SB2797ham001 99TH GENERAL ASSEMBLY

Rep. Michael J. Zalewski

Filed: 5/24/2016

 

 


 

 


 
09900SB2797ham001LRB099 19929 RPS 49082 a

1
AMENDMENT TO SENATE BILL 2797

2    AMENDMENT NO. ______. Amend Senate Bill 2797 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 5-1, 5-3, 6-4, and 6-31 as follows:
 
6    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
7    Sec. 5-1. Licenses issued by the Illinois Liquor Control
8Commission shall be of the following classes:
9    (a) Manufacturer's license - Class 1. Distiller, Class 2.
10Rectifier, Class 3. Brewer, Class 4. First Class Wine
11Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
12First Class Winemaker, Class 7. Second Class Winemaker, Class
138. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1410. Class 1 Brewer, Class 11. Class 2 Brewer,
15    (b) Distributor's license,
16    (c) Importing Distributor's license,

 

 

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

 

 

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

 

 

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1practice on or before July 1, 2008 in compliance with Public
2Act 95-634 this amendatory Act of the 95th General Assembly.
3    Class 7. A second-class wine-maker's license shall allow
4the manufacture of between 50,000 and 150,000 gallons of wine
5per year, and the storage and sale of such wine to distributors
6in this State and to persons without the State, as may be
7permitted by law. A person who, prior to June 1, 2008 (the
8effective date of Public Act 95-634) this amendatory Act of the
995th General Assembly, is a holder of a second-class
10wine-maker's license and annually produces more than 25,000
11gallons of its own wine and who distributes its wine to
12licensed retailers shall cease this practice on or before July
131, 2008 in compliance with Public Act 95-634 this amendatory
14Act of the 95th General Assembly.
15    Class 8. A limited wine-manufacturer may make sales and
16deliveries not to exceed 40,000 gallons of wine per year to
17distributors, and to non-licensees in accordance with the
18provisions of this Act.
19    Class 9. A craft distiller license shall allow the
20manufacture of up to 100,000 30,000 gallons of spirits by
21distillation for one year after the effective date of this
22amendatory Act of the 97th General Assembly and up to 35,000
23gallons of spirits by distillation per year thereafter and the
24storage of such spirits. If a craft distiller licensee,
25including a craft distiller licensee who holds more than one
26craft distiller license, is not affiliated with any other

 

 

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1manufacturer of spirits, then the craft distiller licensee may
2sell such spirits to distributors in this State and up to 2,500
3gallons of such spirits to non-licensees to the extent
4permitted by any exemption approved by the Commission pursuant
5to Section 6-4 of this Act. A craft distiller license holder
6may store such spirits at a non-contiguous licensed location,
7but at no time shall a craft distiller license holder directly
8or indirectly produce in the aggregate more than 100,000
9gallons of spirits per year.
10    A craft distiller licensee may hold more than one craft
11distiller's license. However, a craft distiller that holds more
12than one craft distiller license shall not manufacture, in the
13aggregate, more than 100,000 gallons of spirits by distillation
14per year and shall not sell, in the aggregate, more than 2,500
15gallons of such spirits to non-licensees in accordance with an
16exemption approved by the State Commission pursuant to Section
176-4 of this Act.
18    Any craft distiller licensed under this Act who on July 28,
192010 (the effective date of Public Act 96-1367) this amendatory
20Act of the 96th General Assembly was licensed as a distiller
21and manufactured no more spirits than permitted by this Section
22shall not be required to pay the initial licensing fee.
23    Class 10. A class 1 brewer license, which may only be
24issued to a licensed brewer or licensed non-resident dealer,
25shall allow the manufacture of up to 930,000 gallons of beer
26per year provided that the class 1 brewer licensee does not

 

 

