Public Act 90-0596 of the 90th General Assembly
Public Act 90-0596
HB3030 Enrolled LRB9009516LDdvA
AN ACT to amend the Liquor Control Act of 1934 by
changing Sections 5-1, 6-9, and 7-1.
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, 6-9, and 7-1 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,
(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 retail 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.
Nothing in this provision, nor in any subsequent
provision of this Act shall be interpreted as forbidding an
individual or firm from concurrently obtaining and holding a
Winemaker's 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, distributors, and to
non-licensees, and to retailers provided the brewer obtains
an importing distributor's license or distributor's license
in accordance with the provisions of this Act.
Class 4. A first class wine-manufacturer may make sales
and deliveries of between 40,000 and 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 less than 20,000 gallons of wine per year,
and the storage and sale of such wine to distributors and
retailers in the State and to persons without the State, as
may be permitted by law.
Class 7. A second-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 this
State and to persons without the State, as may be permitted
by law. A second-class wine-maker's license shall allow the
sale of no more than 10,000 gallons of the licensee's wine
directly to retailers.
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.
(a-1) A manufacturer which is licensed in this State to
make sales or deliveries of alcoholic liquor 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.
(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 such license, alcoholic liquor for use or
consumption, but not for resale in any form: Provided that
any retail license issued to a manufacturer shall only permit
such manufacturer to sell beer at retail on the premises
actually occupied by such manufacturer.
After January 1, 1995 there shall be 2 classes of
licenses issued under a retailers license.
(1) A "retailers on premise consumption license"
shall allow the licensee to sell and offer for sale at
retail, only on the premises specified in the license,
alcoholic liquor for use or consumption on the premises
or on and off the premises, but not for resale in any
form.
(2) An "off premise sale license" shall allow the
licensee to sell, or offer for sale at retail, alcoholic
liquor intended only for off premise consumption and not
for resale in any form.
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) also 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 have 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, which boat 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 retail license shall allow the
licensee to sell and offer for sale at retail in the premises
specified in such license not more than 50,000 gallons of
wine per year for use or consumption, but not for resale in
any form; this license shall be issued only to a person
licensed as a first-class or second-class wine-maker. A
wine-maker's retail licensee, upon receiving permission from
the Commission, may conduct business at a second location
that is separate from the location specified in its
wine-maker's retail license. One wine-maker's retail
license-second location may be issued to a wine-maker's
retail licensee allowing the licensee to sell and offer for
sale at retail in the premises specified in the wine-maker's
retail license-second location up to 50,000 gallons of wine
that was produced at the licensee's first location per year
for use and consumption and not for resale.
(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.
(l) A broker's license shall be required of all brokers
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.
Such license 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 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 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; and further provided
that 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.
(n) A brew pub license shall allow the licensee to
manufacture beer only on the premises specified in the
license, to make sales of the beer manufactured on the
premises to importing distributors, distributors, and to
non-licensees for use and consumption, to store the beer upon
the premises, and to sell and offer for sale at retail from
the licensed premises, provided that a brew pub licensee
shall not sell for off-premises consumption more than 50,000
gallons per year.
(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.
(Source: P.A. 89-45, eff. 6-23-95; 89-218, eff. 1-1-96;
89-626, eff. 8-9-96; 90-77, eff. 7-8-97; 90-432, eff. 1-1-98;
revised 11-5-97.)
(235 ILCS 5/6-9) (from Ch. 43, par. 126)
Sec. 6-9. Registration of trade marks; sale within
geographical area; delivery to authorized persons. The
Legislature hereby finds and declares that for purposes of
ensuring the preservation and enhancement of interbrand
competition in the alcoholic liquor industry within the
State, ensuring that importation and distribution of
alcoholic liquor in the State will be subject to thorough and
inexpensive monitoring by the State, reducing the importation
of illicit or untaxed alcoholic liquor into the State,
excluding misbranded alcoholic liquor products from the
State, providing incentives to distributors to service and
sell to larger numbers of retail licensees in the geographic
area where such distributors are engaged in business, and
reducing the amount of spoiled and overaged alcoholic liquor
products sold to consumers, it is necessary to restrict the
purchase of alcoholic liquors at wholesale in the State to
those persons selected by the manufacturer, distributor,
importing distributor or foreign importer who owns or
controls the trade mark, brand or name of the alcoholic
liquor products sold to such persons, and to restrict the
geographic area or areas within which such persons sell such
alcoholic liquor at wholesale, as provided in this Section.
