Sen. Kimberly A. Lightford

Filed: 5/31/2026

 

 


 

 


 
10400HB0952sam002LRB104 04854 RPS 38716 a

1
AMENDMENT TO HOUSE BILL 952

2    AMENDMENT NO. ______. Amend House Bill 952, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Liquor Control Act of 1934 is amended by
6changing Sections 3-12, 5-1, 7-1, and 7-6 as follows:
 
7    (235 ILCS 5/3-12)
8    (Text of Section before amendment by P.A. 104-451)
9    Sec. 3-12. Powers and duties of State Commission.
10    (a) The State Commission shall have the following powers,
11functions, and duties:
12        (1) To receive applications and to issue licenses to
13    manufacturers, foreign importers, importing distributors,
14    distributors, non-resident dealers, on premise consumption
15    retailers, off premise sale retailers, special event
16    retailer licensees, special use permit licenses, auction

 

 

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1    liquor licenses, brew pubs, caterer retailers,
2    non-beverage users, railroads, including owners and
3    lessees of sleeping, dining and cafe cars, airplanes,
4    boats, brokers, and wine maker's premises licensees in
5    accordance with the provisions of this Act, and to suspend
6    or revoke such licenses upon the State Commission's
7    determination, upon notice after hearing, that a licensee
8    has violated any provision of this Act or any rule or
9    regulation issued pursuant thereto and in effect for 30
10    days prior to such violation. Except in the case of an
11    action taken pursuant to a violation of Section 6-3, 6-5,
12    or 6-9, any action by the State Commission to suspend or
13    revoke a licensee's license may be limited to the license
14    for the specific premises where the violation occurred. An
15    action for a violation of this Act shall be commenced by
16    the State Commission within 2 years after the date the
17    State Commission becomes aware of the violation.
18        In lieu of suspending or revoking a license, the
19    commission may impose a fine, upon the State Commission's
20    determination and notice after hearing, that a licensee
21    has violated any provision of this Act or any rule or
22    regulation issued pursuant thereto and in effect for 30
23    days prior to such violation.
24        For the purpose of this paragraph (1), when
25    determining multiple violations for the sale of alcohol to
26    a person under the age of 21, a second or subsequent

 

 

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1    violation for the sale of alcohol to a person under the age
2    of 21 shall only be considered if it was committed within 5
3    years after the date when a prior violation for the sale of
4    alcohol to a person under the age of 21 was committed.
5        The fine imposed under this paragraph may not exceed
6    $500 for each violation. Each day that the activity, which
7    gave rise to the original fine, continues is a separate
8    violation. The maximum fine that may be levied against any
9    licensee, for the period of the license, shall not exceed
10    $20,000. The maximum penalty that may be imposed on a
11    licensee for selling a bottle of alcoholic liquor with a
12    foreign object in it or serving from a bottle of alcoholic
13    liquor with a foreign object in it shall be the
14    destruction of that bottle of alcoholic liquor for the
15    first 10 bottles so sold or served from by the licensee.
16    For the eleventh bottle of alcoholic liquor and for each
17    third bottle thereafter sold or served from by the
18    licensee with a foreign object in it, the maximum penalty
19    that may be imposed on the licensee is the destruction of
20    the bottle of alcoholic liquor and a fine of up to $50.
21        Any notice issued by the State Commission to a
22    licensee for a violation of this Act or any notice with
23    respect to settlement or offer in compromise shall include
24    the field report, photographs, and any other supporting
25    documentation necessary to reasonably inform the licensee
26    of the nature and extent of the violation or the conduct

 

 

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1    alleged to have occurred. The failure to include such
2    required documentation shall result in the dismissal of
3    the action.
4        (2) To adopt such rules and regulations consistent
5    with the provisions of this Act which shall be necessary
6    to carry on its functions and duties to the end that the
7    health, safety and welfare of the People of the State of
8    Illinois shall be protected and temperance in the
9    consumption of alcoholic liquors shall be fostered and
10    promoted and to distribute copies of such rules and
11    regulations to all licensees affected thereby.
12        (3) To call upon other administrative departments of
13    the State, county and municipal governments, county and
14    city police departments and upon prosecuting officers for
15    such information and assistance as it deems necessary in
16    the performance of its duties.
17        (4) To recommend to local commissioners rules and
18    regulations, not inconsistent with the law, for the
19    distribution and sale of alcoholic liquors throughout the
20    State.
21        (5) To inspect, or cause to be inspected, any premises
22    in this State where alcoholic liquors are manufactured,
23    distributed, warehoused, or sold. Nothing in this Act
24    authorizes an agent of the State Commission to inspect
25    private areas within the premises without reasonable
26    suspicion or a warrant during an inspection. "Private

 

 

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1    areas" include, but are not limited to, safes, personal
2    property, and closed desks.
3        (5.1) Upon receipt of a complaint or upon having
4    knowledge that any person is engaged in business as a
5    manufacturer, importing distributor, distributor, or
6    retailer without a license or valid license, to conduct an
7    investigation. If, after conducting an investigation, the
8    State Commission is satisfied that the alleged conduct
9    occurred or is occurring, it may issue a cease and desist
10    notice as provided in this Act, impose civil penalties as
11    provided in this Act, notify the local liquor authority,
12    or file a complaint with the State's Attorney's Office of
13    the county where the incident occurred or the Attorney
14    General.
15        (5.2) Upon receipt of a complaint or upon having
16    knowledge that any person is shipping alcoholic liquor
17    into this State from a point outside of this State if the
18    shipment is in violation of this Act, to conduct an
19    investigation. If, after conducting an investigation, the
20    State Commission is satisfied that the alleged conduct
21    occurred or is occurring, it may issue a cease and desist
22    notice as provided in this Act, impose civil penalties as
23    provided in this Act, notify the foreign jurisdiction, or
24    file a complaint with the State's Attorney's Office of the
25    county where the incident occurred or the Attorney
26    General.

 

 

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1        (5.3) To receive complaints from licensees, local
2    officials, law enforcement agencies, organizations, and
3    persons stating that any licensee has been or is violating
4    any provision of this Act or the rules and regulations
5    issued pursuant to this Act. Such complaints shall be in
6    writing, signed and sworn to by the person making the
7    complaint, and shall state with specificity the facts in
8    relation to the alleged violation. If the State Commission
9    has reasonable grounds to believe that the complaint
10    substantially alleges a violation of this Act or rules and
11    regulations adopted pursuant to this Act, it shall conduct
12    an investigation. If, after conducting an investigation,
13    the State Commission is satisfied that the alleged
14    violation did occur, it shall proceed with disciplinary
15    action against the licensee as provided in this Act.
16        (5.4) To make arrests and issue notices of civil
17    violations where necessary for the enforcement of this
18    Act.
19        (5.5) To investigate any and all unlicensed activity.
20        (5.6) To impose civil penalties or fines to any person
21    who, without holding a valid license, engages in conduct
22    that requires a license pursuant to this Act, in an amount
23    not to exceed $20,000 for each offense as determined by
24    the State Commission. A civil penalty shall be assessed by
25    the State Commission after a hearing is held in accordance
26    with the provisions set forth in this Act regarding the

 

 

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1    provision of a hearing for the revocation or suspension of
2    a license.
3        (6) To hear and determine appeals from orders of a
4    local commission in accordance with the provisions of this
5    Act, as hereinafter set forth. Hearings under this
6    subsection shall be held in Springfield or Chicago, at
7    whichever location is the more convenient for the majority
8    of persons who are parties to the hearing.
9        (7) The State Commission shall establish uniform
10    systems of accounts to be kept by all retail licensees
11    having more than 4 employees, and for this purpose the
12    State Commission may classify all retail licensees having
13    more than 4 employees and establish a uniform system of
14    accounts for each class and prescribe the manner in which
15    such accounts shall be kept. The State Commission may also
16    prescribe the forms of accounts to be kept by all retail
17    licensees having more than 4 employees, including, but not
18    limited to, accounts of earnings and expenses and any
19    distribution, payment, or other distribution of earnings
20    or assets, and any other forms, records, and memoranda
21    which in the judgment of the commission may be necessary
22    or appropriate to carry out any of the provisions of this
23    Act, including, but not limited to, such forms, records,
24    and memoranda as will readily and accurately disclose at
25    all times the beneficial ownership of such retail licensed
26    business. The accounts, forms, records, and memoranda

 

 

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1    shall be available at all reasonable times for inspection
2    by authorized representatives of the State Commission or
3    by any local liquor control commissioner or his or her
4    authorized representative. The commission may, from time
5    to time, alter, amend, or repeal, in whole or in part, any
6    uniform system of accounts, or the form and manner of
7    keeping accounts.
8        (8) In the conduct of any hearing authorized to be
9    held by the State Commission, to appoint, at the
10    commission's discretion, hearing officers to conduct
11    hearings involving complex issues or issues that will
12    require a protracted period of time to resolve, to
13    examine, or cause to be examined, under oath, any
14    licensee, and to examine or cause to be examined the books
15    and records of such licensee; to hear testimony and take
16    proof material for its information in the discharge of its
17    duties hereunder; to administer or cause to be
18    administered oaths; for any such purpose to issue subpoena
19    or subpoenas to require the attendance of witnesses and
20    the production of books, which shall be effective in any
21    part of this State, and to adopt rules to implement its
22    powers under this paragraph (8).
23        Any circuit court may, by order duly entered, require
24    the attendance of witnesses and the production of relevant
25    books subpoenaed by the State Commission and the court may
26    compel obedience to its order by proceedings for contempt.

 

 

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1        (9) To investigate the administration of laws in
2    relation to alcoholic liquors in this and other states and
3    any foreign countries, and to recommend from time to time
4    to the Governor and through him or her to the legislature
5    of this State, such amendments to this Act, if any, as it
6    may think desirable and as will serve to further the
7    general broad purposes contained in Section 1-2 hereof.
8        (10) To adopt such rules and regulations consistent
9    with the provisions of this Act which shall be necessary
10    for the control, sale, or disposition of alcoholic liquor
11    damaged as a result of an accident, wreck, flood, fire, or
12    other similar occurrence.
13        (11) To develop industry educational programs related
14    to responsible serving and selling, particularly in the
15    areas of overserving consumers and illegal underage
16    purchasing and consumption of alcoholic beverages.
17        (11.1) To license persons providing education and
18    training to alcohol beverage sellers and servers for
19    mandatory and non-mandatory training under the Beverage
20    Alcohol Sellers and Servers Education and Training
21    (BASSET) programs and to develop and administer a public
22    awareness program in Illinois to reduce or eliminate the
23    illegal purchase and consumption of alcoholic beverage
24    products by persons under the age of 21. Application for a
25    license shall be made on forms provided by the State
26    Commission.

 

 

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1        (12) To develop and maintain a repository of license
2    and regulatory information.
3        (13) (Blank).
4        (14) On or before April 30, 2008 and every 2 years
5    thereafter, the State Commission shall present a written
6    report to the Governor and the General Assembly that shall
7    be based on a study of the impact of Public Act 95-634 on
8    the business of soliciting, selling, and shipping wine
9    from inside and outside of this State directly to
10    residents of this State. As part of its report, the State
11    Commission shall provide all of the following information:
12            (A) The amount of State excise and sales tax
13        revenues generated.
14            (B) The amount of licensing fees received.
15            (C) The number of cases of wine shipped from
16        inside and outside of this State directly to residents
17        of this State.
18            (D) The number of alcohol compliance operations
19        conducted.
20            (E) The number of winery shipper's licenses
21        issued.
22            (F) The number of each of the following: reported
23        violations; cease and desist notices issued by the
24        Commission; notices of violations issued by the
25        Commission and to the Department of Revenue; and
26        notices and complaints of violations to law

 

 

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1        enforcement officials, including, without limitation,
2        the Illinois Attorney General and the U.S. Department
3        of Treasury's Alcohol and Tobacco Tax and Trade
4        Bureau.
5        (15) As a means to reduce the underage consumption of
6    alcoholic liquors, the State Commission shall conduct
7    alcohol compliance operations to investigate whether
8    businesses that are soliciting, selling, and shipping wine
9    from inside or outside of this State directly to residents
10    of this State are licensed by this State or are selling or
11    attempting to sell wine to persons under 21 years of age in
12    violation of this Act.
13        (16) The State Commission shall, in addition to
14    notifying any appropriate law enforcement agency, submit
15    notices of complaints or violations of Sections 6-29 and
16    6-29.1 by persons who do not hold a winery shipper's
17    license under this Act to the Illinois Attorney General
18    and to the U.S. Department of Treasury's Alcohol and
19    Tobacco Tax and Trade Bureau.
20        (17)(A) A person licensed to make wine under the laws
21    of another state who has a winery shipper's license under
22    this Act and annually produces less than 25,000 gallons of
23    wine or a person who has a first-class or second-class
24    wine manufacturer's license, a first-class or second-class
25    wine-maker's license, or a limited wine manufacturer's
26    license under this Act and annually produces less than

 

 

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1    25,000 gallons of wine may make application to the
2    Commission for a self-distribution exemption to allow the
3    sale of not more than 5,000 gallons of the exemption
4    holder's wine to retail licensees per year and to sell
5    cider, mead, or both cider and mead to brewers, class 1
6    brewers, class 2 brewers, and class 3 brewers that,
7    pursuant to subsection (e) of Section 6-4 of this Act,
8    sell beer, cider, mead, or any combination thereof to
9    non-licensees at their breweries.
10        (B) In the application, which shall be sworn under
11    penalty of perjury, such person shall state (1) the date
12    it was established; (2) its volume of production and sales
13    for each year since its establishment; (3) its efforts to
14    establish distributor relationships; (4) that a
15    self-distribution exemption is necessary to facilitate the
16    marketing of its wine; and (5) that it will comply with the
17    liquor and revenue laws of the United States, this State,
18    and any other state where it is licensed.
19        (C) The State Commission shall approve the application
20    for a self-distribution exemption if such person: (1) is
21    in compliance with State revenue and liquor laws; (2) is
22    not a member of any affiliated group that produces
23    directly or indirectly more than 25,000 gallons of wine
24    per annum, 930,000 gallons of beer per annum, or 50,000
25    gallons of spirits per annum; (3) will not annually
26    produce for sale more than 25,000 gallons of wine, 930,000

 

 

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1    gallons of beer, or 50,000 gallons of spirits; and (4)
2    will not annually sell more than 5,000 gallons of its wine
3    to retail licensees.
4        (D) A self-distribution exemption holder shall
5    annually certify to the State Commission its production of
6    wine in the previous 12 months and its anticipated
7    production and sales for the next 12 months. The State
8    Commission may fine, suspend, or revoke a
9    self-distribution exemption after a hearing if it finds
10    that the exemption holder has made a material
11    misrepresentation in its application, violated a revenue
12    or liquor law of Illinois, exceeded production of 25,000
13    gallons of wine, 930,000 gallons of beer, or 50,000
14    gallons of spirits in any calendar year, or become part of
15    an affiliated group producing more than 25,000 gallons of
16    wine, 930,000 gallons of beer, or 50,000 gallons of
17    spirits.
18        (E) Except in hearings for violations of this Act or
19    Public Act 95-634 or a bona fide investigation by duly
20    sworn law enforcement officials, the State Commission, or
21    its agents, the State Commission shall maintain the
22    production and sales information of a self-distribution
23    exemption holder as confidential and shall not release
24    such information to any person.
25        (F) The State Commission shall issue regulations
26    governing self-distribution exemptions consistent with

 

 

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1    this Section and this Act.
2        (G) Nothing in this paragraph (17) shall prohibit a
3    self-distribution exemption holder from entering into or
4    simultaneously having a distribution agreement with a
5    licensed Illinois distributor.
6        (H) It is the intent of this paragraph (17) to promote
7    and continue orderly markets. The General Assembly finds
8    that, in order to preserve Illinois' regulatory
9    distribution system, it is necessary to create an
10    exception for smaller makers of wine as their wines are
11    frequently adjusted in varietals, mixes, vintages, and
12    taste to find and create market niches sometimes too small
13    for distributor or importing distributor business
14    strategies. Limited self-distribution rights will afford
15    and allow smaller makers of wine access to the marketplace
16    in order to develop a customer base without impairing the
17    integrity of the 3-tier system.
18        (18)(A) A class 1 brewer licensee, who must also be
19    either a licensed brewer or licensed non-resident dealer
20    and annually manufacture less than 930,000 gallons of
21    beer, may make application to the State Commission for a
22    self-distribution exemption to allow the sale of not more
23    than 232,500 gallons per year of the exemption holder's
24    beer to retail licensees and to brewers, class 1 brewers,
25    and class 2 brewers that, pursuant to subsection (e) of
26    Section 6-4 of this Act, sell beer, cider, mead, or any

 

 

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1    combination thereof to non-licensees at their breweries.
2        (B) In the application, which shall be sworn under
3    penalty of perjury, the class 1 brewer licensee shall
4    state (1) the date it was established; (2) its volume of
5    beer manufactured and sold for each year since its
6    establishment; (3) its efforts to establish distributor
7    relationships; (4) that a self-distribution exemption is
8    necessary to facilitate the marketing of its beer; and (5)
9    that it will comply with the alcoholic beverage and
10    revenue laws of the United States, this State, and any
11    other state where it is licensed.
12        (C) Any application submitted shall be posted on the
13    State Commission's website at least 45 days prior to
14    action by the State Commission. The State Commission shall
15    approve the application for a self-distribution exemption
16    if the class 1 brewer licensee: (1) is in compliance with
17    the State, revenue, and alcoholic beverage laws; (2) is
18    not a member of any affiliated group that manufactures,
19    directly or indirectly, more than 930,000 gallons of beer
20    per annum, 25,000 gallons of wine per annum, or 50,000
21    gallons of spirits per annum; (3) shall not annually
22    manufacture for sale more than 930,000 gallons of beer,
23    25,000 gallons of wine, or 50,000 gallons of spirits; (4)
24    shall not annually sell more than 232,500 gallons of its
25    beer to retail licensees and class 3 brewers and to
26    brewers, class 1 brewers, and class 2 brewers that,

 

 

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1    pursuant to subsection (e) of Section 6-4 of this Act,
2    sell beer, cider, mead, or any combination thereof to
3    non-licensees at their breweries; and (5) has relinquished
4    any brew pub license held by the licensee, including any
5    ownership interest it held in the licensed brew pub.
6        (D) A self-distribution exemption holder shall
7    annually certify to the State Commission its manufacture
8    of beer during the previous 12 months and its anticipated
9    manufacture and sales of beer for the next 12 months. The
10    State Commission may fine, suspend, or revoke a
11    self-distribution exemption after a hearing if it finds
12    that the exemption holder has made a material
13    misrepresentation in its application, violated a revenue
14    or alcoholic beverage law of Illinois, exceeded the
15    manufacture of 930,000 gallons of beer, 25,000 gallons of
16    wine, or 50,000 gallons of spirits in any calendar year or
17    became part of an affiliated group manufacturing more than
18    930,000 gallons of beer, 25,000 gallons of wine, or 50,000
19    gallons of spirits.
20        (E) The State Commission shall issue rules and
21    regulations governing self-distribution exemptions
22    consistent with this Act.
23        (F) Nothing in this paragraph (18) shall prohibit a
24    self-distribution exemption holder from entering into or
25    simultaneously having a distribution agreement with a
26    licensed Illinois importing distributor or a distributor.