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1manufacture more than a combined 930,000 gallons of beer per
2year and is not a member of or affiliated with, directly or
3indirectly, a manufacturer that produces more than 930,000
4gallons of beer per year or any other alcoholic liquor. A class
51 brewer licensee may make sales and deliveries to importing
6distributors and distributors and to retail licensees in
7accordance with the conditions set forth in paragraph (18) of
8subsection (a) of Section 3-12 of this Act.
9    Class 11. A class 2 brewer license, which may only be
10issued to a licensed brewer or licensed non-resident dealer,
11shall allow the manufacture of up to 3,720,000 gallons of beer
12per year provided that the class 2 brewer licensee does not
13manufacture more than a combined 3,720,000 gallons of beer per
14year and is not a member of or affiliated with, directly or
15indirectly, a manufacturer that produces more than 3,720,000
16gallons of beer per year or any other alcoholic liquor. A class
172 brewer licensee may make sales and deliveries to importing
18distributors and distributors, but shall not make sales or
19deliveries to any other licensee. If the State Commission
20provides prior approval, a class 2 brewer licensee may annually
21transfer up to 3,720,000 gallons of beer manufactured by that
22class 2 brewer licensee to the premises of a licensed class 2
23brewer wholly owned and operated by the same licensee.
24    (a-1) A manufacturer which is licensed in this State to
25make sales or deliveries of alcoholic liquor to licensed
26distributors or importing distributors and which enlists

 

 

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

 

 

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1held by those only who are duly licensed distributors, upon the
2filing of an application by a duly licensed distributor, with
3the Commission and the Commission shall, without the payment of
4any fee, immediately issue such importing distributor's
5license to the applicant, which shall allow the importation of
6alcoholic liquor by the licensee into this State from any point
7in the United States outside this State, and the purchase of
8alcoholic liquor in barrels, casks or other bulk containers and
9the bottling of such alcoholic liquors before resale thereof,
10but all bottles or containers so filled shall be sealed,
11labeled, stamped and otherwise made to comply with all
12provisions, rules and regulations governing manufacturers in
13the preparation and bottling of alcoholic liquors. The
14importing distributor's license shall permit such licensee to
15purchase alcoholic liquor from Illinois licensed non-resident
16dealers and foreign importers only.
17    (d) A retailer's license shall allow the licensee to sell
18and offer for sale at retail, only in the premises specified in
19the license, alcoholic liquor for use or consumption, but not
20for resale in any form. Nothing in Public Act 95-634 this
21amendatory Act of the 95th General Assembly shall deny, limit,
22remove, or restrict the ability of a holder of a retailer's
23license to transfer, deliver, or ship alcoholic liquor to the
24purchaser for use or consumption subject to any applicable
25local law or ordinance. Any retail license issued to a
26manufacturer shall only permit the manufacturer to sell beer at

 

 

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1retail on the premises actually occupied by the manufacturer.
2For the purpose of further describing the type of business
3conducted at a retail licensed premises, a retailer's licensee
4may be designated by the State Commission as (i) an on premise
5consumption retailer, (ii) an off premise sale retailer, or
6(iii) a combined on premise consumption and off premise sale
7retailer.
8    Notwithstanding any other provision of this subsection
9(d), a retail licensee may sell alcoholic liquors to a special
10event retailer licensee for resale to the extent permitted
11under subsection (e).
12    (e) A special event retailer's license (not-for-profit)
13shall permit the licensee to purchase alcoholic liquors from an
14Illinois licensed distributor (unless the licensee purchases
15less than $500 of alcoholic liquors for the special event, in
16which case the licensee may purchase the alcoholic liquors from
17a licensed retailer) and shall allow the licensee to sell and
18offer for sale, at retail, alcoholic liquors for use or
19consumption, but not for resale in any form and only at the
20location and on the specific dates designated for the special
21event in the license. An applicant for a special event retailer
22license must (i) furnish with the application: (A) a resale
23number issued under Section 2c of the Retailers' Occupation Tax
24Act or evidence that the applicant is registered under Section
252a of the Retailers' Occupation Tax Act, (B) a current, valid
26exemption identification number issued under Section 1g of the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1premises that is wholly owned and operated by the same licensee
2to importing distributors, distributors, and to non-licensees
3for use and consumption, (iii) store the beer upon the
4premises, (iv) sell and offer for sale at retail from the
5licensed premises for off-premises consumption no more than
6155,000 gallons per year so long as such sales are only made
7in-person, (v) sell and offer for sale at retail for use and
8consumption on the premises specified in the license any form
9of alcoholic liquor purchased from a licensed distributor or
10importing distributor, and (vi) with the prior approval of the
11Commission, annually transfer no more than 155,000 gallons of
12beer manufactured on the premises to a licensed brew pub wholly
13owned and operated by the same licensee.
14    A brew pub licensee shall not under any circumstance sell
15or offer for sale beer manufactured by the brew pub licensee to
16retail licensees.
17    A person who holds a class 2 brewer license may
18simultaneously hold a brew pub license if the class 2 brewer
19(i) does not, under any circumstance, sell or offer for sale
20beer manufactured by the class 2 brewer to retail licensees;
21(ii) does not hold more than 3 brew pub licenses in this State;
22(iii) does not manufacture more than a combined 3,720,000
23gallons of beer per year, including the beer manufactured at
24the brew pub; and (iv) is not a member of or affiliated with,
25directly or indirectly, a manufacturer that produces more than
263,720,000 gallons of beer per year or any other alcoholic

