Full Text of SB1927 102nd General Assembly
SB1927 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB1927 Introduced 2/26/2021, by Sen. Rachelle Crowe SYNOPSIS AS INTRODUCED: |
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Amends the Liquor Control Act of 1934. Provides that a person licensed to make wine under the laws of another state who has a winery shipper's license and annually produces less than 250,000 gallons (instead of 25,000 gallons) of wine or a person who has a first-class or second-class wine manufacturer's license, a first-class or second-class wine-maker's license, or a limited wine manufacturer's license and annually produces less than 250,000 gallons (instead of 25,000 gallons) of wine may make application to the State Commission for a self-distribution exemption to allow the sale of not more than 50,000 gallons (instead of 5,000 gallons) of the exemption holder's wine to retail licensees per year. Makes conforming changes. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning liquor.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Liquor Control Act of 1934 is amended by | 5 | | changing Section 3-12 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, | 9 | | functions, 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
| 17 | | lessees of sleeping, dining and cafe cars, airplanes, | 18 | | boats, brokers, and wine
maker's premises licensees in | 19 | | accordance with the provisions of this Act, and
to suspend | 20 | | or revoke such licenses upon the State Commission's | 21 | | determination,
upon notice after hearing, that a licensee | 22 | | has violated any provision of this
Act or any rule or | 23 | | regulation issued pursuant thereto and in effect for 30 |
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| 1 | | days
prior to such violation. Except in the case of an | 2 | | action taken pursuant to a
violation of Section 6-3, 6-5, | 3 | | or 6-9, any action by the State Commission to
suspend or | 4 | | revoke a licensee's license may be limited to the license | 5 | | for the
specific premises where the violation occurred.
An | 6 | | action for a violation of this Act shall be commenced by | 7 | | the State Commission within 2 years after the date the | 8 | | State Commission becomes aware of the violation.
| 9 | | In lieu of suspending or revoking a license, the | 10 | | commission may impose
a fine, upon the State Commission's | 11 | | determination and notice after hearing,
that a licensee | 12 | | has violated any provision of this Act or any rule or
| 13 | | regulation issued pursuant thereto and in effect for 30 | 14 | | days prior to such
violation. | 15 | | For the purpose of this paragraph (1), when | 16 | | determining multiple violations for the sale of alcohol to | 17 | | a person under the age of 21, a second or subsequent | 18 | | violation for the sale of alcohol to a person under the age | 19 | | of 21 shall only be considered if it was committed within 5 | 20 | | years after the date when a prior violation for the sale of | 21 | | alcohol to a person under the age of 21 was committed. | 22 | | The fine imposed under this paragraph may not exceed | 23 | | $500 for each
violation. Each day that the activity, which | 24 | | gave rise to the original fine,
continues is a separate | 25 | | violation. The maximum fine that may be levied against
any | 26 | | licensee, for the period of the license, shall not exceed |
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| 1 | | $20,000.
The maximum penalty that may be imposed on a | 2 | | licensee for selling a bottle of
alcoholic liquor with a | 3 | | foreign object in it or serving from a bottle of
alcoholic | 4 | | liquor with a foreign object in it shall be the | 5 | | destruction of that
bottle of alcoholic liquor for the | 6 | | first 10 bottles so sold or served from by
the licensee. | 7 | | For the eleventh bottle of alcoholic liquor and for each | 8 | | third
bottle thereafter sold or served from by the | 9 | | licensee with a foreign object in
it, the maximum penalty | 10 | | that may be imposed on the licensee is the destruction
of | 11 | | the bottle of alcoholic liquor and a fine of up to $50.
