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| | SB0618 Enrolled | | LRB104 06890 RPS 16926 b |
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| 1 | | AN ACT concerning liquor. |
| 2 | | Be it enacted by the People of the State of Illinois, |
| 3 | | represented in the General Assembly: |
| 4 | | Section 5. The Liquor Control Act of 1934 is amended by |
| 5 | | changing Sections 1-3.17.1, 3-12, 5-1, 5-3, 6-4, and 8-2 and |
| 6 | | by adding Sections 1-3.47, 1-3.48, and 6-40 as follows: |
| 7 | | (235 ILCS 5/1-3.17.1) (from Ch. 43, par. 95.17.1) |
| 8 | | Sec. 1-3.17.1. "Special event retailer" means an |
| 9 | | educational, fraternal, political, civic, religious, or |
| 10 | | non-profit organization which sells or offers for sale beer, |
| 11 | | spirits, or wine, or any combination thereof, only for |
| 12 | | consumption on or off the premises specified in the license |
| 13 | | and those sales are made at the location and on the dates |
| 14 | | designated by a special event retail license. |
| 15 | | (Source: P.A. 100-17, eff. 6-30-17.) |
| 16 | | (235 ILCS 5/1-3.47 new) |
| 17 | | Sec. 1-3.47. Class 3 craft distiller. "Class 3 craft |
| 18 | | distiller" means a person who is a holder of a distiller |
| 19 | | license or a non-resident dealer license who manufactures no |
| 20 | | more than 100,000 gallons of spirits per year in the aggregate |
| 21 | | and who may make sales to importing distributors, |
| 22 | | distributors, and retail licensees in accordance with the |
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| 1 | | conditions set forth in paragraph (21) of subsection (a) of |
| 2 | | Section 3-12. |
| 3 | | (235 ILCS 5/1-3.48 new) |
| 4 | | Sec. 1-3.48. Spirits showcase permit. "Spirits showcase |
| 5 | | permit" means a license for use by a class 1 craft distiller, |
| 6 | | class 2 craft distiller, or class 3 craft distiller to allow |
| 7 | | for the transfer of spirits only from an existing licensed |
| 8 | | premises of a class 1 craft distiller, class 2 craft |
| 9 | | distiller, or class 3 craft distiller to a designated site for |
| 10 | | a specific event. |
| 11 | | (235 ILCS 5/3-12) |
| 12 | | Sec. 3-12. Powers and duties of State Commission. |
| 13 | | (a) The State Commission shall have the following powers, |
| 14 | | functions, and duties: |
| 15 | | (1) To receive applications and to issue licenses to |
| 16 | | manufacturers, foreign importers, importing distributors, |
| 17 | | distributors, non-resident dealers, on premise consumption |
| 18 | | retailers, off premise sale retailers, special event |
| 19 | | retailer licensees, special use permit licenses, auction |
| 20 | | liquor licenses, brew pubs, caterer retailers, |
| 21 | | non-beverage users, railroads, including owners and |
| 22 | | lessees of sleeping, dining, and cafe cars, airplanes, |
| 23 | | boats, brokers, and wine maker's premises licensees in |
| 24 | | accordance with the provisions of this Act, and to suspend |
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| 1 | | or revoke such licenses upon the State Commission's |
| 2 | | determination, upon notice after hearing, that a licensee |
| 3 | | has violated any provision of this Act or any rule or |
| 4 | | regulation issued pursuant thereto and in effect for 30 |
| 5 | | days prior to such violation. Except in the case of an |
| 6 | | action taken pursuant to a violation of Section 6-3, 6-5, |
| 7 | | or 6-9, any action by the State Commission to suspend or |
| 8 | | revoke a licensee's license may be limited to the license |
| 9 | | for the specific premises where the violation occurred. An |
| 10 | | action for a violation of this Act shall be commenced by |
| 11 | | the State Commission within 2 years after the date the |
| 12 | | State Commission becomes aware of the violation. |
| 13 | | In lieu of suspending or revoking a license, the State |
| 14 | | Commission commission may impose a fine, upon the State |
| 15 | | Commission's determination and notice after hearing, that |
| 16 | | a licensee has violated any provision of this Act or any |
| 17 | | rule or regulation issued pursuant thereto and in effect |
| 18 | | for 30 days prior to such violation. |
| 19 | | For the purpose of this paragraph (1), when |
| 20 | | determining multiple violations for the sale of alcohol to |
| 21 | | a person under the age of 21, a second or subsequent |
| 22 | | violation for the sale of alcohol to a person under the age |
| 23 | | of 21 shall only be considered if it was committed within 5 |
| 24 | | years after the date when a prior violation for the sale of |
| 25 | | alcohol to a person under the age of 21 was committed. |
| 26 | | The fine imposed under this paragraph may not exceed |
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| 1 | | $500 for each violation. Each day that the activity, which |
| 2 | | gave rise to the original fine, continues is a separate |
| 3 | | violation. The maximum fine that may be levied against any |
| 4 | | licensee, for the period of the license, shall not exceed |
| 5 | | $20,000. The maximum penalty that may be imposed on a |
| 6 | | licensee for selling a bottle of alcoholic liquor with a |
| 7 | | foreign object in it or serving from a bottle of alcoholic |
| 8 | | liquor with a foreign object in it shall be the |
| 9 | | destruction of that bottle of alcoholic liquor for the |
| 10 | | first 10 bottles so sold or served from by the licensee. |
| 11 | | For the eleventh bottle of alcoholic liquor and for each |
| 12 | | third bottle thereafter sold or served from by the |
| 13 | | licensee with a foreign object in it, the maximum penalty |
| 14 | | that may be imposed on the licensee is the destruction of |
| 15 | | the bottle of alcoholic liquor and a fine of up to $50. |
| 16 | | Any notice issued by the State Commission to a |
| 17 | | licensee for a violation of this Act or any notice with |
| 18 | | respect to settlement or offer in compromise shall include |
| 19 | | the field report, photographs, and any other supporting |
| 20 | | documentation necessary to reasonably inform the licensee |
| 21 | | of the nature and extent of the violation or the conduct |
| 22 | | alleged to have occurred. The failure to include such |
| 23 | | required documentation shall result in the dismissal of |
| 24 | | the action. |
| 25 | | (2) To adopt such rules and regulations consistent |
| 26 | | with the provisions of this Act which shall be necessary |
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| 1 | | to carry on its functions and duties to the end that the |
| 2 | | health, safety, and welfare of the People of the State of |
| 3 | | Illinois shall be protected and temperance in the |
| 4 | | consumption of alcoholic liquors shall be fostered and |
| 5 | | promoted and to distribute copies of such rules and |
| 6 | | regulations to all licensees affected thereby. |
| 7 | | (3) To call upon other administrative departments of |
| 8 | | the State, county and municipal governments, county and |
| 9 | | city police departments, and upon prosecuting officers for |
| 10 | | such information and assistance as it deems necessary in |
| 11 | | the performance of its duties. |
| 12 | | (4) To recommend to local commissioners rules and |
| 13 | | regulations, not inconsistent with the law, for the |
| 14 | | distribution and sale of alcoholic liquors throughout the |
| 15 | | State. |
| 16 | | (5) To inspect, or cause to be inspected, any premises |
| 17 | | in this State where alcoholic liquors are manufactured, |
| 18 | | distributed, warehoused, or sold. Nothing in this Act |
| 19 | | authorizes an agent of the State Commission to inspect |
| 20 | | private areas within the premises without reasonable |
| 21 | | suspicion or a warrant during an inspection. "Private |
| 22 | | areas" includes include, but is are not limited to, safes, |
| 23 | | personal property, and closed desks. |
| 24 | | (5.1) Upon receipt of a complaint or upon having |
| 25 | | knowledge that any person is engaged in business as a |
| 26 | | manufacturer, importing distributor, distributor, or |
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| 1 | | retailer without a license or valid license, to conduct an |
| 2 | | investigation. If, after conducting an investigation, the |
| 3 | | State Commission is satisfied that the alleged conduct |
| 4 | | occurred or is occurring, it may issue a cease and desist |
| 5 | | notice as provided in this Act, impose civil penalties as |
| 6 | | provided in this Act, notify the local liquor authority, |
| 7 | | or file a complaint with the State's Attorney's Office of |
| 8 | | the county where the incident occurred or the Attorney |
| 9 | | General. |
| 10 | | (5.2) Upon receipt of a complaint or upon having |
| 11 | | knowledge that any person is shipping alcoholic liquor |
| 12 | | into this State from a point outside of this State if the |
| 13 | | shipment is in violation of this Act, to conduct an |
| 14 | | investigation. If, after conducting an investigation, the |
| 15 | | State Commission is satisfied that the alleged conduct |
| 16 | | occurred or is occurring, it may issue a cease and desist |
| 17 | | notice as provided in this Act, impose civil penalties as |
| 18 | | provided in this Act, notify the foreign jurisdiction, or |
| 19 | | file a complaint with the State's Attorney's Office of the |
| 20 | | county where the incident occurred or the Attorney |
| 21 | | General. |
| 22 | | (5.3) To receive complaints from licensees, local |
| 23 | | officials, law enforcement agencies, organizations, and |
| 24 | | persons stating that any licensee has been or is violating |
| 25 | | any provision of this Act or the rules and regulations |
| 26 | | issued pursuant to this Act. Such complaints shall be in |
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| 1 | | writing, signed and sworn to by the person making the |
| 2 | | complaint, and shall state with specificity the facts in |
| 3 | | relation to the alleged violation. If the State Commission |
| 4 | | has reasonable grounds to believe that the complaint |
| 5 | | substantially alleges a violation of this Act or rules and |
| 6 | | regulations adopted pursuant to this Act, it shall conduct |
| 7 | | an investigation. If, after conducting an investigation, |
| 8 | | the State Commission is satisfied that the alleged |
| 9 | | violation did occur, it shall proceed with disciplinary |
| 10 | | action against the licensee as provided in this Act. |
| 11 | | (5.4) To make arrests and issue notices of civil |
| 12 | | violations where necessary for the enforcement of this |
| 13 | | Act. |
| 14 | | (5.5) To investigate any and all unlicensed activity. |
| 15 | | (5.6) To impose civil penalties or fines to any person |
| 16 | | who, without holding a valid license, engages in conduct |
| 17 | | that requires a license pursuant to this Act, in an amount |
| 18 | | not to exceed $20,000 for each offense as determined by |
| 19 | | the State Commission. A civil penalty shall be assessed by |
| 20 | | the State Commission after a hearing is held in accordance |
| 21 | | with the provisions set forth in this Act regarding the |
| 22 | | provision of a hearing for the revocation or suspension of |
| 23 | | a license. |
| 24 | | (6) To hear and determine appeals from orders of a |
| 25 | | local commission in accordance with the provisions of this |
| 26 | | Act, as hereinafter set forth. Hearings under this |
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| 1 | | subsection shall be held in Springfield or Chicago, at |
| 2 | | whichever location is the more convenient for the majority |
| 3 | | of persons who are parties to the hearing. |
| 4 | | (7) The State Commission shall establish uniform |
| 5 | | systems of accounts to be kept by all retail licensees |
| 6 | | having more than 4 employees, and, for this purpose, the |
| 7 | | State Commission may classify all retail licensees having |
| 8 | | more than 4 employees and establish a uniform system of |
| 9 | | accounts for each class and prescribe the manner in which |
| 10 | | such accounts shall be kept. The State Commission may also |
| 11 | | prescribe the forms of accounts to be kept by all retail |
| 12 | | licensees having more than 4 employees, including, but not |
| 13 | | limited to, accounts of earnings and expenses and any |
| 14 | | distribution, payment, or other distribution of earnings |
| 15 | | or assets, and any other forms, records, and memoranda |
| 16 | | which in the judgment of the State Commission commission |
| 17 | | may be necessary or appropriate to carry out any of the |
| 18 | | provisions of this Act, including, but not limited to, |
| 19 | | such forms, records, and memoranda as will readily and |
| 20 | | accurately disclose at all times the beneficial ownership |
| 21 | | of such retail licensed business. The accounts, forms, |
| 22 | | records, and memoranda shall be available at all |
| 23 | | reasonable times for inspection by authorized |
| 24 | | representatives of the State Commission or by any local |
| 25 | | liquor control commissioner or his or her authorized |
| 26 | | representative. The State Commission commission may, from |
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| 1 | | time to time, alter, amend, or repeal, in whole or in part, |
| 2 | | any uniform system of accounts, or the form and manner of |
| 3 | | keeping accounts. |
| 4 | | (8) In the conduct of any hearing authorized to be |
| 5 | | held by the State Commission, to appoint, at the State |
| 6 | | Commission's commission's discretion, hearing officers to |
| 7 | | conduct hearings involving complex issues or issues that |
| 8 | | will require a protracted period of time to resolve, to |
| 9 | | examine, or cause to be examined, under oath, any |
| 10 | | licensee, and to examine or cause to be examined the books |
| 11 | | and records of such licensee; to hear testimony and take |
| 12 | | proof material for its information in the discharge of its |
| 13 | | duties hereunder; to administer or cause to be |
| 14 | | administered oaths; for any such purpose to issue subpoena |
| 15 | | or subpoenas to require the attendance of witnesses and |
| 16 | | the production of books, which shall be effective in any |
| 17 | | part of this State, and to adopt rules to implement its |
| 18 | | powers under this paragraph (8). |
| 19 | | Any circuit court may, by order duly entered, require |
| 20 | | the attendance of witnesses and the production of relevant |
| 21 | | books subpoenaed by the State Commission and the court may |
| 22 | | compel obedience to its order by proceedings for contempt. |
| 23 | | (9) To investigate the administration of laws in |
| 24 | | relation to alcoholic liquors in this and other states and |
| 25 | | any foreign countries, and to recommend from time to time |
| 26 | | to the Governor and through him or her to the legislature |
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| 1 | | of this State, such amendments to this Act, if any, as it |
| 2 | | may think desirable and as will serve to further the |
| 3 | | general broad purposes contained in Section 1-2 hereof. |
| 4 | | (10) To adopt such rules and regulations consistent |
| 5 | | with the provisions of this Act which shall be necessary |
| 6 | | for the control, sale, or disposition of alcoholic liquor |
| 7 | | damaged as a result of an accident, wreck, flood, fire, or |
| 8 | | other similar occurrence. |
| 9 | | (11) To develop industry educational programs related |
| 10 | | to responsible serving and selling, particularly in the |
| 11 | | areas of overserving consumers and illegal underage |
| 12 | | purchasing and consumption of alcoholic beverages. |
| 13 | | (11.1) To license persons providing education and |
| 14 | | training to alcohol beverage sellers and servers for |
| 15 | | mandatory and non-mandatory training under the Beverage |
| 16 | | Alcohol Sellers and Servers Education and Training |
| 17 | | (BASSET) programs and to develop and administer a public |
| 18 | | awareness program in Illinois to reduce or eliminate the |
| 19 | | illegal purchase and consumption of alcoholic beverage |
| 20 | | products by persons under the age of 21. Application for a |
| 21 | | license shall be made on forms provided by the State |
| 22 | | Commission. |
| 23 | | (12) To develop and maintain a repository of license |
| 24 | | and regulatory information. |
| 25 | | (13) (Blank). |
| 26 | | (14) On or before April 30, 2008 and every 2 years |
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| 1 | | thereafter, the State Commission shall present a written |
| 2 | | report to the Governor and the General Assembly that shall |
| 3 | | be based on a study of the impact of Public Act 95-634 on |
| 4 | | the business of soliciting, selling, and shipping wine |
| 5 | | from inside and outside of this State directly to |
| 6 | | residents of this State. As part of its report, the State |
| 7 | | Commission shall provide all of the following information: |
| 8 | | (A) The amount of State excise and sales tax |
| 9 | | revenues generated. |
| 10 | | (B) The amount of licensing fees received. |
| 11 | | (C) The number of cases of wine shipped from |
| 12 | | inside and outside of this State directly to residents |
| 13 | | of this State. |
| 14 | | (D) The number of alcohol compliance operations |
| 15 | | conducted. |
| 16 | | (E) The number of winery shipper's licenses |
| 17 | | issued. |
| 18 | | (F) The number of each of the following: reported |
| 19 | | violations; cease and desist notices issued by the |
| 20 | | State Commission; notices of violations issued by the |
| 21 | | State Commission and to the Department of Revenue; and |
| 22 | | notices and complaints of violations to law |
| 23 | | enforcement officials, including, without limitation, |
| 24 | | the Illinois Attorney General and the U.S. Department |
| 25 | | of Treasury's Alcohol and Tobacco Tax and Trade |
| 26 | | Bureau. |
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| 1 | | (15) As a means to reduce the underage consumption of |
| 2 | | alcoholic liquors, the State Commission shall conduct |
| 3 | | alcohol compliance operations to investigate whether |
| 4 | | businesses that are soliciting, selling, and shipping wine |
| 5 | | from inside or outside of this State directly to residents |
| 6 | | of this State are licensed by this State or are selling or |
| 7 | | attempting to sell wine to persons under 21 years of age in |
| 8 | | violation of this Act. |
| 9 | | (16) The State Commission shall, in addition to |
| 10 | | notifying any appropriate law enforcement agency, submit |
| 11 | | notices of complaints or violations of Sections 6-29 and |
| 12 | | 6-29.1 by persons who do not hold a winery shipper's |
| 13 | | license under this Act to the Illinois Attorney General |
| 14 | | and to the U.S. Department of Treasury's Alcohol and |
| 15 | | Tobacco Tax and Trade Bureau. |
| 16 | | (17)(A) A person licensed to make wine under the laws |
| 17 | | of another state who has a winery shipper's license under |
| 18 | | this Act and annually produces less than 25,000 gallons of |
| 19 | | wine or a person who has a first-class or second-class |
| 20 | | wine manufacturer's license, a first-class or second-class |
| 21 | | wine-maker's license, or a limited wine manufacturer's |
| 22 | | license under this Act and annually produces less than |
| 23 | | 25,000 gallons of wine may make application to the State |
