Public Act 099-0904
 
SB2989 EnrolledLRB099 20595 RPS 45155 b

    AN ACT concerning liquor.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Liquor Control Act of 1934 is amended by
changing Sections 5-1, 5-3, 6-29.1, and 10-1 as follows:
 
    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
    Sec. 5-1. Licenses issued by the Illinois Liquor Control
Commission shall be of the following classes:
    (a) Manufacturer's license - Class 1. Distiller, Class 2.
Rectifier, Class 3. Brewer, Class 4. First Class Wine
Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
First Class Winemaker, Class 7. Second Class Winemaker, Class
8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
10. Class 1 Brewer, Class 11. Class 2 Brewer,
    (b) Distributor's license,
    (c) Importing Distributor's license,
    (d) Retailer's license,
    (e) Special Event Retailer's license (not-for-profit),
    (f) Railroad license,
    (g) Boat license,
    (h) Non-Beverage User's license,
    (i) Wine-maker's premises license,
    (j) Airplane license,
    (k) Foreign importer's license,
    (l) Broker's license,
    (m) Non-resident dealer's license,
    (n) Brew Pub license,
    (o) Auction liquor license,
    (p) Caterer retailer license,
    (q) Special use permit license,
    (r) Winery shipper's license.
    No person, firm, partnership, corporation, or other legal
business entity that is engaged in the manufacturing of wine
may concurrently obtain and hold a wine-maker's license and a
wine manufacturer's license.
    (a) A manufacturer's license shall allow the manufacture,
importation in bulk, storage, distribution and sale of
alcoholic liquor to persons without the State, as may be
permitted by law and to licensees in this State as follows:
    Class 1. A Distiller may make sales and deliveries of
alcoholic liquor to distillers, rectifiers, importing
distributors, distributors and non-beverage users and to no
other licensees.
    Class 2. A Rectifier, who is not a distiller, as defined
herein, may make sales and deliveries of alcoholic liquor to
rectifiers, importing distributors, distributors, retailers
and non-beverage users and to no other licensees.
    Class 3. A Brewer may make sales and deliveries of beer to
importing distributors and distributors and may make sales as
authorized under subsection (e) of Section 6-4 of this Act.
    Class 4. A first class wine-manufacturer may make sales and
deliveries of up to 50,000 gallons of wine to manufacturers,
importing distributors and distributors, and to no other
licensees.
    Class 5. A second class Wine manufacturer may make sales
and deliveries of more than 50,000 gallons of wine to
manufacturers, importing distributors and distributors and to
no other licensees.
    Class 6. A first-class wine-maker's license shall allow the
manufacture of up to 50,000 gallons of wine per year, and the
storage and sale of such wine to distributors in the State and
to persons without the State, as may be permitted by law. A
person who, prior to June 1, 2008 (the effective date of Public
Act 95-634) this amendatory Act of the 95th General Assembly,
is a holder of a first-class wine-maker's license and annually
produces more than 25,000 gallons of its own wine and who
distributes its wine to licensed retailers shall cease this
practice on or before July 1, 2008 in compliance with Public
Act 95-634 this amendatory Act of the 95th General Assembly.
    Class 7. A second-class wine-maker's license shall allow
the manufacture of between 50,000 and 150,000 gallons of wine
per year, and the storage and sale of such wine to distributors
in this State and to persons without the State, as may be
permitted by law. A person who, prior to June 1, 2008 (the
effective date of Public Act 95-634) this amendatory Act of the
95th General Assembly, is a holder of a second-class
wine-maker's license and annually produces more than 25,000
gallons of its own wine and who distributes its wine to
licensed retailers shall cease this practice on or before July
1, 2008 in compliance with Public Act 95-634 this amendatory
Act of the 95th General Assembly.
    Class 8. A limited wine-manufacturer may make sales and
deliveries not to exceed 40,000 gallons of wine per year to
distributors, and to non-licensees in accordance with the
provisions of this Act.
    Class 9. A craft distiller license shall allow the
manufacture of up to 30,000 gallons of spirits by distillation
for one year after March 1, 2013 (the effective date of Public
Act 97-1166) this amendatory Act of the 97th General Assembly
and up to 35,000 gallons of spirits by distillation per year
thereafter and the storage of such spirits. If a craft
distiller licensee is not affiliated with any other
manufacturer, then the craft distiller licensee may sell such
spirits to distributors in this State and up to 2,500 gallons
of such spirits to non-licensees to the extent permitted by any
exemption approved by the Commission pursuant to Section 6-4 of
this Act.
    Any craft distiller licensed under this Act who on July 28,
2010 (the effective date of Public Act 96-1367) this amendatory
Act of the 96th General Assembly was licensed as a distiller
and manufactured no more spirits than permitted by this Section
shall not be required to pay the initial licensing fee.
    Class 10. A class 1 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 930,000 gallons of beer
per year provided that the class 1 brewer licensee does not
manufacture more than a combined 930,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 930,000
gallons of beer per year or any other alcoholic liquor. A class
1 brewer licensee may make sales and deliveries to importing
distributors and distributors and to retail licensees in
accordance with the conditions set forth in paragraph (18) of
subsection (a) of Section 3-12 of this Act.
