HB4897ham002 100TH GENERAL ASSEMBLY

Rep. Will Guzzardi

Filed: 4/23/2018

 

 


 

 


 
10000HB4897ham002LRB100 18877 SMS 39177 a

1
AMENDMENT TO HOUSE BILL 4897

2    AMENDMENT NO. ______. Amend House Bill 4897 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 3-12, 5-1, and 6-4 as follows:
 
6    (235 ILCS 5/3-12)
7    Sec. 3-12. Powers and duties of State Commission.
8    (a) The State commission shall have the following powers,
9functions, and duties:
10        (1) To receive applications and to issue licenses to
11    manufacturers, foreign importers, importing distributors,
12    distributors, non-resident dealers, on premise consumption
13    retailers, off premise sale retailers, special event
14    retailer licensees, special use permit licenses, auction
15    liquor licenses, brew pubs, caterer retailers,
16    non-beverage users, railroads, including owners and

 

 

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1    lessees of sleeping, dining and cafe cars, airplanes,
2    boats, brokers, and wine maker's premises licensees in
3    accordance with the provisions of this Act, and to suspend
4    or revoke such licenses upon the State commission's
5    determination, upon notice after hearing, that a licensee
6    has violated any provision of this Act or any rule or
7    regulation issued pursuant thereto and in effect for 30
8    days prior to such violation. Except in the case of an
9    action taken pursuant to a violation of Section 6-3, 6-5,
10    or 6-9, any action by the State Commission to suspend or
11    revoke a licensee's license may be limited to the license
12    for the specific premises where the violation occurred. An
13    action for a violation of this Act shall be commenced by
14    the State Commission within 2 years after the date the
15    State Commission becomes aware of the violation.
16        In lieu of suspending or revoking a license, the
17    commission may impose a fine, upon the State commission's
18    determination and notice after hearing, that a licensee has
19    violated any provision of this Act or any rule or
20    regulation issued pursuant thereto and in effect for 30
21    days prior to such violation.
22        For the purpose of this paragraph (1), when determining
23    multiple violations for the sale of alcohol to a person
24    under the age of 21, a second or subsequent violation for
25    the sale of alcohol to a person under the age of 21 shall
26    only be considered if it was committed within 5 years after

 

 

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1    the date when a prior violation for the sale of alcohol to
2    a person under the age of 21 was committed.
3        The fine imposed under this paragraph may not exceed
4    $500 for each violation. Each day that the activity, which
5    gave rise to the original fine, continues is a separate
6    violation. The maximum fine that may be levied against any
7    licensee, for the period of the license, shall not exceed
8    $20,000. The maximum penalty that may be imposed on a
9    licensee for selling a bottle of alcoholic liquor with a
10    foreign object in it or serving from a bottle of alcoholic
11    liquor with a foreign object in it shall be the destruction
12    of that bottle of alcoholic liquor for the first 10 bottles
13    so sold or served from by the licensee. For the eleventh
14    bottle of alcoholic liquor and for each third bottle
15    thereafter sold or served from by the licensee with a
16    foreign object in it, the maximum penalty that may be
17    imposed on the licensee is the destruction of the bottle of
18    alcoholic liquor and a fine of up to $50.
19        Any notice issued by the State Commission to a licensee
20    for a violation of this Act or any notice with respect to
21    settlement or offer in compromise shall include the field
22    report, photographs, and any other supporting
23    documentation necessary to reasonably inform the licensee
24    of the nature and extent of the violation or the conduct
25    alleged to have occurred.
26        (2) To adopt such rules and regulations consistent with

 

 

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

 

 

