101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2551

 

Introduced 1/29/2020, by Sen. Jason A. Barickman

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/1-3.38
235 ILCS 5/1-3.42
235 ILCS 5/3-12
235 ILCS 5/5-1  from Ch. 43, par. 115
235 ILCS 5/6-4  from Ch. 43, par. 121

    Amends the Liquor Control Act of 1934. Authorizes class 1 brewers and class 2 brewers to manufacture and sell mead. Makes conforming changes. Effective immediately.


LRB101 19109 RPS 68572 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2551LRB101 19109 RPS 68572 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 1-3.38, 1-3.42, 3-12, 5-1, and 6-4 as
6follows:
 
7    (235 ILCS 5/1-3.38)
8    Sec. 1-3.38. Class 1 brewer. "Class 1 brewer" means a
9person who is a holder of a brewer license or non-resident
10dealer license who manufactures up to 930,000 gallons of beer,
11mead, or both beer and mead per year and who may make sales and
12deliveries to importing distributors and distributors and to
13retail licensees in accordance with the conditions set forth in
14paragraph (18) of subsection (a) of Section 3-12 of this Act.
15(Source: P.A. 98-401, eff. 8-16-13; 99-448, eff. 8-24-15.)
 
16    (235 ILCS 5/1-3.42)
17    Sec. 1-3.42. Class 2 brewer. "Class 2 brewer" means a
18person who is a holder of a brewer license or non-resident
19dealer license who manufactures up to 3,720,000 gallons of
20beer, mead, or both beer and mead per year for sale to a
21licensed importing distributor or distributor.
22(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16.)
 

 

 

SB2551- 2 -LRB101 19109 RPS 68572 b

1    (235 ILCS 5/3-12)
2    Sec. 3-12. Powers and duties of State Commission.
3    (a) The State Commission shall have the following powers,
4functions, and duties:
5        (1) To receive applications and to issue licenses to
6    manufacturers, foreign importers, importing distributors,
7    distributors, non-resident dealers, on premise consumption
8    retailers, off premise sale retailers, special event
9    retailer licensees, special use permit licenses, auction
10    liquor licenses, brew pubs, caterer retailers,
11    non-beverage users, railroads, including owners and
12    lessees of sleeping, dining and cafe cars, airplanes,
13    boats, brokers, and wine maker's premises licensees in
14    accordance with the provisions of this Act, and to suspend
15    or revoke such licenses upon the State Commission's
16    determination, upon notice after hearing, that a licensee
17    has violated any provision of this Act or any rule or
18    regulation issued pursuant thereto and in effect for 30
19    days prior to such violation. Except in the case of an
20    action taken pursuant to a violation of Section 6-3, 6-5,
21    or 6-9, any action by the State Commission to suspend or
22    revoke a licensee's license may be limited to the license
23    for the specific premises where the violation occurred. An
24    action for a violation of this Act shall be commenced by
25    the State Commission within 2 years after the date the

 

 

SB2551- 3 -LRB101 19109 RPS 68572 b

1    State Commission becomes aware of the violation.
2        In lieu of suspending or revoking a license, the
3    commission may impose a fine, upon the State Commission's
4    determination and notice after hearing, that a licensee has
5    violated any provision of this Act or any rule or
6    regulation issued pursuant thereto and in effect for 30
7    days prior to such violation.
8        For the purpose of this paragraph (1), when determining
9    multiple violations for the sale of alcohol to a person
10    under the age of 21, a second or subsequent violation for
11    the sale of alcohol to a person under the age of 21 shall
12    only be considered if it was committed within 5 years after
13    the date when a prior violation for the sale of alcohol to
14    a person under the age of 21 was committed.
15        The fine imposed under this paragraph may not exceed
16    $500 for each violation. Each day that the activity, which
17    gave rise to the original fine, continues is a separate
18    violation. The maximum fine that may be levied against any
19    licensee, for the period of the license, shall not exceed
20    $20,000. The maximum penalty that may be imposed on a
21    licensee for selling a bottle of alcoholic liquor with a
22    foreign object in it or serving from a bottle of alcoholic
23    liquor with a foreign object in it shall be the destruction
24    of that bottle of alcoholic liquor for the first 10 bottles
25    so sold or served from by the licensee. For the eleventh
26    bottle of alcoholic liquor and for each third bottle

 

 

SB2551- 4 -LRB101 19109 RPS 68572 b

1    thereafter sold or served from by the licensee with a
2    foreign object in it, the maximum penalty that may be
3    imposed on the licensee is the destruction of the bottle of
4    alcoholic liquor and a fine of up to $50.
5        Any notice issued by the State Commission to a licensee
6    for a violation of this Act or any notice with respect to
7    settlement or offer in compromise shall include the field
8    report, photographs, and any other supporting
9    documentation necessary to reasonably inform the licensee
10    of the nature and extent of the violation or the conduct
11    alleged to have occurred. The failure to include such
12    required documentation shall result in the dismissal of the
13    action.
14        (2) To adopt such rules and regulations consistent with
15    the provisions of this Act which shall be necessary to
16    carry on its functions and duties to the end that the
17    health, safety and welfare of the People of the State of
18    Illinois shall be protected and temperance in the
19    consumption of alcoholic liquors shall be fostered and
20    promoted and to distribute copies of such rules and
21    regulations to all licensees affected thereby.
22        (3) To call upon other administrative departments of
23    the State, county and municipal governments, county and
24    city police departments and upon prosecuting officers for
25    such information and assistance as it deems necessary in
26    the performance of its duties.

 

 

SB2551- 5 -LRB101 19109 RPS 68572 b

1        (4) To recommend to local commissioners rules and
2    regulations, not inconsistent with the law, for the
3    distribution and sale of alcoholic liquors throughout the
4    State.
5        (5) To inspect, or cause to be inspected, any premises
6    in this State where alcoholic liquors are manufactured,
7    distributed, warehoused, or sold. Nothing in this Act
8    authorizes an agent of the State Commission to inspect
9    private areas within the premises without reasonable
10    suspicion or a warrant during an inspection. "Private
11    areas" include, but are not limited to, safes, personal
12    property, and closed desks.
13        (5.1) Upon receipt of a complaint or upon having
14    knowledge that any person is engaged in business as a
15    manufacturer, importing distributor, distributor, or
16    retailer without a license or valid license, to conduct an
17    investigation. If, after conducting an investigation, the
18    State Commission is satisfied that the alleged conduct
19    occurred or is occurring, it may issue a cease and desist
20    notice as provided in this Act, impose civil penalties as
21    provided in this Act, notify the local liquor authority, or
22    file a complaint with the State's Attorney's Office of the
23    county where the incident occurred or the Attorney General.
24        (5.2) Upon receipt of a complaint or upon having
25    knowledge that any person is shipping alcoholic liquor into
26    this State from a point outside of this State if the

