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| | SB2970 Engrossed | | LRB100 18875 RPS 34119 b |
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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, 5-1, 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.
An |
6 | | action for a violation of this Act shall be commenced by |
7 | | the State Commission within 2 years after the date the |
8 | | State Commission becomes aware of the violation.
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9 | | In lieu of suspending or revoking a license, the |
10 | | commission may impose
a fine, upon the State commission's |
11 | | determination and notice after hearing,
that a licensee has |
12 | | violated any provision of this Act or any rule or
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13 | | regulation issued pursuant thereto and in effect for 30 |
14 | | days prior to such
violation. |
15 | | For the purpose of this paragraph (1), when determining |
16 | | multiple violations for the sale of alcohol to a person |
17 | | under the age of 21, a second or subsequent violation for |
18 | | the sale of alcohol to a person under the age of 21 shall |
19 | | only be considered if it was committed within 5 years after |
20 | | the date when a prior violation for the sale of alcohol to |
21 | | a person under the age of 21 was committed. |
22 | | The fine imposed under this paragraph may not exceed |
23 | | $500 for each
violation. Each day that the activity, which |
24 | | gave rise to the original fine,
continues is a separate |
25 | | violation. The maximum fine that may be levied against
any |
26 | | licensee, for the period of the license, shall not exceed |
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1 | | $20,000.
The maximum penalty that may be imposed on a |
2 | | licensee for selling a bottle of
alcoholic liquor with a |
3 | | foreign object in it or serving from a bottle of
alcoholic |
4 | | liquor with a foreign object in it shall be the destruction |
5 | | of that
bottle of alcoholic liquor for the first 10 bottles |
6 | | so sold or served from by
the licensee. For the eleventh |
7 | | bottle of alcoholic liquor and for each third
bottle |
8 | | thereafter sold or served from by the licensee with a |
9 | | foreign object in
it, the maximum penalty that may be |
10 | | imposed on the licensee is the destruction
of the bottle of |
11 | | alcoholic liquor and a fine of up to $50.
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12 | | Any notice issued by the State Commission to a licensee |
13 | | for a violation of this Act or any notice with respect to |
14 | | settlement or offer in compromise shall include the field |
15 | | report, photographs, and any other supporting |
16 | | documentation necessary to reasonably inform the licensee |
17 | | of the nature and extent of the violation or the conduct |
18 | | alleged to have occurred. |
19 | | (2) To adopt such rules and regulations consistent with |
20 | | the
provisions of this Act which shall be necessary to |
21 | | carry on its
functions and duties to the end that the |
22 | | health, safety and welfare of
the People of the State of |
23 | | Illinois shall be protected and temperance in
the |
24 | | consumption of alcoholic liquors shall be fostered and |
25 | | promoted and
to distribute copies of such rules and |
26 | | regulations to all licensees
affected thereby.
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1 | | (3) To call upon other administrative departments of |
2 | | the State,
county and municipal governments, county and |
3 | | city police departments and
upon prosecuting officers for |
4 | | such information and assistance as it
deems necessary in |
5 | | the performance of its duties.
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6 | | (4) To recommend to local commissioners rules and |
7 | | regulations, not
inconsistent with the law, for the |
8 | | distribution and sale of alcoholic
liquors throughout the |
9 | | State.
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10 | | (5) To inspect, or cause to be inspected, any
premises |
11 | | in this State
where alcoholic liquors are manufactured, |
12 | | distributed, warehoused, or
sold. Nothing in this Act
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13 | | authorizes an agent of the Commission to inspect private
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14 | | areas within the premises without reasonable suspicion or a |
15 | | warrant
during an inspection. "Private areas" include, but |
16 | | are not limited to, safes, personal property, and closed |
17 | | desks.
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18 | | (5.1) Upon receipt of a complaint or upon having |
19 | | knowledge that any person
is engaged in business as a |
20 | | manufacturer, importing distributor, distributor,
or |
21 | | retailer without a license or valid license, to notify the |
22 | | local liquor
authority, file a complaint with the State's |
23 | | Attorney's Office of the county
where the incident |
24 | | occurred, or initiate an investigation with the |
25 | | appropriate
law enforcement officials.
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26 | | (5.2) To issue a cease and desist notice to persons |
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1 | | shipping alcoholic
liquor
into this State from a point |
2 | | outside of this State if the shipment is in
violation of |
3 | | this Act.
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4 | | (5.3) To receive complaints from licensees, local |
5 | | officials, law
enforcement agencies, organizations, and |
6 | | persons stating that any licensee has
been or is violating |
7 | | any provision of this Act or the rules and regulations
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8 | | issued pursuant to this Act. Such complaints shall be in |
9 | | writing, signed and
sworn to by the person making the |
10 | | complaint, and shall state with specificity
the facts in |
11 | | relation to the alleged violation. If the Commission has
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12 | | reasonable grounds to believe that the complaint |
13 | | substantially alleges a
violation of this Act or rules and |
14 | | regulations adopted pursuant to this Act, it
shall conduct |
15 | | an investigation. If, after conducting an investigation, |
16 | | the
Commission is satisfied that the alleged violation did |
17 | | occur, it shall proceed
with disciplinary action against |
18 | | the licensee as provided in this Act.
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19 | | (6) To hear and determine appeals from orders of a |
20 | | local commission
in accordance with the provisions of this |
21 | | Act, as hereinafter set forth.
Hearings under this |
22 | | subsection shall be held in Springfield or Chicago,
at |
23 | | whichever location is the more convenient for the majority |
24 | | of persons
who are parties to the hearing.
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25 | | (7) The commission shall establish uniform systems of |
26 | | accounts to be
kept by all retail licensees having more |
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1 | | than 4 employees, and for this
purpose the commission may |
2 | | classify all retail licensees having more
than 4 employees |
3 | | and establish a uniform system of accounts for each
class |
4 | | and prescribe the manner in which such accounts shall be |
5 | | kept.
The commission may also prescribe the forms of |
6 | | accounts to be kept by
all retail licensees having more |
7 | | than 4 employees, including but not
limited to accounts of |
8 | | earnings and expenses and any distribution,
payment, or |
9 | | other distribution of earnings or assets, and any other
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10 | | forms, records and memoranda which in the judgment of the |
11 | | commission may
be necessary or appropriate to carry out any |
12 | | of the provisions of this
Act, including but not limited to |
13 | | such forms, records and memoranda as
will readily and |
14 | | accurately disclose at all times the beneficial
ownership |
15 | | of such retail licensed business. The accounts, forms,
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16 | | records and memoranda shall be available at all reasonable |
17 | | times for
inspection by authorized representatives of the |
18 | | State commission or by
any local liquor control |
19 | | commissioner or his or her authorized representative.
The |
20 | | commission, may, from time to time, alter, amend or repeal, |
21 | | in whole
or in part, any uniform system of accounts, or the |
22 | | form and manner of
keeping accounts.
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23 | | (8) In the conduct of any hearing authorized to be held |
24 | | by the
commission, to appoint, at the commission's |
25 | | discretion, hearing officers
to conduct hearings involving |
26 | | complex issues or issues that will require a
protracted |
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1 | | period of time to resolve, to examine, or cause to be |
2 | | examined,
under oath, any licensee, and to examine or cause |
3 | | to be examined the books and
records
of such licensee; to |
4 | | hear testimony and take proof material for its
information |
5 | | in the discharge of its duties hereunder; to administer or
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6 | | cause to be administered oaths; for any such purpose to |
7 | | issue
subpoena or subpoenas to require the attendance of |
8 | | witnesses and the
production of books, which shall be |
9 | | effective in any part of this State, and
to adopt rules to |
10 | | implement its powers under this paragraph (8).
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11 | | Any Circuit Court may by order duly entered,
require |
12 | | the attendance of witnesses and the production of relevant |
13 | | books
subpoenaed by the State commission and the court may |
14 | | compel
obedience to its order by proceedings for contempt.
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15 | | (9) To investigate the administration of laws in |
16 | | relation to
alcoholic liquors in this and other states and |
17 | | any foreign countries,
and to recommend from time to time |
18 | | to the Governor and through him or
her to the legislature |
19 | | of this State, such amendments to this Act, if any, as
it |
20 | | may think desirable and as will serve to further the |
21 | | general broad
purposes contained in Section 1-2 hereof.
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22 | | (10) To adopt such rules and regulations consistent |
23 | | with the
provisions of this Act which shall be necessary |
24 | | for the control, sale or
disposition of alcoholic liquor |
25 | | damaged as a result of an accident, wreck,
flood, fire or |
26 | | other similar occurrence.
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1 | | (11) To develop industry educational programs related |
2 | | to responsible
serving and selling, particularly in the |
3 | | areas of overserving consumers and
illegal underage |
4 | | purchasing and consumption of alcoholic beverages.