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1    manufacturer, importing distributor, distributor, or
2    retailer without a license or valid license, to notify the
3    local liquor authority, file a complaint with the State's
4    Attorney's Office of the county where the incident
5    occurred, or initiate an investigation with the
6    appropriate law enforcement officials.
7        (5.2) To issue a cease and desist notice to persons
8    shipping alcoholic liquor into this State from a point
9    outside of this State if the shipment is in violation of
10    this Act.
11        (5.3) To receive complaints from licensees, local
12    officials, law enforcement agencies, organizations, and
13    persons stating that any licensee has been or is violating
14    any provision of this Act or the rules and regulations
15    issued pursuant to this Act. Such complaints shall be in
16    writing, signed and sworn to by the person making the
17    complaint, and shall state with specificity the facts in
18    relation to the alleged violation. If the Commission has
19    reasonable grounds to believe that the complaint
20    substantially alleges a violation of this Act or rules and
21    regulations adopted pursuant to this Act, it shall conduct
22    an investigation. If, after conducting an investigation,
23    the Commission is satisfied that the alleged violation did
24    occur, it shall proceed with disciplinary action against
25    the licensee as provided in this Act.
26        (6) To hear and determine appeals from orders of a

 

 

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

 

 

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

 

 

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

 

 

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1    the impact on and implications for the State of Illinois of
2    Section 1926 of the federal ADAMHA Reorganization Act of
3    1992 (Public Law 102-321). This study shall address the
4    extent to which Illinois currently complies with the
5    provisions of P.L. 102-321 and the rules promulgated
6    pursuant thereto.
7        As part of its report, the Commission shall provide the
8    following essential information:
9            (i) the number of retail distributors of tobacco
10        products, by type and geographic area, in the State;
11            (ii) the number of reported citations and
12        successful convictions, categorized by type and
13        location of retail distributor, for violation of the
14        Prevention of Tobacco Use by Minors and Sale and
15        Distribution of Tobacco Products Act and the Smokeless
16        Tobacco Limitation Act;
17            (iii) the extent and nature of organized
18        educational and governmental activities that are
19        intended to promote, encourage or otherwise secure
20        compliance with any Illinois laws that prohibit the
21        sale or distribution of tobacco products to minors; and
22            (iv) the level of access and availability of
23        tobacco products to individuals under the age of 18.
24        To obtain the data necessary to comply with the
25    provisions of P.L. 102-321 and the requirements of this
26    report, the Commission shall conduct random, unannounced

 

 

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1    inspections of a geographically and scientifically
2    representative sample of the State's retail tobacco
3    distributors.
4        The Commission shall consult with the Department of
5    Public Health, the Department of Human Services, the
6    Illinois State Police and any other executive branch
7    agency, and private organizations that may have
8    information relevant to this report.
9        The Commission may contract with the Food and Drug
10    Administration of the U.S. Department of Health and Human
11    Services to conduct unannounced investigations of Illinois
12    tobacco vendors to determine compliance with federal laws
13    relating to the illegal sale of cigarettes and smokeless
14    tobacco products to persons under the age of 18.
15        (14) On or before April 30, 2008 and every 2 years
16    thereafter, the Commission shall present a written report
17    to the Governor and the General Assembly that shall be
18    based on a study of the impact of Public Act 95-634 on the
19    business of soliciting, selling, and shipping wine from
20    inside and outside of this State directly to residents of
21    this State. As part of its report, the Commission shall
22    provide all of the following information:
23            (A) The amount of State excise and sales tax
24        revenues generated.
25            (B) The amount of licensing fees received.
26            (C) The number of cases of wine shipped from inside

 

 

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

 

 

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

 

 

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1    member of any affiliated group that produces more than
2    25,000 gallons of wine per annum or produces any other
3    alcoholic liquor; (3) will not annually produce for sale
4    more than 25,000 gallons of wine; and (4) will not annually
5    sell more than 5,000 gallons of its wine to retail
6    licensees.
7        (D) A self-distribution exemption holder shall
8    annually certify to the Commission its production of wine
9    in the previous 12 months and its anticipated production
10    and sales for the next 12 months. The Commission may fine,
11    suspend, or revoke a self-distribution exemption after a
12    hearing if it finds that the exemption holder has made a
13    material misrepresentation in its application, violated a
14    revenue or liquor law of Illinois, exceeded production of
15    25,000 gallons of wine in any calendar year, or become part
16    of an affiliated group producing more than 25,000 gallons
17    of wine or any other alcoholic liquor.
18        (E) Except in hearings for violations of this Act or
19    Public Act 95-634 or a bona fide investigation by duly
20    sworn law enforcement officials, the Commission, or its
21    agents, the Commission shall maintain the production and
22    sales information of a self-distribution exemption holder
23    as confidential and shall not release such information to
24    any person.
25        (F) The Commission shall issue regulations governing
26    self-distribution exemptions consistent with this Section