| 12 | | Any notice issued by the State Commission to a | 13 | | licensee for a violation of this Act or any notice with | 14 | | respect to settlement or offer in compromise shall include | 15 | | the field report, photographs, and any other supporting | 16 | | documentation necessary to reasonably inform the licensee | 17 | | of the nature and extent of the violation or the conduct | 18 | | alleged to have occurred. The failure to include such | 19 | | required documentation shall result in the dismissal of | 20 | | the action. | 21 | | (2) To adopt such rules and regulations consistent | 22 | | with the
provisions of this Act which shall be necessary | 23 | | to carry on its
functions and duties to the end that the | 24 | | health, safety and welfare of
the People of the State of | 25 | | Illinois shall be protected and temperance in
the | 26 | | consumption of alcoholic liquors shall be fostered and |
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| 1 | | promoted and
to distribute copies of such rules and | 2 | | regulations to all licensees
affected thereby.
| 3 | | (3) To call upon other administrative departments of | 4 | | the State,
county and municipal governments, county and | 5 | | city police departments and
upon prosecuting officers for | 6 | | such information and assistance as it
deems necessary in | 7 | | the performance of its duties.
| 8 | | (4) To recommend to local commissioners rules and | 9 | | regulations, not
inconsistent with the law, for the | 10 | | distribution and sale of alcoholic
liquors throughout the | 11 | | State.
| 12 | | (5) To inspect, or cause to be inspected, any
premises | 13 | | in this State
where alcoholic liquors are manufactured, | 14 | | distributed, warehoused, or
sold. Nothing in this Act
| 15 | | authorizes an agent of the State Commission to inspect | 16 | | private
areas within the premises without reasonable | 17 | | suspicion or a warrant
during an inspection. "Private | 18 | | areas" include, but are not limited to, safes, personal | 19 | | property, and closed desks.
| 20 | | (5.1) Upon receipt of a complaint or upon having | 21 | | knowledge that any person
is engaged in business as a | 22 | | manufacturer, importing distributor, distributor,
or | 23 | | retailer without a license or valid license, to conduct an | 24 | | investigation. If, after conducting an investigation, the | 25 | | State Commission is satisfied that the alleged conduct | 26 | | occurred or is occurring, it may issue a cease and desist |
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| 1 | | notice as provided in this Act, impose civil penalties as | 2 | | provided in this Act, notify the local liquor
authority, | 3 | | or file a complaint with the State's Attorney's Office of | 4 | | the county
where the incident occurred or the Attorney | 5 | | General.
| 6 | | (5.2) Upon receipt of a complaint or upon having | 7 | | knowledge that any person is shipping alcoholic
liquor
| 8 | | into this State from a point outside of this State if the | 9 | | shipment is in
violation of this Act, to conduct an | 10 | | investigation. If, after conducting an investigation, the | 11 | | State Commission is satisfied that the alleged conduct | 12 | | occurred or is occurring, it may issue a cease and desist | 13 | | notice as provided in this Act, impose civil penalties as | 14 | | provided in this Act, notify the foreign jurisdiction, or | 15 | | file a complaint with the State's Attorney's Office of the | 16 | | county where the incident occurred or the Attorney | 17 | | General.
| 18 | | (5.3) To receive complaints from licensees, local | 19 | | officials, law
enforcement agencies, organizations, and | 20 | | persons stating that any licensee has
been or is violating | 21 | | any provision of this Act or the rules and regulations
| 22 | | issued pursuant to this Act. Such complaints shall be in | 23 | | writing, signed and
sworn to by the person making the | 24 | | complaint, and shall state with specificity
the facts in | 25 | | relation to the alleged violation. If the State Commission | 26 | | has
reasonable grounds to believe that the complaint |
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| 1 | | substantially alleges a
violation of this Act or rules and | 2 | | regulations adopted pursuant to this Act, it
shall conduct | 3 | | an investigation. If, after conducting an investigation, | 4 | | the
State Commission is satisfied that the alleged | 5 | | violation did occur, it shall proceed
with disciplinary | 6 | | action against the licensee as provided in this Act.
