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| | 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB3655 Introduced 2/5/2026, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED: | | | Amends the Liquor Control Act of 1934. Provides that the maximum fine that may be levied against any licensee shall not exceed $20,000 per violation (instead of the maximum fine that may be levied against any licensee, for the period of the license, shall not exceed $20,000). Makes a conforming change. Effective immediately. |
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| | A BILL FOR |
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| | SB3655 | | LRB104 19974 RPS 33425 b |
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| 1 | | AN ACT concerning liquor. |
| 2 | | Be it enacted by the People of the State of Illinois, |
| 3 | | represented in the General Assembly: |
| 4 | | Section 5. The Liquor Control Act of 1934 is amended by |
| 5 | | changing Section 3-12 as follows: |
| 6 | | (235 ILCS 5/3-12) |
| 7 | | (Text of Section before amendment by P.A. 104-451) |
| 8 | | Sec. 3-12. Powers and duties of State Commission. |
| 9 | | (a) The State Commission shall have the following powers, |
| 10 | | functions, and duties: |
| 11 | | (1) To receive applications and to issue licenses to |
| 12 | | manufacturers, foreign importers, importing distributors, |
| 13 | | distributors, non-resident dealers, on premise consumption |
| 14 | | retailers, off premise sale retailers, special event |
| 15 | | retailer licensees, special use permit licenses, auction |
| 16 | | liquor licenses, brew pubs, caterer retailers, |
| 17 | | non-beverage users, railroads, including owners and |
| 18 | | lessees of sleeping, dining and cafe cars, airplanes, |
| 19 | | boats, brokers, and wine maker's premises licensees in |
| 20 | | accordance with the provisions of this Act, and to suspend |
| 21 | | or revoke such licenses upon the State Commission's |
| 22 | | determination, upon notice after hearing, that a licensee |
| 23 | | has violated any provision of this Act or any rule or |
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| | SB3655 | - 2 - | LRB104 19974 RPS 33425 b |
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| 1 | | regulation issued pursuant thereto and in effect for 30 |
| 2 | | days prior to such violation. Except in the case of an |
| 3 | | action taken pursuant to a violation of Section 6-3, 6-5, |
| 4 | | or 6-9, any action by the State Commission to suspend or |
| 5 | | revoke a licensee's license may be limited to the license |
| 6 | | for the specific premises where the violation occurred. An |
| 7 | | action for a violation of this Act shall be commenced by |
| 8 | | the State Commission within 2 years after the date the |
| 9 | | State Commission becomes aware of the violation. |
| 10 | | In lieu of suspending or revoking a license, the |
| 11 | | commission may impose a fine, upon the State Commission's |
| 12 | | determination and notice after hearing, that a licensee |
| 13 | | has violated any provision of this Act or any rule or |
| 14 | | regulation issued pursuant thereto and in effect for 30 |
| 15 | | days prior to such violation. |
| 16 | | For the purpose of this paragraph (1), when |
| 17 | | determining multiple violations for the sale of alcohol to |
| 18 | | a person under the age of 21, a second or subsequent |
| 19 | | violation for the sale of alcohol to a person under the age |
| 20 | | of 21 shall only be considered if it was committed within 5 |
| 21 | | years after the date when a prior violation for the sale of |
| 22 | | alcohol to a person under the age of 21 was committed. |
| 23 | | The fine imposed under this paragraph may not exceed |
| 24 | | $500 for each violation. Each day that the activity, which |
| 25 | | gave rise to the original fine, continues is a separate |
| 26 | | violation. The maximum fine that may be levied against any |
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| | SB3655 | - 3 - | LRB104 19974 RPS 33425 b |
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| 1 | | licensee, for the period of the license, shall not exceed |
| 2 | | $20,000 per violation. The maximum penalty that may be |
| 3 | | imposed on a licensee for selling a bottle of alcoholic |
| 4 | | liquor with a foreign object in it or serving from a bottle |
| 5 | | of alcoholic liquor with a foreign object in it shall be |
| 6 | | the destruction of that bottle of alcoholic liquor for the |
| 7 | | first 10 bottles so sold or served from by the licensee. |
| 8 | | For the eleventh bottle of alcoholic liquor and for each |
| 9 | | third bottle thereafter sold or served from by the |
| 10 | | licensee with a foreign object in it, the maximum penalty |
| 11 | | that may be imposed on the licensee is the destruction of |
| 12 | | the bottle of alcoholic liquor and a fine of up to $50. |
| 13 | | Any notice issued by the State Commission to a |
| 14 | | licensee for a violation of this Act or any notice with |
| 15 | | respect to settlement or offer in compromise shall include |
| 16 | | the field report, photographs, and any other supporting |
| 17 | | documentation necessary to reasonably inform the licensee |
| 18 | | of the nature and extent of the violation or the conduct |
| 19 | | alleged to have occurred. The failure to include such |
| 20 | | required documentation shall result in the dismissal of |
| 21 | | the action. |
| 22 | | (2) To adopt such rules and regulations consistent |
| 23 | | with the provisions of this Act which shall be necessary |
| 24 | | to carry on its functions and duties to the end that the |
| 25 | | health, safety and welfare of the People of the State of |
| 26 | | Illinois shall be protected and temperance in the |
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| | SB3655 | - 4 - | LRB104 19974 RPS 33425 b |
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| 1 | | consumption of alcoholic liquors shall be fostered and |
| 2 | | promoted and to distribute copies of such rules and |
| 3 | | regulations to all licensees affected thereby. |
| 4 | | (3) To call upon other administrative departments of |
| 5 | | the State, county and municipal governments, county and |
| 6 | | city police departments and upon prosecuting officers for |
| 7 | | such information and assistance as it deems necessary in |
| 8 | | the performance of its duties. |
| 9 | | (4) To recommend to local commissioners rules and |
| 10 | | regulations, not inconsistent with the law, for the |
| 11 | | distribution and sale of alcoholic liquors throughout the |
| 12 | | State. |
| 13 | | (5) To inspect, or cause to be inspected, any premises |
| 14 | | in this State where alcoholic liquors are manufactured, |
| 15 | | distributed, warehoused, or sold. Nothing in this Act |
| 16 | | authorizes an agent of the State Commission to inspect |
| 17 | | private areas within the premises without reasonable |
| 18 | | suspicion or a warrant during an inspection. "Private |
| 19 | | areas" include, but are not limited to, safes, personal |
| 20 | | property, and closed desks. |
| 21 | | (5.1) Upon receipt of a complaint or upon having |
| 22 | | knowledge that any person is engaged in business as a |
| 23 | | manufacturer, importing distributor, distributor, or |
| 24 | | retailer without a license or valid license, to conduct an |
| 25 | | investigation. If, after conducting an investigation, the |
| 26 | | State Commission is satisfied that the alleged conduct |
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| | SB3655 | - 5 - | LRB104 19974 RPS 33425 b |
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| 1 | | occurred or is occurring, it may issue a cease and desist |
| 2 | | notice as provided in this Act, impose civil penalties as |
| 3 | | provided in this Act, notify the local liquor authority, |
| 4 | | or file a complaint with the State's Attorney's Office of |
| 5 | | the county where the incident occurred or the Attorney |
| 6 | | General. |
| 7 | | (5.2) Upon receipt of a complaint or upon having |
| 8 | | knowledge that any person is shipping alcoholic liquor |
| 9 | | into this State from a point outside of this State if the |
| 10 | | shipment is in violation of this Act, to conduct an |
| 11 | | investigation. If, after conducting an investigation, the |
| 12 | | State Commission is satisfied that the alleged conduct |
| 13 | | occurred or is occurring, it may issue a cease and desist |
| 14 | | notice as provided in this Act, impose civil penalties as |
| 15 | | provided in this Act, notify the foreign jurisdiction, or |
| 16 | | file a complaint with the State's Attorney's Office of the |
| 17 | | county where the incident occurred or the Attorney |
| 18 | | General. |
| 19 | | (5.3) To receive complaints from licensees, local |
| 20 | | officials, law enforcement agencies, organizations, and |
| 21 | | persons stating that any licensee has been or is violating |
| 22 | | any provision of this Act or the rules and regulations |
| 23 | | issued pursuant to this Act. Such complaints shall be in |
| 24 | | writing, signed and sworn to by the person making the |
| 25 | | complaint, and shall state with specificity the facts in |
| 26 | | relation to the alleged violation. If the State Commission |
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| | SB3655 | - 6 - | LRB104 19974 RPS 33425 b |
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| 1 | | has reasonable grounds to believe that the complaint |
| 2 | | substantially alleges a violation of this Act or rules and |
| 3 | | regulations adopted pursuant to this Act, it shall conduct |
| 4 | | an investigation. If, after conducting an investigation, |
| 5 | | the State Commission is satisfied that the alleged |
| 6 | | violation did occur, it shall proceed with disciplinary |
| 7 | | action against the licensee as provided in this Act. |
| 8 | | (5.4) To make arrests and issue notices of civil |
| 9 | | violations where necessary for the enforcement of this |
| 10 | | Act. |
| 11 | | (5.5) To investigate any and all unlicensed activity. |
| 12 | | (5.6) To impose civil penalties or fines to any person |
| 13 | | who, without holding a valid license, engages in conduct |
| 14 | | that requires a license pursuant to this Act, in an amount |
