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1 | AN ACT concerning liquor.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Liquor Control Act of 1934 is amended by | |||||||||||||||||||||
5 | changing Sections 3-12 and 6-4 as follows:
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6 | (235 ILCS 5/3-12)
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7 | Sec. 3-12. Powers and duties of State Commission.
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8 | (a) The State commission shall have the following powers, | |||||||||||||||||||||
9 | functions, and
duties:
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10 | (1) To receive applications and to issue licenses to | |||||||||||||||||||||
11 | manufacturers,
foreign importers, importing distributors, | |||||||||||||||||||||
12 | distributors, non-resident dealers,
on premise consumption | |||||||||||||||||||||
13 | retailers, off premise sale retailers, special event
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14 | retailer licensees, special use permit licenses, auction | |||||||||||||||||||||
15 | liquor licenses, brew
pubs, caterer retailers, | |||||||||||||||||||||
16 | non-beverage users, railroads, including owners and
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17 | lessees of sleeping, dining and cafe cars, airplanes, | |||||||||||||||||||||
18 | boats, brokers, and wine
maker's premises licensees in | |||||||||||||||||||||
19 | accordance with the provisions of this Act, and
to suspend | |||||||||||||||||||||
20 | or revoke such licenses upon the State commission's | |||||||||||||||||||||
21 | determination,
upon notice after hearing, that a licensee | |||||||||||||||||||||
22 | has violated any provision of this
Act or any rule or | |||||||||||||||||||||
23 | regulation issued pursuant thereto and in effect for 30 |
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1 | days
prior to such violation. Except in the case of an | ||||||
2 | action taken pursuant to a
violation of Section 6-3, 6-5, | ||||||
3 | or 6-9, any action by the State Commission to
suspend or | ||||||
4 | revoke a licensee's license may be limited to the license | ||||||
5 | for the
specific premises where the violation occurred.
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6 | In lieu of suspending or revoking a license, the | ||||||
7 | commission may impose
a fine, upon the State commission's | ||||||
8 | determination and notice after hearing,
that a licensee has | ||||||
9 | violated any provision of this Act or any rule or
| ||||||
10 | regulation issued pursuant thereto and in effect for 30 | ||||||
11 | days prior to such
violation. | ||||||
12 | For the purpose of this paragraph (1), when determining | ||||||
13 | multiple violations for the sale of alcohol to a person | ||||||
14 | under the age of 21, a second or subsequent violation for | ||||||
15 | the sale of alcohol to a person under the age of 21 shall | ||||||
16 | only be considered if it was committed within 5 years after | ||||||
17 | the date when a prior violation for the sale of alcohol to | ||||||
18 | a person under the age of 21 was committed. | ||||||
19 | The fine imposed under this paragraph may not exceed | ||||||
20 | $500 for each
violation. Each day that the activity, which | ||||||
21 | gave rise to the original fine,
continues is a separate | ||||||
22 | violation. The maximum fine that may be levied against
any | ||||||
23 | licensee, for the period of the license, shall not exceed | ||||||
24 | $20,000.
The maximum penalty that may be imposed on a | ||||||
25 | licensee for selling a bottle of
alcoholic liquor with a | ||||||
26 | foreign object in it or serving from a bottle of
alcoholic |
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1 | liquor with a foreign object in it shall be the destruction | ||||||
2 | of that
bottle of alcoholic liquor for the first 10 bottles | ||||||
3 | so sold or served from by
the licensee. For the eleventh | ||||||
4 | bottle of alcoholic liquor and for each third
bottle | ||||||
5 | thereafter sold or served from by the licensee with a | ||||||
6 | foreign object in
it, the maximum penalty that may be | ||||||
7 | imposed on the licensee is the destruction
of the bottle of | ||||||
8 | alcoholic liquor and a fine of up to $50.
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9 | (2) To adopt such rules and regulations consistent with | ||||||
10 | the
provisions of this Act which shall be necessary to | ||||||
11 | carry on its
functions and duties to the end that the | ||||||
12 | health, safety and welfare of
the People of the State of | ||||||
13 | Illinois shall be protected and temperance in
the | ||||||
14 | consumption of alcoholic liquors shall be fostered and | ||||||
15 | promoted and
to distribute copies of such rules and | ||||||
16 | regulations to all licensees
affected thereby.