 

 

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

 

 

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

 

 

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1    any brew pub license held by the licensee, including any
2    ownership interest it held in the licensed brew pub.
3        (D) A self-distribution exemption holder shall
4    annually certify to the State Commission its manufacture of
5    beer during the previous 12 months and its anticipated
6    manufacture and sales of beer for the next 12 months. The
7    State Commission may fine, suspend, or revoke a
8    self-distribution exemption after a hearing if it finds
9    that the exemption holder has made a material
10    misrepresentation in its application, violated a revenue
11    or alcoholic beverage law of Illinois, exceeded the
12    manufacture of 930,000 gallons of beer in any calendar year
13    or became part of an affiliated group manufacturing more
14    than 930,000 gallons of beer or any other alcoholic
15    beverage.
16        (E) The State Commission shall issue rules and
17    regulations governing self-distribution exemptions
18    consistent with this Act.
19        (F) Nothing in this paragraph (18) shall prohibit a
20    self-distribution exemption holder from entering into or
21    simultaneously having a distribution agreement with a
22    licensed Illinois importing distributor or a distributor.
23    If a self-distribution exemption holder enters into a
24    distribution agreement and has assigned distribution
25    rights to an importing distributor or distributor, then the
26    self-distribution exemption holder's distribution rights

 

 

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1    in the assigned territories shall cease in a reasonable
2    time not to exceed 60 days.
3        (G) It is the intent of this paragraph (18) to promote
4    and continue orderly markets. The General Assembly finds
5    that in order to preserve Illinois' regulatory
6    distribution system, it is necessary to create an exception
7    for smaller manufacturers in order to afford and allow such
8    smaller manufacturers of beer access to the marketplace in
9    order to develop a customer base without impairing the
10    integrity of the 3-tier system.
11    (b) On or before April 30, 1999, the Commission shall
12present a written report to the Governor and the General
13Assembly that shall be based on a study of the impact of Public
14Act 90-739 on the business of soliciting, selling, and shipping
15alcoholic liquor from outside of this State directly to
16residents of this State.
17    As part of its report, the Commission shall provide the
18following information:
19        (i) the amount of State excise and sales tax revenues
20    generated as a result of Public Act 90-739;
21        (ii) the amount of licensing fees received as a result
22    of Public Act 90-739;
23        (iii) the number of reported violations, the number of
24    cease and desist notices issued by the Commission, the
25    number of notices of violations issued to the Department of
26    Revenue, and the number of notices and complaints of

 

 

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1    violations to law enforcement officials.
2(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
3100-134, eff. 8-18-17; 100-201, eff. 8-18-17.)
 
4    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
5    Sec. 5-1. Licenses issued by the Illinois Liquor Control
6Commission shall be of the following classes:
7    (a) Manufacturer's license - Class 1. Distiller, Class 2.
8Rectifier, Class 3. Brewer, Class 4. First Class Wine
9Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
10First Class Winemaker, Class 7. Second Class Winemaker, Class
118. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1210. Class 1 Brewer, Class 11. Class 2 Brewer,
13    (b) Distributor's license,
14    (c) Importing Distributor's license,
15    (d) Retailer's license,
16    (e) Special Event Retailer's license (not-for-profit),
17    (f) Railroad license,
18    (g) Boat license,
19    (h) Non-Beverage User's license,
20    (i) Wine-maker's premises license,
21    (j) Airplane license,
22    (k) Foreign importer's license,
23    (l) Broker's license,
24    (m) Non-resident dealer's license,
25    (n) Brew Pub license,