    Class 11. A class 2 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 3,720,000 gallons of beer
per year provided that the class 2 brewer licensee does not
manufacture more than a combined 3,720,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 3,720,000
gallons of beer per year or any other alcoholic liquor. A class
2 brewer licensee may make sales and deliveries to importing
distributors and distributors, but shall not make sales or
deliveries to any other licensee. If the State Commission
provides prior approval, a class 2 brewer licensee may annually
transfer up to 3,720,000 gallons of beer manufactured by that
class 2 brewer licensee to the premises of a licensed class 2
brewer wholly owned and operated by the same licensee.
    (a-1) A manufacturer which is licensed in this State to
make sales or deliveries of alcoholic liquor to licensed
distributors or importing distributors and which enlists
agents, representatives, or individuals acting on its behalf
who contact licensed retailers on a regular and continual basis
in this State must register those agents, representatives, or
persons acting on its behalf with the State Commission.
    Registration of agents, representatives, or persons acting
on behalf of a manufacturer is fulfilled by submitting a form
to the Commission. The form shall be developed by the
Commission and shall include the name and address of the
applicant, the name and address of the manufacturer he or she
represents, the territory or areas assigned to sell to or
discuss pricing terms of alcoholic liquor, and any other
questions deemed appropriate and necessary. All statements in
the forms required to be made by law or by rule shall be deemed
material, and any person who knowingly misstates any material
fact under oath in an application is guilty of a Class B
misdemeanor. Fraud, misrepresentation, false statements,
misleading statements, evasions, or suppression of material
facts in the securing of a registration are grounds for
suspension or revocation of the registration. The State
Commission shall post a list of registered agents on the
Commission's website.
    (b) A distributor's license shall allow the wholesale
purchase and storage of alcoholic liquors and sale of alcoholic
liquors to licensees in this State and to persons without the
State, as may be permitted by law.
    (c) An importing distributor's license may be issued to and
held by those only who are duly licensed distributors, upon the
filing of an application by a duly licensed distributor, with
the Commission and the Commission shall, without the payment of
any fee, immediately issue such importing distributor's
license to the applicant, which shall allow the importation of
alcoholic liquor by the licensee into this State from any point
in the United States outside this State, and the purchase of
alcoholic liquor in barrels, casks or other bulk containers and
the bottling of such alcoholic liquors before resale thereof,
but all bottles or containers so filled shall be sealed,
labeled, stamped and otherwise made to comply with all
provisions, rules and regulations governing manufacturers in
the preparation and bottling of alcoholic liquors. The
importing distributor's license shall permit such licensee to
purchase alcoholic liquor from Illinois licensed non-resident
dealers and foreign importers only.
    (d) A retailer's license shall allow the licensee to sell
and offer for sale at retail, only in the premises specified in
the license, alcoholic liquor for use or consumption, but not
for resale in any form. Nothing in Public Act 95-634 this
amendatory Act of the 95th General Assembly shall deny, limit,
remove, or restrict the ability of a holder of a retailer's
license to transfer, deliver, or ship alcoholic liquor to the
purchaser for use or consumption subject to any applicable
local law or ordinance. Any retail license issued to a
manufacturer shall only permit the manufacturer to sell beer at
retail on the premises actually occupied by the manufacturer.
For the purpose of further describing the type of business
conducted at a retail licensed premises, a retailer's licensee
may be designated by the State Commission as (i) an on premise
consumption retailer, (ii) an off premise sale retailer, or
(iii) a combined on premise consumption and off premise sale
retailer.
    Notwithstanding any other provision of this subsection
(d), a retail licensee may sell alcoholic liquors to a special
event retailer licensee for resale to the extent permitted
under subsection (e).
    (e) A special event retailer's license (not-for-profit)
shall permit the licensee to purchase alcoholic liquors from an
Illinois licensed distributor (unless the licensee purchases
less than $500 of alcoholic liquors for the special event, in
which case the licensee may purchase the alcoholic liquors from
a licensed retailer) and shall allow the licensee to sell and
offer for sale, at retail, alcoholic liquors for use or
consumption, but not for resale in any form and only at the
location and on the specific dates designated for the special
event in the license. An applicant for a special event retailer
license must (i) furnish with the application: (A) a resale
number issued under Section 2c of the Retailers' Occupation Tax
Act or evidence that the applicant is registered under Section
2a of the Retailers' Occupation Tax Act, (B) a current, valid
exemption identification number issued under Section 1g of the
Retailers' Occupation Tax Act, and a certification to the
Commission that the purchase of alcoholic liquors will be a
tax-exempt purchase, or (C) a statement that the applicant is
not registered under Section 2a of the Retailers' Occupation
Tax Act, does not hold a resale number under Section 2c of the
Retailers' Occupation Tax Act, and does not hold an exemption
number under Section 1g of the Retailers' Occupation Tax Act,
in which event the Commission shall set forth on the special
event retailer's license a statement to that effect; (ii)
submit with the application proof satisfactory to the State
Commission that the applicant will provide dram shop liability
insurance in the maximum limits; and (iii) show proof
satisfactory to the State Commission that the applicant has
obtained local authority approval.