| 15 | | not to exceed $20,000 for each offense as determined by |
| 16 | | the State Commission. A civil penalty shall be assessed by |
| 17 | | the State Commission after a hearing is held in accordance |
| 18 | | with the provisions set forth in this Act regarding the |
| 19 | | provision of a hearing for the revocation or suspension of |
| 20 | | a license. |
| 21 | | (6) To hear and determine appeals from orders of a |
| 22 | | local commission in accordance with the provisions of this |
| 23 | | Act, as hereinafter set forth. Hearings under this |
| 24 | | subsection shall be held in Springfield or Chicago, at |
| 25 | | whichever location is the more convenient for the majority |
| 26 | | of persons who are parties to the hearing. |
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| | SB3655 | - 7 - | LRB104 19974 RPS 33425 b |
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| 1 | | (7) The State Commission shall establish uniform |
| 2 | | systems of accounts to be kept by all retail licensees |
| 3 | | having more than 4 employees, and for this purpose the |
| 4 | | State Commission may classify all retail licensees having |
| 5 | | more than 4 employees and establish a uniform system of |
| 6 | | accounts for each class and prescribe the manner in which |
| 7 | | such accounts shall be kept. The State Commission may also |
| 8 | | prescribe the forms of accounts to be kept by all retail |
| 9 | | licensees having more than 4 employees, including, but not |
| 10 | | limited to, accounts of earnings and expenses and any |
| 11 | | distribution, payment, or other distribution of earnings |
| 12 | | or assets, and any other forms, records, and memoranda |
| 13 | | which in the judgment of the commission may be necessary |
| 14 | | or appropriate to carry out any of the provisions of this |
| 15 | | Act, including, but not limited to, such forms, records, |
| 16 | | and memoranda as will readily and accurately disclose at |
| 17 | | all times the beneficial ownership of such retail licensed |
| 18 | | business. The accounts, forms, records, and memoranda |
| 19 | | shall be available at all reasonable times for inspection |
| 20 | | by authorized representatives of the State Commission or |
| 21 | | by any local liquor control commissioner or his or her |
| 22 | | authorized representative. The commission may, from time |
| 23 | | to time, alter, amend, or repeal, in whole or in part, any |
| 24 | | uniform system of accounts, or the form and manner of |
| 25 | | keeping accounts. |
| 26 | | (8) In the conduct of any hearing authorized to be |
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| | SB3655 | - 8 - | LRB104 19974 RPS 33425 b |
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| 1 | | held by the State Commission, to appoint, at the |
| 2 | | commission's discretion, hearing officers to conduct |
| 3 | | hearings involving complex issues or issues that will |
| 4 | | require a protracted period of time to resolve, to |
| 5 | | examine, or cause to be examined, under oath, any |
| 6 | | licensee, and to examine or cause to be examined the books |
| 7 | | and records of such licensee; to hear testimony and take |
| 8 | | proof material for its information in the discharge of its |
| 9 | | duties hereunder; to administer or cause to be |
| 10 | | administered oaths; for any such purpose to issue subpoena |
| 11 | | or subpoenas to require the attendance of witnesses and |
| 12 | | the production of books, which shall be effective in any |
| 13 | | part of this State, and to adopt rules to implement its |
| 14 | | powers under this paragraph (8). |
| 15 | | Any circuit court may, by order duly entered, require |
| 16 | | the attendance of witnesses and the production of relevant |
| 17 | | books subpoenaed by the State Commission and the court may |
| 18 | | compel obedience to its order by proceedings for contempt. |
| 19 | | (9) To investigate the administration of laws in |
| 20 | | relation to alcoholic liquors in this and other states and |
| 21 | | any foreign countries, and to recommend from time to time |
| 22 | | to the Governor and through him or her to the legislature |
| 23 | | of this State, such amendments to this Act, if any, as it |
| 24 | | may think desirable and as will serve to further the |
| 25 | | general broad purposes contained in Section 1-2 hereof. |
| 26 | | (10) To adopt such rules and regulations consistent |
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| | SB3655 | - 9 - | LRB104 19974 RPS 33425 b |
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| 1 | | with the provisions of this Act which shall be necessary |
| 2 | | for the control, sale, or disposition of alcoholic liquor |
| 3 | | damaged as a result of an accident, wreck, flood, fire, or |
| 4 | | other similar occurrence. |
| 5 | | (11) To develop industry educational programs related |
| 6 | | to responsible serving and selling, particularly in the |
| 7 | | areas of overserving consumers and illegal underage |
| 8 | | purchasing and consumption of alcoholic beverages. |
| 9 | | (11.1) To license persons providing education and |
| 10 | | training to alcohol beverage sellers and servers for |
| 11 | | mandatory and non-mandatory training under the Beverage |
| 12 | | Alcohol Sellers and Servers Education and Training |
| 13 | | (BASSET) programs and to develop and administer a public |
| 14 | | awareness program in Illinois to reduce or eliminate the |
| 15 | | illegal purchase and consumption of alcoholic beverage |
| 16 | | products by persons under the age of 21. Application for a |
| 17 | | license shall be made on forms provided by the State |
| 18 | | Commission. |
| 19 | | (12) To develop and maintain a repository of license |
| 20 | | and regulatory information. |
| 21 | | (13) (Blank). |
| 22 | | (14) On or before April 30, 2008 and every 2 years |
| 23 | | thereafter, the State Commission shall present a written |
| 24 | | report to the Governor and the General Assembly that shall |
| 25 | | be based on a study of the impact of Public Act 95-634 on |
| 26 | | the business of soliciting, selling, and shipping wine |
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| | SB3655 | - 10 - | LRB104 19974 RPS 33425 b |
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| 1 | | from inside and outside of this State directly to |
| 2 | | residents of this State. As part of its report, the State |
| 3 | | Commission shall provide all of the following information: |
| 4 | | (A) The amount of State excise and sales tax |
| 5 | | revenues generated. |
| 6 | | (B) The amount of licensing fees received. |
| 7 | | (C) The number of cases of wine shipped from |
| 8 | | inside and outside of this State directly to residents |
| 9 | | of this State. |
| 10 | | (D) The number of alcohol compliance operations |
| 11 | | conducted. |
| 12 | | (E) The number of winery shipper's licenses |
| 13 | | issued. |
| 14 | | (F) The number of each of the following: reported |
| 15 | | violations; cease and desist notices issued by the |
| 16 | | Commission; notices of violations issued by the |
| 17 | | Commission and to the Department of Revenue; and |
| 18 | | notices and complaints of violations to law |
| 19 | | enforcement officials, including, without limitation, |
| 20 | | the Illinois Attorney General and the U.S. Department |
| 21 | | of Treasury's Alcohol and Tobacco Tax and Trade |
| 22 | | Bureau. |
| 23 | | (15) As a means to reduce the underage consumption of |
| 24 | | alcoholic liquors, the State Commission shall conduct |
| 25 | | alcohol compliance operations to investigate whether |
| 26 | | businesses that are soliciting, selling, and shipping wine |
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| | SB3655 | - 11 - | LRB104 19974 RPS 33425 b |
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| 1 | | from inside or outside of this State directly to residents |
| 2 | | of this State are licensed by this State or are selling or |
| 3 | | attempting to sell wine to persons under 21 years of age in |
| 4 | | violation of this Act. |
| 5 | | (16) The State Commission shall, in addition to |
| 6 | | notifying any appropriate law enforcement agency, submit |
| 7 | | notices of complaints or violations of Sections 6-29 and |
| 8 | | 6-29.1 by persons who do not hold a winery shipper's |
| 9 | | license under this Act to the Illinois Attorney General |
| 10 | | and to the U.S. Department of Treasury's Alcohol and |
| 11 | | Tobacco Tax and Trade Bureau. |
| 12 | | (17)(A) A person licensed to make wine under the laws |
| 13 | | of another state who has a winery shipper's license under |
| 14 | | this Act and annually produces less than 25,000 gallons of |
| 15 | | wine or a person who has a first-class or second-class |
| 16 | | wine manufacturer's license, a first-class or second-class |
| 17 | | wine-maker's license, or a limited wine manufacturer's |
| 18 | | license under this Act and annually produces less than |
| 19 | | 25,000 gallons of wine may make application to the |
| 20 | | Commission for a self-distribution exemption to allow the |
| 21 | | sale of not more than 5,000 gallons of the exemption |
| 22 | | holder's wine to retail licensees per year and to sell |
| 23 | | cider, mead, or both cider and mead to brewers, class 1 |
| 24 | | brewers, class 2 brewers, and class 3 brewers that, |
| 25 | | pursuant to subsection (e) of Section 6-4 of this Act, |
| 26 | | sell beer, cider, mead, or any combination thereof to |
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| | SB3655 | - 12 - | LRB104 19974 RPS 33425 b |
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| 1 | | non-licensees at their breweries. |
| 2 | | (B) In the application, which shall be sworn under |
| 3 | | penalty of perjury, such person shall state (1) the date |
| 4 | | it was established; (2) its volume of production and sales |
| 5 | | for each year since its establishment; (3) its efforts to |
| 6 | | establish distributor relationships; (4) that a |
| 7 | | self-distribution exemption is necessary to facilitate the |
| 8 | | marketing of its wine; and (5) that it will comply with the |
| 9 | | liquor and revenue laws of the United States, this State, |
| 10 | | and any other state where it is licensed. |
| 11 | | (C) The State Commission shall approve the application |