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5 | | (11.1) To license persons providing education and |
6 | | training to alcohol
beverage sellers and servers for |
7 | | mandatory and non-mandatory training under the
Beverage |
8 | | Alcohol Sellers and Servers
Education and Training |
9 | | (BASSET) programs and to develop and administer a public
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10 | | awareness program in Illinois to reduce or eliminate the |
11 | | illegal purchase and
consumption of alcoholic beverage |
12 | | products by persons under the age of 21.
Application for a |
13 | | license shall be made on forms provided by the State
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14 | | Commission.
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15 | | (12) To develop and maintain a repository of license |
16 | | and regulatory
information.
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17 | | (13) On or before January 15, 1994, the Commission |
18 | | shall issue
a written report to the Governor and General |
19 | | Assembly that is to be based on a
comprehensive study of |
20 | | the impact on and implications for the State of Illinois
of |
21 | | Section 1926 of the federal ADAMHA Reorganization Act of |
22 | | 1992 (Public Law
102-321). This study shall address the |
23 | | extent to which Illinois currently
complies with the |
24 | | provisions of P.L. 102-321 and the rules promulgated |
25 | | pursuant
thereto.
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26 | | As part of its report, the Commission shall provide the |
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1 | | following essential
information:
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2 | | (i) the number of retail distributors of tobacco |
3 | | products, by type and
geographic area, in the State;
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4 | | (ii) the number of reported citations and |
5 | | successful convictions,
categorized by type and |
6 | | location of retail distributor, for violation of the
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7 | | Prevention of Tobacco Use by Minors and Sale and |
8 | | Distribution of Tobacco Products Act and the Smokeless
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9 | | Tobacco Limitation Act;
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10 | | (iii) the extent and nature of organized |
11 | | educational and governmental
activities that are |
12 | | intended to promote, encourage or otherwise secure
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13 | | compliance with any Illinois laws that prohibit the |
14 | | sale or distribution of
tobacco products to minors; and
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15 | | (iv) the level of access and availability of |
16 | | tobacco products to
individuals under the age of 18.
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17 | | To obtain the data necessary to comply with the |
18 | | provisions of P.L. 102-321
and the requirements of this |
19 | | report, the Commission shall conduct random,
unannounced |
20 | | inspections of a geographically and scientifically |
21 | | representative
sample of the State's retail tobacco |
22 | | distributors.
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23 | | The Commission shall consult with the Department of |
24 | | Public Health, the
Department of Human Services, the
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25 | | Illinois State Police and any
other executive branch |
26 | | agency, and private organizations that may have
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1 | | information relevant to this report.
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2 | | The Commission may contract with the Food and Drug |
3 | | Administration of the
U.S. Department of Health and Human |
4 | | Services to conduct unannounced
investigations of Illinois |
5 | | tobacco vendors to determine compliance with federal
laws |
6 | | relating to the illegal sale of cigarettes and smokeless |
7 | | tobacco products
to persons under the age of 18.
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8 | | (14) On or before April 30, 2008 and every 2 years
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9 | | thereafter, the Commission shall present a written
report |
10 | | to the Governor and the General Assembly that shall
be |
11 | | based on a study of the impact of Public Act 95-634 on the |
12 | | business of soliciting,
selling, and shipping wine from |
13 | | inside and outside of this
State directly to residents of |
14 | | this State. As part of its
report, the Commission shall |
15 | | provide all of the
following information: |
16 | | (A) The amount of State excise and sales tax
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17 | | revenues generated. |
18 | | (B) The amount of licensing fees received. |
19 | | (C) The number of cases of wine shipped from inside
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20 | | and outside of this State directly to residents of this
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21 | | State. |
22 | | (D) The number of alcohol compliance operations
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23 | | conducted. |
24 | | (E) The number of winery shipper's licenses
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25 | | issued. |
26 | | (F) The number of each of the following: reported
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1 | | violations; cease and desist notices issued by the
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2 | | Commission; notices of violations issued by
the |
3 | | Commission and to the Department of Revenue;
and |
4 | | notices and complaints of violations to law
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5 | | enforcement officials, including, without limitation,
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6 | | the Illinois Attorney General and the U.S. Department
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7 | | of Treasury's Alcohol and Tobacco Tax and Trade Bureau. |
8 | | (15) As a means to reduce the underage consumption of
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9 | | alcoholic liquors, the Commission shall conduct
alcohol |
10 | | compliance operations to investigate whether
businesses |
11 | | that are soliciting, selling, and shipping wine
from inside |
12 | | or outside of this State directly to residents
of this |
13 | | State are licensed by this State or are selling or
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14 | | attempting to sell wine to persons under 21 years of age in
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15 | | violation of this Act. |
16 | | (16) The Commission shall, in addition to
notifying any |
17 | | appropriate law enforcement agency, submit
notices of |
18 | | complaints or violations of Sections 6-29 and
6-29.1 by |
19 | | persons who do not hold a winery shipper's
license under |
20 | | this Act to the Illinois Attorney General and
to the U.S. |
21 | | Department of Treasury's Alcohol and Tobacco Tax and Trade |
22 | | Bureau. |
23 | | (17)(A) A person licensed to make wine under the laws |
24 | | of another state who has a winery shipper's license under |
25 | | this Act and annually produces less than 25,000 gallons of |
26 | | wine or a person who has a first-class or second-class wine |
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1 | | manufacturer's license, a first-class or second-class |
2 | | wine-maker's license, or a limited wine manufacturer's |
3 | | license under this Act and annually produces less than |
4 | | 25,000 gallons of wine may make application to the |
5 | | Commission for a self-distribution exemption to allow the |
6 | | sale of not more than 5,000 gallons of the exemption |
7 | | holder's wine to retail licensees per year. |
8 | | (B) In the application, which shall be sworn under |
9 | | penalty of perjury, such person shall state (1) the date it |
10 | | was established; (2) its volume of production and sales for |
11 | | each year since its establishment; (3) its efforts to |
12 | | establish distributor relationships; (4) that a |
13 | | self-distribution exemption is necessary to facilitate the |
14 | | marketing of its wine; and (5) that it will comply with the |
15 | | liquor and revenue laws of the United States, this State, |
16 | | and any other state where it is licensed. |
17 | | (C) The Commission shall approve the application for a |
18 | | self-distribution exemption if such person: (1) is in |
19 | | compliance with State revenue and liquor laws; (2) is not a |
20 | | member of any affiliated group that produces more than |
21 | | 25,000 gallons of wine per annum or produces any other |
22 | | alcoholic liquor; (3) will not annually produce for sale |
23 | | more than 25,000 gallons of wine; and (4) will not annually |
24 | | sell more than 5,000 gallons of its wine to retail |
25 | | licensees. |
26 | | (D) A self-distribution exemption holder shall |
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1 | | annually certify to the Commission its production of wine |
2 | | in the previous 12 months and its anticipated production |
3 | | and sales for the next 12 months. The Commission may fine, |
4 | | suspend, or revoke a self-distribution exemption after a |
5 | | hearing if it finds that the exemption holder has made a |
6 | | material misrepresentation in its application, violated a |
7 | | revenue or liquor law of Illinois, exceeded production of |
8 | | 25,000 gallons of wine in any calendar year, or become part |
9 | | of an affiliated group producing more than 25,000 gallons |
10 | | of wine or any other alcoholic liquor. |
11 | | (E) Except in hearings for violations of this Act or |
12 | | Public Act 95-634 or a bona fide investigation by duly |
13 | | sworn law enforcement officials, the Commission, or its |
14 | | agents, the Commission shall maintain the production and |
15 | | sales information of a self-distribution exemption holder |
16 | | as confidential and shall not release such information to |
17 | | any person. |
18 | | (F) The Commission shall issue regulations governing |
19 | | self-distribution exemptions consistent with this Section |
20 | | and this Act. |
21 | | (G) Nothing in this subsection (17) shall prohibit a |
22 | | self-distribution exemption holder from entering into or |
23 | | simultaneously having a distribution agreement with a |
24 | | licensed Illinois distributor. |
25 | | (H) It is the intent of this subsection (17) to promote |
26 | | and continue orderly markets. The General Assembly finds |
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1 | | that in order to preserve Illinois' regulatory |
2 | | distribution system it is necessary to create an exception |
3 | | for smaller makers of wine as their wines are frequently |
4 | | adjusted in varietals, mixes, vintages, and taste to find |
5 | | and create market niches sometimes too small for |
6 | | distributor or importing distributor business strategies. |
7 | | Limited self-distribution rights will afford and allow |
8 | | smaller makers of wine access to the marketplace in order |
9 | | to develop a customer base without impairing the integrity |
10 | | of the 3-tier system.
