Public Act 097-0455
 
SB0665 EnrolledLRB097 04428 RPM 44467 b



    AN ACT concerning regulation.

 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly: 

 
    Section 5. The Liquor Control Act of 1934 is amended  by 
changing Section 5-1 as follows:
 
    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
    Sec. 5-1. Licenses issued by the Illinois Liquor Control 
Commission
shall be of the following classes:
    (a) Manufacturer's license - Class 1.
Distiller, Class 2.  
Rectifier, Class 3.  Brewer, Class 4.  First Class Wine

Manufacturer,  Class 5.  Second Class Wine Manufacturer,
Class 6. 
First Class Winemaker, Class 7. Second Class Winemaker, Class 
8.
Limited Wine Manufacturer, Class 9. Craft Distiller, 
    (b) Distributor's license,
    (c) Importing Distributor's license,
    (d) Retailer's license,
    (e) Special Event Retailer's license (not-for-profit),
    (f) Railroad license,
    (g) Boat license,
    (h) Non-Beverage User's license,
    (i) Wine-maker's premises license,
    (j) Airplane license,
    (k) Foreign importer's license,
    (l) Broker's license,
    (m) Non-resident dealer's
license,
    (n) Brew Pub license,
    (o) Auction liquor license,
    (p) Caterer retailer license,
    (q) Special use permit license,
    (r) Winery shipper's license.

    No
person, firm, partnership, corporation, or other legal 
business entity that is
engaged in the manufacturing of wine 
may concurrently obtain and hold a
wine-maker's license and a 
wine manufacturer's license.
    (a) A manufacturer's license shall allow the manufacture,

importation in bulk, storage, distribution and sale of 
alcoholic liquor
to persons without the State, as may be 
permitted by law and to licensees
in this State as follows:
    Class 1. A Distiller may make sales and deliveries of 
alcoholic liquor to
distillers, rectifiers, importing 
distributors, distributors and
non-beverage users and to no 
other licensees.
    Class 2. A Rectifier, who is not a distiller, as defined 
herein, may make
sales and deliveries of alcoholic liquor to 
rectifiers, importing distributors,
distributors, retailers 
and non-beverage users and to no other licensees.
    Class 3. A Brewer may make sales and deliveries of beer to 
importing
distributors, distributors, and to non-licensees, 
and to
retailers provided the brewer obtains an importing 
distributor's license or
distributor's license in accordance 
with the provisions of this Act.
    Class 4. A first class wine-manufacturer may make sales and 
deliveries of
up to 50,000 gallons of wine to manufacturers,

importing
distributors and distributors, and to no other 
licensees.
    Class 5. A second class Wine manufacturer may make sales 
and deliveries
of more than 50,000 gallons of wine to 
manufacturers, importing distributors
and distributors and to 
no other licensees.
    Class 6. A first-class wine-maker's license shall allow the 
manufacture
of up to 50,000 gallons of wine per year, and the

storage
and sale of such
wine to distributors in the State and 
to persons without the
State, as may be permitted by law.  A 
person who, prior to the effective date of this amendatory Act 
of the 95th General Assembly, is a holder of a first-class 
wine-maker's license and annually produces more than 25,000 
gallons of its own wine and who distributes its wine to 
licensed retailers shall cease this practice on or before July 
1, 2008 in compliance with this amendatory Act of the 95th 
General Assembly.
    Class 7. A second-class wine-maker's license shall allow 
the manufacture
of between 50,000 and 150,000 gallons of wine 
per year, and
the
storage and sale of such wine
to distributors 
in this State and to persons without the State, as may be