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17 | (3) To call upon other administrative departments of | ||||||
18 | the State,
county and municipal governments, county and | ||||||
19 | city police departments and
upon prosecuting officers for | ||||||
20 | such information and assistance as it
deems necessary in | ||||||
21 | the performance of its duties.
| ||||||
22 | (4) To recommend to local commissioners rules and | ||||||
23 | regulations, not
inconsistent with the law, for the | ||||||
24 | distribution and sale of alcoholic
liquors throughout the | ||||||
25 | State.
| ||||||
26 | (5) To inspect, or cause to be inspected, any
premises |
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1 | in this State
where alcoholic liquors are manufactured, | ||||||
2 | distributed, warehoused, or
sold. Nothing in this Act
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3 | authorizes an agent of the Commission to inspect private
| ||||||
4 | areas within the premises without reasonable suspicion or a | ||||||
5 | warrant
during an inspection. "Private areas" include, but | ||||||
6 | are not limited to, safes, personal property, and closed | ||||||
7 | desks.
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8 | (5.1) Upon receipt of a complaint or upon having | ||||||
9 | knowledge that any person
is engaged in business as a | ||||||
10 | manufacturer, importing distributor, distributor,
or | ||||||
11 | retailer without a license or valid license, to notify the | ||||||
12 | local liquor
authority, file a complaint with the State's | ||||||
13 | Attorney's Office of the county
where the incident | ||||||
14 | occurred, or initiate an investigation with the | ||||||
15 | appropriate
law enforcement officials.
| ||||||
16 | (5.2) To issue a cease and desist notice to persons | ||||||
17 | shipping alcoholic
liquor
into this State from a point | ||||||
18 | outside of this State if the shipment is in
violation of | ||||||
19 | this Act.
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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
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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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1 | relation to the alleged violation. If the Commission has
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2 | 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
Commission is satisfied that the alleged violation did | ||||||
7 | occur, it shall proceed
with disciplinary action against | ||||||
8 | the licensee as provided in this Act.
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9 | (6) To hear and determine appeals from orders of a | ||||||
10 | local commission
in accordance with the provisions of this | ||||||
11 | Act, as hereinafter set forth.
Hearings under this | ||||||
12 | subsection shall be held in Springfield or Chicago,
at | ||||||
13 | whichever location is the more convenient for the majority | ||||||
14 | of persons
who are parties to the hearing.
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15 | (7) The commission shall establish uniform systems of | ||||||
16 | accounts to be
kept by all retail licensees having more | ||||||
17 | than 4 employees, and for this
purpose the commission may | ||||||
18 | classify all retail licensees having more
than 4 employees | ||||||
19 | and establish a uniform system of accounts for each
class | ||||||
20 | and prescribe the manner in which such accounts shall be | ||||||
21 | kept.
The commission may also prescribe the forms of | ||||||
22 | accounts to be kept by
all retail licensees having more | ||||||
23 | than 4 employees, including but not
limited to accounts of | ||||||
24 | earnings and expenses and any distribution,
payment, or | ||||||
25 | other distribution of earnings or assets, and any other
| ||||||
26 | forms, records and memoranda which in the judgment of the |
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1 | commission may
be necessary or appropriate to carry out any | ||||||
2 | of the provisions of this
Act, including but not limited to | ||||||
3 | such forms, records and memoranda as
will readily and | ||||||
4 | accurately disclose at all times the beneficial
ownership | ||||||
5 | of such retail licensed business. The accounts, forms,
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6 | records and memoranda shall be available at all reasonable | ||||||
7 | times for
inspection by authorized representatives of the | ||||||
8 | State commission or by
any local liquor control | ||||||
9 | commissioner or his or her authorized representative.
The | ||||||
10 | commission, may, from time to time, alter, amend or repeal, | ||||||
11 | in whole
or in part, any uniform system of accounts, or the | ||||||
12 | form and manner of
keeping accounts.
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13 | (8) In the conduct of any hearing authorized to be held | ||||||
14 | by the
commission, to appoint, at the commission's | ||||||
15 | discretion, hearing officers
to conduct hearings involving | ||||||
16 | complex issues or issues that will require a
protracted | ||||||
17 | period of time to resolve, to examine, or cause to be | ||||||
18 | examined,
under oath, any licensee, and to examine or cause | ||||||
19 | to be examined the books and
records
of such licensee; to | ||||||
20 | hear testimony and take proof material for its
information | ||||||
21 | in the discharge of its duties hereunder; to administer or
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22 | cause to be administered oaths; for any such purpose to | ||||||
23 | issue
subpoena or subpoenas to require the attendance of | ||||||
24 | witnesses and the
production of books, which shall be | ||||||
25 | effective in any part of this State, and
to adopt rules to | ||||||
26 | implement its powers under this paragraph (8).
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1 | Any Circuit Court may by order duly entered,
require | ||||||
2 | the attendance of witnesses and the production of relevant | ||||||
3 | books
subpoenaed by the State commission and the court may | ||||||
4 | compel
obedience to its order by proceedings for contempt.