 

 

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

 

 

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1    self-distribution exemption is necessary to facilitate the
2    marketing of its spirits; and (5) that it will comply with
3    the alcoholic beverage and revenue laws of the United
4    States, this State, and any other state where it is
5    licensed.
6        (C) Any application submitted shall be posted on the
7    State Commission's website at least 45 days prior to
8    action by the State Commission. The State Commission shall
9    approve the application for a self-distribution exemption
10    if the applicant: (1) is in compliance with State revenue
11    and alcoholic beverage laws; (2) is not a member of any
12    affiliated group that produces more than 50,000 gallons of
13    spirits per annum, 930,000 gallons of beer per annum, or
14    25,000 gallons of wine per annum; (3) does not annually
15    manufacture for sale more than 50,000 gallons of spirits,
16    930,000 gallons of beer, or 25,000 gallons of wine; and
17    (4) does not annually sell more than 5,000 gallons of its
18    spirits to retail licensees.
19        (D) A self-distribution exemption holder shall
20    annually certify to the State Commission its manufacture
21    of spirits during the previous 12 months and its
22    anticipated manufacture and sales of spirits for the next
23    12 months. The State Commission may fine, suspend, or
24    revoke a 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 revenue

 

 

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1    or alcoholic beverage law of Illinois, exceeded the
2    manufacture of 50,000 gallons of spirits, 930,000 gallons
3    of beer, or 25,000 gallons of wine in any calendar year, or
4    has become part of an affiliated group manufacturing more
5    than 50,000 gallons of spirits, 930,000 gallons of beer,
6    or 25,000 gallons of wine.
7        (E) The State Commission shall adopt rules governing
8    self-distribution exemptions consistent with this Act.
9        (F) Nothing in this paragraph (19) shall prohibit a
10    self-distribution exemption holder from entering into or
11    simultaneously having a distribution agreement with a
12    licensed Illinois importing distributor or a distributor.
13        (G) It is the intent of this paragraph (19) to promote
14    and continue orderly markets. The General Assembly finds
15    that in order to preserve Illinois' regulatory
16    distribution system, it is necessary to create an
17    exception for smaller manufacturers in order to afford and
18    allow such smaller manufacturers of spirits access to the
19    marketplace in order to develop a customer base without
20    impairing the integrity of the 3-tier system.
21        (20)(A) A class 3 brewer licensee who must manufacture
22    less than 465,000 gallons of beer in the aggregate and not
23    more than 155,000 gallons at any single brewery premises
24    may make application to the State Commission for a
25    self-distribution exemption to allow the sale of not more
26    than 6,200 gallons of beer from each in-state or

 

 

10400HB0952sam002- 20 -LRB104 04854 RPS 38716 a

1    out-of-state class 3 brewery premises, which shall not
2    exceed 18,600 gallons annually in the aggregate, that is
3    manufactured at a wholly owned class 3 brewer's in-state
4    or out-of-state licensed premises to retail licensees and
5    class 3 brewers and to brewers, class 1 brewers, class 2
6    brewers that, pursuant to subsection (e) of Section 6-4,
7    sell beer, cider, or both beer and cider to non-licensees
8    at their licensed breweries.
9        (B) In the application, which shall be sworn under
10    penalty of perjury, the class 3 brewer licensee shall
11    state:
12            (1) the date it was established;
13            (2) its volume of beer manufactured and sold for
14        each year since its establishment;
15            (3) its efforts to establish distributor
16        relationships;
17            (4) that a self-distribution exemption is
18        necessary to facilitate the marketing of its beer; and
19            (5) that it will comply with the alcoholic
20        beverage and revenue laws of the United States, this
21        State, and any other state where it is licensed.
22        (C) Any application submitted shall be posted on the
23    State Commission's website at least 45 days before action
24    by the State Commission. The State Commission shall
25    approve the application for a self-distribution exemption
26    if the class 3 brewer licensee: (1) is in compliance with

 

 

10400HB0952sam002- 21 -LRB104 04854 RPS 38716 a

1    the State, revenue, and alcoholic beverage laws; (2) is
2    not a member of any affiliated group that manufacturers,
3    directly or indirectly, more than 465,000 gallons of beer
4    per annum; (3) shall not annually manufacture for sale
5    more than 465,000 gallons of beer or more than 155,000
6    gallons at any single brewery premises; and (4) shall not
7    annually sell more than 6,200 gallons of beer from each
8    in-state or out-of-state class 3 brewery premises, and
9    shall not exceed 18,600 gallons annually in the aggregate,
10    to retail licensees and class 3 brewers and to brewers,
11    class 1 brewers, and class 2 brewers that, pursuant to
12    subsection (e) of Section 6-4 of this Act, sell beer,
13    cider, or both beer and cider to non-licensees at their
14    breweries.
15        (D) A self-distribution exemption holder shall
16    annually certify to the State Commission its manufacture
17    of beer during the previous 12 months and its anticipated
18    manufacture and sales of beer for the next 12 months. The
19    State Commission may fine, suspend, or revoke a
20    self-distribution exemption after a hearing if it finds
21    that the exemption holder has made a material
22    misrepresentation in its application, violated a revenue
23    or alcoholic beverage law of Illinois, exceeded the
24    manufacture of 465,000 gallons of beer in any calendar
25    year or became part of an affiliated group manufacturing
26    more than 465,000 gallons of beer, or exceeded the sale to

 

 

10400HB0952sam002- 22 -LRB104 04854 RPS 38716 a

1    retail licensees, brewers, class 1 brewers, class 2
2    brewers, and class 3 brewers of 6,200 gallons per brewery
3    location or 18,600 gallons in the aggregate.
4        (E) The State Commission may adopt rules governing
5    self-distribution exemptions consistent with this Act.
6        (F) Nothing in this paragraph shall prohibit a
7    self-distribution exemption holder from entering into or
8    simultaneously having a distribution agreement with a
9    licensed Illinois importing distributor or a distributor.
10    If a self-distribution exemption holder enters into a
11    distribution agreement and has assigned distribution
12    rights to an importing distributor or distributor, then
13    the self-distribution exemption holder's distribution
14    rights in the assigned territories shall cease in a
15    reasonable time not to exceed 60 days.
16        (G) It is the intent of this paragraph to promote and
17    continue orderly markets. The General Assembly finds that
18    in order to preserve Illinois' regulatory distribution
19    system, it is necessary to create an exception for smaller
20    manufacturers in order to afford and allow such smaller
21    manufacturers of beer access to the marketplace in order
22    to develop a customer base without impairing the integrity
23    of the 3-tier system.
24    (b) On or before April 30, 1999, the Commission shall
25present a written report to the Governor and the General
26Assembly that shall be based on a study of the impact of Public

 

 

10400HB0952sam002- 23 -LRB104 04854 RPS 38716 a

1Act 90-739 on the business of soliciting, selling, and
2shipping alcoholic liquor from outside of this State directly
3to residents of this State.
4    As part of its report, the Commission shall provide the
5following information:
6        (i) the amount of State excise and sales tax revenues
7    generated as a result of Public Act 90-739;
8        (ii) the amount of licensing fees received as a result
9    of Public Act 90-739;
10        (iii) the number of reported violations, the number of
11    cease and desist notices issued by the Commission, the
12    number of notices of violations issued to the Department
13    of Revenue, and the number of notices and complaints of
14    violations to law enforcement officials.
15(Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19;
16101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff.
178-20-21; 102-813, eff. 5-13-22.)
 
18    (Text of Section after amendment by P.A. 104-451)
19    Sec. 3-12. Powers and duties of State Commission.
20    (a) The State Commission shall have the following powers,
21functions, and duties:
22        (1) To receive applications and to issue licenses to
23    manufacturers, foreign importers, importing distributors,
24    distributors, non-resident dealers, on premise consumption
25    retailers, off premise sale retailers, special event

 

 

10400HB0952sam002- 24 -LRB104 04854 RPS 38716 a

1    retailer licensees, special use permit licenses, auction
2    liquor licenses, brew pubs, caterer retailers,
3    non-beverage users, railroads, including owners and
4    lessees of sleeping, dining, and cafe cars, airplanes,
5    boats, brokers, and wine maker's premises licensees in
6    accordance with the provisions of this Act, and to suspend
7    or revoke such licenses upon the State Commission's
8    determination, upon notice after hearing, that a licensee
9    has 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. Except in the case of an
12    action taken pursuant to a violation of Section 6-3, 6-5,
13    or 6-9, any action by the State Commission to suspend or
14    revoke a licensee's license may be limited to the license
15    for the specific premises where the violation occurred. An
16    action for a violation of this Act shall be commenced by
17    the State Commission within 2 years after the date the
18    State Commission becomes aware of the violation.
19        In lieu of suspending or revoking a license, the State
20    Commission may impose a fine, upon the State Commission's
21    determination and 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
24    days prior to such violation.
25        For the purpose of this paragraph (1), when
26    determining multiple violations for the sale of alcohol to

 

 

10400HB0952sam002- 25 -LRB104 04854 RPS 38716 a

1    a person under the age of 21, a second or subsequent
2    violation for the sale of alcohol to a person under the age
3    of 21 shall only be considered if it was committed within 5
4    years after the date when a prior violation for the sale of
5    alcohol to a person under the age of 21 was committed.
6        The fine imposed under this paragraph may not exceed
7    $500 for each violation. Each day that the activity, which
8    gave rise to the original fine, continues is a separate
9    violation. The maximum fine that may be levied against any
10    licensee, for the period of the license, shall not exceed
11    $20,000. The maximum penalty that may be imposed on a
12    licensee for selling a bottle of alcoholic liquor with a
13    foreign object in it or serving from a bottle of alcoholic
14    liquor with a foreign object in it shall be the
15    destruction of that bottle of alcoholic liquor for the
16    first 10 bottles so sold or served from by the licensee.
17    For the eleventh bottle of alcoholic liquor and for each
18    third bottle thereafter sold or served from by the
19    licensee with a foreign object in it, the maximum penalty
20    that may be imposed on the licensee is the destruction of
21    the bottle of alcoholic liquor and a fine of up to $50.
22        Any notice issued by the State Commission to a
23    licensee for a violation of this Act or any notice with
24    respect to settlement or offer in compromise shall include
25    the field report, photographs, and any other supporting
26    documentation necessary to reasonably inform the licensee

 

 

10400HB0952sam002- 26 -LRB104 04854 RPS 38716 a

1    of the nature and extent of the violation or the conduct
2    alleged to have occurred. The failure to include such
3    required documentation shall result in the dismissal of
4    the action.
5        (2) To adopt such rules and regulations consistent
6    with the provisions of this Act which shall be necessary
7    to carry on its functions and duties to the end that the
8    health, safety, and welfare of the People of the State of
9    Illinois shall be protected and temperance in the
10    consumption of alcoholic liquors shall be fostered and
11    promoted and to distribute copies of such rules and
12    regulations to all licensees affected thereby.
13        (3) To call upon other administrative departments of
14    the State, county and municipal governments, county and
15    city police departments, and prosecuting officers for such
16    information and assistance as it deems necessary in the
17    performance of its duties.
18        (4) To recommend to local commissioners rules and
19    regulations, not inconsistent with the law, for the
20    distribution and sale of alcoholic liquors throughout the
21    State.
22        (5) To inspect, or cause to be inspected, any premises
23    in this State where alcoholic liquors are manufactured,
24    distributed, warehoused, or sold. Nothing in this Act
25    authorizes an agent of the State Commission to inspect
26    private areas within the premises without reasonable

 

 

10400HB0952sam002- 27 -LRB104 04854 RPS 38716 a

1    suspicion or a warrant during an inspection. "Private
2    areas" includes, but is not limited to, safes, personal
3    property, and closed desks.
4        (5.1) Upon receipt of a complaint or upon having
5    knowledge that any person is engaged in business as a
6    manufacturer, importing distributor, distributor, or
7    retailer without a license or valid license, to conduct an
8    investigation. If, after conducting an investigation, the
9    State Commission is satisfied that the alleged conduct
10    occurred or is occurring, it may issue a cease and desist
11    notice as provided in this Act, impose civil penalties as
12    provided in this Act, notify the local liquor authority,
13    or file a complaint with the State's Attorney's Office of
14    the county where the incident occurred or the Attorney
15    General.
16        (5.2) Upon receipt of a complaint or upon having
17    knowledge that any person is shipping alcoholic liquor
18    into this State from a point outside of this State if the
19    shipment is in violation of this Act, to conduct an
20    investigation. If, after conducting an investigation, the
21    State Commission is satisfied that the alleged conduct
22    occurred or is occurring, it may issue a cease and desist
23    notice as provided in this Act, impose civil penalties as
24    provided in this Act, notify the foreign jurisdiction, or
25    file a complaint with the State's Attorney's Office of the
26    county where the incident occurred or the Attorney

 

 

10400HB0952sam002- 28 -LRB104 04854 RPS 38716 a

1    General.
2        (5.3) To receive complaints from licensees, local
3    officials, law enforcement agencies, organizations, and
4    persons stating that any licensee has been or is violating
5    any provision of this Act or the rules and regulations
6    issued pursuant to this Act. Such complaints shall be in
7    writing, signed and sworn to by the person making the
8    complaint, and shall state with specificity the facts in
9    relation to the alleged violation. If the State Commission
10    has reasonable grounds to believe that the complaint
11    substantially alleges a violation of this Act or rules and
12    regulations adopted pursuant to this Act, it shall conduct
13    an investigation. If, after conducting an investigation,
14    the State Commission is satisfied that the alleged
15    violation did occur, it shall proceed with disciplinary
16    action against the licensee as provided in this Act.
17        (5.4) To make arrests and issue notices of civil
18    violations where necessary for the enforcement of this
19    Act.
20        (5.5) To investigate any and all unlicensed activity.
21        (5.6) To impose civil penalties or fines to any person
22    who, without holding a valid license, engages in conduct
23    that requires a license pursuant to this Act, in an amount
24    not to exceed $20,000 for each offense as determined by
25    the State Commission. A civil penalty shall be assessed by
26    the State Commission after a hearing is held in accordance

 

 

10400HB0952sam002- 29 -LRB104 04854 RPS 38716 a

1    with the provisions set forth in this Act regarding the
2    provision of a hearing for the revocation or suspension of
3    a license.
4        (6) To hear and determine appeals from orders of a
5    local commission in accordance with the provisions of this
6    Act, as hereinafter set forth. Hearings under this
7    subsection shall be held in Springfield or Chicago, at
8    whichever location is the more convenient for the majority
9    of persons who are parties to the hearing.
10        (7) The State Commission shall establish uniform
11    systems of accounts to be kept by all retail licensees
12    having more than 4 employees, and, for this purpose, the
13    State Commission may classify all retail licensees having
14    more than 4 employees and establish a uniform system of
15    accounts for each class and prescribe the manner in which
16    such accounts shall be kept. The State Commission may also
17    prescribe the forms of accounts to be kept by all retail
18    licensees having more than 4 employees, including, but not
19    limited to, accounts of earnings and expenses and any
20    distribution, payment, or other distribution of earnings
21    or assets, and any other forms, records, and memoranda
22    which in the judgment of the State Commission may be
23    necessary or appropriate to carry out any of the
24    provisions of this Act, including, but not limited to,
25    such forms, records, and memoranda as will readily and
26    accurately disclose at all times the beneficial ownership

 

 

10400HB0952sam002- 30 -LRB104 04854 RPS 38716 a

1    of such retail licensed business. The accounts, forms,
2    records, and memoranda shall be available at all
3    reasonable times for inspection by authorized
4    representatives of the State Commission or by any local
5    liquor control commissioner or his or her authorized
6    representative. The State Commission may, from time to
7    time, alter, amend, or repeal, in whole or in part, any
8    uniform system of accounts, or the form and manner of
9    keeping accounts.
10        (8) In the conduct of any hearing authorized to be
11    held by the State Commission, to appoint, at the State
12    Commission's discretion, hearing officers to conduct
13    hearings involving complex issues or issues that will
14    require a protracted period of time to resolve, to
15    examine, or cause to be examined, under oath, any
16    licensee, and to examine or cause to be examined the books
17    and records of such licensee; to hear testimony and take
18    proof material for its information in the discharge of its
19    duties hereunder; to administer or cause to be
20    administered oaths; for any such purpose to issue subpoena
21    or subpoenas to require the attendance of witnesses and
22    the production of books, which shall be effective in any
23    part of this State, and to adopt rules to implement its
24    powers under this paragraph (8).
25        Any circuit court may, by order duly entered, require
26    the attendance of witnesses and the production of relevant

 

 

10400HB0952sam002- 31 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 32 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 33 -LRB104 04854 RPS 38716 a

1        State Commission and to the Department of Revenue; and
2        notices and complaints of violations to law
3        enforcement officials, including, without limitation,
4        the Illinois Attorney General and the U.S. Department
5        of Treasury's Alcohol and Tobacco Tax and Trade
6        Bureau.
7        (15) As a means to reduce the underage consumption of
8    alcoholic liquors, the State Commission shall conduct
9    alcohol compliance operations to investigate whether
10    businesses that are soliciting, selling, and shipping wine
11    from inside or outside of this State directly to residents
12    of this State are licensed by this State or are selling or
13    attempting to sell wine to persons under 21 years of age in
14    violation of this Act.
15        (16) The State Commission shall, in addition to
16    notifying any appropriate law enforcement agency, submit
17    notices of complaints or violations of Sections 6-29 and
18    6-29.1 by persons who do not hold a winery shipper's
19    license under this Act to the Illinois Attorney General
20    and to the U.S. Department of Treasury's Alcohol and
21    Tobacco Tax and Trade Bureau.
22        (17)(A) A person licensed to make wine under the laws
23    of another state who has a winery shipper's license under
24    this Act and annually produces less than 25,000 gallons of
25    wine or a person who has a first-class or second-class
26    wine manufacturer's license, a first-class or second-class

 

 

10400HB0952sam002- 34 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 35 -LRB104 04854 RPS 38716 a

1    per annum, 930,000 gallons of beer per annum, or 50,000
2    gallons of spirits per annum; (3) will not annually
3    produce for sale more than 25,000 gallons of wine, 930,000
4    gallons of beer, or 50,000 gallons of spirits; and (4)
5    will not annually sell more than 5,000 gallons of its wine
6    to retail licensees.
7        (D) A self-distribution exemption holder shall
8    annually certify to the State Commission its production of
9    wine in the previous 12 months and its anticipated
10    production and sales for the next 12 months. The State
11    Commission may fine, suspend, or revoke a
12    self-distribution exemption after a hearing if it finds
13    that the exemption holder has made a material
14    misrepresentation in its application, violated a revenue
15    or liquor law of Illinois, exceeded production of 25,000
16    gallons of wine, 930,000 gallons of beer, or 50,000
17    gallons of spirits in any calendar year, or become part of
18    an affiliated group producing more than 25,000 gallons of
19    wine, 930,000 gallons of beer, or 50,000 gallons of
20    spirits.
21        (E) Except in hearings for violations of this Act or
22    Public Act 95-634 or a bona fide investigation by duly
23    sworn law enforcement officials, the State Commission, or
24    its agents, the State Commission shall maintain the
25    production and sales information of a self-distribution
26    exemption holder as confidential and shall not release

 

 