permitted by law. A person who, prior to the effective date of 
this amendatory Act of the 95th General Assembly, is a holder 
of a second-class wine-maker's license and annually produces 
more than 25,000 gallons of its own wine and who distributes 
its wine to licensed retailers shall cease this practice on or 
before July 1, 2008 in compliance with this amendatory Act of 
the 95th General Assembly.
    Class 8. A limited wine-manufacturer may make sales and 
deliveries not to
exceed 40,000 gallons of wine per year to 
distributors, and to
non-licensees in accordance with the 
provisions of this Act.
    Class 9.   A craft distiller license shall allow the 
manufacture of up to 15,000 5,000 gallons of spirits by 
distillation per year and the storage of such spirits. If a 
craft distiller licensee is not affiliated with any other 
manufacturer, then the craft distiller licensee may sell such 
spirits to distributors in this State and non-licensees to the 
extent permitted by any exemption approved by the Commission 
pursuant to  Section 6-4 of this Act.
    Any craft distiller licensed under this Act who on the 
effective date of this amendatory Act of the 96th General 
Assembly was licensed as a distiller and manufactured no more 
spirits than permitted by this Section shall not be required to 
pay the initial licensing fee. 
    (a-1) A manufacturer which is licensed in this State to 
make sales or
deliveries of alcoholic liquor and which enlists 
agents, representatives, or
individuals acting on its behalf 
who contact licensed retailers on a regular
and continual basis 
in this State must register those agents, representatives,
or 
persons acting on its behalf with the State Commission.
    Registration of agents, representatives, or persons acting 
on behalf of a
manufacturer is fulfilled by submitting a form 
to the Commission.  The form
shall be developed by the 
Commission and shall include the name and address of
the 
applicant, the name and address of the manufacturer he or she 
represents,
the territory or areas assigned to sell to or 
discuss pricing terms of
alcoholic liquor, and any other 
questions deemed appropriate and necessary.
All statements in 
the forms required to be made by law or by rule shall be
deemed 
material, and any person who knowingly misstates any material 
fact under
oath in an application is guilty of a Class B 
misdemeanor.  Fraud,
misrepresentation, false statements, 
misleading statements, evasions, or
suppression of material 
facts in the securing of a registration are grounds for

suspension or revocation of the registration.
    (b) A distributor's license shall allow the wholesale 
purchase and storage
of alcoholic liquors and sale of alcoholic 
liquors to licensees
in this State and to persons without the 
State, as may be permitted by law.
    (c) An importing distributor's license may be issued to and 
held by
those only who are duly licensed distributors, upon the 
filing of an
application by a duly licensed distributor, with 
the Commission and
the Commission shall, without the
payment of 
any fee, immediately issue such importing distributor's

license to the applicant, which shall allow the importation of 
alcoholic
liquor by the licensee into this State from any point 
in the United
States outside this State, and the purchase of 
alcoholic liquor in
barrels, casks or other bulk containers and 
the bottling of such
alcoholic liquors before resale thereof, 
but all bottles or containers
so filled shall be sealed, 
labeled, stamped and otherwise made to comply
with all 
provisions, rules and regulations governing manufacturers in

the preparation and bottling of alcoholic liquors.  The 
importing
distributor's license shall permit such licensee to 
purchase alcoholic
liquor from Illinois licensed non-resident 
dealers and foreign importers only.
    (d) A retailer's license shall allow the licensee to sell 
and offer
for sale at retail, only in the premises specified in 
the license,
alcoholic liquor for use or consumption, but not 
for resale in any form. Nothing in this amendatory Act of the 
95th General Assembly shall deny, limit, remove, or restrict 
the ability of a holder of a retailer's license to transfer, 
deliver, or ship alcoholic liquor to the purchaser for use or 
consumption subject to any applicable local law or ordinance. 
Any retail license issued to a manufacturer shall only
permit 
the manufacturer to sell beer at retail on the premises 
actually
occupied by the manufacturer. For the purpose of 
further describing the type of business conducted at a retail 
licensed premises, a  retailer's licensee may be designated by 
the State Commission as (i) an on premise consumption retailer, 
(ii) an off premise sale retailer, or (iii) a combined on 
premise consumption and off premise sale retailer.

    Notwithstanding any other provision of this subsection 
(d), a retail
licensee may sell alcoholic liquors to a special 
event retailer licensee for
resale to the extent permitted 
under subsection (e).
    (e) A special event retailer's license (not-for-profit) 
shall permit the
licensee to purchase alcoholic liquors from an 
Illinois licensed  distributor
(unless the licensee purchases 
less than $500 of alcoholic liquors for the
special event, in 
which case the licensee may purchase the alcoholic liquors
from 
a licensed retailer) and shall allow the licensee to sell and 
offer for
sale, at retail, alcoholic liquors for use or 
consumption, but not for resale
in any form and only at the 
location and on the specific dates designated for
the special 
event in the license.  An applicant for a special event retailer