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5 | (9) To investigate the administration of laws in | ||||||
6 | relation to
alcoholic liquors in this and other states and | ||||||
7 | any foreign countries,
and to recommend from time to time | ||||||
8 | to the Governor and through him or
her to the legislature | ||||||
9 | of this State, such amendments to this Act, if any, as
it | ||||||
10 | may think desirable and as will serve to further the | ||||||
11 | general broad
purposes contained in Section 1-2 hereof.
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12 | (10) To adopt such rules and regulations consistent | ||||||
13 | with the
provisions of this Act which shall be necessary | ||||||
14 | for the control, sale or
disposition of alcoholic liquor | ||||||
15 | damaged as a result of an accident, wreck,
flood, fire or | ||||||
16 | other similar occurrence.
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17 | (11) To develop industry educational programs related | ||||||
18 | to responsible
serving and selling, particularly in the | ||||||
19 | areas of overserving consumers and
illegal underage | ||||||
20 | purchasing and consumption of alcoholic beverages.
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21 | (11.1) To license persons providing education and | ||||||
22 | training to alcohol
beverage sellers and servers for | ||||||
23 | mandatory and non-mandatory training under the
Beverage | ||||||
24 | Alcohol Sellers and Servers
Education and Training | ||||||
25 | (BASSET) programs and to develop and administer a public
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26 | awareness program in Illinois to reduce or eliminate the |
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1 | illegal purchase and
consumption of alcoholic beverage | ||||||
2 | products by persons under the age of 21.
Application for a | ||||||
3 | license shall be made on forms provided by the State
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4 | Commission.
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5 | (12) To develop and maintain a repository of license | ||||||
6 | and regulatory
information.
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7 | (13) On or before January 15, 1994, the Commission | ||||||
8 | shall issue
a written report to the Governor and General | ||||||
9 | Assembly that is to be based on a
comprehensive study of | ||||||
10 | the impact on and implications for the State of Illinois
of | ||||||
11 | Section 1926 of the federal Federal ADAMHA Reorganization | ||||||
12 | Act of 1992 (Public Law
102-321). This study shall address | ||||||
13 | the extent to which Illinois currently
complies with the | ||||||
14 | provisions of P.L. 102-321 and the rules promulgated | ||||||
15 | pursuant
thereto.
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16 | As part of its report, the Commission shall provide the | ||||||
17 | following essential
information:
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18 | (i) the number of retail distributors of tobacco | ||||||
19 | products, by type and
geographic area, in the State;
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20 | (ii) the number of reported citations and | ||||||
21 | successful convictions,
categorized by type and | ||||||
22 | location of retail distributor, for violation of the
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23 | Prevention of Tobacco Use by Minors and Sale and | ||||||
24 | Distribution of Tobacco Products Act and the Smokeless
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25 | Tobacco Limitation Act;
| ||||||
26 | (iii) the extent and nature of organized |
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1 | educational and governmental
activities that are | ||||||
2 | intended to promote, encourage or otherwise secure
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3 | compliance with any Illinois laws that prohibit the | ||||||
4 | sale or distribution of
tobacco products to minors; and
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5 | (iv) the level of access and availability of | ||||||
6 | tobacco products to
individuals under the age of 18.
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7 | To obtain the data necessary to comply with the | ||||||
8 | provisions of P.L. 102-321
and the requirements of this | ||||||
9 | report, the Commission shall conduct random,
unannounced | ||||||
10 | inspections of a geographically and scientifically | ||||||
11 | representative
sample of the State's retail tobacco | ||||||
12 | distributors.
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13 | The Commission shall consult with the Department of | ||||||
14 | Public Health, the
Department of Human Services, the
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15 | Illinois State Police and any
other executive branch | ||||||
16 | agency, and private organizations that may have
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17 | information relevant to this report.
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18 | The Commission may contract with the Food and Drug | ||||||
19 | Administration of the
U.S. Department of Health and Human | ||||||
20 | Services to conduct unannounced
investigations of Illinois | ||||||
21 | tobacco vendors to determine compliance with federal
laws | ||||||
22 | relating to the illegal sale of cigarettes and smokeless | ||||||
23 | tobacco products
to persons under the age of 18.