| 24 | | Commission for a self-distribution exemption to allow the |
| 25 | | sale of not more than 5,000 gallons of the exemption |
| 26 | | holder's wine to retail licensees per year and to sell |
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| 1 | | cider, mead, or both cider and mead to brewers, class 1 |
| 2 | | brewers, class 2 brewers, and class 3 brewers, and class 3 |
| 3 | | craft distillers that, pursuant to subsection (e) of |
| 4 | | Section 6-4 of this Act, sell beer, cider, spirits, mead, |
| 5 | | or any combination thereof to non-licensees at their |
| 6 | | breweries or distilleries. |
| 7 | | (B) In the application, which shall be sworn under |
| 8 | | penalty of perjury, such person shall state (1) the date |
| 9 | | it was established; (2) its volume of production and sales |
| 10 | | for each year since its establishment; (3) its efforts to |
| 11 | | establish distributor relationships; (4) that a |
| 12 | | self-distribution exemption is necessary to facilitate the |
| 13 | | marketing of its wine; and (5) that it will comply with the |
| 14 | | liquor and revenue laws of the United States, this State, |
| 15 | | and any other state where it is licensed. |
| 16 | | (C) The State Commission shall approve the application |
| 17 | | for a self-distribution exemption if such person: (1) is |
| 18 | | in compliance with State revenue and liquor laws; (2) is |
| 19 | | not a member of any affiliated group that produces |
| 20 | | directly or indirectly more than 25,000 gallons of wine |
| 21 | | per annum, 930,000 gallons of beer per annum, or 50,000 |
| 22 | | gallons of spirits per annum; (3) will not annually |
| 23 | | produce for sale more than 25,000 gallons of wine, 930,000 |
| 24 | | gallons of beer, or 50,000 gallons of spirits; and (4) |
| 25 | | will not annually sell more than 5,000 gallons of its wine |
| 26 | | to retail licensees. |
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| 1 | | (D) A self-distribution exemption holder shall |
| 2 | | annually certify to the State Commission its production of |
| 3 | | wine in the previous 12 months and its anticipated |
| 4 | | production and sales for the next 12 months. The State |
| 5 | | Commission may fine, suspend, or revoke a |
| 6 | | self-distribution exemption after a hearing if it finds |
| 7 | | that the exemption holder has made a material |
| 8 | | misrepresentation in its application, violated a revenue |
| 9 | | or liquor law of Illinois, exceeded production of 25,000 |
| 10 | | gallons of wine, 930,000 gallons of beer, or 50,000 |
| 11 | | gallons of spirits in any calendar year, or become part of |
| 12 | | an affiliated group producing more than 25,000 gallons of |
| 13 | | wine, 930,000 gallons of beer, or 50,000 gallons of |
| 14 | | spirits. |
| 15 | | (E) Except in hearings for violations of this Act or |
| 16 | | Public Act 95-634 or a bona fide investigation by duly |
| 17 | | sworn law enforcement officials, the State Commission, or |
| 18 | | its agents, the State Commission shall maintain the |
| 19 | | production and sales information of a self-distribution |
| 20 | | exemption holder as confidential and shall not release |
| 21 | | such information to any person. |
| 22 | | (F) The State Commission shall issue regulations |
| 23 | | governing self-distribution exemptions consistent with |
| 24 | | this Section and this Act. |
| 25 | | (G) Nothing in this paragraph (17) shall prohibit a |
| 26 | | self-distribution exemption holder from entering into or |
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| 1 | | simultaneously having a distribution agreement with a |
| 2 | | licensed Illinois distributor. |
| 3 | | (H) It is the intent of this paragraph (17) to promote |
| 4 | | and continue orderly markets. The General Assembly finds |
| 5 | | that, in order to preserve Illinois' regulatory |
| 6 | | distribution system, it is necessary to create an |
| 7 | | exception for smaller makers of wine as their wines are |
| 8 | | frequently adjusted in varietals, mixes, vintages, and |
| 9 | | taste to find and create market niches sometimes too small |
| 10 | | for distributor or importing distributor business |
| 11 | | strategies. Limited self-distribution rights will afford |
| 12 | | and allow smaller makers of wine access to the marketplace |
| 13 | | in order to develop a customer base without impairing the |
| 14 | | integrity of the 3-tier system. |
| 15 | | (18)(A) A class 1 brewer licensee, who must also be |
| 16 | | either a licensed brewer or licensed non-resident dealer |
| 17 | | and annually manufacture less than 930,000 gallons of |
| 18 | | beer, may make application to the State Commission for a |
| 19 | | self-distribution exemption to allow the sale of not more |
| 20 | | than 232,500 gallons per year of the exemption holder's |
| 21 | | beer to retail licensees and to brewers, class 1 brewers, |
| 22 | | and class 2 brewers that, pursuant to subsection (e) of |
| 23 | | Section 6-4 of this Act, sell beer, cider, mead, or any |
| 24 | | combination thereof to non-licensees at their breweries. |
| 25 | | (B) In the application, which shall be sworn under |
| 26 | | penalty of perjury, the class 1 brewer licensee shall |
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| 1 | | state (1) the date it was established; (2) its volume of |
| 2 | | beer manufactured and sold for each year since its |
| 3 | | establishment; (3) its efforts to establish distributor |
| 4 | | relationships; (4) that a self-distribution exemption is |
| 5 | | necessary to facilitate the marketing of its beer; and (5) |
| 6 | | that it will comply with the alcoholic beverage and |
| 7 | | revenue laws of the United States, this State, and any |
| 8 | | other state where it is 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 class 1 brewer licensee: (1) is in compliance with |
| 14 | | the State, revenue, and alcoholic beverage laws; (2) is |
| 15 | | not a member of any affiliated group that manufactures, |
| 16 | | directly or indirectly, more than 930,000 gallons of beer |
| 17 | | per annum, 25,000 gallons of wine per annum, or 50,000 |
| 18 | | gallons of spirits per annum; (3) shall not annually |
| 19 | | manufacture for sale more than 930,000 gallons of beer, |
| 20 | | 25,000 gallons of wine, or 50,000 gallons of spirits; (4) |
| 21 | | shall not annually sell more than 232,500 gallons of its |
| 22 | | beer to retail licensees and class 3 brewers and to |
| 23 | | brewers, class 1 brewers, and class 2 brewers that, |
| 24 | | pursuant to subsection (e) of Section 6-4 of this Act, |
| 25 | | sell beer, cider, mead, or any combination thereof to |
| 26 | | non-licensees at their breweries; and (5) has relinquished |
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| 1 | | any brew pub license held by the licensee, including any |
| 2 | | ownership interest it held in the licensed brew pub. |
| 3 | | (D) A self-distribution exemption holder shall |
| 4 | | annually certify to the State Commission its manufacture |
| 5 | | of beer during the previous 12 months and its anticipated |
| 6 | | manufacture and sales of beer for the next 12 months. The |
| 7 | | State Commission may fine, suspend, or revoke a |
| 8 | | self-distribution exemption after a hearing if it finds |
| 9 | | that the exemption holder has made a material |
| 10 | | misrepresentation in its application, violated a revenue |
| 11 | | or alcoholic beverage law of Illinois, exceeded the |
| 12 | | manufacture of 930,000 gallons of beer, 25,000 gallons of |
| 13 | | wine, or 50,000 gallons of spirits in any calendar year or |
| 14 | | became part of an affiliated group manufacturing more than |
| 15 | | 930,000 gallons of beer, 25,000 gallons of wine, or 50,000 |
| 16 | | gallons of spirits. |
| 17 | | (E) The State Commission shall issue rules and |
| 18 | | regulations governing self-distribution exemptions |
| 19 | | consistent with this Act. |
| 20 | | (F) Nothing in this paragraph (18) shall prohibit a |
| 21 | | self-distribution exemption holder from entering into or |
| 22 | | simultaneously having a distribution agreement with a |
| 23 | | licensed Illinois importing distributor or a distributor. |
| 24 | | If a self-distribution exemption holder enters into a |
| 25 | | distribution agreement and has assigned distribution |
| 26 | | rights to an importing distributor or distributor, then |
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| | SB0618 Enrolled | - 18 - | LRB104 06890 RPS 16926 b |
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| 1 | | the self-distribution exemption holder's distribution |
| 2 | | rights in the assigned territories shall cease in a |
| 3 | | reasonable time not to exceed 60 days. |
| 4 | | (G) It is the intent of this paragraph (18) to promote |
| 5 | | and continue orderly markets. The General Assembly finds |
| 6 | | that in order to preserve Illinois' regulatory |
| 7 | | distribution system, it is necessary to create an |
| 8 | | exception for smaller manufacturers in order to afford and |
| 9 | | allow such smaller manufacturers of beer access to the |
| 10 | | marketplace in order to develop a customer base without |
| 11 | | impairing the integrity of the 3-tier system. |
| 12 | | (19)(A) A class 1 craft distiller licensee or a |
| 13 | | non-resident dealer who manufactures less than 50,000 |
| 14 | | gallons of distilled spirits per year may make application |
| 15 | | to the State Commission for a self-distribution exemption |
| 16 | | to allow the sale of not more than 5,000 gallons of the |
| 17 | | exemption holder's spirits to retail licensees per year. |
| 18 | | (B) In the application, which shall be sworn under |
| 19 | | penalty of perjury, the class 1 craft distiller licensee |
| 20 | | or non-resident dealer shall state (1) the date it was |
| 21 | | established; (2) its volume of spirits manufactured and |
| 22 | | sold for each year since its establishment; (3) its |
| 23 | | efforts to establish distributor relationships; (4) that a |
| 24 | | self-distribution exemption is necessary to facilitate the |
| 25 | | marketing of its spirits; and (5) that it will comply with |
| 26 | | the alcoholic beverage and revenue laws of the United |
|
| | SB0618 Enrolled | - 19 - | LRB104 06890 RPS 16926 b |
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| 1 | | States, this State, and any other state where it is |
| 2 | | licensed. |
| 3 | | (C) Any application submitted shall be posted on the |
| 4 | | State Commission's website at least 45 days prior to |
| 5 | | action by the State Commission. The State Commission shall |
| 6 | | approve the application for a self-distribution exemption |
| 7 | | if the applicant: (1) is in compliance with State revenue |
| 8 | | and alcoholic beverage laws; (2) is not a member of any |
| 9 | | affiliated group that produces more than 50,000 gallons of |
| 10 | | spirits per annum, 930,000 gallons of beer per annum, or |
| 11 | | 25,000 gallons of wine per annum; (3) does not annually |
| 12 | | manufacture for sale more than 50,000 gallons of spirits, |
| 13 | | 930,000 gallons of beer, or 25,000 gallons of wine; and |
| 14 | | (4) does not annually sell more than 5,000 gallons of its |
| 15 | | spirits to retail licensees. |
| 16 | | (D) A self-distribution exemption holder shall |
| 17 | | annually certify to the State Commission its manufacture |
| 18 | | of spirits during the previous 12 months and its |
| 19 | | anticipated manufacture and sales of spirits for the next |
| 20 | | 12 months. The State Commission may fine, suspend, or |
| 21 | | revoke a self-distribution exemption after a hearing if it |
| 22 | | finds that the exemption holder has made a material |
| 23 | | misrepresentation in its application, violated a revenue |
| 24 | | or alcoholic beverage law of Illinois, exceeded the |
| 25 | | manufacture of 50,000 gallons of spirits, 930,000 gallons |
| 26 | | of beer, or 25,000 gallons of wine in any calendar year, or |
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| | SB0618 Enrolled | - 20 - | LRB104 06890 RPS 16926 b |
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| 1 | | has become part of an affiliated group manufacturing more |
| 2 | | than 50,000 gallons of spirits, 930,000 gallons of beer, |
| 3 | | or 25,000 gallons of wine. |
| 4 | | (E) The State Commission shall adopt rules governing |
| 5 | | self-distribution exemptions consistent with this Act. |
| 6 | | (F) Nothing in this paragraph (19) 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 | | (G) It is the intent of this paragraph (19) 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 spirits access to the |
| 16 | | marketplace in order to develop a customer base without |
| 17 | | impairing the integrity of the 3-tier system. |
| 18 | | (20)(A) A class 3 brewer licensee who must manufacture |
| 19 | | less than 465,000 gallons of beer in the aggregate and not |
| 20 | | more than 155,000 gallons at any single brewery premises |
| 21 | | may make application to the State Commission for a |
| 22 | | self-distribution exemption to allow the sale of not more |
| 23 | | than 6,200 gallons of beer from each in-state or |
| 24 | | out-of-state class 3 brewery premises, which shall not |
| 25 | | exceed 18,600 gallons annually in the aggregate, that is |
| 26 | | manufactured at a wholly owned class 3 brewer's in-state |
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| | SB0618 Enrolled | - 21 - | LRB104 06890 RPS 16926 b |
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| 1 | | or out-of-state licensed premises to retail licensees and |
| 2 | | class 3 brewers and to brewers, class 1 brewers, class 2 |
| 3 | | brewers that, pursuant to subsection (e) of Section 6-4, |
| 4 | | sell beer, cider, or both beer and cider to non-licensees |
| 5 | | at their licensed breweries. |
| 6 | | (B) In the application, which shall be sworn under |
| 7 | | penalty of perjury, the class 3 brewer licensee shall |
| 8 | | state: |
| 9 | | (1) the date it was established; |
| 10 | | (2) its volume of beer manufactured and sold for |
| 11 | | each year since its establishment; |
| 12 | | (3) its efforts to establish distributor |
| 13 | | relationships; |
| 14 | | (4) that a self-distribution exemption is |
| 15 | | necessary to facilitate the marketing of its beer; and |
| 16 | | (5) that it will comply with the alcoholic |
| 17 | | beverage and revenue laws of the United States, this |
| 18 | | State, and any other state where it is licensed. |
| 19 | | (C) Any application submitted shall be posted on the |
| 20 | | State Commission's website at least 45 days before action |
| 21 | | by the State Commission. The State Commission shall |
| 22 | | approve the application for a self-distribution exemption |
| 23 | | if the class 3 brewer licensee: (1) is in compliance with |
| 24 | | the State, revenue, and alcoholic beverage laws; (2) is |
| 25 | | not a member of any affiliated group that manufacturers, |
| 26 | | directly or indirectly, more than 465,000 gallons of beer |
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| | SB0618 Enrolled | - 22 - | LRB104 06890 RPS 16926 b |
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| 1 | | per annum; (3) shall not annually manufacture for sale |
| 2 | | more than 465,000 gallons of beer or more than 155,000 |
| 3 | | gallons at any single brewery premises; and (4) shall not |
| 4 | | annually sell more than 6,200 gallons of beer from each |
| 5 | | in-state or out-of-state class 3 brewery premises, and |
| 6 | | shall not exceed 18,600 gallons annually in the aggregate, |
| 7 | | to retail licensees and class 3 brewers and to brewers, |
| 8 | | class 1 brewers, and class 2 brewers that, pursuant to |
| 9 | | subsection (e) of Section 6-4 of this Act, sell beer, |
| 10 | | cider, or both beer and cider to non-licensees at their |
| 11 | | breweries. |
| 12 | | (D) A self-distribution exemption holder shall |
| 13 | | annually certify to the State Commission its manufacture |
| 14 | | of beer during the previous 12 months and its anticipated |
| 15 | | manufacture and sales of beer for the next 12 months. The |
| 16 | | State Commission may fine, suspend, or revoke a |
| 17 | | self-distribution exemption after a hearing if it finds |
| 18 | | that the exemption holder has made a material |
| 19 | | misrepresentation in its application, violated a revenue |
| 20 | | or alcoholic beverage law of Illinois, exceeded the |
| 21 | | manufacture of 465,000 gallons of beer in any calendar |
| 22 | | year or became part of an affiliated group manufacturing |
| 23 | | more than 465,000 gallons of beer, or exceeded the sale to |
| 24 | | retail licensees, brewers, class 1 brewers, class 2 |
| 25 | | brewers, and class 3 brewers of 6,200 gallons per brewery |
| 26 | | location or 18,600 gallons in the aggregate. |
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| | SB0618 Enrolled | - 23 - | LRB104 06890 RPS 16926 b |
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| 1 | | (E) The State Commission may adopt rules governing |
| 2 | | self-distribution exemptions consistent with this Act. |
| 3 | | (F) Nothing in this paragraph shall prohibit a |
| 4 | | self-distribution exemption holder from entering into or |
| 5 | | simultaneously having a distribution agreement with a |
| 6 | | licensed Illinois importing distributor or a distributor. |
| 7 | | If a self-distribution exemption holder enters into a |
| 8 | | distribution agreement and has assigned distribution |
| 9 | | rights to an importing distributor or distributor, then |
| 10 | | the self-distribution exemption holder's distribution |
| 11 | | rights in the assigned territories shall cease in a |
| 12 | | reasonable time not to exceed 60 days. |
| 13 | | (G) It is the intent of this paragraph to promote and |
| 14 | | continue orderly markets. The General Assembly finds that |
| 15 | | in order to preserve Illinois' regulatory distribution |
| 16 | | system, it is necessary to create an exception for smaller |
| 17 | | manufacturers in order to afford and allow such smaller |
| 18 | | manufacturers of beer access to the marketplace in order |
| 19 | | to develop a customer base without impairing the integrity |
| 20 | | of the 3-tier system. |
| 21 | | (21)(A) A class 3 craft distiller licensee who |
| 22 | | manufactures less than 100,000 gallons of spirits in the |
| 23 | | aggregate may make application to the State Commission for |
| 24 | | a self-distribution exemption to allow the sale of not |
| 25 | | more than 5,000 gallons of the exemption holder's spirits |
| 26 | | per year that are manufactured at a wholly owned class 3 |
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| | SB0618 Enrolled | - 24 - | LRB104 06890 RPS 16926 b |
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| 1 | | craft distiller's in-state or out-of-state licensed |
| 2 | | premises to retail licensees and class 3 brewers and to |
| 3 | | class 3 craft distillers that, pursuant to subsection (e) |
| 4 | | of Section 6-4, sell beer, cider, spirits, or any |
| 5 | | combination thereof to non-licensees at their licensed |
| 6 | | distilleries. |
| 7 | | (B) In the application, which shall be sworn under |
| 8 | | penalty of perjury, the class 3 craft distiller licensee |
| 9 | | shall state: |
| 10 | | (1) the date it was established; |
| 11 | | (2) its volume of spirits manufactured and sold |
| 12 | | for each year since its establishment; |