10400HB0952sam002- 36 -LRB104 04854 RPS 38716 a

1    such information to any person.
2        (F) The State Commission shall issue regulations
3    governing self-distribution exemptions consistent with
4    this Section and this Act.
5        (G) Nothing in this paragraph (17) shall prohibit a
6    self-distribution exemption holder from entering into or
7    simultaneously having a distribution agreement with a
8    licensed Illinois distributor.
9        (H) It is the intent of this paragraph (17) to promote
10    and continue orderly markets. The General Assembly finds
11    that, in order to preserve Illinois' regulatory
12    distribution system, it is necessary to create an
13    exception for smaller makers of wine as their wines are
14    frequently adjusted in varietals, mixes, vintages, and
15    taste to find and create market niches sometimes too small
16    for distributor or importing distributor business
17    strategies. Limited self-distribution rights will afford
18    and allow smaller makers of wine access to the marketplace
19    in order to develop a customer base without impairing the
20    integrity of the 3-tier system.
21        (18)(A) A class 1 brewer licensee, who must also be
22    either a licensed brewer or licensed non-resident dealer
23    and annually manufacture less than 930,000 gallons of
24    beer, may make application to the State Commission for a
25    self-distribution exemption to allow the sale of not more
26    than 232,500 gallons per year of the exemption holder's

 

 

10400HB0952sam002- 37 -LRB104 04854 RPS 38716 a

1    beer to retail licensees and to brewers, class 1 brewers,
2    and class 2 brewers that, pursuant to subsection (e) of
3    Section 6-4 of this Act, sell beer, cider, mead, or any
4    combination thereof to non-licensees at their breweries.
5        (B) In the application, which shall be sworn under
6    penalty of perjury, the class 1 brewer licensee shall
7    state (1) the date it was established; (2) its volume of
8    beer manufactured and sold for each year since its
9    establishment; (3) its efforts to establish distributor
10    relationships; (4) that a self-distribution exemption is
11    necessary to facilitate the marketing of its beer; and (5)
12    that it will comply with the alcoholic beverage and
13    revenue laws of the United States, this State, and any
14    other state where it is licensed.
15        (C) Any application submitted shall be posted on the
16    State Commission's website at least 45 days prior to
17    action by the State Commission. The State Commission shall
18    approve the application for a self-distribution exemption
19    if the class 1 brewer licensee: (1) is in compliance with
20    the State, revenue, and alcoholic beverage laws; (2) is
21    not a member of any affiliated group that manufactures,
22    directly or indirectly, more than 930,000 gallons of beer
23    per annum, 25,000 gallons of wine per annum, or 50,000
24    gallons of spirits per annum; (3) shall not annually
25    manufacture for sale more than 930,000 gallons of beer,
26    25,000 gallons of wine, or 50,000 gallons of spirits; (4)

 

 

10400HB0952sam002- 38 -LRB104 04854 RPS 38716 a

1    shall not annually sell more than 232,500 gallons of its
2    beer to retail licensees and class 3 brewers and to
3    brewers, class 1 brewers, and class 2 brewers that,
4    pursuant to subsection (e) of Section 6-4 of this Act,
5    sell beer, cider, mead, or any combination thereof to
6    non-licensees at their breweries; and (5) has relinquished
7    any brew pub license held by the licensee, including any
8    ownership interest it held in the licensed brew pub.
9        (D) A self-distribution exemption holder shall
10    annually certify to the State Commission its manufacture
11    of beer during the previous 12 months and its anticipated
12    manufacture and sales of beer for the next 12 months. The
13    State Commission may fine, suspend, or revoke a
14    self-distribution exemption after a hearing if it finds
15    that the exemption holder has made a material
16    misrepresentation in its application, violated a revenue
17    or alcoholic beverage law of Illinois, exceeded the
18    manufacture of 930,000 gallons of beer, 25,000 gallons of
19    wine, or 50,000 gallons of spirits in any calendar year or
20    became part of an affiliated group manufacturing more than
21    930,000 gallons of beer, 25,000 gallons of wine, or 50,000
22    gallons of spirits.
23        (E) The State Commission shall issue rules and
24    regulations governing self-distribution exemptions
25    consistent with this Act.
26        (F) Nothing in this paragraph (18) shall prohibit a

 

 

10400HB0952sam002- 39 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 40 -LRB104 04854 RPS 38716 a

1    established; (2) its volume of spirits manufactured and
2    sold for each year since its establishment; (3) its
3    efforts to establish distributor relationships; (4) that a
4    self-distribution exemption is necessary to facilitate the
5    marketing of its spirits; and (5) that it will comply with
6    the alcoholic beverage and revenue laws of the United
7    States, this State, and any other state where it is
8    licensed.
9        (C) Any application submitted shall be posted on the
10    State Commission's website at least 45 days prior to
11    action by the State Commission. The State Commission shall
12    approve the application for a self-distribution exemption
13    if the applicant: (1) is in compliance with State revenue
14    and alcoholic beverage laws; (2) is not a member of any
15    affiliated group that produces more than 50,000 gallons of
16    spirits per annum, 930,000 gallons of beer per annum, or
17    25,000 gallons of wine per annum; (3) does not annually
18    manufacture for sale more than 50,000 gallons of spirits,
19    930,000 gallons of beer, or 25,000 gallons of wine; and
20    (4) does not annually sell more than 5,000 gallons of its
21    spirits to retail licensees.
22        (D) A self-distribution exemption holder shall
23    annually certify to the State Commission its manufacture
24    of spirits during the previous 12 months and its
25    anticipated manufacture and sales of spirits for the next
26    12 months. The State Commission may fine, suspend, or

 

 

10400HB0952sam002- 41 -LRB104 04854 RPS 38716 a

1    revoke a self-distribution exemption after a hearing if it
2    finds 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 50,000 gallons of spirits, 930,000 gallons
6    of beer, or 25,000 gallons of wine in any calendar year, or
7    has become part of an affiliated group manufacturing more
8    than 50,000 gallons of spirits, 930,000 gallons of beer,
9    or 25,000 gallons of wine.
10        (E) The State Commission shall adopt rules governing
11    self-distribution exemptions consistent with this Act.
12        (F) Nothing in this paragraph (19) 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        (G) It is the intent of this paragraph (19) to promote
17    and continue orderly markets. The General Assembly finds
18    that in order to preserve Illinois' regulatory
19    distribution system, it is necessary to create an
20    exception for smaller manufacturers in order to afford and
21    allow such smaller manufacturers of spirits access to the
22    marketplace in order to develop a customer base without
23    impairing the integrity of the 3-tier system.
24        (20)(A) A class 3 brewer licensee who must manufacture
25    less than 465,000 gallons of beer in the aggregate and not
26    more than 155,000 gallons at any single brewery premises

 

 

10400HB0952sam002- 42 -LRB104 04854 RPS 38716 a

1    may make application to the State Commission for a
2    self-distribution exemption to allow the sale of not more
3    than 6,200 gallons of beer from each in-state or
4    out-of-state class 3 brewery premises, which shall not
5    exceed 18,600 gallons annually in the aggregate, that is
6    manufactured at a wholly owned class 3 brewer's in-state
7    or out-of-state licensed premises to retail licensees and
8    class 3 brewers and to brewers, class 1 brewers, class 2
9    brewers that, pursuant to subsection (e) of Section 6-4,
10    sell beer, cider, or both beer and cider to non-licensees
11    at their licensed breweries.
12        (B) In the application, which shall be sworn under
13    penalty of perjury, the class 3 brewer licensee shall
14    state:
15            (1) the date it was established;
16            (2) its volume of beer manufactured and sold for
17        each year since its establishment;
18            (3) its efforts to establish distributor
19        relationships;
20            (4) that a self-distribution exemption is
21        necessary to facilitate the marketing of its beer; and
22            (5) that it will comply with the alcoholic
23        beverage and revenue laws of the United States, this
24        State, and any other state where it is licensed.
25        (C) Any application submitted shall be posted on the
26    State Commission's website at least 45 days before action

 

 

10400HB0952sam002- 43 -LRB104 04854 RPS 38716 a

1    by the State Commission. The State Commission shall
2    approve the application for a self-distribution exemption
3    if the class 3 brewer licensee: (1) is in compliance with
4    the State, revenue, and alcoholic beverage laws; (2) is
5    not a member of any affiliated group that manufacturers,
6    directly or indirectly, more than 465,000 gallons of beer
7    per annum; (3) shall not annually manufacture for sale
8    more than 465,000 gallons of beer or more than 155,000
9    gallons at any single brewery premises; and (4) shall not
10    annually sell more than 6,200 gallons of beer from each
11    in-state or out-of-state class 3 brewery premises, and
12    shall not exceed 18,600 gallons annually in the aggregate,
13    to retail licensees and class 3 brewers and to brewers,
14    class 1 brewers, and class 2 brewers that, pursuant to
15    subsection (e) of Section 6-4 of this Act, sell beer,
16    cider, or both beer and cider to non-licensees at their
17    breweries.
18        (D) A self-distribution exemption holder shall
19    annually certify to the State Commission its manufacture
20    of beer during the previous 12 months and its anticipated
21    manufacture and sales of beer for the next 12 months. The
22    State Commission may fine, suspend, or revoke a
23    self-distribution exemption after a hearing if it finds
24    that the exemption holder has made a material
25    misrepresentation in its application, violated a revenue
26    or alcoholic beverage law of Illinois, exceeded the

 

 

10400HB0952sam002- 44 -LRB104 04854 RPS 38716 a

1    manufacture of 465,000 gallons of beer in any calendar
2    year or became part of an affiliated group manufacturing
3    more than 465,000 gallons of beer, or exceeded the sale to
4    retail licensees, brewers, class 1 brewers, class 2
5    brewers, and class 3 brewers of 6,200 gallons per brewery
6    location or 18,600 gallons in the aggregate.
7        (E) The State Commission may adopt rules governing
8    self-distribution exemptions consistent with this Act.
9        (F) Nothing in this paragraph shall prohibit a
10    self-distribution exemption holder from entering into or
11    simultaneously having a distribution agreement with a
12    licensed Illinois importing distributor or a distributor.
13    If a self-distribution exemption holder enters into a
14    distribution agreement and has assigned distribution
15    rights to an importing distributor or distributor, then
16    the self-distribution exemption holder's distribution
17    rights in the assigned territories shall cease in a
18    reasonable time not to exceed 60 days.
19        (G) It is the intent of this paragraph to promote and
20    continue orderly markets. The General Assembly finds that
21    in order to preserve Illinois' regulatory distribution
22    system, it is necessary to create an exception for smaller
23    manufacturers in order to afford and allow such smaller
24    manufacturers of beer access to the marketplace in order
25    to develop a customer base without impairing the integrity
26    of the 3-tier system.

 

 

10400HB0952sam002- 45 -LRB104 04854 RPS 38716 a

1        (21)(A) A class 3 craft distiller licensee who
2    manufactures less than 100,000 gallons of spirits in the
3    aggregate may make application to the State Commission for
4    a self-distribution exemption to allow the sale of not
5    more than 5,000 gallons of the exemption holder's spirits
6    per year that are manufactured at a wholly owned class 3
7    craft distiller's in-state or out-of-state licensed
8    premises to retail licensees and class 3 brewers and to
9    class 3 craft distillers that, pursuant to subsection (e)
10    of Section 6-4, sell beer, cider, spirits, or any
11    combination thereof to non-licensees at their licensed
12    distilleries.
13        (B) In the application, which shall be sworn under
14    penalty of perjury, the class 3 craft distiller licensee
15    shall state:
16            (1) the date it was established;
17            (2) its volume of spirits manufactured and sold
18        for each year since its establishment;
19            (3) its efforts to establish distributor
20        relationships;
21            (4) that a self-distribution exemption is
22        necessary to facilitate the marketing of its spirits;
23        and
24            (5) that it will comply with the alcoholic
25        beverage and revenue laws of the United States, this
26        State, and any other state where it is licensed.

 

 

10400HB0952sam002- 46 -LRB104 04854 RPS 38716 a

1        (C) Any application submitted shall be posted on the
2    State Commission's website at least 45 days before action
3    by the State Commission. The State Commission shall
4    approve the application for a self-distribution exemption
5    if the class 3 craft distiller licensee:
6            (1) is in compliance with the State, revenue, and
7        alcoholic beverage laws;
8            (2) is not a member of any affiliated group that
9        manufacturers, directly or indirectly, more than
10        100,000 gallons of spirits per annum;
11            (3) shall not annually manufacture for sale more
12        than 100,000 gallons of spirits; and
13            (4) does not sell more than 5,000 gallons of its
14        spirits per year to retail licensees and class 3
15        brewers and to class 3 craft distillers that, pursuant
16        to subsection (e) of Section 6-4, sell beer, cider,
17        spirits, or any combination thereof to non-licensees
18        at their licensed distilleries.
19        (D) A self-distribution exemption holder shall
20    annually certify to the State Commission its manufacture
21    of spirits during the previous 12 months and its
22    anticipated manufacture and sales of spirits for the next
23    12 months. The State Commission may fine, suspend, or
24    revoke a 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 revenue

 

 

10400HB0952sam002- 47 -LRB104 04854 RPS 38716 a

1    or alcoholic beverage law of Illinois, exceeded the
2    manufacture of 100,000 gallons of spirits in any calendar
3    year, or became part of an affiliated group manufacturing
4    more than 100,000 gallons of spirits.
5        (E) The State Commission may adopt rules governing
6    self-distribution exemptions consistent with this Act.
7        (F) Nothing in this paragraph shall prohibit a
8    self-distribution exemption holder from entering into or
9    simultaneously having a distribution agreement with a
10    licensed Illinois importing distributor or a distributor.
11        (G) It is the intent of this paragraph to promote and
12    continue orderly markets. The General Assembly finds that,
13    in order to preserve Illinois' regulatory distribution
14    system, it is necessary to create an exception for smaller
15    manufacturers in order to afford and allow such smaller
16    manufacturers of spirits access to the marketplace in
17    order to develop a customer base without impairing the
18    integrity of the 3-tier system.
19    (b) On or before April 30, 1999, the Commission shall
20present a written report to the Governor and the General
21Assembly that shall be based on a study of the impact of Public
22Act 90-739 on the business of soliciting, selling, and
23shipping alcoholic liquor from outside of this State directly
24to residents of this State.
25    As part of its report, the Commission shall provide the
26following information:

 

 

10400HB0952sam002- 48 -LRB104 04854 RPS 38716 a

1        (i) the amount of State excise and sales tax revenues
2    generated as a result of Public Act 90-739;
3        (ii) the amount of licensing fees received as a result
4    of Public Act 90-739;
5        (iii) the number of reported violations, the number of
6    cease and desist notices issued by the Commission, the
7    number of notices of violations issued to the Department
8    of Revenue, and the number of notices and complaints of
9    violations to law enforcement officials.
10(Source: P.A. 104-451, eff. 7-1-26.)
 
11    (235 ILCS 5/5-1)
12    (Text of Section before amendment by P.A. 104-451, Section
135)
14    Sec. 5-1. Licenses issued by the Illinois Liquor Control
15Commission shall be of the following classes:
16    (a) Manufacturer's license - Class 1. Distiller, Class 2.
17Rectifier, Class 3. Brewer, Class 4. First Class Wine
18Manufacturer, Class 5. Second Class Wine Manufacturer, Class
196. First Class Winemaker, Class 7. Second Class Winemaker,
20Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
21Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
22Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
23Class 14. Class 3 Brewer,
24    (b) Distributor's license,
25    (c) Importing Distributor's license,

 

 

10400HB0952sam002- 49 -LRB104 04854 RPS 38716 a

1    (d) Retailer's license,
2    (e) Special Event Retailer's license (not-for-profit),
3    (f) Railroad license,
4    (g) Boat license,
5    (h) Non-Beverage User's license,
6    (i) Wine-maker's premises license,
7    (j) Airplane license,
8    (k) Foreign importer's license,
9    (l) Broker's license,
10    (m) Non-resident dealer's license,
11    (n) Brew Pub license,
12    (o) Auction liquor license,
13    (p) Caterer retailer license,
14    (q) Special use permit license,
15    (r) Winery shipper's license,
16    (s) Craft distiller tasting permit,
17    (t) Brewer warehouse permit,
18    (u) Distilling pub license,
19    (v) Craft distiller warehouse permit,
20    (w) Beer showcase permit.
21    No person, firm, partnership, corporation, or other legal
22business entity that is engaged in the manufacturing of wine
23may concurrently obtain and hold a wine-maker's license and a
24wine manufacturer's license.
25    (a) A manufacturer's license shall allow the manufacture,
26importation in bulk, storage, distribution and sale of

 

 

10400HB0952sam002- 50 -LRB104 04854 RPS 38716 a

1alcoholic liquor to persons without the State, as may be
2permitted by law, and to licensees in this State as follows:
3    Class 1. A Distiller may make sales and deliveries of
4alcoholic liquor to distillers, rectifiers, importing
5distributors, distributors, and non-beverage users and to no
6other licensees.
7    Class 2. A Rectifier, who is not a distiller, as defined
8herein, may make sales and deliveries of alcoholic liquor to
9rectifiers, importing distributors, distributors, retailers,
10and non-beverage users and to no other licensees.
11    Class 3. A Brewer may make sales and deliveries of beer to
12importing distributors and distributors and may make sales as
13authorized under subsection (e) of Section 6-4 of this Act,
14including any alcoholic liquor that subsection (e) of Section
156-4 authorizes a brewer to sell in its original package only to
16a non-licensee for pick-up by a non-licensee either within the
17interior of the brewery premises or outside of the brewery
18premises at a curb-side or parking lot adjacent to the brewery
19premises, subject to any local ordinance.
20    Class 4. A first class wine-manufacturer may make sales
21and deliveries of up to 50,000 gallons of wine to
22manufacturers, importing distributors and distributors, and to
23no other licensees. If a first-class wine-manufacturer
24manufactures beer, it shall also obtain and shall only be
25eligible for, in addition to any current license, a class 1
26brewer license, shall not manufacture more than 930,000

 

 

10400HB0952sam002- 51 -LRB104 04854 RPS 38716 a

1gallons of beer per year, and shall not be a member of or
2affiliated with, directly or indirectly, a manufacturer that
3produces more than 930,000 gallons of beer per year. If the
4first-class wine-manufacturer manufactures spirits, it shall
5also obtain and shall only be eligible for, in addition to any
6current license, a class 1 craft distiller license, shall not
7manufacture more than 50,000 gallons of spirits per year, and
8shall not be a member of or affiliated with, directly or
9indirectly, a manufacturer that produces more than 50,000
10gallons of spirits per year. A first-class wine-manufacturer
11shall be permitted to sell wine manufactured at the
12first-class wine-manufacturer premises to non-licensees.
13    Class 5. A second class wine manufacturer may make sales
14and deliveries of more than 50,000 gallons of wine to
15manufacturers, importing distributors and distributors and to
16no other licensees.
17    Class 6. A first-class wine-maker's license shall allow
18the manufacture of up to 50,000 gallons of wine per year and
19the storage and sale of such wine to distributors in the State
20and to persons without the State, as may be permitted by law. A
21person who, prior to June 1, 2008 (the effective date of Public
22Act 95-634), is a holder of a first-class wine-maker's license
23and annually produces more than 25,000 gallons of its own wine
24and who distributes its wine to licensed retailers shall cease
25this practice on or before July 1, 2008 in compliance with
26Public Act 95-634. If a first-class wine-maker manufactures

 

 

