Illinois General Assembly - Full Text of SB0401
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Full Text of SB0401  99th General Assembly

SB0401sam001 99TH GENERAL ASSEMBLY

Sen. Michael E. Hastings

Filed: 4/11/2016

 

 


 

 


 
09900SB0401sam001LRB099 03239 RPS 47199 a

1
AMENDMENT TO SENATE BILL 401

2    AMENDMENT NO. ______. Amend Senate Bill 401 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 1-3.38, 1-3.09, 3-12, 5-1, 6-2, 6-4, 6-5,
66-21, and 8-1, by changing and renumbering Section 1-3.40, as
7added by Public Act 99-448, and by adding Section 1-3.43 as
8follows:
 
9    (235 ILCS 5/1-3.09)  (from Ch. 43, par. 95.09)
10    Sec. 1-3.09. "Brewer" means a person who is engaged in the
11manufacture of beer or cider.
12(Source: P.A. 82-783.)
 
13    (235 ILCS 5/1-3.38)
14    Sec. 1-3.38. Class 1 brewer. "Class 1 brewer" means a
15person who is a holder of a brewer license or non-resident

 

 

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1dealer license who manufactures up to 930,000 gallons of beer,
2cider, or any combination thereof per year and who may make
3sales and deliveries to importing distributors and
4distributors and to retail licensees in accordance with the
5conditions set forth in paragraph (18) of subsection (a) of
6Section 3-12 of this Act.
7(Source: P.A. 98-401, eff. 8-16-13; 99-448, eff. 8-24-15.)
 
8    (235 ILCS 5/1-3.42)
9    Sec. 1-3.42 1-3.40. Class 2 brewer. "Class 2 brewer" means
10a person who is a holder of a brewer license or non-resident
11dealer license who manufactures up to 3,720,000 gallons of
12beer, cider, or any combination thereof per year for sale to a
13licensed importing distributor or distributor.
14(Source: P.A. 99-448, eff. 8-24-15; revised 10-28-15.)
 
15    (235 ILCS 5/1-3.43 new)
16    Sec. 1-3.43. Cider. "Cider" means any alcoholic beverage
17obtained by the alcohol fermentation of the juice of apples or
18pears, including, but not limited to, flavored, sparkling, or
19carbonated cider.
 
20    (235 ILCS 5/3-12)
21    Sec. 3-12. Powers and duties of State Commission.
22    (a) The State commission shall have the following powers,
23functions, and duties:

 

 

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

 

 

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1    multiple violations for the sale of alcohol to a person
2    under the age of 21, a second or subsequent violation for
3    the sale of alcohol to a person under the age of 21 shall
4    only be considered if it was committed within 5 years after
5    the date when a prior violation for the sale of alcohol to
6    a person under the age of 21 was committed.
7        The fine imposed under this paragraph may not exceed
8    $500 for each violation. Each day that the activity, which
9    gave rise to the original fine, continues is a separate
10    violation. The maximum fine that may be levied against any
11    licensee, for the period of the license, shall not exceed
12    $20,000. The maximum penalty that may be imposed on a
13    licensee for selling a bottle of alcoholic liquor with a
14    foreign object in it or serving from a bottle of alcoholic
15    liquor with a foreign object in it shall be the destruction
16    of that bottle of alcoholic liquor for the first 10 bottles
17    so sold or served from by the licensee. For the eleventh
18    bottle of alcoholic liquor and for each third bottle
19    thereafter sold or served from by the licensee with a
20    foreign object in it, the maximum penalty that may be
21    imposed on the licensee is the destruction of the bottle of
22    alcoholic liquor and a fine of up to $50.
23        (2) To adopt such rules and regulations consistent with
24    the provisions of this Act which shall be necessary to
25    carry on its functions and duties to the end that the
26    health, safety and welfare of the People of the State of

 

 

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1    Illinois shall be protected and temperance in the
2    consumption of alcoholic liquors shall be fostered and
3    promoted and to distribute copies of such rules and
4    regulations to all licensees affected thereby.
5        (3) To call upon other administrative departments of
6    the State, county and municipal governments, county and
7    city police departments and upon prosecuting officers for
8    such information and assistance as it deems necessary in
9    the performance of its duties.
10        (4) To recommend to local commissioners rules and
11    regulations, not inconsistent with the law, for the
12    distribution and sale of alcoholic liquors throughout the
13    State.
14        (5) To inspect, or cause to be inspected, any premises
15    in this State where alcoholic liquors are manufactured,
16    distributed, warehoused, or sold. Nothing in this Act
17    authorizes an agent of the Commission to inspect private
18    areas within the premises without reasonable suspicion or a
19    warrant during an inspection. "Private areas" include, but
20    are not limited to, safes, personal property, and closed
21    desks.
22        (5.1) Upon receipt of a complaint or upon having
23    knowledge that any person is engaged in business as a
24    manufacturer, importing distributor, distributor, or
25    retailer without a license or valid license, to notify the
26    local liquor authority, file a complaint with the State's

 

 

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

 

 

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

 

 

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

 

 

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1    with the provisions of this Act which shall be necessary
2    for the control, sale or disposition of alcoholic liquor
3    damaged as a result of an accident, wreck, flood, fire or
4    other similar occurrence.
5        (11) To develop industry educational programs related
6    to responsible serving and selling, particularly in the
7    areas of overserving consumers and illegal underage
8    purchasing and consumption of alcoholic beverages.
9        (11.1) To license persons providing education and
10    training to alcohol beverage sellers and servers for
11    mandatory and non-mandatory training under the Beverage
12    Alcohol Sellers and Servers Education and Training
13    (BASSET) programs and to develop and administer a public
14    awareness program in Illinois to reduce or eliminate the
15    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        Prevention of Tobacco Use by Minors and Sale and
12        Distribution of Tobacco Products Act and the Smokeless
13        Tobacco Limitation Act;
14            (iii) the extent and nature of organized
15        educational and governmental activities that are
16        intended to promote, encourage or otherwise secure
17        compliance with any Illinois laws that prohibit the
18        sale or distribution of tobacco products to minors; and
19            (iv) the level of access and availability of
20        tobacco products to individuals under the age of 18.
21        To obtain the data necessary to comply with the
22    provisions of P.L. 102-321 and the requirements of this
23    report, the Commission shall conduct random, unannounced
24    inspections of a geographically and scientifically
25    representative sample of the State's retail tobacco
26    distributors.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        governing self-distribution exemptions consistent with
2        this Section and this Act.
3            (G) Nothing in this subsection (17) shall prohibit
4        a self-distribution exemption holder from entering
5        into or simultaneously having a distribution agreement
6        with a licensed Illinois distributor.
7            (H) It is the intent of this subsection (17) to
8        promote and continue orderly markets. The General
9        Assembly finds that in order to preserve Illinois'
10        regulatory distribution system it is necessary to
11        create an exception for smaller makers of wine as their
12        wines are frequently adjusted in varietals, mixes,
13        vintages, and taste to find and create market niches
14        sometimes too small for distributor or importing
15        distributor business strategies. Limited
16        self-distribution rights will afford and allow smaller
17        makers of wine access to the marketplace in order to
18        develop a customer base without impairing the
19        integrity of the 3-tier system.
20        (18) (A) A class 1 brewer licensee, who must also be
21    either a licensed brewer or licensed non-resident dealer
22    and annually manufacture less than 930,000 gallons of beer,
23    cider, or any combination thereof, may make application to
24    the State Commission for a self-distribution exemption to
25    allow the sale of not more than 232,500 gallons of the
26    exemption holder's beer, cider, or any combination thereof

 

 

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1    to retail licensees per year.
2            (B) In the application, which shall be sworn under
3        penalty of perjury, the class 1 brewer licensee shall
4        state (1) the date it was established; (2) its volume
5        of beer and cider manufactured and sold for each year
6        since its establishment; (3) its efforts to establish
7        distributor relationships; (4) that a
8        self-distribution exemption is necessary to facilitate
9        the marketing of its beer or cider; and (5) that it
10        will comply with the alcoholic beverage and revenue
11        laws of the United States, this State, and any other
12        state where it is licensed.
13            (C) Any application submitted shall be posted on
14        the State Commission's website at least 45 days prior
15        to action by the State Commission. The State Commission
16        shall approve the application for a self-distribution
17        exemption if the class 1 brewer licensee: (1) is in
18        compliance with the State, revenue, and alcoholic
19        beverage laws; (2) is not a member of any affiliated
20        group that manufactures manufacturers more than
21        930,000 gallons of beer, cider, or any combination
22        thereof per annum or produces any other alcoholic
23        beverages; (3) shall not annually manufacture for sale
24        more than 930,000 gallons of beer, cider, or any
25        combination thereof; (4) shall not annually sell more
26        than 232,500 gallons of its beer, cider, or any