    (f) A railroad license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on a club, buffet, lounge or dining car
operated on an electric, gas or steam railway in this State;
and provided further, that railroad licensees exercising the
above powers shall be subject to all provisions of Article VIII
of this Act as applied to importing distributors. A railroad
license shall also permit the licensee to sell or dispense
alcoholic liquors on any club, buffet, lounge or dining car
operated on an electric, gas or steam railway regularly
operated by a common carrier in this State, but shall not
permit the sale for resale of any alcoholic liquors to any
licensee within this State. A license shall be obtained for
each car in which such sales are made.
    (g) A boat license shall allow the sale of alcoholic liquor
in individual drinks, on any passenger boat regularly operated
as a common carrier on navigable waters in this State or on any
riverboat operated under the Riverboat Gambling Act, which boat
or riverboat maintains a public dining room or restaurant
thereon.
    (h) A non-beverage user's license shall allow the licensee
to purchase alcoholic liquor from a licensed manufacturer or
importing distributor, without the imposition of any tax upon
the business of such licensed manufacturer or importing
distributor as to such alcoholic liquor to be used by such
licensee solely for the non-beverage purposes set forth in
subsection (a) of Section 8-1 of this Act, and such licenses
shall be divided and classified and shall permit the purchase,
possession and use of limited and stated quantities of
alcoholic liquor as follows:
Class 1, not to exceed ......................... 500 gallons
Class 2, not to exceed ....................... 1,000 gallons
Class 3, not to exceed ....................... 5,000 gallons
Class 4, not to exceed ...................... 10,000 gallons
Class 5, not to exceed ....................... 50,000 gallons
    (i) A wine-maker's premises license shall allow a licensee
that concurrently holds a first-class wine-maker's license to
sell and offer for sale at retail in the premises specified in
such license not more than 50,000 gallons of the first-class
wine-maker's wine that is made at the first-class wine-maker's
licensed premises per year for use or consumption, but not for
resale in any form. A wine-maker's premises license shall allow
a licensee who concurrently holds a second-class wine-maker's
license to sell and offer for sale at retail in the premises
specified in such license up to 100,000 gallons of the
second-class wine-maker's wine that is made at the second-class
wine-maker's licensed premises per year for use or consumption
but not for resale in any form. A wine-maker's premises license
shall allow a licensee that concurrently holds a first-class
wine-maker's license or a second-class wine-maker's license to
sell and offer for sale at retail at the premises specified in
the wine-maker's premises license, for use or consumption but
not for resale in any form, any beer, wine, and spirits
purchased from a licensed distributor. Upon approval from the
State Commission, a wine-maker's premises license shall allow
the licensee to sell and offer for sale at (i) the wine-maker's
licensed premises and (ii) at up to 2 additional locations for
use and consumption and not for resale. Each location shall
require additional licensing per location as specified in
Section 5-3 of this Act. A wine-maker's premises licensee shall
secure liquor liability insurance coverage in an amount at
least equal to the maximum liability amounts set forth in
subsection (a) of Section 6-21 of this Act.
    (j) An airplane license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on an airplane; and provided further, that
airplane licensees exercising the above powers shall be subject
to all provisions of Article VIII of this Act as applied to
importing distributors. An airplane licensee shall also permit
the sale or dispensing of alcoholic liquors on any passenger
airplane regularly operated by a common carrier in this State,
but shall not permit the sale for resale of any alcoholic
liquors to any licensee within this State. A single airplane
license shall be required of an airline company if liquor
service is provided on board aircraft in this State. The annual
fee for such license shall be as determined in Section 5-3.
    (k) A foreign importer's license shall permit such licensee
to purchase alcoholic liquor from Illinois licensed
non-resident dealers only, and to import alcoholic liquor other
than in bulk from any point outside the United States and to
sell such alcoholic liquor to Illinois licensed importing
distributors and to no one else in Illinois; provided that (i)
the foreign importer registers with the State Commission every
brand of alcoholic liquor that it proposes to sell to Illinois
licensees during the license period, (ii) the foreign importer
complies with all of the provisions of Section 6-9 of this Act
with respect to registration of such Illinois licensees as may
be granted the right to sell such brands at wholesale, and
(iii) the foreign importer complies with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers.
    (l) (i) A broker's license shall be required of all persons
who solicit orders for, offer to sell or offer to supply
alcoholic liquor to retailers in the State of Illinois, or who
offer to retailers to ship or cause to be shipped or to make
contact with distillers, rectifiers, brewers or manufacturers
or any other party within or without the State of Illinois in
order that alcoholic liquors be shipped to a distributor,
importing distributor or foreign importer, whether such
solicitation or offer is consummated within or without the
State of Illinois.