 

 

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1    (o) Auction liquor license,
2    (p) Caterer retailer license,
3    (q) Special use permit license,
4    (r) Winery shipper's license,
5    (s) Craft distiller tasting permit.
6    No person, firm, partnership, corporation, or other legal
7business entity that is engaged in the manufacturing of wine
8may concurrently obtain and hold a wine-maker's license and a
9wine manufacturer's license.
10    (a) A manufacturer's license shall allow the manufacture,
11importation in bulk, storage, distribution and sale of
12alcoholic liquor to persons without the State, as may be
13permitted by law and to licensees in this State as follows:
14    Class 1. A Distiller may make sales and deliveries of
15alcoholic liquor to distillers, rectifiers, importing
16distributors, distributors and non-beverage users and to no
17other licensees.
18    Class 2. A Rectifier, who is not a distiller, as defined
19herein, may make sales and deliveries of alcoholic liquor to
20rectifiers, importing distributors, distributors, retailers
21and non-beverage users and to no other licensees.
22    Class 3. A Brewer may make sales and deliveries of beer to
23importing distributors and distributors and may make sales as
24authorized under subsection (e) of Section 6-4 of this Act.
25    Class 4. A first class wine-manufacturer may make sales and
26deliveries of up to 50,000 gallons of wine to manufacturers,

 

 

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

 

 

10000HB4897ham002- 21 -LRB100 18877 SMS 39177 a

1    Class 8. A limited wine-manufacturer may make sales and
2deliveries not to exceed 40,000 gallons of wine per year to
3distributors, and to non-licensees in accordance with the
4provisions of this Act.
5    Class 9. A craft distiller license shall allow the
6manufacture of up to 100,000 gallons of spirits by distillation
7per year and the storage of such spirits. If a craft distiller
8licensee, including a craft distiller licensee who holds more
9than one craft distiller license, is not affiliated with any
10other manufacturer of spirits, then the craft distiller
11licensee may sell such spirits to distributors in this State
12and up to 2,500 gallons of such spirits to non-licensees to the
13extent permitted by any exemption approved by the Commission
14pursuant to Section 6-4 of this Act. A craft distiller license
15holder may store such spirits at a non-contiguous licensed
16location, but at no time shall a craft distiller license holder
17directly or indirectly produce in the aggregate more than
18100,000 gallons of spirits per year.
19    A craft distiller licensee may hold more than one craft
20distiller's license. However, a craft distiller that holds more
21than one craft distiller license shall not manufacture, in the
22aggregate, more than 100,000 gallons of spirits by distillation
23per year and shall not sell, in the aggregate, more than 2,500
24gallons of such spirits to non-licensees in accordance with an
25exemption approved by the State Commission pursuant to Section
266-4 of this Act.

 

 

10000HB4897ham002- 22 -LRB100 18877 SMS 39177 a

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

 

 

10000HB4897ham002- 23 -LRB100 18877 SMS 39177 a

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

 

 

10000HB4897ham002- 24 -LRB100 18877 SMS 39177 a

1facts in the securing of a registration are grounds for
2suspension or revocation of the registration. The State
3Commission shall post a list of registered agents on the
4Commission's website.
5    (b) A distributor's license shall allow the wholesale
6purchase and storage of alcoholic liquors and sale of alcoholic
7liquors to licensees in this State and to persons without the
8State, as may be permitted by law, and the sale of beer, cider,
9or both beer and cider to brewers, class 1 brewers, and class 2
10brewers that, pursuant to subsection (e) of Section 6-4 of this
11Act, sell beer, cider, or both beer and cider to non-licensees
12at their breweries. No person licensed as a distributor shall
13be granted a non-resident dealer's license.
14    (c) An importing distributor's license may be issued to and
15held by those only who are duly licensed distributors, upon the
16filing of an application by a duly licensed distributor, with
17the Commission and the Commission shall, without the payment of
18any fee, immediately issue such importing distributor's
19license to the applicant, which shall allow the importation of
20alcoholic liquor by the licensee into this State from any point
21in the United States outside this State, and the purchase of
22alcoholic liquor in barrels, casks or other bulk containers and
23the bottling of such alcoholic liquors before resale thereof,
24but all bottles or containers so filled shall be sealed,
25labeled, stamped and otherwise made to comply with all
26provisions, rules and regulations governing manufacturers in