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11 | | (18)(A) A class 1 brewer licensee, who must also be |
12 | | either a licensed brewer or licensed non-resident dealer |
13 | | and annually manufacture less than 930,000 gallons of beer, |
14 | | may make application to the State Commission for a |
15 | | self-distribution exemption to allow the sale of not more |
16 | | than 232,500 gallons of the exemption holder's beer per |
17 | | year to retail licensees and to brewers, class 1 brewers, |
18 | | and class 2 brewers that, pursuant to subsection (e) of |
19 | | Section 6-4 of this Act, sell beer, cider, or both beer and |
20 | | cider to non-licensees at their breweries per year . |
21 | | (B) In the application, which shall be sworn under |
22 | | penalty of perjury, the class 1 brewer licensee shall state |
23 | | (1) the date it was established; (2) its volume of beer |
24 | | manufactured and sold for each year since its |
25 | | establishment; (3) its efforts to establish distributor |
26 | | relationships; (4) that a self-distribution exemption is |
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1 | | necessary to facilitate the marketing of its beer; and (5) |
2 | | that it will comply with the alcoholic beverage and revenue |
3 | | laws of the United States, this State, and any other state |
4 | | where it is licensed. |
5 | | (C) Any application submitted shall be posted on the |
6 | | State Commission's website at least 45 days prior to action |
7 | | by the State Commission. The State Commission shall approve |
8 | | the application for a self-distribution exemption if the |
9 | | class 1 brewer licensee: (1) is in compliance with the |
10 | | State, revenue, and alcoholic beverage laws; (2) is not a |
11 | | member of any affiliated group that manufactures more than |
12 | | 930,000 gallons of beer per annum or produces any other |
13 | | alcoholic beverages; (3) shall not annually manufacture |
14 | | for sale more than 930,000 gallons of beer; (4) shall not |
15 | | annually sell more than 232,500 gallons of its beer to |
16 | | retail licensees or to brewers, class 1 brewers, and class |
17 | | 2 brewers that, pursuant to subsection (e) of Section 6-4 |
18 | | of this Act, sell beer, cider, or both beer and cider to |
19 | | non-licensees at their breweries ; and (5) has relinquished |
20 | | any brew pub license held by the licensee, including any |
21 | | ownership interest it held in the licensed brew pub. |
22 | | (D) A self-distribution exemption holder shall |
23 | | annually certify to the State Commission its manufacture of |
24 | | beer during the previous 12 months and its anticipated |
25 | | manufacture and sales of beer for the next 12 months. The |
26 | | State Commission may fine, suspend, or revoke a |
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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 alcoholic beverage law of Illinois, exceeded the |
5 | | manufacture of 930,000 gallons of beer in any calendar year |
6 | | or became part of an affiliated group manufacturing more |
7 | | than 930,000 gallons of beer or any other alcoholic |
8 | | beverage. |
9 | | (E) The State Commission shall issue rules and |
10 | | regulations governing self-distribution exemptions |
11 | | consistent with this Act. |
12 | | (F) Nothing in this paragraph (18) shall prohibit a |
13 | | self-distribution exemption holder from entering into or |
14 | | simultaneously having a distribution agreement with a |
15 | | licensed Illinois importing distributor or a distributor. |
16 | | If a self-distribution exemption holder enters into a |
17 | | distribution agreement and has assigned distribution |
18 | | rights to an importing distributor or distributor, then the |
19 | | self-distribution exemption holder's distribution rights |
20 | | in the assigned territories shall cease in a reasonable |
21 | | time not to exceed 60 days. |
22 | | (G) It is the intent of this paragraph (18) to promote |
23 | | and continue orderly markets. The General Assembly finds |
24 | | that in order to preserve Illinois' regulatory |
25 | | distribution system, it is necessary to create an exception |
26 | | for smaller manufacturers in order to afford and allow such |
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1 | | smaller manufacturers of beer access to the marketplace in |
2 | | order to develop a customer base without impairing the |
3 | | integrity of the 3-tier system. |
4 | | (b) On or before April 30, 1999, the Commission shall |
5 | | present a written
report to the Governor and the General |
6 | | Assembly that shall be based on a study
of the impact of Public |
7 | | Act 90-739 on the business of soliciting,
selling, and shipping
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8 | | alcoholic liquor from outside of this State directly to |
9 | | residents of this
State.
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10 | | As part of its report, the Commission shall provide the |
11 | | following
information:
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12 | | (i) the amount of State excise and sales tax revenues |
13 | | generated as a
result of Public Act 90-739;
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14 | | (ii) the amount of licensing fees received as a result |
15 | | of Public Act 90-739;
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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
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20 | | violations to law enforcement officials.
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21 | | (Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15; |
22 | | 100-134, eff. 8-18-17; 100-201, eff. 8-18-17.) |
23 | | (235 ILCS 5/5-1) (from Ch. 43, par. 115) |
24 | | Sec. 5-1. Licenses issued by the Illinois Liquor Control |
25 | | Commission
shall be of the following classes: |
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| | SB2970 Engrossed | - 18 - | LRB100 18875 RPS 34119 b |
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1 | | (a) Manufacturer's license - Class 1.
Distiller, Class 2. |
2 | | Rectifier, Class 3. Brewer, Class 4. First Class Wine
|
3 | | Manufacturer, Class 5. Second Class Wine Manufacturer,
Class 6. |
4 | | First Class Winemaker, Class 7. Second Class Winemaker, Class |
5 | | 8.
Limited Wine Manufacturer, Class 9. Craft Distiller, Class |
6 | | 10. Class 1 Brewer, Class 11. Class 2 Brewer, |
7 | | (b) Distributor's license, |
8 | | (c) Importing Distributor's license, |
9 | | (d) Retailer's license, |
10 | | (e) Special Event Retailer's license (not-for-profit), |
11 | | (f) Railroad license, |
12 | | (g) Boat license, |
13 | | (h) Non-Beverage User's license, |
14 | | (i) Wine-maker's premises license, |
15 | | (j) Airplane license, |
16 | | (k) Foreign importer's license, |
17 | | (l) Broker's license, |
18 | | (m) Non-resident dealer's
license, |
19 | | (n) Brew Pub license, |
20 | | (o) Auction liquor license, |
21 | | (p) Caterer retailer license, |
22 | | (q) Special use permit license, |
23 | | (r) Winery shipper's license, |
24 | | (s) Craft distiller tasting permit. |
25 | | No
person, firm, partnership, corporation, or other legal |
26 | | business entity that is
engaged in the manufacturing of wine |
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| | SB2970 Engrossed | - 19 - | LRB100 18875 RPS 34119 b |
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1 | | may concurrently obtain and hold a
wine-maker's license and a |
2 | | wine manufacturer's license. |
3 | | (a) A manufacturer's license shall allow the manufacture,
|
4 | | importation in bulk, storage, distribution and sale of |
5 | | alcoholic liquor
to persons without the State, as may be |
6 | | permitted by law and to licensees
in this State as follows: |
7 | | Class 1. A Distiller may make sales and deliveries of |
8 | | alcoholic liquor to
distillers, rectifiers, importing |
9 | | distributors, distributors and
non-beverage users and to no |
10 | | other licensees. |
11 | | Class 2. A Rectifier, who is not a distiller, as defined |
12 | | herein, may make
sales and deliveries of alcoholic liquor to |
13 | | rectifiers, importing distributors,
distributors, retailers |
14 | | and non-beverage users and to no other licensees. |
15 | | Class 3. A Brewer may make sales and deliveries of beer to |
16 | | importing
distributors and distributors and may make sales as |
17 | | authorized under subsection (e) of Section 6-4 of this Act. |
18 | | Class 4. A first class wine-manufacturer may make sales and |
19 | | deliveries of
up to 50,000 gallons of wine to manufacturers,
|
20 | | importing
distributors and distributors, and to no other |
21 | | licensees. |
22 | | Class 5. A second class Wine manufacturer may make sales |
23 | | and deliveries
of more than 50,000 gallons of wine to |
24 | | manufacturers, importing distributors
and distributors and to |
25 | | no other licensees. |
26 | | Class 6. A first-class wine-maker's license shall allow the |
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| | SB2970 Engrossed | - 20 - | LRB100 18875 RPS 34119 b |
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1 | | manufacture
of up to 50,000 gallons of wine per year, and the
|
2 | | storage
and sale of such
wine to distributors in the State and |
3 | | to persons without the
State, as may be permitted by law. A |
4 | | person who, prior to June 1, 2008 (the effective date of Public |
5 | | Act 95-634), is a holder of a first-class wine-maker's license |
6 | | and annually produces more than 25,000 gallons of its own wine |