 

 

SB2551- 6 -LRB101 19109 RPS 68572 b

1    shipment is in violation of this Act, to conduct an
2    investigation. If, after conducting an investigation, the
3    State Commission is satisfied that the alleged conduct
4    occurred or is occurring, it may issue a cease and desist
5    notice as provided in this Act, impose civil penalties as
6    provided in this Act, notify the foreign jurisdiction, or
7    file a complaint with the State's Attorney's Office of the
8    county where the incident occurred or the Attorney General.
9        (5.3) To receive complaints from licensees, local
10    officials, law enforcement agencies, organizations, and
11    persons stating that any licensee has been or is violating
12    any provision of this Act or the rules and regulations
13    issued pursuant to this Act. Such complaints shall be in
14    writing, signed and sworn to by the person making the
15    complaint, and shall state with specificity the facts in
16    relation to the alleged violation. If the State Commission
17    has reasonable grounds to believe that the complaint
18    substantially alleges a violation of this Act or rules and
19    regulations adopted pursuant to this Act, it shall conduct
20    an investigation. If, after conducting an investigation,
21    the State Commission is satisfied that the alleged
22    violation did occur, it shall proceed with disciplinary
23    action against the licensee as provided in this Act.
24        (5.4) To make arrests and issue notices of civil
25    violations where necessary for the enforcement of this Act.
26        (5.5) To investigate any and all unlicensed activity.

 

 

SB2551- 7 -LRB101 19109 RPS 68572 b

1        (5.6) To impose civil penalties or fines to any person
2    who, without holding a valid license, engages in conduct
3    that requires a license pursuant to this Act, in an amount
4    not to exceed $20,000 for each offense as determined by the
5    State Commission. A civil penalty shall be assessed by the
6    State Commission after a hearing is held in accordance with
7    the provisions set forth in this Act regarding the
8    provision of a hearing for the revocation or suspension of
9    a license.
10        (6) To hear and determine appeals from orders of a
11    local commission in accordance with the provisions of this
12    Act, as hereinafter set forth. Hearings under this
13    subsection shall be held in Springfield or Chicago, at
14    whichever location is the more convenient for the majority
15    of persons who are parties to the hearing.
16        (7) The State Commission shall establish uniform
17    systems of accounts to be kept by all retail licensees
18    having more than 4 employees, and for this purpose the
19    State Commission may classify all retail licensees having
20    more than 4 employees and establish a uniform system of
21    accounts for each class and prescribe the manner in which
22    such accounts shall be kept. The State Commission may also
23    prescribe the forms of accounts to be kept by all retail
24    licensees having more than 4 employees, including, but not
25    limited to, accounts of earnings and expenses and any
26    distribution, payment, or other distribution of earnings

 

 

SB2551- 8 -LRB101 19109 RPS 68572 b

1    or assets, and any other forms, records, and memoranda
2    which in the judgment of the commission may be necessary or
3    appropriate to carry out any of the provisions of this Act,
4    including, but not limited to, such forms, records, and
5    memoranda as will readily and accurately disclose at all
6    times the beneficial ownership of such retail licensed
7    business. The accounts, forms, records, and memoranda
8    shall be available at all reasonable times for inspection
9    by authorized representatives of the State Commission or by
10    any local liquor control commissioner or his or her
11    authorized representative. The commission, may, from time
12    to time, alter, amend, or repeal, in whole or in part, any
13    uniform system of accounts, or the form and manner of
14    keeping accounts.
15        (8) In the conduct of any hearing authorized to be held
16    by the State Commission, to appoint, at the commission's
17    discretion, hearing officers to conduct hearings involving
18    complex issues or issues that will require a protracted
19    period of time to resolve, to examine, or cause to be
20    examined, under oath, any licensee, and to examine or cause
21    to be examined the books and records of such licensee; to
22    hear testimony and take proof material for its information
23    in the discharge of its duties hereunder; to administer or
24    cause to be administered oaths; for any such purpose to
25    issue subpoena or subpoenas to require the attendance of
26    witnesses and the production of books, which shall be

 

 

SB2551- 9 -LRB101 19109 RPS 68572 b

1    effective in any part of this State, and to adopt rules to
2    implement its powers under this paragraph (8).
3        Any circuit court may, by order duly entered, require
4    the attendance of witnesses and the production of relevant
5    books subpoenaed by the State Commission and the court may
6    compel obedience to its order by proceedings for contempt.
7        (9) To investigate the administration of laws in
8    relation to alcoholic liquors in this and other states and
9    any foreign countries, and to recommend from time to time
10    to the Governor and through him or her to the legislature
11    of this State, such amendments to this Act, if any, as it
12    may think desirable and as will serve to further the
13    general broad purposes contained in Section 1-2 hereof.
14        (10) To adopt such rules and regulations consistent
15    with the provisions of this Act which shall be necessary
16    for the control, sale, or disposition of alcoholic liquor
17    damaged as a result of an accident, wreck, flood, fire, or
18    other similar occurrence.
19        (11) To develop industry educational programs related
20    to responsible serving and selling, particularly in the
21    areas of overserving consumers and illegal underage
22    purchasing and consumption of alcoholic beverages.
23        (11.1) To license persons providing education and
24    training to alcohol beverage sellers and servers for
25    mandatory and non-mandatory training under the Beverage
26    Alcohol Sellers and Servers Education and Training

 

 

SB2551- 10 -LRB101 19109 RPS 68572 b

1    (BASSET) programs and to develop and administer a public
2    awareness program in Illinois to reduce or eliminate the
3    illegal purchase and consumption of alcoholic beverage
4    products by persons under the age of 21. Application for a
5    license shall be made on forms provided by the State
6    Commission.
7        (12) To develop and maintain a repository of license
8    and regulatory information.
9        (13) (Blank).
10        (14) On or before April 30, 2008 and every 2 years
11    thereafter, the State Commission shall present a written
12    report to the Governor and the General Assembly that shall
13    be based on a study of the impact of Public Act 95-634 on
14    the business of soliciting, selling, and shipping wine from
15    inside and outside of this State directly to residents of
16    this State. As part of its report, the State Commission
17    shall provide all of the following information:
18            (A) The amount of State excise and sales tax
19        revenues generated.
20            (B) The amount of licensing fees received.
21            (C) The number of cases of wine shipped from inside
22        and outside of this State directly to residents of this
23        State.
24            (D) The number of alcohol compliance operations
25        conducted.
26            (E) The number of winery shipper's licenses

 

 

SB2551- 11 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 12 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 13 -LRB101 19109 RPS 68572 b