 

 

10000HB4897ham002- 25 -LRB100 18877 SMS 39177 a

1the preparation and bottling of alcoholic liquors. The
2importing distributor's license shall permit such licensee to
3purchase alcoholic liquor from Illinois licensed non-resident
4dealers and foreign importers only. No person licensed as an
5importing distributor shall be granted a non-resident dealer's
6license.
7    (d) A retailer's license shall allow the licensee to sell
8and offer for sale at retail, only in the premises specified in
9the license, alcoholic liquor for use or consumption, but not
10for resale in any form. Nothing in Public Act 95-634 shall
11deny, limit, remove, or restrict the ability of a holder of a
12retailer's license to transfer, deliver, or ship alcoholic
13liquor to the purchaser for use or consumption subject to any
14applicable local law or ordinance. Any retail license issued to
15a manufacturer shall only permit the manufacturer to sell beer
16at retail on the premises actually occupied by the
17manufacturer. For the purpose of further describing the type of
18business conducted at a retail licensed premises, a retailer's
19licensee may be designated by the State Commission as (i) an on
20premise consumption retailer, (ii) an off premise sale
21retailer, or (iii) a combined on premise consumption and off
22premise sale retailer.
23    Notwithstanding any other provision of this subsection
24(d), a retail licensee may sell alcoholic liquors to a special
25event retailer licensee for resale to the extent permitted
26under subsection (e).

 

 

10000HB4897ham002- 26 -LRB100 18877 SMS 39177 a

1    (e) A special event retailer's license (not-for-profit)
2shall permit the licensee to purchase alcoholic liquors from an
3Illinois licensed distributor (unless the licensee purchases
4less than $500 of alcoholic liquors for the special event, in
5which case the licensee may purchase the alcoholic liquors from
6a licensed retailer) and shall allow the licensee to sell and
7offer for sale, at retail, alcoholic liquors for use or
8consumption, but not for resale in any form and only at the
9location and on the specific dates designated for the special
10event in the license. An applicant for a special event retailer
11license must (i) furnish with the application: (A) a resale
12number issued under Section 2c of the Retailers' Occupation Tax
13Act or evidence that the applicant is registered under Section
142a of the Retailers' Occupation Tax Act, (B) a current, valid
15exemption identification number issued under Section 1g of the
16Retailers' Occupation Tax Act, and a certification to the
17Commission that the purchase of alcoholic liquors will be a
18tax-exempt purchase, or (C) a statement that the applicant is
19not registered under Section 2a of the Retailers' Occupation
20Tax Act, does not hold a resale number under Section 2c of the
21Retailers' Occupation Tax Act, and does not hold an exemption
22number under Section 1g of the Retailers' Occupation Tax Act,
23in which event the Commission shall set forth on the special
24event retailer's license a statement to that effect; (ii)
25submit with the application proof satisfactory to the State
26Commission that the applicant will provide dram shop liability

 

 

10000HB4897ham002- 27 -LRB100 18877 SMS 39177 a

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

 

 

10000HB4897ham002- 28 -LRB100 18877 SMS 39177 a

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

 

 

10000HB4897ham002- 29 -LRB100 18877 SMS 39177 a

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

 

 

10000HB4897ham002- 30 -LRB100 18877 SMS 39177 a

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

 

 

10000HB4897ham002- 31 -LRB100 18877 SMS 39177 a

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

 

 

10000HB4897ham002- 32 -LRB100 18877 SMS 39177 a

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

 

 