| 13 | | (3) its efforts to establish distributor |
| 14 | | relationships; |
| 15 | | (4) that a self-distribution exemption is |
| 16 | | necessary to facilitate the marketing of its spirits; |
| 17 | | and |
| 18 | | (5) that it will comply with the alcoholic |
| 19 | | beverage and revenue laws of the United States, this |
| 20 | | State, and any other state where it is licensed. |
| 21 | | (C) Any application submitted shall be posted on the |
| 22 | | State Commission's website at least 45 days before action |
| 23 | | by the State Commission. The State Commission shall |
| 24 | | approve the application for a self-distribution exemption |
| 25 | | if the class 3 craft distiller licensee: |
| 26 | | (1) is in compliance with the State, revenue, and |
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| | SB0618 Enrolled | - 25 - | LRB104 06890 RPS 16926 b |
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| 1 | | alcoholic beverage laws; |
| 2 | | (2) is not a member of any affiliated group that |
| 3 | | manufacturers, directly or indirectly, more than |
| 4 | | 100,000 gallons of spirits per annum; |
| 5 | | (3) shall not annually manufacture for sale more |
| 6 | | than 100,000 gallons of spirits; and |
| 7 | | (4) does not sell more than 5,000 gallons of its |
| 8 | | spirits per year to retail licensees and class 3 |
| 9 | | brewers and to class 3 craft distillers that, pursuant |
| 10 | | to subsection (e) of Section 6-4, sell beer, cider, |
| 11 | | spirits, or any combination thereof to non-licensees |
| 12 | | at their licensed distilleries. |
| 13 | | (D) A self-distribution exemption holder shall |
| 14 | | annually certify to the State Commission its manufacture |
| 15 | | of spirits during the previous 12 months and its |
| 16 | | anticipated manufacture and sales of spirits for the next |
| 17 | | 12 months. The State Commission may fine, suspend, or |
| 18 | | revoke a self-distribution exemption after a hearing if it |
| 19 | | finds that the exemption holder has made a material |
| 20 | | misrepresentation in its application, violated a revenue |
| 21 | | or alcoholic beverage law of Illinois, exceeded the |
| 22 | | manufacture of 100,000 gallons of spirits in any calendar |
| 23 | | year, or became part of an affiliated group manufacturing |
| 24 | | more than 100,000 gallons of spirits. |
| 25 | | (E) The State Commission may adopt rules governing |
| 26 | | self-distribution exemptions consistent with this Act. |
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| | SB0618 Enrolled | - 26 - | LRB104 06890 RPS 16926 b |
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| 1 | | (F) Nothing in this paragraph shall prohibit a |
| 2 | | self-distribution exemption holder from entering into or |
| 3 | | simultaneously having a distribution agreement with a |
| 4 | | licensed Illinois importing distributor or a distributor. |
| 5 | | (G) It is the intent of this paragraph to promote and |
| 6 | | continue orderly markets. The General Assembly finds that, |
| 7 | | in order to preserve Illinois' regulatory distribution |
| 8 | | system, it is necessary to create an exception for smaller |
| 9 | | manufacturers in order to afford and allow such smaller |
| 10 | | manufacturers of spirits access to the marketplace in |
| 11 | | order to develop a customer base without impairing the |
| 12 | | integrity of the 3-tier system. |
| 13 | | (b) On or before April 30, 1999, the Commission shall |
| 14 | | present a written report to the Governor and the General |
| 15 | | Assembly that shall be based on a study of the impact of Public |
| 16 | | Act 90-739 on the business of soliciting, selling, and |
| 17 | | shipping alcoholic liquor from outside of this State directly |
| 18 | | to residents of this State. |
| 19 | | As part of its report, the Commission shall provide the |
| 20 | | following information: |
| 21 | | (i) the amount of State excise and sales tax revenues |
| 22 | | generated as a result of Public Act 90-739; |
| 23 | | (ii) the amount of licensing fees received as a result |
| 24 | | of Public Act 90-739; |
| 25 | | (iii) the number of reported violations, the number of |
| 26 | | cease and desist notices issued by the Commission, the |
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| | SB0618 Enrolled | - 27 - | LRB104 06890 RPS 16926 b |
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| 1 | | number of notices of violations issued to the Department |
| 2 | | of Revenue, and the number of notices and complaints of |
| 3 | | violations to law enforcement officials. |
| 4 | | (Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19; |
| 5 | | 101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff. |
| 6 | | 8-20-21; 102-813, eff. 5-13-22; revised 7-17-25.) |
| 7 | | (235 ILCS 5/5-1) (from Ch. 43, par. 115) |
| 8 | | Sec. 5-1. Licenses issued by the Illinois Liquor Control |
| 9 | | Commission shall be of the following classes: |
| 10 | | (a) Manufacturer's license - Class 1. Distiller, Class 2. |
| 11 | | Rectifier, Class 3. Brewer, Class 4. First Class Wine |
| 12 | | Manufacturer, Class 5. Second Class Wine Manufacturer, Class |
| 13 | | 6. First Class Winemaker, Class 7. Second Class Winemaker, |
| 14 | | Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller, |
| 15 | | Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft |
| 16 | | Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer, |
| 17 | | Class 14. Class 3 Brewer, Class 15. Class 3 Craft Distiller, |
| 18 | | (b) Distributor's license, |
| 19 | | (c) Importing Distributor's license, |
| 20 | | (d) Retailer's license, |
| 21 | | (e) Special Event Retailer's license (not-for-profit), |
| 22 | | (f) Railroad license, |
| 23 | | (g) Boat license, |
| 24 | | (h) Non-Beverage User's license, |
| 25 | | (i) Wine-maker's premises license, |
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| | SB0618 Enrolled | - 28 - | LRB104 06890 RPS 16926 b |
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| 1 | | (j) Airplane license, |
| 2 | | (k) Foreign importer's license, |
| 3 | | (l) Broker's license, |
| 4 | | (m) Non-resident dealer's license, |
| 5 | | (n) Brew Pub license, |
| 6 | | (o) Auction liquor license, |
| 7 | | (p) Caterer retailer license, |
| 8 | | (q) Special use permit license, |
| 9 | | (r) Winery shipper's license, |
| 10 | | (s) Craft distiller tasting permit, |
| 11 | | (t) Brewer warehouse permit, |
| 12 | | (u) Distilling pub license, |
| 13 | | (v) Craft distiller warehouse permit, |
| 14 | | (w) Beer showcase permit, . |
| 15 | | (x) Spirits showcase permit. |
| 16 | | No person, firm, partnership, corporation, or other legal |
| 17 | | business entity that is engaged in the manufacturing of wine |
| 18 | | may concurrently obtain and hold a wine-maker's license and a |
| 19 | | wine manufacturer's license. |
| 20 | | (a) A manufacturer's license shall allow the manufacture, |
| 21 | | importation in bulk, storage, distribution and sale of |
| 22 | | alcoholic liquor to persons without the State, as may be |
| 23 | | permitted by law, and to licensees in this State as follows: |
| 24 | | Class 1. A Distiller may make sales and deliveries of |
| 25 | | alcoholic liquor to distillers, rectifiers, importing |
| 26 | | distributors, distributors, and non-beverage users and to no |
|
| | SB0618 Enrolled | - 29 - | LRB104 06890 RPS 16926 b |
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| 1 | | other licensees. |
| 2 | | Class 2. A Rectifier, who is not a distiller, as defined |
| 3 | | herein, may make sales and deliveries of alcoholic liquor to |
| 4 | | rectifiers, importing distributors, distributors, retailers, |
| 5 | | and non-beverage users and to no other licensees. |
| 6 | | Class 3. A Brewer may make sales and deliveries of beer to |
| 7 | | importing distributors and distributors and may make sales as |
| 8 | | authorized under subsection (e) of Section 6-4 of this Act, |
| 9 | | including any alcoholic liquor that subsection (e) of Section |
| 10 | | 6-4 authorizes a brewer to sell in its original package only to |
| 11 | | a non-licensee for pick-up by a non-licensee either within the |
| 12 | | interior of the brewery premises or at outside of the brewery |
| 13 | | premises at a curb-side or parking lot adjacent to the brewery |
| 14 | | premises, subject to any local ordinance. |
| 15 | | Class 4. A first class wine-manufacturer may make sales |
| 16 | | and deliveries of up to 50,000 gallons of wine to |
| 17 | | manufacturers, importing distributors and distributors, and to |
| 18 | | no other licensees. If a first-class wine-manufacturer |
| 19 | | manufactures beer, it shall also obtain and shall only be |
| 20 | | eligible for, in addition to any current license, a class 1 |
| 21 | | brewer license, shall not manufacture more than 930,000 |
| 22 | | gallons of beer per year, and shall not be a member of or |
| 23 | | affiliated with, directly or indirectly, a manufacturer that |
| 24 | | produces more than 930,000 gallons of beer per year. If the |
| 25 | | first-class wine-manufacturer manufactures spirits, it shall |
| 26 | | also obtain and shall only be eligible for, in addition to any |
|
| | SB0618 Enrolled | - 30 - | LRB104 06890 RPS 16926 b |
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| 1 | | current license, a class 1 craft distiller license, shall not |
| 2 | | manufacture more than 50,000 gallons of spirits per year, and |
| 3 | | shall not be a member of or affiliated with, directly or |
| 4 | | indirectly, a manufacturer that produces more than 50,000 |
| 5 | | gallons of spirits per year. A first-class wine-manufacturer |
| 6 | | shall be permitted to sell wine manufactured at the |
| 7 | | first-class wine-manufacturer premises to non-licensees. |
| 8 | | Class 5. A second class wine Wine manufacturer may make |
| 9 | | sales and deliveries of more than 50,000 gallons of wine to |
| 10 | | manufacturers, importing distributors and distributors and to |
| 11 | | no other licensees. |
| 12 | | Class 6. A first-class wine-maker's license shall allow |
| 13 | | the manufacture of up to 50,000 gallons of wine per year, and |
| 14 | | the storage and sale of such wine to distributors in the State |
| 15 | | and to persons without the State, as may be permitted by law. A |
| 16 | | person who, prior to June 1, 2008 (the effective date of Public |
| 17 | | Act 95-634), is a holder of a first-class wine-maker's license |
| 18 | | and annually produces more than 25,000 gallons of its own wine |
| 19 | | and who distributes its wine to licensed retailers shall cease |
| 20 | | this practice on or before July 1, 2008 in compliance with |
| 21 | | Public Act 95-634. If a first-class wine-maker manufactures |
| 22 | | beer, it shall also obtain and shall only be eligible for, in |
| 23 | | addition to any current license, a class 1 brewer license, |
| 24 | | shall not manufacture more than 930,000 gallons of beer per |
| 25 | | year, and shall not be a member of or affiliated with, directly |
| 26 | | or indirectly, a manufacturer that produces more than 930,000 |
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| | SB0618 Enrolled | - 31 - | LRB104 06890 RPS 16926 b |
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| 1 | | gallons of beer per year. If the first-class wine-maker |
| 2 | | manufactures spirits, it shall also obtain and shall only be |
| 3 | | eligible for, in addition to any current license, a class 1 |
| 4 | | craft distiller license, shall not manufacture more than |
| 5 | | 50,000 gallons of spirits per year, and shall not be a member |
| 6 | | of or affiliated with, directly or indirectly, a manufacturer |
| 7 | | that produces more than 50,000 gallons of spirits per year. A |
| 8 | | first-class wine-maker holding a class 1 brewer license or a |
| 9 | | class 1 craft distiller license shall not be eligible for a |
| 10 | | wine-maker's premises license but shall be permitted to sell |
| 11 | | wine manufactured at the first-class wine-maker premises to |
| 12 | | non-licensees. |
| 13 | | Class 7. A second-class wine-maker's license shall allow |
| 14 | | the manufacture of up to 150,000 gallons of wine per year, and |
| 15 | | the storage and sale of such wine to distributors in this State |
| 16 | | and to persons without the State, as may be permitted by law. A |
| 17 | | person who, prior to June 1, 2008 (the effective date of Public |
| 18 | | Act 95-634), is a holder of a second-class wine-maker's |
| 19 | | license and annually produces more than 25,000 gallons of its |
| 20 | | own wine and who distributes its wine to licensed retailers |
| 21 | | shall cease this practice on or before July 1, 2008 in |
| 22 | | compliance with Public Act 95-634. If a second-class |
| 23 | | wine-maker manufactures beer, it shall also obtain and shall |
| 24 | | only be eligible for, in addition to any current license, a |
| 25 | | class 2 brewer license, shall not manufacture more than |
| 26 | | 3,720,000 gallons of beer per year, and shall not be a member |
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| | SB0618 Enrolled | - 32 - | LRB104 06890 RPS 16926 b |
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| 1 | | of or affiliated with, directly or indirectly, a manufacturer |
| 2 | | that produces more than 3,720,000 gallons of beer per year. If |
| 3 | | a second-class wine-maker manufactures spirits, it shall also |
| 4 | | obtain and shall only be eligible for, in addition to any |
| 5 | | current license, a class 2 craft distiller license, shall not |
| 6 | | manufacture more than 100,000 gallons of spirits per year, and |
| 7 | | shall not be a member of or affiliated with, directly or |
| 8 | | indirectly, a manufacturer that produces more than 100,000 |
| 9 | | gallons of spirits per year. |
| 10 | | Class 8. A limited wine-manufacturer may make sales and |
| 11 | | deliveries not to exceed 40,000 gallons of wine per year to |
| 12 | | distributors, and to non-licensees in accordance with the |
| 13 | | provisions of this Act. |
| 14 | | Class 9. A craft distiller license, which may only be held |
| 15 | | by a class 1 craft distiller licensee or class 2 craft |
| 16 | | distiller licensee but not held by both a class 1 craft |
| 17 | | distiller licensee and a class 2 craft distiller licensee, |
| 18 | | shall grant all rights conveyed by either: (i) a class 1 craft |
| 19 | | distiller license if the craft distiller holds a class 1 craft |
| 20 | | distiller license; or (ii) a class 2 craft distiller licensee |
| 21 | | if the craft distiller holds a class 2 craft distiller |
| 22 | | license. |
| 23 | | Class 10. A class 1 craft distiller license, which may |
| 24 | | only be issued to a licensed craft distiller or licensed |
| 25 | | non-resident dealer, shall allow the manufacture of up to |
| 26 | | 50,000 gallons of spirits per year provided that the class 1 |
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| | SB0618 Enrolled | - 33 - | LRB104 06890 RPS 16926 b |
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| 1 | | craft distiller licensee does not manufacture more than a |
| 2 | | combined 50,000 gallons of spirits per year and is not a member |
| 3 | | of or affiliated with, directly or indirectly, a manufacturer |
| 4 | | that produces more than 50,000 gallons of spirits per year. If |
| 5 | | a class 1 craft distiller manufactures beer, it shall also |
| 6 | | obtain and shall only be eligible for, in addition to any |
| 7 | | current license, a class 1 brewer license, shall not |
| 8 | | manufacture more than 930,000 gallons of beer per year, and |
| 9 | | shall not be a member of or affiliated with, directly or |
| 10 | | indirectly, a manufacturer that produces more than 930,000 |
| 11 | | gallons of beer per year. If a class 1 craft distiller |
| 12 | | manufactures wine, it shall also obtain and shall only be |
| 13 | | eligible for, in addition to any current license, a |
| 14 | | first-class wine-manufacturer license or a first-class |
| 15 | | wine-maker's license, shall not manufacture more than 50,000 |
| 16 | | gallons of wine per year, and shall not be a member of or |
| 17 | | affiliated with, directly or indirectly, a manufacturer that |
| 18 | | produces more than 50,000 gallons of wine per year. A class 1 |
| 19 | | craft distiller licensee may make sales and deliveries to |
| 20 | | importing distributors and distributors and to retail |
| 21 | | licensees in accordance with the conditions set forth in |
| 22 | | paragraph (19) of subsection (a) of Section 3-12 of this Act. |
| 23 | | However, the aggregate amount of spirits sold to non-licensees |
| 24 | | and sold or delivered to retail licensees may not exceed 5,000 |
| 25 | | gallons per year. |
| 26 | | A class 1 craft distiller licensee may sell up to 5,000 |
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| | SB0618 Enrolled | - 34 - | LRB104 06890 RPS 16926 b |
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| 1 | | gallons of such spirits to non-licensees to the extent |
| 2 | | permitted by any exemption approved by the State Commission |
| 3 | | pursuant to Section 6-4 of this Act. A class 1 craft distiller |
| 4 | | license holder may store such spirits at a non-contiguous |
| 5 | | licensed location, but at no time shall a class 1 craft |
| 6 | | distiller license holder directly or indirectly produce in the |
| 7 | | aggregate more than 50,000 gallons of spirits per year. |
| 8 | | A class 1 craft distiller licensee may hold more than one |
| 9 | | class 1 craft distiller's license. However, a class 1 craft |
| 10 | | distiller that holds more than one class 1 craft distiller |
| 11 | | license shall not manufacture, in the aggregate, more than |
| 12 | | 50,000 gallons of spirits by distillation per year and shall |
| 13 | | not sell, in the aggregate, more than 5,000 gallons of such |
| 14 | | spirits to non-licensees in accordance with an exemption |
| 15 | | approved by the State Commission pursuant to Section 6-4 of |
| 16 | | this Act. |
| 17 | | Class 11. A class 2 craft distiller license, which may |
| 18 | | only be issued to a licensed craft distiller or licensed |
| 19 | | non-resident dealer, shall allow the manufacture of up to |
| 20 | | 100,000 gallons of spirits per year provided that the class 2 |
| 21 | | craft distiller licensee does not manufacture more than a |
| 22 | | combined 100,000 gallons of spirits per year and is not a |
| 23 | | member of or affiliated with, directly or indirectly, a |
| 24 | | manufacturer that produces more than 100,000 gallons of |
| 25 | | spirits per year. If a class 2 craft distiller manufactures |
| 26 | | beer, it shall also obtain and shall only be eligible for, in |
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| | SB0618 Enrolled | - 35 - | LRB104 06890 RPS 16926 b |
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| 1 | | addition to any current license, a class 2 brewer license, |
| 2 | | shall not manufacture more than 3,720,000 gallons of beer per |
| 3 | | year, and shall not be a member of or affiliated with, directly |
| 4 | | or indirectly, a manufacturer that produces more than |
| 5 | | 3,720,000 gallons of beer per year. If a class 2 craft |
| 6 | | distiller manufactures wine, it shall also obtain and shall |
| 7 | | only be eligible for, in addition to any current license, a |
| 8 | | second-class wine-maker's license, shall not manufacture more |
| 9 | | than 150,000 gallons of wine per year, and shall not be a |