 

 

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1        combination thereof to retail licensees; and (5) has
2        relinquished any brew pub license held by the licensee,
3        including any ownership interest it held in the
4        licensed brew pub.
5            (D) A self-distribution exemption holder shall
6        annually certify to the State Commission its
7        manufacture of beer and cider during the previous 12
8        months and its anticipated manufacture and sales of
9        beer and cider for the next 12 months. The State
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 alcoholic beverage law of Illinois,
15        exceeded the manufacture of 930,000 gallons of beer,
16        cider, or any combination thereof in any calendar year
17        or became part of an affiliated group manufacturing
18        more than 930,000 gallons of beer, cider, or any
19        combination thereof or any other alcoholic beverage.
20            (E) The State Commission shall issue rules and
21        regulations governing self-distribution exemptions
22        consistent with this Act.
23            (F) Nothing in this paragraph (18) shall prohibit a
24        self-distribution exemption holder from entering into
25        or simultaneously having a distribution agreement with
26        a licensed Illinois importing distributor or a

 

 

09900SB0401sam001- 18 -LRB099 03239 RPS 47199 a

1        distributor. If a self-distribution exemption holder
2        enters into a distribution agreement and has assigned
3        distribution rights to an importing distributor or
4        distributor, then the self-distribution exemption
5        holder's distribution rights in the assigned
6        territories shall cease in a reasonable time not to
7        exceed 60 days.
8            (G) It is the intent of this paragraph (18) to
9        promote and continue orderly markets. The General
10        Assembly finds that in order to preserve Illinois'
11        regulatory distribution system, it is necessary to
12        create an exception for smaller manufacturers in order
13        to afford and allow such smaller manufacturers of beer
14        and cider access to the marketplace in order to develop
15        a customer base without impairing the integrity of the
16        3-tier system.
17    (b) On or before April 30, 1999, the Commission shall
18present a written report to the Governor and the General
19Assembly that shall be based on a study of the impact of this
20amendatory Act of 1998 on the business of soliciting, selling,
21and shipping alcoholic liquor from outside of this State
22directly to residents of this State.
23    As part of its report, the Commission shall provide the
24following information:
25        (i) the amount of State excise and sales tax revenues
26    generated as a result of this amendatory Act of 1998;

 

 

09900SB0401sam001- 19 -LRB099 03239 RPS 47199 a

1        (ii) the amount of licensing fees received as a result
2    of this amendatory Act of 1998;
3        (iii) the number of reported violations, the number of
4    cease and desist notices issued by the Commission, the
5    number of notices of violations issued to the Department of
6    Revenue, and the number of notices and complaints of
7    violations to law enforcement officials.
8(Source: P.A. 98-401, eff. 8-16-13; 98-939, eff. 7-1-15;
998-941, eff. 1-1-15; 99-78, eff. 7-20-15; 99-448, eff.
108-24-15.)
 
11    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
12    Sec. 5-1. Licenses issued by the Illinois Liquor Control
13Commission shall be of the following classes:
14    (a) Manufacturer's license - Class 1. Distiller, Class 2.
15Rectifier, Class 3. Brewer, Class 4. First Class Wine
16Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
17First Class Winemaker, Class 7. Second Class Winemaker, Class
188. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1910. Class 1 Brewer, Class 11. Class 2 Brewer,
20    (b) Distributor's license,
21    (c) Importing Distributor's license,
22    (d) Retailer's license,
23    (e) Special Event Retailer's license (not-for-profit),
24    (f) Railroad license,
25    (g) Boat license,

 

 

09900SB0401sam001- 20 -LRB099 03239 RPS 47199 a

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

 

 

09900SB0401sam001- 21 -LRB099 03239 RPS 47199 a

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

 

 

09900SB0401sam001- 22 -LRB099 03239 RPS 47199 a

1per year, and the storage and sale of such wine to distributors
2in this State and to persons without the State, as may be
3permitted by law. A person who, prior to June 1, 2008 (the
4effective date of Public Act 95-634) this amendatory Act of the
595th General Assembly, is a holder of a second-class
6wine-maker's license and annually produces more than 25,000
7gallons of its own wine and who distributes its wine to
8licensed retailers shall cease this practice on or before July
91, 2008 in compliance with Public Act 95-634 this amendatory
10Act of the 95th General Assembly.
11    Class 8. A limited wine-manufacturer may make sales and
12deliveries not to exceed 40,000 gallons of wine per year to
13distributors, and to non-licensees in accordance with the
14provisions of this Act.
15    Class 9. A craft distiller license shall allow the
16manufacture of up to 30,000 gallons of spirits by distillation
17for one year after March 1, 2013 (the effective date of Public
18Act 97-1166) this amendatory Act of the 97th General Assembly
19and up to 35,000 gallons of spirits by distillation per year
20thereafter and the storage of such spirits. If a craft
21distiller licensee is not affiliated with any other
22manufacturer, then the craft distiller licensee may sell such
23spirits to distributors in this State and up to 2,500 gallons
24of such spirits to non-licensees to the extent permitted by any
25exemption approved by the Commission pursuant to Section 6-4 of
26this Act.

 

 

09900SB0401sam001- 23 -LRB099 03239 RPS 47199 a

1    Any craft distiller licensed under this Act who on July 28,
22010 (the effective date of Public Act 96-1367) this amendatory
3Act of the 96th General Assembly was licensed as a distiller
4and manufactured no more spirits than permitted by this Section
5shall not be required to pay the initial licensing fee.
6    Class 10. A class 1 brewer license, which may only be
7issued to a licensed brewer or licensed non-resident dealer,
8shall allow the manufacture of up to 930,000 gallons of beer,
9cider, or any combination thereof per year provided that the
10class 1 brewer licensee does not manufacture more than a
11combined 930,000 gallons of beer or cider per year and is not a
12member of or affiliated with, directly or indirectly, a
13manufacturer that produces more than 930,000 gallons of beer,
14cider, or any combination thereof per year or any other
15alcoholic liquor. A class 1 brewer licensee may make sales and
16deliveries to importing distributors and distributors and to
17retail licensees in accordance with the conditions set forth in
18paragraph (18) of subsection (a) of Section 3-12 of this Act.
19    Class 11. A class 2 brewer license, which may only be
20issued to a licensed brewer or licensed non-resident dealer,
21shall allow the manufacture of up to 3,720,000 gallons of beer,
22cider, or any combination thereof per year provided that the
23class 2 brewer licensee does not manufacture more than a
24combined 3,720,000 gallons of beer or cider per year and is not
25a member of or affiliated with, directly or indirectly, a
26manufacturer that produces more than 3,720,000 gallons of beer,

 

 

09900SB0401sam001- 24 -LRB099 03239 RPS 47199 a

1cider, or any combination thereof per year or any other
2alcoholic liquor. A class 2 brewer licensee may make sales and
3deliveries to importing distributors and distributors, but
4shall not make sales or deliveries to any other licensee. If
5the State Commission provides prior approval, a class 2 brewer
6licensee may annually transfer up to 3,720,000 gallons of beer,
7cider, or any combination thereof manufactured by that class 2
8brewer licensee to the premises of a licensed class 2 brewer
9wholly owned and operated by the same licensee.
10    (a-1) A manufacturer which is licensed in this State to
11make sales or deliveries of alcoholic liquor to licensed
12distributors or importing distributors and which enlists
13agents, representatives, or individuals acting on its behalf
14who contact licensed retailers on a regular and continual basis
15in this State must register those agents, representatives, or
16persons acting on its behalf with the State Commission.
17    Registration of agents, representatives, or persons acting
18on behalf of a manufacturer is fulfilled by submitting a form
19to the Commission. The form shall be developed by the
20Commission and shall include the name and address of the
21applicant, the name and address of the manufacturer he or she
22represents, the territory or areas assigned to sell to or
23discuss pricing terms of alcoholic liquor, and any other
24questions deemed appropriate and necessary. All statements in
25the forms required to be made by law or by rule shall be deemed
26material, and any person who knowingly misstates any material