10000HB4897ham002- 33 -LRB100 18877 SMS 39177 a

1provided that (i) said non-resident dealer shall register with
2the Illinois Liquor Control Commission each and every brand of
3alcoholic liquor which it proposes to sell to Illinois
4licensees during the license period, (ii) it shall comply with
5all of the provisions of Section 6-9 hereof with respect to
6registration of such Illinois licensees as may be granted the
7right to sell such brands at wholesale, and (iii) the
8non-resident dealer shall comply with the provisions of
9Sections 6-5 and 6-6 of this Act to the same extent that these
10provisions apply to manufacturers. No person licensed as a
11non-resident dealer shall be granted a distributor's or
12importing distributor's license.
13    (n) A brew pub license shall allow the licensee to only (i)
14manufacture up to 155,000 gallons of beer per year only on the
15premises specified in the license, (ii) make sales of the beer
16manufactured on the premises or, with the approval of the
17Commission, beer manufactured on another brew pub licensed
18premises that is wholly owned and operated by the same licensee
19to importing distributors, distributors, and to non-licensees
20for use and consumption, (iii) store the beer upon the
21premises, (iv) sell and offer for sale at retail from the
22licensed premises for off-premises consumption no more than
23155,000 gallons per year so long as such sales are only made
24in-person, (v) sell and offer for sale at retail for use and
25consumption on the premises specified in the license any form
26of alcoholic liquor purchased from a licensed distributor or

 

 

10000HB4897ham002- 34 -LRB100 18877 SMS 39177 a

1importing distributor, and (vi) with the prior approval of the
2Commission, annually transfer no more than 155,000 gallons of
3beer manufactured on the premises to a licensed brew pub wholly
4owned and operated by the same licensee.
5    A brew pub licensee shall not under any circumstance sell
6or offer for sale beer manufactured by the brew pub licensee to
7retail licensees.
8    A person who holds a class 2 brewer license may
9simultaneously hold a brew pub license if the class 2 brewer
10(i) does not, under any circumstance, sell or offer for sale
11beer manufactured by the class 2 brewer to retail licensees;
12(ii) does not hold more than 3 brew pub licenses in this State;
13(iii) does not manufacture more than a combined 3,720,000
14gallons of beer per year, including the beer manufactured at
15the brew pub; and (iv) is not a member of or affiliated with,
16directly or indirectly, a manufacturer that produces more than
173,720,000 gallons of beer per year or any other alcoholic
18liquor.
19    Notwithstanding any other provision of this Act, a licensed
20brewer, class 2 brewer, or non-resident dealer who before July
211, 2015 manufactured less than 3,720,000 gallons of beer per
22year and held a brew pub license on or before July 1, 2015 may
23(i) continue to qualify for and hold that brew pub license for
24the licensed premises and (ii) manufacture more than 3,720,000
25gallons of beer per year and continue to qualify for and hold
26that brew pub license if that brewer, class 2 brewer, or

 

 

10000HB4897ham002- 35 -LRB100 18877 SMS 39177 a

1non-resident dealer does not simultaneously hold a class 1
2brewer license and is not a member of or affiliated with,
3directly or indirectly, a manufacturer that produces more than
43,720,000 gallons of beer per year or that produces any other
5alcoholic liquor.
6    (o) A caterer retailer license shall allow the holder to
7serve alcoholic liquors as an incidental part of a food service
8that serves prepared meals which excludes the serving of snacks
9as the primary meal, either on or off-site whether licensed or
10unlicensed.
11    (p) An auction liquor license shall allow the licensee to
12sell and offer for sale at auction wine and spirits for use or
13consumption, or for resale by an Illinois liquor licensee in
14accordance with provisions of this Act. An auction liquor
15license will be issued to a person and it will permit the
16auction liquor licensee to hold the auction anywhere in the
17State. An auction liquor license must be obtained for each
18auction at least 14 days in advance of the auction date.
19    (q) A special use permit license shall allow an Illinois
20licensed retailer to transfer a portion of its alcoholic liquor
21inventory from its retail licensed premises to the premises
22specified in the license hereby created, and to sell or offer
23for sale at retail, only in the premises specified in the
24license hereby created, the transferred alcoholic liquor for
25use or consumption, but not for resale in any form. A special
26use permit license may be granted for the following time