| 10 | | member of or affiliated with, directly or indirectly, a |
| 11 | | manufacturer that produces more than 150,000 gallons of wine |
| 12 | | per year. A class 2 craft distiller licensee may make sales and |
| 13 | | deliveries to importing distributors and distributors, but |
| 14 | | shall not make sales or deliveries to any other licensee. If |
| 15 | | the State Commission provides prior approval, a class 2 craft |
| 16 | | distiller licensee may annually transfer up to 100,000 gallons |
| 17 | | of spirits manufactured by that class 2 craft distiller |
| 18 | | licensee to the premises of a licensed class 2 craft distiller |
| 19 | | wholly owned and operated by the same licensee. A class 2 craft |
| 20 | | distiller may transfer spirits to a distilling pub wholly |
| 21 | | owned and operated by the class 2 craft distiller subject to |
| 22 | | the following limitations and restrictions: (i) the transfer |
| 23 | | shall not annually exceed more than 5,000 gallons; (ii) the |
| 24 | | annual amount transferred shall reduce the distilling pub's |
| 25 | | annual permitted production limit; (iii) all spirits |
| 26 | | transferred shall be subject to Article VIII of this Act; (iv) |
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| | SB0618 Enrolled | - 36 - | LRB104 06890 RPS 16926 b |
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| 1 | | a written record shall be maintained by the distiller and |
| 2 | | distilling pub specifying the amount, date of delivery, and |
| 3 | | receipt of the product by the distilling pub; and (v) the |
| 4 | | distilling pub shall be located no farther than 80 miles from |
| 5 | | the class 2 craft distiller's licensed location. |
| 6 | | A class 2 craft distiller shall, prior to transferring |
| 7 | | spirits to a distilling pub wholly owned by the class 2 craft |
| 8 | | distiller, furnish a written notice to the State Commission of |
| 9 | | intent to transfer spirits setting forth the name and address |
| 10 | | of the distilling pub and shall annually submit to the State |
| 11 | | Commission a verified report identifying the total gallons of |
| 12 | | spirits transferred to the distilling pub wholly owned by the |
| 13 | | class 2 craft distiller. |
| 14 | | A class 2 craft distiller license holder may store such |
| 15 | | spirits at a non-contiguous licensed location, but at no time |
| 16 | | shall a class 2 craft distiller license holder directly or |
| 17 | | indirectly produce in the aggregate more than 100,000 gallons |
| 18 | | of spirits per year. |
| 19 | | Class 12. A class 1 brewer license, which may only be |
| 20 | | issued to a licensed brewer or licensed non-resident dealer, |
| 21 | | shall allow the manufacture of up to 930,000 gallons of beer |
| 22 | | per year provided that the class 1 brewer licensee does not |
| 23 | | manufacture more than a combined 930,000 gallons of beer per |
| 24 | | year and is not a member of or affiliated with, directly or |
| 25 | | indirectly, a manufacturer that produces more than 930,000 |
| 26 | | gallons of beer per year. If a class 1 brewer manufactures |
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| | SB0618 Enrolled | - 37 - | LRB104 06890 RPS 16926 b |
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| 1 | | spirits, it shall also obtain and shall only be eligible for, |
| 2 | | in addition to any current license, a class 1 craft distiller |
| 3 | | license, shall not manufacture more than 50,000 gallons of |
| 4 | | spirits per year, and shall not be a member of or affiliated |
| 5 | | with, directly or indirectly, a manufacturer that produces |
| 6 | | more than 50,000 gallons of spirits per year. If a class 1 |
| 7 | | craft brewer manufactures wine, it shall also obtain and shall |
| 8 | | only be eligible for, in addition to any current license, a |
| 9 | | first-class wine-manufacturer license or a first-class |
| 10 | | wine-maker's license, shall not manufacture more than 50,000 |
| 11 | | gallons of wine per year, and shall not be a member of or |
| 12 | | affiliated with, directly or indirectly, a manufacturer that |
| 13 | | produces more than 50,000 gallons of wine per year. A class 1 |
| 14 | | brewer licensee may make sales and deliveries to importing |
| 15 | | distributors and distributors and to retail licensees in |
| 16 | | accordance with the conditions set forth in paragraph (18) of |
| 17 | | subsection (a) of Section 3-12 of this Act. If the State |
| 18 | | Commission provides prior approval, a class 1 brewer may |
| 19 | | annually transfer up to 930,000 gallons of beer manufactured |
| 20 | | by that class 1 brewer to the premises of a licensed class 1 |
| 21 | | brewer wholly owned and operated by the same licensee. |
| 22 | | Class 13. A class 2 brewer license, which may only be |
| 23 | | issued to a licensed brewer or licensed non-resident dealer, |
| 24 | | shall allow the manufacture of up to 3,720,000 gallons of beer |
| 25 | | per year provided that the class 2 brewer licensee does not |
| 26 | | manufacture more than a combined 3,720,000 gallons of beer per |
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| | SB0618 Enrolled | - 38 - | LRB104 06890 RPS 16926 b |
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| 1 | | year and is not a member of or affiliated with, directly or |
| 2 | | indirectly, a manufacturer that produces more than 3,720,000 |
| 3 | | gallons of beer per year. If a class 2 brewer manufactures |
| 4 | | spirits, it shall also obtain and shall only be eligible for, |
| 5 | | in addition to any current license, a class 2 craft distiller |
| 6 | | license, shall not manufacture more than 100,000 gallons of |
| 7 | | spirits per year, and shall not be a member of or affiliated |
| 8 | | with, directly or indirectly, a manufacturer that produces |
| 9 | | more than 100,000 gallons of spirits per year. If a class 2 |
| 10 | | craft distiller manufactures wine, it shall also obtain and |
| 11 | | shall only be eligible for, in addition to any current |
| 12 | | license, a second-class wine-maker's license, shall not |
| 13 | | manufacture more than 150,000 gallons of wine per year, and |
| 14 | | shall not be a member of or affiliated with, directly or |
| 15 | | indirectly, a manufacturer that produces more than 150,000 |
| 16 | | gallons of wine a year. A class 2 brewer licensee may make |
| 17 | | sales and deliveries to importing distributors and |
| 18 | | distributors, but shall not make sales or deliveries to any |
| 19 | | other licensee. If the State Commission provides prior |
| 20 | | approval, a class 2 brewer licensee may annually transfer up |
| 21 | | to 3,720,000 gallons of beer manufactured by that class 2 |
| 22 | | brewer licensee to the premises of a licensed class 2 brewer |
| 23 | | wholly owned and operated by the same licensee. |
| 24 | | A class 2 brewer may transfer beer to a brew pub wholly |
| 25 | | owned and operated by the class 2 brewer subject to the |
| 26 | | following limitations and restrictions: (i) the transfer shall |
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| | SB0618 Enrolled | - 39 - | LRB104 06890 RPS 16926 b |
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| 1 | | not annually exceed more than 31,000 gallons; (ii) the annual |
| 2 | | amount transferred shall reduce the brew pub's annual |
| 3 | | permitted production limit; (iii) all beer transferred shall |
| 4 | | be subject to Article VIII of this Act; (iv) a written record |
| 5 | | shall be maintained by the brewer and brew pub specifying the |
| 6 | | amount, date of delivery, and receipt of the product by the |
| 7 | | brew pub; and (v) the brew pub shall be located no farther than |
| 8 | | 80 miles from the class 2 brewer's licensed location. |
| 9 | | A class 2 brewer shall, prior to transferring beer to a |
| 10 | | brew pub wholly owned by the class 2 brewer, furnish a written |
| 11 | | notice to the State Commission of intent to transfer beer |
| 12 | | setting forth the name and address of the brew pub and shall |
| 13 | | annually submit to the State Commission a verified report |
| 14 | | identifying the total gallons of beer transferred to the brew |
| 15 | | pub wholly owned by the class 2 brewer. |
| 16 | | Class 14. A class 3 brewer license, which may be issued to |
| 17 | | a brewer or a non-resident dealer, shall allow the manufacture |
| 18 | | of no more than 465,000 gallons of beer per year and no more |
| 19 | | than 155,000 gallons at a single brewery premises, and shall |
| 20 | | allow the sale of no more than 6,200 gallons of beer from each |
| 21 | | in-state or out-of-state class 3 brewery premises, or 18,600 |
| 22 | | gallons in the aggregate, to retail licensees, class 1 |
| 23 | | brewers, class 2 brewers, and class 3 brewers as long as the |
| 24 | | class 3 brewer licensee does not manufacture more than a |
| 25 | | combined 465,000 gallons of beer per year and is not a member |
| 26 | | of or affiliated with, directly or indirectly, a manufacturer |
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| | SB0618 Enrolled | - 40 - | LRB104 06890 RPS 16926 b |
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| 1 | | that produces more than 465,000 gallons of beer per year to |
| 2 | | make sales to importing distributors, distributors, retail |
| 3 | | licensees, brewers, class 1 brewers, class 2 brewers, and |
| 4 | | class 3 brewers in accordance with the conditions set forth in |
| 5 | | paragraph (20) of subsection (a) of Section 3-12. If the State |
| 6 | | Commission provides prior approval, a class 3 brewer may |
| 7 | | annually transfer up to 155,000 gallons of beer manufactured |
| 8 | | by that class 3 brewer to the premises of a licensed class 3 |
| 9 | | brewer wholly owned and operated by the same licensee. A class |
| 10 | | 3 brewer shall manufacture beer at the brewer's class 3 |
| 11 | | designated licensed premises, and may sell beer as otherwise |
| 12 | | provided in this Act. |
| 13 | | Class 15. A class 3 craft distiller license, which may be |
| 14 | | issued to a distiller or a non-resident dealer, shall allow |
| 15 | | the manufacture of no more than 100,000 gallons of spirits per |
| 16 | | year and shall allow the sale of spirits from the class 3 craft |
| 17 | | distiller's in-state or out-of-state class 3 craft distillery |
| 18 | | premises to retail licensees, class 3 brewers, and class 3 |
| 19 | | craft distillers as long as the class 3 craft distiller |
| 20 | | licensee does not manufacture more than a combined 100,000 |
| 21 | | gallons of spirits per year and is not a member of or |
| 22 | | affiliated with, directly or indirectly, a manufacturer that |
| 23 | | produces more than 100,000 gallons of spirits per year and to |
| 24 | | make sales to importing distributors, distributors, retail |
| 25 | | licensees, class 3 brewers, and class 3 craft distillers in |
| 26 | | accordance with the conditions set forth in paragraph (21) of |
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| | SB0618 Enrolled | - 41 - | LRB104 06890 RPS 16926 b |
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| 1 | | subsection (a) of Section 3-12. If the State Commission |
| 2 | | provides prior approval, a class 3 craft distiller may |
| 3 | | annually transfer up to 2,500 gallons of spirits manufactured |
| 4 | | by that class 3 craft distiller to the premises of a licensed |
| 5 | | class 3 craft distiller wholly owned and operated by the same |
| 6 | | licensee. A class 3 craft distiller shall manufacture spirits |
| 7 | | at the distiller's class 3 designated licensed premises and |
| 8 | | may sell spirits as otherwise provided in this Act. |
| 9 | | (a-1) A manufacturer that which is licensed in this State |
| 10 | | to make sales or deliveries of alcoholic liquor to licensed |
| 11 | | distributors or importing distributors and which enlists |
| 12 | | agents, representatives, or individuals acting on its behalf |
| 13 | | who contact licensed retailers on a regular and continual |
| 14 | | basis in this State must register those agents, |
| 15 | | representatives, or persons acting on its behalf with the |
| 16 | | State Commission. |
| 17 | | Registration of agents, representatives, or persons acting |
| 18 | | on behalf of a manufacturer is fulfilled by submitting a form |
| 19 | | to the State Commission. The form shall be developed by the |
| 20 | | State Commission and shall include the name and address of the |
| 21 | | applicant, the name and address of the manufacturer he or she |
| 22 | | represents, the territory or areas assigned to sell to or |
| 23 | | discuss pricing terms of alcoholic liquor, and any other |
| 24 | | questions deemed appropriate and necessary. All statements in |
| 25 | | the forms required to be made by law or by rule shall be deemed |
| 26 | | material, and any person who knowingly misstates any material |
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| | SB0618 Enrolled | - 42 - | LRB104 06890 RPS 16926 b |
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| 1 | | fact under oath in an application is guilty of a Class B |
| 2 | | misdemeanor. Fraud, misrepresentation, false statements, |
| 3 | | misleading statements, evasions, or suppression of material |
| 4 | | facts in the securing of a registration are grounds for |
| 5 | | suspension or revocation of the registration. The State |
| 6 | | Commission shall post a list of registered agents on the State |
| 7 | | Commission's website. |
| 8 | | (b) A distributor's license shall allow (i) the wholesale |
| 9 | | purchase and storage of alcoholic liquors and sale of |
| 10 | | alcoholic liquors to licensees in this State and to persons |
| 11 | | without the State, as may be permitted by law; (ii) the sale of |
| 12 | | beer, cider, mead, or any combination thereof to brewers, |
| 13 | | class 1 brewers, and class 2 brewers that, pursuant to |
| 14 | | subsection (e) of Section 6-4 of this Act, sell beer, cider, |
| 15 | | mead, or any combination thereof to non-licensees at their |
| 16 | | breweries; (iii) the sale of vermouth to class 1 craft |
| 17 | | distillers and class 2 craft distillers that, pursuant to |
| 18 | | subsection (e) of Section 6-4 of this Act, sell spirits, |
| 19 | | vermouth, or both spirits and vermouth to non-licensees at |
| 20 | | their distilleries; or (iv) as otherwise provided in this Act. |
| 21 | | No person licensed as a distributor shall be granted a |
| 22 | | non-resident dealer's license. |
| 23 | | (c) An importing distributor's license may be issued to |
| 24 | | and held by those only who are duly licensed distributors, |
| 25 | | upon the filing of an application by a duly licensed |
| 26 | | distributor, with the State Commission and the State |
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| | SB0618 Enrolled | - 43 - | LRB104 06890 RPS 16926 b |
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| 1 | | Commission shall, without the payment of any fee, immediately |
| 2 | | issue such importing distributor's license to the applicant, |
| 3 | | which shall allow the importation of alcoholic liquor by the |
| 4 | | licensee into this State from any point in the United States |
| 5 | | outside this State, and the purchase of alcoholic liquor in |
| 6 | | barrels, casks, or other bulk containers and the bottling of |
| 7 | | such alcoholic liquors before resale thereof, but all bottles |
| 8 | | or containers so filled shall be sealed, labeled, stamped, and |
| 9 | | otherwise made to comply with all provisions, rules, and |
| 10 | | regulations governing manufacturers in the preparation and |
| 11 | | bottling of alcoholic liquors. The importing distributor's |
| 12 | | license shall permit such licensee to purchase alcoholic |
| 13 | | liquor from Illinois licensed non-resident dealers and foreign |
| 14 | | importers only. No person licensed as an importing distributor |
| 15 | | shall be granted a non-resident dealer's license. |
| 16 | | (d) A retailer's license shall allow the licensee to sell |
| 17 | | and offer for sale at retail, only in the premises specified in |
| 18 | | the license, alcoholic liquor for use or consumption, but not |
| 19 | | for resale in any form. Except as provided in Section 6-16, |
| 20 | | 6-29, or 6-29.1, nothing in this Act shall deny, limit, |
| 21 | | remove, or restrict the ability of a holder of a retailer's |
| 22 | | license to transfer or ship alcoholic liquor to the purchaser |
| 23 | | for use or consumption subject to any applicable local law or |
| 24 | | ordinance. For the purposes of this Section, "shipping" means |
| 25 | | the movement of alcoholic liquor from a licensed retailer to a |
| 26 | | consumer via a common carrier. Except as provided in Section |
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| | SB0618 Enrolled | - 44 - | LRB104 06890 RPS 16926 b |
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| 1 | | 6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit, |
| 2 | | remove, or restrict the ability of a holder of a retailer's |
| 3 | | license to deliver alcoholic liquor to the purchaser for use |
| 4 | | or consumption. The delivery shall be made only within 12 |
| 5 | | hours from the time the alcoholic liquor leaves the licensed |
| 6 | | premises of the retailer for delivery. For the purposes of |
| 7 | | this Section, "delivery" means the movement of alcoholic |
| 8 | | liquor purchased from a licensed retailer to a consumer |
| 9 | | through the following methods: |
| 10 | | (1) delivery within licensed retailer's parking lot, |
| 11 | | including curbside, for pickup by the consumer; |
| 12 | | (2) delivery by an owner, officer, director, |
| 13 | | shareholder, or employee of the licensed retailer; or |
| 14 | | (3) delivery by a third-party contractor, independent |
| 15 | | contractor, or agent with whom the licensed retailer has |
| 16 | | contracted to make deliveries of alcoholic liquors. |
| 17 | | Under paragraph subsection (1), (2), or (3), delivery |
| 18 | | shall not include the use of common carriers. |
| 19 | | Any retail license issued to a manufacturer shall only |
| 20 | | permit the manufacturer to sell beer at retail on the premises |
| 21 | | actually occupied by the manufacturer. For the purpose of |
| 22 | | further describing the type of business conducted at a retail |
| 23 | | licensed premises, a retailer's licensee may be designated by |
| 24 | | the State Commission as (i) an on premise consumption |
| 25 | | retailer, (ii) an off premise sale retailer, or (iii) a |
| 26 | | combined on premise consumption and off premise sale retailer. |
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| | SB0618 Enrolled | - 45 - | LRB104 06890 RPS 16926 b |
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| 1 | | Except for a municipality with a population of more than |
| 2 | | 1,000,000 inhabitants, a home rule unit may not regulate the |
| 3 | | delivery of alcoholic liquor inconsistent with this |
| 4 | | subsection. This paragraph is a limitation under subsection |
| 5 | | (i) of Section 6 of Article VII of the Illinois Constitution on |
| 6 | | the concurrent exercise by home rule units of powers and |
| 7 | | functions exercised by the State. A non-home rule municipality |
| 8 | | may not regulate the delivery of alcoholic liquor inconsistent |
| 9 | | with this subsection. |
| 10 | | Notwithstanding any other provision of this subsection |
| 11 | | (d), a retail licensee may sell alcoholic liquors to a special |