| 12 | | for a self-distribution exemption if such person: (1) is |
| 13 | | in compliance with State revenue and liquor laws; (2) is |
| 14 | | not a member of any affiliated group that produces |
| 15 | | directly or indirectly more than 25,000 gallons of wine |
| 16 | | per annum, 930,000 gallons of beer per annum, or 50,000 |
| 17 | | gallons of spirits per annum; (3) will not annually |
| 18 | | produce for sale more than 25,000 gallons of wine, 930,000 |
| 19 | | gallons of beer, or 50,000 gallons of spirits; and (4) |
| 20 | | will not annually sell more than 5,000 gallons of its wine |
| 21 | | to retail licensees. |
| 22 | | (D) A self-distribution exemption holder shall |
| 23 | | annually certify to the State Commission its production of |
| 24 | | wine in the previous 12 months and its anticipated |
| 25 | | production and sales for the next 12 months. The State |
| 26 | | Commission may fine, suspend, or revoke a |
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| | SB3655 | - 13 - | LRB104 19974 RPS 33425 b |
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| 1 | | self-distribution exemption after a hearing if it finds |
| 2 | | that the exemption holder has made a material |
| 3 | | misrepresentation in its application, violated a revenue |
| 4 | | or liquor law of Illinois, exceeded production of 25,000 |
| 5 | | gallons of wine, 930,000 gallons of beer, or 50,000 |
| 6 | | gallons of spirits in any calendar year, or become part of |
| 7 | | an affiliated group producing more than 25,000 gallons of |
| 8 | | wine, 930,000 gallons of beer, or 50,000 gallons of |
| 9 | | spirits. |
| 10 | | (E) Except in hearings for violations of this Act or |
| 11 | | Public Act 95-634 or a bona fide investigation by duly |
| 12 | | sworn law enforcement officials, the State Commission, or |
| 13 | | its agents, the State Commission shall maintain the |
| 14 | | production and sales information of a self-distribution |
| 15 | | exemption holder as confidential and shall not release |
| 16 | | such information to any person. |
| 17 | | (F) The State Commission shall issue regulations |
| 18 | | governing self-distribution exemptions consistent with |
| 19 | | this Section and this Act. |
| 20 | | (G) Nothing in this paragraph (17) shall prohibit a |
| 21 | | self-distribution exemption holder from entering into or |
| 22 | | simultaneously having a distribution agreement with a |
| 23 | | licensed Illinois distributor. |
| 24 | | (H) It is the intent of this paragraph (17) to promote |
| 25 | | and continue orderly markets. The General Assembly finds |
| 26 | | that, in order to preserve Illinois' regulatory |
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| | SB3655 | - 14 - | LRB104 19974 RPS 33425 b |
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| 1 | | distribution system, it is necessary to create an |
| 2 | | exception for smaller makers of wine as their wines are |
| 3 | | frequently adjusted in varietals, mixes, vintages, and |
| 4 | | taste to find and create market niches sometimes too small |
| 5 | | for distributor or importing distributor business |
| 6 | | strategies. Limited self-distribution rights will afford |
| 7 | | and allow smaller makers of wine access to the marketplace |
| 8 | | in order to develop a customer base without impairing the |
| 9 | | integrity of the 3-tier system. |
| 10 | | (18)(A) A class 1 brewer licensee, who must also be |
| 11 | | either a licensed brewer or licensed non-resident dealer |
| 12 | | and annually manufacture less than 930,000 gallons of |
| 13 | | beer, may make application to the State Commission for a |
| 14 | | self-distribution exemption to allow the sale of not more |
| 15 | | than 232,500 gallons per year of the exemption holder's |
| 16 | | beer to retail licensees and to brewers, class 1 brewers, |
| 17 | | and class 2 brewers that, pursuant to subsection (e) of |
| 18 | | Section 6-4 of this Act, sell beer, cider, mead, or any |
| 19 | | combination thereof to non-licensees at their breweries. |
| 20 | | (B) In the application, which shall be sworn under |
| 21 | | penalty of perjury, the class 1 brewer licensee shall |
| 22 | | state (1) the date it was established; (2) its volume of |
| 23 | | beer manufactured and sold for each year since its |
| 24 | | establishment; (3) its efforts to establish distributor |
| 25 | | relationships; (4) that a self-distribution exemption is |
| 26 | | necessary to facilitate the marketing of its beer; and (5) |
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| | SB3655 | - 15 - | LRB104 19974 RPS 33425 b |
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| 1 | | that it will comply with the alcoholic beverage and |
| 2 | | revenue laws of the United States, this State, and any |
| 3 | | other state where it is licensed. |
| 4 | | (C) Any application submitted shall be posted on the |
| 5 | | State Commission's website at least 45 days prior to |
| 6 | | action by the State Commission. The State Commission shall |
| 7 | | approve the application for a self-distribution exemption |
| 8 | | if the class 1 brewer licensee: (1) is in compliance with |
| 9 | | the State, revenue, and alcoholic beverage laws; (2) is |
| 10 | | not a member of any affiliated group that manufactures, |
| 11 | | directly or indirectly, more than 930,000 gallons of beer |
| 12 | | per annum, 25,000 gallons of wine per annum, or 50,000 |
| 13 | | gallons of spirits per annum; (3) shall not annually |
| 14 | | manufacture for sale more than 930,000 gallons of beer, |
| 15 | | 25,000 gallons of wine, or 50,000 gallons of spirits; (4) |
| 16 | | shall not annually sell more than 232,500 gallons of its |
| 17 | | beer to retail licensees and class 3 brewers and to |
| 18 | | brewers, class 1 brewers, and class 2 brewers that, |
| 19 | | pursuant to subsection (e) of Section 6-4 of this Act, |
| 20 | | sell beer, cider, mead, or any combination thereof to |
| 21 | | non-licensees at their breweries; and (5) has relinquished |
| 22 | | any brew pub license held by the licensee, including any |
| 23 | | ownership interest it held in the licensed brew pub. |
| 24 | | (D) A self-distribution exemption holder shall |
| 25 | | annually certify to the State Commission its manufacture |
| 26 | | of beer during the previous 12 months and its anticipated |
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| | SB3655 | - 16 - | LRB104 19974 RPS 33425 b |
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| 1 | | manufacture and sales of beer for the next 12 months. The |
| 2 | | State Commission may fine, suspend, or revoke a |
| 3 | | self-distribution exemption after a hearing if it finds |
| 4 | | that the exemption holder has made a material |
| 5 | | misrepresentation in its application, violated a revenue |
| 6 | | or alcoholic beverage law of Illinois, exceeded the |
| 7 | | manufacture of 930,000 gallons of beer, 25,000 gallons of |
| 8 | | wine, or 50,000 gallons of spirits in any calendar year or |
| 9 | | became part of an affiliated group manufacturing more than |
| 10 | | 930,000 gallons of beer, 25,000 gallons of wine, or 50,000 |
| 11 | | gallons of spirits. |
| 12 | | (E) The State Commission shall issue rules and |
| 13 | | regulations governing self-distribution exemptions |
| 14 | | consistent with this Act. |
| 15 | | (F) Nothing in this paragraph (18) shall prohibit a |
| 16 | | self-distribution exemption holder from entering into or |
| 17 | | simultaneously having a distribution agreement with a |
| 18 | | licensed Illinois importing distributor or a distributor. |
| 19 | | If a self-distribution exemption holder enters into a |
| 20 | | distribution agreement and has assigned distribution |
| 21 | | rights to an importing distributor or distributor, then |
| 22 | | the self-distribution exemption holder's distribution |
| 23 | | rights in the assigned territories shall cease in a |
| 24 | | reasonable time not to exceed 60 days. |
| 25 | | (G) It is the intent of this paragraph (18) to promote |
| 26 | | and continue orderly markets. The General Assembly finds |
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| | SB3655 | - 17 - | LRB104 19974 RPS 33425 b |
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| 1 | | that in order to preserve Illinois' regulatory |
| 2 | | distribution system, it is necessary to create an |
| 3 | | exception for smaller manufacturers in order to afford and |
| 4 | | allow such smaller manufacturers of beer access to the |
| 5 | | marketplace in order to develop a customer base without |
| 6 | | impairing the integrity of the 3-tier system. |
| 7 | | (19)(A) A class 1 craft distiller licensee or a |
| 8 | | non-resident dealer who manufactures less than 50,000 |
| 9 | | gallons of distilled spirits per year may make application |
| 10 | | to the State Commission for a self-distribution exemption |
| 11 | | to allow the sale of not more than 5,000 gallons of the |
| 12 | | exemption holder's spirits to retail licensees per year. |
| 13 | | (B) In the application, which shall be sworn under |
| 14 | | penalty of perjury, the class 1 craft distiller licensee |
| 15 | | or non-resident dealer shall state (1) the date it was |
| 16 | | established; (2) its volume of spirits manufactured and |
| 17 | | sold for each year since its establishment; (3) its |
| 18 | | efforts to establish distributor relationships; (4) that a |
| 19 | | self-distribution exemption is necessary to facilitate the |
| 20 | | marketing of its spirits; and (5) that it will comply with |
| 21 | | the alcoholic beverage and revenue laws of the United |
| 22 | | States, this State, and any other state where it is |
| 23 | | licensed. |
| 24 | | (C) Any application submitted shall be posted on the |
| 25 | | State Commission's website at least 45 days prior to |
| 26 | | action by the State Commission. The State Commission shall |
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| | SB3655 | - 18 - | LRB104 19974 RPS 33425 b |
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| 1 | | approve the application for a self-distribution exemption |
| 2 | | if the applicant: (1) is in compliance with State revenue |
| 3 | | and alcoholic beverage laws; (2) is not a member of any |
| 4 | | affiliated group that produces more than 50,000 gallons of |
| 5 | | spirits per annum, 930,000 gallons of beer per annum, or |