 

 

09900SB0401sam001- 25 -LRB099 03239 RPS 47199 a

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

 

 

09900SB0401sam001- 26 -LRB099 03239 RPS 47199 a

1purchase alcoholic liquor from Illinois licensed non-resident
2dealers and foreign importers only.
3    (d) A retailer's license shall allow the licensee to sell
4and offer for sale at retail, only in the premises specified in
5the license, alcoholic liquor for use or consumption, but not
6for resale in any form. Nothing in Public Act 95-634 this
7amendatory Act of the 95th General Assembly shall deny, limit,
8remove, or restrict the ability of a holder of a retailer's
9license to transfer, deliver, or ship alcoholic liquor to the
10purchaser for use or consumption subject to any applicable
11local law or ordinance. Any retail license issued to a
12manufacturer shall only permit the manufacturer to sell beer at
13retail on the premises actually occupied by the manufacturer.
14For the purpose of further describing the type of business
15conducted at a retail licensed premises, a retailer's licensee
16may be designated by the State Commission as (i) an on premise
17consumption retailer, (ii) an off premise sale retailer, or
18(iii) a combined on premise consumption and off premise sale
19retailer.
20    Notwithstanding any other provision of this subsection
21(d), a retail licensee may sell alcoholic liquors to a special
22event retailer licensee for resale to the extent permitted
23under subsection (e).
24    (e) A special event retailer's license (not-for-profit)
25shall permit the licensee to purchase alcoholic liquors from an
26Illinois licensed distributor (unless the licensee purchases

 

 

09900SB0401sam001- 27 -LRB099 03239 RPS 47199 a

1less than $500 of alcoholic liquors for the special event, in
2which case the licensee may purchase the alcoholic liquors from
3a licensed retailer) and shall allow the licensee to sell and
4offer for sale, at retail, alcoholic liquors for use or
5consumption, but not for resale in any form and only at the
6location and on the specific dates designated for the special
7event in the license. An applicant for a special event retailer
8license must (i) furnish with the application: (A) a resale
9number issued under Section 2c of the Retailers' Occupation Tax
10Act or evidence that the applicant is registered under Section
112a of the Retailers' Occupation Tax Act, (B) a current, valid
12exemption identification number issued under Section 1g of the
13Retailers' Occupation Tax Act, and a certification to the
14Commission that the purchase of alcoholic liquors will be a
15tax-exempt purchase, or (C) a statement that the applicant is
16not registered under Section 2a of the Retailers' Occupation
17Tax Act, does not hold a resale number under Section 2c of the
18Retailers' Occupation Tax Act, and does not hold an exemption
19number under Section 1g of the Retailers' Occupation Tax Act,
20in which event the Commission shall set forth on the special
21event retailer's license a statement to that effect; (ii)
22submit with the application proof satisfactory to the State
23Commission that the applicant will provide dram shop liability
24insurance in the maximum limits; and (iii) show proof
25satisfactory to the State Commission that the applicant has
26obtained local authority approval.

 

 

09900SB0401sam001- 28 -LRB099 03239 RPS 47199 a

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

 

 

09900SB0401sam001- 29 -LRB099 03239 RPS 47199 a

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

 

 

09900SB0401sam001- 30 -LRB099 03239 RPS 47199 a

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

 

 

09900SB0401sam001- 31 -LRB099 03239 RPS 47199 a

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

 

 

09900SB0401sam001- 32 -LRB099 03239 RPS 47199 a

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

 

 

09900SB0401sam001- 33 -LRB099 03239 RPS 47199 a

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

 

 

09900SB0401sam001- 34 -LRB099 03239 RPS 47199 a

1licensees during the license period, (ii) it shall comply with
2all of the provisions of Section 6-9 hereof with respect to
3registration of such Illinois licensees as may be granted the
4right to sell such brands at wholesale, and (iii) the
5non-resident dealer shall comply with the provisions of
6Sections 6-5 and 6-6 of this Act to the same extent that these
7provisions apply to manufacturers.
8    (n) A brew pub license shall allow the licensee to only (i)
9manufacture up to 155,000 gallons of beer, cider, or any
10combination thereof per year only on the premises specified in
11the license, (ii) make sales of the beer or cider manufactured
12on the premises or, with the approval of the Commission, beer
13or cider manufactured on another brew pub licensed premises
14that is wholly owned and operated by the same licensee to
15importing distributors, distributors, and to non-licensees for
16use and consumption, (iii) store the beer or cider upon the
17premises, (iv) sell and offer for sale at retail from the
18licensed premises for off-premises consumption no more than
19155,000 gallons of beer, cider, or any combination thereof per
20year so long as such sales are only made in-person, (v) sell
21and offer for sale at retail for use and consumption on the
22premises specified in the license any form of alcoholic liquor
23purchased from a licensed distributor or importing
24distributor, and (vi) with the prior approval of the
25Commission, annually transfer no more than 155,000 gallons of
26beer, cider, or any combination thereof manufactured on the

 

 

09900SB0401sam001- 35 -LRB099 03239 RPS 47199 a

1premises to a licensed brew pub wholly owned and operated by
2the same licensee.
3    A brew pub licensee shall not under any circumstance sell
4or offer for sale beer or cider manufactured by the brew pub
5licensee to retail licensees.
6    A person who holds a class 2 brewer license may
7simultaneously hold a brew pub license if the class 2 brewer
8(i) does not, under any circumstance, sell or offer for sale
9beer or cider manufactured by the class 2 brewer to retail
10licensees; (ii) does not hold more than 3 brew pub licenses in
11this State; (iii) does not manufacture more than a combined
123,720,000 gallons of beer or cider per year, including the beer
13and cider manufactured at the brew pub; and (iv) is not a
14member of or affiliated with, directly or indirectly, a
15manufacturer that produces more than 3,720,000 gallons of beer
16or cider per year or any other alcoholic liquor.
17    Notwithstanding any other provision of this Act, a licensed
18brewer or , class 2 brewer, or non-resident dealer who before
19July 1, 2015 manufactured less than than 3,720,000 gallons of
20beer per year and held a brew pub license on or before July 1,
212015 may (i) continue to qualify for and hold that brew pub
22license for the licensed premises and (ii) manufacture more
23than 3,720,000 gallons of beer or cider per year and continue
24to qualify for and hold that brew pub license if that brewer
25or , class 2 brewer, or non-resident dealer does not
26simultaneously hold a class 1 brewer license and is not a

 

 

09900SB0401sam001- 36 -LRB099 03239 RPS 47199 a

1member of or affiliated with, directly or indirectly, a
2manufacturer that produces more than 3,720,000 gallons of beer,
3cider, or any combination thereof per year or that produces any
4other alcoholic liquor.
5    Notwithstanding any other provision of this Act, a licensed
6non-resident dealer who before July 1, 2015 manufactured less
7than 3,720,000 gallons of beer per year and held a brew pub
8license on or before July 1, 2015 may (i) continue to qualify
9for and hold that brew pub license for the licensed premises
10and (ii) manufacture more than 3,720,000 gallons of beer per
11year and continue to qualify for and hold that brew pub license
12if that non-resident dealer does not simultaneously hold a
13class 1 brewer license and is not a member of or affiliated
14with, directly or indirectly, a manufacturer that produces more
15than 3,720,000 gallons of beer, cider, or any combination
16thereof per year or that produces any other alcoholic liquor.
17    (o) A caterer retailer license shall allow the holder to
18serve alcoholic liquors as an incidental part of a food service
19that serves prepared meals which excludes the serving of snacks
20as the primary meal, either on or off-site whether licensed or
21unlicensed.
22    (p) An auction liquor license shall allow the licensee to
23sell and offer for sale at auction wine and spirits for use or
24consumption, or for resale by an Illinois liquor licensee in
25accordance with provisions of this Act. An auction liquor
26license will be issued to a person and it will permit the

 

 

09900SB0401sam001- 37 -LRB099 03239 RPS 47199 a

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

 

 