10400HB0952sam002- 52 -LRB104 04854 RPS 38716 a

1beer, it shall also obtain and shall only be eligible for, in
2addition to any current license, a class 1 brewer license,
3shall not manufacture more than 930,000 gallons of beer per
4year, and shall not be a member of or affiliated with, directly
5or indirectly, a manufacturer that produces more than 930,000
6gallons of beer per year. If the first-class wine-maker
7manufactures spirits, it shall also obtain and shall only be
8eligible for, in addition to any current license, a class 1
9craft distiller license, shall not manufacture more than
1050,000 gallons of spirits per year, and shall not be a member
11of or affiliated with, directly or indirectly, a manufacturer
12that produces more than 50,000 gallons of spirits per year. A
13first-class wine-maker holding a class 1 brewer license or a
14class 1 craft distiller license shall not be eligible for a
15wine-maker's premises license but shall be permitted to sell
16wine manufactured at the first-class wine-maker premises to
17non-licensees.
18    Class 7. A second-class wine-maker's license shall allow
19the manufacture of up to 150,000 gallons of wine per year, and
20the storage and sale of such wine to distributors in this State
21and to persons without the State, as may be permitted by law. A
22person who, prior to June 1, 2008 (the effective date of Public
23Act 95-634), is a holder of a second-class wine-maker's
24license and annually produces more than 25,000 gallons of its
25own wine and who distributes its wine to licensed retailers
26shall cease this practice on or before July 1, 2008 in

 

 

10400HB0952sam002- 53 -LRB104 04854 RPS 38716 a

1compliance with Public Act 95-634. If a second-class
2wine-maker manufactures beer, it shall also obtain and shall
3only be eligible for, in addition to any current license, a
4class 2 brewer license, shall not manufacture more than
53,720,000 gallons of beer per year, and shall not be a member
6of or affiliated with, directly or indirectly, a manufacturer
7that produces more than 3,720,000 gallons of beer per year. If
8a second-class wine-maker manufactures spirits, it shall also
9obtain and shall only be eligible for, in addition to any
10current license, a class 2 craft distiller license, shall not
11manufacture more than 100,000 gallons of spirits per year, and
12shall not be a member of or affiliated with, directly or
13indirectly, a manufacturer that produces more than 100,000
14gallons of spirits per year.
15    Class 8. A limited wine-manufacturer may make sales and
16deliveries not to exceed 40,000 gallons of wine per year to
17distributors, and to non-licensees in accordance with the
18provisions of this Act.
19    Class 9. A craft distiller license, which may only be held
20by a class 1 craft distiller licensee or class 2 craft
21distiller licensee but not held by both a class 1 craft
22distiller licensee and a class 2 craft distiller licensee,
23shall grant all rights conveyed by either: (i) a class 1 craft
24distiller license if the craft distiller holds a class 1 craft
25distiller license; or (ii) a class 2 craft distiller licensee
26if the craft distiller holds a class 2 craft distiller

 

 

10400HB0952sam002- 54 -LRB104 04854 RPS 38716 a

1license.
2    Class 10. A class 1 craft distiller license, which may
3only be issued to a licensed craft distiller or licensed
4non-resident dealer, shall allow the manufacture of up to
550,000 gallons of spirits per year provided that the class 1
6craft distiller licensee does not manufacture more than a
7combined 50,000 gallons of spirits per year and is not a member
8of or affiliated with, directly or indirectly, a manufacturer
9that produces more than 50,000 gallons of spirits per year. If
10a class 1 craft distiller manufactures beer, it shall also
11obtain and shall only be eligible for, in addition to any
12current license, a class 1 brewer license, shall not
13manufacture more than 930,000 gallons of beer per year, and
14shall not be a member of or affiliated with, directly or
15indirectly, a manufacturer that produces more than 930,000
16gallons of beer per year. If a class 1 craft distiller
17manufactures wine, it shall also obtain and shall only be
18eligible for, in addition to any current license, a
19first-class wine-manufacturer license or a first-class
20wine-maker's license, shall not manufacture more than 50,000
21gallons of wine per year, and shall not be a member of or
22affiliated with, directly or indirectly, a manufacturer that
23produces more than 50,000 gallons of wine per year. A class 1
24craft distiller licensee may make sales and deliveries to
25importing distributors and distributors and to retail
26licensees in accordance with the conditions set forth in

 

 

10400HB0952sam002- 55 -LRB104 04854 RPS 38716 a

1paragraph (19) of subsection (a) of Section 3-12 of this Act.
2However, the aggregate amount of spirits sold to non-licensees
3and sold or delivered to retail licensees may not exceed 5,000
4gallons per year.
5    A class 1 craft distiller licensee may sell up to 5,000
6gallons of such spirits to non-licensees to the extent
7permitted by any exemption approved by the State Commission
8pursuant to Section 6-4 of this Act. A class 1 craft distiller
9license holder may store such spirits at a non-contiguous
10licensed location, but at no time shall a class 1 craft
11distiller license holder directly or indirectly produce in the
12aggregate more than 50,000 gallons of spirits per year.
13    A class 1 craft distiller licensee may hold more than one
14class 1 craft distiller's license. However, a class 1 craft
15distiller that holds more than one class 1 craft distiller
16license shall not manufacture, in the aggregate, more than
1750,000 gallons of spirits by distillation per year and shall
18not sell, in the aggregate, more than 5,000 gallons of such
19spirits to non-licensees in accordance with an exemption
20approved by the State Commission pursuant to Section 6-4 of
21this Act.
22    Class 11. A class 2 craft distiller license, which may
23only be issued to a licensed craft distiller or licensed
24non-resident dealer, shall allow the manufacture of up to
25100,000 gallons of spirits per year provided that the class 2
26craft distiller licensee does not manufacture more than a

 

 

10400HB0952sam002- 56 -LRB104 04854 RPS 38716 a

1combined 100,000 gallons of spirits per year and is not a
2member of or affiliated with, directly or indirectly, a
3manufacturer that produces more than 100,000 gallons of
4spirits per year. If a class 2 craft distiller manufactures
5beer, it shall also obtain and shall only be eligible for, in
6addition to any current license, a class 2 brewer license,
7shall not manufacture more than 3,720,000 gallons of beer per
8year, and shall not be a member of or affiliated with, directly
9or indirectly, a manufacturer that produces more than
103,720,000 gallons of beer per year. If a class 2 craft
11distiller manufactures wine, it shall also obtain and shall
12only be eligible for, in addition to any current license, a
13second-class wine-maker's license, shall not manufacture more
14than 150,000 gallons of wine per year, and shall not be a
15member of or affiliated with, directly or indirectly, a
16manufacturer that produces more than 150,000 gallons of wine
17per year. A class 2 craft distiller licensee may make sales and
18deliveries to importing distributors and distributors, but
19shall not make sales or deliveries to any other licensee. If
20the State Commission provides prior approval, a class 2 craft
21distiller licensee may annually transfer up to 100,000 gallons
22of spirits manufactured by that class 2 craft distiller
23licensee to the premises of a licensed class 2 craft distiller
24wholly owned and operated by the same licensee. A class 2 craft
25distiller may transfer spirits to a distilling pub wholly
26owned and operated by the class 2 craft distiller subject to

 

 

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1the following limitations and restrictions: (i) the transfer
2shall not annually exceed more than 5,000 gallons; (ii) the
3annual amount transferred shall reduce the distilling pub's
4annual permitted production limit; (iii) all spirits
5transferred shall be subject to Article VIII of this Act; (iv)
6a written record shall be maintained by the distiller and
7distilling pub specifying the amount, date of delivery, and
8receipt of the product by the distilling pub; and (v) the
9distilling pub shall be located no farther than 80 miles from
10the class 2 craft distiller's licensed location.
11    A class 2 craft distiller shall, prior to transferring
12spirits to a distilling pub wholly owned by the class 2 craft
13distiller, furnish a written notice to the State Commission of
14intent to transfer spirits setting forth the name and address
15of the distilling pub and shall annually submit to the State
16Commission a verified report identifying the total gallons of
17spirits transferred to the distilling pub wholly owned by the
18class 2 craft distiller.
19    A class 2 craft distiller license holder may store such
20spirits at a non-contiguous licensed location, but at no time
21shall a class 2 craft distiller license holder directly or
22indirectly produce in the aggregate more than 100,000 gallons
23of spirits per year.
24    Class 12. A class 1 brewer license, which may only be
25issued to a licensed brewer or licensed non-resident dealer,
26shall allow the manufacture of up to 930,000 gallons of beer

 

 

10400HB0952sam002- 58 -LRB104 04854 RPS 38716 a

1per year provided that the class 1 brewer licensee does not
2manufacture more than a combined 930,000 gallons of beer per
3year and is not a member of or affiliated with, directly or
4indirectly, a manufacturer that produces more than 930,000
5gallons of beer per year. If a class 1 brewer manufactures
6spirits, it shall also obtain and shall only be eligible for,
7in addition to any current license, a class 1 craft distiller
8license, shall not manufacture more than 50,000 gallons of
9spirits per year, and shall not be a member of or affiliated
10with, directly or indirectly, a manufacturer that produces
11more than 50,000 gallons of spirits per year. If a class 1
12craft brewer manufactures wine, it shall also obtain and shall
13only be eligible for, in addition to any current license, a
14first-class wine-manufacturer license or a first-class
15wine-maker's license, shall not manufacture more than 50,000
16gallons of wine per year, and shall not be a member of or
17affiliated with, directly or indirectly, a manufacturer that
18produces more than 50,000 gallons of wine per year. A class 1
19brewer licensee may make sales and deliveries to importing
20distributors and distributors and to retail licensees in
21accordance with the conditions set forth in paragraph (18) of
22subsection (a) of Section 3-12 of this Act. If the State
23Commission provides prior approval, a class 1 brewer may
24annually transfer up to 930,000 gallons of beer manufactured
25by that class 1 brewer to the premises of a licensed class 1
26brewer wholly owned and operated by the same licensee.

 

 

10400HB0952sam002- 59 -LRB104 04854 RPS 38716 a

1    Class 13. A class 2 brewer license, which may only be
2issued to a licensed brewer or licensed non-resident dealer,
3shall allow the manufacture of up to 3,720,000 gallons of beer
4per year provided that the class 2 brewer licensee does not
5manufacture more than a combined 3,720,000 gallons of beer per
6year and is not a member of or affiliated with, directly or
7indirectly, a manufacturer that produces more than 3,720,000
8gallons of beer per year. If a class 2 brewer manufactures
9spirits, it shall also obtain and shall only be eligible for,
10in addition to any current license, a class 2 craft distiller
11license, shall not manufacture more than 100,000 gallons of
12spirits per year, and shall not be a member of or affiliated
13with, directly or indirectly, a manufacturer that produces
14more than 100,000 gallons of spirits per year. If a class 2
15craft distiller manufactures wine, it shall also obtain and
16shall only be eligible for, in addition to any current
17license, a second-class wine-maker's license, shall not
18manufacture more than 150,000 gallons of wine per year, and
19shall not be a member of or affiliated with, directly or
20indirectly, a manufacturer that produces more than 150,000
21gallons of wine a year. A class 2 brewer licensee may make
22sales and deliveries to importing distributors and
23distributors, but shall not make sales or deliveries to any
24other licensee. If the State Commission provides prior
25approval, a class 2 brewer licensee may annually transfer up
26to 3,720,000 gallons of beer manufactured by that class 2

 

 

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1brewer licensee to the premises of a licensed class 2 brewer
2wholly owned and operated by the same licensee.
3    A class 2 brewer may transfer beer to a brew pub wholly
4owned and operated by the class 2 brewer subject to the
5following limitations and restrictions: (i) the transfer shall
6not annually exceed more than 31,000 gallons; (ii) the annual
7amount transferred shall reduce the brew pub's annual
8permitted production limit; (iii) all beer transferred shall
9be subject to Article VIII of this Act; (iv) a written record
10shall be maintained by the brewer and brew pub specifying the
11amount, date of delivery, and receipt of the product by the
12brew pub; and (v) the brew pub shall be located no farther than
1380 miles from the class 2 brewer's licensed location.
14    A class 2 brewer shall, prior to transferring beer to a
15brew pub wholly owned by the class 2 brewer, furnish a written
16notice to the State Commission of intent to transfer beer
17setting forth the name and address of the brew pub and shall
18annually submit to the State Commission a verified report
19identifying the total gallons of beer transferred to the brew
20pub wholly owned by the class 2 brewer.
21    Class 14. A class 3 brewer license, which may be issued to
22a brewer or a non-resident dealer, shall allow the manufacture
23of no more than 465,000 gallons of beer per year and no more
24than 155,000 gallons at a single brewery premises, and shall
25allow the sale of no more than 6,200 gallons of beer from each
26in-state or out-of-state class 3 brewery premises, or 18,600

 

 

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1gallons in the aggregate, to retail licensees, class 1
2brewers, class 2 brewers, and class 3 brewers as long as the
3class 3 brewer licensee does not manufacture more than a
4combined 465,000 gallons of beer per year and is not a member
5of or affiliated with, directly or indirectly, a manufacturer
6that produces more than 465,000 gallons of beer per year to
7make sales to importing distributors, distributors, retail
8licensees, brewers, class 1 brewers, class 2 brewers, and
9class 3 brewers in accordance with the conditions set forth in
10paragraph (20) of subsection (a) of Section 3-12. If the State
11Commission provides prior approval, a class 3 brewer may
12annually transfer up to 155,000 gallons of beer manufactured
13by that class 3 brewer to the premises of a licensed class 3
14brewer wholly owned and operated by the same licensee. A class
153 brewer shall manufacture beer at the brewer's class 3
16designated licensed premises, and may sell beer as otherwise
17provided in this Act.
18    (a-1) A manufacturer that is licensed in this State to
19make sales or deliveries of alcoholic liquor to licensed
20distributors or importing distributors and which enlists
21agents, representatives, or individuals acting on its behalf
22who contact licensed retailers on a regular and continual
23basis in this State must register those agents,
24representatives, or persons acting on its behalf with the
25State Commission.
26    Registration of agents, representatives, or persons acting

 

 

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

 

 

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

 

 

10400HB0952sam002- 64 -LRB104 04854 RPS 38716 a

1in the license, alcoholic liquor for use or consumption, but
2not for resale in any form except as otherwise provided in this
3Act. Except as provided in Section 6-16, 6-29, or 6-29.1,
4nothing in this Act shall deny, limit, remove, or restrict the
5ability of a holder of a retailer's license to transfer or ship
6alcoholic liquor to the purchaser for use or consumption
7subject to any applicable local law or ordinance. For the
8purposes of this Section, "shipping" means the movement of
9alcoholic liquor from a licensed retailer to a consumer via a
10common carrier. Except as provided in Section 6-16, 6-29, or
116-29.1, nothing in this Act shall deny, limit, remove, or
12restrict the ability of a holder of a retailer's license to
13deliver alcoholic liquor to the purchaser for use or
14consumption. The delivery shall be made only within 12 hours
15from the time the alcoholic liquor leaves the licensed
16premises of the retailer for delivery. For the purposes of
17this Section, "delivery" means the movement of alcoholic
18liquor purchased from a licensed retailer to a consumer
19through the following methods:
20        (1) delivery within licensed retailer's parking lot,
21    including curbside, for pickup by the consumer;
22        (2) delivery by an owner, officer, director,
23    shareholder, or employee of the licensed retailer; or
24        (3) delivery by a third-party contractor, independent
25    contractor, or agent with whom the licensed retailer has
26    contracted to make deliveries of alcoholic liquors.

 

 

10400HB0952sam002- 65 -LRB104 04854 RPS 38716 a

1    Under paragraph (1), (2), or (3), delivery shall not
2include the use of common carriers.
3    A retail licensee may use any website, mobile application,
4or similar platform that facilitates the sale or delivery of
5food, beverages, or goods and is owned or operated by the
6retail licensee, third-party contractor, an independent
7contractor, or an agent with whom the licensed retailer has
8contracted to facilitate deliveries or sales of alcoholic
9liquors under this Section. The use of any website, mobile
10application, or similar platform to facilitate deliveries or
11sales of alcoholic liquors shall not be considered an illegal
12sale, resale, transfer, barter, or exchange of alcohol under
13this Act.
14    Any retail license issued to a manufacturer shall only
15permit the manufacturer to sell beer at retail on the premises
16actually occupied by the manufacturer. For the purpose of
17further describing the type of business conducted at a retail
18licensed premises, a retailer's licensee may be designated by
19the State Commission as (i) an on premise consumption
20retailer, (ii) an off premise sale retailer, or (iii) a
21combined on premise consumption and off premise sale retailer.
22    Except for a municipality with a population of more than
231,000,000 inhabitants, a home rule unit may not regulate the
24delivery of alcoholic liquor or require a retail licensee to
25obtain a separate or additional license for the delivery of
26alcoholic liquor. This paragraph is a limitation under

 

 

10400HB0952sam002- 66 -LRB104 04854 RPS 38716 a

1subsection (i) of Section 6 of Article VII of the Illinois
2Constitution on the concurrent exercise by home rule units of
3powers and functions exercised by the State. A non-home rule
4municipality may not regulate the delivery of alcoholic liquor
5or require a retail licensee to obtain a separate or
6additional license for the delivery of alcoholic liquor.
7    Notwithstanding any other provision of this subsection
8(d), a retail licensee may sell alcoholic liquors to a special
9event retailer licensee for resale to the extent permitted
10under subsection (e).
11    The requirements in subsection (b-5) of Section 6-29 apply
12only to a winery shipper licensee that ships wine via common
13carrier and do not apply to a winery shipper licensee or a
14retail licensee that delivers, or causes to be delivered,
15alcohol pursuant to the methods outlined in item (1), (2), or
16(3) of this subsection.
17    Except as provided in this Section, for a manufacturer
18with a retail license, nothing in this Section shall be
19construed to prohibit an on-premises consumption retailer,
20off-premises sale retailer, or combined on-premises
21consumption and off-premises sale retailer from delivering
22alcohol pursuant to this Section.
23    A retail licensee shall contract only with a third-party
24contractor, independent contractor, or agent to facilitate or
25make deliveries of alcoholic liquors that has a policy to
26verify the age of the person to whom the alcoholic liquor is

 

 

10400HB0952sam002- 67 -LRB104 04854 RPS 38716 a

1being delivered based on the person's valid proof of identity
2indicating the person is age 21 or over. A retail licensee
3shall not be civilly liable for sales or deliveries made to
4intoxicated persons or persons under the age of 21 if the
5delivery of alcoholic liquor was conducted by a third-party
6contractor, independent contractor, or agent with whom the
7licensed retailer has contracted to make deliveries of
8alcoholic liquor.
9    (e) A special event retailer's license (not-for-profit)
10shall permit the licensee to purchase alcoholic liquors from
11an Illinois licensed distributor (unless the licensee
12purchases less than $500 of alcoholic liquors for the special
13event, in which case the licensee may purchase the alcoholic
14liquors from a licensed retailer) and shall allow the licensee
15to sell and offer for sale, at retail, alcoholic liquors for
16use or consumption, but not for resale in any form and only at
17the location and on the specific dates designated for the
18special event in the license. An applicant for a special event
19retailer license must (i) furnish with the application: (A) a
20resale number issued under Section 2c of the Retailers'
21Occupation Tax Act or evidence that the applicant is
22registered under Section 2a of the Retailers' Occupation Tax
23Act, (B) a current, valid exemption identification number
24issued under Section 1g of the Retailers' Occupation Tax Act
25and a certification to the State Commission that the purchase
26of alcoholic liquors will be a tax-exempt purchase, or (C) a