| 12 | | event retailer licensee for resale to the extent permitted |
| 13 | | under subsection (e). |
| 14 | | (e) A special event retailer's license (not-for-profit) |
| 15 | | shall permit the licensee to purchase alcoholic liquors from |
| 16 | | an Illinois licensed distributor (unless the licensee |
| 17 | | purchases less than $500 of alcoholic liquors for the special |
| 18 | | event, in which case the licensee may purchase the alcoholic |
| 19 | | liquors from a licensed retailer) and shall allow the licensee |
| 20 | | to sell and offer for sale, at retail, alcoholic liquors for |
| 21 | | consumption on or off the premises specified in the license |
| 22 | | for use or consumption, but not for resale in any form and only |
| 23 | | at the location and on the specific dates designated for the |
| 24 | | special event in the license. An applicant for a special event |
| 25 | | retailer license must (i) furnish with the application: (A) a |
| 26 | | resale number issued under Section 2c of the Retailers' |
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| | SB0618 Enrolled | - 46 - | LRB104 06890 RPS 16926 b |
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| 1 | | Occupation Tax Act or evidence that the applicant is |
| 2 | | registered under Section 2a of the Retailers' Occupation Tax |
| 3 | | Act, (B) a current, valid exemption identification number |
| 4 | | issued under Section 1g of the Retailers' Occupation Tax Act, |
| 5 | | and a certification to the State Commission that the purchase |
| 6 | | of alcoholic liquors will be a tax-exempt purchase, or (C) a |
| 7 | | statement that the applicant is not registered under Section |
| 8 | | 2a of the Retailers' Occupation Tax Act, does not hold a resale |
| 9 | | number under Section 2c of the Retailers' Occupation Tax Act, |
| 10 | | and does not hold an exemption number under Section 1g of the |
| 11 | | Retailers' Occupation Tax Act, in which event the State |
| 12 | | Commission shall set forth on the special event retailer's |
| 13 | | license a statement to that effect; (ii) submit with the |
| 14 | | application proof satisfactory to the State Commission that |
| 15 | | the applicant will provide dram shop liability insurance in |
| 16 | | the maximum limits; and (iii) show proof satisfactory to the |
| 17 | | State Commission that the applicant has obtained local |
| 18 | | authority approval. |
| 19 | | Nothing in this Act prohibits an Illinois licensed |
| 20 | | distributor from offering credit or a refund for unused, |
| 21 | | salable alcoholic liquors to a holder of a special event |
| 22 | | retailer's license or the special event retailer's licensee |
| 23 | | from accepting the credit or refund of alcoholic liquors at |
| 24 | | the conclusion of the event specified in the license. |
| 25 | | (f) A railroad license shall permit the licensee to import |
| 26 | | alcoholic liquors into this State from any point in the United |
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| | SB0618 Enrolled | - 47 - | LRB104 06890 RPS 16926 b |
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| 1 | | States outside this State and to store such alcoholic liquors |
| 2 | | in this State; to make wholesale purchases of alcoholic |
| 3 | | liquors directly from manufacturers, foreign importers, |
| 4 | | distributors and importing distributors from within or outside |
| 5 | | this State; and to store such alcoholic liquors in this State; |
| 6 | | provided that the above powers may be exercised only in |
| 7 | | connection with the importation, purchase or storage of |
| 8 | | alcoholic liquors to be sold or dispensed on a club, buffet, |
| 9 | | lounge, or dining car operated on an electric, gas, or steam |
| 10 | | railway in this State; and provided further, that railroad |
| 11 | | licensees exercising the above powers shall be subject to all |
| 12 | | provisions of Article VIII of this Act as applied to importing |
| 13 | | distributors. A railroad license shall also permit the |
| 14 | | licensee to sell or dispense alcoholic liquors on any club, |
| 15 | | buffet, lounge, or dining car operated on an electric, gas, or |
| 16 | | steam railway regularly operated by a common carrier in this |
| 17 | | State, but shall not permit the sale for resale of any |
| 18 | | alcoholic liquors to any licensee within this State. A license |
| 19 | | shall be obtained for each car in which such sales are made. |
| 20 | | (g) A boat license shall allow the sale of alcoholic |
| 21 | | liquor in individual drinks, on any passenger boat regularly |
| 22 | | operated as a common carrier on navigable waters in this State |
| 23 | | or on any riverboat operated under the Illinois Gambling Act, |
| 24 | | which boat or riverboat maintains a public dining room or |
| 25 | | restaurant thereon. |
| 26 | | (h) A non-beverage user's license shall allow the licensee |
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| | SB0618 Enrolled | - 48 - | LRB104 06890 RPS 16926 b |
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| 1 | | to purchase alcoholic liquor from a licensed manufacturer or |
| 2 | | importing distributor, without the imposition of any tax upon |
| 3 | | the business of such licensed manufacturer or importing |
| 4 | | distributor as to such alcoholic liquor to be used by such |
| 5 | | licensee solely for the non-beverage purposes set forth in |
| 6 | | subsection (a) of Section 8-1 of this Act, and such licenses |
| 7 | | shall be divided and classified and shall permit the purchase, |
| 8 | | possession, and use of limited and stated quantities of |
| 9 | | alcoholic liquor as follows: |
| 10 | | Class 1, not to exceed ......................... 500 gallons
|
| 11 | | Class 2, not to exceed ....................... 1,000 gallons
|
| 12 | | Class 3, not to exceed ....................... 5,000 gallons
|
| 13 | | Class 4, not to exceed ...................... 10,000 gallons
|
| 14 | | Class 5, not to exceed ....................... 50,000 gallons |
| 15 | | (i) A wine-maker's premises license shall allow a licensee |
| 16 | | that concurrently holds a first-class wine-maker's license to |
| 17 | | sell and offer for sale at retail in the premises specified in |
| 18 | | such license not more than 50,000 gallons of the first-class |
| 19 | | wine-maker's wine that is made at the first-class wine-maker's |
| 20 | | licensed premises per year for use or consumption, but not for |
| 21 | | resale in any form. A wine-maker's premises license shall |
| 22 | | allow a licensee who concurrently holds a second-class |
| 23 | | wine-maker's license to sell and offer for sale at retail in |
| 24 | | the premises specified in such license up to 100,000 gallons |
| 25 | | of the second-class wine-maker's wine that is made at the |
| 26 | | second-class wine-maker's licensed premises per year for use |
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| | SB0618 Enrolled | - 49 - | LRB104 06890 RPS 16926 b |
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| 1 | | or consumption but not for resale in any form. A first-class |
| 2 | | wine-maker that concurrently holds a class 1 brewer license or |
| 3 | | a class 1 craft distiller license shall not be eligible to hold |
| 4 | | a wine-maker's premises license. A wine-maker's premises |
| 5 | | license shall allow a licensee that concurrently holds a |
| 6 | | first-class wine-maker's license or a second-class |
| 7 | | wine-maker's license to sell and offer for sale at retail at |
| 8 | | the premises specified in the wine-maker's premises license, |
| 9 | | for use or consumption but not for resale in any form, any |
| 10 | | beer, wine, and spirits purchased from a licensed distributor. |
| 11 | | Upon approval from the State Commission, a wine-maker's |
| 12 | | premises license shall allow the licensee to sell and offer |
| 13 | | for sale at (i) the wine-maker's licensed premises and (ii) at |
| 14 | | up to 2 additional locations for use and consumption and not |
| 15 | | for resale. Each location shall require additional licensing |
| 16 | | per location as specified in Section 5-3 of this Act. A |
| 17 | | wine-maker's premises licensee shall secure liquor liability |
| 18 | | insurance coverage in an amount at least equal to the maximum |
| 19 | | liability amounts set forth in subsection (a) of Section 6-21 |
| 20 | | of this Act. |
| 21 | | (j) An airplane license shall permit the licensee to |
| 22 | | import alcoholic liquors into this State from any point in the |
| 23 | | United States outside this State and to store such alcoholic |
| 24 | | liquors in this State; to make wholesale purchases of |
| 25 | | alcoholic liquors directly from manufacturers, foreign |
| 26 | | importers, distributors, and importing distributors from |
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| | SB0618 Enrolled | - 50 - | LRB104 06890 RPS 16926 b |
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| 1 | | within or outside this State; and to store such alcoholic |
| 2 | | liquors in this State; provided that the above powers may be |
| 3 | | exercised only in connection with the importation, purchase, |
| 4 | | or storage of alcoholic liquors to be sold or dispensed on an |
| 5 | | airplane; and provided further, that airplane licensees |
| 6 | | exercising the above powers shall be subject to all provisions |
| 7 | | of Article VIII of this Act as applied to importing |
| 8 | | distributors. An airplane licensee shall also permit the sale |
| 9 | | or dispensing of alcoholic liquors on any passenger airplane |
| 10 | | regularly operated by a common carrier in this State, but |
| 11 | | shall not permit the sale for resale of any alcoholic liquors |
| 12 | | to any licensee within this State. A single airplane license |
| 13 | | shall be required of an airline company if liquor service is |
| 14 | | provided on board aircraft in this State. The annual fee for |
| 15 | | such license shall be as determined in Section 5-3. |
| 16 | | (k) A foreign importer's license shall permit such |
| 17 | | licensee to purchase alcoholic liquor from Illinois licensed |
| 18 | | non-resident dealers only, and to import alcoholic liquor |
| 19 | | other than in bulk from any point outside the United States and |
| 20 | | to sell such alcoholic liquor to Illinois licensed importing |
| 21 | | distributors and to no one else in Illinois; provided that (i) |
| 22 | | the foreign importer registers with the State Commission every |
| 23 | | brand of alcoholic liquor that it proposes to sell to Illinois |
| 24 | | licensees during the license period, (ii) the foreign importer |
| 25 | | complies with all of the provisions of Section 6-9 of this Act |
| 26 | | with respect to registration of such Illinois licensees as may |
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| | SB0618 Enrolled | - 51 - | LRB104 06890 RPS 16926 b |
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| 1 | | be granted the right to sell such brands at wholesale, and |
| 2 | | (iii) the foreign importer complies with the provisions of |
| 3 | | Sections 6-5 and 6-6 of this Act to the same extent that these |
| 4 | | provisions apply to manufacturers. |
| 5 | | (l) (i) A broker's license shall be required of all |
| 6 | | persons who solicit orders for, offer to sell, or offer to |
| 7 | | supply alcoholic liquor to retailers in the State of Illinois, |
| 8 | | or who offer to retailers to ship or cause to be shipped or to |
| 9 | | make contact with distillers, craft distillers, rectifiers, |
| 10 | | brewers or manufacturers or any other party within or without |
| 11 | | the State of Illinois in order that alcoholic liquors be |
| 12 | | shipped to a distributor, importing distributor, or foreign |
| 13 | | importer, whether such solicitation or offer is consummated |
| 14 | | within or without the State of Illinois. |
| 15 | | No holder of a retailer's license issued by the Illinois |
| 16 | | Liquor Control Commission shall purchase or receive any |
| 17 | | alcoholic liquor, the order for which was solicited or offered |
| 18 | | for sale to such retailer by a broker unless the broker is the |
| 19 | | holder of a valid broker's license. |
| 20 | | The broker shall, upon the acceptance by a retailer of the |
| 21 | | broker's solicitation of an order or offer to sell or supply or |
| 22 | | deliver or have delivered alcoholic liquors, promptly forward |
| 23 | | to the Illinois Liquor Control Commission a notification of |
| 24 | | said transaction in such form as the State Commission may by |
| 25 | | regulations prescribe. |
| 26 | | (ii) A broker's license shall be required of a person |
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| | SB0618 Enrolled | - 52 - | LRB104 06890 RPS 16926 b |
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| 1 | | within this State, other than a retail licensee, who, for a fee |
| 2 | | or commission, promotes, solicits, or accepts orders for |
| 3 | | alcoholic liquor, for use or consumption and not for resale, |
| 4 | | to be shipped from this State and delivered to residents |
| 5 | | outside of this State by an express company, common carrier, |
| 6 | | or contract carrier. This Section does not apply to any person |
| 7 | | who promotes, solicits, or accepts orders for wine as |
| 8 | | specifically authorized in Section 6-29 of this Act. |
| 9 | | A broker's license under this subsection (l) shall not |
| 10 | | entitle the holder to buy or sell any alcoholic liquors for his |
| 11 | | own account or to take or deliver title to such alcoholic |
| 12 | | liquors. |
| 13 | | This subsection (l) shall not apply to distributors, |
| 14 | | employees of distributors, or employees of a manufacturer who |
| 15 | | has registered the trademark, brand, or name of the alcoholic |
| 16 | | liquor pursuant to Section 6-9 of this Act, and who regularly |
| 17 | | sells such alcoholic liquor in the State of Illinois only to |
| 18 | | its registrants thereunder. |
| 19 | | Any agent, representative, or person subject to |
| 20 | | registration pursuant to subsection (a-1) of this Section |
| 21 | | shall not be eligible to receive a broker's license. |
| 22 | | (m) A non-resident dealer's license shall permit such |
| 23 | | licensee to ship into and warehouse alcoholic liquor into this |
| 24 | | State from any point outside of this State, and to sell such |
| 25 | | alcoholic liquor to Illinois licensed foreign importers and |
| 26 | | importing distributors and to no one else in this State; |
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| | SB0618 Enrolled | - 53 - | LRB104 06890 RPS 16926 b |
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| 1 | | provided that (i) said non-resident dealer shall register with |
| 2 | | the Illinois Liquor Control Commission each and every brand of |
| 3 | | alcoholic liquor which it proposes to sell to Illinois |
| 4 | | licensees during the license period, (ii) it shall comply with |
| 5 | | all of the provisions of Section 6-9 hereof with respect to |
| 6 | | registration of such Illinois licensees as may be granted the |
| 7 | | right to sell such brands at wholesale by duly filing such |
| 8 | | registration statement, thereby authorizing the non-resident |
| 9 | | dealer to proceed to sell such brands at wholesale, and (iii) |
| 10 | | the non-resident dealer shall comply with the provisions of |
| 11 | | Sections 6-5 and 6-6 of this Act to the same extent that these |
| 12 | | provisions apply to manufacturers. No person licensed as a |
| 13 | | non-resident dealer shall be granted a distributor's or |
| 14 | | importing distributor's license. |
| 15 | | (n) A brew pub license shall allow the licensee to only (i) |
| 16 | | manufacture up to 155,000 gallons of beer per year only on the |
| 17 | | premises specified in the license, (ii) make sales of the beer |
| 18 | | manufactured on the premises or, with the approval of the |
| 19 | | State Commission, beer manufactured on another brew pub |
| 20 | | licensed premises that is wholly owned and operated by the |
| 21 | | same licensee to importing distributors, distributors, and to |
| 22 | | non-licensees for use and consumption, (iii) store the beer |
| 23 | | upon the premises, (iv) sell and offer for sale at retail from |
| 24 | | the licensed premises for off-premises consumption no more |
| 25 | | than 155,000 gallons per year so long as such sales are only |
| 26 | | made in-person, (v) sell and offer for sale at retail for use |
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| | SB0618 Enrolled | - 54 - | LRB104 06890 RPS 16926 b |
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| 1 | | and consumption on the premises specified in the license any |
| 2 | | form of alcoholic liquor purchased from a licensed distributor |
| 3 | | or importing distributor, (vi) with the prior approval of the |
| 4 | | State Commission, annually transfer no more than 155,000 |
| 5 | | gallons of beer manufactured on the premises to a licensed |
| 6 | | brew pub wholly owned and operated by the same licensee, and |
| 7 | | (vii) notwithstanding item (i) of this subsection, brew pubs |
| 8 | | wholly owned and operated by the same licensee may combine |
| 9 | | each location's production limit of 155,000 gallons of beer |
| 10 | | per year and allocate the aggregate total between the wholly |
| 11 | | owned, operated, and licensed locations. |
| 12 | | A brew pub licensee shall not under any circumstance sell |
| 13 | | or offer for sale beer manufactured by the brew pub licensee to |
| 14 | | retail licensees. |
| 15 | | A person who holds a class 2 brewer license may |
| 16 | | simultaneously hold a brew pub license if the class 2 brewer |
| 17 | | (i) does not, under any circumstance, sell or offer for sale |
| 18 | | beer manufactured by the class 2 brewer to retail licensees; |
| 19 | | (ii) does not hold more than 3 brew pub licenses in this State; |
| 20 | | (iii) does not manufacture more than a combined 3,720,000 |
| 21 | | gallons of beer per year, including the beer manufactured at |
| 22 | | the brew pub; and (iv) is not a member of or affiliated with, |
| 23 | | directly or indirectly, a manufacturer that produces more than |
| 24 | | 3,720,000 gallons of beer per year or any other alcoholic |
| 25 | | liquor. |
| 26 | | Notwithstanding any other provision of this Act, a |
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| | SB0618 Enrolled | - 55 - | LRB104 06890 RPS 16926 b |
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| 1 | | licensed brewer, class 2 brewer, or non-resident dealer who |
| 2 | | before July 1, 2015 manufactured less than 3,720,000 gallons |
| 3 | | of beer per year and held a brew pub license on or before July |
| 4 | | 1, 2015 may (i) continue to qualify for and hold that brew pub |
| 5 | | license for the licensed premises and (ii) manufacture more |
| 6 | | than 3,720,000 gallons of beer per year and continue to |
| 7 | | qualify for and hold that brew pub license if that brewer, |
| 8 | | class 2 brewer, or non-resident dealer does not simultaneously |
| 9 | | hold a class 1 brewer license and is not a member of or |
| 10 | | affiliated with, directly or indirectly, a manufacturer that |
| 11 | | produces more than 3,720,000 gallons of beer per year or that |
| 12 | | produces any other alcoholic liquor. |
| 13 | | A brew pub licensee may apply for a class 3 brewer license |
| 14 | | and, upon meeting all applicable qualifications of this Act |