7 | | and who distributes its wine to licensed retailers shall cease |
8 | | this practice on or before July 1, 2008 in compliance with |
9 | | Public Act 95-634. |
10 | | Class 7. A second-class wine-maker's license shall allow |
11 | | the manufacture
of between 50,000 and 150,000 gallons of wine |
12 | | per year, and
the
storage and sale of such wine
to distributors |
13 | | in this State and to persons without the State, as may be
|
14 | | permitted by law. A person who, prior to June 1, 2008 (the |
15 | | effective date of Public Act 95-634), is a holder of a |
16 | | second-class wine-maker's license and annually produces more |
17 | | than 25,000 gallons of its own wine and who distributes its |
18 | | wine to licensed retailers shall cease this practice on or |
19 | | before July 1, 2008 in compliance with Public Act 95-634. |
20 | | Class 8. A limited wine-manufacturer may make sales and |
21 | | deliveries not to
exceed 40,000 gallons of wine per year to |
22 | | distributors, and to
non-licensees in accordance with the |
23 | | provisions of this Act. |
24 | | Class 9. A craft distiller license shall allow the |
25 | | manufacture of up to 100,000 gallons of spirits by distillation |
26 | | per year and the storage of such spirits. If a craft distiller |
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| | SB2970 Engrossed | - 21 - | LRB100 18875 RPS 34119 b |
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1 | | licensee, including a craft distiller licensee who holds more |
2 | | than one craft distiller license, is not affiliated with any |
3 | | other manufacturer of spirits, then the craft distiller |
4 | | licensee may sell such spirits to distributors in this State |
5 | | and up to 2,500 gallons of such spirits to non-licensees to the |
6 | | extent permitted by any exemption approved by the Commission |
7 | | pursuant to Section 6-4 of this Act. A craft distiller license |
8 | | holder may store such spirits at a non-contiguous licensed |
9 | | location, but at no time shall a craft distiller license holder |
10 | | directly or indirectly produce in the aggregate more than |
11 | | 100,000 gallons of spirits per year. |
12 | | A craft distiller licensee may hold more than one craft |
13 | | distiller's license. However, a craft distiller that holds more |
14 | | than one craft distiller license shall not manufacture, in the |
15 | | aggregate, more than 100,000 gallons of spirits by distillation |
16 | | per year and shall not sell, in the aggregate, more than 2,500 |
17 | | gallons of such spirits to non-licensees in accordance with an |
18 | | exemption approved by the State Commission pursuant to Section |
19 | | 6-4 of this Act. |
20 | | Any craft distiller licensed under this Act who on July 28, |
21 | | 2010 (the effective date of Public Act 96-1367) was licensed as |
22 | | a distiller and manufactured no more spirits than permitted by |
23 | | this Section shall not be required to pay the initial licensing |
24 | | fee. |
25 | | Class 10. A class 1 brewer license, which may only be |
26 | | issued to a licensed brewer or licensed non-resident dealer, |
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1 | | shall allow the manufacture of up to 930,000 gallons of beer |
2 | | per year provided that the class 1 brewer licensee does not |
3 | | manufacture more than a combined 930,000 gallons of beer per |
4 | | year and is not a member of or affiliated with, directly or |
5 | | indirectly, a manufacturer that produces more than 930,000 |
6 | | gallons of beer per year or any other alcoholic liquor. A class |
7 | | 1 brewer licensee may make sales and deliveries to importing |
8 | | distributors and distributors and to retail licensees in |
9 | | accordance with the conditions set forth in paragraph (18) of |
10 | | subsection (a) of Section 3-12 of this Act. |
11 | | Class 11. A class 2 brewer license, which may only be |
12 | | issued to a licensed brewer or licensed non-resident dealer, |
13 | | shall allow the manufacture of up to 3,720,000 gallons of beer |
14 | | per year provided that the class 2 brewer licensee does not |
15 | | manufacture more than a combined 3,720,000 gallons of beer per |
16 | | year and is not a member of or affiliated with, directly or |
17 | | indirectly, a manufacturer that produces more than 3,720,000 |
18 | | gallons of beer per year or any other alcoholic liquor. A class |
19 | | 2 brewer licensee may make sales and deliveries to importing |
20 | | distributors and distributors, but shall not make sales or |
21 | | deliveries to any other licensee. If the State Commission |
22 | | provides prior approval, a class 2 brewer licensee may annually |
23 | | transfer up to 3,720,000 gallons of beer manufactured by that |
24 | | class 2 brewer licensee to the premises of a licensed class 2 |
25 | | brewer wholly owned and operated by the same licensee. |
26 | | (a-1) A manufacturer which is licensed in this State to |
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1 | | make sales or
deliveries of alcoholic liquor to licensed |
2 | | distributors or importing distributors and which enlists |
3 | | agents, representatives, or
individuals acting on its behalf |
4 | | who contact licensed retailers on a regular
and continual basis |
5 | | in this State must register those agents, representatives,
or |
6 | | persons acting on its behalf with the State Commission. |
7 | | Registration of agents, representatives, or persons acting |
8 | | on behalf of a
manufacturer is fulfilled by submitting a form |
9 | | to the Commission. The form
shall be developed by the |
10 | | Commission and shall include the name and address of
the |
11 | | applicant, the name and address of the manufacturer he or she |
12 | | represents,
the territory or areas assigned to sell to or |
13 | | discuss pricing terms of
alcoholic liquor, and any other |
14 | | questions deemed appropriate and necessary.
All statements in |
15 | | the forms required to be made by law or by rule shall be
deemed |
16 | | material, and any person who knowingly misstates any material |
17 | | fact under
oath in an application is guilty of a Class B |
18 | | misdemeanor. Fraud,
misrepresentation, false statements, |
19 | | misleading statements, evasions, or
suppression of material |
20 | | facts in the securing of a registration are grounds for
|
21 | | suspension or revocation of the registration. The State |
22 | | Commission shall post a list of registered agents on the |
23 | | Commission's website. |
24 | | (b) A distributor's license shall allow the wholesale |
25 | | purchase and storage
of alcoholic liquors and sale of alcoholic |
26 | | liquors to licensees in this State and to persons without the |
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1 | | State, as may be permitted by law , and the sale of beer, cider, |
2 | | or both beer and cider to brewers, class 1 brewers, and class 2 |
3 | | brewers that, pursuant to subsection (e) of Section 6-4 of this |
4 | | Act, sell beer, cider, or both beer and cider to non-licensees |
5 | | at their breweries . No person licensed as a distributor shall |
6 | | be granted a non-resident dealer's license. |
7 | | (c) An importing distributor's license may be issued to and |
8 | | held by
those only who are duly licensed distributors, upon the |
9 | | filing of an
application by a duly licensed distributor, with |
10 | | the Commission and
the Commission shall, without the
payment of |
11 | | any fee, immediately issue such importing distributor's
|
12 | | license to the applicant, which shall allow the importation of |
13 | | alcoholic
liquor by the licensee into this State from any point |
14 | | in the United
States outside this State, and the purchase of |
15 | | alcoholic liquor in
barrels, casks or other bulk containers and |
16 | | the bottling of such
alcoholic liquors before resale thereof, |
17 | | but all bottles or containers
so filled shall be sealed, |
18 | | labeled, stamped and otherwise made to comply
with all |
19 | | provisions, rules and regulations governing manufacturers in
|
20 | | the preparation and bottling of alcoholic liquors. The |
21 | | importing
distributor's license shall permit such licensee to |
22 | | purchase alcoholic
liquor from Illinois licensed non-resident |
23 | | dealers and foreign importers only. No person licensed as an |
24 | | importing distributor shall be granted a non-resident dealer's |
25 | | license. |
26 | | (d) A retailer's license shall allow the licensee to sell |
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1 | | and offer
for sale at retail, only in the premises specified in |
2 | | the license,
alcoholic liquor for use or consumption, but not |
3 | | for resale in any form. Nothing in Public Act 95-634 shall |
4 | | deny, limit, remove, or restrict the ability of a holder of a |
5 | | retailer's license to transfer, deliver, or ship alcoholic |
6 | | liquor to the purchaser for use or consumption subject to any |
7 | | applicable local law or ordinance. Any retail license issued to |
8 | | a manufacturer shall only
permit the manufacturer to sell beer |
9 | | at retail on the premises actually
occupied by the |
10 | | manufacturer. For the purpose of further describing the type of |
11 | | business conducted at a retail licensed premises, a retailer's |
12 | | licensee may be designated by the State Commission as (i) an on |
13 | | premise consumption retailer, (ii) an off premise sale |
14 | | retailer, or (iii) a combined on premise consumption and off |
15 | | premise sale retailer.