| 6 | | 25,000 gallons of wine per annum; (3) does not annually |
| 7 | | manufacture for sale more than 50,000 gallons of spirits, |
| 8 | | 930,000 gallons of beer, or 25,000 gallons of wine; and |
| 9 | | (4) does not annually sell more than 5,000 gallons of its |
| 10 | | spirits to retail licensees. |
| 11 | | (D) A self-distribution exemption holder shall |
| 12 | | annually certify to the State Commission its manufacture |
| 13 | | of spirits during the previous 12 months and its |
| 14 | | anticipated manufacture and sales of spirits for the next |
| 15 | | 12 months. The State Commission may fine, suspend, or |
| 16 | | revoke a self-distribution exemption after a hearing if it |
| 17 | | finds that the exemption holder has made a material |
| 18 | | misrepresentation in its application, violated a revenue |
| 19 | | or alcoholic beverage law of Illinois, exceeded the |
| 20 | | manufacture of 50,000 gallons of spirits, 930,000 gallons |
| 21 | | of beer, or 25,000 gallons of wine in any calendar year, or |
| 22 | | has become part of an affiliated group manufacturing more |
| 23 | | than 50,000 gallons of spirits, 930,000 gallons of beer, |
| 24 | | or 25,000 gallons of wine. |
| 25 | | (E) The State Commission shall adopt rules governing |
| 26 | | self-distribution exemptions consistent with this Act. |
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| 1 | | (F) Nothing in this paragraph (19) shall prohibit a |
| 2 | | self-distribution exemption holder from entering into or |
| 3 | | simultaneously having a distribution agreement with a |
| 4 | | licensed Illinois importing distributor or a distributor. |
| 5 | | (G) It is the intent of this paragraph (19) 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 |
| 9 | | exception for smaller manufacturers in order to afford and |
| 10 | | allow such smaller manufacturers of spirits access to the |
| 11 | | marketplace in order to develop a customer base without |
| 12 | | impairing the integrity of the 3-tier system. |
| 13 | | (20)(A) A class 3 brewer licensee who must manufacture |
| 14 | | less than 465,000 gallons of beer in the aggregate and not |
| 15 | | more than 155,000 gallons at any single brewery premises |
| 16 | | may make application to the State Commission for a |
| 17 | | self-distribution exemption to allow the sale of not more |
| 18 | | than 6,200 gallons of beer from each in-state or |
| 19 | | out-of-state class 3 brewery premises, which shall not |
| 20 | | exceed 18,600 gallons annually in the aggregate, that is |
| 21 | | manufactured at a wholly owned class 3 brewer's in-state |
| 22 | | or out-of-state licensed premises to retail licensees and |
| 23 | | class 3 brewers and to brewers, class 1 brewers, class 2 |
| 24 | | brewers that, pursuant to subsection (e) of Section 6-4, |
| 25 | | sell beer, cider, or both beer and cider to non-licensees |
| 26 | | at their licensed breweries. |
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| | SB3655 | - 20 - | LRB104 19974 RPS 33425 b |
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| 1 | | (B) In the application, which shall be sworn under |
| 2 | | penalty of perjury, the class 3 brewer licensee shall |
| 3 | | state: |
| 4 | | (1) the date it was established; |
| 5 | | (2) its volume of beer manufactured and sold for |
| 6 | | each year since its establishment; |
| 7 | | (3) its efforts to establish distributor |
| 8 | | relationships; |
| 9 | | (4) that a self-distribution exemption is |
| 10 | | necessary to facilitate the marketing of its beer; and |
| 11 | | (5) that it will comply with the alcoholic |
| 12 | | beverage and revenue laws of the United States, this |
| 13 | | State, and any other state where it is licensed. |
| 14 | | (C) Any application submitted shall be posted on the |
| 15 | | State Commission's website at least 45 days before action |
| 16 | | by the State Commission. The State Commission shall |
| 17 | | approve the application for a self-distribution exemption |
| 18 | | if the class 3 brewer licensee: (1) is in compliance with |
| 19 | | the State, revenue, and alcoholic beverage laws; (2) is |
| 20 | | not a member of any affiliated group that manufacturers, |
| 21 | | directly or indirectly, more than 465,000 gallons of beer |
| 22 | | per annum; (3) shall not annually manufacture for sale |
| 23 | | more than 465,000 gallons of beer or more than 155,000 |
| 24 | | gallons at any single brewery premises; and (4) shall not |
| 25 | | annually sell more than 6,200 gallons of beer from each |
| 26 | | in-state or out-of-state class 3 brewery premises, and |
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| 1 | | shall not exceed 18,600 gallons annually in the aggregate, |
| 2 | | to retail licensees and class 3 brewers and to brewers, |
| 3 | | class 1 brewers, and class 2 brewers that, pursuant to |
| 4 | | subsection (e) of Section 6-4 of this Act, sell beer, |
| 5 | | cider, or both beer and cider to non-licensees at their |
| 6 | | breweries. |
| 7 | | (D) A self-distribution exemption holder shall |
| 8 | | annually certify to the State Commission its manufacture |
| 9 | | of beer during the previous 12 months and its anticipated |
| 10 | | manufacture and sales of beer for the next 12 months. The |
| 11 | | State Commission may fine, suspend, or revoke a |
| 12 | | self-distribution exemption after a hearing if it finds |
| 13 | | that the exemption holder has made a material |
| 14 | | misrepresentation in its application, violated a revenue |
| 15 | | or alcoholic beverage law of Illinois, exceeded the |
| 16 | | manufacture of 465,000 gallons of beer in any calendar |
| 17 | | year or became part of an affiliated group manufacturing |
| 18 | | more than 465,000 gallons of beer, or exceeded the sale to |
| 19 | | retail licensees, brewers, class 1 brewers, class 2 |
| 20 | | brewers, and class 3 brewers of 6,200 gallons per brewery |
| 21 | | location or 18,600 gallons in the aggregate. |
| 22 | | (E) The State Commission may adopt rules governing |
| 23 | | self-distribution exemptions consistent with this Act. |
| 24 | | (F) Nothing in this paragraph shall prohibit a |
| 25 | | self-distribution exemption holder from entering into or |
| 26 | | simultaneously having a distribution agreement with a |
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| 1 | | licensed Illinois importing distributor or a distributor. |
| 2 | | If a self-distribution exemption holder enters into a |
| 3 | | distribution agreement and has assigned distribution |
| 4 | | rights to an importing distributor or distributor, then |
| 5 | | the self-distribution exemption holder's distribution |
| 6 | | rights in the assigned territories shall cease in a |
| 7 | | reasonable time not to exceed 60 days. |
| 8 | | (G) It is the intent of this paragraph to promote and |
| 9 | | continue orderly markets. The General Assembly finds that |
| 10 | | in order to preserve Illinois' regulatory distribution |
| 11 | | system, it is necessary to create an exception for smaller |
| 12 | | manufacturers in order to afford and allow such smaller |
| 13 | | manufacturers of beer access to the marketplace in order |
| 14 | | to develop a customer base without impairing the integrity |
| 15 | | of the 3-tier system. |
| 16 | | (b) On or before April 30, 1999, the Commission shall |
| 17 | | present a written report to the Governor and the General |
| 18 | | Assembly that shall be based on a study of the impact of Public |
| 19 | | Act 90-739 on the business of soliciting, selling, and |
| 20 | | shipping alcoholic liquor from outside of this State directly |
| 21 | | to residents of this State. |
| 22 | | As part of its report, the Commission shall provide the |
| 23 | | following 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 |
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| 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 |
| 5 | | of Revenue, and the number of notices and complaints of |
| 6 | | violations to law enforcement officials. |
| 7 | | (Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19; |
| 8 | | 101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff. |
| 9 | | 8-20-21; 102-813, eff. 5-13-22.) |
| 10 | | (Text of Section after amendment by P.A. 104-451) |
| 11 | | Sec. 3-12. Powers and duties of State Commission. |
| 12 | | (a) The State Commission shall have the following powers, |
| 13 | | functions, and duties: |
| 14 | | (1) To receive applications and to issue licenses to |
| 15 | | manufacturers, foreign importers, importing distributors, |
| 16 | | distributors, non-resident dealers, on premise consumption |
| 17 | | retailers, off premise sale retailers, special event |
| 18 | | retailer licensees, special use permit licenses, auction |
| 19 | | liquor licenses, brew pubs, caterer retailers, |
| 20 | | non-beverage users, railroads, including owners and |
| 21 | | lessees of sleeping, dining, and cafe cars, airplanes, |
| 22 | | boats, brokers, and wine maker's premises licensees in |
| 23 | | accordance with the provisions of this Act, and to suspend |
| 24 | | or revoke such licenses upon the State Commission's |
| 25 | | determination, upon notice after hearing, that a licensee |
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| | SB3655 | - 24 - | LRB104 19974 RPS 33425 b |
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| 1 | | has violated any provision of this Act or any rule or |
| 2 | | regulation issued pursuant thereto and in effect for 30 |
| 3 | | days prior to such violation. Except in the case of an |
| 4 | | action taken pursuant to a violation of Section 6-3, 6-5, |
| 5 | | or 6-9, any action by the State Commission to suspend or |
| 6 | | revoke a licensee's license may be limited to the license |
| 7 | | for the specific premises where the violation occurred. An |
| 8 | | action for a violation of this Act shall be commenced by |
| 9 | | the State Commission within 2 years after the date the |
| 10 | | State Commission becomes aware of the violation. |
| 11 | | In lieu of suspending or revoking a license, the State |
| 12 | | Commission may impose a fine, upon the State Commission's |
| 13 | | determination and notice after hearing, that a licensee |
| 14 | | has violated any provision of this Act or any rule or |