1    licensees.
2        (D) A self-distribution exemption holder shall
3    annually certify to the State Commission its production of
4    wine in the previous 12 months and its anticipated
5    production and sales for the next 12 months. The State
6    Commission may fine, suspend, or revoke a
7    self-distribution exemption after a hearing if it finds
8    that the exemption holder has made a material
9    misrepresentation in its application, violated a revenue
10    or liquor law of Illinois, exceeded production of 25,000
11    gallons of wine in any calendar year, or become part of an
12    affiliated group producing more than 25,000 gallons of wine
13    or any other alcoholic liquor.
14        (E) Except in hearings for violations of this Act or
15    Public Act 95-634 or a bona fide investigation by duly
16    sworn law enforcement officials, the State Commission, or
17    its agents, the State Commission shall maintain the
18    production and sales information of a self-distribution
19    exemption holder as confidential and shall not release such
20    information to any person.
21        (F) The State Commission shall issue regulations
22    governing self-distribution exemptions consistent with
23    this Section and this Act.
24        (G) Nothing in this paragraph (17) shall prohibit a
25    self-distribution exemption holder from entering into or
26    simultaneously having a distribution agreement with a

 

 

SB2551- 14 -LRB101 19109 RPS 68572 b

1    licensed Illinois distributor.
2        (H) It is the intent of this paragraph (17) to promote
3    and continue orderly markets. The General Assembly finds
4    that, in order to preserve Illinois' regulatory
5    distribution system, it is necessary to create an exception
6    for smaller makers of wine as their wines are frequently
7    adjusted in varietals, mixes, vintages, and taste to find
8    and create market niches sometimes too small for
9    distributor or importing distributor business strategies.
10    Limited self-distribution rights will afford and allow
11    smaller makers of wine access to the marketplace in order
12    to develop a customer base without impairing the integrity
13    of the 3-tier system.
14        (18)(A) A class 1 brewer licensee, who must also be
15    either a licensed brewer or licensed non-resident dealer
16    and annually manufacture less than 930,000 gallons of beer,
17    mead, or both beer and mead, may make application to the
18    State Commission for a self-distribution exemption to
19    allow the sale of not more than 232,500 gallons of the
20    exemption holder's beer, mead, or both beer and mead per
21    year to retail licensees and to brewers, class 1 brewers,
22    and class 2 brewers that, pursuant to subsection (e) of
23    Section 6-4 of this Act, sell beer, cider, mead, or any
24    combination thereof or both beer and cider to non-licensees
25    at their breweries.
26        (B) In the application, which shall be sworn under

 

 

SB2551- 15 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 16 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 17 -LRB101 19109 RPS 68572 b

1    rights to an importing distributor or distributor, then the
2    self-distribution exemption holder's distribution rights
3    in the assigned territories shall cease in a reasonable
4    time not to exceed 60 days.
5        (G) It is the intent of this paragraph (18) to promote
6    and continue orderly markets. The General Assembly finds
7    that in order to preserve Illinois' regulatory
8    distribution system, it is necessary to create an exception
9    for smaller manufacturers in order to afford and allow such
10    smaller manufacturers of beer and mead access to the
11    marketplace in order to develop a customer base without
12    impairing the integrity of the 3-tier system.
13        (19)(A) A class 1 craft distiller licensee or a
14    non-resident dealer who manufactures less than 50,000
15    gallons of distilled spirits per year may make application
16    to the State Commission for a self-distribution exemption
17    to allow the sale of not more than 5,000 gallons of the
18    exemption holder's spirits to retail licensees per year.
19        (B) In the application, which shall be sworn under
20    penalty of perjury, the class 1 craft distiller licensee or
21    non-resident dealer shall state (1) the date it was
22    established; (2) its volume of spirits manufactured and
23    sold for each year since its establishment; (3) its efforts
24    to establish distributor relationships; (4) that a
25    self-distribution exemption is necessary to facilitate the
26    marketing of its spirits; and (5) that it will comply with

 

 

SB2551- 18 -LRB101 19109 RPS 68572 b

1    the alcoholic beverage and revenue laws of the United
2    States, this State, and any other state where it is
3    licensed.
4        (C) Any application submitted shall be posted on the
5    State Commission's website at least 45 days prior to action
6    by the State Commission. The State Commission shall approve
7    the application for a self-distribution exemption if the
8    applicant: (1) is in compliance with State revenue and
9    alcoholic beverage laws; (2) is not a member of any
10    affiliated group that produces more than 50,000 gallons of
11    spirits per annum or produces any other alcoholic liquor;
12    (3) does not annually manufacture for sale more than 50,000
13    gallons of spirits; and (4) does not annually sell more
14    than 5,000 gallons of its spirits to retail licensees.
15        (D) A self-distribution exemption holder shall
16    annually certify to the State Commission its manufacture of
17    spirits during the previous 12 months and its anticipated
18    manufacture and sales of spirits for the next 12 months.
19    The State 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 alcoholic beverage law of Illinois, exceeded the
24    manufacture of 50,000 gallons of spirits in any calendar
25    year, or has become part of an affiliated group
26    manufacturing more than 50,000 gallons of spirits or any

 

 

SB2551- 19 -LRB101 19109 RPS 68572 b

1    other alcoholic beverage.
2        (E) The State Commission shall adopt rules governing
3    self-distribution exemptions consistent with this Act.
4        (F) Nothing in this paragraph (19) shall prohibit a
5    self-distribution exemption holder from entering into or
6    simultaneously having a distribution agreement with a
7    licensed Illinois importing distributor or a distributor.
8        (G) It is the intent of this paragraph (19) to promote
9    and continue orderly markets. The General Assembly finds
10    that in order to preserve Illinois' regulatory
11    distribution system, it is necessary to create an exception
12    for smaller manufacturers in order to afford and allow such
13    smaller manufacturers of spirits access to the marketplace
14    in order to develop a customer base without impairing the
15    integrity of the 3-tier system.
16    (b) On or before April 30, 1999, the Commission shall
17present a written report to the Governor and the General
18Assembly that shall be based on a study of the impact of Public
19Act 90-739 on the business of soliciting, selling, and shipping
20alcoholic liquor from outside of this State directly to
21residents of this State.
22    As part of its report, the Commission shall provide the
23following information:
24        (i) the amount of State excise and sales tax revenues
25    generated as a result of Public Act 90-739;
26        (ii) the amount of licensing fees received as a result

 

 

SB2551- 20 -LRB101 19109 RPS 68572 b

1    of Public Act 90-739;
2        (iii) the number of reported violations, the number of
3    cease and desist notices issued by the Commission, the
4    number of notices of violations issued to the Department of
5    Revenue, and the number of notices and complaints of
6    violations to law enforcement officials.
7(Source: P.A. 100-134, eff. 8-18-17; 100-201, eff. 8-18-17;
8100-816, eff. 8-13-18; 100-1012, eff. 8-21-18; 100-1050, eff.
98-23-18; 101-37, eff. 7-3-19; 101-81, eff. 7-12-19; 101-482,
10eff. 8-23-19; revised 9-20-19.)
 