 

 

10000HB4897ham002- 36 -LRB100 18877 SMS 39177 a

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

 

 

10000HB4897ham002- 37 -LRB100 18877 SMS 39177 a

1of this State concerning the enforcement of this Act and any
2related laws, rules, and regulations, including authorizing
3the Department of Revenue and the Commission to conduct audits
4for the purpose of ensuring compliance with Public Act 95-634,
5and an acknowledgement that the wine manufacturer is in
6compliance with Section 6-2 of this Act. Any third party,
7except for a common carrier, authorized to ship wine on behalf
8of a first-class or second-class wine manufacturer's licensee,
9a first-class or second-class wine-maker's licensee, a limited
10wine manufacturer's licensee, or a person who is licensed to
11make wine under the laws of another state shall also be
12disclosed by the winery shipper's licensee, and a copy of the
13written appointment of the third-party wine provider, except
14for a common carrier, to the wine manufacturer shall be filed
15with the State Commission as a supplement to the winery
16shipper's license application or any renewal thereof. The
17winery shipper's license holder shall affirm under penalty of
18perjury, as part of the winery shipper's license application or
19renewal, that he or she only ships wine, either directly or
20indirectly through a third-party provider, from the licensee's
21own production.
22    Except for a common carrier, a third-party provider
23shipping wine on behalf of a winery shipper's license holder is
24the agent of the winery shipper's license holder and, as such,
25a winery shipper's license holder is responsible for the acts
26and omissions of the third-party provider acting on behalf of

 

 

10000HB4897ham002- 38 -LRB100 18877 SMS 39177 a

1the license holder. A third-party provider, except for a common
2carrier, that engages in shipping wine into Illinois on behalf
3of a winery shipper's license holder shall consent to the
4jurisdiction of the State Commission and the State. Any
5third-party, except for a common carrier, holding such an
6appointment shall, by February 1 of each calendar year and upon
7request by the State Commission or the Department of Revenue,
8file with the State Commission a statement detailing each
9shipment made to an Illinois resident. The statement shall
10include the name and address of the third-party provider filing
11the statement, the time period covered by the statement, and
12the following information:
13        (1) the name, address, and license number of the winery
14    shipper on whose behalf the shipment was made;
15        (2) the quantity of the products delivered; and
16        (3) the date and address of the shipment.
17If the Department of Revenue or the State Commission requests a
18statement under this paragraph, the third-party provider must
19provide that statement no later than 30 days after the request
20is made. Any books, records, supporting papers, and documents
21containing information and data relating to a statement under
22this paragraph shall be kept and preserved for a period of 3
23years, unless their destruction sooner is authorized, in
24writing, by the Director of Revenue, and shall be open and
25available to inspection by the Director of Revenue or the State
26Commission or any duly authorized officer, agent, or employee

 

 

10000HB4897ham002- 39 -LRB100 18877 SMS 39177 a

1of the State Commission or the Department of Revenue, at all
2times during business hours of the day. Any person who violates
3any provision of this paragraph or any rule of the State
4Commission for the administration and enforcement of the
5provisions of this paragraph is guilty of a Class C
6misdemeanor. In case of a continuing violation, each day's
7continuance thereof shall be a separate and distinct offense.
8    The State Commission shall adopt rules as soon as
9practicable to implement the requirements of Public Act 99-904
10and shall adopt rules prohibiting any such third-party
11appointment of a third-party provider, except for a common
12carrier, that has been deemed by the State Commission to have
13violated the provisions of this Act with regard to any winery
14shipper licensee.
15    A winery shipper licensee must pay to the Department of
16Revenue the State liquor gallonage tax under Section 8-1 for
17all wine that is sold by the licensee and shipped to a person
18in this State. For the purposes of Section 8-1, a winery
19shipper licensee shall be taxed in the same manner as a
20manufacturer of wine. A licensee who is not otherwise required
21to register under the Retailers' Occupation Tax Act must
22register under the Use Tax Act to collect and remit use tax to
23the Department of Revenue for all gallons of wine that are sold
24by the licensee and shipped to persons in this State. If a
25licensee fails to remit the tax imposed under this Act in
26accordance with the provisions of Article VIII of this Act, the