|
16 | | Notwithstanding any other provision of this subsection |
17 | | (d), a retail
licensee may sell alcoholic liquors to a special |
18 | | event retailer licensee for
resale to the extent permitted |
19 | | under subsection (e). |
20 | | (e) A special event retailer's license (not-for-profit) |
21 | | shall permit the
licensee to purchase alcoholic liquors from an |
22 | | Illinois licensed distributor
(unless the licensee purchases |
23 | | less than $500 of alcoholic liquors for the
special event, in |
24 | | which case the licensee may purchase the alcoholic liquors
from |
25 | | a licensed retailer) and shall allow the licensee to sell and |
26 | | offer for
sale, at retail, alcoholic liquors for use or |
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1 | | consumption, but not for resale
in any form and only at the |
2 | | location and on the specific dates designated for
the special |
3 | | event in the license. An applicant for a special event retailer
|
4 | | license must
(i) furnish with the application: (A) a resale |
5 | | number issued under Section
2c of the Retailers' Occupation Tax |
6 | | Act or evidence that the applicant is
registered under Section |
7 | | 2a of the Retailers' Occupation Tax Act, (B) a
current, valid |
8 | | exemption identification
number issued under Section 1g of the |
9 | | Retailers' Occupation Tax Act, and a
certification to the |
10 | | Commission that the purchase of alcoholic liquors will be
a |
11 | | tax-exempt purchase, or (C) a statement that the applicant is |
12 | | not registered
under Section 2a of the Retailers' Occupation |
13 | | Tax Act, does not hold a resale
number under Section 2c of the |
14 | | Retailers' Occupation Tax Act, and does not
hold an exemption |
15 | | number under Section 1g of the Retailers' Occupation Tax
Act, |
16 | | in which event the Commission shall set forth on the special |
17 | | event
retailer's license a statement to that effect; (ii) |
18 | | submit with the application proof satisfactory to
the State |
19 | | Commission that the applicant will provide dram shop liability
|
20 | | insurance in the maximum limits; and (iii) show proof |
21 | | satisfactory to the
State Commission that the applicant has |
22 | | obtained local authority
approval. |
23 | | (f) A railroad license shall permit the licensee to import |
24 | | alcoholic
liquors into this State from any point in the United |
25 | | States outside this
State and to store such alcoholic liquors |
26 | | in this State; to make wholesale
purchases of alcoholic liquors |
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1 | | directly from manufacturers, foreign
importers, distributors |
2 | | and importing distributors from within or outside
this State; |
3 | | and to store such alcoholic liquors in this State; provided
|
4 | | that the above powers may be exercised only in connection with |
5 | | the
importation, purchase or storage of alcoholic liquors to be |
6 | | sold or
dispensed on a club, buffet, lounge or dining car |
7 | | operated on an electric,
gas or steam railway in this State; |
8 | | and provided further, that railroad
licensees exercising the |
9 | | above powers shall be subject to all provisions of
Article VIII |
10 | | of this Act as applied to importing distributors. A railroad
|
11 | | license shall also permit the licensee to sell or dispense |
12 | | alcoholic
liquors on any club, buffet, lounge or dining car |
13 | | operated on an electric,
gas or steam railway regularly |
14 | | operated by a common carrier in this State,
but shall not |
15 | | permit the sale for resale of any alcoholic liquors to any
|
16 | | licensee within this State. A license shall be obtained for |
17 | | each car in which
such sales are made. |
18 | | (g) A boat license shall allow the sale of alcoholic liquor |
19 | | in
individual drinks, on any passenger boat regularly operated |
20 | | as a common
carrier on navigable waters in this State or on any |
21 | | riverboat operated
under
the Riverboat Gambling Act, which boat |
22 | | or riverboat maintains a public
dining room or restaurant |
23 | | thereon. |
24 | | (h) A non-beverage user's license shall allow the licensee |
25 | | to
purchase alcoholic liquor from a licensed manufacturer or |
26 | | importing
distributor, without the imposition of any tax upon |
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1 | | the business of such
licensed manufacturer or importing |
2 | | distributor as to such alcoholic
liquor to be used by such |
3 | | licensee solely for the non-beverage purposes
set forth in |
4 | | subsection (a) of Section 8-1 of this Act, and
such licenses |
5 | | shall be divided and classified and shall permit the
purchase, |
6 | | possession and use of limited and stated quantities of
|
7 | | alcoholic liquor as follows: |
8 | | Class 1, not to exceed ......................... 500 gallons
|
9 | | Class 2, not to exceed ....................... 1,000 gallons
|
10 | | Class 3, not to exceed ....................... 5,000 gallons
|
11 | | Class 4, not to exceed ...................... 10,000 gallons
|
12 | | Class 5, not to exceed ....................... 50,000 gallons |
13 | | (i) A wine-maker's premises license shall allow a
licensee |
14 | | that concurrently holds a first-class wine-maker's license to |
15 | | sell
and offer for sale at retail in the premises specified in |
16 | | such license
not more than 50,000 gallons of the first-class |
17 | | wine-maker's wine that is
made at the first-class wine-maker's |
18 | | licensed premises per year for use or
consumption, but not for |
19 | | resale in any form. A wine-maker's premises
license shall allow |
20 | | a licensee who concurrently holds a second-class
wine-maker's |
21 | | license to sell and offer for sale at retail in the premises
|
22 | | specified in such license up to 100,000 gallons of the
|
23 | | second-class wine-maker's wine that is made at the second-class |
24 | | wine-maker's
licensed premises per year
for use or consumption |
25 | | but not for resale in any form. A wine-maker's premises license |
26 | | shall allow a
licensee that concurrently holds a first-class |
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1 | | wine-maker's license or a second-class
wine-maker's license to |
2 | | sell
and offer for sale at retail at the premises specified in |
3 | | the wine-maker's premises license, for use or consumption but |
4 | | not for resale in any form, any beer, wine, and spirits |
5 | | purchased from a licensed distributor. Upon approval from the
|
6 | | State Commission, a wine-maker's premises license
shall allow |
7 | | the licensee to sell and offer for sale at (i) the wine-maker's
|
8 | | licensed premises and (ii) at up to 2 additional locations for |
9 | | use and
consumption and not for resale. Each location shall |
10 | | require additional
licensing per location as specified in |
11 | | Section 5-3 of this Act. A wine-maker's premises licensee shall
|
12 | | secure liquor liability insurance coverage in an amount at
|
13 | | least equal to the maximum liability amounts set forth in
|
14 | | subsection (a) of Section 6-21 of this Act.
|
15 | | (j) An airplane license shall permit the licensee to import
|
16 | | alcoholic liquors into this State from any point in the United |
17 | | States
outside this State and to store such alcoholic liquors |
18 | | in this State; to
make wholesale purchases of alcoholic liquors |
19 | | directly from
manufacturers, foreign importers, distributors |
20 | | and importing
distributors from within or outside this State; |
21 | | and to store such
alcoholic liquors in this State; provided |
22 | | that the above powers may be
exercised only in connection with |
23 | | the importation, purchase or storage
of alcoholic liquors to be |
24 | | sold or dispensed on an airplane; and
provided further, that |
25 | | airplane licensees exercising the above powers
shall be subject |
26 | | to all provisions of Article VIII of this Act as
applied to |
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1 | | importing distributors. An airplane licensee shall also
permit |
2 | | the sale or dispensing of alcoholic liquors on any passenger
|
3 | | airplane regularly operated by a common carrier in this State, |
4 | | but shall
not permit the sale for resale of any alcoholic |
5 | | liquors to any licensee
within this State. A single airplane |
6 | | license shall be required of an
airline company if liquor |
7 | | service is provided on board aircraft in this
State. The annual |
8 | | fee for such license shall be as determined in
Section 5-3. |
9 | | (k) A foreign importer's license shall permit such licensee |
10 | | to purchase
alcoholic liquor from Illinois licensed |
11 | | non-resident dealers only, and to
import alcoholic liquor other |
12 | | than in bulk from any point outside the
United States and to |
13 | | sell such alcoholic liquor to Illinois licensed
importing |
14 | | distributors and to no one else in Illinois;
provided that (i) |
15 | | the foreign importer registers with the State Commission
every
|
16 | | brand of
alcoholic liquor that it proposes to sell to Illinois |
17 | | licensees during the
license period, (ii) the foreign importer |
18 | | complies with all of the provisions
of Section
6-9 of this Act |
19 | | with respect to registration of such Illinois licensees as may
|
20 | | be granted the
right to sell such brands at wholesale, and |
21 | | (iii) the foreign importer complies with the provisions of |
22 | | Sections 6-5 and 6-6 of this Act to the same extent that these |
23 | | provisions apply to manufacturers. |
24 | | (l) (i) A broker's license shall be required of all persons
|
25 | | who solicit
orders for, offer to sell or offer to supply |
26 | | alcoholic liquor to
retailers in the State of Illinois, or who |
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1 | | offer to retailers to ship or
cause to be shipped or to make |
2 | | contact with distillers, rectifiers,
brewers or manufacturers |
3 | | or any other party within or without the State
of Illinois in |
4 | | order that alcoholic liquors be shipped to a distributor,
|
5 | | importing distributor or foreign importer, whether such |
6 | | solicitation or
offer is consummated within or without the |
7 | | State of Illinois. |
8 | | No holder of a retailer's license issued by the Illinois |
9 | | Liquor
Control Commission shall purchase or receive any |
10 | | alcoholic liquor, the
order for which was solicited or offered |
11 | | for sale to such retailer by a
broker unless the broker is the |
12 | | holder of a valid broker's license. |
13 | | The broker shall, upon the acceptance by a retailer of the |
14 | | broker's
solicitation of an order or offer to sell or supply or |
15 | | deliver or have
delivered alcoholic liquors, promptly forward |
16 | | to the Illinois Liquor
Control Commission a notification of |
17 | | said transaction in such form as
the Commission may by |
18 | | regulations prescribe. |
19 | | (ii) A broker's license shall be required of
a person |
20 | | within this State, other than a retail licensee,
who, for a fee |
21 | | or commission, promotes, solicits, or accepts orders for
|
22 | | alcoholic liquor, for use or consumption and not for
resale, to |
23 | | be shipped from this State and delivered to residents outside |
24 | | of
this State by an express company, common carrier, or |
25 | | contract carrier.