Each manufacturer, non-resident dealer, distributor,
importing distributor, or foreign importer who owns or
controls the trade mark, brand or name of any alcoholic
liquor shall register with the State Commission, in the
Chicago office, on or before the effective date, the name of
each person to whom such manufacturer, non-resident dealer,
distributor, importing distributor, or foreign importer
grants the right to sell at wholesale in this State any such
alcoholic liquor, specifying the particular trade mark, brand
or name of alcoholic liquor as to which such right is
granted, the geographical area or areas for which such right
is granted and the period of time for which such rights are
granted to such person. Each manufacturer, non-resident
dealer, distributor or importing distributor, or foreign
importer who is required to register under this Section must
furnish a copy of the registration statement at the time of
appointment to the person who has been granted the right to
sell alcoholic liquor at wholesale. Such manufacturer,
non-resident dealer, distributor, importing distributor, or
foreign importer may grant the right to sell at wholesale any
trade mark, brand or name of any alcoholic liquor in any
geographical area to more than one person. If the
registration is received after the effective date, the
Commission shall treat the date the registration was received
in the Chicago office as the effective date. Such
registration shall be made on a form prescribed by the State
Commission and the State Commission may require such
registration to be on a form provided by it. No such
registration shall be made by any other person or in any
other manner than as is provided in this Section and only
those persons registered by the manufacturer, non-resident
dealer, distributor, importing distributor or foreign
importer, shall have the right to sell at wholesale in this
State, the brand of alcoholic liquor specified on the
registration form.
However, a licensed Illinois distributor who has not been
registered to sell a brand of alcoholic liquor, but for a
period of 2 years prior to November 8, 1979 has been engaged
in the purchase of a brand for resale from a licensed
Illinois distributor who has the right to sell that brand at
wholesale, may continue to purchase and resell the brand at
wholesale, and may purchase from the same distributor and
resell at wholesale any new brands of the same manufacturer,
provided that:
(1) Within 60 days after November 8, 1979 he
identifies the brand which he so purchased to the State
Commission and the Commission within 30 days thereafter
verifies that the purchases have occurred;
(2) Thereafter, he notifies the State Commission in
writing of any brands of the same manufacturer which he
wishes to purchase from the same distributor that were
not available for distribution on or before November 8,
1979, and that the Commission within 30 days of such
notification verifies that the brand is a new brand of
the same manufacturer, and that the same licensed
Illinois distributor has the right to sell the new brand
at wholesale;
(3) His licensed business address is within the
geographical area for which the licensed Illinois
distributor from whom the purchases are made has the
right to sell said brand or brands of alcoholic liquor;
and
(4) His sales are made within the geographical area
for which the licensed Illinois distributor from whom the
purchases are made has the right to sell the brand or
brands of alcoholic liquor and only to retail licensees
whose licensed premises are located within the
aforementioned geographical area.
No person to whom such right is granted shall sell at
wholesale in this State any alcoholic liquor bearing such
trade mark, brand or name outside of the geographical area
for which such person holds such selling right, as registered
with the State Commission, nor shall he sell such alcoholic
liquor within such geographical area to a retail licensee if
the premises specified in such retailer's license are located
outside such geographical area. Any licensed Illinois
distributor who has not been granted the right to sell any
alcoholic liquor at wholesale and is purchasing alcoholic
liquor from a person who has been granted the right to sell
at wholesale may sell and deliver only to retail licensees
whose licensed premises are within the same geographical area
as the person who has been granted the right to sell at
wholesale.
No manufacturer, importing distributor, distributor,
non-resident dealer, or foreign importer shall sell or
deliver any package containing alcoholic liquor manufactured
or distributed by him for resale, unless the person to whom
such package is sold or delivered is authorized to receive
such package in accordance with the provisions of this Act.
(Source: P.A. 89-250, eff. 1-1-96.)