    No holder of a retailer's license issued by the Illinois
Liquor Control Commission shall purchase or receive any
alcoholic liquor, the order for which was solicited or offered
for sale to such retailer by a broker unless the broker is the
holder of a valid broker's license.
    The broker shall, upon the acceptance by a retailer of the
broker's solicitation of an order or offer to sell or supply or
deliver or have delivered alcoholic liquors, promptly forward
to the Illinois Liquor Control Commission a notification of
said transaction in such form as the Commission may by
regulations prescribe.
    (ii) A broker's license shall be required of a person
within this State, other than a retail licensee, who, for a fee
or commission, promotes, solicits, or accepts orders for
alcoholic liquor, for use or consumption and not for resale, to
be shipped from this State and delivered to residents outside
of this State by an express company, common carrier, or
contract carrier. This Section does not apply to any person who
promotes, solicits, or accepts orders for wine as specifically
authorized in Section 6-29 of this Act.
    A broker's license under this subsection (l) shall not
entitle the holder to buy or sell any alcoholic liquors for his
own account or to take or deliver title to such alcoholic
liquors.
    This subsection (l) shall not apply to distributors,
employees of distributors, or employees of a manufacturer who
has registered the trademark, brand or name of the alcoholic
liquor pursuant to Section 6-9 of this Act, and who regularly
sells such alcoholic liquor in the State of Illinois only to
its registrants thereunder.
    Any agent, representative, or person subject to
registration pursuant to subsection (a-1) of this Section shall
not be eligible to receive a broker's license.
    (m) A non-resident dealer's license shall permit such
licensee to ship into and warehouse alcoholic liquor into this
State from any point outside of this State, and to sell such
alcoholic liquor to Illinois licensed foreign importers and
importing distributors and to no one else in this State;
provided that (i) said non-resident dealer shall register with
the Illinois Liquor Control Commission each and every brand of
alcoholic liquor which it proposes to sell to Illinois
licensees during the license period, (ii) it shall comply with
all of the provisions of Section 6-9 hereof with respect to
registration of such Illinois licensees as may be granted the
right to sell such brands at wholesale, and (iii) the
non-resident dealer shall comply with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers.
    (n) A brew pub license shall allow the licensee to only (i)
manufacture up to 155,000 gallons of beer per year only on the
premises specified in the license, (ii) make sales of the beer
manufactured on the premises or, with the approval of the
Commission, beer manufactured on another brew pub licensed
premises that is wholly owned and operated by the same licensee
to importing distributors, distributors, and to non-licensees
for use and consumption, (iii) store the beer upon the
premises, (iv) sell and offer for sale at retail from the
licensed premises for off-premises consumption no more than
155,000 gallons per year so long as such sales are only made
in-person, (v) sell and offer for sale at retail for use and
consumption on the premises specified in the license any form
of alcoholic liquor purchased from a licensed distributor or
importing distributor, and (vi) with the prior approval of the
Commission, annually transfer no more than 155,000 gallons of
beer manufactured on the premises to a licensed brew pub wholly
owned and operated by the same licensee.
    A brew pub licensee shall not under any circumstance sell
or offer for sale beer manufactured by the brew pub licensee to
retail licensees.
    A person who holds a class 2 brewer license may
simultaneously hold a brew pub license if the class 2 brewer
(i) does not, under any circumstance, sell or offer for sale
beer manufactured by the class 2 brewer to retail licensees;
(ii) does not hold more than 3 brew pub licenses in this State;
(iii) does not manufacture more than a combined 3,720,000
gallons of beer per year, including the beer manufactured at
the brew pub; and (iv) is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or any other alcoholic
liquor.
    Notwithstanding any other provision of this Act, a licensed
brewer, class 2 brewer, or non-resident dealer who before July
1, 2015 manufactured less than than 3,720,000 gallons of beer
per year and held a brew pub license on or before July 1, 2015
may (i) continue to qualify for and hold that brew pub license
for the licensed premises and (ii) manufacture more than
3,720,000 gallons of beer per year and continue to qualify for
and hold that brew pub license if that brewer, class 2 brewer,
or non-resident dealer does not simultaneously hold a class 1
brewer license and is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or that produces any other
alcoholic liquor.
    (o) A caterer retailer license shall allow the holder to
serve alcoholic liquors as an incidental part of a food service
that serves prepared meals which excludes the serving of snacks
as the primary meal, either on or off-site whether licensed or
unlicensed.
    (p) An auction liquor license shall allow the licensee to
sell and offer for sale at auction wine and spirits for use or
consumption, or for resale by an Illinois liquor licensee in
accordance with provisions of this Act. An auction liquor
license will be issued to a person and it will permit the
auction liquor licensee to hold the auction anywhere in the
State. An auction liquor license must be obtained for each
auction at least 14 days in advance of the auction date.