This Section does not apply to any person who |
26 | | promotes, solicits, or accepts
orders for wine as specifically |
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1 | | authorized in Section 6-29 of this Act. |
2 | | A broker's license under this subsection (l)
shall not |
3 | | entitle the holder to
buy or sell any
alcoholic liquors for his |
4 | | own account or to take or deliver title to
such alcoholic |
5 | | liquors. |
6 | | This subsection (l)
shall not apply to distributors, |
7 | | employees of
distributors, or employees of a manufacturer who |
8 | | has registered the
trademark, brand or name of the alcoholic |
9 | | liquor pursuant to Section 6-9
of this Act, and who regularly |
10 | | sells such alcoholic liquor
in the State of Illinois only to |
11 | | its registrants thereunder. |
12 | | Any agent, representative, or person subject to |
13 | | registration pursuant to
subsection (a-1) of this Section shall |
14 | | not be eligible to receive a broker's
license. |
15 | | (m) A non-resident dealer's license shall permit such |
16 | | licensee to ship
into and warehouse alcoholic liquor into this |
17 | | State from any point
outside of this State, and to sell such |
18 | | alcoholic liquor to Illinois licensed
foreign importers and |
19 | | importing distributors and to no one else in this State;
|
20 | | provided that (i) said non-resident dealer shall register with |
21 | | the Illinois Liquor
Control Commission each and every brand of |
22 | | alcoholic liquor which it proposes
to sell to Illinois |
23 | | licensees during the license period, (ii) it shall comply with |
24 | | all of the provisions of Section 6-9 hereof with
respect to |
25 | | registration of such Illinois licensees as may be granted the |
26 | | right
to sell such brands at wholesale, and (iii) the |
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1 | | non-resident dealer shall comply with the provisions of |
2 | | Sections 6-5 and 6-6 of this Act to the same extent that these |
3 | | provisions apply to manufacturers. No person licensed as a |
4 | | non-resident dealer shall be granted a distributor's or |
5 | | importing distributor's license. |
6 | | (n) A brew pub license shall allow the licensee to only (i) |
7 | | manufacture up to 155,000 gallons of beer per year only
on the |
8 | | premises specified in the license, (ii) make sales of the
beer |
9 | | manufactured on the premises or, with the approval of the |
10 | | Commission, beer manufactured on another brew pub licensed |
11 | | premises that is wholly owned and operated by the same licensee |
12 | | to importing distributors, distributors,
and to non-licensees |
13 | | for use and consumption, (iii) store the beer upon
the |
14 | | premises, (iv) sell and offer for sale at retail from the |
15 | | licensed
premises for off-premises
consumption no more than |
16 | | 155,000 gallons per year so long as such sales are only made |
17 | | in-person, (v) sell and offer for sale at retail for use and |
18 | | consumption on the premises specified in the license any form |
19 | | of alcoholic liquor purchased from a licensed distributor or |
20 | | importing distributor, and (vi) with the prior approval of the |
21 | | Commission, annually transfer no more than 155,000 gallons of |
22 | | beer manufactured on the premises to a licensed brew pub wholly |
23 | | owned and operated by the same licensee. |
24 | | A brew pub licensee shall not under any circumstance sell |
25 | | or offer for sale beer manufactured by the brew pub licensee to |
26 | | retail licensees. |
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| | SB2970 Engrossed | - 34 - | LRB100 18875 RPS 34119 b |
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1 | | A person who holds a class 2 brewer license may |
2 | | simultaneously hold a brew pub license if the class 2 brewer |
3 | | (i) does not, under any circumstance, sell or offer for sale |
4 | | beer manufactured by the class 2 brewer to retail licensees; |
5 | | (ii) does not hold more than 3 brew pub licenses in this State; |
6 | | (iii) does not manufacture more than a combined 3,720,000 |
7 | | gallons of beer per year, including the beer manufactured at |
8 | | the brew pub; and (iv) is not a member of or affiliated with, |
9 | | directly or indirectly, a manufacturer that produces more than |
10 | | 3,720,000 gallons of beer per year or any other alcoholic |
11 | | liquor. |
12 | | Notwithstanding any other provision of this Act, a licensed |
13 | | brewer, class 2 brewer, or non-resident dealer who before July |
14 | | 1, 2015 manufactured less than 3,720,000 gallons of beer per |
15 | | year and held a brew pub license on or before July 1, 2015 may |
16 | | (i) continue to qualify for and hold that brew pub license for |
17 | | the licensed premises and (ii) manufacture more than 3,720,000 |
18 | | gallons of beer per year and continue to qualify for and hold |
19 | | that brew pub license if that brewer, class 2 brewer, or |
20 | | non-resident dealer does not simultaneously hold a class 1 |
21 | | brewer license and is not a member of or affiliated with, |
22 | | directly or indirectly, a manufacturer that produces more than |
23 | | 3,720,000 gallons of beer per year or that produces any other |
24 | | alcoholic liquor. |
25 | | (o) A caterer retailer license shall allow the holder
to |
26 | | serve alcoholic liquors as an incidental part of a food service |
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| | SB2970 Engrossed | - 35 - | LRB100 18875 RPS 34119 b |
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1 | | that serves
prepared meals which excludes the serving of snacks |
2 | | as
the primary meal, either on or off-site whether licensed or |
3 | | unlicensed. |
4 | | (p) An auction liquor license shall allow the licensee to |
5 | | sell and offer
for sale at auction wine and spirits for use or |
6 | | consumption, or for resale by
an Illinois liquor licensee in |
7 | | accordance with provisions of this Act. An
auction liquor |
8 | | license will be issued to a person and it will permit the
|
9 | | auction liquor licensee to hold the auction anywhere in the |
10 | | State. An auction
liquor license must be obtained for each |
11 | | auction at least 14 days in advance of
the auction date. |
12 | | (q) A special use permit license shall allow an Illinois |
13 | | licensed
retailer to transfer a portion of its alcoholic liquor |
14 | | inventory from its
retail licensed premises to the premises |
15 | | specified in the license hereby
created, and to sell or offer |
16 | | for sale at retail, only in the premises
specified in the |
17 | | license hereby created, the transferred alcoholic liquor for
|
18 | | use or consumption, but not for resale in any form. A special |
19 | | use permit
license may be granted for the following time |
20 | | periods: one day or less; 2 or
more days to a maximum of 15 days |
21 | | per location in any 12-month period. An
applicant for the |
22 | | special use permit license must also submit with the
|
23 | | application proof satisfactory to the State Commission that the |
24 | | applicant will
provide dram shop liability insurance to the |
25 | | maximum limits and have local
authority approval. |
26 | | (r) A winery shipper's license shall allow a person
with a |
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| | SB2970 Engrossed | - 36 - | LRB100 18875 RPS 34119 b |
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1 | | first-class or second-class wine manufacturer's
license, a |
2 | | first-class or second-class wine-maker's license,
or a limited |
3 | | wine manufacturer's license or who is licensed to
make wine |
4 | | under the laws of another state to ship wine
made by that |
5 | | licensee directly to a resident of this
State who is 21 years |
6 | | of age or older for that resident's
personal use and not for |
7 | | resale. Prior to receiving a
winery shipper's license, an |
8 | | applicant for the license must
provide the Commission with a |
9 | | true copy of its current
license in any state in which it is |
10 | | licensed as a manufacturer
of wine. An applicant for a winery |
11 | | shipper's license must
also complete an application form that |
12 | | provides any other
information the Commission deems necessary. |
13 | | The application form shall include all addresses from which the |
14 | | applicant for a winery shipper's license intends to ship wine, |
15 | | including the name and address of any third party, except for a |
16 | | common carrier, authorized to ship wine on behalf of the |
17 | | manufacturer. The
application form shall include an |
18 | | acknowledgement consenting
to the jurisdiction of the |
19 | | Commission, the Illinois
Department of Revenue, and the courts |
20 | | of this State concerning
the enforcement of this Act and any |
21 | | related laws, rules, and
regulations, including authorizing |
22 | | the Department of Revenue
and the Commission to conduct audits |
23 | | for the purpose of
ensuring compliance with Public Act 95-634, |
24 | | and an acknowledgement that the wine manufacturer is in |
25 | | compliance with Section 6-2 of this Act. Any third party, |