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24 | (14) On or before April 30, 2008 and every 2 years
| ||||||
25 | thereafter, the Commission shall present a written
report | ||||||
26 | to the Governor and the General Assembly that shall
be |
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1 | based on a study of the impact of Public Act 95-634 this | ||||||
2 | amendatory Act of
the 95th General Assembly on the business | ||||||
3 | of soliciting,
selling, and shipping wine from inside and | ||||||
4 | outside of this
State directly to residents of this State. | ||||||
5 | As part of its
report, the Commission shall provide all of | ||||||
6 | the
following information: | ||||||
7 | (A) The amount of State excise and sales tax
| ||||||
8 | revenues generated. | ||||||
9 | (B) The amount of licensing fees received. | ||||||
10 | (C) The number of cases of wine shipped from inside
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11 | and outside of this State directly to residents of this
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12 | State. | ||||||
13 | (D) The number of alcohol compliance operations
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14 | conducted. | ||||||
15 | (E) The number of winery shipper's licenses
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16 | issued. | ||||||
17 | (F) The number of each of the following: reported
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18 | violations; cease and desist notices issued by the
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19 | Commission; notices of violations issued by
the | ||||||
20 | Commission and to the Department of Revenue;
and | ||||||
21 | notices and complaints of violations to law
| ||||||
22 | enforcement officials, including, without limitation,
| ||||||
23 | the Illinois Attorney General and the U.S. Department
| ||||||
24 | of Treasury's Alcohol and Tobacco Tax and Trade Bureau. | ||||||
25 | (15) As a means to reduce the underage consumption of
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26 | alcoholic liquors, the Commission shall conduct
alcohol |
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1 | compliance operations to investigate whether
businesses | ||||||
2 | that are soliciting, selling, and shipping wine
from inside | ||||||
3 | or outside of this State directly to residents
of this | ||||||
4 | State are licensed by this State or are selling or
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5 | attempting to sell wine to persons under 21 years of age in
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6 | violation of this Act. | ||||||
7 | (16) The Commission shall, in addition to
notifying any | ||||||
8 | appropriate law enforcement agency, submit
notices of | ||||||
9 | complaints or violations of Sections 6-29 and
6-29.1 by | ||||||
10 | persons who do not hold a winery shipper's
license under | ||||||
11 | this amendatory Act to the Illinois Attorney General and
to | ||||||
12 | the U.S. Department of Treasury's Alcohol and Tobacco Tax | ||||||
13 | 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 amendatory Act and annually produces less than 25,000 | ||||||
17 | gallons of wine or a person who has a first-class or | ||||||
18 | second-class wine manufacturer's license, a first-class or | ||||||
19 | second-class wine-maker's license, or a limited wine | ||||||
20 | manufacturer's license under this Act and annually | ||||||
21 | produces less than 25,000 gallons of wine may make | ||||||
22 | application to the Commission for a self-distribution | ||||||
23 | exemption to allow the sale of not more than 5,000 gallons | ||||||
24 | of the exemption holder's wine to retail licensees per | ||||||
25 | year. | ||||||
26 | (B) In the application, which shall be sworn under |
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| |||||||
1 | penalty of perjury, such person shall state (1) the | ||||||
2 | date it was established; (2) its volume of production | ||||||
3 | and sales for each year since its establishment; (3) | ||||||
4 | its efforts to establish distributor relationships; | ||||||
5 | (4) that a self-distribution exemption is necessary to | ||||||
6 | facilitate the marketing of its wine; and (5) that it | ||||||
7 | will comply with the liquor and revenue laws of the | ||||||
8 | United States, this State, and any other state where it | ||||||
9 | is licensed. | ||||||
10 | (C) The Commission shall approve the application | ||||||
11 | for a self-distribution exemption if such person: (1) | ||||||
12 | is in compliance with State revenue and liquor laws; | ||||||
13 | (2) is not a member of any affiliated group that | ||||||
14 | produces more than 25,000 gallons of wine per annum or | ||||||
15 | produces any other alcoholic liquor; (3) will not | ||||||
16 | annually produce for sale more than 25,000 gallons of | ||||||
17 | wine; and (4) will not annually sell more than 5,000 | ||||||
18 | gallons of its wine to retail licensees. | ||||||
19 | (D) A self-distribution exemption holder shall | ||||||
20 | annually certify to the Commission its production of | ||||||
21 | wine in the previous 12 months and its anticipated | ||||||
22 | production and sales for the next 12 months. The | ||||||
23 | Commission may fine, suspend, or revoke a | ||||||
24 | self-distribution exemption after a hearing if it | ||||||
25 | finds that the exemption holder has made a material | ||||||
26 | misrepresentation in its application, violated a |
| |||||||
| |||||||
1 | revenue or liquor law of Illinois, exceeded production | ||||||
2 | of 25,000 gallons of wine in any calendar year, or | ||||||
3 | become part of an affiliated group producing more than | ||||||
4 | 25,000 gallons of wine or any other alcoholic liquor. | ||||||
5 | (E) Except in hearings for violations of this Act | ||||||
6 | or Public Act 95-634 amendatory Act or a bona fide | ||||||
7 | investigation by duly sworn law enforcement officials, | ||||||
8 | the Commission, or its agents, the Commission shall | ||||||
9 | maintain the production and sales information of a | ||||||
10 | self-distribution exemption holder as confidential and | ||||||
11 | shall not release such information to any person. | ||||||
12 | (F) The Commission shall issue regulations | ||||||
13 | governing self-distribution exemptions consistent with | ||||||
14 | this Section and this Act. | ||||||
15 | (G) Nothing in this subsection (17) shall prohibit | ||||||
16 | a self-distribution exemption holder from entering | ||||||
17 | into or simultaneously having a distribution agreement | ||||||
18 | with a licensed Illinois distributor. | ||||||
19 | (H) It is the intent of this subsection (17) to | ||||||
20 | promote and continue orderly markets. The General | ||||||
21 | Assembly finds that in order to preserve Illinois' | ||||||
22 | regulatory distribution system it is necessary to | ||||||
23 | create an exception for smaller makers of wine as their | ||||||
24 | wines are frequently adjusted in varietals, mixes, | ||||||
25 | vintages, and taste to find and create market niches | ||||||
26 | sometimes too small for distributor or importing |
| |||||||
| |||||||
1 | distributor business strategies. Limited | ||||||
2 | self-distribution rights will afford and allow smaller | ||||||
3 | makers of wine access to the marketplace in order to | ||||||
4 | develop a customer base without impairing the | ||||||
5 | integrity of the 3-tier system.