09900SB0401sam001- 38 -LRB099 03239 RPS 47199 a

1true copy of its current license in any state in which it is
2licensed as a manufacturer of wine. An applicant for a winery
3shipper's license must also complete an application form that
4provides any other information the Commission deems necessary.
5The application form shall include an acknowledgement
6consenting to the jurisdiction of the Commission, the Illinois
7Department of Revenue, and the courts of this State concerning
8the enforcement of this Act and any related laws, rules, and
9regulations, including authorizing the Department of Revenue
10and the Commission to conduct audits for the purpose of
11ensuring compliance with Public Act 95-634 this amendatory Act.
12    A winery shipper licensee must pay to the Department of
13Revenue the State liquor gallonage tax under Section 8-1 for
14all wine that is sold by the licensee and shipped to a person
15in this State. For the purposes of Section 8-1, a winery
16shipper licensee shall be taxed in the same manner as a
17manufacturer of wine. A licensee who is not otherwise required
18to register under the Retailers' Occupation Tax Act must
19register under the Use Tax Act to collect and remit use tax to
20the Department of Revenue for all gallons of wine that are sold
21by the licensee and shipped to persons in this State. If a
22licensee fails to remit the tax imposed under this Act in
23accordance with the provisions of Article VIII of this Act, the
24winery shipper's license shall be revoked in accordance with
25the provisions of Article VII of this Act. If a licensee fails
26to properly register and remit tax under the Use Tax Act or the

 

 

09900SB0401sam001- 39 -LRB099 03239 RPS 47199 a

1Retailers' Occupation Tax Act for all wine that is sold by the
2winery shipper and shipped to persons in this State, the winery
3shipper's license shall be revoked in accordance with the
4provisions of Article VII of this Act.
5    A winery shipper licensee must collect, maintain, and
6submit to the Commission on a semi-annual basis the total
7number of cases per resident of wine shipped to residents of
8this State. A winery shipper licensed under this subsection (r)
9must comply with the requirements of Section 6-29 of this
10amendatory Act.
11    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
12Section 3-12, the State Commission may receive, respond to, and
13investigate any complaint and impose any of the remedies
14specified in paragraph (1) of subsection (a) of Section 3-12.
15(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
1698-756, eff. 7-16-14; 99-448, eff. 8-24-15; revised 10-27-15.)
 
17    (235 ILCS 5/6-2)  (from Ch. 43, par. 120)
18    Sec. 6-2. Issuance of licenses to certain persons
19prohibited.
20    (a) Except as otherwise provided in subsection (b) of this
21Section and in paragraph (1) of subsection (a) of Section 3-12,
22no license of any kind issued by the State Commission or any
23local commission shall be issued to:
24        (1) A person who is not a resident of any city, village
25    or county in which the premises covered by the license are

 

 

09900SB0401sam001- 40 -LRB099 03239 RPS 47199 a

1    located; except in case of railroad or boat licenses.
2        (2) A person who is not of good character and
3    reputation in the community in which he resides.
4        (3) A person who is not a citizen of the United States.
5        (4) A person who has been convicted of a felony under
6    any Federal or State law, unless the Commission determines
7    that such person has been sufficiently rehabilitated to
8    warrant the public trust after considering matters set
9    forth in such person's application and the Commission's
10    investigation. The burden of proof of sufficient
11    rehabilitation shall be on the applicant.
12        (5) A person who has been convicted of keeping a place
13    of prostitution or keeping a place of juvenile
14    prostitution, promoting prostitution that involves keeping
15    a place of prostitution, or promoting juvenile
16    prostitution that involves keeping a place of juvenile
17    prostitution.
18        (6) A person who has been convicted of pandering or
19    other crime or misdemeanor opposed to decency and morality.
20        (7) A person whose license issued under this Act has
21    been revoked for cause.
22        (8) A person who at the time of application for renewal
23    of any license issued hereunder would not be eligible for
24    such license upon a first application.
25        (9) A copartnership, if any general partnership
26    thereof, or any limited partnership thereof, owning more

 

 

09900SB0401sam001- 41 -LRB099 03239 RPS 47199 a

1    than 5% of the aggregate limited partner interest in such
2    copartnership would not be eligible to receive a license
3    hereunder for any reason other than residence within the
4    political subdivision, unless residency is required by
5    local ordinance.
6        (10) A corporation or limited liability company, if any
7    member, officer, manager or director thereof, or any
8    stockholder or stockholders owning in the aggregate more
9    than 5% of the stock of such corporation, would not be
10    eligible to receive a license hereunder for any reason
11    other than citizenship and residence within the political
12    subdivision.
13        (10a) A corporation or limited liability company
14    unless it is incorporated or organized in Illinois, or
15    unless it is a foreign corporation or foreign limited
16    liability company which is qualified under the Business
17    Corporation Act of 1983 or the Limited Liability Company
18    Act to transact business in Illinois. The Commission shall
19    permit and accept from an applicant for a license under
20    this Act proof prepared from the Secretary of State's
21    website that the corporation or limited liability company
22    is in good standing and is qualified under the Business
23    Corporation Act of 1983 or the Limited Liability Company
24    Act to transact business in Illinois.
25        (11) A person whose place of business is conducted by a
26    manager or agent unless the manager or agent possesses the

 

 

09900SB0401sam001- 42 -LRB099 03239 RPS 47199 a

1    same qualifications required by the licensee.
2        (12) A person who has been convicted of a violation of
3    any Federal or State law concerning the manufacture,
4    possession or sale of alcoholic liquor, subsequent to the
5    passage of this Act or has forfeited his bond to appear in
6    court to answer charges for any such violation.
7        (13) A person who does not beneficially own the
8    premises for which a license is sought, or does not have a
9    lease thereon for the full period for which the license is
10    to be issued.
11        (14) Any law enforcing public official, including
12    members of local liquor control commissions, any mayor,
13    alderman, or member of the city council or commission, any
14    president of the village board of trustees, any member of a
15    village board of trustees, or any president or member of a
16    county board; and no such official shall have a direct
17    interest in the manufacture, sale, or distribution of
18    alcoholic liquor, except that a license may be granted to
19    such official in relation to premises that are not located
20    within the territory subject to the jurisdiction of that
21    official if the issuance of such license is approved by the
22    State Liquor Control Commission and except that a license
23    may be granted, in a city or village with a population of
24    55,000 or less, to any alderman, member of a city council,
25    or member of a village board of trustees in relation to
26    premises that are located within the territory subject to

 

 

09900SB0401sam001- 43 -LRB099 03239 RPS 47199 a

1    the jurisdiction of that official if (i) the sale of
2    alcoholic liquor pursuant to the license is incidental to
3    the selling of food, (ii) the issuance of the license is
4    approved by the State Commission, (iii) the issuance of the
5    license is in accordance with all applicable local
6    ordinances in effect where the premises are located, and
7    (iv) the official granted a license does not vote on
8    alcoholic liquor issues pending before the board or council
9    to which the license holder is elected. Notwithstanding any
10    provision of this paragraph (14) to the contrary, an
11    alderman or member of a city council or commission, a
12    member of a village board of trustees other than the
13    president of the village board of trustees, or a member of
14    a county board other than the president of a county board
15    may have a direct interest in the manufacture, sale, or
16    distribution of alcoholic liquor as long as he or she is
17    not a law enforcing public official, a mayor, a village
18    board president, or president of a county board. To prevent
19    any conflict of interest, the elected official with the
20    direct interest in the manufacture, sale, or distribution
21    of alcoholic liquor shall not participate in any meetings,
22    hearings, or decisions on matters impacting the
23    manufacture, sale, or distribution of alcoholic liquor.
24    Furthermore, the mayor of a city with a population of
25    55,000 or less or the president of a village with a
26    population of 55,000 or less may have an interest in the

 

 

09900SB0401sam001- 44 -LRB099 03239 RPS 47199 a

1    manufacture, sale, or distribution of alcoholic liquor as
2    long as the council or board over which he or she presides
3    has made a local liquor control commissioner appointment
4    that complies with the requirements of Section 4-2 of this
5    Act.
6        (15) A person who is not a beneficial owner of the
7    business to be operated by the licensee.
8        (16) A person who has been convicted of a gambling
9    offense as proscribed by any of subsections (a) (3) through
10    (a) (11) of Section 28-1 of, or as proscribed by Section
11    28-1.1 or 28-3 of, the Criminal Code of 1961 or the
12    Criminal Code of 2012, or as proscribed by a statute
13    replaced by any of the aforesaid statutory provisions.
14        (17) A person or entity to whom a federal wagering
15    stamp has been issued by the federal government, unless the
16    person or entity is eligible to be issued a license under
17    the Raffles and Poker Runs Act or the Illinois Pull Tabs
18    and Jar Games Act.
19        (18) A person who intends to sell alcoholic liquors for
20    use or consumption on his or her licensed retail premises
21    who does not have liquor liability insurance coverage for
22    that premises in an amount that is at least equal to the
23    maximum liability amounts set out in subsection (a) of
24    Section 6-21.
25        (19) A person who is licensed by any licensing
26    authority as a manufacturer of beer, or any partnership,