11    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
12    Sec. 5-1. Licenses issued by the Illinois Liquor Control
13Commission shall be of the following classes:
14    (a) Manufacturer's license - Class 1. Distiller, Class 2.
15Rectifier, Class 3. Brewer, Class 4. First Class Wine
16Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
17First Class Winemaker, Class 7. Second Class Winemaker, Class
188. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1910. Class 1 Craft Distiller, Class 11. Class 2 Craft Distiller,
20Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
21    (b) Distributor's license,
22    (c) Importing Distributor's license,
23    (d) Retailer's license,
24    (e) Special Event Retailer's license (not-for-profit),
25    (f) Railroad license,

 

 

SB2551- 21 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 22 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 23 -LRB101 19109 RPS 68572 b

1Public Act 95-634.
2    Class 7. A second-class wine-maker's license shall allow
3the manufacture of between 50,000 and 150,000 gallons of wine
4per year, and the storage and sale of such wine to distributors
5in this State and to persons without the State, as may be
6permitted by law. A person who, prior to June 1, 2008 (the
7effective date of Public Act 95-634), is a holder of a
8second-class wine-maker's license and annually produces more
9than 25,000 gallons of its own wine and who distributes its
10wine to licensed retailers shall cease this practice on or
11before July 1, 2008 in compliance with Public Act 95-634.
12    Class 8. A limited wine-manufacturer may make sales and
13deliveries not to exceed 40,000 gallons of wine per year to
14distributors, and to non-licensees in accordance with the
15provisions of this Act.
16    Class 9. A craft distiller license, which may only be held
17by a class 1 craft distiller licensee or class 2 craft
18distiller licensee but not held by both a class 1 craft
19distiller licensee and a class 2 craft distiller licensee,
20shall grant all rights conveyed by either: (i) a class 1 craft
21distiller license if the craft distiller holds a class 1 craft
22distiller license; or (ii) a class 2 craft distiller licensee
23if the craft distiller holds a class 2 craft distiller license.
24    Class 10. A class 1 craft distiller license, which may only
25be issued to a licensed craft distiller or licensed
26non-resident dealer, shall allow the manufacture of up to

 

 

SB2551- 24 -LRB101 19109 RPS 68572 b

150,000 gallons of spirits per year provided that the class 1
2craft distiller licensee does not manufacture more than a
3combined 50,000 gallons of spirits per year and is not a member
4of or affiliated with, directly or indirectly, a manufacturer
5that produces more than 50,000 gallons of spirits per year or
6any other alcoholic liquor. A class 1 craft distiller licensee
7may make sales and deliveries to importing distributors and
8distributors and to retail licensees in accordance with the
9conditions set forth in paragraph (19) of subsection (a) of
10Section 3-12 of this Act. However, the aggregate amount of
11spirits sold to non-licensees and sold or delivered to retail
12licensees may not exceed 5,000 gallons per year.
13    A class 1 craft distiller licensee may sell up to 5,000
14gallons of such spirits to non-licensees to the extent
15permitted by any exemption approved by the State Commission
16pursuant to Section 6-4 of this Act. A class 1 craft distiller
17license holder may store such spirits at a non-contiguous
18licensed location, but at no time shall a class 1 craft
19distiller license holder directly or indirectly produce in the
20aggregate more than 50,000 gallons of spirits per year.
21    A class 1 craft distiller licensee may hold more than one
22class 1 craft distiller's license. However, a class 1 craft
23distiller that holds more than one class 1 craft distiller
24license shall not manufacture, in the aggregate, more than
2550,000 gallons of spirits by distillation per year and shall
26not sell, in the aggregate, more than 5,000 gallons of such

 

 

SB2551- 25 -LRB101 19109 RPS 68572 b

1spirits to non-licensees in accordance with an exemption
2approved by the State Commission pursuant to Section 6-4 of
3this Act.
4    Class 11. A class 2 craft distiller license, which may only
5be issued to a licensed craft distiller or licensed
6non-resident dealer, shall allow the manufacture of up to
7100,000 gallons of spirits per year provided that the class 2
8craft distiller licensee does not manufacture more than a
9combined 100,000 gallons of spirits per year and is not a
10member of or affiliated with, directly or indirectly, a
11manufacturer that produces more than 100,000 gallons of spirits
12per year or any other alcoholic liquor. A class 2 craft
13distiller licensee may make sales and deliveries to importing
14distributors and distributors, but shall not make sales or
15deliveries to any other licensee. If the State Commission
16provides prior approval, a class 2 craft distiller licensee may
17annually transfer up to 100,000 gallons of spirits manufactured
18by that class 2 craft distiller licensee to the premises of a
19licensed class 2 craft distiller wholly owned and operated by
20the same licensee. A class 2 craft distiller may transfer
21spirits to a distilling pub wholly owned and operated by the
22class 2 craft distiller subject to the following limitations
23and restrictions: (i) the transfer shall not annually exceed
24more than 5,000 gallons; (ii) the annual amount transferred
25shall reduce the distilling pub's annual permitted production
26limit; (iii) all spirits transferred shall be subject to

 

 

SB2551- 26 -LRB101 19109 RPS 68572 b

1Article VIII of this Act; (iv) a written record shall be
2maintained by the distiller and distilling pub specifying the
3amount, date of delivery, and receipt of the product by the
4distilling pub; and (v) the distilling pub shall be located no
5farther than 80 miles from the class 2 craft distiller's
6licensed location.
7    A class 2 craft distiller shall, prior to transferring
8spirits to a distilling pub wholly owned by the class 2 craft
9distiller, furnish a written notice to the State Commission of
10intent to transfer spirits setting forth the name and address
11of the distilling pub and shall annually submit to the State
12Commission a verified report identifying the total gallons of
13spirits transferred to the distilling pub wholly owned by the
14class 2 craft distiller.
15    A class 2 craft distiller license holder may store such
16spirits at a non-contiguous licensed location, but at no time
17shall a class 2 craft distiller license holder directly or
18indirectly produce in the aggregate more than 100,000 gallons
19of spirits per year.
20    Class 12. A class 1 brewer license, which may only be
21issued to a licensed brewer or licensed non-resident dealer,
22shall allow the manufacture of up to 930,000 gallons of beer,
23mead, or both beer and mead per year provided that the class 1
24brewer licensee does not manufacture more than a combined
25930,000 gallons of beer or mead per year and is not a member of
26or affiliated with, directly or indirectly, a manufacturer that

 

 