    (q) A special use permit license shall allow an Illinois
licensed retailer to transfer a portion of its alcoholic liquor
inventory from its retail licensed premises to the premises
specified in the license hereby created, and to sell or offer
for sale at retail, only in the premises specified in the
license hereby created, the transferred alcoholic liquor for
use or consumption, but not for resale in any form. A special
use permit license may be granted for the following time
periods: one day or less; 2 or more days to a maximum of 15 days
per location in any 12 month period. An applicant for the
special use permit license must also submit with the
application proof satisfactory to the State Commission that the
applicant will provide dram shop liability insurance to the
maximum limits and have local authority approval.
    (r) A winery shipper's license shall allow a person with 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 or who is licensed to make wine
under the laws of another state to ship wine made by that
licensee directly to a resident of this State who is 21 years
of age or older for that resident's personal use and not for
resale. Prior to receiving a winery shipper's license, an
applicant for the license must provide the Commission with a
true copy of its current license in any state in which it is
licensed as a manufacturer of wine. An applicant for a winery
shipper's license must also complete an application form that
provides any other information the Commission deems necessary.
The application form shall include all addresses from which the
applicant for a winery shipper's license intends to ship wine,
including the name and address of any third party, except for a
common carrier, authorized to ship wine on behalf of the
manufacturer. The application form shall include an
acknowledgement consenting to the jurisdiction of the
Commission, the Illinois Department of Revenue, and the courts
of this State concerning the enforcement of this Act and any
related laws, rules, and regulations, including authorizing
the Department of Revenue and the Commission to conduct audits
for the purpose of ensuring compliance with this amendatory
Act, and an acknowledgement that the wine manufacturer is in
compliance with Section 6-2 of this Act. Any third party,
except for a common carrier, authorized to ship wine on behalf
of a first-class or second-class wine manufacturer's licensee,
a first-class or second-class wine-maker's licensee, a limited
wine manufacturer's licensee, or a person who is licensed to
make wine under the laws of another state shall also be
disclosed by the winery shipper's licensee, and a copy of the
written appointment of the third-party wine provider, except
for a common carrier, to the wine manufacturer shall be filed
with the State Commission as a supplement to the winery
shipper's license application or any renewal thereof. The
winery shipper's license holder shall affirm under penalty of
perjury, as part of the winery shipper's license application or
renewal, that he or she only ships wine, either directly or
indirectly through a third-party provider, from the licensee's
own production.
    Except for a common carrier, a third-party provider
shipping wine on behalf of a winery shipper's license holder is
the agent of the winery shipper's license holder and, as such,
a winery shipper's license holder is responsible for the acts
and omissions of the third-party provider acting on behalf of
the license holder. A third-party provider, except for a common
carrier, that engages in shipping wine into Illinois on behalf
of a winery shipper's license holder shall consent to the
jurisdiction of the State Commission and the State. Any
third-party, except for a common carrier, holding such an
appointment shall, by February 1 of each calendar year, file
with the State Commission a statement detailing each shipment
made to an Illinois resident. The State Commission shall adopt
rules as soon as practicable to implement the requirements of
this amendatory Act of the 99th General Assembly and shall
adopt rules prohibiting any such third-party appointment of a
third-party provider, except for a common carrier, that has
been deemed by the State Commission to have violated the
provisions of this Act with regard to any winery shipper
licensee.
    A winery shipper licensee must pay to the Department of
Revenue the State liquor gallonage tax under Section 8-1 for
all wine that is sold by the licensee and shipped to a person
in this State. For the purposes of Section 8-1, a winery
shipper licensee shall be taxed in the same manner as a
manufacturer of wine. A licensee who is not otherwise required
to register under the Retailers' Occupation Tax Act must
register under the Use Tax Act to collect and remit use tax to
the Department of Revenue for all gallons of wine that are sold
by the licensee and shipped to persons in this State. If a
licensee fails to remit the tax imposed under this Act in
accordance with the provisions of Article VIII of this Act, the
winery shipper's license shall be revoked in accordance with
the provisions of Article VII of this Act. If a licensee fails
to properly register and remit tax under the Use Tax Act or the
Retailers' Occupation Tax Act for all wine that is sold by the
winery shipper and shipped to persons in this State, the winery
shipper's license shall be revoked in accordance with the
provisions of Article VII of this Act.
    A winery shipper licensee must collect, maintain, and
submit to the Commission on a semi-annual basis the total
number of cases per resident of wine shipped to residents of
this State. A winery shipper licensed under this subsection (r)
must comply with the requirements of Section 6-29 of this
amendatory Act.
    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
Section 3-12, the State Commission may receive, respond to, and
investigate any complaint and impose any of the remedies
specified in paragraph (1) of subsection (a) of Section 3-12.
(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
98-756, eff. 7-16-14; 99-448, eff. 8-24-15; revised 10-27-15.)
 
    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
    Sec. 5-3. License fees. Except as otherwise provided
herein, at the time application is made to the State Commission
for a license of any class, the applicant shall pay to the
State Commission the fee hereinafter provided for the kind of
license applied for.