 

 

09900SB0401sam001- 45 -LRB099 03239 RPS 47199 a

1    corporation, limited liability company, or trust or any
2    subsidiary, affiliate, or agent thereof, or any other form
3    of business enterprise licensed as a manufacturer of beer,
4    having any legal, equitable, or beneficial interest,
5    directly or indirectly, in a person licensed in this State
6    as a distributor or importing distributor. For purposes of
7    this paragraph (19), a person who is licensed by any
8    licensing authority as a "manufacturer of beer" shall also
9    mean a brewer who is also a manufacturer of beer or cider
10    and a non-resident dealer who is also a manufacturer of
11    beer, including a partnership, corporation, limited
12    liability company, or trust or any subsidiary, affiliate,
13    or agent thereof, or any other form of business enterprise
14    licensed as a manufacturer of beer.
15        (20) A person who is licensed in this State as a
16    distributor or importing distributor, or any partnership,
17    corporation, limited liability company, or trust or any
18    subsidiary, affiliate, or agent thereof, or any other form
19    of business enterprise licensed in this State as a
20    distributor or importing distributor having any legal,
21    equitable, or beneficial interest, directly or indirectly,
22    in a person licensed as a manufacturer of beer by any
23    licensing authority, or any partnership, corporation,
24    limited liability company, or trust or any subsidiary,
25    affiliate, or agent thereof, or any other form of business
26    enterprise, except for a person who owns, on or after the

 

 

09900SB0401sam001- 46 -LRB099 03239 RPS 47199 a

1    effective date of this amendatory Act of the 98th General
2    Assembly, no more than 5% of the outstanding shares of a
3    manufacturer of beer whose shares are publicly traded on an
4    exchange within the meaning of the Securities Exchange Act
5    of 1934. For the purposes of this paragraph (20), a person
6    who is licensed by any licensing authority as a
7    "manufacturer of beer" shall also mean a brewer who is also
8    a manufacturer of beer or cider and a non-resident dealer
9    who is also a manufacturer of beer, including a
10    partnership, corporation, limited liability company, or
11    trust or any subsidiary, affiliate, or agent thereof, or
12    any other form of business enterprise licensed as a
13    manufacturer of beer.
14    (b) A criminal conviction of a corporation is not grounds
15for the denial, suspension, or revocation of a license applied
16for or held by the corporation if the criminal conviction was
17not the result of a violation of any federal or State law
18concerning the manufacture, possession or sale of alcoholic
19liquor, the offense that led to the conviction did not result
20in any financial gain to the corporation and the corporation
21has terminated its relationship with each director, officer,
22employee, or controlling shareholder whose actions directly
23contributed to the conviction of the corporation. The
24Commission shall determine if all provisions of this subsection
25(b) have been met before any action on the corporation's
26license is initiated.

 

 

09900SB0401sam001- 47 -LRB099 03239 RPS 47199 a

1(Source: P.A. 97-1059, eff. 8-24-12; 97-1150, eff. 1-25-13;
298-10, eff. 5-6-13; 98-21, eff. 6-13-13; 98-644, eff. 6-10-14;
398-756, eff. 7-16-14.)
 
4    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
5    Sec. 6-4. (a) No person licensed by any licensing authority
6as a distiller, or a wine manufacturer, or any subsidiary or
7affiliate thereof, or any officer, associate, member, partner,
8representative, employee, agent or shareholder owning more
9than 5% of the outstanding shares of such person shall be
10issued an importing distributor's or distributor's license,
11nor shall any person licensed by any licensing authority as an
12importing distributor, distributor or retailer, or any
13subsidiary or affiliate thereof, or any officer or associate,
14member, partner, representative, employee, agent or
15shareholder owning more than 5% of the outstanding shares of
16such person be issued a distiller's license or a wine
17manufacturer's license; and no person or persons licensed as a
18distiller by any licensing authority shall have any interest,
19directly or indirectly, with such distributor or importing
20distributor.
21    However, an importing distributor or distributor, which on
22January 1, 1985 is owned by a brewer, or any subsidiary or
23affiliate thereof or any officer, associate, member, partner,
24representative, employee, agent or shareholder owning more
25than 5% of the outstanding shares of the importing distributor

 

 

09900SB0401sam001- 48 -LRB099 03239 RPS 47199 a

1or distributor referred to in this paragraph, may own or
2acquire an ownership interest of more than 5% of the
3outstanding shares of a wine manufacturer and be issued a wine
4manufacturer's license by any licensing authority.
5    (b) The foregoing provisions shall not apply to any person
6licensed by any licensing authority as a distiller or wine
7manufacturer, or to any subsidiary or affiliate of any
8distiller or wine manufacturer who shall have been heretofore
9licensed by the State Commission as either an importing
10distributor or distributor during the annual licensing period
11expiring June 30, 1947, and shall actually have made sales
12regularly to retailers.
13    (c) Provided, however, that in such instances where a
14distributor's or importing distributor's license has been
15issued to any distiller or wine manufacturer or to any
16subsidiary or affiliate of any distiller or wine manufacturer
17who has, during the licensing period ending June 30, 1947, sold
18or distributed as such licensed distributor or importing
19distributor alcoholic liquors and wines to retailers, such
20distiller or wine manufacturer or any subsidiary or affiliate
21of any distiller or wine manufacturer holding such
22distributor's or importing distributor's license may continue
23to sell or distribute to retailers such alcoholic liquors and
24wines which are manufactured, distilled, processed or marketed
25by distillers and wine manufacturers whose products it sold or
26distributed to retailers during the whole or any part of its

 

 

09900SB0401sam001- 49 -LRB099 03239 RPS 47199 a

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

 

 

09900SB0401sam001- 50 -LRB099 03239 RPS 47199 a

1manufacturer of beer or cider as stated above, no manufacturer
2or distributor or importing distributor, excluding airplane
3licensees exercising powers provided in paragraph (i) of
4Section 5-1 of this Act, or any subsidiary or affiliate
5thereof, or any officer, associate, member, partner,
6representative, employee or agent, or shareholder shall be
7issued a retailer's license, nor shall any person having a
8retailer's license, excluding airplane licensees exercising
9powers provided in paragraph (i) of Section 5-1 of this Act, or
10any subsidiary or affiliate thereof, or any officer, associate,
11member, partner, representative or agent, or shareholder be
12issued a manufacturer's license or importing distributor's
13license.
14    A person who holds a class 1 or class 2 brewer license and
15is authorized by this Section to sell beer or cider to
16non-licensees shall not sell beer or cider to non-licensees
17from more than 3 total brewer or commonly owned brew pub
18licensed locations in this State. The class 1 or class 2 brewer
19shall designate to the State Commission the brewer or brew pub
20locations from which it will sell beer or cider to
21non-licensees.
22    A person licensed as a craft distiller not affiliated with
23any other person manufacturing spirits may be authorized by the
24Commission to sell up to 2,500 gallons of spirits produced by
25the person to non-licensees for on or off-premises consumption
26for the premises in which he or she actually conducts business

 

 

