
12     Amendment to the United States Constitution and in
13     conformance with the United States Supreme Court decision
14     decided on May 16, 2005 in Granholm v. Heald.
15         (2) To maintain the State's broad powers granted by
16     Section 2 of the Twenty-First Amendment to the United
17     States Constitution to control the importation or sale of
18     alcoholic liquor and its right to structure its alcoholic
19     liquor distribution system.
20         (3) To provide that, in the event that a court of
21     competent jurisdiction declares or finds that this
22     Section, which is enacted to conform Illinois law to the
23     United States Supreme Court decision, is invalid or
24     unconstitutional, the Illinois General Assembly at its
25     earliest general session shall conduct hearings and study

 

 

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1     methods to conform to any directive or order of the court
2     consistent with the temperance and revenue collection
3     purposes of this Act.
4     (b) Notwithstanding any other provision of law, a retail
5 wine shipper licensee may ship wine, for personal use and not
6 for resale, to any resident of this State who is 21 years of
7 age or older.
8     (c) Notwithstanding any other provision of law, sale and
9 shipment by a retail wine shipper licensee pursuant to this
10 Section shall be deemed to constitute a sale in this State for
11 the purposes of the Retailers' Occupation Tax Act.
12     (d) The shipping container of any wine shipped under this
13 Section shall be clearly labeled with the following words:
14 "CONTAINS ALCOHOL. SIGNATURE OF A PERSON 21 YEARS OF AGE OR
15 OLDER REQUIRED FOR DELIVERY. PROOF OF AGE AND IDENTITY MUST BE
16 SHOWN BEFORE DELIVERY.". This warning must be prominently
17 displayed on the packaging. A licensee shall require the
18 transporter or common carrier that delivers the wine to obtain
19 the signature of a person 21 years of age or older at the
20 delivery address at the time of delivery. At the expense of the
21 licensee, the licensee shall receive a delivery confirmation
22 from the express company, common carrier, or contract carrier
23 indicating the location of the delivery, time of delivery, and
24 the name and signature of the individual 21 years of age or
25 older who accepts delivery. The Commission shall design and
26 create a label or approve a label that must be affixed to the

 

 

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1 shipping container by the licensee.
2     (e) Any person manufacturing, distributing, or selling
3 alcoholic liquor who knowingly ships or transports or causes
4 the shipping or transportation of any alcoholic liquor from a
5 point outside this State to a person in this State who does not
6 hold a manufacturer's, distributor's, importing distributor's,
7 non-resident dealer's, winery shipper's license, or retail
8 wine shipper's license issued by the Liquor Control Commission,
9 other than a shipment of sacramental wine to a bona fide
10 religious organization, a shipment authorized by Section 6-29,
11 subparagraph (17) of Section 3-12, or any other shipment
12 authorized by this Act, is in violation of this Act.
13     The Commission, upon determining, after investigation,
14 that a person has violated this Section, shall give notice to
15 the person by certified mail to cease and desist all shipments
16 of alcoholic liquor into this State and to withdraw from this
17 State within 5 working days after receipt of the notice all
18 shipments of alcoholic liquor then in transit.
19     Whenever the Commission has reason to believe that a person
20 has failed to comply with the Commission notice under this
21 Section, it shall notify the Department of Revenue and file a
22 complaint with the State's Attorney of the county where the
23 alcoholic liquor was delivered or with appropriate law
24 enforcement officials.
25     Failure to comply with the notice issued by the Commission
26 under this Section constitutes a business offense for which the

 

 

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1 person shall be fined not more than $1,000 for a first offense,
2 not more than $5,000 for a second offense, and not more than
3 $10,000 for a third or subsequent offense. Each shipment of
4 alcoholic liquor delivered in violation of the cease and desist
5 notice shall constitute a separate offense.
6     (f) No broker within this State shall solicit consumers to
7 engage in direct wine shipments under this Section.
8     (g) It is not the intent of this Section to impair the
9 distribution of wine through distributors or importing
10 distributors, but only to permit shipments of wine for personal
11 use.
 
12     Section 99. Effective date. This Act takes effect upon
13 becoming law.