| 15 | | regulation issued pursuant thereto and in effect for 30 |
| 16 | | days prior to such violation. |
| 17 | | For the purpose of this paragraph (1), when |
| 18 | | determining multiple violations for the sale of alcohol to |
| 19 | | a person under the age of 21, a second or subsequent |
| 20 | | violation for the sale of alcohol to a person under the age |
| 21 | | of 21 shall only be considered if it was committed within 5 |
| 22 | | years after the date when a prior violation for the sale of |
| 23 | | alcohol to a person under the age of 21 was committed. |
| 24 | | The fine imposed under this paragraph may not exceed |
| 25 | | $500 for each violation. Each day that the activity, which |
| 26 | | gave rise to the original fine, continues is a separate |
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| | SB3655 | - 25 - | LRB104 19974 RPS 33425 b |
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| 1 | | violation. The maximum fine that may be levied against any |
| 2 | | licensee, for the period of the license, shall not exceed |
| 3 | | $20,000 per violation. The maximum penalty that may be |
| 4 | | imposed on a licensee for selling a bottle of alcoholic |
| 5 | | liquor with a foreign object in it or serving from a bottle |
| 6 | | of alcoholic liquor with a foreign object in it shall be |
| 7 | | the destruction of that bottle of alcoholic liquor for the |
| 8 | | first 10 bottles so sold or served from by the licensee. |
| 9 | | For the eleventh bottle of alcoholic liquor and for each |
| 10 | | third bottle thereafter sold or served from by the |
| 11 | | licensee with a foreign object in it, the maximum penalty |
| 12 | | that may be imposed on the licensee is the destruction of |
| 13 | | the bottle of alcoholic liquor and a fine of up to $50. |
| 14 | | Any notice issued by the State Commission to a |
| 15 | | licensee for a violation of this Act or any notice with |
| 16 | | respect to settlement or offer in compromise shall include |
| 17 | | the field report, photographs, and any other supporting |
| 18 | | documentation necessary to reasonably inform the licensee |
| 19 | | of the nature and extent of the violation or the conduct |
| 20 | | alleged to have occurred. The failure to include such |
| 21 | | required documentation shall result in the dismissal of |
| 22 | | the action. |
| 23 | | (2) To adopt such rules and regulations consistent |
| 24 | | with the provisions of this Act which shall be necessary |
| 25 | | to carry on its functions and duties to the end that the |
| 26 | | health, safety, and welfare of the People of the State of |
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| | SB3655 | - 26 - | LRB104 19974 RPS 33425 b |
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| 1 | | Illinois shall be protected and temperance in the |
| 2 | | consumption of alcoholic liquors shall be fostered and |
| 3 | | promoted and to distribute copies of such rules and |
| 4 | | regulations to all licensees affected thereby. |
| 5 | | (3) To call upon other administrative departments of |
| 6 | | the State, county and municipal governments, county and |
| 7 | | city police departments, and prosecuting officers for such |
| 8 | | information and assistance as it deems necessary in the |
| 9 | | performance of its duties. |
| 10 | | (4) To recommend to local commissioners rules and |
| 11 | | regulations, not inconsistent with the law, for the |
| 12 | | distribution and sale of alcoholic liquors throughout the |
| 13 | | State. |
| 14 | | (5) To inspect, or cause to be inspected, any premises |
| 15 | | in this State where alcoholic liquors are manufactured, |
| 16 | | distributed, warehoused, or sold. Nothing in this Act |
| 17 | | authorizes an agent of the State Commission to inspect |
| 18 | | private areas within the premises without reasonable |
| 19 | | suspicion or a warrant during an inspection. "Private |
| 20 | | areas" includes, but is not limited to, safes, personal |
| 21 | | property, and closed desks. |
| 22 | | (5.1) Upon receipt of a complaint or upon having |
| 23 | | knowledge that any person is engaged in business as a |
| 24 | | manufacturer, importing distributor, distributor, or |
| 25 | | retailer without a license or valid license, to conduct an |
| 26 | | investigation. If, after conducting an investigation, the |
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| | SB3655 | - 27 - | LRB104 19974 RPS 33425 b |
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| 1 | | State Commission is satisfied that the alleged conduct |
| 2 | | occurred or is occurring, it may issue a cease and desist |
| 3 | | notice as provided in this Act, impose civil penalties as |
| 4 | | provided in this Act, notify the local liquor authority, |
| 5 | | or file a complaint with the State's Attorney's Office of |
| 6 | | the county where the incident occurred or the Attorney |
| 7 | | General. |
| 8 | | (5.2) Upon receipt of a complaint or upon having |
| 9 | | knowledge that any person is shipping alcoholic liquor |
| 10 | | into this State from a point outside of this State if the |
| 11 | | shipment is in violation of this Act, to conduct an |
| 12 | | investigation. If, after conducting an investigation, the |
| 13 | | State Commission is satisfied that the alleged conduct |
| 14 | | occurred or is occurring, it may issue a cease and desist |
| 15 | | notice as provided in this Act, impose civil penalties as |
| 16 | | provided in this Act, notify the foreign jurisdiction, or |
| 17 | | file a complaint with the State's Attorney's Office of the |
| 18 | | county where the incident occurred or the Attorney |
| 19 | | General. |
| 20 | | (5.3) To receive complaints from licensees, local |
| 21 | | officials, law enforcement agencies, organizations, and |
| 22 | | persons stating that any licensee has been or is violating |
| 23 | | any provision of this Act or the rules and regulations |
| 24 | | issued pursuant to this Act. Such complaints shall be in |
| 25 | | writing, signed and sworn to by the person making the |
| 26 | | complaint, and shall state with specificity the facts in |
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| | SB3655 | - 28 - | LRB104 19974 RPS 33425 b |
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| 1 | | relation to the alleged violation. If the State Commission |
| 2 | | has reasonable grounds to believe that the complaint |
| 3 | | substantially alleges a violation of this Act or rules and |
| 4 | | regulations adopted pursuant to this Act, it shall conduct |
| 5 | | an investigation. If, after conducting an investigation, |
| 6 | | the State Commission is satisfied that the alleged |
| 7 | | violation did occur, it shall proceed with disciplinary |
| 8 | | action against the licensee as provided in this Act. |
| 9 | | (5.4) To make arrests and issue notices of civil |
| 10 | | violations where necessary for the enforcement of this |
| 11 | | Act. |
| 12 | | (5.5) To investigate any and all unlicensed activity. |
| 13 | | (5.6) To impose civil penalties or fines to any person |
| 14 | | who, without holding a valid license, engages in conduct |
| 15 | | that requires a license pursuant to this Act, in an amount |
| 16 | | not to exceed $20,000 for each offense as determined by |
| 17 | | the State Commission. A civil penalty shall be assessed by |
| 18 | | the State Commission after a hearing is held in accordance |
| 19 | | with the provisions set forth in this Act regarding the |
| 20 | | provision of a hearing for the revocation or suspension of |
| 21 | | a license. |
| 22 | | (6) To hear and determine appeals from orders of a |
| 23 | | local commission in accordance with the provisions of this |
| 24 | | Act, as hereinafter set forth. Hearings under this |
| 25 | | subsection shall be held in Springfield or Chicago, at |
| 26 | | whichever location is the more convenient for the majority |
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| | SB3655 | - 29 - | LRB104 19974 RPS 33425 b |
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| 1 | | of persons who are parties to the hearing. |
| 2 | | (7) The State Commission shall establish uniform |
| 3 | | systems of accounts to be kept by all retail licensees |
| 4 | | having more than 4 employees, and, for this purpose, the |
| 5 | | State Commission may classify all retail licensees having |
| 6 | | more than 4 employees and establish a uniform system of |
| 7 | | accounts for each class and prescribe the manner in which |
| 8 | | such accounts shall be kept. The State Commission may also |
| 9 | | prescribe the forms of accounts to be kept by all retail |
| 10 | | licensees having more than 4 employees, including, but not |
| 11 | | limited to, accounts of earnings and expenses and any |
| 12 | | distribution, payment, or other distribution of earnings |
| 13 | | or assets, and any other forms, records, and memoranda |
| 14 | | which in the judgment of the State Commission may be |
| 15 | | necessary or appropriate to carry out any of the |
| 16 | | provisions of this Act, including, but not limited to, |
| 17 | | such forms, records, and memoranda as will readily and |
| 18 | | accurately disclose at all times the beneficial ownership |
| 19 | | of such retail licensed business. The accounts, forms, |
| 20 | | records, and memoranda shall be available at all |
| 21 | | reasonable times for inspection by authorized |
| 22 | | representatives of the State Commission or by any local |
| 23 | | liquor control commissioner or his or her authorized |
| 24 | | representative. The State Commission may, from time to |
| 25 | | time, alter, amend, or repeal, in whole or in part, any |
| 26 | | uniform system of accounts, or the form and manner of |
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| | SB3655 | - 30 - | LRB104 19974 RPS 33425 b |
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| 1 | | keeping accounts. |
| 2 | | (8) In the conduct of any hearing authorized to be |
| 3 | | held by the State Commission, to appoint, at the State |
| 4 | | Commission's discretion, hearing officers to conduct |
| 5 | | hearings involving complex issues or issues that will |
| 6 | | require a protracted period of time to resolve, to |
| 7 | | examine, or cause to be examined, under oath, any |
| 8 | | licensee, and to examine or cause to be examined the books |