 

 

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1liquor.
2    Notwithstanding any other provision of this Act, a licensed
3brewer, class 2 brewer, or non-resident dealer who before July
41, 2015 manufactured less than than 3,720,000 gallons of beer
5per year and held a brew pub license on or before July 1, 2015
6may (i) continue to qualify for and hold that brew pub license
7for the licensed premises and (ii) manufacture more than
83,720,000 gallons of beer per year and continue to qualify for
9and hold that brew pub license if that brewer, class 2 brewer,
10or non-resident dealer does not simultaneously hold a class 1
11brewer license and is not a member of or affiliated with,
12directly or indirectly, a manufacturer that produces more than
133,720,000 gallons of beer per year or that produces any other
14alcoholic liquor.
15    (o) A caterer retailer license shall allow the holder to
16serve alcoholic liquors as an incidental part of a food service
17that serves prepared meals which excludes the serving of snacks
18as the primary meal, either on or off-site whether licensed or
19unlicensed.
20    (p) An auction liquor license shall allow the licensee to
21sell and offer for sale at auction wine and spirits for use or
22consumption, or for resale by an Illinois liquor licensee in
23accordance with provisions of this Act. An auction liquor
24license will be issued to a person and it will permit the
25auction liquor licensee to hold the auction anywhere in the
26State. An auction liquor license must be obtained for each

 

 

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

 

 

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

 

 

09900SB2797ham001- 21 -LRB099 19929 RPS 49082 a

1shipper's license shall be revoked in accordance with the
2provisions of Article VII of this Act.
3    A winery shipper licensee must collect, maintain, and
4submit to the Commission on a semi-annual basis the total
5number of cases per resident of wine shipped to residents of
6this State. A winery shipper licensed under this subsection (r)
7must comply with the requirements of Section 6-29 of this
8amendatory Act.
9    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
10Section 3-12, the State Commission may receive, respond to, and
11investigate any complaint and impose any of the remedies
12specified in paragraph (1) of subsection (a) of Section 3-12.
13    (s) A craft distiller tasting permit license shall allow an
14Illinois licensed craft distiller to transfer a portion of its
15alcoholic liquor inventory from its craft distiller licensed
16premises to the premises specified in the license hereby
17created and to conduct a sampling, only in the premises
18specified in the license hereby created, of the transferred
19alcoholic liquor in accordance with subsection (c) of Section
206-31 of this Act. The transferred alcoholic liquor may not be
21sold or resold in any form. An applicant for the craft
22distiller tasting permit license must also submit with the
23application proof satisfactory to the State Commission that the
24applicant will provide dram shop liability insurance to the
25maximum limits and have local authority approval.
26(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;

 

 

09900SB2797ham001- 22 -LRB099 19929 RPS 49082 a

198-756, eff. 7-16-14; 99-448, eff. 8-24-15; revised 10-27-15.)
 