    The fee for licenses issued by the State Commission shall
be as follows:
    For a manufacturer's license:
OnlineInitial
renewallicense
or
non-online
renewal
    Class 1. Distiller .................$4,000$5,000 $3,600
    Class 2. Rectifier .................4,000 5,000 3,600
    Class 3. Brewer ....................1,200 1,500 900
    Class 4. First-class Wine
        Manufacturer ...................750900 600
    Class 5. Second-class
        Wine Manufacturer ..............1,500 1,750 1,200
    Class 6. First-class wine-maker ....750 900 600
    Class 7. Second-class wine-maker ...1,500 1,750 1200
    Class 8. Limited Wine Manufacturer..250 350 120
    Class 9. Craft Distiller............ 2,000 2,500 1,800
    Class 10. Class 1 Brewer............50 75 25
    Class 11. Class 2 Brewer............ 75 100 25
    For a Brew Pub License..............1,2001,500 1,050
    For a caterer retailer's license....350 500 200
    For a foreign importer's license ...25 25
    For an importing distributor's
        license.........................2525
    For a distributor's license
        (11,250,000 gallons
        or over)........................1,4502,200
    For a distributor's license
        (over 4,500,000 gallons,
        but under 11,250,000 gallons)... 9501,450
    For a distributor's license
        (4,500,000 gallons or under)....300450
    For a distributor's license ......... 270
    For a non-resident dealer's license
        (500,000 gallons or over) ......1,200 1,500 270
    For a non-resident dealer's license
        (under 500,000 gallons) ........250 350 90
    For a wine-maker's premises license .250 500 100
    For a winery shipper's license
        (under 250,000 gallons).........200 350 150
    For a winery shipper's license
        (250,000 or over, but
        under 500,000 gallons)..........7501,000 500
    For a winery shipper's license
        (500,000 gallons or over).......1,200 1,500 1,000
    For a wine-maker's premises license,
        second location ................500 1,000 350
    For a wine-maker's premises license,
        third location .................5001,000 350
    For a retailer's license ...........600 750 500
    For a special event retailer's
        license, (not-for-profit) ......25 25
    For a special use permit license,
        one day only ...................100 150 50
        2 days or more .................150 250 100
    For a railroad license .............100 150 60
    For a boat license .................500 1,000 180
    For an airplane license, times the
        licensee's maximum number of
        aircraft in flight, serving
        liquor over the State at any
        given time, which either
        originate, terminate, or make
        an intermediate stop in
        the State.......................100150 60
    For a non-beverage user's license:
        Class 1 ........................2424
        Class 2 ........................6060
        Class 3 ........................120120
        Class 4 ........................240240
        Class 5 ........................600600
    For a broker's license .............750 1,000 600
    For an auction liquor license ......100 150 50
    For a homebrewer special
        event permit....................2525
    For a BASSET trainer license........ 300 350
    For a tasting representative
        license.........................200300
    Fees collected under this Section shall be paid into the
Dram Shop Fund. On and after July 1, 2003 and until June 30,
2016, of the funds received for a retailer's license, in
addition to the first $175, an additional $75 shall be paid
into the Dram Shop Fund, and $250 shall be paid into the
General Revenue Fund. On and after June 30, 2016, one-half of
the funds received for a retailer's license shall be paid into
the Dram Shop Fund and one-half of the funds received for a
retailer's license shall be paid into the General Revenue Fund.
Beginning June 30, 1990 and on June 30 of each subsequent year
through June 29, 2003, any balance over $5,000,000 remaining in
the Dram Shop Fund shall be credited to State liquor licensees
and applied against their fees for State liquor licenses for
the following year. The amount credited to each licensee shall
be a proportion of the balance in the Dram Fund that is the
same as the proportion of the license fee paid by the licensee
under this Section for the period in which the balance was
accumulated to the aggregate fees paid by all licensees during
that period.
    No fee shall be paid for licenses issued by the State
Commission to the following non-beverage users:
        (a) Hospitals, sanitariums, or clinics when their use
    of alcoholic liquor is exclusively medicinal, mechanical
    or scientific.
        (b) Universities, colleges of learning or schools when
    their use of alcoholic liquor is exclusively medicinal,
    mechanical or scientific.
        (c) Laboratories when their use is exclusively for the
    purpose of scientific research.
(Source: P.A. 98-55, eff. 7-5-13; 99-448, eff. 8-24-15.)
 
    (235 ILCS 5/6-29.1)
    Sec. 6-29.1. Direct shipments of alcoholic liquor.
    (a) The General Assembly makes the following findings:
        (1) The General Assembly of Illinois, having reviewed
    this Act in light of the United States Supreme Court's 2005
    decision in Granholm v. Heald, has determined to conform
    that law to the constitutional principles enunciated by the
    Court in a manner that best preserves the temperance,
    revenue, and orderly distribution values of this Act.
        (2) Minimizing automobile accidents and fatalities,
    domestic violence, health problems, loss of productivity,
    unemployment, and other social problems associated with
    dependency and improvident use of alcoholic beverages
    remains the policy of Illinois.
        (3) To the maximum extent constitutionally feasible,
    Illinois desires to collect sufficient revenue from excise
    and use taxes on alcoholic beverages for the purpose of
    responding to such social problems.