| 7 | | (5.4) To make arrests and issue notices of civil | 8 | | violations where necessary for the enforcement of this | 9 | | Act. | 10 | | (5.5) To investigate any and all unlicensed activity. | 11 | | (5.6) To impose civil penalties or fines to any person | 12 | | who, without holding a valid license, engages in conduct | 13 | | that requires a license pursuant to this Act, in an amount | 14 | | not to exceed $20,000 for each offense as determined by | 15 | | the State Commission. A civil penalty shall be assessed by | 16 | | the State Commission after a hearing is held in accordance | 17 | | with the provisions set forth in this Act regarding the | 18 | | provision of a hearing for the revocation or suspension of | 19 | | a license. | 20 | | (6) To hear and determine appeals from orders of a | 21 | | local commission
in accordance with the provisions of this | 22 | | Act, as hereinafter set forth.
Hearings under this | 23 | | subsection shall be held in Springfield or Chicago,
at | 24 | | whichever location is the more convenient for the majority | 25 | | of persons
who are parties to the hearing.
| 26 | | (7) The State Commission shall establish uniform |
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| 1 | | systems of accounts to be
kept by all retail licensees | 2 | | having more than 4 employees, and for this
purpose the | 3 | | State Commission may classify all retail licensees having | 4 | | more
than 4 employees and establish a uniform system of | 5 | | accounts for each
class and prescribe the manner in which | 6 | | such accounts shall be kept.
The State Commission may also | 7 | | prescribe the forms of accounts to be kept by
all retail | 8 | | licensees having more than 4 employees, including , but not
| 9 | | limited to , accounts of earnings and expenses and any | 10 | | distribution,
payment, or other distribution of earnings | 11 | | or assets, and any other
forms, records , and memoranda | 12 | | which in the judgment of the commission may
be necessary | 13 | | or appropriate to carry out any of the provisions of this
| 14 | | Act, including , but not limited to , such forms, records , | 15 | | and memoranda as
will readily and accurately disclose at | 16 | | all times the beneficial
ownership of such retail licensed | 17 | | business. The accounts, forms,
records , and memoranda | 18 | | shall be available at all reasonable times for
inspection | 19 | | by authorized representatives of the State Commission or | 20 | | by
any local liquor control commissioner or his or her | 21 | | authorized representative.
The commission , may, from time | 22 | | to time, alter, amend , or repeal, in whole
or in part, any | 23 | | uniform system of accounts, or the form and manner of
| 24 | | keeping accounts.
| 25 | | (8) In the conduct of any hearing authorized to be | 26 | | held by the State Commission, to appoint, at the |
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| 1 | | commission's discretion, hearing officers
to conduct | 2 | | hearings involving complex issues or issues that will | 3 | | require a
protracted period of time to resolve, to | 4 | | examine, or cause to be examined,
under oath, any | 5 | | licensee, and to examine or cause to be examined the books | 6 | | and
records
of such licensee; to hear testimony and take | 7 | | proof material for its
information in the discharge of its | 8 | | duties hereunder; to administer or
cause to be | 9 | | administered oaths; for any such purpose to issue
subpoena | 10 | | or subpoenas to require the attendance of witnesses and | 11 | | the
production of books, which shall be effective in any | 12 | | part of this State, and
to adopt rules to implement its | 13 | | powers under this paragraph (8).
| 14 | | Any circuit court may , by order duly entered,
require | 15 | | the attendance of witnesses and the production of relevant | 16 | | books
subpoenaed by the State Commission and the court may | 17 | | compel
obedience to its order by proceedings for contempt.
| 18 | | (9) To investigate the administration of laws in | 19 | | relation to
alcoholic liquors in this and other states and | 20 | | any foreign countries,
and to recommend from time to time | 21 | | to the Governor and through him or
her to the legislature | 22 | | of this State, such amendments to this Act, if any, as
it | 23 | | may think desirable and as will serve to further the | 24 | | general broad
purposes contained in Section 1-2 hereof.
| 25 | | (10) To adopt such rules and regulations consistent | 26 | | with the
provisions of this Act which shall be necessary |
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| 1 | | for the control, sale , or
disposition of alcoholic liquor | 2 | | damaged as a result of an accident, wreck,
flood, fire , or | 3 | | other similar occurrence.