 

 

10400HB0952sam002- 68 -LRB104 04854 RPS 38716 a

1statement that the applicant is not registered under Section
22a of the Retailers' Occupation Tax Act, does not hold a resale
3number under Section 2c of the Retailers' Occupation Tax Act,
4and does not hold an exemption number under Section 1g of the
5Retailers' Occupation Tax Act, in which event the State
6Commission shall set forth on the special event retailer's
7license a statement to that effect; (ii) submit with the
8application proof satisfactory to the State Commission that
9the applicant will provide dram shop liability insurance in
10the maximum limits; and (iii) show proof satisfactory to the
11State Commission that the applicant has obtained local
12authority approval.
13    Nothing in this Act prohibits an Illinois licensed
14distributor from offering credit or a refund for unused,
15salable alcoholic liquors to a holder of a special event
16retailer's license or the special event retailer's licensee
17from accepting the credit or refund of alcoholic liquors at
18the conclusion of the event specified in the license.
19    (f) A railroad license shall permit the licensee to import
20alcoholic liquors into this State from any point in the United
21States outside this State and to store such alcoholic liquors
22in this State; to make wholesale purchases of alcoholic
23liquors directly from manufacturers, foreign importers,
24distributors and importing distributors from within or outside
25this State; and to store such alcoholic liquors in this State;
26provided that the above powers may be exercised only in

 

 

10400HB0952sam002- 69 -LRB104 04854 RPS 38716 a

1connection with the importation, purchase or storage of
2alcoholic liquors to be sold or dispensed on a club, buffet,
3lounge, or dining car operated on an electric, gas, or steam
4railway in this State; and provided further, that railroad
5licensees exercising the above powers shall be subject to all
6provisions of Article VIII of this Act as applied to importing
7distributors. A railroad license shall also permit the
8licensee to sell or dispense alcoholic liquors on any club,
9buffet, lounge, or dining car operated on an electric, gas, or
10steam railway regularly operated by a common carrier in this
11State, but shall not permit the sale for resale of any
12alcoholic liquors to any licensee within this State. A license
13shall be obtained for each car in which such sales are made.
14    (g) A boat license shall allow the sale of alcoholic
15liquor in individual drinks on any passenger boat regularly
16operated as a common carrier on navigable waters in this State
17or on any riverboat operated under the Illinois Gambling Act,
18which boat or riverboat maintains a public dining room or
19restaurant thereon.
20    (h) A non-beverage user's license shall allow the licensee
21to purchase alcoholic liquor from a licensed manufacturer or
22importing distributor, without the imposition of any tax upon
23the business of such licensed manufacturer or importing
24distributor as to such alcoholic liquor to be used by such
25licensee solely for the non-beverage purposes set forth in
26subsection (a) of Section 8-1 of this Act, and such licenses

 

 

10400HB0952sam002- 70 -LRB104 04854 RPS 38716 a

1shall be divided and classified and shall permit the purchase,
2possession, and use of limited and stated quantities of
3alcoholic liquor as follows:
4Class 1, not to exceed ......................... 500 gallons
5Class 2, not to exceed ....................... 1,000 gallons
6Class 3, not to exceed ....................... 5,000 gallons
7Class 4, not to exceed ...................... 10,000 gallons
8Class 5, not to exceed ....................... 50,000 gallons
9    (i) A wine-maker's premises license shall allow a licensee
10that concurrently holds a first-class wine-maker's license to
11sell and offer for sale at retail in the premises specified in
12such license not more than 50,000 gallons of the first-class
13wine-maker's wine that is made at the first-class wine-maker's
14licensed premises per year for use or consumption, but not for
15resale in any form. A wine-maker's premises license shall
16allow a licensee who concurrently holds a second-class
17wine-maker's license to sell and offer for sale at retail in
18the premises specified in such license up to 100,000 gallons
19of the second-class wine-maker's wine that is made at the
20second-class wine-maker's licensed premises per year for use
21or consumption but not for resale in any form. A first-class
22wine-maker that concurrently holds a class 1 brewer license or
23a class 1 craft distiller license shall not be eligible to hold
24a wine-maker's premises license. A wine-maker's premises
25license shall allow a licensee that concurrently holds a
26first-class wine-maker's license or a second-class

 

 

10400HB0952sam002- 71 -LRB104 04854 RPS 38716 a

1wine-maker's license to sell and offer for sale at retail at
2the premises specified in the wine-maker's premises license,
3for use or consumption but not for resale in any form, any
4beer, wine, and spirits purchased from a licensed distributor.
5Upon approval from the State Commission, a wine-maker's
6premises license shall allow the licensee to sell and offer
7for sale at (i) the wine-maker's licensed premises and (ii) up
8to 2 additional locations for use and consumption and not for
9resale. Each location shall require additional licensing per
10location as specified in Section 5-3 of this Act. A
11wine-maker's premises licensee shall secure liquor liability
12insurance coverage in an amount at least equal to the maximum
13liability amounts set forth in subsection (a) of Section 6-21
14of this Act.
15    (j) An airplane license shall permit the licensee to
16import alcoholic liquors into this State from any point in the
17United States outside this State and to store such alcoholic
18liquors in this State; to make wholesale purchases of
19alcoholic liquors directly from manufacturers, foreign
20importers, distributors, and importing distributors from
21within or outside this State; and to store such alcoholic
22liquors in this State; provided that the above powers may be
23exercised only in connection with the importation, purchase,
24or storage of alcoholic liquors to be sold or dispensed on an
25airplane; and provided further, that airplane licensees
26exercising the above powers shall be subject to all provisions

 

 

10400HB0952sam002- 72 -LRB104 04854 RPS 38716 a

1of Article VIII of this Act as applied to importing
2distributors. An airplane licensee shall also permit the sale
3or dispensing of alcoholic liquors on any passenger airplane
4regularly operated by a common carrier in this State, but
5shall not permit the sale for resale of any alcoholic liquors
6to any licensee within this State. A single airplane license
7shall be required of an airline company if liquor service is
8provided on board aircraft in this State. The annual fee for
9such license shall be as determined in Section 5-3.
10    (k) A foreign importer's license shall permit such
11licensee to purchase alcoholic liquor from Illinois licensed
12non-resident dealers only, and to import alcoholic liquor
13other than in bulk from any point outside the United States and
14to sell such alcoholic liquor to Illinois licensed importing
15distributors and to no one else in Illinois; provided that (i)
16the foreign importer registers with the State Commission every
17brand of alcoholic liquor that it proposes to sell to Illinois
18licensees during the license period, (ii) the foreign importer
19complies with all of the provisions of Section 6-9 of this Act
20with respect to registration of such Illinois licensees as may
21be granted the right to sell such brands at wholesale, and
22(iii) the foreign importer complies with the provisions of
23Sections 6-5 and 6-6 of this Act to the same extent that these
24provisions apply to manufacturers.
25    (l) (i) A broker's license shall be required of all
26persons who solicit orders for, offer to sell, or offer to

 

 

10400HB0952sam002- 73 -LRB104 04854 RPS 38716 a

1supply alcoholic liquor to retailers in the State of Illinois,
2or who offer to retailers to ship or cause to be shipped or to
3make contact with distillers, craft distillers, rectifiers,
4brewers or manufacturers or any other party within or without
5the State of Illinois in order that alcoholic liquors be
6shipped to a distributor, importing distributor, or foreign
7importer, whether such solicitation or offer is consummated
8within or without the State of Illinois.
9    No holder of a retailer's license issued by the Illinois
10Liquor Control Commission shall purchase or receive any
11alcoholic liquor, the order for which was solicited or offered
12for sale to such retailer by a broker unless the broker is the
13holder of a valid broker's license.
14    The broker shall, upon the acceptance by a retailer of the
15broker's solicitation of an order or offer to sell or supply or
16deliver or have delivered alcoholic liquors, promptly forward
17to the Illinois Liquor Control Commission a notification of
18said transaction in such form as the State Commission may by
19regulations prescribe.
20    (ii) A broker's license shall be required of a person
21within this State, other than a retail licensee, who, for a fee
22or commission, promotes, solicits, or accepts orders for
23alcoholic liquor, for use or consumption and not for resale,
24to be shipped from this State and delivered to residents
25outside of this State by an express company, common carrier,
26or contract carrier. This Section does not apply to any person

 

 

10400HB0952sam002- 74 -LRB104 04854 RPS 38716 a

1who promotes, solicits, or accepts orders for wine as
2specifically authorized in Section 6-29 of this Act.
3    A broker's license under this subsection (l) shall not
4entitle the holder to buy or sell any alcoholic liquors for his
5own account or to take or deliver title to such alcoholic
6liquors.
7    This subsection (l) shall not apply to distributors,
8employees of distributors, or employees of a manufacturer who
9has registered the trademark, brand, or name of the alcoholic
10liquor pursuant to Section 6-9 of this Act, and who regularly
11sells such alcoholic liquor in the State of Illinois only to
12its registrants thereunder.
13    Any agent, representative, or person subject to
14registration pursuant to subsection (a-1) of this Section
15shall not be eligible to receive a broker's license.
16    (m) A non-resident dealer's license shall permit such
17licensee to ship into and warehouse alcoholic liquor into this
18State from any point outside of this State, and to sell such
19alcoholic liquor to Illinois licensed foreign importers and
20importing distributors and to no one else in this State;
21provided that (i) said non-resident dealer shall register with
22the Illinois Liquor Control Commission each and every brand of
23alcoholic liquor which it proposes to sell to Illinois
24licensees during the license period, (ii) it shall comply with
25all of the provisions of Section 6-9 hereof with respect to
26registration of such Illinois licensees as may be granted the

 

 

10400HB0952sam002- 75 -LRB104 04854 RPS 38716 a

1right to sell such brands at wholesale by duly filing such
2registration statement, thereby authorizing the non-resident
3dealer to proceed to sell such brands at wholesale, and (iii)
4the non-resident dealer shall comply with the provisions of
5Sections 6-5 and 6-6 of this Act to the same extent that these
6provisions apply to manufacturers. No person licensed as a
7non-resident dealer shall be granted a distributor's or
8importing distributor's license.
9    (n) A brew pub license shall allow the licensee to only (i)
10manufacture up to 155,000 gallons of beer per year only on the
11premises specified in the license, (ii) make sales of the beer
12manufactured on the premises or, with the approval of the
13State Commission, beer manufactured on another brew pub
14licensed premises that is wholly owned and operated by the
15same licensee to importing distributors, distributors, and
16non-licensees for use and consumption, (iii) store the beer
17upon the premises, (iv) sell and offer for sale at retail from
18the licensed premises for off-premises consumption no more
19than 155,000 gallons per year so long as such sales are only
20made in-person, (v) sell and offer for sale at retail for use
21and consumption on the premises specified in the license any
22form of alcoholic liquor purchased from a licensed distributor
23or importing distributor, (vi) with the prior approval of the
24State Commission, annually transfer no more than 155,000
25gallons of beer manufactured on the premises to a licensed
26brew pub wholly owned and operated by the same licensee, and

 

 

10400HB0952sam002- 76 -LRB104 04854 RPS 38716 a

1(vii) notwithstanding item (i) of this subsection, brew pubs
2wholly owned and operated by the same licensee may combine
3each location's production limit of 155,000 gallons of beer
4per year and allocate the aggregate total between the wholly
5owned, operated, and licensed locations.
6    A brew pub licensee shall not under any circumstance sell
7or offer for sale beer manufactured by the brew pub licensee to
8retail licensees.
9    A person who holds a class 2 brewer license may
10simultaneously hold a brew pub license if the class 2 brewer
11(i) does not, under any circumstance, sell or offer for sale
12beer manufactured by the class 2 brewer to retail licensees;
13(ii) does not hold more than 3 brew pub licenses in this State;
14(iii) does not manufacture more than a combined 3,720,000
15gallons of beer per year, including the beer manufactured at
16the brew pub; and (iv) is not a member of or affiliated with,
17directly or indirectly, a manufacturer that produces more than
183,720,000 gallons of beer per year or any other alcoholic
19liquor.
20    Notwithstanding any other provision of this Act, a
21licensed brewer, class 2 brewer, or non-resident dealer who
22before July 1, 2015 manufactured less than 3,720,000 gallons
23of beer per year and held a brew pub license on or before July
241, 2015 may (i) continue to qualify for and hold that brew pub
25license for the licensed premises and (ii) manufacture more
26than 3,720,000 gallons of beer per year and continue to

 

 

10400HB0952sam002- 77 -LRB104 04854 RPS 38716 a

1qualify for and hold that brew pub license if that brewer,
2class 2 brewer, or non-resident dealer does not simultaneously
3hold a class 1 brewer license and is not a member of or
4affiliated with, directly or indirectly, a manufacturer that
5produces more than 3,720,000 gallons of beer per year or that
6produces any other alcoholic liquor.
7    A brew pub licensee may apply for a class 3 brewer license
8and, upon meeting all applicable qualifications of this Act
9and relinquishing all commonly owned brew pub or retail
10licenses, shall be issued a class 3 brewer license. Nothing in
11this Act shall prohibit the issuance of a class 3 brewer
12license if the applicant:
13        (1) has a valid retail license on or before May 1,
14    2021;
15        (2) has an ownership interest in at least 2 brew pubs
16    licenses on or before May 1, 2021;
17        (3) the brew pub licensee applies for a class 3 brewer
18    license on or before October 1, 2022 and relinquishes all
19    commonly owned brew pub licenses; and
20        (4) relinquishes all commonly owned retail licenses on
21    or before December 31, 2022.
22    If a brew pub licensee is issued a class 3 brewer license,
23the class 3 brewer license shall expire on the same date as the
24existing brew pub license and the State Commission shall not
25require a class 3 brewer licensee to obtain a brewer license
26or, in the alternative, to pay a fee for a brewer license,

 

 

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1until the date the brew pub license of the applicant would have
2expired.
3    (o) A caterer retailer license shall allow the holder to
4serve alcoholic liquors as an incidental part of a food
5service that serves prepared meals which excludes the serving
6of snacks as the primary meal, either on or off-site whether
7licensed or unlicensed. A caterer retailer license shall allow
8the holder, a distributor, or an importing distributor to
9transfer any inventory to and from the holder's retail
10premises and shall allow the holder to purchase alcoholic
11liquor from a distributor or importing distributor to be
12delivered directly to an off-site event.
13    Nothing in this Act prohibits a distributor or importing
14distributor from offering credit or a refund for unused,
15salable beer to a holder of a caterer retailer license or a
16caterer retailer licensee from accepting a credit or refund
17for unused, salable beer, in the event an act of God is the
18sole reason an off-site event is canceled and if: (i) the
19holder of a caterer retailer license has not transferred
20alcoholic liquor from its caterer retailer premises to an
21off-site location; (ii) the distributor or importing
22distributor offers the credit or refund for the unused,
23salable beer that it delivered to the off-site premises and
24not for any unused, salable beer that the distributor or
25importing distributor delivered to the caterer retailer's
26premises; and (iii) the unused, salable beer would likely

 

 

10400HB0952sam002- 79 -LRB104 04854 RPS 38716 a

1spoil if transferred to the caterer retailer's premises. A
2caterer retailer license shall allow the holder to transfer
3any inventory from any off-site location to its caterer
4retailer premises at the conclusion of an off-site event or
5engage a distributor or importing distributor to transfer any
6inventory from any off-site location to its caterer retailer
7premises at the conclusion of an off-site event, provided that
8the distributor or importing distributor issues bona fide
9charges to the caterer retailer licensee for fuel, labor, and
10delivery and the distributor or importing distributor collects
11payment from the caterer retailer licensee prior to the
12distributor or importing distributor transferring inventory to
13the caterer retailer premises.
14    For purposes of this subsection (o), an "act of God" means
15an unforeseeable event, such as a rain or snow storm, hail, a
16flood, or a similar event, that is the sole cause of the
17cancellation of an off-site, outdoor event.
18    (p) An auction liquor license shall allow the licensee to
19sell and offer for sale at auction wine and spirits for use or
20consumption, or for resale by an Illinois liquor licensee in
21accordance with provisions of this Act. An auction liquor
22license will be issued to a person and it will permit the
23auction liquor licensee to hold the auction anywhere in the
24State. An auction liquor license must be obtained for each
25auction at least 14 days in advance of the auction date.
26    (q) A special use permit license shall allow an Illinois

 

 

10400HB0952sam002- 80 -LRB104 04854 RPS 38716 a

1licensed retailer to transfer a portion of its alcoholic
2liquor inventory from its retail licensed premises to the
3premises specified in the license hereby created; to purchase
4alcoholic liquor from a distributor or importing distributor
5to be delivered directly to the location specified in the
6license hereby created; and to sell or offer for sale at
7retail, only in the premises specified in the license hereby
8created, the transferred or delivered alcoholic liquor for use
9or consumption, but not for resale in any form. A special use
10permit license may be granted for the following time periods:
11one day or less; 2 or more days to a maximum of 15 days per
12location in any 12-month period. An applicant for the special
13use permit license must also submit with the application proof
14satisfactory to the State Commission that the applicant will
15provide dram shop liability insurance to the maximum limits
16and have local authority approval.
17    A special use permit license shall allow the holder to
18transfer any inventory from the holder's special use premises
19to its retail premises at the conclusion of the special use
20event or engage a distributor or importing distributor to
21transfer any inventory from the holder's special use premises
22to its retail premises at the conclusion of an off-site event,
23provided that the distributor or importing distributor issues
24bona fide charges to the special use permit licensee for fuel,
25labor, and delivery and the distributor or importing
26distributor collects payment from the retail licensee prior to

 

 

10400HB0952sam002- 81 -LRB104 04854 RPS 38716 a

1the distributor or importing distributor transferring
2inventory to the retail premises.
3    Nothing in this Act prohibits a distributor or importing
4distributor from offering credit or a refund for unused,
5salable beer to a special use permit licensee or a special use
6permit licensee from accepting a credit or refund for unused,
7salable beer at the conclusion of the event specified in the
8license if: (i) the holder of the special use permit license
9has not transferred alcoholic liquor from its retail licensed
10premises to the premises specified in the special use permit
11license; (ii) the distributor or importing distributor offers
12the credit or refund for the unused, salable beer that it
13delivered to the premises specified in the special use permit
14license and not for any unused, salable beer that the
15distributor or importing distributor delivered to the
16retailer's premises; and (iii) the unused, salable beer would
17likely spoil if transferred to the retailer premises.
18    (r) A winery shipper's license shall allow a person with a
19first-class or second-class wine manufacturer's license, a
20first-class or second-class wine-maker's license, or a limited
21wine manufacturer's license or who is licensed to make wine
22under the laws of another state to ship wine made by that
23licensee directly to a resident of this State who is 21 years
24of age or older for that resident's personal use and not for
25resale. Prior to receiving a winery shipper's license, an
26applicant for the license must provide the State Commission

 

 