2    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
3    Sec. 5-3. License fees. Except as otherwise provided
4herein, at the time application is made to the State Commission
5for a license of any class, the applicant shall pay to the
6State Commission the fee hereinafter provided for the kind of
7license applied for.
8    The fee for licenses issued by the State Commission shall
9be as follows:
10    For a manufacturer's license:
11    Class 1. Distiller .............................$3,600
12    Class 2. Rectifier .............................3,600
13    Class 3. Brewer ................................900
14    Class 4. First-class Wine Manufacturer .........600
15    Class 5. Second-class
16        Wine Manufacturer ..........................1,200
17    Class 6. First-class wine-maker ................600
18    Class 7. Second-class wine-maker ...............1200
19    Class 8. Limited Wine Manufacturer..............120
20    Class 9. Craft Distiller........................ 1,800
21    Class 10. Class 1 Brewer........................25
22    Class 11. Class 2 Brewer........................ 25
23    For a Brew Pub License .........................1,050
24    For a caterer retailer's license................200
25    For a foreign importer's license ...............25

 

 

09900SB2797ham001- 23 -LRB099 19929 RPS 49082 a

1    For an importing distributor's license .........25
2    For a distributor's license ....................270
3    For a non-resident dealer's license
4        (500,000 gallons or over) ..................270
5    For a non-resident dealer's license
6        (under 500,000 gallons) ....................90
7    For a wine-maker's premises license ............100
8    For a winery shipper's license
9        (under 250,000 gallons).....................150
10    For a winery shipper's license
11        (250,000 or over, but under 500,000 gallons).500
12    For a winery shipper's license
13        (500,000 gallons or over)...................1,000
14    For a wine-maker's premises license,
15        second location ............................350
16    For a wine-maker's premises license,
17        third location .............................350
18    For a retailer's license .......................500
19    For a special event retailer's license,
20        (not-for-profit) ...........................25
21    For a special use permit license,
22        one day only ...............................50
23        2 days or more .............................100
24    For a railroad license .........................60
25    For a boat license .............................180
26    For an airplane license, times the

 

 

09900SB2797ham001- 24 -LRB099 19929 RPS 49082 a

1        licensee's maximum number of aircraft
2        in flight, serving liquor over the
3        State at any given time, which either
4        originate, terminate, or make
5        an intermediate stop in the State ..........60
6    For a non-beverage user's license:
7        Class 1 ....................................24
8        Class 2 ....................................60
9        Class 3 ....................................120
10        Class 4 ....................................240
11        Class 5 ....................................600
12    For a broker's license .........................600
13    For an auction liquor license ..................50
14    For a homebrewer special event permit........... 25
15    For a craft distiller tasting permit............ 25
16    Fees collected under this Section shall be paid into the
17Dram Shop Fund. On and after July 1, 2003, of the funds
18received for a retailer's license, in addition to the first
19$175, an additional $75 shall be paid into the Dram Shop Fund,
20and $250 shall be paid into the General Revenue Fund. Beginning
21June 30, 1990 and on June 30 of each subsequent year through
22June 29, 2003, any balance over $5,000,000 remaining in the
23Dram Shop Fund shall be credited to State liquor licensees and
24applied against their fees for State liquor licenses for the
25following year. The amount credited to each licensee shall be a
26proportion of the balance in the Dram Fund that is the same as

 

 

09900SB2797ham001- 25 -LRB099 19929 RPS 49082 a

1the proportion of the license fee paid by the licensee under
2this Section for the period in which the balance was
3accumulated to the aggregate fees paid by all licensees during
4that period.
5    No fee shall be paid for licenses issued by the State
6Commission to the following non-beverage users:
7        (a) Hospitals, sanitariums, or clinics when their use
8    of alcoholic liquor is exclusively medicinal, mechanical
9    or scientific.
10        (b) Universities, colleges of learning or schools when
11    their use of alcoholic liquor is exclusively medicinal,
12    mechanical or scientific.
13        (c) Laboratories when their use is exclusively for the
14    purpose of scientific research.
15(Source: P.A. 98-55, eff. 7-5-13; 99-448, eff. 8-24-15.)
 