| 9 | | and records of such licensee; to hear testimony and take |
| 10 | | proof material for its information in the discharge of its |
| 11 | | duties hereunder; to administer or cause to be |
| 12 | | administered oaths; for any such purpose to issue subpoena |
| 13 | | or subpoenas to require the attendance of witnesses and |
| 14 | | the production of books, which shall be effective in any |
| 15 | | part of this State, and to adopt rules to implement its |
| 16 | | powers under this paragraph (8). |
| 17 | | Any circuit court may, by order duly entered, require |
| 18 | | the attendance of witnesses and the production of relevant |
| 19 | | books subpoenaed by the State Commission and the court may |
| 20 | | compel obedience to its order by proceedings for contempt. |
| 21 | | (9) To investigate the administration of laws in |
| 22 | | relation to alcoholic liquors in this and other states and |
| 23 | | any foreign countries, and to recommend from time to time |
| 24 | | to the Governor and through him or her to the legislature |
| 25 | | of this State, such amendments to this Act, if any, as it |
| 26 | | may think desirable and as will serve to further the |
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| | SB3655 | - 31 - | LRB104 19974 RPS 33425 b |
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| 1 | | general broad purposes contained in Section 1-2 hereof. |
| 2 | | (10) To adopt such rules and regulations consistent |
| 3 | | with the provisions of this Act which shall be necessary |
| 4 | | for the control, sale, or disposition of alcoholic liquor |
| 5 | | damaged as a result of an accident, wreck, flood, fire, or |
| 6 | | other similar occurrence. |
| 7 | | (11) To develop industry educational programs related |
| 8 | | to responsible serving and selling, particularly in the |
| 9 | | areas of overserving consumers and illegal underage |
| 10 | | purchasing and consumption of alcoholic beverages. |
| 11 | | (11.1) To license persons providing education and |
| 12 | | training to alcohol beverage sellers and servers for |
| 13 | | mandatory and non-mandatory training under the Beverage |
| 14 | | Alcohol Sellers and Servers Education and Training |
| 15 | | (BASSET) programs and to develop and administer a public |
| 16 | | awareness program in Illinois to reduce or eliminate the |
| 17 | | illegal purchase and consumption of alcoholic beverage |
| 18 | | products by persons under the age of 21. Application for a |
| 19 | | license shall be made on forms provided by the State |
| 20 | | Commission. |
| 21 | | (12) To develop and maintain a repository of license |
| 22 | | and regulatory information. |
| 23 | | (13) (Blank). |
| 24 | | (14) On or before April 30, 2008 and every 2 years |
| 25 | | thereafter, the State Commission shall present a written |
| 26 | | report to the Governor and the General Assembly that shall |
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| | SB3655 | - 32 - | LRB104 19974 RPS 33425 b |
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| 1 | | be based on a study of the impact of Public Act 95-634 on |
| 2 | | the business of soliciting, selling, and shipping wine |
| 3 | | from inside and outside of this State directly to |
| 4 | | residents of this State. As part of its report, the State |
| 5 | | Commission shall provide all of the following information: |
| 6 | | (A) The amount of State excise and sales tax |
| 7 | | revenues generated. |
| 8 | | (B) The amount of licensing fees received. |
| 9 | | (C) The number of cases of wine shipped from |
| 10 | | inside and outside of this State directly to residents |
| 11 | | of this State. |
| 12 | | (D) The number of alcohol compliance operations |
| 13 | | conducted. |
| 14 | | (E) The number of winery shipper's licenses |
| 15 | | issued. |
| 16 | | (F) The number of each of the following: reported |
| 17 | | violations; cease and desist notices issued by the |
| 18 | | State Commission; notices of violations issued by the |
| 19 | | State Commission and to the Department of Revenue; and |
| 20 | | notices and complaints of violations to law |
| 21 | | enforcement officials, including, without limitation, |
| 22 | | the Illinois Attorney General and the U.S. Department |
| 23 | | of Treasury's Alcohol and Tobacco Tax and Trade |
| 24 | | Bureau. |
| 25 | | (15) As a means to reduce the underage consumption of |
| 26 | | alcoholic liquors, the State Commission shall conduct |
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| | SB3655 | - 33 - | LRB104 19974 RPS 33425 b |
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| 1 | | alcohol compliance operations to investigate whether |
| 2 | | businesses that are soliciting, selling, and shipping wine |
| 3 | | from inside or outside of this State directly to residents |
| 4 | | of this State are licensed by this State or are selling or |
| 5 | | attempting to sell wine to persons under 21 years of age in |
| 6 | | violation of this Act. |
| 7 | | (16) The State Commission shall, in addition to |
| 8 | | notifying any appropriate law enforcement agency, submit |
| 9 | | notices of complaints or violations of Sections 6-29 and |
| 10 | | 6-29.1 by persons who do not hold a winery shipper's |
| 11 | | license under this Act to the Illinois Attorney General |
| 12 | | and to the U.S. Department of Treasury's Alcohol and |
| 13 | | Tobacco Tax and Trade Bureau. |
| 14 | | (17)(A) A person licensed to make wine under the laws |
| 15 | | of another state who has a winery shipper's license under |
| 16 | | this Act and annually produces less than 25,000 gallons of |
| 17 | | wine or a person who has a first-class or second-class |
| 18 | | wine manufacturer's license, a first-class or second-class |
| 19 | | wine-maker's license, or a limited wine manufacturer's |
| 20 | | license under this Act and annually produces less than |
| 21 | | 25,000 gallons of wine may make application to the State |
| 22 | | Commission for a self-distribution exemption to allow the |
| 23 | | sale of not more than 5,000 gallons of the exemption |
| 24 | | holder's wine to retail licensees per year and to sell |
| 25 | | cider, mead, or both cider and mead to brewers, class 1 |
| 26 | | brewers, class 2 brewers, class 3 brewers, and class 3 |
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| | SB3655 | - 34 - | LRB104 19974 RPS 33425 b |
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| 1 | | craft distillers that, pursuant to subsection (e) of |
| 2 | | Section 6-4 of this Act, sell beer, cider, spirits, mead, |
| 3 | | or any combination thereof to non-licensees at their |
| 4 | | breweries or distilleries. |
| 5 | | (B) In the application, which shall be sworn under |
| 6 | | penalty of perjury, such person shall state (1) the date |
| 7 | | it was established; (2) its volume of production and sales |
| 8 | | for each year since its establishment; (3) its efforts to |
| 9 | | establish distributor relationships; (4) that a |
| 10 | | self-distribution exemption is necessary to facilitate the |
| 11 | | marketing of its wine; and (5) that it will comply with the |
| 12 | | liquor and revenue laws of the United States, this State, |
| 13 | | and any other state where it is licensed. |
| 14 | | (C) The State Commission shall approve the application |
| 15 | | for a self-distribution exemption if such person: (1) is |
| 16 | | in compliance with State revenue and liquor laws; (2) is |
| 17 | | not a member of any affiliated group that produces |
| 18 | | directly or indirectly more than 25,000 gallons of wine |
| 19 | | per annum, 930,000 gallons of beer per annum, or 50,000 |
| 20 | | gallons of spirits per annum; (3) will not annually |
| 21 | | produce for sale more than 25,000 gallons of wine, 930,000 |
| 22 | | gallons of beer, or 50,000 gallons of spirits; and (4) |
| 23 | | will not annually sell more than 5,000 gallons of its wine |
| 24 | | to retail licensees. |
| 25 | | (D) A self-distribution exemption holder shall |
| 26 | | annually certify to the State Commission its production of |
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| | SB3655 | - 35 - | LRB104 19974 RPS 33425 b |
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| 1 | | wine in the previous 12 months and its anticipated |
| 2 | | production and sales for the next 12 months. The State |
| 3 | | Commission may fine, suspend, or revoke a |
| 4 | | self-distribution exemption after a hearing if it finds |
| 5 | | that the exemption holder has made a material |
| 6 | | misrepresentation in its application, violated a revenue |
| 7 | | or liquor law of Illinois, exceeded production of 25,000 |
| 8 | | gallons of wine, 930,000 gallons of beer, or 50,000 |
| 9 | | gallons of spirits in any calendar year, or become part of |
| 10 | | an affiliated group producing more than 25,000 gallons of |
| 11 | | wine, 930,000 gallons of beer, or 50,000 gallons of |
| 12 | | spirits. |
| 13 | | (E) Except in hearings for violations of this Act or |
| 14 | | Public Act 95-634 or a bona fide investigation by duly |
| 15 | | sworn law enforcement officials, the State Commission, or |
| 16 | | its agents, the State Commission shall maintain the |
| 17 | | production and sales information of a self-distribution |
| 18 | | exemption holder as confidential and shall not release |
| 19 | | such information to any person. |
| 20 | | (F) The State Commission shall issue regulations |
| 21 | | governing self-distribution exemptions consistent with |
| 22 | | this Section and this Act. |
| 23 | | (G) Nothing in this paragraph (17) shall prohibit a |
| 24 | | self-distribution exemption holder from entering into or |
| 25 | | simultaneously having a distribution agreement with a |
| 26 | | licensed Illinois distributor. |
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| | SB3655 | - 36 - | LRB104 19974 RPS 33425 b |
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| 1 | | (H) It is the intent of this paragraph (17) to promote |
| 2 | | and continue orderly markets. The General Assembly finds |
| 3 | | that, in order to preserve Illinois' regulatory |
| 4 | | distribution system, it is necessary to create an |
| 5 | | exception for smaller makers of wine as their wines are |
| 6 | | frequently adjusted in varietals, mixes, vintages, and |
| 7 | | taste to find and create market niches sometimes too small |