09900SB0401sam001- 51 -LRB099 03239 RPS 47199 a

1permitting only the retail sale of spirits manufactured at such
2premises. Such sales shall be limited to on-premises, in-person
3sales only, for lawful consumption on or off premises, and such
4authorization shall be considered a privilege granted by the
5craft distiller license. A craft distiller licensed for retail
6sale shall secure liquor liability insurance coverage in an
7amount at least equal to the maximum liability amounts set
8forth in subsection (a) of Section 6-21 of this Act.
9    (f) (Blank).
10    (g) Notwithstanding any of the foregoing prohibitions, a
11limited wine manufacturer may sell at retail at its
12manufacturing site for on or off premises consumption and may
13sell to distributors. A limited wine manufacturer licensee
14shall secure liquor liability insurance coverage in an amount
15at least equal to the maximum liability amounts set forth in
16subsection (a) of Section 6-21 of this Act.
17    (h) The changes made to this Section by Public Act 99-47
18this amendatory Act of the 99th General Assembly shall not
19diminish or impair the rights of any person, whether a
20distiller, wine manufacturer, agent, or affiliate thereof, who
21requested in writing and submitted documentation to the State
22Commission on or before February 18, 2015 to be approved for a
23retail license pursuant to what has heretofore been subsection
24(f); provided that, on or before that date, the State
25Commission considered the intent of that person to apply for
26the retail license under that subsection and, by recorded vote,

 

 

09900SB0401sam001- 52 -LRB099 03239 RPS 47199 a

1the State Commission approved a resolution indicating that such
2a license application could be lawfully approved upon that
3person duly filing a formal application for a retail license
4and if that person, within 90 days of the State Commission
5appearance and recorded vote, first filed an application with
6the appropriate local commission, which application was
7subsequently approved by the appropriate local commission
8prior to consideration by the State Commission of that person's
9application for a retail license. It is further provided that
10the State Commission may approve the person's application for a
11retail license or renewals of such license if such person
12continues to diligently adhere to all representations made in
13writing to the State Commission on or before February 18, 2015,
14or thereafter, or in the affidavit filed by that person with
15the State Commission to support the issuance of a retail
16license and to abide by all applicable laws and duly adopted
17rules.
18(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
19revised 10-30-15.)
 
20    (235 ILCS 5/6-5)  (from Ch. 43, par. 122)
21    Sec. 6-5. Except as otherwise provided in this Section, it
22is unlawful for any person having a retailer's license or any
23officer, associate, member, representative or agent of such
24licensee to accept, receive or borrow money, or anything else
25of value, or accept or receive credit (other than merchandising

 

 

09900SB0401sam001- 53 -LRB099 03239 RPS 47199 a

1credit in the ordinary course of business for a period not to
2exceed 30 days) directly or indirectly from any manufacturer,
3importing distributor or distributor of alcoholic liquor, or
4from any person connected with or in any way representing, or
5from any member of the family of, such manufacturer, importing
6distributor, distributor or wholesaler, or from any
7stockholders in any corporation engaged in manufacturing,
8distributing or wholesaling of such liquor, or from any
9officer, manager, agent or representative of said
10manufacturer. Except as provided below, it is unlawful for any
11manufacturer or distributor or importing distributor to give or
12lend money or anything of value, or otherwise loan or extend
13credit (except such merchandising credit) directly or
14indirectly to any retail licensee or to the manager,
15representative, agent, officer or director of such licensee. A
16manufacturer, distributor or importing distributor may furnish
17free advertising, posters, signs, brochures, hand-outs, or
18other promotional devices or materials to any unit of
19government owning or operating any auditorium, exhibition
20hall, recreation facility or other similar facility holding a
21retailer's license, provided that the primary purpose of such
22promotional devices or materials is to promote public events
23being held at such facility. A unit of government owning or
24operating such a facility holding a retailer's license may
25accept such promotional devices or materials designed
26primarily to promote public events held at the facility. No

 

 

09900SB0401sam001- 54 -LRB099 03239 RPS 47199 a

1retail licensee delinquent beyond the 30 day period specified
2in this Section shall solicit, accept or receive credit,
3purchase or acquire alcoholic liquors, directly or indirectly
4from any other licensee, and no manufacturer, distributor or
5importing distributor shall knowingly grant or extend credit,
6sell, furnish or supply alcoholic liquors to any such
7delinquent retail licensee; provided that the purchase price of
8all beer sold to a retail licensee shall be paid by the retail
9licensee in cash on or before delivery of the beer, and unless
10the purchase price payable by a retail licensee for beer sold
11to him in returnable bottles shall expressly include a charge
12for the bottles and cases, the retail licensee shall, on or
13before delivery of such beer, pay the seller in cash a deposit
14in an amount not less than the deposit required to be paid by
15the distributor to the brewer; but where the brewer sells
16direct to the retailer, the deposit shall be an amount no less
17than that required by the brewer from his own distributors; and
18provided further, that in no instance shall this deposit be
19less than 50 cents for each case of beer or cider in pint or
20smaller bottles and 60 cents for each case of beer or cider in
21quart or half-gallon bottles; and provided further, that the
22purchase price of all beer or cider sold to an importing
23distributor or distributor shall be paid by such importing
24distributor or distributor in cash on or before the 15th day
25(Sundays and holidays excepted) after delivery of such beer or
26cider to such purchaser; and unless the purchase price payable

 

 

09900SB0401sam001- 55 -LRB099 03239 RPS 47199 a

1by such importing distributor or distributor for beer or cider
2sold in returnable bottles and cases shall expressly include a
3charge for the bottles and cases, such importing distributor or
4distributor shall, on or before the 15th day (Sundays and
5holidays excepted) after delivery of such beer or cider to such
6purchaser, pay the seller in cash a required amount as a
7deposit to assure the return of such bottles and cases. Nothing
8herein contained shall prohibit any licensee from crediting or
9refunding to a purchaser the actual amount of money paid for
10bottles, cases, kegs or barrels returned by the purchaser to
11the seller or paid by the purchaser as a deposit on bottles,
12cases, kegs or barrels, when such containers or packages are
13returned to the seller. Nothing herein contained shall prohibit
14any manufacturer, importing distributor or distributor from
15extending usual and customary credit for alcoholic liquor sold
16to customers or purchasers who live in or maintain places of
17business outside of this State when such alcoholic liquor is
18actually transported and delivered to such points outside of
19this State.
20    A manufacturer, distributor, or importing distributor may
21furnish free social media advertising to a retail licensee if
22the social media advertisement does not contain the retail
23price of any alcoholic liquor and the social media
24advertisement complies with any applicable rules or
25regulations issued by the Alcohol and Tobacco Tax and Trade
26Bureau of the United States Department of the Treasury. A

 

 

09900SB0401sam001- 56 -LRB099 03239 RPS 47199 a

1manufacturer, distributor, or importing distributor may list
2the names of one or more unaffiliated retailers in the
3advertisement of alcoholic liquor through social media.
4Nothing in this Section shall prohibit a retailer from
5communicating with a manufacturer, distributor, or importing
6distributor on social media or sharing media on the social
7media of a manufacturer, distributor, or importing
8distributor. A retailer may request free social media
9advertising from a manufacturer, distributor, or importing
10distributor. Nothing in this Section shall prohibit a
11manufacturer, distributor, or importing distributor from
12sharing, reposting, or otherwise forwarding a social media post
13by a retail licensee, so long as the sharing, reposting, or
14forwarding of the social media post does not contain the retail
15price of any alcoholic liquor. No manufacturer, distributor, or
16importing distributor shall pay or reimburse a retailer,
17directly or indirectly, for any social media advertising
18services, except as specifically permitted in this Act. No
19retailer shall accept any payment or reimbursement, directly or
20indirectly, for any social media advertising services offered
21by a manufacturer, distributor, or importing distributor,
22except as specifically permitted in this Act. For the purposes
23of this Section, "social media" means a service, platform, or
24site where users communicate with one another and share media,
25such as pictures, videos, music, and blogs, with other users
26free of charge.