| 4 | | (11) To develop industry educational programs related | 5 | | to responsible
serving and selling, particularly in the | 6 | | areas of overserving consumers and
illegal underage | 7 | | purchasing and consumption of alcoholic beverages.
| 8 | | (11.1) To license persons providing education and | 9 | | training to alcohol
beverage sellers and servers for | 10 | | mandatory and non-mandatory training under the
Beverage | 11 | | Alcohol Sellers and Servers
Education and Training | 12 | | (BASSET) programs and to develop and administer a public
| 13 | | awareness program in Illinois to reduce or eliminate the | 14 | | illegal purchase and
consumption of alcoholic beverage | 15 | | products by persons under the age of 21.
Application for a | 16 | | license shall be made on forms provided by the State
| 17 | | Commission.
| 18 | | (12) To develop and maintain a repository of license | 19 | | and regulatory
information.
| 20 | | (13) (Blank).
| 21 | | (14) On or before April 30, 2008 and every 2 years
| 22 | | thereafter, the State Commission shall present a written
| 23 | | report to the Governor and the General Assembly that shall
| 24 | | be based on a study of the impact of Public Act 95-634 on | 25 | | the business of soliciting,
selling, and shipping wine | 26 | | from inside and outside of this
State directly to |
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| 1 | | residents of this State. As part of its
report, the State | 2 | | Commission shall provide all of the
following information: | 3 | | (A) The amount of State excise and sales tax
| 4 | | revenues generated. | 5 | | (B) The amount of licensing fees received. | 6 | | (C) The number of cases of wine shipped from | 7 | | inside
and outside of this State directly to residents | 8 | | of this
State. | 9 | | (D) The number of alcohol compliance operations
| 10 | | conducted. | 11 | | (E) The number of winery shipper's licenses
| 12 | | issued. | 13 | | (F) The number of each of the following: reported
| 14 | | violations; cease and desist notices issued by the
| 15 | | Commission; notices of violations issued by
the | 16 | | Commission and to the Department of Revenue;
and | 17 | | notices and complaints of violations to law
| 18 | | enforcement officials, including, without limitation,
| 19 | | the Illinois Attorney General and the U.S. Department
| 20 | | of Treasury's Alcohol and Tobacco Tax and Trade | 21 | | Bureau. | 22 | | (15) As a means to reduce the underage consumption of
| 23 | | alcoholic liquors, the State Commission shall conduct
| 24 | | alcohol compliance operations to investigate whether
| 25 | | businesses that are soliciting, selling, and shipping wine
| 26 | | from inside or outside of this State directly to residents
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| 1 | | of this State are licensed by this State or are selling or
| 2 | | attempting to sell wine to persons under 21 years of age in
| 3 | | violation of this Act. | 4 | | (16) The State Commission shall, in addition to
| 5 | | notifying any appropriate law enforcement agency, submit
| 6 | | notices of complaints or violations of Sections 6-29 and
| 7 | | 6-29.1 by persons who do not hold a winery shipper's
| 8 | | license under this Act to the Illinois Attorney General | 9 | | and