license must
(i) furnish with the application:  (A) a resale 
number issued under Section
2c of the Retailers' Occupation Tax 
Act or evidence that the applicant is
registered under Section 
2a of the Retailers' Occupation Tax Act, (B) a
current, valid 
exemption identification
number issued under Section 1g of the 
Retailers' Occupation Tax Act, and a
certification to the 
Commission that the purchase of alcoholic liquors will be
a 
tax-exempt purchase, or (C) a statement that the applicant is 
not registered
under Section 2a of the Retailers' Occupation 
Tax Act, does not hold a resale
number under Section 2c of the 
Retailers' Occupation Tax Act, and does not
hold an exemption 
number under Section 1g of the Retailers' Occupation Tax
Act, 
in which event the Commission shall set forth on the special 
event
retailer's license a statement to that effect; (ii) 
submit with the application proof satisfactory to
the State 
Commission that the applicant will provide dram shop liability

insurance in the maximum limits; and (iii) show proof 
satisfactory to the
State Commission that the applicant has 
obtained local authority
approval.
    (f) A railroad license shall permit the licensee to import 
alcoholic
liquors into this State from any point in the United 
States outside this
State and to store such alcoholic liquors 
in this State; to make wholesale
purchases of alcoholic liquors 
directly from manufacturers, foreign
importers, distributors 
and importing distributors from within or outside
this State; 
and to store such alcoholic liquors in this State; provided

that the above powers may be exercised only in connection with 
the
importation, purchase or storage of alcoholic liquors to be 
sold or
dispensed on a club, buffet, lounge or dining car 
operated on an electric,
gas or steam railway in this State; 
and provided further, that railroad
licensees exercising the 
above powers shall be subject to all provisions of
Article VIII 
of this Act as applied to importing distributors.  A railroad

license shall also permit the licensee to sell or dispense 
alcoholic
liquors on any club, buffet, lounge or dining car 
operated on an electric,
gas or steam railway regularly 
operated by a common carrier in this State,
but shall not 
permit the sale for resale of any alcoholic liquors to any

licensee within this State.  A license shall be obtained for 
each car in which
such sales are made.
    (g) A boat license shall allow the sale of alcoholic liquor 
in
individual drinks, on any passenger boat regularly operated 
as a common
carrier on navigable waters in this State or on any 
riverboat operated
under
the Riverboat Gambling Act, which boat 
or riverboat maintains a public
dining room or restaurant 
thereon.
    (h) A non-beverage user's license shall allow the licensee 
to
purchase alcoholic liquor from a licensed manufacturer or 
importing
distributor, without the imposition of any tax upon 
the business of such
licensed manufacturer or importing 
distributor as to such alcoholic
liquor to be used by such 
licensee solely for the non-beverage purposes
set forth in 
subsection (a) of Section 8-1 of this Act, and
such licenses 
shall be divided and classified and shall permit the
purchase, 
possession and use of limited and stated quantities of

alcoholic liquor as follows:
Class 1, not to exceed ......................... 500 gallons

Class 2, not to exceed ....................... 1,000 gallons

Class 3, not to exceed ....................... 5,000 gallons

Class 4, not to exceed ...................... 10,000 gallons

Class 5, not to exceed ....................... 50,000 gallons
    (i) A wine-maker's premises license shall allow a
licensee 
that concurrently holds a first-class wine-maker's license to 
sell
and offer for sale at retail in the premises specified in 
such license
not more than 50,000 gallons of the first-class 
wine-maker's wine that is
made at the first-class wine-maker's 
licensed premises per year for use or
consumption, but not for 
resale in any form.  A wine-maker's premises
license shall allow 
a licensee who concurrently holds a second-class
wine-maker's 
license to sell and offer for sale at retail in the premises

specified in such license up to 100,000 gallons of the

second-class wine-maker's wine that is made at the second-class 
wine-maker's
licensed premises per year
for use or consumption 
but not for resale in any form.  A wine-maker's premises license 
shall allow a
licensee that concurrently holds a first-class 
wine-maker's license or a second-class
wine-maker's license to 
sell
and offer for sale at retail at the premises specified in 
the wine-maker's premises license, for use or consumption but 
not for resale in any form,  any beer, wine, and spirits 
purchased from a licensed distributor. Upon approval from the

State Commission, a wine-maker's premises license
shall allow 
the licensee to sell and offer for sale at (i) the wine-maker's

licensed premises and (ii) at up to 2 additional locations for 
use and
consumption and not for resale.  Each location shall 
require additional
licensing per location as specified in 
Section 5-3 of this Act. A wine-maker's premises licensee shall

secure liquor liability insurance coverage in an amount at

least equal to the maximum liability amounts set forth in

subsection (a) of Section 6-21 of this Act.