        (4) Combined with family education and individual
    discipline, retail validation of age, and assessment of the
    capacity of the consumer remains the best pre-sale social
    protection against the problems associated with the abuse
    of alcoholic liquor.
        (5) Therefore, the paramount purpose of this
    amendatory Act is to continue to carefully limit direct
    shipment sales of wine produced by makers of wine and to
    continue to prohibit such direct shipment sales for spirits
    and beer.
    For these reasons, the Commission shall establish a system
to notify the out-of-state trade of this prohibition and to
detect violations. The Commission shall request the Attorney
General to extradite any offender.
    (b) Pursuant to the Twenty-First Amendment of the United
States Constitution allowing states to regulate the
distribution and sale of alcoholic liquor and pursuant to the
federal Webb-Kenyon Act declaring that alcoholic liquor
shipped in interstate commerce must comply with state laws, the
General Assembly hereby finds and declares that selling
alcoholic liquor from a point outside this State through
various direct marketing means, such as catalogs, newspapers,
mailers, and the Internet, directly to residents of this State
poses a serious threat to the State's efforts to prevent youths
from accessing alcoholic liquor; to State revenue collections;
and to the economy of this State.
    Any person manufacturing, distributing, or selling
alcoholic liquor who knowingly ships or transports or causes
the shipping or transportation of any alcoholic liquor from a
point outside this State to a person in this State who does not
hold a manufacturer's, distributor's, importing distributor's,
or non-resident dealer's license issued by the Liquor Control
Commission, other than a shipment of sacramental wine to a bona
fide religious organization, a shipment authorized by Section
6-29, subparagraph (17) of Section 3-12, or any other shipment
authorized by this Act, is in violation of this Act.
    The Commission, upon determining, after investigation,
that a person has violated this Section, shall give notice to
the person by certified mail to cease and desist all shipments
of alcoholic liquor into this State and to withdraw from this
State within 5 working days after receipt of the notice all
shipments of alcoholic liquor then in transit. A person who
violates the cease and desist notice is subject to the
applicable penalties in subsection (a) of Section 10-1 of this
Act.
    Whenever the Commission has reason to believe that a person
has failed to comply with the Commission notice under this
Section, it shall notify the Department of Revenue and file a
complaint with the State's Attorney of the county where the
alcoholic liquor was delivered or with appropriate law
enforcement officials.
    Failure to comply with the notice issued by the Commission
under this Section constitutes a business offense for which the
person shall be fined not more than $1,000 for a first offense,
not more than $5,000 for a second offense, and not more than
$10,000 for a third or subsequent offense. Each shipment of
alcoholic liquor delivered in violation of the cease and desist
notice shall constitute a separate offense.
(Source: P.A. 95-634, eff. 6-1-08.)
 
    (235 ILCS 5/10-1)  (from Ch. 43, par. 183)
    Sec. 10-1. Violations; penalties. Whereas a substantial
threat to the sound and careful control, regulation, and
taxation of the manufacture, sale, and distribution of
alcoholic liquors exists by virtue of individuals who
manufacture, import, distribute, or sell alcoholic liquors
within the State without having first obtained a valid license
to do so, and whereas such threat is especially serious along
the borders of this State, and whereas such threat requires
immediate correction by this Act, by active investigation and
prosecution by law enforcement officials and prosecutors, and
by prompt and strict enforcement through the courts of this
State to punish violators and to deter such conduct in the
future:
    (a) Any person who manufactures, imports for distribution
or use, transports from outside this State into this State, or
distributes or sells 108 liters (28.53 gallons) or more of
wine, 45 liters (11.88 gallons) or more of distilled spirits,
or 118 liters (31.17 gallons) or more of beer alcoholic liquor
at any place within the State without having first obtained a
valid license to do so under the provisions of this Act shall
be guilty of a business offense and fined not more than $1,000
for the first such offense and shall be guilty of a Class 4
felony for each subsequent offense. However, any person who was
duly licensed under this Act and whose license expired within
30 days prior to a violation shall be guilty of a business
offense and fined not more than $1,000 for the first such
offense and shall be guilty of a Class 4 felony for each
subsequent offense.
    Any person who manufactures, imports for distribution,
transports from outside this State into this State for sale or
resale in this State, or distributes or sells less than 108
liters (28.53 gallons) of wine, less than 45 liters (11.88
gallons) of distilled spirits, or less than 118 liters (31.17
gallons) of beer at any place within the State without having
first obtained a valid license to do so under the provisions of
this Act shall be guilty of a business offense and fined not
more than $1,000 for the first such offense and shall be guilty
of a Class 4 felony for each subsequent offense. This
subsection does not apply to a motor carrier or freight
forwarder, as defined in Section 13102 of Title 49 of the
United States Code, an air carrier, as defined in Section 40102
of Title 49 of the United States Code, or a rail carrier, as
defined in Section 10102 of Title 49 of the United States Code.