26 | | except for a common carrier, authorized to ship wine on behalf |
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| | SB2970 Engrossed | - 37 - | LRB100 18875 RPS 34119 b |
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1 | | of a first-class or second-class wine manufacturer's licensee, |
2 | | a first-class or second-class wine-maker's licensee, a limited |
3 | | wine manufacturer's licensee, or a person who is licensed to |
4 | | make wine under the laws of another state shall also be |
5 | | disclosed by the winery shipper's licensee, and a copy of the |
6 | | written appointment of the third-party wine provider, except |
7 | | for a common carrier, to the wine manufacturer shall be filed |
8 | | with the State Commission as a supplement to the winery |
9 | | shipper's license application or any renewal thereof. The |
10 | | winery shipper's license holder shall affirm under penalty of |
11 | | perjury, as part of the winery shipper's license application or |
12 | | renewal, that he or she only ships wine, either directly or |
13 | | indirectly through a third-party provider, from the licensee's |
14 | | own production. |
15 | | Except for a common carrier, a third-party provider |
16 | | shipping wine on behalf of a winery shipper's license holder is |
17 | | the agent of the winery shipper's license holder and, as such, |
18 | | a winery shipper's license holder is responsible for the acts |
19 | | and omissions of the third-party provider acting on behalf of |
20 | | the license holder. A third-party provider, except for a common |
21 | | carrier, that engages in shipping wine into Illinois on behalf |
22 | | of a winery shipper's license holder shall consent to the |
23 | | jurisdiction of the State Commission and the State. Any |
24 | | third-party, except for a common carrier, holding such an |
25 | | appointment shall, by February 1 of each calendar year and upon |
26 | | request by the State Commission or the Department of Revenue, |
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| | SB2970 Engrossed | - 38 - | LRB100 18875 RPS 34119 b |
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1 | | file with the State Commission a statement detailing each |
2 | | shipment made to an Illinois resident. The statement shall |
3 | | include the name and address of the third-party provider filing |
4 | | the statement, the time period covered by the statement, and |
5 | | the following information: |
6 | | (1) the name, address, and license number of the winery |
7 | | shipper on whose behalf the shipment was made; |
8 | | (2) the quantity of the products delivered; and |
9 | | (3) the date and address of the shipment. |
10 | | If the Department of Revenue or the State Commission requests a |
11 | | statement under this paragraph, the third-party provider must |
12 | | provide that statement no later than 30 days after the request |
13 | | is made. Any books, records, supporting papers, and documents |
14 | | containing information and data relating to a statement under |
15 | | this paragraph shall be kept and preserved for a period of 3 |
16 | | years, unless their destruction sooner is authorized, in |
17 | | writing, by the Director of Revenue, and shall be open and |
18 | | available to inspection by the Director of Revenue or the State |
19 | | Commission or any duly authorized officer, agent, or employee |
20 | | of the State Commission or the Department of Revenue, at all |
21 | | times during business hours of the day. Any person who violates |
22 | | any provision of this paragraph or any rule of the State |
23 | | Commission for the administration and enforcement of the |
24 | | provisions of this paragraph is guilty of a Class C |
25 | | misdemeanor. In case of a continuing violation, each day's |
26 | | continuance thereof shall be a separate and distinct offense. |
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| | SB2970 Engrossed | - 39 - | LRB100 18875 RPS 34119 b |
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1 | | The State Commission shall adopt rules as soon as |
2 | | practicable to implement the requirements of Public Act 99-904 |
3 | | and shall adopt rules prohibiting any such third-party |
4 | | appointment of a third-party provider, except for a common |
5 | | carrier, that has been deemed by the State Commission to have |
6 | | violated the provisions of this Act with regard to any winery |
7 | | shipper licensee. |
8 | | A winery shipper licensee must pay to the Department
of |
9 | | Revenue the State liquor gallonage tax under Section 8-1 for
|
10 | | all wine that is sold by the licensee and shipped to a person
|
11 | | in this State. For the purposes of Section 8-1, a winery
|
12 | | shipper licensee shall be taxed in the same manner as a
|
13 | | manufacturer of wine. A licensee who is not otherwise required |
14 | | to register under the Retailers' Occupation Tax Act must
|
15 | | register under the Use Tax Act to collect and remit use tax to
|
16 | | the Department of Revenue for all gallons of wine that are sold
|
17 | | by the licensee and shipped to persons in this State. If a
|
18 | | licensee fails to remit the tax imposed under this Act in
|
19 | | accordance with the provisions of Article VIII of this Act, the
|
20 | | winery shipper's license shall be revoked in accordance
with |
21 | | the provisions of Article VII of this Act. If a licensee
fails |
22 | | to properly register and remit tax under the Use Tax Act
or the |
23 | | Retailers' Occupation Tax Act for all wine that is sold
by the |
24 | | winery shipper and shipped to persons in this
State, the winery |
25 | | shipper's license shall be revoked in
accordance with the |
26 | | provisions of Article VII of this Act. |
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| | SB2970 Engrossed | - 40 - | LRB100 18875 RPS 34119 b |
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1 | | A winery shipper licensee must collect, maintain, and
|
2 | | submit to the Commission on a semi-annual basis the
total |
3 | | number of cases per resident of wine shipped to residents
of |
4 | | this State.
A winery shipper licensed under this subsection (r)
|
5 | | must comply with the requirements of Section 6-29 of this Act. |
6 | | Pursuant to paragraph (5.1) or (5.3) of subsection (a) of |
7 | | Section 3-12, the State Commission may receive, respond to, and |
8 | | investigate any complaint and impose any of the remedies |
9 | | specified in paragraph (1) of subsection (a) of Section 3-12. |
10 | | As used in this subsection, "third-party provider" means |
11 | | any entity that provides fulfillment house services, including |
12 | | warehousing, packaging, distribution, order processing, or |
13 | | shipment of wine, but not the sale of wine, on behalf of a |
14 | | licensed winery shipper. |
15 | | (s) A craft distiller tasting permit license shall allow an |
16 | | Illinois licensed craft distiller to transfer a portion of its |
17 | | alcoholic liquor inventory from its craft distiller licensed |
18 | | premises to the premises specified in the license hereby |
19 | | created and to conduct a sampling, only in the premises |
20 | | specified in the license hereby created, of the transferred |
21 | | alcoholic liquor in accordance with subsection (c) of Section |
22 | | 6-31 of this Act. The transferred alcoholic liquor may not be |
23 | | sold or resold in any form. An applicant for the craft |
24 | | distiller tasting permit license must also submit with the |
25 | | application proof satisfactory to the State Commission that the |
26 | | applicant will provide dram shop liability insurance to the |
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| | SB2970 Engrossed | - 41 - | LRB100 18875 RPS 34119 b |
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1 | | maximum limits and have local authority approval. |
2 | | (Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16; |
3 | | 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff. |
4 | | 1-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17.)
|
5 | | (235 ILCS 5/6-4) (from Ch. 43, par. 121)
|
6 | | Sec. 6-4. (a) No person licensed by any licensing authority |
7 | | as a
distiller, or a wine manufacturer, or any subsidiary or |
8 | | affiliate
thereof, or any officer, associate, member, partner, |
9 | | representative,
employee, agent or shareholder owning more |
10 | | than 5% of the outstanding
shares of such person shall be |
11 | | issued an importing distributor's or
distributor's license, |
12 | | nor shall any person licensed by any licensing
authority as an |
13 | | importing distributor, distributor or retailer, or any
|
14 | | subsidiary or affiliate thereof, or any officer or associate, |
15 | | member,
partner, representative, employee, agent or |
16 | | shareholder owning more than
5% of the outstanding shares of |
17 | | such person be issued a distiller's
license, a craft |
18 | | distiller's license, or a wine manufacturer's license; and no |
19 | | person or persons
licensed as a distiller or craft distiller by |
20 | | any licensing authority shall have any
interest, directly or |
21 | | indirectly, with such distributor or importing
distributor.