SB2551- 27 -LRB101 19109 RPS 68572 b

1produces more than 930,000 gallons of beer or mead per year or
2any other alcoholic liquor. A class 1 brewer licensee may make
3sales and deliveries to importing distributors and
4distributors and to retail licensees in accordance with the
5conditions set forth in paragraph (18) of subsection (a) of
6Section 3-12 of this Act. If the State Commission provides
7prior approval, a class 1 brewer may annually transfer up to
8930,000 gallons of beer, mead, or both beer and mead
9manufactured by that class 1 brewer to the premises of a
10licensed class 1 brewer wholly owned and operated by the same
11licensee.
12    Class 13. A class 2 brewer license, which may only be
13issued to a licensed brewer or licensed non-resident dealer,
14shall allow the manufacture of up to 3,720,000 gallons of beer,
15mead, or both beer and mead per year provided that the class 2
16brewer licensee does not manufacture more than a combined
173,720,000 gallons of beer, mead, or both beer and mead per year
18and is not a member of or affiliated with, directly or
19indirectly, a manufacturer that produces more than 3,720,000
20gallons of beer, mead, or both beer and mead per year or any
21other alcoholic liquor. A class 2 brewer licensee may make
22sales and deliveries to importing distributors and
23distributors, but shall not make sales or deliveries to any
24other licensee. If the State Commission provides prior
25approval, a class 2 brewer licensee may annually transfer up to
263,720,000 gallons of beer, mead, or both beer and mead

 

 

SB2551- 28 -LRB101 19109 RPS 68572 b

1manufactured by that class 2 brewer licensee to the premises of
2a licensed class 2 brewer wholly owned and operated by the same
3licensee.
4    A class 2 brewer may transfer beer, mead, or both beer and
5mead to a brew pub wholly owned and operated by the class 2
6brewer subject to the following limitations and restrictions:
7(i) the transfer shall not annually exceed more than 31,000
8gallons; (ii) the annual amount transferred shall reduce the
9brew pub's annual permitted production limit; (iii) all beer
10and mead transferred shall be subject to Article VIII of this
11Act; (iv) a written record shall be maintained by the brewer
12and brew pub specifying the amount, date of delivery, and
13receipt of the product by the brew pub; and (v) the brew pub
14shall be located no farther than 80 miles from the class 2
15brewer's licensed location.
16    A class 2 brewer shall, prior to transferring beer or mead
17to a brew pub wholly owned by the class 2 brewer, furnish a
18written notice to the State Commission of intent to transfer
19beer or mead setting forth the name and address of the brew pub
20and shall annually submit to the State Commission a verified
21report identifying the total gallons of beer and mead
22transferred to the brew pub wholly owned by the class 2 brewer.
23    (a-1) A manufacturer which is licensed in this State to
24make sales or deliveries of alcoholic liquor to licensed
25distributors or importing distributors and which enlists
26agents, representatives, or individuals acting on its behalf

 

 

SB2551- 29 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 30 -LRB101 19109 RPS 68572 b

1to subsection (e) of Section 6-4 of this Act, sell beer, cider,
2mead, or any combination thereof or both beer and cider to
3non-licensees at their breweries; and (iii) the sale of
4vermouth to class 1 craft distillers and class 2 craft
5distillers that, pursuant to subsection (e) of Section 6-4 of
6this Act, sell spirits, vermouth, or both spirits and vermouth
7to non-licensees at their distilleries. No person licensed as a
8distributor shall be granted a non-resident dealer's license.
9    (c) An importing distributor's license may be issued to and
10held by those only who are duly licensed distributors, upon the
11filing of an application by a duly licensed distributor, with
12the Commission and the Commission shall, without the payment of
13any fee, immediately issue such importing distributor's
14license to the applicant, which shall allow the importation of
15alcoholic liquor by the licensee into this State from any point
16in the United States outside this State, and the purchase of
17alcoholic liquor in barrels, casks or other bulk containers and
18the bottling of such alcoholic liquors before resale thereof,
19but all bottles or containers so filled shall be sealed,
20labeled, stamped and otherwise made to comply with all
21provisions, rules and regulations governing manufacturers in
22the preparation and bottling of alcoholic liquors. The
23importing distributor's license shall permit such licensee to
24purchase alcoholic liquor from Illinois licensed non-resident
25dealers and foreign importers only. No person licensed as an
26importing distributor shall be granted a non-resident dealer's

 

 

SB2551- 31 -LRB101 19109 RPS 68572 b

1license.
2    (d) A retailer's license shall allow the licensee to sell
3and offer for sale at retail, only in the premises specified in
4the license, alcoholic liquor for use or consumption, but not
5for resale in any form. Nothing in Public Act 95-634 shall
6deny, limit, remove, or restrict the ability of a holder of a
7retailer's license to transfer, deliver, or ship alcoholic
8liquor to the purchaser for use or consumption subject to any
9applicable local law or ordinance. Any retail license issued to
10a manufacturer shall only permit the manufacturer to sell beer
11at retail on the premises actually occupied by the
12manufacturer. For the purpose of further describing the type of
13business conducted at a retail licensed premises, a retailer's
14licensee may be designated by the State Commission as (i) an on
15premise consumption retailer, (ii) an off premise sale
16retailer, or (iii) a combined on premise consumption and off
17premise sale retailer.
18    Notwithstanding any other provision of this subsection
19(d), a retail licensee may sell alcoholic liquors to a special
20event retailer licensee for resale to the extent permitted
21under subsection (e).
22    (e) A special event retailer's license (not-for-profit)
23shall permit the licensee to purchase alcoholic liquors from an
24Illinois licensed distributor (unless the licensee purchases
25less than $500 of alcoholic liquors for the special event, in
26which case the licensee may purchase the alcoholic liquors from

 

 

SB2551- 32 -LRB101 19109 RPS 68572 b

1a licensed retailer) and shall allow the licensee to sell and
2offer for sale, at retail, alcoholic liquors for use or
3consumption, but not for resale in any form and only at the
4location and on the specific dates designated for the special
5event in the license. An applicant for a special event retailer
6license must (i) furnish with the application: (A) a resale
7number issued under Section 2c of the Retailers' Occupation Tax
8Act or evidence that the applicant is registered under Section
92a of the Retailers' Occupation Tax Act, (B) a current, valid
10exemption identification number issued under Section 1g of the
11Retailers' Occupation Tax Act, and a certification to the
12Commission that the purchase of alcoholic liquors will be a
13tax-exempt purchase, or (C) a statement that the applicant is
14not registered under Section 2a of the Retailers' Occupation
15Tax Act, does not hold a resale number under Section 2c of the
16Retailers' Occupation Tax Act, and does not hold an exemption
17number under Section 1g of the Retailers' Occupation Tax Act,
18in which event the Commission shall set forth on the special
19event retailer's license a statement to that effect; (ii)
20submit with the application proof satisfactory to the State
21Commission that the applicant will provide dram shop liability
22insurance in the maximum limits; and (iii) show proof
23satisfactory to the State Commission that the applicant has
24obtained local authority approval.
25    Nothing in this Act prohibits an Illinois licensed
26distributor from offering credit or a refund for unused,