    (j) An airplane license shall permit the licensee to import

alcoholic liquors into this State from any point in the United 
States
outside this State and to store such alcoholic liquors 
in this State; to
make wholesale purchases of alcoholic liquors 
directly from
manufacturers, foreign importers, distributors 
and importing
distributors from within or outside this State; 
and to store such
alcoholic liquors in this State; provided 
that the above powers may be
exercised only in connection with 
the importation, purchase or storage
of alcoholic liquors to be 
sold or dispensed on an airplane; and
provided further, that 
airplane licensees exercising the above powers
shall be subject 
to all provisions of Article VIII of this Act as
applied to 
importing distributors.  An airplane licensee shall also
permit 
the sale or dispensing of alcoholic liquors on any passenger

airplane regularly operated by a common carrier in this State, 
but shall
not permit the sale for resale of any alcoholic 
liquors to any licensee
within this State.  A single airplane 
license shall be required of an
airline company if liquor 
service is provided on board aircraft in this
State.  The annual 
fee for such license shall be as determined in
Section 5-3.
    (k) A foreign importer's license shall permit such licensee 
to purchase
alcoholic liquor from Illinois licensed 
non-resident dealers only, and to
import alcoholic liquor other 
than in bulk from any point outside the
United States and to 
sell such alcoholic liquor to Illinois licensed
importing 
distributors and to no one else in Illinois;
 provided that (i) 
the foreign importer registers with the State Commission
every

brand of
alcoholic liquor that it proposes to sell to Illinois 
licensees during the
license period, (ii)  the foreign importer 
complies with all of the provisions
of Section
6-9 of this Act 
with respect to registration of such Illinois licensees as may

be granted the
right to sell such brands at wholesale,  and 
(iii) the foreign importer complies with the provisions of 
Sections 6-5 and 6-6 of this Act to the same extent that these 
provisions apply to manufacturers.
    (l) (i) A broker's license shall be required of all persons

who solicit
orders for, offer to sell or offer to supply 
alcoholic liquor to
retailers in the State of Illinois, or who 
offer to retailers to ship or
cause to be shipped or to make 
contact with distillers, rectifiers,
brewers or manufacturers 
or any other party within or without the State
of Illinois in 
order that alcoholic liquors be shipped to a distributor,

importing distributor or foreign importer, whether such 
solicitation or
offer is consummated within or without the 
State of Illinois.
    No holder of a retailer's license issued by the Illinois 
Liquor
Control Commission shall purchase or receive any 
alcoholic liquor, the
order for which was solicited or offered 
for sale to such retailer by a
broker unless the broker is the 
holder of a valid broker's license.
    The broker shall, upon the acceptance by a retailer of the 
broker's
solicitation of an order or offer to sell or supply or 
deliver or have
delivered alcoholic liquors, promptly forward 
to the Illinois Liquor
Control Commission a notification of 
said transaction in such form as
the Commission may by 
regulations prescribe.
    (ii) A broker's license shall be required of
a person 
within this State, other than a retail licensee,
who, for a fee 
or commission, promotes, solicits, or accepts orders for

alcoholic liquor, for use or consumption and not for
resale, to 
be shipped from this State and delivered to residents outside 
of
this State by an express company, common carrier, or 
contract carrier.
This Section does not apply to any person who 
promotes, solicits, or accepts
orders for wine as specifically 
authorized in Section 6-29 of this Act.
    A broker's license under this subsection (l)
 shall not 
entitle the holder to
buy or sell any
alcoholic liquors for his 
own account or to take or deliver title to
such alcoholic 
liquors.
    This subsection (l)
 shall not apply to distributors, 
employees of
distributors, or employees of a manufacturer who 
has registered the
trademark, brand or name of the alcoholic 
liquor pursuant to Section 6-9
of this Act, and who regularly 
sells such alcoholic liquor
in the State of Illinois only to 
its registrants thereunder.
    Any agent, representative, or person subject to 
registration pursuant to
subsection (a-1) of this Section shall 
not be eligible to receive a broker's
license.
    (m) A non-resident dealer's license shall permit such 
licensee to ship
into and warehouse alcoholic liquor into this 
State from any point
outside of this State, and to sell such 
alcoholic liquor to Illinois licensed
foreign importers and 
importing distributors and to no one else in this State;