to the U.S. Department of Treasury's Alcohol and | 10 | | Tobacco Tax and Trade Bureau. | 11 | | (17)(A) A person licensed to make wine under the laws | 12 | | of another state who has a winery shipper's license under | 13 | | this Act and annually produces less than 250,000 25,000 | 14 | | gallons of wine or a person who has a first-class or | 15 | | second-class wine manufacturer's license, a first-class or | 16 | | second-class wine-maker's license, or a limited wine | 17 | | manufacturer's license under this Act and annually | 18 | | produces less than 250,000 25,000 gallons of wine may make | 19 | | application to the State Commission for a | 20 | | self-distribution exemption to allow the sale of not more | 21 | | than 50,000 5,000 gallons of the exemption holder's wine | 22 | | to retail licensees per year. | 23 | | (B) In the application, which shall be sworn under | 24 | | penalty of perjury, such person shall state (1) the date | 25 | | it was established; (2) its volume of production and sales | 26 | | for each year since its establishment; (3) its efforts to |
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| 1 | | establish distributor relationships; (4) that a | 2 | | self-distribution exemption is necessary to facilitate the | 3 | | marketing of its wine; and (5) that it will comply with the | 4 | | liquor and revenue laws of the United States, this State, | 5 | | and any other state where it is licensed. | 6 | | (C) The State Commission shall approve the application | 7 | | for a self-distribution exemption if such person: (1) is | 8 | | in compliance with State revenue and liquor laws; (2) is | 9 | | not a member of any affiliated group that produces more | 10 | | than 250,000 25,000 gallons of wine per annum or produces | 11 | | any other alcoholic liquor; (3) will not annually produce | 12 | | for sale more than 250,000 25,000 gallons of wine; and (4) | 13 | | will not annually sell more than 50,000 5,000 gallons of | 14 | | its wine to retail licensees. | 15 | | (D) A self-distribution exemption holder shall | 16 | | annually certify to the State Commission its production of | 17 | | wine in the previous 12 months and its anticipated | 18 | | production and sales for the next 12 months. The State | 19 | | Commission may fine, suspend, or revoke a | 20 | | self-distribution exemption after a hearing if it finds | 21 | | that the exemption holder has made a material | 22 | | misrepresentation in its application, violated a revenue | 23 | | or liquor law of Illinois, exceeded production of 250,000 | 24 | | 25,000 gallons of wine in any calendar year, or become | 25 | | part of an affiliated group producing more than 250,000 | 26 | | 25,000 gallons of wine or any other alcoholic liquor. |
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| 1 | | (E) Except in hearings for violations of this Act or | 2 | | Public Act 95-634 or a bona fide investigation by duly | 3 | | sworn law enforcement officials, the State Commission, or | 4 | | its agents, the State Commission shall maintain the | 5 | | production and sales information of a self-distribution | 6 | | exemption holder as confidential and shall not release | 7 | | such information to any person. | 8 | | (F) The State Commission shall issue regulations | 9 | | governing self-distribution exemptions consistent with | 10 | | this Section and this Act. | 11 | | (G) Nothing in this paragraph (17) shall prohibit a | 12 | | self-distribution exemption holder from entering into or | 13 | | simultaneously having a distribution agreement with a | 14 | | licensed Illinois distributor. | 15 | | (H) It is the intent of this paragraph (17) to promote | 16 | | and continue orderly markets. The General Assembly finds | 17 | | that , in order to preserve Illinois' regulatory | 18 | | distribution system , it is necessary to create an | 19 | | exception for smaller makers of wine as their wines are | 20 | | frequently adjusted in varietals, mixes, vintages, and | 21 | | taste to find and create market niches sometimes too small | 22 | | for distributor or importing distributor business | 23 | | strategies. Limited self-distribution rights will afford | 24 | | and allow smaller makers of wine access to the marketplace | 25 | | in order to develop a customer base without impairing the | 26 | | integrity of the 3-tier system.