(235 ILCS 5/7-1) (from Ch. 43, par. 145)
Sec. 7-1. An applicant for a retail license from the
State Commission shall submit to the State Commission an
application in writing under oath stating:
(1) The applicant's name and mailing address;
(2) The name and address of the applicant's
business;
(3) If applicable, the date of the filing of the
"assumed name" of the business with the County Clerk;
(4) In case of a copartnership, the date of the
formation of the partnership; in the case of an Illinois
corporation, the date of its incorporation; or in the
case of a foreign corporation, the State where it was
incorporated and the date of its becoming qualified under
the Business Corporation Act of 1983 to transact business
in the State of Illinois;
(5) The number, the date of issuance and the date
of expiration of the applicant's current local retail
liquor license;
(6) The name of the city, village, or county that
issued the local retail liquor license;
(7) The name and address of the landlord if the
premises are leased;
(8) The date of the applicant's first request for a
State liquor license and whether it was granted, denied
or withdrawn;
(9) The address of the applicant when the first
application for a State liquor license was made;
(10) The applicant's current State liquor license
number;
(11) The date the applicant began liquor sales at
his place of business;
(12) The address of the applicant's warehouse if he
warehouses liquor;
(13) The applicant's Retailer's Occupation Tax
(ROT) Registration Number;
(14) The applicant's document locater number on his
Federal Special Tax Stamp;
(15) Whether the applicant is delinquent in the
payment of the Retailer's Occupational Tax (Sales Tax),
and if so, the reasons therefor;
(16) Whether the applicant is delinquent under the
cash beer law, and if so, the reasons therefor;
(17) In the case of a retailer, whether he is
delinquent under the 30 day credit law, and if so, the
reasons therefor;
(18) In the case of a distributor, whether he is
delinquent under the 15 day credit law, and if so, the
reasons therefor;
(19) Whether the applicant has made an application
for a liquor license which has been denied, and if so,
the reasons therefor;
(20) Whether the applicant has ever had any
previous liquor license suspended or revoked, and if so,
the reasons therefor;
(21) Whether the applicant has ever been convicted
of a gambling offense or felony, and if so, the
particulars thereof;
(22) Whether the applicant possesses a current
Federal Wagering Stamp, and if so, the reasons therefor;
(23) Whether the applicant, or any other person,
directly in his place of business is a public official,
and if so, the particulars thereof;
(24) The applicant's name, sex, date of birth,
social security number, position and percentage of
ownership in the business; and the name, sex, date of
birth, social security number, position and percentage of
ownership in the business of every sole owner, partner,
corporate officer, director, manager and any person who
owns 5% or more of the shares of the applicant business
entity or parent corporations of the applicant business
entity.
(25) That he has not received or borrowed money or
anything else of value, and that he will not receive or
borrow money or anything else of value (other than
merchandising credit in the ordinary course of business
for a period not to exceed 90 days as herein expressly
permitted under Section 6-5 hereof), directly or
indirectly, from any manufacturer, importing distributor
or distributor or from any representative of any such
manufacturer, importing distributor or distributor, nor
be a party in any way, directly or indirectly, to any
violation by a manufacturer, distributor or importing
distributor of Section 6-6 of this Act.
In addition to any other requirement of this Section, an
applicant for a special use permit license and a special
event retailer's license shall also submit (A) proof
satisfactory to the Commission that the applicant has a
resale number issued under Section 2c of the Retailer's
Occupation Tax Act or that the applicant is registered under
Section 2a of the Retailer's Occupation Tax Act, (B) proof
satisfactory to the Commission that the applicant has 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. The applicant shall
also submit proof of adequate dram shop insurance for the
special event prior to being issued a license.
In addition to the foregoing information, such
application shall contain such other and further information
as the State Commission and the local commission may, by rule
or regulation not inconsistent with law, prescribe.
If the applicant reports a felony conviction as required
under paragraph (21) of this Section, such conviction may be
considered by the Commission in determining qualifications
for licensing, but shall not operate as a bar to licensing.
If said application is made in behalf of a partnership,
firm, association, club or corporation, then the same shall
be signed by one member of such partnership or the president
or secretary of such corporation or an authorized agent of
said partnership or corporation.
All other applications shall be on forms prescribed by
the State Commission, and which may exclude any of the above
requirements which the State Commission rules to be
inapplicable.
(Source: P.A. 88-91; 89-250, eff. 1-1-96.)
Section 99. Effective date. This Act takes effect upon
becoming law.