provided that (i) said non-resident dealer shall register with 
the Illinois Liquor
Control Commission each and every brand of 
alcoholic liquor which it proposes
to sell to Illinois 
licensees during the license period, (ii)  it shall comply with 
all of the provisions of Section 6-9 hereof with
respect to 
registration of such Illinois licensees as may be granted the 
right
to sell such brands at wholesale, and (iii) the 
non-resident dealer shall comply with the provisions of 
Sections 6-5 and 6-6 of this Act to the same extent that these 
provisions apply to manufacturers.
    (n) A brew pub license shall allow the licensee to 
manufacture beer only
on the premises specified in the license, 
to make sales of the
beer manufactured on the premises to 
importing distributors, distributors,
and to non-licensees for 
use and consumption, to store the beer upon
the premises, and 
to sell and offer for sale at retail from the licensed

premises, provided that a brew pub licensee shall not sell for 
off-premises
consumption more than 50,000 gallons per year.
    (o) A caterer retailer license shall allow the holder
to 
serve alcoholic liquors as an incidental part of a food service 
that serves
prepared meals which excludes the serving of snacks 
as
the primary meal, either on or off-site whether licensed or 
unlicensed.
    (p) An auction liquor license shall allow the licensee to 
sell and offer
for sale at auction wine and spirits for use or 
consumption, or for resale by
an Illinois liquor licensee in 
accordance with provisions of this Act.  An
auction liquor 
license will be issued to a person and it will permit the

auction liquor licensee to hold the auction anywhere in the 
State.  An auction
liquor license must be obtained for each 
auction at least 14 days in advance of
the auction date.
    (q) A special use permit license shall allow an Illinois 
licensed
retailer to transfer a portion of its alcoholic liquor 
inventory from its
retail licensed premises to the premises 
specified in the license hereby
created, and to sell or offer 
for sale at retail, only in the premises
specified in the 
license hereby created, the transferred alcoholic liquor for

use or consumption, but not for resale in any form.  A special 
use permit
license may be granted for the following time 
periods: one day or less; 2 or
more days to a maximum of 15 days 
per location in any 12 month period.  An
applicant for the 
special use permit license must also submit with the

application proof satisfactory to the State Commission that the 
applicant will
provide dram shop liability insurance to the 
maximum limits and have local
authority approval.
    (r) A winery shipper's license shall allow a person
with a 
first-class or second-class wine manufacturer's
license, a 
first-class or second-class wine-maker's license,
or a limited 
wine manufacturer's license or who is licensed to
make wine 
under the laws of another state to ship wine
made by that 
licensee directly to a resident of this
State who is 21 years 
of age or older for that resident's
personal use and not for 
resale. Prior to receiving a
winery shipper's license, an 
applicant for the license must
provide the Commission with a 
true copy of its current
license in any state in which it is 
licensed as a manufacturer
of wine. An applicant for a winery 
shipper's license must
also complete an application form that 
provides any other
information the Commission deems necessary. 
The
application form shall include an acknowledgement 
consenting
to the jurisdiction of the Commission, the Illinois

Department of Revenue, and the courts of this State concerning

the enforcement of this Act and any related laws, rules, and

regulations, including authorizing the Department of Revenue

and the Commission to conduct audits for the purpose of

ensuring compliance with this amendatory Act.
    A winery shipper licensee must pay to the Department
of 
Revenue the State liquor gallonage tax under Section 8-1 for

all wine that is sold by the licensee and shipped to a person

in this State. For the purposes of Section 8-1, a winery

shipper licensee shall be taxed in the same manner as a

manufacturer of wine. A licensee who is not otherwise required 
to register under the Retailers' Occupation Tax Act must

register under the Use Tax Act to collect and remit use tax to

the Department of Revenue for all gallons of wine that are sold

by the licensee and shipped to persons in this State. If a

licensee fails to remit the tax imposed under this Act in

accordance with the provisions of Article VIII of this Act, the

winery shipper's license shall be revoked in accordance
with 
the provisions of Article VII of this Act. If a licensee
fails 
to properly register and remit tax under the Use Tax Act
or the 
Retailers' Occupation Tax Act for all wine that is sold
by the 
winery shipper and shipped to persons in this
State, the winery 
shipper's license shall be revoked in
accordance with the 
provisions of Article VII of this Act.
    A winery shipper licensee must collect, maintain, and

submit to the Commission on a semi-annual basis the
total 
number of cases per resident of wine shipped to residents
of 
this State.
    A winery shipper licensed under this subsection (r)

must comply with the requirements of Section 6-29 of this 
amendatory Act.

(Source: P.A. 95-331, eff. 8-21-07; 95-634, eff. 6-1-08; 
95-769, eff. 7-29-08; 96-1367, eff. 7-28-10.)
 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.