| 15 | | and relinquishing all commonly owned brew pub or retail |
| 16 | | licenses, shall be issued a class 3 brewer license. Nothing in |
| 17 | | this Act shall prohibit the issuance of a class 3 brewer |
| 18 | | license if the applicant: |
| 19 | | (1) has a valid retail license on or before May 1, |
| 20 | | 2021; |
| 21 | | (2) has an ownership interest in at least 2 two brew |
| 22 | | pubs licenses on or before May 1, 2021; |
| 23 | | (3) the brew pub licensee applies for a class 3 brewer |
| 24 | | license on or before October 1, 2022 and relinquishes all |
| 25 | | commonly owned brew pub licenses; and |
| 26 | | (4) relinquishes all commonly owned retail licenses on |
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| | SB0618 Enrolled | - 56 - | LRB104 06890 RPS 16926 b |
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| 1 | | or before December 31, 2022. |
| 2 | | If a brew pub licensee is issued a class 3 brewer license, |
| 3 | | the class 3 brewer license shall expire on the same date as the |
| 4 | | existing brew pub license and the State Commission shall not |
| 5 | | require a class 3 brewer licensee to obtain a brewer license, |
| 6 | | or, in the alternative, to pay a fee for a brewer license, |
| 7 | | until the date the brew pub license of the applicant would have |
| 8 | | expired. |
| 9 | | (o) A caterer retailer license shall allow the holder to |
| 10 | | serve alcoholic liquors as an incidental part of a food |
| 11 | | service that serves prepared meals which excludes the serving |
| 12 | | of snacks as the primary meal, either on or off-site whether |
| 13 | | licensed or unlicensed. A caterer retailer license shall allow |
| 14 | | the holder, a distributor, or an importing distributor to |
| 15 | | transfer any inventory to and from the holder's retail |
| 16 | | premises and shall allow the holder to purchase alcoholic |
| 17 | | liquor from a distributor or importing distributor to be |
| 18 | | delivered directly to an off-site event. |
| 19 | | Nothing in this Act prohibits a distributor or importing |
| 20 | | distributor from offering credit or a refund for unused, |
| 21 | | salable beer to a holder of a caterer retailer license or a |
| 22 | | caterer retailer licensee from accepting a credit or refund |
| 23 | | for unused, salable beer, in the event an act of God is the |
| 24 | | sole reason an off-site event is canceled cancelled and if: |
| 25 | | (i) the holder of a caterer retailer license has not |
| 26 | | transferred alcoholic liquor from its caterer retailer |
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| | SB0618 Enrolled | - 57 - | LRB104 06890 RPS 16926 b |
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| 1 | | premises to an off-site location; (ii) the distributor or |
| 2 | | importing distributor offers the credit or refund for the |
| 3 | | unused, salable beer that it delivered to the off-site |
| 4 | | premises and not for any unused, salable beer that the |
| 5 | | distributor or importing distributor delivered to the caterer |
| 6 | | retailer's premises; and (iii) the unused, salable beer would |
| 7 | | likely spoil if transferred to the caterer retailer's |
| 8 | | premises. A caterer retailer license shall allow the holder to |
| 9 | | transfer any inventory from any off-site location to its |
| 10 | | caterer retailer premises at the conclusion of an off-site |
| 11 | | event or engage a distributor or importing distributor to |
| 12 | | transfer any inventory from any off-site location to its |
| 13 | | caterer retailer premises at the conclusion of an off-site |
| 14 | | event, provided that the distributor or importing distributor |
| 15 | | issues bona fide charges to the caterer retailer licensee for |
| 16 | | fuel, labor, and delivery and the distributor or importing |
| 17 | | distributor collects payment from the caterer retailer |
| 18 | | licensee prior to the distributor or importing distributor |
| 19 | | transferring inventory to the caterer retailer premises. |
| 20 | | For purposes of this subsection (o), an "act of God" means |
| 21 | | an unforeseeable event, such as a rain or snow storm, hail, a |
| 22 | | flood, or a similar event, that is the sole cause of the |
| 23 | | cancellation of an off-site, outdoor event. |
| 24 | | (p) An auction liquor license shall allow the licensee to |
| 25 | | sell and offer for sale at auction wine and spirits for use or |
| 26 | | consumption, or for resale by an Illinois liquor licensee in |
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| | SB0618 Enrolled | - 58 - | LRB104 06890 RPS 16926 b |
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| 1 | | accordance with provisions of this Act. An auction liquor |
| 2 | | license will be issued to a person and it will permit the |
| 3 | | auction liquor licensee to hold the auction anywhere in the |
| 4 | | State. An auction liquor license must be obtained for each |
| 5 | | auction at least 14 days in advance of the auction date. |
| 6 | | (q) A special use permit license shall allow an Illinois |
| 7 | | licensed retailer to transfer a portion of its alcoholic |
| 8 | | liquor inventory from its retail licensed premises to the |
| 9 | | premises specified in the license hereby created; to purchase |
| 10 | | alcoholic liquor from a distributor or importing distributor |
| 11 | | to be delivered directly to the location specified in the |
| 12 | | license hereby created; and to sell or offer for sale at retail |
| 13 | | for consumption on or off the premises specified in the |
| 14 | | license, only in the premises specified in the license hereby |
| 15 | | created, the transferred or delivered alcoholic liquor for use |
| 16 | | or consumption, but not for resale in any form. A special use |
| 17 | | permit license may be granted for the following time periods: |
| 18 | | one day or less; 2 or more days to a maximum of 15 days per |
| 19 | | location in any 12-month period. An applicant for the special |
| 20 | | use permit license must also submit with the application proof |
| 21 | | satisfactory to the State Commission that the applicant will |
| 22 | | provide dram shop liability insurance to the maximum limits |
| 23 | | and have local authority approval. |
| 24 | | A special use permit license shall allow the holder to |
| 25 | | transfer any inventory from the holder's special use premises |
| 26 | | to its retail premises at the conclusion of the special use |
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| | SB0618 Enrolled | - 59 - | LRB104 06890 RPS 16926 b |
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| 1 | | event or engage a distributor or importing distributor to |
| 2 | | transfer any inventory from the holder's special use premises |
| 3 | | to its retail premises at the conclusion of an off-site event, |
| 4 | | provided that the distributor or importing distributor issues |
| 5 | | bona fide charges to the special use permit licensee for fuel, |
| 6 | | labor, and delivery and the distributor or importing |
| 7 | | distributor collects payment from the retail licensee prior to |
| 8 | | the distributor or importing distributor transferring |
| 9 | | inventory to the retail premises. |
| 10 | | Nothing in this Act prohibits a distributor or importing |
| 11 | | distributor from offering credit or a refund for unused, |
| 12 | | salable beer to a special use permit licensee or a special use |
| 13 | | permit licensee from accepting a credit or refund for unused, |
| 14 | | salable beer at the conclusion of the event specified in the |
| 15 | | license if: (i) the holder of the special use permit license |
| 16 | | has not transferred alcoholic liquor from its retail licensed |
| 17 | | premises to the premises specified in the special use permit |
| 18 | | license; (ii) the distributor or importing distributor offers |
| 19 | | the credit or refund for the unused, salable beer that it |
| 20 | | delivered to the premises specified in the special use permit |
| 21 | | license and not for any unused, salable beer that the |
| 22 | | distributor or importing distributor delivered to the |
| 23 | | retailer's premises; and (iii) the unused, salable beer would |
| 24 | | likely spoil if transferred to the retailer premises. |
| 25 | | (r) A winery shipper's license shall allow a person with a |
| 26 | | first-class or second-class wine manufacturer's license, a |
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| | SB0618 Enrolled | - 60 - | LRB104 06890 RPS 16926 b |
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| 1 | | first-class or second-class wine-maker's license, or a limited |
| 2 | | wine manufacturer's license or who is licensed to make wine |
| 3 | | under the laws of another state to ship wine made by that |
| 4 | | licensee directly to a resident of this State who is 21 years |
| 5 | | of age or older for that resident's personal use and not for |
| 6 | | resale. Prior to receiving a winery shipper's license, an |
| 7 | | applicant for the license must provide the State Commission |
| 8 | | with a true copy of its current license in any state in which |
| 9 | | it is licensed as a manufacturer of wine. An applicant for a |
| 10 | | winery shipper's license must also complete an application |
| 11 | | form that provides any other information the State Commission |
| 12 | | deems necessary. The application form shall include all |
| 13 | | addresses from which the applicant for a winery shipper's |
| 14 | | license intends to ship wine, including the name and address |
| 15 | | of any third party, except for a common carrier, authorized to |
| 16 | | ship wine on behalf of the manufacturer. The application form |
| 17 | | shall include an acknowledgment acknowledgement consenting to |
| 18 | | the jurisdiction of the State Commission, the Illinois |
| 19 | | Department of Revenue, and the courts of this State concerning |
| 20 | | the enforcement of this Act and any related laws, rules, and |
| 21 | | regulations, including authorizing the Department of Revenue |
| 22 | | and the State Commission to conduct audits for the purpose of |
| 23 | | ensuring compliance with Public Act 95-634, and an |
| 24 | | acknowledgment acknowledgement that the wine manufacturer is |
| 25 | | in compliance with Section 6-2 of this Act. Any third party, |
| 26 | | except for a common carrier, authorized to ship wine on behalf |
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| | SB0618 Enrolled | - 61 - | LRB104 06890 RPS 16926 b |
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| 1 | | of a first-class or second-class wine manufacturer's licensee, |
| 2 | | a first-class or second-class wine-maker's licensee, a limited |
| 3 | | wine manufacturer's licensee, or a person who is licensed to |
| 4 | | make wine under the laws of another state shall also be |
| 5 | | disclosed by the winery shipper's licensee, and a copy of the |
| 6 | | written appointment of the third-party wine provider, except |
| 7 | | for a common carrier, to the wine manufacturer shall be filed |
| 8 | | with the State Commission as a supplement to the winery |
| 9 | | shipper's license application or any renewal thereof. The |
| 10 | | winery shipper's license holder shall affirm under penalty of |
| 11 | | perjury, as part of the winery shipper's license application |
| 12 | | or renewal, that he or she only ships wine, either directly or |
| 13 | | indirectly through a third-party provider, from the licensee's |
| 14 | | own production. |
| 15 | | Except for a common carrier, a third-party provider |
| 16 | | shipping wine on behalf of a winery shipper's license holder |
| 17 | | is the agent of the winery shipper's license holder and, as |
| 18 | | such, a winery shipper's license holder is responsible for the |
| 19 | | acts and omissions of the third-party provider acting on |
| 20 | | behalf of the license holder. A third-party provider, except |
| 21 | | for a common carrier, that engages in shipping wine into |
| 22 | | Illinois on behalf of a winery shipper's license holder shall |
| 23 | | consent to the jurisdiction of the State Commission and the |
| 24 | | State. Any third-party, except for a common carrier, holding |
| 25 | | such an appointment shall, by February 1 of each calendar year |
| 26 | | and upon request by the State Commission or the Department of |
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| | SB0618 Enrolled | - 62 - | LRB104 06890 RPS 16926 b |
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| 1 | | Revenue, file with the State Commission a statement detailing |
| 2 | | each shipment made to an Illinois resident. The statement |
| 3 | | shall include the name and address of the third-party provider |
| 4 | | filing the statement, the time period covered by the |
| 5 | | statement, and the following information: |
| 6 | | (1) the name, address, and license number of the |
| 7 | | winery shipper on whose behalf the shipment was made; |
| 8 | | (2) the quantity of the products delivered; and |
| 9 | | (3) the date and address of the shipment. |
| 10 | | If the Department of Revenue or the State Commission requests |
| 11 | | a statement under this paragraph, the third-party provider |
| 12 | | must provide that statement no later than 30 days after the |
| 13 | | request is made. Any books, records, supporting papers, and |
| 14 | | documents containing information and data relating to a |
| 15 | | statement under this paragraph shall be kept and preserved for |
| 16 | | a period of 3 years, unless their destruction sooner is |
| 17 | | authorized, in writing, by the Director of Revenue, and shall |
| 18 | | be open and available to inspection by the Director of Revenue |
| 19 | | or the State Commission or any duly authorized officer, agent, |
| 20 | | or employee of the State Commission or the Department of |
| 21 | | Revenue, at all times during business hours of the day. Any |
| 22 | | person who violates any provision of this paragraph or any |
| 23 | | rule of the State Commission for the administration and |
| 24 | | enforcement of the provisions of this paragraph is guilty of a |
| 25 | | Class C misdemeanor. In case of a continuing violation, each |
| 26 | | day's continuance thereof shall be a separate and distinct |
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| | SB0618 Enrolled | - 63 - | LRB104 06890 RPS 16926 b |
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| 1 | | offense. |
| 2 | | The State Commission shall adopt rules as soon as |
| 3 | | practicable to implement the requirements of Public Act 99-904 |
| 4 | | and shall adopt rules prohibiting any such third-party |
| 5 | | appointment of a third-party provider, except for a common |
| 6 | | carrier, that has been deemed by the State Commission to have |
| 7 | | violated the provisions of this Act with regard to any winery |
| 8 | | shipper licensee. |
| 9 | | A winery shipper licensee must pay to the Department of |
| 10 | | Revenue the State liquor gallonage tax under Section 8-1 for |
| 11 | | all wine that is sold by the licensee and shipped to a person |
| 12 | | in this State. For the purposes of Section 8-1, a winery |
| 13 | | shipper licensee shall be taxed in the same manner as a |
| 14 | | manufacturer of wine. A licensee who is not otherwise required |
| 15 | | to register under the Retailers' Occupation Tax Act must |
| 16 | | register under the Use Tax Act to collect and remit use tax to |
| 17 | | the Department of Revenue for all gallons of wine that are sold |
| 18 | | by the licensee and shipped to persons in this State. If a |
| 19 | | licensee fails to remit the tax imposed under this Act in |
| 20 | | accordance with the provisions of Article VIII of this Act, |
| 21 | | the winery shipper's license shall be revoked in accordance |
| 22 | | with the provisions of Article VII of this Act. If a licensee |
| 23 | | fails to properly register and remit tax under the Use Tax Act |
| 24 | | or the Retailers' Occupation Tax Act for all wine that is sold |
| 25 | | by the winery shipper and shipped to persons in this State, the |
| 26 | | winery shipper's license shall be revoked in accordance with |
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| | SB0618 Enrolled | - 64 - | LRB104 06890 RPS 16926 b |
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| 1 | | the provisions of Article VII of this Act. |
| 2 | | A winery shipper licensee must collect, maintain, and |
| 3 | | submit to the State Commission on a semi-annual basis the |
| 4 | | total number of cases per resident of wine shipped to |
| 5 | | residents of this State. A winery shipper licensed under this |
| 6 | | subsection (r) must comply with the requirements of Section |
| 7 | | 6-29 of this Act. |
| 8 | | Pursuant to paragraph (5.1) or (5.3) of subsection (a) of |
| 9 | | Section 3-12, the State Commission may receive, respond to, |
| 10 | | and investigate any complaint and impose any of the remedies |
| 11 | | specified in paragraph (1) of subsection (a) of Section 3-12. |
| 12 | | As used in this subsection, "third-party provider" means |
| 13 | | any entity that provides fulfillment house services, including |
| 14 | | warehousing, packaging, distribution, order processing, or |
| 15 | | shipment of wine, but not the sale of wine, on behalf of a |
| 16 | | licensed winery shipper. |
| 17 | | (s) A craft distiller tasting permit license shall allow |
| 18 | | an Illinois licensed class 1 craft distiller or class 2 craft |
| 19 | | distiller to transfer a portion of its alcoholic liquor |
| 20 | | inventory from its class 1 craft distiller or class 2 craft |
| 21 | | distiller licensed premises to the premises specified in the |
| 22 | | license hereby created and to conduct a sampling, only in the |
| 23 | | premises specified in the license hereby created, of the |
| 24 | | transferred alcoholic liquor in accordance with subsection (c) |
| 25 | | of Section 6-31 of this Act. The transferred alcoholic liquor |
| 26 | | may not be sold or resold in any form. An applicant for the |
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| | SB0618 Enrolled | - 65 - | LRB104 06890 RPS 16926 b |
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| 1 | | craft distiller tasting permit license must also submit with |
| 2 | | the application proof satisfactory to the State Commission |
| 3 | | that the applicant will provide dram shop liability insurance |
| 4 | | to the maximum limits and have local authority approval. |
| 5 | | (t) A brewer warehouse permit may be issued to the holder |
| 6 | | of a class 1 brewer license or a class 2 brewer license. If the |
| 7 | | holder of the permit is a class 1 brewer licensee, the brewer |
| 8 | | warehouse permit shall allow the holder to store or warehouse |
| 9 | | up to 930,000 gallons of tax-determined beer manufactured by |
| 10 | | the holder of the permit at the premises specified on the |
| 11 | | permit. If the holder of the permit is a class 2 brewer |
| 12 | | licensee, the brewer warehouse permit shall allow the holder |
| 13 | | to store or warehouse up to 3,720,000 gallons of |
| 14 | | tax-determined beer manufactured by the holder of the permit |
| 15 | | at the premises specified on the permit. Sales to |
| 16 | | non-licensees are prohibited at the premises specified in the |
| 17 | | brewer warehouse permit. |
| 18 | | (u) A distilling pub license shall allow the licensee to |
| 19 | | only (i) manufacture up to 5,000 gallons of spirits per year |