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1with a true copy of its current license in any state in which
2it is licensed as a manufacturer of wine. An applicant for a
3winery shipper's license must also complete an application
4form that provides any other information the State Commission
5deems necessary. The application form shall include all
6addresses from which the applicant for a winery shipper's
7license intends to ship wine, including the name and address
8of any third party, except for a common carrier, authorized to
9ship wine on behalf of the manufacturer. The application form
10shall include an acknowledgment consenting to the jurisdiction
11of the State Commission, the Illinois Department of Revenue,
12and the courts of this State concerning the enforcement of
13this Act and any related laws, rules, and regulations,
14including authorizing the Department of Revenue and the State
15Commission to conduct audits for the purpose of ensuring
16compliance with Public Act 95-634, and an acknowledgment that
17the wine manufacturer is in compliance with Section 6-2 of
18this Act. Any third party, except for a common carrier,
19authorized to ship wine on behalf of a first-class or
20second-class wine manufacturer's licensee, a first-class or
21second-class wine-maker's licensee, a limited wine
22manufacturer's licensee, or a person who is licensed to make
23wine under the laws of another state shall also be disclosed by
24the winery shipper's licensee, and a copy of the written
25appointment of the third-party wine provider, except for a
26common carrier, to the wine manufacturer shall be filed with

 

 

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1the State Commission as a supplement to the winery shipper's
2license application or any renewal thereof. The winery
3shipper's license holder shall affirm under penalty of
4perjury, as part of the winery shipper's license application
5or renewal, that he or she only ships wine, either directly or
6indirectly through a third-party provider, from the licensee's
7own production.
8    Except for a common carrier, a third-party provider
9shipping wine on behalf of a winery shipper's license holder
10is the agent of the winery shipper's license holder and, as
11such, a winery shipper's license holder is responsible for the
12acts and omissions of the third-party provider acting on
13behalf of the license holder. A third-party provider, except
14for a common carrier, that engages in shipping wine into
15Illinois on behalf of a winery shipper's license holder shall
16consent to the jurisdiction of the State Commission and the
17State. Any third-party, except for a common carrier, holding
18such an appointment shall, by February 1 of each calendar year
19and upon request by the State Commission or the Department of
20Revenue, file with the State Commission a statement detailing
21each shipment made to an Illinois resident. The statement
22shall include the name and address of the third-party provider
23filing the statement, the time period covered by the
24statement, and the following information:
25        (1) the name, address, and license number of the
26    winery shipper on whose behalf the shipment was made;

 

 

10400HB0952sam002- 84 -LRB104 04854 RPS 38716 a

1        (2) the quantity of the products delivered; and
2        (3) the date and address of the shipment.
3If the Department of Revenue or the State Commission requests
4a statement under this paragraph, the third-party provider
5must provide that statement no later than 30 days after the
6request is made. Any books, records, supporting papers, and
7documents containing information and data relating to a
8statement under this paragraph shall be kept and preserved for
9a period of 3 years, unless their destruction sooner is
10authorized, in writing, by the Director of Revenue, and shall
11be open and available to inspection by the Director of Revenue
12or the State Commission or any duly authorized officer, agent,
13or employee of the State Commission or the Department of
14Revenue, at all times during business hours of the day. Any
15person who violates any provision of this paragraph or any
16rule of the State Commission for the administration and
17enforcement of the provisions of this paragraph is guilty of a
18Class C misdemeanor. In case of a continuing violation, each
19day's continuance thereof shall be a separate and distinct
20offense.
21    The State Commission shall adopt rules as soon as
22practicable to implement the requirements of Public Act 99-904
23and shall adopt rules prohibiting any such third-party
24appointment of a third-party provider, except for a common
25carrier, that has been deemed by the State Commission to have
26violated the provisions of this Act with regard to any winery

 

 

10400HB0952sam002- 85 -LRB104 04854 RPS 38716 a

1shipper licensee.
2    A winery shipper licensee must pay to the Department of
3Revenue the State liquor gallonage tax under Section 8-1 for
4all wine that is sold by the licensee and shipped to a person
5in this State. For the purposes of Section 8-1, a winery
6shipper licensee shall be taxed in the same manner as a
7manufacturer of wine. A licensee who is not otherwise required
8to register under the Retailers' Occupation Tax Act must
9register under the Use Tax Act to collect and remit use tax to
10the Department of Revenue for all gallons of wine that are sold
11by the licensee and shipped to persons in this State. If a
12licensee fails to remit the tax imposed under this Act in
13accordance with the provisions of Article VIII of this Act,
14the winery shipper's license shall be revoked in accordance
15with the provisions of Article VII of this Act. If a licensee
16fails to properly register and remit tax under the Use Tax Act
17or the Retailers' Occupation Tax Act for all wine that is sold
18by the winery shipper and shipped to persons in this State, the
19winery shipper's license shall be revoked in accordance with
20the provisions of Article VII of this Act.
21    A winery shipper licensee must collect, maintain, and
22submit to the State Commission on a semi-annual basis the
23total number of cases per resident of wine shipped to
24residents of this State. A winery shipper licensed under this
25subsection (r) must comply with the requirements of Section
266-29 of this Act.

 

 

10400HB0952sam002- 86 -LRB104 04854 RPS 38716 a

1    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
2Section 3-12, the State Commission may receive, respond to,
3and investigate any complaint and impose any of the remedies
4specified in paragraph (1) of subsection (a) of Section 3-12.
5    As used in this subsection, "third-party provider" means
6any entity that provides fulfillment house services, including
7warehousing, packaging, distribution, order processing, or
8shipment of wine, but not the sale of wine, on behalf of a
9licensed winery shipper.
10    (s) A craft distiller tasting permit license shall allow
11an Illinois licensed class 1 craft distiller or class 2 craft
12distiller to transfer a portion of its alcoholic liquor
13inventory from its class 1 craft distiller or class 2 craft
14distiller licensed premises to the premises specified in the
15license hereby created and to conduct a sampling, only in the
16premises specified in the license hereby created, of the
17transferred alcoholic liquor in accordance with subsection (c)
18of Section 6-31 of this Act. The transferred alcoholic liquor
19may not be sold or resold in any form. An applicant for the
20craft distiller tasting permit license must also submit with
21the application proof satisfactory to the State Commission
22that the applicant will provide dram shop liability insurance
23to the maximum limits and have local authority approval.
24    (t) A brewer warehouse permit may be issued to the holder
25of a class 1 brewer license or a class 2 brewer license. If the
26holder of the permit is a class 1 brewer licensee, the brewer

 

 

10400HB0952sam002- 87 -LRB104 04854 RPS 38716 a

1warehouse permit shall allow the holder to store or warehouse
2up to 930,000 gallons of tax-determined beer manufactured by
3the holder of the permit at the premises specified on the
4permit. If the holder of the permit is a class 2 brewer
5licensee, the brewer warehouse permit shall allow the holder
6to store or warehouse up to 3,720,000 gallons of
7tax-determined beer manufactured by the holder of the permit
8at the premises specified on the permit. Sales to
9non-licensees are prohibited at the premises specified in the
10brewer warehouse permit.
11    (u) A distilling pub license shall allow the licensee to
12only (i) manufacture up to 5,000 gallons of spirits per year
13only on the premises specified in the license, (ii) make sales
14of the spirits manufactured on the premises or, with the
15approval of the State Commission, spirits manufactured on
16another distilling pub licensed premises that is wholly owned
17and operated by the same licensee to importing distributors
18and distributors and to non-licensees for use and consumption,
19(iii) store the spirits upon the premises, (iv) sell and offer
20for sale at retail from the licensed premises for off-premises
21consumption no more than 5,000 gallons per year so long as such
22sales are only made in-person, (v) sell and offer for sale at
23retail for use and consumption on the premises specified in
24the license any form of alcoholic liquor purchased from a
25licensed distributor or importing distributor, and (vi) with
26the prior approval of the State Commission, annually transfer

 

 

10400HB0952sam002- 88 -LRB104 04854 RPS 38716 a

1no more than 5,000 gallons of spirits manufactured on the
2premises to a licensed distilling pub wholly owned and
3operated by the same licensee.
4    A distilling pub licensee shall not under any circumstance
5sell or offer for sale spirits manufactured by the distilling
6pub licensee to retail licensees.
7    A person who holds a class 2 craft distiller license may
8simultaneously hold a distilling pub license if the class 2
9craft distiller (i) does not, under any circumstance, sell or
10offer for sale spirits manufactured by the class 2 craft
11distiller to retail licensees; (ii) does not hold more than 3
12distilling pub licenses in this State; (iii) does not
13manufacture more than a combined 100,000 gallons of spirits
14per year, including the spirits manufactured at the distilling
15pub; and (iv) is not a member of or affiliated with, directly
16or indirectly, a manufacturer that produces more than 100,000
17gallons of spirits per year or any other alcoholic liquor.
18    (v) A craft distiller warehouse permit may be issued to
19the holder of a class 1 craft distiller or class 2 craft
20distiller license. The craft distiller warehouse permit shall
21allow the holder to store or warehouse up to 500,000 gallons of
22spirits manufactured by the holder of the permit at the
23premises specified on the permit. Sales to non-licensees are
24prohibited at the premises specified in the craft distiller
25warehouse permit.
26    (w) A beer showcase permit license shall allow an

 

 

10400HB0952sam002- 89 -LRB104 04854 RPS 38716 a

1Illinois-licensed distributor to transfer a portion of its
2beer inventory from its licensed premises to the premises
3specified in the beer showcase permit license, and, in the
4case of a class 3 brewer, transfer only beer the class 3 brewer
5manufactures from its licensed premises to the premises
6specified in the beer showcase permit license; and to sell or
7offer for sale at retail, only in the premises specified in the
8beer showcase permit license, the transferred or delivered
9beer for on or off premise consumption, but not for resale in
10any form and to sell to non-licensees not more than 96 fluid
11ounces of beer per person. A beer showcase permit license may
12be granted for the following time periods: one day or less; or
132 or more days to a maximum of 15 days per location in any
1412-month period. An applicant for a beer showcase permit
15license must also submit with the application proof
16satisfactory to the State Commission that the applicant will
17provide dram shop liability insurance to the maximum limits
18and have local authority approval. The State Commission shall
19require the beer showcase applicant to comply with Section
206-27.1.
21(Source: P.A. 104-451, Section 10, eff. 12-12-25.)
 
22    (Text of Section after amendment by P.A. 104-451, Section
235)
24    Sec. 5-1. Licenses issued by the Illinois Liquor Control
25Commission shall be of the following classes:

 

 

10400HB0952sam002- 90 -LRB104 04854 RPS 38716 a

1    (a) Manufacturer's license - Class 1. Distiller, Class 2.
2Rectifier, Class 3. Brewer, Class 4. First Class Wine
3Manufacturer, Class 5. Second Class Wine Manufacturer, Class
46. First Class Winemaker, Class 7. Second Class Winemaker,
5Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
6Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
7Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
8Class 14. Class 3 Brewer, Class 15. Class 3 Craft Distiller,
9    (b) Distributor's license,
10    (c) Importing Distributor's license,
11    (d) Retailer's license,
12    (e) Special Event Retailer's license (not-for-profit),
13    (f) Railroad license,
14    (g) Boat license,
15    (h) Non-Beverage User's license,
16    (i) Wine-maker's premises license,
17    (j) Airplane license,
18    (k) Foreign importer's license,
19    (l) Broker's license,
20    (m) Non-resident dealer's license,
21    (n) Brew Pub license,
22    (o) Auction liquor license,
23    (p) Caterer retailer license,
24    (q) Special use permit license,
25    (r) Winery shipper's license,
26    (s) Craft distiller tasting permit,

 

 

10400HB0952sam002- 91 -LRB104 04854 RPS 38716 a

1    (t) Brewer warehouse permit,
2    (u) Distilling pub license,
3    (v) Craft distiller warehouse permit,
4    (w) Beer showcase permit,
5    (x) Spirits showcase permit.
6    No person, firm, partnership, corporation, or other legal
7business entity that is engaged in the manufacturing of wine
8may concurrently obtain and hold a wine-maker's license and a
9wine manufacturer's license.
10    (a) A manufacturer's license shall allow the manufacture,
11importation in bulk, storage, distribution and sale of
12alcoholic liquor to persons without the State, as may be
13permitted by law, and to licensees in this State as follows:
14    Class 1. A Distiller may make sales and deliveries of
15alcoholic liquor to distillers, rectifiers, importing
16distributors, distributors, and non-beverage users and to no
17other licensees.
18    Class 2. A Rectifier, who is not a distiller, as defined
19herein, may make sales and deliveries of alcoholic liquor to
20rectifiers, importing distributors, distributors, retailers,
21and non-beverage users and to no other licensees.
22    Class 3. A Brewer may make sales and deliveries of beer to
23importing distributors and distributors and may make sales as
24authorized under subsection (e) of Section 6-4 of this Act,
25including any alcoholic liquor that subsection (e) of Section
266-4 authorizes a brewer to sell in its original package only to

 

 

10400HB0952sam002- 92 -LRB104 04854 RPS 38716 a

1a non-licensee for pick-up by a non-licensee either within the
2interior of the brewery premises or outside of the brewery
3premises at a curb-side or parking lot adjacent to the brewery
4premises, subject to any local ordinance.
5    Class 4. A first class wine-manufacturer may make sales
6and deliveries of up to 50,000 gallons of wine to
7manufacturers, importing distributors and distributors, and to
8no other licensees. If a first-class wine-manufacturer
9manufactures beer, it shall also obtain and shall only be
10eligible for, in addition to any current license, a class 1
11brewer license, shall not manufacture more than 930,000
12gallons of beer per year, and shall not be a member of or
13affiliated with, directly or indirectly, a manufacturer that
14produces more than 930,000 gallons of beer per year. If the
15first-class wine-manufacturer manufactures spirits, it shall
16also obtain and shall only be eligible for, in addition to any
17current license, a class 1 craft distiller license, shall not
18manufacture more than 50,000 gallons of spirits per year, and
19shall not be a member of or affiliated with, directly or
20indirectly, a manufacturer that produces more than 50,000
21gallons of spirits per year. A first-class wine-manufacturer
22shall be permitted to sell wine manufactured at the
23first-class wine-manufacturer premises to non-licensees.
24    Class 5. A second class wine manufacturer may make sales
25and deliveries of more than 50,000 gallons of wine to
26manufacturers, importing distributors and distributors and to

 

 

10400HB0952sam002- 93 -LRB104 04854 RPS 38716 a

1no other licensees.
2    Class 6. A first-class wine-maker's license shall allow
3the manufacture of up to 50,000 gallons of wine per year and
4the storage and sale of such wine to distributors in the State
5and to persons without the State, as may be permitted by law. A
6person who, prior to June 1, 2008 (the effective date of Public
7Act 95-634), is a holder of a first-class wine-maker's license
8and annually produces more than 25,000 gallons of its own wine
9and who distributes its wine to licensed retailers shall cease
10this practice on or before July 1, 2008 in compliance with
11Public Act 95-634. If a first-class wine-maker manufactures
12beer, it shall also obtain and shall only be eligible for, in
13addition to any current license, a class 1 brewer license,
14shall not manufacture more than 930,000 gallons of beer per
15year, and shall not be a member of or affiliated with, directly
16or indirectly, a manufacturer that produces more than 930,000
17gallons of beer per year. If the first-class wine-maker
18manufactures spirits, it shall also obtain and shall only be
19eligible for, in addition to any current license, a class 1
20craft distiller license, shall not manufacture more than
2150,000 gallons of spirits per year, and shall not be a member
22of or affiliated with, directly or indirectly, a manufacturer
23that produces more than 50,000 gallons of spirits per year. A
24first-class wine-maker holding a class 1 brewer license or a
25class 1 craft distiller license shall not be eligible for a
26wine-maker's premises license but shall be permitted to sell

 

 

10400HB0952sam002- 94 -LRB104 04854 RPS 38716 a

1wine manufactured at the first-class wine-maker premises to
2non-licensees.
3    Class 7. A second-class wine-maker's license shall allow
4the manufacture of up to 150,000 gallons of wine per year, and
5the storage and sale of such wine to distributors in this State
6and to persons without the State, as may be permitted by law. A
7person who, prior to June 1, 2008 (the effective date of Public
8Act 95-634), is a holder of a second-class wine-maker's
9license and annually produces more than 25,000 gallons of its
10own wine and who distributes its wine to licensed retailers
11shall cease this practice on or before July 1, 2008 in
12compliance with Public Act 95-634. If a second-class
13wine-maker manufactures beer, it shall also obtain and shall
14only be eligible for, in addition to any current license, a
15class 2 brewer license, shall not manufacture more than
163,720,000 gallons of beer per year, and shall not be a member
17of or affiliated with, directly or indirectly, a manufacturer
18that produces more than 3,720,000 gallons of beer per year. If
19a second-class wine-maker manufactures spirits, it shall also
20obtain and shall only be eligible for, in addition to any
21current license, a class 2 craft distiller license, shall not
22manufacture more than 100,000 gallons of spirits per year, and
23shall not be a member of or affiliated with, directly or
24indirectly, a manufacturer that produces more than 100,000
25gallons of spirits per year.
26    Class 8. A limited wine-manufacturer may make sales and

 

 

10400HB0952sam002- 95 -LRB104 04854 RPS 38716 a

1deliveries not to exceed 40,000 gallons of wine per year to
2distributors, and to non-licensees in accordance with the
3provisions of this Act.
4    Class 9. A craft distiller license, which may only be held
5by a class 1 craft distiller licensee or class 2 craft
6distiller licensee but not held by both a class 1 craft
7distiller licensee and a class 2 craft distiller licensee,
8shall grant all rights conveyed by either: (i) a class 1 craft
9distiller license if the craft distiller holds a class 1 craft
10distiller license; or (ii) a class 2 craft distiller licensee
11if the craft distiller holds a class 2 craft distiller
12license.
13    Class 10. A class 1 craft distiller license, which may
14only be issued to a licensed craft distiller or licensed
15non-resident dealer, shall allow the manufacture of up to
1650,000 gallons of spirits per year provided that the class 1
17craft distiller licensee does not manufacture more than a
18combined 50,000 gallons of spirits per year and is not a member
19of or affiliated with, directly or indirectly, a manufacturer
20that produces more than 50,000 gallons of spirits per year. If
21a class 1 craft distiller manufactures beer, it shall also
22obtain and shall only be eligible for, in addition to any
23current license, a class 1 brewer license, shall not
24manufacture more than 930,000 gallons of beer per year, and
25shall not be a member of or affiliated with, directly or
26indirectly, a manufacturer that produces more than 930,000

 

 

10400HB0952sam002- 96 -LRB104 04854 RPS 38716 a

1gallons of beer per year. If a class 1 craft distiller
2manufactures wine, it shall also obtain and shall only be
3eligible for, in addition to any current license, a
4first-class wine-manufacturer license or a first-class
5wine-maker's license, shall not manufacture more than 50,000
6gallons of wine per year, and shall not be a member of or
7affiliated with, directly or indirectly, a manufacturer that
8produces more than 50,000 gallons of wine per year. A class 1
9craft distiller licensee may make sales and deliveries to
10importing distributors and distributors and to retail
11licensees in accordance with the conditions set forth in
12paragraph (19) of subsection (a) of Section 3-12 of this Act.
13However, the aggregate amount of spirits sold to non-licensees
14and sold or delivered to retail licensees may not exceed 5,000
15gallons per year.
16    A class 1 craft distiller licensee may sell up to 5,000
17gallons of such spirits to non-licensees to the extent
18permitted by any exemption approved by the State Commission
19pursuant to Section 6-4 of this Act. A class 1 craft distiller
20license holder may store such spirits at a non-contiguous
21licensed location, but at no time shall a class 1 craft
22distiller license holder directly or indirectly produce in the
23aggregate more than 50,000 gallons of spirits per year.
24    A class 1 craft distiller licensee may hold more than one
25class 1 craft distiller's license. However, a class 1 craft
26distiller that holds more than one class 1 craft distiller