 

 

09900SB0401sam001- 57 -LRB099 03239 RPS 47199 a

1    No right of action shall exist for the collection of any
2claim based upon credit extended to a distributor, importing
3distributor or retail licensee contrary to the provisions of
4this Section.
5    Every manufacturer, importing distributor and distributor
6shall submit or cause to be submitted, to the State Commission,
7in triplicate, not later than Thursday of each calendar week, a
8verified written list of the names and respective addresses of
9each retail licensee purchasing spirits or wine from such
10manufacturer, importing distributor or distributor who, on the
11first business day of that calendar week, was delinquent beyond
12the above mentioned permissible merchandising credit period of
1330 days; or, if such is the fact, a verified written statement
14that no retail licensee purchasing spirits or wine was then
15delinquent beyond such permissible merchandising credit period
16of 30 days.
17    Every manufacturer, importing distributor and distributor
18shall submit or cause to be submitted, to the State Commission,
19in triplicate, a verified written list of the names and
20respective addresses of each previously reported delinquent
21retail licensee who has cured such delinquency by payment,
22which list shall be submitted not later than the close of the
23second full business day following the day such delinquency was
24so cured.
25    Such written verified reports required to be submitted by
26this Section shall be posted by the State Commission in each of

 

 

09900SB0401sam001- 58 -LRB099 03239 RPS 47199 a

1its offices in places available for public inspection not later
2than the day following receipt thereof by the Commission. The
3reports so posted shall constitute notice to every
4manufacturer, importing distributor and distributor of the
5information contained therein. Actual notice to manufacturers,
6importing distributors and distributors of the information
7contained in any such posted reports, however received, shall
8also constitute notice of such information.
9    The 30 day merchandising credit period allowed by this
10Section shall commence with the day immediately following the
11date of invoice and shall include all successive days including
12Sundays and holidays to and including the 30th successive day.
13    In addition to other methods allowed by law, payment by
14check during the period for which merchandising credit may be
15extended under the provisions of this Section shall be
16considered payment. All checks received in payment for
17alcoholic liquor shall be promptly deposited for collection. A
18post dated check or a check dishonored on presentation for
19payment shall not be deemed payment.
20    A retail licensee shall not be deemed to be delinquent in
21payment for any alleged sale to him of alcoholic liquor when
22there exists a bona fide dispute between such retailer and a
23manufacturer, importing distributor or distributor with
24respect to the amount of indebtedness existing because of such
25alleged sale.
26    A delinquent retail licensee who engages in the retail

 

 

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1liquor business at 2 or more locations shall be deemed to be
2delinquent with respect to each such location.
3    The license of any person who violates any provision of
4this Section shall be subject to suspension or revocation in
5the manner provided by this Act.
6    If any part or provision of this Article or the application
7thereof to any person or circumstances shall be adjudged
8invalid by a court of competent jurisdiction, such judgment
9shall be confined by its operation to the controversy in which
10it was mentioned and shall not affect or invalidate the
11remainder of this Article or the application thereof to any
12other person or circumstance and to this and the provisions of
13this Article are declared severable.
14(Source: P.A. 99-448, eff. 8-24-15.)
 
15    (235 ILCS 5/6-21)  (from Ch. 43, par. 135)
16    Sec. 6-21. (a) Every person who is injured within this
17State, in person or property, by any intoxicated person has a
18right of action in his or her own name, severally or jointly,
19against any person, licensed under the laws of this State or of
20any other state to sell alcoholic liquor, who, by selling or
21giving alcoholic liquor, within or without the territorial
22limits of this State, causes the intoxication of such person.
23Any person at least 21 years of age who pays for a hotel or
24motel room or facility knowing that the room or facility is to
25be used by any person under 21 years of age for the unlawful

 

 

09900SB0401sam001- 60 -LRB099 03239 RPS 47199 a

1consumption of alcoholic liquors and such consumption causes
2the intoxication of the person under 21 years of age, shall be
3liable to any person who is injured in person or property by
4the intoxicated person under 21 years of age. Any person
5owning, renting, leasing or permitting the occupation of any
6building or premises with knowledge that alcoholic liquors are
7to be sold therein, or who having leased the same for other
8purposes, shall knowingly permit therein the sale of any
9alcoholic liquors that have caused the intoxication of any
10person, shall be liable, severally or jointly, with the person
11selling or giving the liquors. However, if such building or
12premises belong to a minor or other person under guardianship
13the guardian of such person shall be held liable instead of the
14ward. A married woman has the same right to bring the action
15and to control it and the amount recovered as an unmarried
16woman. All damages recovered by a minor under this Act shall be
17paid either to the minor, or to his or her parent, guardian or
18next friend as the court shall direct. The unlawful sale or
19gift of alcoholic liquor works a forfeiture of all rights of
20the lessee or tenant under any lease or contract of rent upon
21the premises where the unlawful sale or gift takes place. All
22actions for damages under this Act may be by any appropriate
23action in the circuit court. An action shall lie for injuries
24to either means of support or loss of society, but not both,
25caused by an intoxicated person or in consequence of the
26intoxication of any person resulting as hereinabove set out.

 

 

09900SB0401sam001- 61 -LRB099 03239 RPS 47199 a

1"Loss of society" means the mutual benefits that each family
2member receives from the other's continued existence,
3including love, affection, care, attention, companionship,
4comfort, guidance, and protection. "Family" includes spouse,
5children, parents, brothers, and sisters. The action, if the
6person from whom support or society was furnished is living,
7shall be brought by any person injured in means of support or
8society in his or her name for his or her benefit and the
9benefit of all other persons injured in means of support or
10society. However, any person claiming to be injured in means of
11support or society and not included in any action brought
12hereunder may join by motion made within the times herein
13provided for bringing such action or the personal
14representative of the deceased person from whom such support or
15society was furnished may so join. In every such action the
16jury shall determine the amount of damages to be recovered
17without regard to and with no special instructions as to the
18dollar limits on recovery imposed by this Section. The amount
19recovered in every such action is for the exclusive benefit of
20the person injured in loss of support or society and shall be
21distributed to such persons in the proportions determined by
22the verdict rendered or judgment entered in the action. If the
23right of action is settled by agreement with the personal
24representative of a deceased person from whom support or
25society was furnished, the court having jurisdiction of the
26estate of the deceased person shall distribute the amount of

 

 

09900SB0401sam001- 62 -LRB099 03239 RPS 47199 a

1the settlement to the person injured in loss of support or
2society in the proportion, as determined by the court, that the
3percentage of dependency of each such person upon the deceased
4person bears to the sum of the percentages of dependency of all
5such persons upon the deceased person. For all causes of action
6involving persons injured, killed, or incurring property
7damage before September 12, 1985, in no event shall the
8judgment or recovery under this Act for injury to the person or
9to the property of any person as hereinabove set out exceed
10$15,000, and recovery under this Act for loss of means of
11support resulting from the death or injury of any person, as
12hereinabove set out, shall not exceed $20,000. For all causes
13of action involving persons injured, killed, or incurring
14property damage after September 12, 1985 but before July 1,
151998, in no event shall the judgment or recovery for injury to
16the person or property of any person exceed $30,000 for each
17person incurring damages, and recovery under this Act for loss
18of means of support resulting from the death or injury of any
19person shall not exceed $40,000. For all causes of action
20involving persons injured, killed, or incurring property
21damage on or after July 1, 1998, in no event shall the judgment
22or recovery for injury to the person or property of any person
23exceed $45,000 for each person incurring damages, and recovery
24under this Act for either loss of means of support or loss of
25society resulting from the death or injury of any person shall
26not exceed $55,000. Beginning in 1999, every January 20, these

 

 

09900SB0401sam001- 63 -LRB099 03239 RPS 47199 a

1liability limits shall automatically be increased or
2decreased, as applicable, by a percentage equal to the
3percentage change in the consumer price index-u during the
4preceding 12-month calendar year. "Consumer price index-u"
5means the index published by the Bureau of Labor Statistics of
6the United States Department of Labor that measures the average
7change in prices of goods and services purchased by all urban
8consumers, United States city average, all items, 1982-84 =
9100. The new amount resulting from each annual adjustment shall
10be determined by the Comptroller and made available via the
11Comptroller's official website by January 31 of every year and
12to the chief judge of each judicial circuit. The liability
13limits at the time at which damages subject to such limits are
14awarded by final judgment or settlement shall be utilized by
15the courts. Nothing in this Section bars any person from making
16separate claims which, in the aggregate, exceed any one limit
17where such person incurs more than one type of compensable
18damage, including personal injury, property damage, and loss to
19means of support or society. However, all persons claiming loss
20to means of support or society shall be limited to an aggregate
21recovery not to exceed the single limitation set forth herein
22for the death or injury of each person from whom support or
23society is claimed.
24    Nothing in this Act shall be construed to confer a cause of
25action for injuries to the person or property of the
26intoxicated person himself, nor shall anything in this Act be

 

 