| ||||||
6 | (18) (A) A class 1 brewer licensee, who must also be | ||||||
7 | either a licensed brewer or licensed non-resident dealer | ||||||
8 | and annually manufacture less than 930,000 gallons of beer, | ||||||
9 | may make application to the State Commission for a | ||||||
10 | self-distribution exemption to allow the sale of not more | ||||||
11 | than 232,500 gallons of the exemption holder's beer to | ||||||
12 | retail licensees per year ; however, such authorization for | ||||||
13 | a self-distribution exemption by the class 1 brewer shall | ||||||
14 | not permit the self-distribution of beer manufactured on | ||||||
15 | the licensed premises bearing the name of another | ||||||
16 | manufacturer of beer not owned or under the control of the | ||||||
17 | class 1 brewer . | ||||||
18 | (B) In the application, which shall be sworn under | ||||||
19 | penalty of perjury, the class 1 brewer licensee shall | ||||||
20 | state (1) the date it was established; (2) its volume | ||||||
21 | of beer manufactured and sold for each year since its | ||||||
22 | establishment; (3) its efforts to establish | ||||||
23 | distributor relationships; (4) that a | ||||||
24 | self-distribution exemption is necessary to facilitate | ||||||
25 | the marketing of its beer; and (5) that it will comply | ||||||
26 | with the alcoholic beverage and revenue laws of the |
| |||||||
| |||||||
1 | United States, this State, and any other state where it | ||||||
2 | is licensed. | ||||||
3 | (C) Any application submitted shall be posted on | ||||||
4 | the State Commission's website at least 45 days prior | ||||||
5 | to action by the State Commission. The State Commission | ||||||
6 | shall approve the application for a self-distribution | ||||||
7 | exemption if the class 1 brewer licensee: (1) is in | ||||||
8 | compliance with the State, revenue, and alcoholic | ||||||
9 | beverage laws; (2) is not a member of any affiliated | ||||||
10 | group that manufactures manufacturers more than | ||||||
11 | 930,000 gallons of beer per annum or produces any other | ||||||
12 | alcoholic beverages; (3) shall not annually | ||||||
13 | manufacture for sale more than 930,000 gallons of beer; | ||||||
14 | (4) shall not annually sell more than 232,500 gallons | ||||||
15 | of its beer to retail licensees; and (5) has | ||||||
16 | relinquished any brew pub license held by the licensee, | ||||||
17 | including any ownership interest it held in the | ||||||
18 | licensed brew pub. | ||||||
19 | (D) A self-distribution exemption holder shall | ||||||
20 | annually certify to the State Commission its | ||||||
21 | manufacture of beer during the previous 12 months and | ||||||
22 | its anticipated manufacture and sales of beer for the | ||||||
23 | next 12 months. The State Commission may fine, suspend, | ||||||
24 | or revoke a self-distribution exemption after a | ||||||
25 | hearing if it finds that the exemption holder has made | ||||||
26 | a material misrepresentation in its application, |
| |||||||
| |||||||
1 | violated a revenue or alcoholic beverage law of | ||||||
2 | Illinois, exceeded the manufacture of 930,000 gallons | ||||||
3 | of beer in any calendar year or became part of an | ||||||
4 | affiliated group manufacturing more than 930,000 | ||||||
5 | gallons of beer or any other alcoholic beverage. | ||||||
6 | (E) The State Commission shall issue rules and | ||||||
7 | regulations governing self-distribution exemptions | ||||||
8 | consistent with this Act. | ||||||
9 | (F) Nothing in this paragraph (18) shall prohibit a | ||||||
10 | self-distribution exemption holder from entering into | ||||||
11 | or simultaneously having a distribution agreement with | ||||||
12 | a licensed Illinois importing distributor or a | ||||||
13 | distributor. If a self-distribution exemption holder | ||||||
14 | enters into a distribution agreement and has assigned | ||||||
15 | distribution rights to an importing distributor or | ||||||