| 8 | | for distributor or importing distributor business |
| 9 | | strategies. Limited self-distribution rights will afford |
| 10 | | and allow smaller makers of wine access to the marketplace |
| 11 | | in order to develop a customer base without impairing the |
| 12 | | integrity of the 3-tier system. |
| 13 | | (18)(A) A class 1 brewer licensee, who must also be |
| 14 | | either a licensed brewer or licensed non-resident dealer |
| 15 | | and annually manufacture less than 930,000 gallons of |
| 16 | | beer, may make application to the State Commission for a |
| 17 | | self-distribution exemption to allow the sale of not more |
| 18 | | than 232,500 gallons per year of the exemption holder's |
| 19 | | beer to retail licensees and to brewers, class 1 brewers, |
| 20 | | and class 2 brewers that, pursuant to subsection (e) of |
| 21 | | Section 6-4 of this Act, sell beer, cider, mead, or any |
| 22 | | combination thereof to non-licensees at their breweries. |
| 23 | | (B) In the application, which shall be sworn under |
| 24 | | penalty of perjury, the class 1 brewer licensee shall |
| 25 | | state (1) the date it was established; (2) its volume of |
| 26 | | beer manufactured and sold for each year since its |
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| | SB3655 | - 37 - | LRB104 19974 RPS 33425 b |
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| 1 | | establishment; (3) its efforts to establish distributor |
| 2 | | relationships; (4) that a self-distribution exemption is |
| 3 | | necessary to facilitate the marketing of its beer; and (5) |
| 4 | | that it will comply with the alcoholic beverage and |
| 5 | | revenue laws of the United States, this State, and any |
| 6 | | other state where it is licensed. |
| 7 | | (C) Any application submitted shall be posted on the |
| 8 | | State Commission's website at least 45 days prior to |
| 9 | | action by the State Commission. The State Commission shall |
| 10 | | approve the application for a self-distribution exemption |
| 11 | | if the class 1 brewer licensee: (1) is in compliance with |
| 12 | | the State, revenue, and alcoholic beverage laws; (2) is |
| 13 | | not a member of any affiliated group that manufactures, |
| 14 | | directly or indirectly, more than 930,000 gallons of beer |
| 15 | | per annum, 25,000 gallons of wine per annum, or 50,000 |
| 16 | | gallons of spirits per annum; (3) shall not annually |
| 17 | | manufacture for sale more than 930,000 gallons of beer, |
| 18 | | 25,000 gallons of wine, or 50,000 gallons of spirits; (4) |
| 19 | | shall not annually sell more than 232,500 gallons of its |
| 20 | | beer to retail licensees and class 3 brewers and to |
| 21 | | brewers, class 1 brewers, and class 2 brewers that, |
| 22 | | pursuant to subsection (e) of Section 6-4 of this Act, |
| 23 | | sell beer, cider, mead, or any combination thereof to |
| 24 | | non-licensees at their breweries; and (5) has relinquished |
| 25 | | any brew pub license held by the licensee, including any |
| 26 | | ownership interest it held in the licensed brew pub. |
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| | SB3655 | - 38 - | LRB104 19974 RPS 33425 b |
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| 1 | | (D) A self-distribution exemption holder shall |
| 2 | | annually certify to the State Commission its manufacture |
| 3 | | of beer during the previous 12 months and its anticipated |
| 4 | | manufacture and sales of beer for the next 12 months. The |
| 5 | | State Commission may fine, suspend, or revoke a |
| 6 | | self-distribution exemption after a hearing if it finds |
| 7 | | that the exemption holder has made a material |
| 8 | | misrepresentation in its application, violated a revenue |
| 9 | | or alcoholic beverage law of Illinois, exceeded the |
| 10 | | manufacture of 930,000 gallons of beer, 25,000 gallons of |
| 11 | | wine, or 50,000 gallons of spirits in any calendar year or |
| 12 | | became part of an affiliated group manufacturing more than |
| 13 | | 930,000 gallons of beer, 25,000 gallons of wine, or 50,000 |
| 14 | | gallons of spirits. |
| 15 | | (E) The State Commission shall issue rules and |
| 16 | | regulations governing self-distribution exemptions |
| 17 | | consistent with this Act. |
| 18 | | (F) Nothing in this paragraph (18) shall prohibit a |
| 19 | | self-distribution exemption holder from entering into or |
| 20 | | simultaneously having a distribution agreement with a |
| 21 | | licensed Illinois importing distributor or a distributor. |
| 22 | | If a self-distribution exemption holder enters into a |
| 23 | | distribution agreement and has assigned distribution |
| 24 | | rights to an importing distributor or distributor, then |
| 25 | | the self-distribution exemption holder's distribution |
| 26 | | rights in the assigned territories shall cease in a |
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| | SB3655 | - 39 - | LRB104 19974 RPS 33425 b |
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| 1 | | reasonable time not to exceed 60 days. |
| 2 | | (G) It is the intent of this paragraph (18) 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 |
| 6 | | exception for smaller manufacturers in order to afford and |
| 7 | | allow such smaller manufacturers of beer access to the |
| 8 | | marketplace in order to develop a customer base without |
| 9 | | impairing the integrity of the 3-tier system. |
| 10 | | (19)(A) A class 1 craft distiller licensee or a |
| 11 | | non-resident dealer who manufactures less than 50,000 |
| 12 | | gallons of distilled spirits per year may make application |
| 13 | | to the State Commission for a self-distribution exemption |
| 14 | | to allow the sale of not more than 5,000 gallons of the |
| 15 | | exemption holder's spirits to retail licensees per year. |
| 16 | | (B) In the application, which shall be sworn under |
| 17 | | penalty of perjury, the class 1 craft distiller licensee |
| 18 | | or non-resident dealer shall state (1) the date it was |
| 19 | | established; (2) its volume of spirits manufactured and |
| 20 | | sold for each year since its establishment; (3) its |
| 21 | | efforts to establish distributor relationships; (4) that a |
| 22 | | self-distribution exemption is necessary to facilitate the |
| 23 | | marketing of its spirits; and (5) that it will comply with |
| 24 | | the alcoholic beverage and revenue laws of the United |
| 25 | | States, this State, and any other state where it is |
| 26 | | licensed. |
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| | SB3655 | - 40 - | LRB104 19974 RPS 33425 b |
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| 1 | | (C) Any application submitted shall be posted on the |
| 2 | | State Commission's website at least 45 days prior to |
| 3 | | action by the State Commission. The State Commission shall |
| 4 | | approve the application for a self-distribution exemption |
| 5 | | if the applicant: (1) is in compliance with State revenue |
| 6 | | and alcoholic beverage laws; (2) is not a member of any |
| 7 | | affiliated group that produces more than 50,000 gallons of |
| 8 | | spirits per annum, 930,000 gallons of beer per annum, or |
| 9 | | 25,000 gallons of wine per annum; (3) does not annually |
| 10 | | manufacture for sale more than 50,000 gallons of spirits, |
| 11 | | 930,000 gallons of beer, or 25,000 gallons of wine; and |
| 12 | | (4) does not annually sell more than 5,000 gallons of its |
| 13 | | spirits to retail licensees. |
| 14 | | (D) A self-distribution exemption holder shall |
| 15 | | annually certify to the State Commission its manufacture |
| 16 | | of spirits during the previous 12 months and its |
| 17 | | anticipated manufacture and sales of spirits for the next |
| 18 | | 12 months. The State Commission may fine, suspend, or |
| 19 | | revoke a self-distribution exemption after a hearing if it |
| 20 | | finds that the exemption holder has made a material |
| 21 | | misrepresentation in its application, violated a revenue |
| 22 | | or alcoholic beverage law of Illinois, exceeded the |
| 23 | | manufacture of 50,000 gallons of spirits, 930,000 gallons |
| 24 | | of beer, or 25,000 gallons of wine in any calendar year, or |
| 25 | | has become part of an affiliated group manufacturing more |
| 26 | | than 50,000 gallons of spirits, 930,000 gallons of beer, |
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| | SB3655 | - 41 - | LRB104 19974 RPS 33425 b |
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| 1 | | or 25,000 gallons of wine. |
| 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 |
| 12 | | exception for smaller manufacturers in order to afford and |
| 13 | | allow such smaller manufacturers of spirits access to the |
| 14 | | marketplace in order to develop a customer base without |
| 15 | | impairing the integrity of the 3-tier system. |
| 16 | | (20)(A) A class 3 brewer licensee who must manufacture |
| 17 | | less than 465,000 gallons of beer in the aggregate and not |
| 18 | | more than 155,000 gallons at any single brewery premises |
| 19 | | may make application to the State Commission for a |
| 20 | | self-distribution exemption to allow the sale of not more |
| 21 | | than 6,200 gallons of beer from each in-state or |
| 22 | | out-of-state class 3 brewery premises, which shall not |
| 23 | | exceed 18,600 gallons annually in the aggregate, that is |
| 24 | | manufactured at a wholly owned class 3 brewer's in-state |
| 25 | | or out-of-state licensed premises to retail licensees and |
| 26 | | class 3 brewers and to brewers, class 1 brewers, class 2 |
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| | SB3655 | - 42 - | LRB104 19974 RPS 33425 b |
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| 1 | | brewers that, pursuant to subsection (e) of Section 6-4, |
| 2 | | sell beer, cider, or both beer and cider to non-licensees |
| 3 | | at their licensed breweries. |
| 4 | | (B) In the application, which shall be sworn under |
| 5 | | penalty of perjury, the class 3 brewer licensee shall |
| 6 | | state: |
| 7 | | (1) the date it was established; |
| 8 | | (2) its volume of beer manufactured and sold for |
| 9 | | each year since its establishment; |
| 10 | | (3) its efforts to establish distributor |
| 11 | | relationships; |
| 12 | | (4) that a self-distribution exemption is |