09900SB0401sam001- 64 -LRB099 03239 RPS 47199 a

1construed to confer a cause of action for loss of means of
2support or society on the intoxicated person himself or on any
3person claiming to be supported by such intoxicated person or
4claiming the society of such person. In conformance with the
5rule of statutory construction enunciated in the general
6Illinois saving provision in Section 4 of "An Act to revise the
7law in relation to the construction of the statutes", approved
8March 5, 1874, as amended, no amendment of this Section
9purporting to abolish or having the effect of abolishing a
10cause of action shall be applied to invalidate a cause of
11action accruing before its effective date, irrespective of
12whether the amendment was passed before or after the effective
13date of this amendatory Act of 1986.
14    Each action hereunder shall be barred unless commenced
15within one year next after the cause of action accrued.
16    However, a licensed distributor or brewer whose only
17connection with the furnishing of alcoholic liquor which is
18alleged to have caused intoxication was the furnishing or
19maintaining of any apparatus for the dispensing or cooling of
20beer or cider is not liable under this Section, and if such
21licensee is named as a defendant, a proper motion to dismiss
22shall be granted.
23    (b) Any person licensed under any state or local law to
24sell alcoholic liquor, whether or not a citizen or resident of
25this State, who in person or through an agent causes the
26intoxication, by the sale or gift of alcoholic liquor, of any

 

 

09900SB0401sam001- 65 -LRB099 03239 RPS 47199 a

1person who, while intoxicated, causes injury to any person or
2property in the State of Illinois thereby submits such licensed
3person, and, if an individual, his or her personal
4representative, to the jurisdiction of the courts of this State
5for a cause of action arising under subsection (a) above.
6    Service of process upon any person who is subject to the
7jurisdiction of the courts of this State, as provided in this
8subsection, may be made by personally serving the summons upon
9the defendant outside this State, as provided in the Code of
10Civil Procedure, as now or hereafter amended, with the same
11force and effect as though summons had been personally served
12within this State.
13    Only causes of action arising under subsection (a) above
14may be asserted against a defendant in an action in which
15jurisdiction over him or her is based upon this subsection.
16    Nothing herein contained limits or affects the right to
17serve any process in any other manner now or hereafter provided
18by law.
19(Source: P.A. 94-982, eff. 6-30-06.)
 
20    (235 ILCS 5/8-1)
21    Sec. 8-1. A tax is imposed upon the privilege of engaging
22in business as a manufacturer or as an importing distributor of
23alcoholic liquor other than beer at the rate of $0.185 per
24gallon until September 1, 2009 and $0.231 per gallon beginning
25September 1, 2009 for cider containing not less than 0.5%

 

 

09900SB0401sam001- 66 -LRB099 03239 RPS 47199 a

1alcohol by volume nor more than 7% alcohol by volume, $0.73 per
2gallon until September 1, 2009 and $1.39 per gallon beginning
3September 1, 2009 for wine other than cider containing less
4than 7% alcohol by volume, and $4.50 per gallon until September
51, 2009 and $8.55 per gallon beginning September 1, 2009 on
6alcohol and spirits manufactured and sold or used by such
7manufacturer, or as agent for any other person, or sold or used
8by such importing distributor, or as agent for any other
9person. A tax is imposed upon the privilege of engaging in
10business as a manufacturer of beer or as an importing
11distributor of beer at the rate of $0.185 per gallon until
12September 1, 2009 and $0.231 per gallon beginning September 1,
132009 on all beer manufactured and sold or used by such
14manufacturer, or as agent for any other person, or sold or used
15by such importing distributor, or as agent for any other
16person. Any brewer manufacturing beer in this State shall be
17entitled to and given a credit or refund of 75% of the tax
18imposed on each gallon of beer up to 4.9 million gallons per
19year in any given calendar year for tax paid or payable on beer
20produced and sold in the State of Illinois.
21    For the purpose of this Section, "cider" means any
22alcoholic beverage obtained by the alcohol fermentation of the
23juice of apples or pears including, but not limited to,
24flavored, sparkling, or carbonated cider.
25    The credit or refund created by this Act shall apply to all
26beer taxes in the calendar years 1982 through 1986.

 

 

09900SB0401sam001- 67 -LRB099 03239 RPS 47199 a

1    The increases made by this amendatory Act of the 91st
2General Assembly in the rates of taxes imposed under this
3Section shall apply beginning on July 1, 1999.
4    A tax at the rate of 1˘ per gallon on beer and 48˘ per
5gallon on alcohol and spirits is also imposed upon the
6privilege of engaging in business as a retailer or as a
7distributor who is not also an importing distributor with
8respect to all beer and all alcohol and spirits owned or
9possessed by such retailer or distributor when this amendatory
10Act of 1969 becomes effective, and with respect to which the
11additional tax imposed by this amendatory Act upon
12manufacturers and importing distributors does not apply.
13Retailers and distributors who are subject to the additional
14tax imposed by this paragraph of this Section shall be required
15to inventory such alcoholic liquor and to pay this additional
16tax in a manner prescribed by the Department.
17    The provisions of this Section shall be construed to apply
18to any importing distributor engaging in business in this
19State, whether licensed or not.
20    However, such tax is not imposed upon any such business as
21to any alcoholic liquor shipped outside Illinois by an Illinois
22licensed manufacturer or importing distributor, nor as to any
23alcoholic liquor delivered in Illinois by an Illinois licensed
24manufacturer or importing distributor to a purchaser for
25immediate transportation by the purchaser to another state into
26which the purchaser has a legal right, under the laws of such

 

 

09900SB0401sam001- 68 -LRB099 03239 RPS 47199 a

1state, to import such alcoholic liquor, nor as to any alcoholic
2liquor other than beer sold by one Illinois licensed
3manufacturer or importing distributor to another Illinois
4licensed manufacturer or importing distributor to the extent to
5which the sale of alcoholic liquor other than beer by one
6Illinois licensed manufacturer or importing distributor to
7another Illinois licensed manufacturer or importing
8distributor is authorized by the licensing provisions of this
9Act, nor to alcoholic liquor whether manufactured in or
10imported into this State when sold to a "non-beverage user"
11licensed by the State for use in the manufacture of any of the
12following when they are unfit for beverage purposes:
13    Patent and proprietary medicines and medicinal,
14antiseptic, culinary and toilet preparations;
15    Flavoring extracts and syrups and food products;
16    Scientific, industrial and chemical products, excepting
17denatured alcohol;
18    Or for scientific, chemical, experimental or mechanical
19purposes;
20    Nor is the tax imposed upon the privilege of engaging in
21any business in interstate commerce or otherwise, which
22business may not, under the Constitution and Statutes of the
23United States, be made the subject of taxation by this State.
24    The tax herein imposed shall be in addition to all other
25occupation or privilege taxes imposed by the State of Illinois
26or political subdivision thereof.

 

 

09900SB0401sam001- 69 -LRB099 03239 RPS 47199 a

1    If any alcoholic liquor manufactured in or imported into
2this State is sold to a licensed manufacturer or importing
3distributor by a licensed manufacturer or importing
4distributor to be used solely as an ingredient in the
5manufacture of any beverage for human consumption, the tax
6imposed upon such purchasing manufacturer or importing
7distributor shall be reduced by the amount of the taxes which
8have been paid by the selling manufacturer or importing
9distributor under this Act as to such alcoholic liquor so used
10to the Department of Revenue.
11    If any person received any alcoholic liquors from a
12manufacturer or importing distributor, with respect to which
13alcoholic liquors no tax is imposed under this Article, and
14such alcoholic liquor shall thereafter be disposed of in such
15manner or under such circumstances as may cause the same to
16become the base for the tax imposed by this Article, such
17person shall make the same reports and returns, pay the same
18taxes and be subject to all other provisions of this Article
19relating to manufacturers and importing distributors.
20    Nothing in this Article shall be construed to require the
21payment to the Department of the taxes imposed by this Article
22more than once with respect to any quantity of alcoholic liquor
23sold or used within this State.
24    No tax is imposed by this Act on sales of alcoholic liquor
25by Illinois licensed foreign importers to Illinois licensed
26importing distributors.

 

 

09900SB0401sam001- 70 -LRB099 03239 RPS 47199 a

1    All of the proceeds of the additional tax imposed by Public
2Act 96-34 shall be deposited by the Department into the Capital
3Projects Fund. The remainder of the tax imposed by this Act
4shall be deposited by the Department into the General Revenue
5Fund.
6    The provisions of this Section 8-1 are severable under
7Section 1.31 of the Statute on Statutes.
8(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
9eff. 7-13-09; 96-1000, eff. 7-2-10.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".