16 | distributor, then the self-distribution exemption | ||||||
17 | holder's distribution rights in the assigned | ||||||
18 | territories shall cease in a reasonable time not to | ||||||
19 | exceed 60 days. | ||||||
20 | (G) It is the intent of this paragraph (18) to | ||||||
21 | promote and continue orderly markets. The General | ||||||
22 | Assembly finds that in order to preserve Illinois' | ||||||
23 | regulatory distribution system, it is necessary to | ||||||
24 | create an exception for smaller manufacturers in order | ||||||
25 | to afford and allow such smaller manufacturers of beer | ||||||
26 | access to the marketplace in order to develop a |
| |||||||
| |||||||
1 | customer base without impairing the integrity of the | ||||||
2 | 3-tier system. | ||||||
3 | (b) On or before April 30, 1999, the Commission shall | ||||||
4 | present a written
report to the Governor and the General | ||||||
5 | Assembly that shall be based on a study
of the impact of Public | ||||||
6 | Act 90-739 this amendatory Act of 1998 on the business of | ||||||
7 | soliciting,
selling, and shipping
alcoholic liquor from | ||||||
8 | outside of this State directly to residents of this
State.
| ||||||
9 | As part of its report, the Commission shall provide the | ||||||
10 | following
information:
| ||||||
11 | (i) the amount of State excise and sales tax revenues | ||||||
12 | generated as a
result of Public Act 90-739 this amendatory | ||||||
13 | Act of 1998 ;
| ||||||
14 | (ii) the amount of licensing fees received as a result | ||||||
15 | of Public Act 90-739 this amendatory
Act of 1998 ;
| ||||||
16 | (iii) the number of reported violations, the number of | ||||||
17 | cease and desist
notices issued by the Commission, the | ||||||
18 | number of notices of violations issued
to the Department of | ||||||
19 | Revenue, and the number of notices and complaints of
| ||||||
20 | violations to law enforcement officials.
| ||||||
21 | (Source: P.A. 98-401, eff. 8-16-13; 98-939, eff. 7-1-15; | ||||||
22 | 98-941, eff. 1-1-15; 99-78, eff. 7-20-15; 99-448, eff. 8-24-15; | ||||||
23 | revised 9-13-16.)
| ||||||
24 | (235 ILCS 5/6-4) (from Ch. 43, par. 121)
| ||||||
25 | Sec. 6-4. (a) No person licensed by any licensing authority |
| |||||||
| |||||||
1 | as a
distiller, or a wine manufacturer, or any subsidiary or | ||||||
2 | affiliate
thereof, or any officer, associate, member, partner, | ||||||
3 | representative,
employee, agent or shareholder owning more | ||||||
4 | than 5% of the outstanding
shares of such person shall be | ||||||
5 | issued an importing distributor's or
distributor's license, | ||||||
6 | nor shall any person licensed by any licensing
authority as an | ||||||
7 | importing distributor, distributor or retailer, or any
| ||||||
8 | subsidiary or affiliate thereof, or any officer or associate, | ||||||
9 | member,
partner, representative, employee, agent or | ||||||
10 | shareholder owning more than
5% of the outstanding shares of | ||||||
11 | such person be issued a distiller's
license, a craft | ||||||
12 | distiller's license, or a wine manufacturer's license; and no | ||||||
13 | person or persons
licensed as a distiller or craft distiller by | ||||||
14 | any licensing authority shall have any
interest, directly or | ||||||
15 | indirectly, with such distributor or importing
distributor.
| ||||||
16 | However, an importing distributor or distributor, which on | ||||||
17 | January
1, 1985 is owned by a brewer, or any subsidiary or | ||||||
18 | affiliate thereof or any
officer, associate, member, partner, | ||||||
19 | representative, employee, agent or
shareholder owning more | ||||||
20 | than 5% of the outstanding shares of the importing
distributor | ||||||
21 | or distributor referred to in this paragraph, may own or
| ||||||
22 | acquire an ownership interest of more than 5% of the | ||||||
23 | outstanding shares of
a wine manufacturer and be issued a wine
| ||||||
24 | manufacturer's license by any licensing authority.
