HB5381 104TH GENERAL ASSEMBLY

LRB104 18760 HLH 32203 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5381

Introduced 2/10/2026, by Rep. Theresa Mah

SYNOPSIS AS INTRODUCED:

New Act

Creates the Illinois Grape and Wine Industry Act. Provides that an annual appropriation equal to $0.50 per gallon of wine reported and paid by wine manufacturers in the State under the excise tax rate set forth by law shall be directed to the Illinois Grape Growers and Vintners Alliance. Sets forth mechanisms for the calculation of the annual appropriation and administration of the Act. Effective immediately.

A BILL FOR

AN ACT concerning State government.

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

Section 1. Short title. This Act may be cited as the Illinois Grape and Wine Industry Act.

Section 5. Findings and purpose.

(a) The General Assembly finds that:

(1) The Illinois grape and wine industry is a vital component of this State's agricultural economy, contributing significantly to job creation, tourism, and rural development.

(2) Grapes are the highest value specialty crop in the United States.

(3) The Illinois Grape Growers and Vintners Alliance, established in 1992, has played a pivotal role in supporting the growth and sustainability of the industry through research, education, marketing, and operational initiatives.

(4) The Illinois Grape Growers and Vintners Alliance represents stakeholders across this State through its Board of Directors, which ensures equitable statewide representation from the 4 distinct regions of Illinois.

(5) To ensure the retention and expansion of the Illinois grape and wine industry, additional funding is necessary to support these critical activities.

(b) The purpose of this Act is to establish a dedicated funding mechanism to provide financial support for the Illinois Grape Growers and Vintners Alliance's efforts in promoting and sustaining the Illinois grape and wine industry.

Section 10. Funding mechanism.

(a) An annual appropriation equal to $0.50 per gallon of wine reported and paid by wine manufacturers in this State under the excise tax rate set forth by law shall be directed to the Illinois Grape Growers and Vintners Alliance.

The allocation shall apply exclusively to excise taxes collected from wine manufacturers in this State as reported on Form RL-26 or a successor form prescribed by the Department of Revenue.

(b) All funds appropriated under this Section shall be used by the Illinois Grape Growers and Vintners Alliance for the following purposes:

(1) research initiatives aimed at improving grape cultivation, wine making processes, and sustainability practices;

(2) educational programs for grape growers, winemakers, and industry stakeholders;

(3) marketing campaigns to promote Illinois wines locally, nationally, and internationally; and

(4) operational expenses necessary for the Illinois Grape Growers and Vintners Alliance to effectively execute its mission of supporting industry retention and expansion.

(c) The first allocation of funds shall be calculated based on excise taxes reported by wine manufacturers in this State over the immediately preceding 12-month period before the effective date of this Act. The Department of Revenue shall certify the allocation amount no later than 90 days after the enactment for appropriation to the Illinois Grape Growers and Vintners Alliance.

(d) For subsequent years, the Department of Revenue shall calculate on an annual basis the total gallons reported by wine manufacturers in this State on Form RL-26 or its successor form for the preceding calendar year. The Department of Revenue shall certify the corresponding allocation amount at $0.50 per gallon for appropriation to the Illinois Grape Growers and Vintners Alliance no later than March 31 each year.

(e) The Illinois Grape Growers and Vintners Alliance shall submit an annual report to the Department of Agriculture detailing the use of funds appropriated under this Act. The report shall include:

(1) a summary of research projects conducted;

(2) educational programs delivered;

(3) marketing activities undertaken;

(4) operational expenditures incurred; and

(5) measurable outcomes achieved in supporting the grape and wine industry in this State.

Section 15. Governance and representation.

(a) The Illinois Grape Growers and Vintners Alliance Board of Directors shall maintain statewide representation through a balanced structure that ensures equitable participation from all regions of this State.

(b) The Board shall consist of 12 members who represent the 4 geographic regions of this State as follows:

(1) 3 representatives of the North region;

(2) 3 representatives of the Central region;

(3) 3 representatives of the South Central region; and

(4) 3 representatives of the South region.

(c) The Board members shall be selected in accordance with the Illinois Grape Growers and Vintners Alliance's bylaws to ensure fair representation of grape growers, winemakers, and other stakeholders throughout this State.

Section 20. Administration.

(a) The Department of Revenue shall oversee calculations related to gallons reported by wine manufacturers in this State under Form RL-26 or its successor form.

(b) The Department of Agriculture shall administer the disbursement of funds appropriated under this Act to the Illinois Grape Growers and Vintners Alliance in accordance with the laws of this State.

Section 99. Effective date. This Act takes effect upon becoming law.