 

 

SB2551- 33 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 34 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 35 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 36 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 37 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 38 -LRB101 19109 RPS 68572 b

1    (ii) A broker's license shall be required of a person
2within this State, other than a retail licensee, who, for a fee
3or commission, promotes, solicits, or accepts orders for
4alcoholic liquor, for use or consumption and not for resale, to
5be shipped from this State and delivered to residents outside
6of this State by an express company, common carrier, or
7contract carrier. This Section does not apply to any person who
8promotes, solicits, or accepts orders for wine as specifically
9authorized in Section 6-29 of this Act.
10    A broker's license under this subsection (l) shall not
11entitle the holder to buy or sell any alcoholic liquors for his
12own account or to take or deliver title to such alcoholic
13liquors.
14    This subsection (l) shall not apply to distributors,
15employees of distributors, or employees of a manufacturer who
16has registered the trademark, brand or name of the alcoholic
17liquor pursuant to Section 6-9 of this Act, and who regularly
18sells such alcoholic liquor in the State of Illinois only to
19its registrants thereunder.
20    Any agent, representative, or person subject to
21registration pursuant to subsection (a-1) of this Section shall
22not be eligible to receive a broker's license.
23    (m) A non-resident dealer's license shall permit such
24licensee to ship into and warehouse alcoholic liquor into this
25State from any point outside of this State, and to sell such
26alcoholic liquor to Illinois licensed foreign importers and

 

 

SB2551- 39 -LRB101 19109 RPS 68572 b

1importing distributors and to no one else in this State;
2provided that (i) said non-resident dealer shall register with
3the Illinois Liquor Control Commission each and every brand of
4alcoholic liquor which it proposes to sell to Illinois
5licensees during the license period, (ii) it shall comply with
6all of the provisions of Section 6-9 hereof with respect to
7registration of such Illinois licensees as may be granted the
8right to sell such brands at wholesale by duly filing such
9registration statement, thereby authorizing the non-resident
10dealer to proceed to sell such brands at wholesale, and (iii)
11the non-resident dealer shall comply with the provisions of
12Sections 6-5 and 6-6 of this Act to the same extent that these
13provisions apply to manufacturers. No person licensed as a
14non-resident dealer shall be granted a distributor's or
15importing distributor's license.
16    (n) A brew pub license shall allow the licensee to only (i)
17manufacture up to 155,000 gallons of beer per year only on the
18premises specified in the license, (ii) make sales of the beer
19manufactured on the premises or, with the approval of the
20Commission, beer manufactured on another brew pub licensed
21premises that is wholly owned and operated by the same licensee
22to importing distributors, distributors, and to non-licensees
23for use and consumption, (iii) store the beer upon the
24premises, (iv) sell and offer for sale at retail from the
25licensed premises for off-premises consumption no more than
26155,000 gallons per year so long as such sales are only made

 

 

SB2551- 40 -LRB101 19109 RPS 68572 b

1in-person, (v) sell and offer for sale at retail for use and
2consumption on the premises specified in the license any form
3of alcoholic liquor purchased from a licensed distributor or
4importing distributor, (vi) with the prior approval of the
5Commission, annually transfer no more than 155,000 gallons of
6beer manufactured on the premises to a licensed brew pub wholly
7owned and operated by the same licensee, and (vii)
8notwithstanding item (i) of this subsection, brew pubs wholly
9owned and operated by the same licensee may combine each
10location's production limit of 155,000 gallons of beer per year
11and allocate the aggregate total between the wholly owned,
12operated, and licensed locations.
13    A brew pub licensee shall not under any circumstance sell
14or offer for sale beer manufactured by the brew pub licensee to
15retail licensees.
16    A person who holds a class 2 brewer license may
17simultaneously hold a brew pub license if the class 2 brewer
18(i) does not, under any circumstance, sell or offer for sale
19beer manufactured by the class 2 brewer to retail licensees;
20(ii) does not hold more than 3 brew pub licenses in this State;
21(iii) does not manufacture more than a combined 3,720,000
22gallons of beer, mead, or both beer and mead per year,
23including the beer manufactured at the brew pub; and (iv) is
24not a member of or affiliated with, directly or indirectly, a
25manufacturer that produces more than 3,720,000 gallons of beer,
26mead, or both beer and mead per year or any other alcoholic

 

 

SB2551- 41 -LRB101 19109 RPS 68572 b

1liquor.
2    Notwithstanding any other provision of this Act, a licensed
3brewer, class 2 brewer, or non-resident dealer who before July
41, 2015 manufactured less than 3,720,000 gallons of beer per
5year and held a brew pub license on or before July 1, 2015 may
6(i) continue to qualify for and hold that brew pub license for
7the licensed premises and (ii) manufacture more than 3,720,000
8gallons of beer per year and continue to qualify for and hold
9that brew pub license if that brewer, class 2 brewer, or
10non-resident dealer does not simultaneously hold a class 1
11brewer license and is not a member of or affiliated with,
12directly or indirectly, a manufacturer that produces more than
133,720,000 gallons of beer per year or that produces any other
14alcoholic liquor.
15    (o) A caterer retailer license shall allow the holder to
16serve alcoholic liquors as an incidental part of a food service
17that serves prepared meals which excludes the serving of snacks
18as the primary meal, either on or off-site whether licensed or
19unlicensed. A caterer retailer license shall allow the holder,
20a distributor, or an importing distributor to transfer any
21inventory to and from the holder's retail premises and shall
22allow the holder to purchase alcoholic liquor from a
23distributor or importing distributor to be delivered directly
24to an off-site event.
25    Nothing in this Act prohibits a distributor or importing
26distributor from offering credit or a refund for unused,

 

 

SB2551- 42 -LRB101 19109 RPS 68572 b

1salable beer to a holder of a caterer retailer license or a
2caterer retailer licensee from accepting a credit or refund for
3unused, salable beer, in the event an act of God is the sole
4reason an off-site event is cancelled and if: (i) the holder of
5a caterer retailer license has not transferred alcoholic liquor
6from its caterer retailer premises to an off-site location;
7(ii) the distributor or importing distributor offers the credit
8or refund for the unused, salable beer that it delivered to the
9off-site premises and not for any unused, salable beer that the
10distributor or importing distributor delivered to the caterer
11retailer's premises; and (iii) the unused, salable beer would
12likely spoil if transferred to the caterer retailer's premises.
13A caterer retailer license shall allow the holder to transfer
14any inventory from any off-site location to its caterer
15retailer premises at the conclusion of an off-site event or
16engage a distributor or importing distributor to transfer any
17inventory from any off-site location to its caterer retailer
18premises at the conclusion of an off-site event, provided that
19the distributor or importing distributor issues bona fide
20charges to the caterer retailer licensee for fuel, labor, and
21delivery and the distributor or importing distributor collects
22payment from the caterer retailer licensee prior to the
23distributor or importing distributor transferring inventory to
24the caterer retailer premises.
25    For purposes of this subsection (o), an "act of God" means
26an unforeseeable event, such as a rain or snow storm, hail, a