16    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
17    Sec. 6-4. (a) No person licensed by any licensing authority
18as a distiller, or a wine manufacturer, or any subsidiary or
19affiliate thereof, or any officer, associate, member, partner,
20representative, employee, agent or shareholder owning more
21than 5% of the outstanding shares of such person shall be
22issued an importing distributor's or distributor's license,
23nor shall any person licensed by any licensing authority as an
24importing distributor, distributor or retailer, or any
25subsidiary or affiliate thereof, or any officer or associate,

 

 

09900SB2797ham001- 26 -LRB099 19929 RPS 49082 a

1member, partner, representative, employee, agent or
2shareholder owning more than 5% of the outstanding shares of
3such person be issued a distiller's license, craft distiller's
4license, or a wine manufacturer's license; and no person or
5persons licensed as a distiller or craft distiller by any
6licensing authority shall have any interest, directly or
7indirectly, with such distributor or importing distributor.
8    However, an importing distributor or distributor, which on
9January 1, 1985 is owned by a brewer, or any subsidiary or
10affiliate thereof or any officer, associate, member, partner,
11representative, employee, agent or shareholder owning more
12than 5% of the outstanding shares of the importing distributor
13or distributor referred to in this paragraph, may own or
14acquire an ownership interest of more than 5% of the
15outstanding shares of a wine manufacturer and be issued a wine
16manufacturer's license by any licensing authority.
17    (b) The foregoing provisions shall not apply to any person
18licensed by any licensing authority as a distiller or wine
19manufacturer, or to any subsidiary or affiliate of any
20distiller or wine manufacturer who shall have been heretofore
21licensed by the State Commission as either an importing
22distributor or distributor during the annual licensing period
23expiring June 30, 1947, and shall actually have made sales
24regularly to retailers.
25    (c) Provided, however, that in such instances where a
26distributor's or importing distributor's license has been

 

 

09900SB2797ham001- 27 -LRB099 19929 RPS 49082 a

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

 

 

09900SB2797ham001- 28 -LRB099 19929 RPS 49082 a

1importing distributor's license during the licensing period
2ending June 30, 1947, which license was owned in whole by such
3distiller, or subsidiaries or affiliates of such distiller.
4    (e) Any person licensed as a brewer, class 1 brewer, or
5class 2 brewer shall be permitted to sell on the licensed
6premises to non-licensees for on or off-premises consumption
7for the premises in which he or she actually conducts such
8business beer manufactured by the brewer, class 1 brewer, or
9class 2 brewer. Such sales shall be limited to on-premises,
10in-person sales only, for lawful consumption on or off
11premises. Such authorization shall be considered a privilege
12granted by the brewer license and, other than a manufacturer of
13beer as stated above, no manufacturer or distributor or
14importing distributor, excluding airplane licensees exercising
15powers provided in paragraph (i) of Section 5-1 of this Act, or
16any subsidiary or affiliate thereof, or any officer, associate,
17member, partner, representative, employee or agent, or
18shareholder shall be issued a retailer's license, nor shall any
19person having a retailer's license, excluding airplane
20licensees exercising powers provided in paragraph (i) of
21Section 5-1 of this Act, or any subsidiary or affiliate
22thereof, or any officer, associate, member, partner,
23representative or agent, or shareholder be issued a
24manufacturer's license or importing distributor's license.
25    A person who holds a class 1 or class 2 brewer license and
26is authorized by this Section to sell beer to non-licensees

 

 