 

 

10400HB0952sam002- 97 -LRB104 04854 RPS 38716 a

1license shall not manufacture, in the aggregate, more than
250,000 gallons of spirits by distillation per year and shall
3not sell, in the aggregate, more than 5,000 gallons of such
4spirits to non-licensees in accordance with an exemption
5approved by the State Commission pursuant to Section 6-4 of
6this Act.
7    Class 11. A class 2 craft distiller license, which may
8only be issued to a licensed craft distiller or licensed
9non-resident dealer, shall allow the manufacture of up to
10100,000 gallons of spirits per year provided that the class 2
11craft distiller licensee does not manufacture more than a
12combined 100,000 gallons of spirits per year and is not a
13member of or affiliated with, directly or indirectly, a
14manufacturer that produces more than 100,000 gallons of
15spirits per year. If a class 2 craft distiller manufactures
16beer, it shall also obtain and shall only be eligible for, in
17addition to any current license, a class 2 brewer license,
18shall not manufacture more than 3,720,000 gallons of beer per
19year, and shall not be a member of or affiliated with, directly
20or indirectly, a manufacturer that produces more than
213,720,000 gallons of beer per year. If a class 2 craft
22distiller manufactures wine, it shall also obtain and shall
23only be eligible for, in addition to any current license, a
24second-class wine-maker's license, shall not manufacture more
25than 150,000 gallons of wine per year, and shall not be a
26member of or affiliated with, directly or indirectly, a

 

 

10400HB0952sam002- 98 -LRB104 04854 RPS 38716 a

1manufacturer that produces more than 150,000 gallons of wine
2per year. A class 2 craft distiller licensee may make sales and
3deliveries to importing distributors and distributors, but
4shall not make sales or deliveries to any other licensee. If
5the State Commission provides prior approval, a class 2 craft
6distiller licensee may annually transfer up to 100,000 gallons
7of spirits manufactured by that class 2 craft distiller
8licensee to the premises of a licensed class 2 craft distiller
9wholly owned and operated by the same licensee. A class 2 craft
10distiller may transfer spirits to a distilling pub wholly
11owned and operated by the class 2 craft distiller subject to
12the following limitations and restrictions: (i) the transfer
13shall not annually exceed more than 5,000 gallons; (ii) the
14annual amount transferred shall reduce the distilling pub's
15annual permitted production limit; (iii) all spirits
16transferred shall be subject to Article VIII of this Act; (iv)
17a written record shall be maintained by the distiller and
18distilling pub specifying the amount, date of delivery, and
19receipt of the product by the distilling pub; and (v) the
20distilling pub shall be located no farther than 80 miles from
21the class 2 craft distiller's licensed location.
22    A class 2 craft distiller shall, prior to transferring
23spirits to a distilling pub wholly owned by the class 2 craft
24distiller, furnish a written notice to the State Commission of
25intent to transfer spirits setting forth the name and address
26of the distilling pub and shall annually submit to the State

 

 

10400HB0952sam002- 99 -LRB104 04854 RPS 38716 a

1Commission a verified report identifying the total gallons of
2spirits transferred to the distilling pub wholly owned by the
3class 2 craft distiller.
4    A class 2 craft distiller license holder may store such
5spirits at a non-contiguous licensed location, but at no time
6shall a class 2 craft distiller license holder directly or
7indirectly produce in the aggregate more than 100,000 gallons
8of spirits per year.
9    Class 12. A class 1 brewer license, which may only be
10issued to a licensed brewer or licensed non-resident dealer,
11shall allow the manufacture of up to 930,000 gallons of beer
12per year provided that the class 1 brewer licensee does not
13manufacture more than a combined 930,000 gallons of beer per
14year and is not a member of or affiliated with, directly or
15indirectly, a manufacturer that produces more than 930,000
16gallons of beer per year. If a class 1 brewer manufactures
17spirits, it shall also obtain and shall only be eligible for,
18in addition to any current license, a class 1 craft distiller
19license, shall not manufacture more than 50,000 gallons of
20spirits per year, and shall not be a member of or affiliated
21with, directly or indirectly, a manufacturer that produces
22more than 50,000 gallons of spirits per year. If a class 1
23craft brewer manufactures wine, it shall also obtain and shall
24only be eligible for, in addition to any current license, a
25first-class wine-manufacturer license or a first-class
26wine-maker's license, shall not manufacture more than 50,000

 

 

10400HB0952sam002- 100 -LRB104 04854 RPS 38716 a

1gallons of wine per year, and shall not be a member of or
2affiliated with, directly or indirectly, a manufacturer that
3produces more than 50,000 gallons of wine per year. A class 1
4brewer licensee may make sales and deliveries to importing
5distributors and distributors and to retail licensees in
6accordance with the conditions set forth in paragraph (18) of
7subsection (a) of Section 3-12 of this Act. If the State
8Commission provides prior approval, a class 1 brewer may
9annually transfer up to 930,000 gallons of beer manufactured
10by that class 1 brewer to the premises of a licensed class 1
11brewer wholly owned and operated by the same licensee.
12    Class 13. A class 2 brewer license, which may only be
13issued to a licensed brewer or licensed non-resident dealer,
14shall allow the manufacture of up to 3,720,000 gallons of beer
15per year provided that the class 2 brewer licensee does not
16manufacture more than a combined 3,720,000 gallons of beer per
17year and is not a member of or affiliated with, directly or
18indirectly, a manufacturer that produces more than 3,720,000
19gallons of beer per year. If a class 2 brewer manufactures
20spirits, it shall also obtain and shall only be eligible for,
21in addition to any current license, a class 2 craft distiller
22license, shall not manufacture more than 100,000 gallons of
23spirits per year, and shall not be a member of or affiliated
24with, directly or indirectly, a manufacturer that produces
25more than 100,000 gallons of spirits per year. If a class 2
26craft distiller manufactures wine, it shall also obtain and

 

 

10400HB0952sam002- 101 -LRB104 04854 RPS 38716 a

1shall only be eligible for, in addition to any current
2license, a second-class wine-maker's license, shall not
3manufacture more than 150,000 gallons of wine per year, and
4shall not be a member of or affiliated with, directly or
5indirectly, a manufacturer that produces more than 150,000
6gallons of wine a year. A class 2 brewer licensee may make
7sales and deliveries to importing distributors and
8distributors, but shall not make sales or deliveries to any
9other licensee. If the State Commission provides prior
10approval, a class 2 brewer licensee may annually transfer up
11to 3,720,000 gallons of beer manufactured by that class 2
12brewer licensee to the premises of a licensed class 2 brewer
13wholly owned and operated by the same licensee.
14    A class 2 brewer may transfer beer to a brew pub wholly
15owned and operated by the class 2 brewer subject to the
16following limitations and restrictions: (i) the transfer shall
17not annually exceed more than 31,000 gallons; (ii) the annual
18amount transferred shall reduce the brew pub's annual
19permitted production limit; (iii) all beer transferred shall
20be subject to Article VIII of this Act; (iv) a written record
21shall be maintained by the brewer and brew pub specifying the
22amount, date of delivery, and receipt of the product by the
23brew pub; and (v) the brew pub shall be located no farther than
2480 miles from the class 2 brewer's licensed location.
25    A class 2 brewer shall, prior to transferring beer to a
26brew pub wholly owned by the class 2 brewer, furnish a written

 

 

10400HB0952sam002- 102 -LRB104 04854 RPS 38716 a

1notice to the State Commission of intent to transfer beer
2setting forth the name and address of the brew pub and shall
3annually submit to the State Commission a verified report
4identifying the total gallons of beer transferred to the brew
5pub wholly owned by the class 2 brewer.
6    Class 14. A class 3 brewer license, which may be issued to
7a brewer or a non-resident dealer, shall allow the manufacture
8of no more than 465,000 gallons of beer per year and no more
9than 155,000 gallons at a single brewery premises, and shall
10allow the sale of no more than 6,200 gallons of beer from each
11in-state or out-of-state class 3 brewery premises, or 18,600
12gallons in the aggregate, to retail licensees, class 1
13brewers, class 2 brewers, and class 3 brewers as long as the
14class 3 brewer licensee does not manufacture more than a
15combined 465,000 gallons of beer per year and is not a member
16of or affiliated with, directly or indirectly, a manufacturer
17that produces more than 465,000 gallons of beer per year to
18make sales to importing distributors, distributors, retail
19licensees, brewers, class 1 brewers, class 2 brewers, and
20class 3 brewers in accordance with the conditions set forth in
21paragraph (20) of subsection (a) of Section 3-12. If the State
22Commission provides prior approval, a class 3 brewer may
23annually transfer up to 155,000 gallons of beer manufactured
24by that class 3 brewer to the premises of a licensed class 3
25brewer wholly owned and operated by the same licensee. A class
263 brewer shall manufacture beer at the brewer's class 3

 

 

10400HB0952sam002- 103 -LRB104 04854 RPS 38716 a

1designated licensed premises, and may sell beer as otherwise
2provided in this Act.
3    Class 15. A class 3 craft distiller license, which may be
4issued to a distiller or a non-resident dealer, shall allow
5the manufacture of no more than 100,000 gallons of spirits per
6year and shall allow the sale of spirits from the class 3 craft
7distiller's in-state or out-of-state class 3 craft distillery
8premises to retail licensees, class 3 brewers, and class 3
9craft distillers as long as the class 3 craft distiller
10licensee does not manufacture more than a combined 100,000
11gallons of spirits per year and is not a member of or
12affiliated with, directly or indirectly, a manufacturer that
13produces more than 100,000 gallons of spirits per year and to
14make sales to importing distributors, distributors, retail
15licensees, class 3 brewers, and class 3 craft distillers in
16accordance with the conditions set forth in paragraph (21) of
17subsection (a) of Section 3-12. If the State Commission
18provides prior approval, a class 3 craft distiller may
19annually transfer up to 2,500 gallons of spirits manufactured
20by that class 3 craft distiller to the premises of a licensed
21class 3 craft distiller wholly owned and operated by the same
22licensee. A class 3 craft distiller shall manufacture spirits
23at the distiller's class 3 designated licensed premises and
24may sell spirits as otherwise provided in this Act.
25    (a-1) A manufacturer that is licensed in this State to
26make sales or deliveries of alcoholic liquor to licensed

 

 

10400HB0952sam002- 104 -LRB104 04854 RPS 38716 a

1distributors or importing distributors and which enlists
2agents, representatives, or individuals acting on its behalf
3who contact licensed retailers on a regular and continual
4basis in this State must register those agents,
5representatives, or persons acting on its behalf with the
6State Commission.
7    Registration of agents, representatives, or persons acting
8on behalf of a manufacturer is fulfilled by submitting a form
9to the State Commission. The form shall be developed by the
10State Commission and shall include the name and address of the
11applicant, the name and address of the manufacturer he or she
12represents, the territory or areas assigned to sell to or
13discuss pricing terms of alcoholic liquor, and any other
14questions deemed appropriate and necessary. All statements in
15the forms required to be made by law or by rule shall be deemed
16material, and any person who knowingly misstates any material
17fact under oath in an application is guilty of a Class B
18misdemeanor. Fraud, misrepresentation, false statements,
19misleading statements, evasions, or suppression of material
20facts in the securing of a registration are grounds for
21suspension or revocation of the registration. The State
22Commission shall post a list of registered agents on the State
23Commission's website.
24    (b) A distributor's license shall allow (i) the wholesale
25purchase and storage of alcoholic liquors and sale of
26alcoholic liquors to licensees in this State and to persons

 

 

10400HB0952sam002- 105 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 106 -LRB104 04854 RPS 38716 a

1bottling of alcoholic liquors. The importing distributor's
2license shall permit such licensee to purchase alcoholic
3liquor from Illinois licensed non-resident dealers and foreign
4importers only. No person licensed as an importing distributor
5shall be granted a non-resident dealer's license.
6    (d) A retailer's license shall allow the licensee to sell
7and offer for sale at retail, in or from the premises specified
8in the license, alcoholic liquor for use or consumption, but
9not for resale in any form except as otherwise provided in this
10Act. Except as provided in Section 6-16, 6-29, or 6-29.1,
11nothing in this Act shall deny, limit, remove, or restrict the
12ability of a holder of a retailer's license to transfer or ship
13alcoholic liquor to the purchaser for use or consumption
14subject to any applicable local law or ordinance. For the
15purposes of this Section, "shipping" means the movement of
16alcoholic liquor from a licensed retailer to a consumer via a
17common carrier. Except as provided in Section 6-16, 6-29, or
186-29.1, nothing in this Act shall deny, limit, remove, or
19restrict the ability of a holder of a retailer's license to
20deliver alcoholic liquor to the purchaser for use or
21consumption. The delivery shall be made only within 12 hours
22from the time the alcoholic liquor leaves the licensed
23premises of the retailer for delivery. For the purposes of
24this Section, "delivery" means the movement of alcoholic
25liquor purchased from a licensed retailer to a consumer
26through the following methods:

 

 

10400HB0952sam002- 107 -LRB104 04854 RPS 38716 a

1        (1) delivery within licensed retailer's parking lot,
2    including curbside, for pickup by the consumer;
3        (2) delivery by an owner, officer, director,
4    shareholder, or employee of the licensed retailer; or
5        (3) delivery by a third-party contractor, independent
6    contractor, or agent with whom the licensed retailer has
7    contracted to make deliveries of alcoholic liquors.
8    Under paragraph (1), (2), or (3), delivery shall not
9include the use of common carriers.
10    A retail licensee may use any website, mobile application,
11or similar platform that facilitates the sale or delivery of
12food, beverages, or goods and is owned or operated by the
13retail licensee, third-party contractor, an independent
14contractor, or an agent with whom the licensed retailer has
15contracted to facilitate deliveries or sales of alcoholic
16liquors under this Section. The use of any website, mobile
17application, or similar platform to facilitate deliveries or
18sales of alcoholic liquors shall not be considered an illegal
19sale, resale, transfer, barter, or exchange of alcohol under
20this Act.
21    Any retail license issued to a manufacturer shall only
22permit the manufacturer to sell beer at retail on the premises
23actually occupied by the manufacturer. For the purpose of
24further describing the type of business conducted at a retail
25licensed premises, a retailer's licensee may be designated by
26the State Commission as (i) an on premise consumption

 

 

10400HB0952sam002- 108 -LRB104 04854 RPS 38716 a

1retailer, (ii) an off premise sale retailer, or (iii) a
2combined on premise consumption and off premise sale retailer.
3    Except for a municipality with a population of more than
41,000,000 inhabitants, a home rule unit may not regulate the
5delivery of alcoholic liquor or require a retail licensee to
6obtain a separate or additional license for the delivery of
7alcoholic liquor. This paragraph is a limitation under
8subsection (i) of Section 6 of Article VII of the Illinois
9Constitution on the concurrent exercise by home rule units of
10powers and functions exercised by the State. A non-home rule
11municipality may not regulate the delivery of alcoholic liquor
12or require a retail licensee to obtain a separate or
13additional license for the delivery of alcoholic liquor.
14    Notwithstanding any other provision of this subsection
15(d), a retail licensee may sell alcoholic liquors to a special
16event retailer licensee for resale to the extent permitted
17under subsection (e).
18    The requirements in subsection (b-5) of Section 6-29 apply
19only to a winery shipper licensee that ships wine via common
20carrier and do not apply to a winery shipper licensee or a
21retail licensee that delivers, or causes to be delivered,
22alcohol pursuant to the methods outlined in item (1), (2), or
23(3) of this subsection.
24    Except as provided in this Section, for a manufacturer
25with a retail license, nothing in this Section shall be
26construed to prohibit an on-premises consumption retailer,

 

 

10400HB0952sam002- 109 -LRB104 04854 RPS 38716 a

1off-premises sale retailer, or combined on-premises
2consumption and off-premises sale retailer from delivering
3alcohol pursuant to this Section.
4    A retail licensee shall contract only with a third-party
5contractor, independent contractor, or agent to facilitate or
6make deliveries of alcoholic liquors that has a policy to
7verify the age of the person to whom the alcoholic liquor is
8being delivered based on the person's valid proof of identity
9indicating the person is age 21 or over. A retail licensee
10shall not be civilly liable for sales or deliveries made to
11intoxicated persons or persons under the age of 21 if the
12delivery of alcoholic liquor was conducted by a third-party
13contractor, independent contractor, or agent with whom the
14licensed retailer has contracted to make deliveries of
15alcoholic liquor.
16    (e) A special event retailer's license (not-for-profit)
17shall permit the licensee to purchase alcoholic liquors from
18an Illinois licensed distributor (unless the licensee
19purchases less than $500 of alcoholic liquors for the special
20event, in which case the licensee may purchase the alcoholic
21liquors from a licensed retailer) and shall allow the licensee
22to sell and offer for sale, at retail, alcoholic liquors for
23consumption on or off the premises specified in the license,
24but not for resale in any form and only at the location and on
25the specific dates designated for the special event in the
26license. An applicant for a special event retailer license

 

 

10400HB0952sam002- 110 -LRB104 04854 RPS 38716 a

1must (i) furnish with the application: (A) a resale number
2issued under Section 2c of the Retailers' Occupation Tax Act
3or evidence that the applicant is registered under Section 2a
4of the Retailers' Occupation Tax Act, (B) a current, valid
5exemption identification number issued under Section 1g of the
6Retailers' Occupation Tax Act and a certification to the State
7Commission that the purchase of alcoholic liquors will be a
8tax-exempt purchase, or (C) a statement that the applicant is
9not registered under Section 2a of the Retailers' Occupation
10Tax Act, does not hold a resale number under Section 2c of the
11Retailers' Occupation Tax Act, and does not hold an exemption
12number under Section 1g of the Retailers' Occupation Tax Act,
13in which event the State Commission shall set forth on the
14special event retailer's license a statement to that effect;
15(ii) submit with the application proof satisfactory to the
16State Commission that the applicant will provide dram shop
17liability insurance in the maximum limits; and (iii) show
18proof satisfactory to the State Commission that the applicant
19has obtained local authority approval.
20    Nothing in this Act prohibits an Illinois licensed
21distributor from offering credit or a refund for unused,
22salable alcoholic liquors to a holder of a special event
23retailer's license or the special event retailer's licensee
24from accepting the credit or refund of alcoholic liquors at
25the conclusion of the event specified in the license.
26    (f) A railroad license shall permit the licensee to import

 

 

10400HB0952sam002- 111 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 112 -LRB104 04854 RPS 38716 a