| 13 | | necessary to facilitate the marketing of its beer; and |
| 14 | | (5) that it will comply with the alcoholic |
| 15 | | beverage and revenue laws of the United States, this |
| 16 | | State, and any other state where it is licensed. |
| 17 | | (C) Any application submitted shall be posted on the |
| 18 | | State Commission's website at least 45 days before action |
| 19 | | by the State Commission. The State Commission shall |
| 20 | | approve the application for a self-distribution exemption |
| 21 | | if the class 3 brewer licensee: (1) is in compliance with |
| 22 | | the State, revenue, and alcoholic beverage laws; (2) is |
| 23 | | not a member of any affiliated group that manufacturers, |
| 24 | | directly or indirectly, more than 465,000 gallons of beer |
| 25 | | per annum; (3) shall not annually manufacture for sale |
| 26 | | more than 465,000 gallons of beer or more than 155,000 |
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| | SB3655 | - 43 - | LRB104 19974 RPS 33425 b |
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| 1 | | gallons at any single brewery premises; and (4) shall not |
| 2 | | annually sell more than 6,200 gallons of beer from each |
| 3 | | in-state or out-of-state class 3 brewery premises, and |
| 4 | | shall not exceed 18,600 gallons annually in the aggregate, |
| 5 | | to retail licensees and class 3 brewers and to brewers, |
| 6 | | class 1 brewers, and class 2 brewers that, pursuant to |
| 7 | | subsection (e) of Section 6-4 of this Act, sell beer, |
| 8 | | cider, or both beer and cider to non-licensees at their |
| 9 | | breweries. |
| 10 | | (D) A self-distribution exemption holder shall |
| 11 | | annually certify to the State Commission its manufacture |
| 12 | | of beer during the previous 12 months and its anticipated |
| 13 | | manufacture and sales of beer for the next 12 months. The |
| 14 | | State Commission may fine, suspend, or revoke a |
| 15 | | self-distribution exemption after a hearing if it finds |
| 16 | | that the exemption holder has made a material |
| 17 | | misrepresentation in its application, violated a revenue |
| 18 | | or alcoholic beverage law of Illinois, exceeded the |
| 19 | | manufacture of 465,000 gallons of beer in any calendar |
| 20 | | year or became part of an affiliated group manufacturing |
| 21 | | more than 465,000 gallons of beer, or exceeded the sale to |
| 22 | | retail licensees, brewers, class 1 brewers, class 2 |
| 23 | | brewers, and class 3 brewers of 6,200 gallons per brewery |
| 24 | | location or 18,600 gallons in the aggregate. |
| 25 | | (E) The State Commission may adopt rules governing |
| 26 | | self-distribution exemptions consistent with this Act. |
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| | SB3655 | - 44 - | LRB104 19974 RPS 33425 b |
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| 1 | | (F) Nothing in this paragraph shall prohibit a |
| 2 | | self-distribution exemption holder from entering into or |
| 3 | | simultaneously having a distribution agreement with a |
| 4 | | licensed Illinois importing distributor or a distributor. |
| 5 | | If a self-distribution exemption holder enters into a |
| 6 | | distribution agreement and has assigned distribution |
| 7 | | rights to an importing distributor or distributor, then |
| 8 | | the self-distribution exemption holder's distribution |
| 9 | | rights in the assigned territories shall cease in a |
| 10 | | reasonable time not to exceed 60 days. |
| 11 | | (G) It is the intent of this paragraph to promote and |
| 12 | | continue orderly markets. The General Assembly finds that |
| 13 | | in order to preserve Illinois' regulatory distribution |
| 14 | | system, it is necessary to create an exception for smaller |
| 15 | | manufacturers in order to afford and allow such smaller |
| 16 | | manufacturers of beer access to the marketplace in order |
| 17 | | to develop a customer base without impairing the integrity |
| 18 | | of the 3-tier system. |
| 19 | | (21)(A) A class 3 craft distiller licensee who |
| 20 | | manufactures less than 100,000 gallons of spirits in the |
| 21 | | aggregate may make application to the State Commission for |
| 22 | | a self-distribution exemption to allow the sale of not |
| 23 | | more than 5,000 gallons of the exemption holder's spirits |
| 24 | | per year that are manufactured at a wholly owned class 3 |
| 25 | | craft distiller's in-state or out-of-state licensed |
| 26 | | premises to retail licensees and class 3 brewers and to |
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| | SB3655 | - 45 - | LRB104 19974 RPS 33425 b |
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| 1 | | class 3 craft distillers that, pursuant to subsection (e) |
| 2 | | of Section 6-4, sell beer, cider, spirits, or any |
| 3 | | combination thereof to non-licensees at their licensed |
| 4 | | distilleries. |
| 5 | | (B) In the application, which shall be sworn under |
| 6 | | penalty of perjury, the class 3 craft distiller licensee |
| 7 | | shall state: |
| 8 | | (1) the date it was established; |
| 9 | | (2) its volume of spirits manufactured and sold |
| 10 | | for each year since its establishment; |
| 11 | | (3) its efforts to establish distributor |
| 12 | | relationships; |
| 13 | | (4) that a self-distribution exemption is |
| 14 | | necessary to facilitate the marketing of its spirits; |
| 15 | | and |
| 16 | | (5) that it will comply with the alcoholic |
| 17 | | beverage and revenue laws of the United States, this |
| 18 | | State, and any other state where it is licensed. |
| 19 | | (C) Any application submitted shall be posted on the |
| 20 | | State Commission's website at least 45 days before action |
| 21 | | by the State Commission. The State Commission shall |
| 22 | | approve the application for a self-distribution exemption |
| 23 | | if the class 3 craft distiller licensee: |
| 24 | | (1) is in compliance with the State, revenue, and |
| 25 | | alcoholic beverage laws; |
| 26 | | (2) is not a member of any affiliated group that |
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| | SB3655 | - 46 - | LRB104 19974 RPS 33425 b |
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| 1 | | manufacturers, directly or indirectly, more than |
| 2 | | 100,000 gallons of spirits per annum; |
| 3 | | (3) shall not annually manufacture for sale more |
| 4 | | than 100,000 gallons of spirits; and |
| 5 | | (4) does not sell more than 5,000 gallons of its |
| 6 | | spirits per year to retail licensees and class 3 |
| 7 | | brewers and to class 3 craft distillers that, pursuant |
| 8 | | to subsection (e) of Section 6-4, sell beer, cider, |
| 9 | | spirits, or any combination thereof to non-licensees |
| 10 | | at their licensed distilleries. |
| 11 | | (D) A self-distribution exemption holder shall |
| 12 | | annually certify to the State Commission its manufacture |
| 13 | | of spirits during the previous 12 months and its |
| 14 | | anticipated manufacture and sales of spirits for the next |
| 15 | | 12 months. The State Commission may fine, suspend, or |
| 16 | | revoke a self-distribution exemption after a hearing if it |
| 17 | | finds that the exemption holder has made a material |
| 18 | | misrepresentation in its application, violated a revenue |
| 19 | | or alcoholic beverage law of Illinois, exceeded the |
| 20 | | manufacture of 100,000 gallons of spirits in any calendar |
| 21 | | year, or became part of an affiliated group manufacturing |
| 22 | | more than 100,000 gallons of spirits. |
| 23 | | (E) The State Commission may adopt rules governing |
| 24 | | self-distribution exemptions consistent with this Act. |
| 25 | | (F) Nothing in this paragraph shall prohibit a |
| 26 | | self-distribution exemption holder from entering into or |
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| | SB3655 | - 47 - | LRB104 19974 RPS 33425 b |
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| 1 | | simultaneously having a distribution agreement with a |
| 2 | | licensed Illinois importing distributor or a distributor. |
| 3 | | (G) It is the intent of this paragraph to promote and |
| 4 | | continue orderly markets. The General Assembly finds that, |
| 5 | | in order to preserve Illinois' regulatory distribution |
| 6 | | system, it is necessary to create an exception for smaller |
| 7 | | manufacturers in order to afford and allow such smaller |
| 8 | | manufacturers of spirits access to the marketplace in |
| 9 | | order to develop a customer base without impairing the |
| 10 | | integrity of the 3-tier system. |
| 11 | | (b) On or before April 30, 1999, the Commission shall |
| 12 | | present a written report to the Governor and the General |
| 13 | | Assembly that shall be based on a study of the impact of Public |
| 14 | | Act 90-739 on the business of soliciting, selling, and |
| 15 | | shipping alcoholic liquor from outside of this State directly |
| 16 | | to residents of this State. |
| 17 | | As part of its report, the Commission shall provide the |
| 18 | | following information: |
| 19 | | (i) the amount of State excise and sales tax revenues |
| 20 | | generated as a result of Public Act 90-739; |
| 21 | | (ii) the amount of licensing fees received as a result |
| 22 | | of Public Act 90-739; |
| 23 | | (iii) the number of reported violations, the number of |
| 24 | | cease and desist notices issued by the Commission, the |
| 25 | | number of notices of violations issued to the Department |
| 26 | | of Revenue, and the number of notices and complaints of |
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| | SB3655 | - 48 - | LRB104 19974 RPS 33425 b |
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| 1 | | violations to law enforcement officials. |
| 2 | | (Source: P.A. 104-451, eff. 7-1-26.) |
| 3 | | Section 95. No acceleration or delay. Where this Act makes |
| 4 | | changes in a statute that is represented in this Act by text |
| 5 | | that is not yet or no longer in effect (for example, a Section |
| 6 | | represented by multiple versions), the use of that text does |
| 7 | | not accelerate or delay the taking effect of (i) the changes |
| 8 | | made by this Act or (ii) provisions derived from any other |
| 9 | | Public Act. |
| 10 | | Section 99. Effective date. This Act takes effect upon |
| 11 | | becoming law. |