| 20 | | only on the premises specified in the license, (ii) make sales |
| 21 | | of the spirits manufactured on the premises or, with the |
| 22 | | approval of the State Commission, spirits manufactured on |
| 23 | | another distilling pub licensed premises that is wholly owned |
| 24 | | and operated by the same licensee to importing distributors |
| 25 | | and distributors and to non-licensees for use and consumption, |
| 26 | | (iii) store the spirits upon the premises, (iv) sell and offer |
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| | SB0618 Enrolled | - 66 - | LRB104 06890 RPS 16926 b |
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| 1 | | for sale at retail from the licensed premises for off-premises |
| 2 | | consumption no more than 5,000 gallons per year so long as such |
| 3 | | sales are only made in-person, (v) sell and offer for sale at |
| 4 | | retail for use and consumption on the premises specified in |
| 5 | | the license any form of alcoholic liquor purchased from a |
| 6 | | licensed distributor or importing distributor, and (vi) with |
| 7 | | the prior approval of the State Commission, annually transfer |
| 8 | | no more than 5,000 gallons of spirits manufactured on the |
| 9 | | premises to a licensed distilling pub wholly owned and |
| 10 | | operated by the same licensee. |
| 11 | | A distilling pub licensee shall not under any circumstance |
| 12 | | sell or offer for sale spirits manufactured by the distilling |
| 13 | | pub licensee to retail licensees. |
| 14 | | A person who holds a class 2 craft distiller license may |
| 15 | | simultaneously hold a distilling pub license if the class 2 |
| 16 | | craft distiller (i) does not, under any circumstance, sell or |
| 17 | | offer for sale spirits manufactured by the class 2 craft |
| 18 | | distiller to retail licensees; (ii) does not hold more than 3 |
| 19 | | distilling pub licenses in this State; (iii) does not |
| 20 | | manufacture more than a combined 100,000 gallons of spirits |
| 21 | | per year, including the spirits manufactured at the distilling |
| 22 | | pub; and (iv) is not a member of or affiliated with, directly |
| 23 | | or indirectly, a manufacturer that produces more than 100,000 |
| 24 | | gallons of spirits per year or any other alcoholic liquor. |
| 25 | | (v) A craft distiller warehouse permit may be issued to |
| 26 | | the holder of a class 1 craft distiller or class 2 craft |
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| | SB0618 Enrolled | - 67 - | LRB104 06890 RPS 16926 b |
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| 1 | | distiller license. The craft distiller warehouse permit shall |
| 2 | | allow the holder to store or warehouse up to 500,000 gallons of |
| 3 | | spirits manufactured by the holder of the permit at the |
| 4 | | premises specified on the permit. Sales to non-licensees are |
| 5 | | prohibited at the premises specified in the craft distiller |
| 6 | | warehouse permit. |
| 7 | | (w) A beer showcase permit license shall allow an |
| 8 | | Illinois-licensed distributor to transfer a portion of its |
| 9 | | beer inventory from its licensed premises to the premises |
| 10 | | specified in the beer showcase permit license, and, in the |
| 11 | | case of a class 3 brewer to , transfer only beer the class 3 |
| 12 | | brewer manufactures from its licensed premises to the premises |
| 13 | | specified in the beer showcase permit license; and to sell or |
| 14 | | offer for sale at retail, only in the premises specified in the |
| 15 | | beer showcase permit license, the transferred or delivered |
| 16 | | beer for on or off premise consumption, but not for resale in |
| 17 | | any form and to sell to non-licensees not more than 96 fluid |
| 18 | | ounces of beer per person. A beer showcase permit license may |
| 19 | | be granted for the following time periods: one day or less; or |
| 20 | | 2 or more days to a maximum of 15 days per location in any |
| 21 | | 12-month period. An applicant for a beer showcase permit |
| 22 | | license must also submit with the application proof |
| 23 | | satisfactory to the State Commission that the applicant will |
| 24 | | provide dram shop liability insurance to the maximum limits |
| 25 | | and have local authority approval. The State Commission shall |
| 26 | | require the beer showcase applicant to comply with Section |
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| | SB0618 Enrolled | - 68 - | LRB104 06890 RPS 16926 b |
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| 1 | | 6-27.1. |
| 2 | | (x) A spirits showcase permit shall allow a class 3 craft |
| 3 | | distiller to transfer only spirits the class 3 craft distiller |
| 4 | | manufactures from its licensed premises to the premises |
| 5 | | specified in the spirits showcase permit and to sell or offer |
| 6 | | for sale at retail, only in the premises specified in the |
| 7 | | spirits showcase permit, the transferred or delivered spirits |
| 8 | | for on-premises or off-premises consumption, but not for |
| 9 | | resale in any form, and to sell to non-licensees not more than |
| 10 | | 156 fluid ounces of spirits per person. A spirits showcase |
| 11 | | permit may be granted for the following time periods: one day |
| 12 | | or less; or 2 or more days up to a maximum of 15 days per |
| 13 | | location in any 12-month period. An applicant for a spirits |
| 14 | | showcase permit must also submit with the application proof |
| 15 | | satisfactory to the State Commission that the applicant will |
| 16 | | provide dram shop liability insurance to the maximum limits |
| 17 | | and have local authority approval. The State Commission shall |
| 18 | | require the spirits showcase applicant to comply with Section |
| 19 | | 6-27.1. |
| 20 | | (Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; |
| 21 | | 101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. |
| 22 | | 8-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22; |
| 23 | | 102-442, eff. 8-20-21; 102-1142, eff. 2-17-23; revised |
| 24 | | 7-2-25.) |
| 25 | | (235 ILCS 5/5-3) (from Ch. 43, par. 118) |
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| | SB0618 Enrolled | - 69 - | LRB104 06890 RPS 16926 b |
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| 1 | | Sec. 5-3. License fees. Except as otherwise provided |
| 2 | | herein, at the time application is made to the State |
| 3 | | Commission for a license of any class, the applicant shall pay |
| 4 | | to the State Commission the fee hereinafter provided for the |
| 5 | | kind of license applied for. |
| 6 | | The fee for licenses issued by the State Commission shall |
| 7 | | be as follows: |
|
| 8 | | | Online | Initial | |
| 9 | | | renewal | license | |
| 10 | | | | or | |
| 11 | | | | non-online | |
| 12 | | | | renewal |
|
|
| 13 | | For a manufacturer's license: | | | |
| 14 | | Class 1. Distiller ................. | $4,000 | $5,000 | |
| 15 | | Class 2. Rectifier ................. | 4,000 | 5,000 | |
| 16 | | Class 3. Brewer .................... | 1,200 | 1,500 | |
| 17 | | Class 4. First-class Wine | | | |
| 18 | | Manufacturer ................... | 750 | 900 | |
| 19 | | Class 5. Second-class | | | |
| 20 | | Wine Manufacturer .............. | 1,500 | 1,750 | |
| 21 | | Class 6. First-class wine-maker .... | 750 | 900 | |
| 22 | | Class 7. Second-class wine-maker ... | 1,500 | 1,750 | |
| 23 | | Class 8. Limited Wine | | | |
| 24 | | Manufacturer.................... | 250 | 350 | |
| 25 | | Class 9. Craft Distiller........... | 2,000 | 2,500 | |
| 26 | | Class 10. Class 1 Craft Distiller.. | 50 | 75 | |
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| | SB0618 Enrolled | - 70 - | LRB104 06890 RPS 16926 b |
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| 1 | | Class 11. Class 2 Craft Distiller.. | 75 | 100 | |
| 2 | | Class 12. Class 1 Brewer............ | 50 | 75 | |
| 3 | | Class 13. Class 2 Brewer........... | 75 | 100 | |
| 4 | | Class 14. Class 3 Brewer........... | 25 | 50 | |
| 5 | | Class 15. Class 3 Craft Distiller. | 175 | 200 | |
| 6 | | For a Brew Pub License.............. | 1,200 | 1,500 | |
| 7 | | For a Distilling Pub License....... | 1,200 | 1,500 | |
| 8 | | For a caterer retailer's license.... | 350 | 500 | |
| 9 | | For a foreign importer's license ... | 25 | 25 | |
| 10 | | For an importing distributor's | | | |
| 11 | | license......................... | 25 | 25 | |
| 12 | | For a distributor's license | | | |
| 13 | | (11,250,000 gallons | | | |
| 14 | | or over)....................... | 1,450 | 2,200 | |
| 15 | | For a distributor's license | | | |
| 16 | | (over 4,500,000 gallons, but | | | |
| 17 | | under 11,250,000 gallons)...... | 950 | 1,450 | |
| 18 | | For a distributor's license | | | |
| 19 | | (4,500,000 gallons or under).... | 300 | 450 | |
| 20 | | For a non-resident dealer's license | | | |
| 21 | | (500,000 gallons or over) | | | |
| 22 | | or with self-distribution | | | |
| 23 | | privileges ..................... | 1,200 | 1,500 | |
| 24 | | For a non-resident dealer's license | | | |
| 25 | | (under 500,000 gallons) ........ | 250 | 350 | |
| 26 | | For a wine-maker's premises | | | |
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| | SB0618 Enrolled | - 71 - | LRB104 06890 RPS 16926 b |
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| 1 | | license ........................ | 250 | 500 | |
| 2 | | For a winery shipper's license | | | |
| 3 | | (under 250,000 gallons)......... | 200 | 350 | |
| 4 | | For a winery shipper's license | | | |
| 5 | | (250,000 or over, but | | | |
| 6 | | under 500,000 gallons).......... | 750 | 1,000 | |
| 7 | | For a winery shipper's license | | | |
| 8 | | (500,000 gallons or over)....... | 1,200 | 1,500 | |
| 9 | | For a wine-maker's premises | | | |
| 10 | | license, second location ....... | 500 | 1,000 | |
| 11 | | For a wine-maker's premises | | | |
| 12 | | license, third location ........ | 500 | 1,000 | |
| 13 | | For a retailer's license ........... | 600 | 750 | |
| 14 | | For a special event retailer's | | | |
| 15 | | license, (not-for-profit) ...... | 25 | 25 | |
| 16 | | For a beer showcase permit, | | | |
| 17 | | one day only .................. | 100 | 150 | |
| 18 | | 2 days or more ................ | 150 | 250 | |
| 19 | | For a spirits showcase permit, | | | |
| 20 | | one day only. | 100 | 150 | |
| 21 | | 2 days or more. | 150 | 250 | |
| 22 | | For a special use permit license, | | | |
| 23 | | one day only ................... | 100 | 150 | |
| 24 | | 2 days or more ................. | 150 | 250 | |
| 25 | | For a railroad license ............. | 100 | 150 | |
| 26 | | For a boat license ................. | 500 | 1,000 | |
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| | SB0618 Enrolled | - 73 - | LRB104 06890 RPS 16926 b |
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| 1 | | Fees collected under this Section shall be paid into the |
| 2 | | Dram Shop Fund. The State Commission shall waive license |
| 3 | | renewal fees for those retailers' licenses that are designated |
| 4 | | as "1A" by the State Commission and expire on or after July 1, |
| 5 | | 2022, and on or before June 30, 2023. One-half of the funds |
| 6 | | received for a retailer's license shall be paid into the Dram |
| 7 | | Shop Fund and one-half of the funds received for a retailer's |
| 8 | | license shall be paid into the General Revenue Fund. |
| 9 | | No fee shall be paid for licenses issued by the State |
| 10 | | Commission to the following non-beverage users: |
| 11 | | (a) Hospitals, sanitariums, or clinics when their use |
| 12 | | of alcoholic liquor is exclusively medicinal, mechanical, |
| 13 | | or scientific. |
| 14 | | (b) Universities, colleges of learning, or schools |
| 15 | | when their use of alcoholic liquor is exclusively |
| 16 | | medicinal, mechanical, or scientific. |
| 17 | | (c) Laboratories when their use is exclusively for the |
| 18 | | purpose of scientific research. |
| 19 | | (Source: P.A. 102-442, eff. 8-20-21; 102-558, eff. 8-20-21; |
| 20 | | 102-699, eff. 4-19-22; 102-1142, eff. 2-17-23; 103-154, eff. |
| 21 | | 6-30-23; 103-605, eff. 7-1-24.) |
| 22 | | (235 ILCS 5/6-4) (from Ch. 43, par. 121) |
| 23 | | Sec. 6-4. Prohibited ownership interests; retail sales by |
| 24 | | certain manufacturers. |
| 25 | | (a) No person licensed by any licensing authority as a |
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| | SB0618 Enrolled | - 74 - | LRB104 06890 RPS 16926 b |
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| 1 | | distiller, or a wine manufacturer, or any subsidiary or |
| 2 | | affiliate thereof, or any officer, associate, member, partner, |
| 3 | | representative, employee, agent or shareholder owning more |
| 4 | | than 5% of the outstanding shares of such person shall be |
| 5 | | issued an importing distributor's or distributor's license, |
| 6 | | nor shall any person licensed by any licensing authority as an |
| 7 | | importing distributor, distributor or retailer, or any |
| 8 | | subsidiary or affiliate thereof, or any officer or associate, |
| 9 | | member, partner, representative, employee, agent or |
| 10 | | shareholder owning more than 5% of the outstanding shares of |
| 11 | | such person be issued a distiller's license, a craft |
| 12 | | distiller's license, or a wine manufacturer's license; and no |
| 13 | | person or persons licensed as a distiller, craft distiller, |
| 14 | | class 1 craft distiller, or class 2 craft distiller by any |
| 15 | | licensing authority shall have any interest, directly or |
| 16 | | indirectly, with such distributor or importing distributor. |
| 17 | | However, an importing distributor or distributor, which on |
| 18 | | January 1, 1985 is owned by a brewer, or any subsidiary or |
| 19 | | affiliate thereof or any officer, associate, member, partner, |
| 20 | | representative, employee, agent or shareholder owning more |
| 21 | | than 5% of the outstanding shares of the importing distributor |
| 22 | | or distributor referred to in this paragraph, may own or |
| 23 | | acquire an ownership interest of more than 5% of the |
| 24 | | outstanding shares of a wine manufacturer and be issued a wine |
| 25 | | manufacturer's license by any licensing authority. |
| 26 | | (b) The foregoing provisions shall not apply to any person |
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| | SB0618 Enrolled | - 75 - | LRB104 06890 RPS 16926 b |
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| 1 | | licensed by any licensing authority as a distiller or wine |
| 2 | | manufacturer, or to any subsidiary or affiliate of any |
| 3 | | distiller or wine manufacturer who shall have been heretofore |
| 4 | | licensed by the State Commission as either an importing |
| 5 | | distributor or distributor during the annual licensing period |
| 6 | | expiring June 30, 1947, and shall actually have made sales |
| 7 | | regularly to retailers. |
| 8 | | (c) Provided, however, that in such instances where a |
| 9 | | distributor's or importing distributor's license has been |
| 10 | | issued to any distiller or wine manufacturer or to any |
| 11 | | subsidiary or affiliate of any distiller or wine manufacturer |
| 12 | | who has, during the licensing period ending June 30, 1947, |
| 13 | | sold or distributed as such licensed distributor or importing |
| 14 | | distributor alcoholic liquors and wines to retailers, such |
| 15 | | distiller or wine manufacturer or any subsidiary or affiliate |
| 16 | | of any distiller or wine manufacturer holding such |
| 17 | | distributor's or importing distributor's license may continue |
| 18 | | to sell or distribute to retailers such alcoholic liquors and |
| 19 | | wines which are manufactured, distilled, processed or marketed |
| 20 | | by distillers and wine manufacturers whose products it sold or |
| 21 | | distributed to retailers during the whole or any part of its |
| 22 | | licensing periods; and such additional brands and additional |
| 23 | | products may be added to the line of such distributor or |
| 24 | | importing distributor, provided, that such brands and such |
| 25 | | products were not sold or distributed by any distributor or |
| 26 | | importing distributor licensed by the State Commission during |
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| | SB0618 Enrolled | - 76 - | LRB104 06890 RPS 16926 b |
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| 1 | | the licensing period ending June 30, 1947, but can not sell or |
| 2 | | distribute to retailers any other alcoholic liquors or wines. |
| 3 | | (d) It shall be unlawful for any distiller licensed |
| 4 | | anywhere to have any stock ownership or interest in any |
| 5 | | distributor's or importing distributor's license wherein any |
| 6 | | other person has an interest therein who is not a distiller and |
| 7 | | does not own more than 5% of any stock in any distillery. |
| 8 | | Nothing herein contained shall apply to such distillers or |
| 9 | | their subsidiaries or affiliates, who had a distributor's or |
| 10 | | importing distributor's license during the licensing period |
| 11 | | ending June 30, 1947, which license was owned in whole by such |
| 12 | | distiller, or subsidiaries or affiliates of such distiller. |
| 13 | | (e) Any person licensed as a brewer, class 1 brewer, or |
| 14 | | class 2 brewer shall be permitted to sell on the licensed |
| 15 | | premises to non-licensees for on or off-premises consumption |
| 16 | | for the premises in which he or she actually conducts such |
| 17 | | business: (i) beer manufactured by the brewer, class 1 brewer, |
| 18 | | class 2 brewer, or class 3 brewer; (ii) beer manufactured by |
| 19 | | any other brewer, class 1 brewer, class 2 brewer, or class 3 |
| 20 | | brewer; and (iii) cider or mead. Any person licensed as a class |
| 21 | | 3 brewer shall be permitted to sell on the licensed premises to |
| 22 | | non-licensees for on or off premises consumption for the |
| 23 | | premises in which he or she actually conducts such business: |
| 24 | | (i) beer manufactured by the class 3 brewer on the premises; |
| 25 | | (ii) beer manufactured by any other brewer, class 1 brewer, |
| 26 | | class 2 brewer, or class 3 brewer; and (iii) cider, wine, and |
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| | SB0618 Enrolled | - 77 - | LRB104 06890 RPS 16926 b |
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| 1 | | spirits. All products sold under this subsection that are not |
| 2 | | manufactured on premises must be purchased through a licensed |
| 3 | | distributor, importing distributor, or manufacturer with |
| 4 | | self-distribution privileges. Such sales shall be limited to |
| 5 | | on-premises, in-person sales only, for lawful consumption on |
| 6 | | or off premises. Such authorization shall be considered a |
| 7 | | privilege granted by the brewer license and, other than a |
| 8 | | manufacturer of beer as stated above, no manufacturer or |
| 9 | | distributor or importing distributor, excluding airplane |
| 10 | | licensees exercising powers provided in paragraph (i) of |
| 11 | | Section 5-1 of this Act, or any subsidiary or affiliate |
| 12 | | thereof, or any officer, associate, member, partner, |
| 13 | | representative, employee or agent, or shareholder shall be |
| 14 | | issued a retailer's license, nor shall any person having a |
| 15 | | retailer's license, excluding airplane licensees exercising |
| 16 | | powers provided in paragraph (i) of Section 5-1 of this Act, or |