 

 

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1winery shipper's license shall be revoked in accordance with
2the provisions of Article VII of this Act. If a licensee fails
3to properly register and remit tax under the Use Tax Act or the
4Retailers' Occupation Tax Act for all wine that is sold by the
5winery shipper and shipped to persons in this State, the winery
6shipper's license shall be revoked in accordance with the
7provisions of Article VII of this Act.
8    A winery shipper licensee must collect, maintain, and
9submit to the Commission on a semi-annual basis the total
10number of cases per resident of wine shipped to residents of
11this State. A winery shipper licensed under this subsection (r)
12must comply with the requirements of Section 6-29 of this Act.
13    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
14Section 3-12, the State Commission may receive, respond to, and
15investigate any complaint and impose any of the remedies
16specified in paragraph (1) of subsection (a) of Section 3-12.
17    As used in this subsection, "third-party provider" means
18any entity that provides fulfillment house services, including
19warehousing, packaging, distribution, order processing, or
20shipment of wine, but not the sale of wine, on behalf of a
21licensed winery shipper.
22    (s) A craft distiller tasting permit license shall allow an
23Illinois licensed craft distiller to transfer a portion of its
24alcoholic liquor inventory from its craft distiller licensed
25premises to the premises specified in the license hereby
26created and to conduct a sampling, only in the premises

 

 

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1specified in the license hereby created, of the transferred
2alcoholic liquor in accordance with subsection (c) of Section
36-31 of this Act. The transferred alcoholic liquor may not be
4sold or resold in any form. An applicant for the craft
5distiller tasting permit license must also submit with the
6application proof satisfactory to the State Commission that the
7applicant will provide dram shop liability insurance to the
8maximum limits and have local authority approval.
9(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
1099-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
111-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17.)
 
12    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
13    Sec. 6-4. (a) No person licensed by any licensing authority
14as a distiller, or a wine manufacturer, or any subsidiary or
15affiliate thereof, or any officer, associate, member, partner,
16representative, employee, agent or shareholder owning more
17than 5% of the outstanding shares of such person shall be
18issued an importing distributor's or distributor's license,
19nor shall any person licensed by any licensing authority as an
20importing distributor, distributor or retailer, or any
21subsidiary or affiliate thereof, or any officer or associate,
22member, partner, representative, employee, agent or
23shareholder owning more than 5% of the outstanding shares of
24such person be issued a distiller's license, a craft
25distiller's license, or a wine manufacturer's license; and no

 

 

10000HB4897ham002- 42 -LRB100 18877 SMS 39177 a

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

 

 

10000HB4897ham002- 43 -LRB100 18877 SMS 39177 a

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

 

 

10000HB4897ham002- 44 -LRB100 18877 SMS 39177 a

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

 

 

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

 

 

10000HB4897ham002- 46 -LRB100 18877 SMS 39177 a

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

 

 

10000HB4897ham002- 47 -LRB100 18877 SMS 39177 a

1commission prior to consideration by the State Commission of
2that person's application for a retail license. It is further
3provided that the State Commission may approve the person's
4application for a retail license or renewals of such license if
5such person continues to diligently adhere to all
6representations made in writing to the State Commission on or
7before February 18, 2015, or thereafter, or in the affidavit
8filed by that person with the State Commission to support the
9issuance of a retail license and to abide by all applicable
10laws and duly adopted rules.
11(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
1299-642, eff. 7-28-16; 99-902, eff. 8-26-16; 100-201, eff.
138-18-17.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.".