    Any person who both has been issued an initial cease and
desist notice from the State Commission and for compensation
ships alcoholic liquor into this State without a license
authorized by Section 5-1 issued by the State Commission or in
violation of that license is guilty of a Class 4 felony for
each offense.
    (b) (1) Any retailer, licensed in this State, who knowingly
causes to furnish, give, sell, or otherwise being within the
State, any alcoholic liquor destined to be used, distributed,
consumed or sold in another state, unless such alcoholic liquor
was received in this State by a duly licensed distributor, or
importing distributors shall have his license suspended for 7
days for the first offense and for the second offense, shall
have his license revoked by the Commission.
    (2) In the event the Commission receives a certified copy
of a final order from a foreign jurisdiction that an Illinois
retail licensee has been found to have violated that foreign
jurisdiction's laws, rules, or regulations concerning the
importation of alcoholic liquor into that foreign
jurisdiction, the violation may be grounds for the Commission
to revoke, suspend, or refuse to issue or renew a license, to
impose a fine, or to take any additional action provided by
this Act with respect to the Illinois retail license or
licensee. Any such action on the part of the Commission shall
be in accordance with this Act and implementing rules.
    For the purposes of paragraph (2): (i) "foreign
jurisdiction" means a state, territory, or possession of the
United States, the District of Columbia, or the Commonwealth of
Puerto Rico, and (ii) "final order" means an order or judgment
of a court or administrative body that determines the rights of
the parties respecting the subject matter of the proceeding,
that remains in full force and effect, and from which no appeal
can be taken.
    (c) Any person who shall make any false statement or
otherwise violates any of the provisions of this Act in
obtaining any license hereunder, or who having obtained a
license hereunder shall violate any of the provisions of this
Act with respect to the manufacture, possession, distribution
or sale of alcoholic liquor, or with respect to the maintenance
of the licensed premises, or shall violate any other provision
of this Act, shall for a first offense be guilty of a petty
offense and fined not more than $500, and for a second or
subsequent offense shall be guilty of a Class B misdemeanor.
    (c-5) Any owner of an establishment that serves alcohol on
its premises, if more than 50% of the establishment's gross
receipts within the prior 3 months is from the sale of alcohol,
who knowingly fails to prohibit concealed firearms on its
premises or who knowingly makes a false statement or record to
avoid the prohibition of concealed firearms on its premises
under the Firearm Concealed Carry Act shall be guilty of a
business offense with a fine up to $5,000.
    (d) Each day any person engages in business as a
manufacturer, foreign importer, importing distributor,
distributor or retailer in violation of the provisions of this
Act shall constitute a separate offense.
    (e) Any person, under the age of 21 years who, for the
purpose of buying, accepting or receiving alcoholic liquor from
a licensee, represents that he is 21 years of age or over shall
be guilty of a Class A misdemeanor.
    (f) In addition to the penalties herein provided, any
person licensed as a wine-maker in either class who
manufactures more wine than authorized by his license shall be
guilty of a business offense and shall be fined $1 for each
gallon so manufactured.
    (g) A person shall be exempt from prosecution for a
violation of this Act if he is a peace officer in the
enforcement of the criminal laws and such activity is approved
in writing by one of the following:
        (1) In all counties, the respective State's Attorney;
        (2) The Director of State Police under Section 2605-10,
    2605-15, 2605-75, 2605-100, 2605-105, 2605-110, 2605-115,
    2605-120, 2605-130, 2605-140, 2605-190, 2605-200,
    2605-205, 2605-210, 2605-215, 2605-250, 2605-275,
    2605-300, 2605-305, 2605-315, 2605-325, 2605-335,
    2605-340, 2605-350, 2605-355, 2605-360, 2605-365,
    2605-375, 2605-390, 2605-400, 2605-405, 2605-420,
    2605-430, 2605-435, 2605-500, 2605-525, or 2605-550 of the
    Department of State Police Law (20 ILCS 2605/2605-10,
    2605/2605-15, 2605/2605-75, 2605/2605-100, 2605/2605-105,
    2605/2605-110, 2605/2605-115, 2605/2605-120,
    2605/2605-130, 2605/2605-140, 2605/2605-190,
    2605/2605-200, 2605/2605-205, 2605/2605-210,
    2605/2605-215, 2605/2605-250, 2605/2605-275,
    2605/2605-300, 2605/2605-305, 2605/2605-315,
    2605/2605-325, 2605/2605-335, 2605/2605-340,
    2605/2605-350, 2605/2605-355, 2605/2605-360,
    2605/2605-365, 2605/2605-375, 2605/2605-390,
    2605/2605-400, 2605/2605-405, 2605/2605-420,
    2605/2605-430, 2605/2605-435, 2605/2605-500,
    2605/2605-525, or 2605/2605-550); or
        (3) In cities over 1,000,000, the Superintendent of
    Police.
(Source: P.A. 98-63, eff. 7-9-13.)
 
    Section 99. Effective date. This Act takes effect January
1, 2017, except that the changes to Section 5-3 of the Liquor
Control Act of 1934 take effect upon becoming law.