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| 1 | | (18)(A) A class 1 brewer licensee, who must also be | 2 | | either a licensed brewer or licensed non-resident dealer | 3 | | and annually manufacture less than 930,000 gallons of | 4 | | beer, may make application to the State Commission for a | 5 | | self-distribution exemption to allow the sale of not more | 6 | | than 232,500 gallons of the exemption holder's beer per | 7 | | year to retail licensees and to brewers, class 1 brewers, | 8 | | and class 2 brewers that, pursuant to subsection (e) of | 9 | | Section 6-4 of this Act, sell beer, cider, or both beer and | 10 | | cider to non-licensees at their breweries. | 11 | | (B) In the application, which shall be sworn under | 12 | | penalty of perjury, the class 1 brewer licensee shall | 13 | | state (1) the date it was established; (2) its volume of | 14 | | beer manufactured and sold for each year since its | 15 | | establishment; (3) its efforts to establish distributor | 16 | | relationships; (4) that a self-distribution exemption is | 17 | | necessary to facilitate the marketing of its beer; and (5) | 18 | | that it will comply with the alcoholic beverage and | 19 | | revenue laws of the United States, this State, and any | 20 | | other state where it is licensed. | 21 | | (C) Any application submitted shall be posted on the | 22 | | State Commission's website at least 45 days prior to | 23 | | action by the State Commission. The State Commission shall | 24 | | approve the application for a self-distribution exemption | 25 | | if the class 1 brewer licensee: (1) is in compliance with | 26 | | the State, revenue, and alcoholic beverage laws; (2) is |
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| 1 | | not a member of any affiliated group that manufactures | 2 | | more than 930,000 gallons of beer per annum or produces | 3 | | any other alcoholic beverages; (3) shall not annually | 4 | | manufacture for sale more than 930,000 gallons of beer; | 5 | | (4) shall not annually sell more than 232,500 gallons of | 6 | | its beer to retail licensees or to brewers, class 1 | 7 | | brewers, and class 2 brewers that, pursuant to subsection | 8 | | (e) of Section 6-4 of this Act, sell beer, cider, or both | 9 | | beer and cider to non-licensees at their breweries; and | 10 | | (5) has relinquished any brew pub license held by the | 11 | | licensee, including any ownership interest it held in the | 12 | | licensed brew pub. | 13 | | (D) A self-distribution exemption holder shall | 14 | | annually certify to the State Commission its manufacture | 15 | | of beer during the previous 12 months and its anticipated | 16 | | manufacture and sales of beer for the next 12 months. The | 17 | | State Commission may fine, suspend, or revoke a | 18 | | self-distribution exemption after a hearing if it finds | 19 | | that the exemption holder has made a material | 20 | | misrepresentation in its application, violated a revenue | 21 | | or alcoholic beverage law of Illinois, exceeded the | 22 | | manufacture of 930,000 gallons of beer in any calendar | 23 | | year or became part of an affiliated group manufacturing | 24 | | more than 930,000 gallons of beer or any other alcoholic | 25 | | beverage. | 26 | | (E) The State Commission shall issue rules and |
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| 1 | | regulations governing self-distribution exemptions | 2 | | consistent with this Act. | 3 | | (F) Nothing in this paragraph (18) shall prohibit a | 4 | | self-distribution exemption holder from entering into or | 5 | | simultaneously having a distribution agreement with a | 6 | | licensed Illinois importing distributor or a distributor. | 7 | | If a self-distribution exemption holder enters into a | 8 | | distribution agreement and has assigned distribution | 9 | | rights to an importing distributor or distributor, then | 10 | | the self-distribution exemption holder's distribution | 11 | | rights in the assigned territories shall cease in a | 12 | | reasonable time not to exceed 60 days. | 13 | | (G) It is the intent of this paragraph (18) to promote | 14 | | and continue orderly markets. The General Assembly finds | 15 | | that in order to preserve Illinois' regulatory | 16 | | distribution system, it is necessary to create an | 17 | | exception for smaller manufacturers in order to afford and | 18 | | allow such smaller manufacturers of beer access to the | 19 | | marketplace in order to develop a customer base without | 20 | | impairing the integrity of the 3-tier system. | 21 | | (19)(A) A class 1 craft distiller licensee or a | 22 | | non-resident dealer who manufactures less than 50,000 | 23 | | gallons of distilled spirits per year may make application | 24 | | to the State Commission for a self-distribution exemption | 25 | | to allow the sale of not more