| ||||||
25 | (b) The foregoing provisions shall not apply to any person | ||||||
26 | licensed
by any licensing authority as a distiller or wine |
| |||||||
| |||||||
1 | manufacturer, or to
any subsidiary or affiliate of any | ||||||
2 | distiller or wine manufacturer who
shall have been heretofore | ||||||
3 | licensed by the State Commission as either an
importing | ||||||
4 | distributor or distributor during the annual licensing period
| ||||||
5 | expiring June 30, 1947, and shall actually have made sales | ||||||
6 | regularly to
retailers.
| ||||||
7 | (c) Provided, however, that in such instances where a | ||||||
8 | distributor's
or importing distributor's license has been | ||||||
9 | issued to any distiller or
wine manufacturer or to any | ||||||
10 | subsidiary or affiliate of any distiller or
wine manufacturer | ||||||
11 | who has, during the licensing period ending June 30,
1947, sold | ||||||
12 | or distributed as such licensed distributor or importing
| ||||||
13 | distributor alcoholic liquors and wines to retailers, such | ||||||
14 | distiller or
wine manufacturer or any subsidiary or affiliate | ||||||
15 | of any distiller or
wine manufacturer holding such | ||||||
16 | distributor's or importing distributor's
license may continue | ||||||
17 | to sell or distribute to retailers such alcoholic
liquors and | ||||||
18 | wines which are manufactured, distilled, processed or
marketed | ||||||
19 | by distillers and wine manufacturers whose products it sold or
| ||||||
20 | distributed to retailers during the whole or any part of its | ||||||
21 | licensing
periods; and such additional brands and additional | ||||||
22 | products may be added
to the line of such distributor or | ||||||
23 | importing distributor, provided, that
such brands and such | ||||||
24 | products were not sold or distributed by any
distributor or | ||||||
25 | importing distributor licensed by the State Commission
during | ||||||
26 | the licensing period ending June 30, 1947, but can not sell or
|
| |||||||
| |||||||
1 | distribute to retailers any other alcoholic liquors or wines.
| ||||||
2 | (d) It shall be unlawful for any distiller licensed | ||||||
3 | anywhere to have
any stock ownership or interest in any | ||||||
4 | distributor's or importing
distributor's license wherein any | ||||||
5 | other person has an interest therein
who is not a distiller and | ||||||
6 | does not own more than 5% of any stock in any
distillery. | ||||||
7 | Nothing herein contained shall apply to such distillers or
| ||||||
8 | their subsidiaries or affiliates, who had a distributor's or | ||||||
9 | importing
distributor's license during the licensing period | ||||||
10 | ending June 30, 1947,
which license was owned in whole by such | ||||||
11 | distiller, or subsidiaries or
affiliates of such distiller.
| ||||||
12 | (e) Any person licensed as a brewer, class 1 brewer, or | ||||||
13 | class 2 brewer is authorized shall be
permitted to sell on the | ||||||
14 | licensed premises to non-licensees for on or off-premises | ||||||
15 | consumption for the premises in which the licensee he
or she | ||||||
16 | actually conducts such business beer manufactured by the | ||||||
17 | brewer, class 1 brewer, or class 2 brewer ; however, such | ||||||
18 | authorization shall not permit the sale of beer manufactured on | ||||||
19 | the licensed premises (i) bearing the name of another brewer, | ||||||
20 | class 1 brewer, or class 2 brewer or (ii) where the brand, | ||||||
21 | trade name, and intellectual property rights to the beer are | ||||||
22 | not owned or controlled by the manufacturing brewer, class 1 | ||||||
23 | brewer, or class 2 brewer . Such sales shall be limited to | ||||||
24 | on-premises, in-person sales only, for lawful consumption on or | ||||||
25 | off premises. Such authorization shall be considered a | ||||||
26 | privilege granted by the brewer license and, other than a |
| |||||||
| |||||||
1 | manufacturer of beer
as stated above, no manufacturer or | ||||||
2 | distributor or importing
distributor, excluding airplane | ||||||
3 | licensees exercising powers provided in
paragraph (i) of | ||||||
4 | Section 5-1 of this Act, or any subsidiary or affiliate
| ||||||
5 | thereof, or any officer,
associate, member, partner, | ||||||
6 | representative, employee or agent, or
shareholder shall be | ||||||
7 | issued a retailer's license, nor shall any person
having a | ||||||
8 | retailer's license, excluding airplane licensees exercising | ||||||
9 | powers
provided in paragraph (i) of Section 5-1 of this
Act, or | ||||||
10 | any subsidiary or affiliate thereof, or
any officer, associate, | ||||||
11 | member, partner, representative or agent, or
shareholder be | ||||||
12 | issued a manufacturer's license or importing distributor's
| ||||||
13 | license.