 

 

SB2551- 43 -LRB101 19109 RPS 68572 b

1flood, or a similar event, that is the sole cause of the
2cancellation of an off-site, outdoor event.
3    (p) An auction liquor license shall allow the licensee to
4sell and offer for sale at auction wine and spirits for use or
5consumption, or for resale by an Illinois liquor licensee in
6accordance with provisions of this Act. An auction liquor
7license will be issued to a person and it will permit the
8auction liquor licensee to hold the auction anywhere in the
9State. An auction liquor license must be obtained for each
10auction at least 14 days in advance of the auction date.
11    (q) A special use permit license shall allow an Illinois
12licensed retailer to transfer a portion of its alcoholic liquor
13inventory from its retail licensed premises to the premises
14specified in the license hereby created; to purchase alcoholic
15liquor from a distributor or importing distributor to be
16delivered directly to the location specified in the license
17hereby created; and to sell or offer for sale at retail, only
18in the premises specified in the license hereby created, the
19transferred or delivered alcoholic liquor for use or
20consumption, but not for resale in any form. A special use
21permit license may be granted for the following time periods:
22one day or less; 2 or more days to a maximum of 15 days per
23location in any 12-month period. An applicant for the special
24use permit license must also submit with the application proof
25satisfactory to the State Commission that the applicant will
26provide dram shop liability insurance to the maximum limits and

 

 

SB2551- 44 -LRB101 19109 RPS 68572 b

1have local authority approval.
2    A special use permit license shall allow the holder to
3transfer any inventory from the holder's special use premises
4to its retail premises at the conclusion of the special use
5event or engage a distributor or importing distributor to
6transfer any inventory from the holder's special use premises
7to its retail premises at the conclusion of an off-site event,
8provided that the distributor or importing distributor issues
9bona fide charges to the special use permit licensee for fuel,
10labor, and delivery and the distributor or importing
11distributor collects payment from the retail licensee prior to
12the distributor or importing distributor transferring
13inventory to the retail premises.
14    Nothing in this Act prohibits a distributor or importing
15distributor from offering credit or a refund for unused,
16salable beer to a special use permit licensee or a special use
17permit licensee from accepting a credit or refund for unused,
18salable beer at the conclusion of the event specified in the
19license if: (i) the holder of the special use permit license
20has not transferred alcoholic liquor from its retail licensed
21premises to the premises specified in the special use permit
22license; (ii) the distributor or importing distributor offers
23the credit or refund for the unused, salable beer that it
24delivered to the premises specified in the special use permit
25license and not for any unused, salable beer that the
26distributor or importing distributor delivered to the

 

 

SB2551- 45 -LRB101 19109 RPS 68572 b

1retailer's premises; and (iii) the unused, salable beer would
2likely spoil if transferred to the retailer premises.
3    (r) A winery shipper's license shall allow a person with a
4first-class or second-class wine manufacturer's license, a
5first-class or second-class wine-maker's license, or a limited
6wine manufacturer's license or who is licensed to make wine
7under the laws of another state to ship wine made by that
8licensee directly to a resident of this State who is 21 years
9of age or older for that resident's personal use and not for
10resale. Prior to receiving a winery shipper's license, an
11applicant for the license must provide the Commission with a
12true copy of its current license in any state in which it is
13licensed as a manufacturer of wine. An applicant for a winery
14shipper's license must also complete an application form that
15provides any other information the Commission deems necessary.
16The application form shall include all addresses from which the
17applicant for a winery shipper's license intends to ship wine,
18including the name and address of any third party, except for a
19common carrier, authorized to ship wine on behalf of the
20manufacturer. The application form shall include an
21acknowledgement consenting to the jurisdiction of the
22Commission, the Illinois Department of Revenue, and the courts
23of this State concerning the enforcement of this Act and any
24related laws, rules, and regulations, including authorizing
25the Department of Revenue and the Commission to conduct audits
26for the purpose of ensuring compliance with Public Act 95-634,

 

 

SB2551- 46 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 47 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 48 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 49 -LRB101 19109 RPS 68572 b

1winery shipper and shipped to persons in this State, the winery
2shipper's license shall be revoked in accordance with the
3provisions of Article VII of this Act.
4    A winery shipper licensee must collect, maintain, and
5submit to the Commission on a semi-annual basis the total
6number of cases per resident of wine shipped to residents of
7this State. A winery shipper licensed under this subsection (r)
8must comply with the requirements of Section 6-29 of this Act.
9    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
10Section 3-12, the State Commission may receive, respond to, and
11investigate any complaint and impose any of the remedies
12specified in paragraph (1) of subsection (a) of Section 3-12.
13    As used in this subsection, "third-party provider" means
14any entity that provides fulfillment house services, including
15warehousing, packaging, distribution, order processing, or
16shipment of wine, but not the sale of wine, on behalf of a
17licensed winery shipper.
18    (s) A craft distiller tasting permit license shall allow an
19Illinois licensed class 1 craft distiller or class 2 craft
20distiller to transfer a portion of its alcoholic liquor
21inventory from its class 1 craft distiller or class 2 craft
22distiller licensed premises to the premises specified in the
23license hereby created and to conduct a sampling, only in the
24premises specified in the license hereby created, of the
25transferred alcoholic liquor in accordance with subsection (c)
26of Section 6-31 of this Act. The transferred alcoholic liquor

 

 

SB2551- 50 -LRB101 19109 RPS 68572 b

1may not be sold or resold in any form. An applicant for the
2craft distiller tasting permit license must also submit with
3the application proof satisfactory to the State Commission that
4the applicant will provide dram shop liability insurance to the
5maximum limits and have local authority approval.
6    (t) A brewer warehouse permit may be issued to the holder
7of a class 1 brewer license or a class 2 brewer license. If the
8holder of the permit is a class 1 brewer licensee, the brewer
9warehouse permit shall allow the holder to store or warehouse
10up to 930,000 gallons of tax-determined beer and mead
11manufactured by the holder of the permit at the premises
12specified on the permit. If the holder of the permit is a class
132 brewer licensee, the brewer warehouse permit shall allow the
14holder to store or warehouse up to 3,720,000 gallons of
15tax-determined beer and mead manufactured by the holder of the
16permit at the premises specified on the permit. Sales to
17non-licensees are prohibited at the premises specified in the
18brewer warehouse permit.
19    (u) A distilling pub license shall allow the licensee to
20only (i) manufacture up to 5,000 gallons of spirits per year
21only on the premises specified in the license, (ii) make sales
22of the spirits manufactured on the premises or, with the
23approval of the State Commission, spirits manufactured on
24another distilling pub licensed premises that is wholly owned
25and operated by the same licensee to importing distributors and
26distributors and to non-licensees for use and consumption,