than 5,000 gallons of the | 26 | | exemption holder's spirits to retail licensees per year. |
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| 1 | | (B) In the application, which shall be sworn under | 2 | | penalty of perjury, the class 1 craft distiller licensee | 3 | | or non-resident dealer shall state (1) the date it was | 4 | | established; (2) its volume of spirits manufactured and | 5 | | sold for each year since its establishment; (3) its | 6 | | efforts to establish distributor relationships; (4) that a | 7 | | self-distribution exemption is necessary to facilitate the | 8 | | marketing of its spirits; and (5) that it will comply with | 9 | | the alcoholic beverage and revenue laws of the United | 10 | | States, this State, and any other state where it is | 11 | | licensed. | 12 | | (C) Any application submitted shall be posted on the | 13 | | State Commission's website at least 45 days prior to | 14 | | action by the State Commission. The State Commission shall | 15 | | approve the application for a self-distribution exemption | 16 | | if the applicant: (1) is in compliance with State revenue | 17 | | and alcoholic beverage laws; (2) is not a member of any | 18 | | affiliated group that produces more than 50,000 gallons of | 19 | | spirits per annum or produces any other alcoholic liquor; | 20 | | (3) does not annually manufacture for sale more than | 21 | | 50,000 gallons of spirits; and (4) does not annually sell | 22 | | more than 5,000 gallons of its spirits to retail | 23 | | licensees. | 24 | | (D) A self-distribution exemption holder shall | 25 | | annually certify to the State Commission its manufacture | 26 | | of spirits during the previous 12 months and its |
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| 1 | | anticipated manufacture and sales of spirits for the next | 2 | | 12 months. The State Commission may fine, suspend, or | 3 | | revoke a self-distribution exemption after a hearing if it | 4 | | finds that the exemption holder has made a material | 5 | | misrepresentation in its application, violated a revenue | 6 | | or alcoholic beverage law of Illinois, exceeded the | 7 | | manufacture of 50,000 gallons of spirits in any calendar | 8 | | year, or has become part of an affiliated group | 9 | | manufacturing more than 50,000 gallons of spirits or any | 10 | | other alcoholic beverage. | 11 | | (E) The State Commission shall adopt rules governing | 12 | | self-distribution exemptions consistent with this Act. | 13 | | (F) Nothing in this paragraph (19) shall prohibit a | 14 | | self-distribution exemption holder from entering into or | 15 | | simultaneously having a distribution agreement with a | 16 | | licensed Illinois importing distributor or a distributor. | 17 | | (G) It is the intent of this paragraph (19) to promote | 18 | | and continue orderly markets. The General Assembly finds | 19 | | that in order to preserve Illinois' regulatory | 20 | | distribution system, it is necessary to create an | 21 | | exception for smaller manufacturers in order to afford and | 22 | | allow such smaller manufacturers of spirits access to the | 23 | | marketplace in order to develop a customer base without | 24 | | impairing the
integrity of the 3-tier system. | 25 | | (b) On or before April 30, 1999, the Commission shall | 26 | | present a written
report to the Governor and the General |
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| 1 | | Assembly that shall be based on a study
of the impact of Public | 2 | | Act 90-739 on the business of soliciting,
selling, and | 3 | | shipping
alcoholic liquor from outside of this State directly | 4 | | to residents of this
State.
| 5 | | As part of its report, the Commission shall provide the | 6 | | following
information:
| 7 | | (i) the amount of State excise and sales tax revenues | 8 | | generated as a
result of Public Act 90-739;
| 9 | | (ii) the amount of licensing fees received as a result | 10 | | of Public Act 90-739;
| 11 | | (iii) the number of reported violations, the number of | 12 | | cease and desist
notices issued by the Commission, the | 13 | | number of notices of violations issued
to the Department | 14 | | of Revenue, and the number of notices and complaints of
| 15 | | violations to law enforcement officials.
| 16 | | (Source: P.A. 100-134, eff. 8-18-17; 100-201, eff. 8-18-17; | 17 | | 100-816, eff. 8-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. | 18 | | 8-23-18; 101-37, eff. 7-3-19; 101-81, eff. 7-12-19; 101-482, | 19 | | eff. 8-23-19; revised 9-20-19.)
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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