| ||||||
14 | A person who holds a class 1 or class 2 brewer license and | ||||||
15 | is authorized by this Section to sell beer to non-licensees | ||||||
16 | shall not sell beer to non-licensees from more than 3 total | ||||||
17 | brewer or commonly owned brew pub licensed locations in this | ||||||
18 | State. The class 1 or class 2 brewer shall designate to the | ||||||
19 | State Commission the brewer or brew pub locations from which it | ||||||
20 | will sell beer to non-licensees. | ||||||
21 | A person licensed as a craft distiller, including a person | ||||||
22 | who holds more than one craft distiller license, not affiliated | ||||||
23 | with any other person manufacturing spirits may be authorized | ||||||
24 | by the Commission to sell up to 2,500 gallons of spirits | ||||||
25 | produced by the person to non-licensees for on or off-premises | ||||||
26 | consumption for the premises in which he or she actually |
| |||||||
| |||||||
1 | conducts business permitting only the retail sale of spirits | ||||||
2 | manufactured at such premises. Such sales shall be limited to | ||||||
3 | on-premises, in-person sales only, for lawful consumption on or | ||||||
4 | off premises, and such authorization shall be considered a | ||||||
5 | privilege granted by the craft distiller license ; however, such | ||||||
6 | authorization shall not permit the sale of spirits manufactured | ||||||
7 | on the licensed premises (i) bearing the name of another | ||||||
8 | distiller or (ii) where the brand, trade name, and intellectual | ||||||
9 | property rights are not owned or controlled by the | ||||||
10 | manufacturing craft distiller . A craft distiller licensed for | ||||||
11 | retail sale shall secure liquor liability insurance coverage in | ||||||
12 | an amount at least equal to the maximum liability amounts set | ||||||
13 | forth in subsection (a) of Section 6-21 of this Act. | ||||||
14 | A craft distiller license holder shall not deliver any | ||||||
15 | alcoholic liquor to any non-licensee off the licensed premises. | ||||||
16 | A craft distiller shall affirm in its annual craft distiller's | ||||||
17 | license application that it does not produce more than 100,000 | ||||||
18 | gallons of distilled spirits annually and that the craft | ||||||
19 | distiller does not sell more than 2,500 gallons of spirits to | ||||||
20 | non-licensees for on or off-premises consumption. In the | ||||||
21 | application, which shall be sworn under penalty of perjury, the | ||||||
22 | craft distiller shall state the volume of production and sales | ||||||
23 | for each year since the craft distiller's establishment. | ||||||
24 | (f) (Blank).
| ||||||
25 | (g) Notwithstanding any of the foregoing prohibitions, a | ||||||
26 | limited wine
manufacturer may sell at retail at its |
| |||||||
| |||||||
1 | manufacturing site for on or off
premises consumption and may | ||||||
2 | sell to distributors. A limited wine manufacturer licensee
| ||||||
3 | shall secure liquor liability insurance coverage in an amount
| ||||||
4 | at least equal to the maximum liability amounts set forth in
| ||||||
5 | subsection (a) of Section 6-21 of this Act.
| ||||||
6 | (h) The changes made to this Section by Public Act 99-47 | ||||||
7 | shall not diminish or impair the rights of any person, whether | ||||||
8 | a distiller, wine manufacturer, agent, or affiliate thereof, | ||||||
9 | who requested in writing and submitted documentation to the | ||||||
10 | State Commission on or before February 18, 2015 to be approved | ||||||
11 | for a retail license pursuant to what has heretofore been | ||||||
12 | subsection (f); provided that, on or before that date, the | ||||||
13 | State Commission considered the intent of that person to apply | ||||||
14 | for the retail license under that subsection and, by recorded | ||||||
15 | vote, the State Commission approved a resolution indicating | ||||||
16 | that such a license application could be lawfully approved upon | ||||||
17 | that person duly filing a formal application for a retail | ||||||
18 | license and if that person, within 90 days of the State | ||||||
19 | Commission appearance and recorded vote, first filed an | ||||||
20 | application with the appropriate local commission, which | ||||||
21 | application was subsequently approved by the appropriate local | ||||||
22 | commission prior to consideration by the State Commission of | ||||||
23 | that person's application for a retail license. It is further | ||||||
24 | provided that the State Commission may approve the person's | ||||||
25 | application for a retail license or renewals of such license if | ||||||
26 | such person continues to diligently adhere to all |
| |||||||
| |||||||
1 | representations made in writing to the State Commission on or | ||||||
2 | before February 18, 2015, or thereafter, or in the affidavit | ||||||
3 | filed by that person with the State Commission to support the | ||||||
4 | issuance of a retail license and to abide by all applicable | ||||||
5 | laws and duly adopted rules. | ||||||
6 | (Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15; | ||||||
7 | 99-642, eff. 7-28-16; 99-902, eff. 8-26-16; revised 10-25-16.)
| ||||||
8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.
|