|
22 | | However, an importing distributor or distributor, which on |
23 | | January
1, 1985 is owned by a brewer, or any subsidiary or |
24 | | affiliate thereof or any
officer, associate, member, partner, |
25 | | representative, employee, agent or
shareholder owning more |
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| | SB2970 Engrossed | - 42 - | LRB100 18875 RPS 34119 b |
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1 | | than 5% of the outstanding shares of the importing
distributor |
2 | | or distributor referred to in this paragraph, may own or
|
3 | | acquire an ownership interest of more than 5% of the |
4 | | outstanding shares of
a wine manufacturer and be issued a wine
|
5 | | manufacturer's license by any licensing authority.
|
6 | | (b) The foregoing provisions shall not apply to any person |
7 | | licensed
by any licensing authority as a distiller or wine |
8 | | manufacturer, or to
any subsidiary or affiliate of any |
9 | | distiller or wine manufacturer who
shall have been heretofore |
10 | | licensed by the State Commission as either an
importing |
11 | | distributor or distributor during the annual licensing period
|
12 | | expiring June 30, 1947, and shall actually have made sales |
13 | | regularly to
retailers.
|
14 | | (c) Provided, however, that in such instances where a |
15 | | distributor's
or importing distributor's license has been |
16 | | issued to any distiller or
wine manufacturer or to any |
17 | | subsidiary or affiliate of any distiller or
wine manufacturer |
18 | | who has, during the licensing period ending June 30,
1947, sold |
19 | | or distributed as such licensed distributor or importing
|
20 | | distributor alcoholic liquors and wines to retailers, such |
21 | | distiller or
wine manufacturer or any subsidiary or affiliate |
22 | | of any distiller or
wine manufacturer holding such |
23 | | distributor's or importing distributor's
license may continue |
24 | | to sell or distribute to retailers such alcoholic
liquors and |
25 | | wines which are manufactured, distilled, processed or
marketed |
26 | | by distillers and wine manufacturers whose products it sold or
|
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| | SB2970 Engrossed | - 43 - | LRB100 18875 RPS 34119 b |
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1 | | distributed to retailers during the whole or any part of its |
2 | | licensing
periods; and such additional brands and additional |
3 | | products may be added
to the line of such distributor or |
4 | | importing distributor, provided, that
such brands and such |
5 | | products were not sold or distributed by any
distributor or |
6 | | importing distributor licensed by the State Commission
during |
7 | | the licensing period ending June 30, 1947, but can not sell or
|
8 | | distribute to retailers any other alcoholic liquors or wines.
|
9 | | (d) It shall be unlawful for any distiller licensed |
10 | | anywhere to have
any stock ownership or interest in any |
11 | | distributor's or importing
distributor's license wherein any |
12 | | other person has an interest therein
who is not a distiller and |
13 | | does not own more than 5% of any stock in any
distillery. |
14 | | Nothing herein contained shall apply to such distillers or
|
15 | | their subsidiaries or affiliates, who had a distributor's or |
16 | | importing
distributor's license during the licensing period |
17 | | ending June 30, 1947,
which license was owned in whole by such |
18 | | distiller, or subsidiaries or
affiliates of such distiller.
|
19 | | (e) Any person licensed as a brewer, class 1 brewer, or |
20 | | class 2 brewer shall be
permitted to sell on the licensed |
21 | | premises to non-licensees for on or off-premises consumption |
22 | | for the premises in which he
or she actually conducts such |
23 | | business : (i) beer manufactured by the brewer, class 1 brewer, |
24 | | or class 2 brewer ; (ii) beer manufactured by any other brewer, |
25 | | class 1 brewer, or class 2 brewer; and (iii) cider . Such sales |
26 | | shall be limited to on-premises, in-person sales only, for |
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| | SB2970 Engrossed | - 44 - | LRB100 18875 RPS 34119 b |
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1 | | lawful consumption on or off premises. Such authorization shall |
2 | | be considered a privilege granted by the brewer license and, |
3 | | other than a manufacturer of beer
as stated above, no |
4 | | manufacturer or distributor or importing
distributor, |
5 | | excluding airplane licensees exercising powers provided in
|
6 | | paragraph (i) of Section 5-1 of this Act, or any subsidiary or |
7 | | affiliate
thereof, or any officer,
associate, member, partner, |
8 | | representative, employee or agent, or
shareholder shall be |
9 | | issued a retailer's license, nor shall any person
having a |
10 | | retailer's license, excluding airplane licensees exercising |
11 | | powers
provided in paragraph (i) of Section 5-1 of this
Act, or |
12 | | any subsidiary or affiliate thereof, or
any officer, associate, |
13 | | member, partner, representative or agent, or
shareholder be |
14 | | issued a manufacturer's license or importing distributor's
|
15 | | license.
|
16 | | A person who holds a class 1 or class 2 brewer license and |
17 | | is authorized by this Section to sell beer to non-licensees |
18 | | shall not sell beer to non-licensees from more than 3 total |
19 | | brewer or commonly owned brew pub licensed locations in this |
20 | | State. The class 1 or class 2 brewer shall designate to the |
21 | | State Commission the brewer or brew pub locations from which it |
22 | | will sell beer to non-licensees. |
23 | | A person licensed as a craft distiller, including a person |
24 | | who holds more than one craft distiller license, not affiliated |
25 | | with any other person manufacturing spirits may be authorized |
26 | | by the Commission to sell up to 2,500 gallons of spirits |
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| | SB2970 Engrossed | - 45 - | LRB100 18875 RPS 34119 b |
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1 | | produced by the person to non-licensees for on or off-premises |
2 | | consumption for the premises in which he or she actually |
3 | | conducts business permitting only the retail sale of spirits |
4 | | manufactured at such premises. Such sales shall be limited to |
5 | | on-premises, in-person sales only, for lawful consumption on or |
6 | | off premises, and such authorization shall be considered a |
7 | | privilege granted by the craft distiller license. A craft |
8 | | distiller licensed for retail sale shall secure liquor |
9 | | liability insurance coverage in an amount at least equal to the |
10 | | maximum liability amounts set forth in subsection (a) of |
11 | | Section 6-21 of this Act. |
12 | | A craft distiller license holder shall not deliver any |
13 | | alcoholic liquor to any non-licensee off the licensed premises. |
14 | | A craft distiller shall affirm in its annual craft distiller's |
15 | | license application that it does not produce more than 100,000 |
16 | | gallons of distilled spirits annually and that the craft |
17 | | distiller does not sell more than 2,500 gallons of spirits to |
18 | | non-licensees for on or off-premises consumption. In the |
19 | | application, which shall be sworn under penalty of perjury, the |
20 | | craft distiller shall state the volume of production and sales |
21 | | for each year since the craft distiller's establishment. |
22 | | (f) (Blank).
|
23 | | (g) Notwithstanding any of the foregoing prohibitions, a |
24 | | limited wine
manufacturer may sell at retail at its |
25 | | manufacturing site for on or off
premises consumption and may |
26 | | sell to distributors. A limited wine manufacturer licensee
|
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| | SB2970 Engrossed | - 46 - | LRB100 18875 RPS 34119 b |
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1 | | shall secure liquor liability insurance coverage in an amount
|
2 | | at least equal to the maximum liability amounts set forth in
|
3 | | subsection (a) of Section 6-21 of this Act.
|
4 | | (h) The changes made to this Section by Public Act 99-47 |
5 | | shall not diminish or impair the rights of any person, whether |
6 | | a distiller, wine manufacturer, agent, or affiliate thereof, |
7 | | who requested in writing and submitted documentation to the |
8 | | State Commission on or before February 18, 2015 to be approved |
9 | | for a retail license pursuant to what has heretofore been |
10 | | subsection (f); provided that, on or before that date, the |
11 | | State Commission considered the intent of that person to apply |
12 | | for the retail license under that subsection and, by recorded |
13 | | vote, the State Commission approved a resolution indicating |
14 | | that such a license application could be lawfully approved upon |
15 | | that person duly filing a formal application for a retail |
16 | | license and if that person, within 90 days of the State |
17 | | Commission appearance and recorded vote, first filed an |
18 | | application with the appropriate local commission, which |
19 | | application was subsequently approved by the appropriate local |
20 | | commission prior to consideration by the State Commission of |
21 | | that person's application for a retail license. It is further |
22 | | provided that the State Commission may approve the person's |
23 | | application for a retail license or renewals of such license if |
24 | | such person continues to diligently adhere to all |
25 | | representations made in writing to the State Commission on or |
26 | | before February 18, 2015, or thereafter, or in the affidavit |
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| | SB2970 Engrossed | - 47 - | LRB100 18875 RPS 34119 b |
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1 | | filed by that person with the State Commission to support the |
2 | | issuance of a retail license and to abide by all applicable |
3 | | laws and duly adopted rules. |
4 | | (Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15; |
5 | | 99-642, eff. 7-28-16; 99-902, eff. 8-26-16; 100-201, eff. |
6 | | 8-18-17.)
|
7 | | Section 99. Effective date. This Act takes effect upon |
8 | | becoming law.
|