 

 

SB2551- 51 -LRB101 19109 RPS 68572 b

1(iii) store the spirits upon the premises, (iv) sell and offer
2for sale at retail from the licensed premises for off-premises
3consumption no more than 5,000 gallons per year so long as such
4sales are only made in-person, (v) sell and offer for sale at
5retail for use and consumption on the premises specified in the
6license any form of alcoholic liquor purchased from a licensed
7distributor or importing distributor, and (vi) with the prior
8approval of the State Commission, annually transfer no more
9than 5,000 gallons of spirits manufactured on the premises to a
10licensed distilling pub wholly owned and operated by the same
11licensee.
12    A distilling pub licensee shall not under any circumstance
13sell or offer for sale spirits manufactured by the distilling
14pub licensee to retail licensees.
15    A person who holds a class 2 craft distiller license may
16simultaneously hold a distilling pub license if the class 2
17craft distiller (i) does not, under any circumstance, sell or
18offer for sale spirits manufactured by the class 2 craft
19distiller to retail licensees; (ii) does not hold more than 3
20distilling pub licenses in this State; (iii) does not
21manufacture more than a combined 100,000 gallons of spirits per
22year, including the spirits manufactured at the distilling pub;
23and (iv) is not a member of or affiliated with, directly or
24indirectly, a manufacturer that produces more than 100,000
25gallons of spirits per year or any other alcoholic liquor.
26    (v) A craft distiller warehouse permit may be issued to the

 

 

SB2551- 52 -LRB101 19109 RPS 68572 b

1holder of a class 1 craft distiller or class 2 craft distiller
2license. The craft distiller warehouse permit shall allow the
3holder to store or warehouse up to 500,000 gallons of spirits
4manufactured by the holder of the permit at the premises
5specified on the permit. Sales to non-licensees are prohibited
6at the premises specified in the craft distiller warehouse
7permit.
8(Source: P.A. 100-17, eff. 6-30-17; 100-201, eff. 8-18-17;
9100-816, eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff.
108-23-18; 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; 101-81,
11eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. 8-23-19;
12101-615, eff. 12-20-19.)
 
13    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
14    Sec. 6-4. (a) No person licensed by any licensing authority
15as a distiller, or a wine manufacturer, or any subsidiary or
16affiliate thereof, or any officer, associate, member, partner,
17representative, employee, agent or shareholder owning more
18than 5% of the outstanding shares of such person shall be
19issued an importing distributor's or distributor's license,
20nor shall any person licensed by any licensing authority as an
21importing distributor, distributor or retailer, or any
22subsidiary or affiliate thereof, or any officer or associate,
23member, partner, representative, employee, agent or
24shareholder owning more than 5% of the outstanding shares of
25such person be issued a distiller's license, a craft

 

 

SB2551- 53 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 54 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 55 -LRB101 19109 RPS 68572 b

1distiller, or subsidiaries or affiliates of such distiller.
2    (e) Any person licensed as a brewer, class 1 brewer, or
3class 2 brewer shall be permitted to sell on the licensed
4premises to non-licensees for on or off-premises consumption
5for the premises in which he or she actually conducts such
6business: (i) beer manufactured by the brewer, class 1 brewer,
7or class 2 brewer; (ii) beer manufactured by any other brewer,
8class 1 brewer, or class 2 brewer; and (iii) cider; and (iv)
9mead. Such sales shall be limited to on-premises, in-person
10sales only, for lawful consumption on or off premises. Such
11authorization shall be considered a privilege granted by the
12brewer license and, other than a manufacturer of beer as stated
13above, no manufacturer or distributor or importing
14distributor, excluding airplane licensees exercising powers
15provided in paragraph (i) of Section 5-1 of this Act, or any
16subsidiary or affiliate thereof, or any officer, associate,
17member, partner, representative, employee or agent, or
18shareholder shall be issued a retailer's license, nor shall any
19person having a retailer's license, excluding airplane
20licensees exercising powers provided in paragraph (i) of
21Section 5-1 of this Act, or any subsidiary or affiliate
22thereof, or any officer, associate, member, partner,
23representative or agent, or shareholder be issued a
24manufacturer's license or importing distributor's license.
25    A manufacturer of beer that imports or transfers beer into
26this State must comply with Sections 6-8 and 8-1 of this Act.

 

 

SB2551- 56 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 57 -LRB101 19109 RPS 68572 b

1Section 6-21 of this Act.
2    A class 1 craft distiller or class 2 craft distiller
3license holder shall not deliver any alcoholic liquor to any
4non-licensee off the licensed premises. A class 1 craft
5distiller or class 2 craft distiller shall affirm in its annual
6license application that it does not produce more than 50,000
7or 100,000 gallons of distilled spirits annually, whichever is
8applicable, and that the craft distiller does not sell more
9than 5,000 gallons of spirits to non-licensees for on or
10off-premises consumption. In the application, which shall be
11sworn under penalty of perjury, the class 1 craft distiller or
12class 2 craft distiller shall state the volume of production
13and sales for each year since the class 1 craft distiller's or
14class 2 craft distiller's establishment.
15    A person who holds a class 1 craft distiller or class 2
16craft distiller license and is authorized by this Section to
17sell spirits to non-licensees shall not sell spirits to
18non-licensees from more than 3 total distillery or commonly
19owned distilling pub licensed locations in this State. The
20class 1 craft distiller or class 2 craft distiller shall
21designate to the State Commission the distillery or distilling
22pub locations from which it will sell spirits to non-licensees.
23    (f) (Blank).
24    (g) Notwithstanding any of the foregoing prohibitions, a
25limited wine manufacturer may sell at retail at its
26manufacturing site for on or off premises consumption and may

 

 

SB2551- 58 -LRB101 19109 RPS 68572 b

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

 

 

SB2551- 59 -LRB101 19109 RPS 68572 b

1before February 18, 2015, or thereafter, or in the affidavit
2filed by that person with the State Commission to support the
3issuance of a retail license and to abide by all applicable
4laws and duly adopted rules.
5(Source: P.A. 100-201, eff. 8-18-17; 100-816, eff. 8-13-18;
6100-885, eff. 8-14-18; 101-81, eff. 7-12-19; 101-482, eff.
78-23-19; 101-615, eff. 12-20-19.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.