1    (h) A non-beverage user's license shall allow the licensee
2to purchase alcoholic liquor from a licensed manufacturer or
3importing distributor, without the imposition of any tax upon
4the business of such licensed manufacturer or importing
5distributor as to such alcoholic liquor to be used by such
6licensee solely for the non-beverage purposes set forth in
7subsection (a) of Section 8-1 of this Act, and such licenses
8shall be divided and classified and shall permit the purchase,
9possession, and use of limited and stated quantities of
10alcoholic liquor as follows:
11Class 1, not to exceed ......................... 500 gallons
12Class 2, not to exceed ....................... 1,000 gallons
13Class 3, not to exceed ....................... 5,000 gallons
14Class 4, not to exceed ...................... 10,000 gallons
15Class 5, not to exceed ....................... 50,000 gallons
16    (i) A wine-maker's premises license shall allow a licensee
17that concurrently holds a first-class wine-maker's license to
18sell and offer for sale at retail in the premises specified in
19such license not more than 50,000 gallons of the first-class
20wine-maker's wine that is made at the first-class wine-maker's
21licensed premises per year for use or consumption, but not for
22resale in any form. A wine-maker's premises license shall
23allow a licensee who concurrently holds a second-class
24wine-maker's license to sell and offer for sale at retail in
25the premises specified in such license up to 100,000 gallons
26of the second-class wine-maker's wine that is made at the

 

 

10400HB0952sam002- 113 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 114 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 115 -LRB104 04854 RPS 38716 a

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

 

 

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

 

 

10400HB0952sam002- 117 -LRB104 04854 RPS 38716 a

1importing distributors and to no one else in this State;
2provided that (i) said non-resident dealer shall register with
3the Illinois Liquor Control Commission each and every brand of
4alcoholic liquor which it proposes to sell to Illinois
5licensees during the license period, (ii) it shall comply with
6all of the provisions of Section 6-9 hereof with respect to
7registration of such Illinois licensees as may be granted the
8right to sell such brands at wholesale by duly filing such
9registration statement, thereby authorizing the non-resident
10dealer to proceed to sell such brands at wholesale, and (iii)
11the non-resident dealer shall comply with the provisions of
12Sections 6-5 and 6-6 of this Act to the same extent that these
13provisions apply to manufacturers. No person licensed as a
14non-resident dealer shall be granted a distributor's or
15importing distributor's license.
16    (n) A brew pub license shall allow the licensee to only (i)
17manufacture up to 155,000 gallons of beer per year only on the
18premises specified in the license, (ii) make sales of the beer
19manufactured on the premises or, with the approval of the
20State Commission, beer manufactured on another brew pub
21licensed premises that is wholly owned and operated by the
22same licensee to importing distributors, distributors, and
23non-licensees for use and consumption, (iii) store the beer
24upon the premises, (iv) sell and offer for sale at retail from
25the licensed premises for off-premises consumption no more
26than 155,000 gallons per year so long as such sales are only

 

 

10400HB0952sam002- 118 -LRB104 04854 RPS 38716 a

1made in-person, (v) sell and offer for sale at retail for use
2and consumption on the premises specified in the license any
3form of alcoholic liquor purchased from a licensed distributor
4or importing distributor, (vi) with the prior approval of the
5State Commission, annually transfer no more than 155,000
6gallons of beer manufactured on the premises to a licensed
7brew pub wholly owned and operated by the same licensee, and
8(vii) notwithstanding item (i) of this subsection, brew pubs
9wholly owned and operated by the same licensee may combine
10each location's production limit of 155,000 gallons of beer
11per year and allocate the aggregate total between the wholly
12owned, operated, and licensed locations.
13    A brew pub licensee shall not under any circumstance sell
14or offer for sale beer manufactured by the brew pub licensee to
15retail licensees.
16    A person who holds a class 2 brewer license may
17simultaneously hold a brew pub license if the class 2 brewer
18(i) does not, under any circumstance, sell or offer for sale
19beer manufactured by the class 2 brewer to retail licensees;
20(ii) does not hold more than 3 brew pub licenses in this State;
21(iii) does not manufacture more than a combined 3,720,000
22gallons of beer per year, including the beer manufactured at
23the brew pub; and (iv) is not a member of or affiliated with,
24directly or indirectly, a manufacturer that produces more than
253,720,000 gallons of beer per year or any other alcoholic
26liquor.

 

 

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1    Notwithstanding any other provision of this Act, a
2licensed brewer, class 2 brewer, or non-resident dealer who
3before July 1, 2015 manufactured less than 3,720,000 gallons
4of beer per year and held a brew pub license on or before July
51, 2015 may (i) continue to qualify for and hold that brew pub
6license for the licensed premises and (ii) manufacture more
7than 3,720,000 gallons of beer per year and continue to
8qualify for and hold that brew pub license if that brewer,
9class 2 brewer, or non-resident dealer does not simultaneously
10hold a class 1 brewer license and is not a member of or
11affiliated with, directly or indirectly, a manufacturer that
12produces more than 3,720,000 gallons of beer per year or that
13produces any other alcoholic liquor.
14    A brew pub licensee may apply for a class 3 brewer license
15and, upon meeting all applicable qualifications of this Act
16and relinquishing all commonly owned brew pub or retail
17licenses, shall be issued a class 3 brewer license. Nothing in
18this Act shall prohibit the issuance of a class 3 brewer
19license if the applicant:
20        (1) has a valid retail license on or before May 1,
21    2021;
22        (2) has an ownership interest in at least 2 brew pubs
23    licenses on or before May 1, 2021;
24        (3) the brew pub licensee applies for a class 3 brewer
25    license on or before October 1, 2022 and relinquishes all
26    commonly owned brew pub licenses; and

 

 

10400HB0952sam002- 120 -LRB104 04854 RPS 38716 a

1        (4) relinquishes all commonly owned retail licenses on
2    or before December 31, 2022.
3    If a brew pub licensee is issued a class 3 brewer license,
4the class 3 brewer license shall expire on the same date as the
5existing brew pub license and the State Commission shall not
6require a class 3 brewer licensee to obtain a brewer license
7or, in the alternative, to pay a fee for a brewer license,
8until the date the brew pub license of the applicant would have
9expired.
10    (o) A caterer retailer license shall allow the holder to
11serve alcoholic liquors as an incidental part of a food
12service that serves prepared meals which excludes the serving
13of snacks as the primary meal, either on or off-site whether
14licensed or unlicensed. A caterer retailer license shall allow
15the holder, a distributor, or an importing distributor to
16transfer any inventory to and from the holder's retail
17premises and shall allow the holder to purchase alcoholic
18liquor from a distributor or importing distributor to be
19delivered directly to an off-site event.
20    Nothing in this Act prohibits a distributor or importing
21distributor from offering credit or a refund for unused,
22salable beer to a holder of a caterer retailer license or a
23caterer retailer licensee from accepting a credit or refund
24for unused, salable beer, in the event an act of God is the
25sole reason an off-site event is canceled and if: (i) the
26holder of a caterer retailer license has not transferred

 

 

10400HB0952sam002- 121 -LRB104 04854 RPS 38716 a

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

 

 

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

 

 

10400HB0952sam002- 123 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 124 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 125 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 126 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 127 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 128 -LRB104 04854 RPS 38716 a

1winery shipper's license shall be revoked in accordance with
2the provisions of Article VII of this Act.
3    A winery shipper licensee must collect, maintain, and
4submit to the State Commission on a semi-annual basis the
5total number of cases per resident of wine shipped to
6residents of this State. A winery shipper licensed under this
7subsection (r) must comply with the requirements of Section
86-29 of this Act.
9    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
10Section 3-12, the State Commission may receive, respond to,
11and investigate any complaint and impose any of the remedies
12specified in paragraph (1) of subsection (a) of Section 3-12.
13    As used in this subsection, "third-party provider" means
14any entity that provides fulfillment house services, including
15warehousing, packaging, distribution, order processing, or
16shipment of wine, but not the sale of wine, on behalf of a
17licensed winery shipper.
18    (s) A craft distiller tasting permit license shall allow
19an Illinois licensed class 1 craft distiller or class 2 craft
20distiller to transfer a portion of its alcoholic liquor
21inventory from its class 1 craft distiller or class 2 craft
22distiller licensed premises to the premises specified in the
23license hereby created and to conduct a sampling, only in the
24premises specified in the license hereby created, of the
25transferred alcoholic liquor in accordance with subsection (c)
26of Section 6-31 of this Act. The transferred alcoholic liquor

 

 

10400HB0952sam002- 129 -LRB104 04854 RPS 38716 a

1may not be sold or resold in any form. An applicant for the
2craft distiller tasting permit license must also submit with
3the application proof satisfactory to the State Commission
4that the applicant will provide dram shop liability insurance
5to the maximum limits and have local authority approval.
6    (t) A brewer warehouse permit may be issued to the holder
7of a class 1 brewer license or a class 2 brewer license. If the
8holder of the permit is a class 1 brewer licensee, the brewer
9warehouse permit shall allow the holder to store or warehouse
10up to 930,000 gallons of tax-determined beer manufactured by
11the holder of the permit at the premises specified on the
12permit. If the holder of the permit is a class 2 brewer
13licensee, the brewer warehouse permit shall allow the holder
14to store or warehouse up to 3,720,000 gallons of
15tax-determined beer manufactured by the holder of the permit
16at the premises specified on the permit. Sales to
17non-licensees are prohibited at the premises specified in the
18brewer warehouse permit.
19    (u) A distilling pub license shall allow the licensee to
20only (i) manufacture up to 5,000 gallons of spirits per year
21only on the premises specified in the license, (ii) make sales
22of the spirits manufactured on the premises or, with the
23approval of the State Commission, spirits manufactured on
24another distilling pub licensed premises that is wholly owned
25and operated by the same licensee to importing distributors
26and distributors and to non-licensees for use and consumption,

 

 

10400HB0952sam002- 130 -LRB104 04854 RPS 38716 a

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

 

 

10400HB0952sam002- 131 -LRB104 04854 RPS 38716 a

1the holder of a class 1 craft distiller or class 2 craft
2distiller license. The craft distiller warehouse permit shall
3allow the holder to store or warehouse up to 500,000 gallons of
4spirits manufactured by the holder of the permit at the
5premises specified on the permit. Sales to non-licensees are
6prohibited at the premises specified in the craft distiller
7warehouse permit.
8    (w) A beer showcase permit license shall allow a class 3
9brewer to transfer only beer the class 3 brewer manufactures
10from its licensed premises to the premises specified in the
11beer showcase permit license and to sell or offer for sale at
12retail, only in the premises specified in the beer showcase
13permit license, the transferred or delivered beer for on or
14off premise consumption, but not for resale in any form and to
15sell to non-licensees not more than 96 fluid ounces of beer per
16person. A beer showcase permit license may be granted for the
17following time periods: one day or less; or 2 or more days to a
18maximum of 15 days per location in any 12-month period. An
19applicant for a beer showcase permit license must also submit
20with the application proof satisfactory to the State
21Commission that the applicant will provide dram shop liability
22insurance to the maximum limits and have local authority
23approval. The State Commission shall require the beer showcase
24applicant to comply with Section 6-27.1.
25    (x) A spirits showcase permit shall allow a class 3 craft
26distiller to transfer only spirits the class 3 craft distiller

 

 

10400HB0952sam002- 132 -LRB104 04854 RPS 38716 a

1manufactures from its licensed premises to the premises
2specified in the spirits showcase permit and to sell or offer
3for sale at retail, only in the premises specified in the
4spirits showcase permit, the transferred or delivered spirits
5for on-premises or off-premises consumption, but not for
6resale in any form, and to sell to non-licensees not more than
7156 fluid ounces of spirits per person. A spirits showcase
8permit may be granted for the following time periods: one day
9or less; or 2 or more days up to a maximum of 15 days per
10location in any 12-month period. An applicant for a spirits
11showcase permit must also submit with the application proof
12satisfactory to the State Commission that the applicant will
13provide dram shop liability insurance to the maximum limits
14and have local authority approval. The State Commission shall
15require the spirits showcase applicant to comply with Section
166-27.1.
17(Source: P.A. 104-451, Section 5, eff. 7-1-26; 104-451,
18Section 10, eff. 12-12-25; revised 1-7-26.)
 
19    (235 ILCS 5/7-1)  (from Ch. 43, par. 145)
20    Sec. 7-1. An applicant for a retail license from the State
21Commission shall submit to the State Commission an application
22in writing under oath stating:
23        (1) The applicant's name and mailing address;
24        (2) The name and address of the applicant's business;
25        (3) If applicable, the date of the filing of the

 

 

10400HB0952sam002- 133 -LRB104 04854 RPS 38716 a

1    "assumed name" of the business with the County Clerk;
2        (4) In case of a copartnership, the date of the
3    formation of the partnership; in the case of an Illinois
4    corporation, the date of its incorporation; or in the case
5    of a foreign corporation, the State where it was
6    incorporated and the date of its becoming qualified under
7    the Business Corporation Act of 1983 to transact business
8    in the State of Illinois;
9        (5) The number, the date of issuance and the date of
10    expiration of the applicant's current local retail liquor
11    license;
12        (6) The name of the city, village, or county that
13    issued the local retail liquor license;
14        (7) The name and address of the landlord if the
15    premises are leased;
16        (8) The date of the applicant's first request for a
17    State liquor license and whether it was granted, denied or
18    withdrawn;
19        (9) The address of the applicant when the first
20    application for a State liquor license was made;
21        (10) The applicant's current State liquor license
22    number;
23        (11) The date the applicant began liquor sales at his
24    place of business;
25        (12) The address of the applicant's warehouse if he
26    warehouses liquor;

 

 

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1        (13) The applicant's Retailers' Occupation Tax (ROT)
2    Registration Number;
3        (14) The applicant's document locator number on his
4    Federal Special Tax Stamp;
5        (15) Whether the applicant is delinquent in the
6    payment of the Retailers' Occupation Tax (Sales Tax), and
7    if so, the reasons therefor;
8        (16) Whether the applicant is delinquent under the
9    cash beer law, and if so, the reasons therefor;
10        (17) In the case of a retailer, whether he is
11    delinquent under the 30-day credit law, and if so, the
12    reasons therefor;
13        (18) In the case of a distributor, whether he is
14    delinquent under the 15-day credit law, and if so, the
15    reasons therefor;
16        (19) Whether the applicant has made an application for
17    a liquor license which has been denied, and if so, the
18    reasons therefor;
19        (20) Whether the applicant has ever had any previous
20    liquor license suspended or revoked, and if so, the
21    reasons therefor;
22        (21) Whether the applicant has ever been convicted of
23    a gambling offense or felony, and if so, the particulars
24    thereof;
25        (22) Whether the applicant possesses a current Federal
26    Wagering Stamp, and if so, the reasons therefor;

 

 

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1        (23) Whether the applicant, or any other person,
2    directly in his place of business is a public official,
3    and if so, the particulars thereof;
4        (24) The applicant's name, sex, date of birth, social
5    security number, position and percentage of ownership in
6    the business; and the name, sex, date of birth, social
7    security number, position and percentage of ownership in
8    the business of every sole owner, partner, corporate
9    officer, director, manager and any person who owns 5% or
10    more of the shares of the applicant business entity or
11    parent corporations of the applicant business entity; and
12        (25) That he has not received or borrowed money or
13    anything else of value, and that he will not receive or
14    borrow money or anything else of value (other than
15    merchandising credit in the ordinary course of business
16    for a period not to exceed 90 days as herein expressly
17    permitted under Section 6-5 hereof), directly or
18    indirectly, from any manufacturer, importing distributor
19    or distributor or from any representative of any such
20    manufacturer, importing distributor or distributor, nor be
21    a party in any way, directly or indirectly, to any
22    violation by a manufacturer, distributor or importing
23    distributor of Section 6-6 of this Act; and .
24        (26) The applicant's primary and supplementary
25    electronic mail addresses to which all license-related
26    notices may be served.

 

 

10400HB0952sam002- 136 -LRB104 04854 RPS 38716 a

1    In addition to any other requirement of this Section, an
2applicant for a special use permit license and a special event
3retailer's license shall also submit (A) proof satisfactory to
4the Commission that the applicant has a resale number issued
5under Section 2c of the Retailers' Occupation Tax Act or that
6the applicant is registered under Section 2a of the Retailers'
7Occupation Tax Act, (B) proof satisfactory to the Commission
8that the applicant has a current, valid exemption
9identification number issued under Section 1g of the
10Retailers' Occupation Tax Act and a certification to the
11Commission that the purchase of alcoholic liquors will be a
12tax-exempt purchase, or (C) a statement that the applicant is
13not registered under Section 2a of the Retailers' Occupation
14Tax Act, does not hold a resale number under Section 2c of the
15Retailers' Occupation Tax Act, and does not hold an exemption
16number under Section 1g of the Retailers' Occupation Tax Act.
17The applicant shall also submit proof of adequate dram shop
18insurance for the special event prior to being issued a
19license.
20    In addition to the foregoing information, such application
21shall contain such other and further information as the State
22Commission and the local commission may, by rule or regulation
23not inconsistent with law, prescribe.
24    If the applicant reports a felony conviction as required
25under paragraph (21) of this Section, such conviction may be
26considered by the Commission in accordance with Section 6-2.5

 

 

10400HB0952sam002- 137 -LRB104 04854 RPS 38716 a

1of this Act in determining qualifications for licensing, but
2shall not operate as a bar to licensing.
3    If said application is made in behalf of a partnership,
4firm, association, club or corporation, then the same shall be
5signed by one member of such partnership or the president or
6secretary of such corporation or an authorized agent of said
7partnership or corporation.
8    All other applications shall be on forms prescribed by the
9State Commission, and which may exclude any of the above
10requirements which the State Commission rules to be
11inapplicable.
12(Source: P.A. 100-286, eff. 1-1-18.)
 
13    (235 ILCS 5/7-6)  (from Ch. 43, par. 150)
14    Sec. 7-6. All proceedings for the revocation or suspension
15of licenses of manufacturers, distributors, importing
16distributors, non-resident dealers, foreign importers,
17non-beverage users, railroads, airplanes and boats shall be
18before the State Commission. All such proceedings and all
19proceedings for the revocation or suspension of a retailer's
20license before the State Commission commission shall be in
21accordance with rules and regulations established by it not
22inconsistent with law. However, no such license shall be so
23revoked or suspended except after a hearing by the State
24commission with reasonable notice to the licensee served by
25electronic or other reasonable means registered or certified

 

 

10400HB0952sam002- 138 -LRB104 04854 RPS 38716 a

1mail with return receipt requested at least 10 days prior to
2the hearings at the last known place of business of the
3licensee or to the licensee's primary or supplemental email
4address and after an opportunity to appear and defend. Such
5notice shall specify the time and place of the hearing, the
6nature of the charges, the specific provisions of the Act and
7rules violated, and the specific facts supporting the charges
8or violation. The findings of the Commission shall be
9predicated upon competent evidence. The revocation of a local
10license shall automatically result in the revocation of a
11State license. Upon notification by the Illinois Department of
12Revenue, the State Commission, in accordance with Section
133-12, may refuse the issuance or renewal of a license, fine a
14licensee, or suspend or revoke any license issued by the State
15Commission if the licensee or license applicant has violated
16the provisions of Section 3 of the Retailers' Occupation Tax
17Act. All procedures for the suspension or revocation of a
18license, as enumerated above, are applicable to the levying of
19fines for violations of this Act or any rule or regulation
20issued pursuant thereto.
21(Source: P.A. 95-331, eff. 8-21-07.)
 
22    Section 95. No acceleration or delay. Where this Act makes
23changes in a statute that is represented in this Act by text
24that is not yet or no longer in effect (for example, a Section
25represented by multiple versions), the use of that text does

 

 

10400HB0952sam002- 139 -LRB104 04854 RPS 38716 a

1not accelerate or delay the taking effect of (i) the changes
2made by this Act or (ii) provisions derived from any other
3Public Act.
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".