09900SB2797ham001- 29 -LRB099 19929 RPS 49082 a

1shall not sell beer to non-licensees from more than 3 total
2brewer or commonly owned brew pub licensed locations in this
3State. The class 1 or class 2 brewer shall designate to the
4State Commission the brewer or brew pub locations from which it
5will sell beer to non-licensees.
6    A person licensed as a craft distiller, including a person
7who holds more than one craft distiller license, not affiliated
8with any other person manufacturing spirits may be authorized
9by the Commission to sell up to 2,500 gallons of spirits
10produced by the person to non-licensees for on or off-premises
11consumption for the premises in which he or she actually
12conducts business permitting only the retail sale of spirits
13manufactured at such premises. Such sales shall be limited to
14on-premises, in-person sales only, for lawful consumption on or
15off premises, and such authorization shall be considered a
16privilege granted by the craft distiller license. A craft
17distiller licensed for retail sale shall secure liquor
18liability insurance coverage in an amount at least equal to the
19maximum liability amounts set forth in subsection (a) of
20Section 6-21 of this Act.
21    A craft distiller license holder shall not deliver any
22alcoholic liquor to any non-licensee off the licensed premises.
23A craft distiller shall affirm in its annual craft distiller's
24license application that it does not produce more than 100,000
25gallons of distilled spirits annually and that the craft
26distiller does not sell more than 2,500 gallons of spirits to

 

 

09900SB2797ham001- 30 -LRB099 19929 RPS 49082 a

1non-licensees for on or off-premises consumption. In the
2application, which shall be sworn under penalty of perjury, the
3craft distiller shall state the volume of production and sales
4for each year since the craft distiller's establishment.
5    (f) (Blank).
6    (g) Notwithstanding any of the foregoing prohibitions, a
7limited wine manufacturer may sell at retail at its
8manufacturing site for on or off premises consumption and may
9sell to distributors. A limited wine manufacturer licensee
10shall secure liquor liability insurance coverage in an amount
11at least equal to the maximum liability amounts set forth in
12subsection (a) of Section 6-21 of this Act.
13    (h) The changes made to this Section by Public Act 99-47
14this amendatory Act of the 99th General Assembly shall not
15diminish or impair the rights of any person, whether a
16distiller, wine manufacturer, agent, or affiliate thereof, who
17requested in writing and submitted documentation to the State
18Commission on or before February 18, 2015 to be approved for a
19retail license pursuant to what has heretofore been subsection
20(f); provided that, on or before that date, the State
21Commission considered the intent of that person to apply for
22the retail license under that subsection and, by recorded vote,
23the State Commission approved a resolution indicating that such
24a license application could be lawfully approved upon that
25person duly filing a formal application for a retail license
26and if that person, within 90 days of the State Commission

 

 

09900SB2797ham001- 31 -LRB099 19929 RPS 49082 a

1appearance and recorded vote, first filed an application with
2the appropriate local commission, which application was
3subsequently approved by the appropriate local commission
4prior to consideration by the State Commission of that person's
5application for a retail license. It is further provided that
6the State Commission may approve the person's application for a
7retail license or renewals of such license if such person
8continues to diligently adhere to all representations made in
9writing to the State Commission on or before February 18, 2015,
10or thereafter, or in the affidavit filed by that person with
11the State Commission to support the issuance of a retail
12license and to abide by all applicable laws and duly adopted
13rules.
14(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
15revised 10-30-15.)
 
16    (235 ILCS 5/6-31)
17    Sec. 6-31. Product sampling.
18    (a) Retailer, distributor, importing distributor,
19manufacturer and nonresident dealer licensees may conduct
20product sampling for consumption at a licensed retail location.
21Up to 3 samples, consisting of no more than (i) 1/4 ounce of
22distilled spirits, (ii) one ounce of wine, or (iii) 2 ounces of
23beer may be served to a consumer in one day.
24    (b) Notwithstanding the provisions of subsection (a), an
25on-premises retail licensee may offer for sale and serve more

 

 

09900SB2797ham001- 32 -LRB099 19929 RPS 49082 a

1than one drink per person for sampling purposes. In any event,
2all provisions of Section 6-28 shall apply to an on-premises
3retail licensee that conducts product sampling.
4    (c) A craft distiller tasting permit licensee may conduct
5product sampling of distilled spirits for consumption at the
6location specified in the craft distiller tasting permit
7license. Up to 3 samples, consisting of no more than 1/4 ounce
8of distilled spirits, may be served to a consumer in one day.
9(Source: P.A. 99-46, eff. 7-15-15.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".