| 17 | | any subsidiary or affiliate thereof, or any officer, |
| 18 | | associate, member, partner, representative or agent, or |
| 19 | | shareholder be issued a manufacturer's license or importing |
| 20 | | distributor's license. |
| 21 | | A manufacturer of beer that imports or transfers beer into |
| 22 | | this State must comply with Sections 6-8 and 8-1 of this Act. |
| 23 | | A person who holds a class 2 brewer license and is |
| 24 | | authorized by this Section to sell beer to non-licensees shall |
| 25 | | not sell beer to non-licensees from more than 3 total brewer or |
| 26 | | commonly owned brew pub licensed locations in this State. The |
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| | SB0618 Enrolled | - 78 - | LRB104 06890 RPS 16926 b |
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| 1 | | class 2 brewer shall designate to the State Commission the |
| 2 | | brewer or brew pub locations from which it will sell beer to |
| 3 | | non-licensees. |
| 4 | | A person licensed as a class 1 craft distiller or a class 2 |
| 5 | | craft distiller, including a person who holds more than one |
| 6 | | class 1 craft distiller or class 2 craft distiller license, |
| 7 | | not affiliated with any other person manufacturing spirits may |
| 8 | | be authorized by the State Commission to sell (1) up to 5,000 |
| 9 | | gallons of spirits produced by the person to non-licensees for |
| 10 | | on or off-premises consumption for the premises in which he or |
| 11 | | she actually conducts business permitting only the retail sale |
| 12 | | of spirits manufactured at such premises and (2) vermouth |
| 13 | | purchased through a licensed distributor for on-premises |
| 14 | | consumption. Such sales shall be limited to on-premises, |
| 15 | | in-person sales only, for lawful consumption on or off |
| 16 | | premises, and such authorization shall be considered a |
| 17 | | privilege granted by the class 1 craft distiller or class 2 |
| 18 | | craft distiller license. A class 1 craft distiller or class 2 |
| 19 | | craft distiller licensed for retail sale shall secure liquor |
| 20 | | liability insurance coverage in an amount at least equal to |
| 21 | | the maximum liability amounts set forth in subsection (a) of |
| 22 | | Section 6-21 of this Act. |
| 23 | | A class 1 craft distiller or class 2 craft distiller |
| 24 | | license holder shall not deliver any alcoholic liquor to any |
| 25 | | non-licensee off the licensed premises. A class 1 craft |
| 26 | | distiller or class 2 craft distiller shall affirm in its |
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| | SB0618 Enrolled | - 79 - | LRB104 06890 RPS 16926 b |
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| 1 | | annual license application that it does not produce more than |
| 2 | | 50,000 or 100,000 gallons of distilled spirits annually, |
| 3 | | whichever is applicable, and that the craft distiller does not |
| 4 | | sell more than 5,000 gallons of spirits to non-licensees for |
| 5 | | on or off-premises consumption. In the application, which |
| 6 | | shall be sworn under penalty of perjury, the class 1 craft |
| 7 | | distiller or class 2 craft distiller shall state the volume of |
| 8 | | production and sales for each year since the class 1 craft |
| 9 | | distiller's or class 2 craft distiller's establishment. |
| 10 | | A person who holds a class 1 craft distiller or class 2 |
| 11 | | craft distiller license and is authorized by this Section to |
| 12 | | sell spirits to non-licensees shall not sell spirits to |
| 13 | | non-licensees from more than 3 total distillery or commonly |
| 14 | | owned distilling pub licensed locations in this State. The |
| 15 | | class 1 craft distiller or class 2 craft distiller shall |
| 16 | | designate to the State Commission the distillery or distilling |
| 17 | | pub locations from which it will sell spirits to |
| 18 | | non-licensees. |
| 19 | | A class 3 craft distiller license shall allow the licensee |
| 20 | | to only (i) manufacture up to 100,000 gallons of spirits per |
| 21 | | year, (ii) make sales of the spirits manufactured on the |
| 22 | | premises or, with the approval of the State Commission, |
| 23 | | spirits manufactured on another class 3 craft distiller's |
| 24 | | licensed premises that are wholly owned and operated by the |
| 25 | | same licensee to importing distributors and distributors, to |
| 26 | | retail licensees in accordance with the conditions set forth |
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| | SB0618 Enrolled | - 80 - | LRB104 06890 RPS 16926 b |
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| 1 | | in paragraph (21) of subsection (a) of Section 3-12 of this |
| 2 | | Act, and to non-licensees for use and consumption, (iii) store |
| 3 | | the spirits upon the premises, (iv) sell and offer for sale at |
| 4 | | retail from the licensed premises for off-premises consumption |
| 5 | | no more than 5,000 gallons per year so long as such sales are |
| 6 | | only made in-person, (v) sell and offer for sale at retail for |
| 7 | | use and consumption on the premises specified in the license |
| 8 | | any form of alcoholic liquor purchased from a licensed |
| 9 | | distributor or importing distributor, and (vi) with the prior |
| 10 | | approval of the State Commission, annually transfer no more |
| 11 | | than 2,500 gallons of spirits manufactured on the premises to |
| 12 | | a second and separate location licensed as a class 3 craft |
| 13 | | distiller if the second location is wholly owned and operated |
| 14 | | by the same licensee. The second location may operate with the |
| 15 | | same retail privileges as the original licensed premises. |
| 16 | | (f) (Blank). |
| 17 | | (g) Notwithstanding any of the foregoing prohibitions, a |
| 18 | | limited wine manufacturer may sell at retail at its |
| 19 | | manufacturing site for on or off premises consumption and may |
| 20 | | sell to distributors. A limited wine manufacturer licensee |
| 21 | | shall secure liquor liability insurance coverage in an amount |
| 22 | | at least equal to the maximum liability amounts set forth in |
| 23 | | subsection (a) of Section 6-21 of this Act. |
| 24 | | (h) The changes made to this Section by Public Act 99-47 |
| 25 | | shall not diminish or impair the rights of any person, whether |
| 26 | | a distiller, wine manufacturer, agent, or affiliate thereof, |
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| | SB0618 Enrolled | - 81 - | LRB104 06890 RPS 16926 b |
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| 1 | | who requested in writing and submitted documentation to the |
| 2 | | State Commission on or before February 18, 2015 to be approved |
| 3 | | for a retail license pursuant to what has heretofore been |
| 4 | | subsection (f); provided that, on or before that date, the |
| 5 | | State Commission considered the intent of that person to apply |
| 6 | | for the retail license under that subsection and, by recorded |
| 7 | | vote, the State Commission approved a resolution indicating |
| 8 | | that such a license application could be lawfully approved |
| 9 | | upon that person duly filing a formal application for a retail |
| 10 | | license and if that person, within 90 days of the State |
| 11 | | Commission appearance and recorded vote, first filed an |
| 12 | | application with the appropriate local commission, which |
| 13 | | application was subsequently approved by the appropriate local |
| 14 | | commission prior to consideration by the State Commission of |
| 15 | | that person's application for a retail license. It is further |
| 16 | | provided that the State Commission may approve the person's |
| 17 | | application for a retail license or renewals of such license |
| 18 | | if such person continues to diligently adhere to all |
| 19 | | representations made in writing to the State Commission on or |
| 20 | | before February 18, 2015, or thereafter, or in the affidavit |
| 21 | | filed by that person with the State Commission to support the |
| 22 | | issuance of a retail license and to abide by all applicable |
| 23 | | laws and duly adopted rules. |
| 24 | | (i) Notwithstanding any other provision of this Act, the |
| 25 | | common ownership of a brewery, winery, or a distillery shall |
| 26 | | not authorize the grant of and aggregation of retail |
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| 1 | | privileges granted to any person or licensees in subsection |
| 2 | | (e). Any person or licensee with common ownership in a |
| 3 | | brewery, winery, or a distillery shall be limited to the |
| 4 | | retail privileges granted to only one of the commonly owned |
| 5 | | brewery, winery, or distillery. The State Commission is hereby |
| 6 | | authorized to restrict the locations of any commonly owned |
| 7 | | brewery, winery, or distillery to prevent the expansion of |
| 8 | | retail privileges, including, without limitation, restricting |
| 9 | | a commonly owned brewery, winery, or distillery from operating |
| 10 | | in adjacent licensed premises or restricting self-distribution |
| 11 | | privileges. |
| 12 | | (Source: P.A. 101-81, eff. 7-12-19; 101-482, eff. 8-23-19; |
| 13 | | 101-615, eff. 12-20-19; 102-442, eff. 8-20-21.) |
| 14 | | (235 ILCS 5/6-40 new) |
| 15 | | Sec. 6-40. Consumer loyalty and reward programs. |
| 16 | | (a) In this Section: |
| 17 | | "Loyalty program" means a structured program used by a |
| 18 | | brew pub licensee, class 1 brewer licensee, class 2 brewer |
| 19 | | licensee, class 3 brewer licensee, or manufacturer licensee |
| 20 | | with retail privileges licensed under this Act to encourage |
| 21 | | participants to continue to shop at the brew pub licensee's, |
| 22 | | class 1 brewer licensee's, class 2 brewer licensee's, class 3 |
| 23 | | brewer licensee's, or manufacturer licensee with retail |
| 24 | | privileges' business by allowing participants access to |
| 25 | | special pricing on products by virtue of being a member of a |
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| 1 | | bona fide loyalty program. |
| 2 | | "Mug club" means a group that is organized by a brew pub |
| 3 | | licensee, class 1 brewer licensee, class 2 brewer licensee, |
| 4 | | class 3 brewer licensee, or manufacturer licensee with retail |
| 5 | | privileges licensed under this Act whose members are entitled |
| 6 | | to discounted malt, brewed, or distilled beverages and that is |
| 7 | | designed to allow a consumer to access rewards for purchases |
| 8 | | made on the brew pub licensee's, class 1 brewer licensee's, |
| 9 | | class 2 brewer licensee's, class 3 brewer licensee's, or |
| 10 | | manufacturer licensee with retail privileges' premises. "Mug |
| 11 | | club" includes, but is not limited to, point accumulation |
| 12 | | programs, the purchase and use of specialty glassware, and the |
| 13 | | purchase and use of non-alcoholic beverage products. |
| 14 | | "Rewards program" means a structured program used by a |
| 15 | | brew pub licensee, class 1 brewer licensee, class 2 brewer |
| 16 | | licensee, class 3 brewer licensee, or manufacturer licensee |
| 17 | | with retail privileges licensed under this Act to encourage |
| 18 | | participants to continue to shop at the brew pub licensee, |
| 19 | | class 1 brewer licensee, class 2 brewer licensee, class 3 |
| 20 | | brewer licensee, or manufacturer licensee with retail |
| 21 | | privileges licensed business by allowing participants to |
| 22 | | accrue program benefits, in the form of points or other |
| 23 | | accrual-based methods of reward, through the purchase of |
| 24 | | products, to be redeemed in the form of a discount upon a |
| 25 | | subsequent transaction on alcoholic or non-alcoholic products. |
| 26 | | (b) A brew pub licensee, class 1 brewer licensee, class 2 |
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| 1 | | brewer licensee, class 3 brewer licensee, or manufacturer |
| 2 | | licensee with retail privileges may do any of the following: |
| 3 | | (1) operate a loyalty program, reward program, or mug |
| 4 | | club for alcoholic beverages that the brew pub licensee, |
| 5 | | class 1 brewer licensee, class 2 brewer licensee, class 3 |
| 6 | | brewer licensee, or manufacturer licensee with retail |
| 7 | | privileges is licensed to sell; |
| 8 | | (2) offer incentives to consumers for participation in |
| 9 | | a rewards program, loyalty program, or mug club; |
| 10 | | (3) offer consumers discounts on its products as part |
| 11 | | of a rewards program, loyalty program, or mug club; |
| 12 | | (4) offer benefits to members or participants of a |
| 13 | | rewards program, loyalty program, or mug club that are not |
| 14 | | offered to other consumers; |
| 15 | | (5) offer specialty glassware or other non-alcoholic |
| 16 | | products for sale to members or participants in a rewards |
| 17 | | program, loyalty program, or mug club and offer a price |
| 18 | | discount to the owner of that glassware on additional |
| 19 | | purchases using the glassware; or |
| 20 | | (6) require members or participants in a rewards |
| 21 | | program, loyalty program, or mug club to pay an annual fee |
| 22 | | as well as a renewal fee to join or maintain membership or |
| 23 | | continue participation in a rewards program, loyalty |
| 24 | | program, or mug club. |
| 25 | | (c) Membership in a mug club shall be by written |
| 26 | | application, and the licensee that organized the mug club must |
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| 1 | | maintain a written list of active members as part of its |
| 2 | | records. |
| 3 | | (d) This Section applies only to a brew pub licensee, |
| 4 | | class 1 brewer licensee, class 2 brewer licensee, class 3 |
| 5 | | brewer licensee, or manufacturer licensee with retail |
| 6 | | privileges. Nothing in this Section applies to an off-premises |
| 7 | | or on-premise retail licensee or be construed to regulate, |
| 8 | | limit, or prohibit any discount program, rewards program, |
| 9 | | loyalty program, mug club, or any other similar program, |
| 10 | | however defined or structured, that is created, administered, |
| 11 | | or offered by an off-premises or on-premises retail licensee. |
| 12 | | (235 ILCS 5/8-2) (from Ch. 43, par. 159) |
| 13 | | Sec. 8-2. Payments; reports. It is the duty of each |
| 14 | | manufacturer with respect to alcoholic liquor produced or |
| 15 | | imported by such manufacturer, or purchased tax-free by such |
| 16 | | manufacturer from another manufacturer or importing |
| 17 | | distributor, and of each importing distributor as to alcoholic |
| 18 | | liquor purchased by such importing distributor from foreign |
| 19 | | importers or from anyone from any point in the United States |
| 20 | | outside of this State or purchased tax-free from another |
| 21 | | manufacturer or importing distributor, to pay the tax imposed |
| 22 | | by Section 8-1 to the Department of Revenue on or before the |
| 23 | | 15th day of the calendar month following the calendar month in |
| 24 | | which such alcoholic liquor is sold or used by such |
| 25 | | manufacturer or by such importing distributor other than in an |
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| 1 | | authorized tax-free manner or to pay that tax electronically |
| 2 | | as provided in this Section. |
| 3 | | Each manufacturer and each importing distributor shall |
| 4 | | make payment under one of the following methods: (1) on or |
| 5 | | before the 15th day of each calendar month, file in person or |
| 6 | | by United States first-class mail, postage pre-paid, with the |
| 7 | | Department of Revenue, on forms prescribed and furnished by |
| 8 | | the Department, a report in writing in such form as may be |
| 9 | | required by the Department in order to compute, and assure the |
| 10 | | accuracy of, the tax due on all taxable sales and uses of |
| 11 | | alcoholic liquor occurring during the preceding month. Payment |
| 12 | | of the tax in the amount disclosed by the report shall |
| 13 | | accompany the report or, (2) on or before the 15th day of each |
| 14 | | calendar month, electronically file with the Department of |
| 15 | | Revenue, on forms prescribed and furnished by the Department, |
| 16 | | an electronic report in such form as may be required by the |
| 17 | | Department in order to compute, and assure the accuracy of, |
| 18 | | the tax due on all taxable sales and uses of alcoholic liquor |
| 19 | | occurring during the preceding month. An electronic payment of |
| 20 | | the tax in the amount disclosed by the report shall accompany |
| 21 | | the report. A manufacturer or distributor who files an |
| 22 | | electronic report and electronically pays the tax imposed |
| 23 | | pursuant to Section 8-1 to the Department of Revenue on or |
| 24 | | before the 15th day of the calendar month following the |
| 25 | | calendar month in which such alcoholic liquor is sold or used |
| 26 | | by that manufacturer or importing distributor other than in an |
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| 1 | | authorized tax-free manner shall pay to the Department the |
| 2 | | amount of the tax imposed pursuant to Section 8-1, less a |
| 3 | | discount which is allowed to reimburse the manufacturer or |
| 4 | | importing distributor for the expenses incurred in keeping and |
| 5 | | maintaining records, preparing and filing the electronic |
| 6 | | returns, remitting the tax, and supplying data to the |
| 7 | | Department upon request. |
| 8 | | The discount shall be in an amount as follows: |
| 9 | | (1) For original returns due on or after January 1, |
| 10 | | 2003 through September 30, 2003, the discount shall be |
| 11 | | 1.75% or $1,250 per return, whichever is less; |
| 12 | | (2) For original returns due on or after October 1, |
| 13 | | 2003 through September 30, 2004, the discount shall be 2% |
| 14 | | or $3,000 per return, whichever is less; and |
| 15 | | (3) For original returns due on or after October 1, |
| 16 | | 2004, the discount shall be 2% or $2,000 per return, |
| 17 | | whichever is less. |
| 18 | | The Department may, if it deems it necessary in order to |
| 19 | | insure the payment of the tax imposed by this Article, require |
| 20 | | returns to be made more frequently than and covering periods |
| 21 | | of less than a month. Such return shall contain such further |
| 22 | | information as the Department may reasonably require. |
| 23 | | It shall be presumed that all alcoholic liquors acquired |
| 24 | | or made by any importing distributor or manufacturer have been |
| 25 | | sold or used by him in this State and are the basis for the tax |
| 26 | | imposed by this Article unless proven, to the satisfaction of |
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| 1 | | the Department, that such alcoholic liquors are (1) still in |
| 2 | | the possession of such importing distributor or manufacturer, |
| 3 | | or (2) prior to the termination of possession have been lost by |
| 4 | | theft or through unintentional destruction, or (3) that such |
| 5 | | alcoholic liquors are otherwise exempt from taxation under |
| 6 | | this Act. |
| 7 | | If any payment provided for in this Section exceeds the |
| 8 | | manufacturer's or importing distributor's liabilities under |
| 9 | | this Act, as shown on an original report, the manufacturer or |
| 10 | | importing distributor may credit such excess payment against |
| 11 | | liability subsequently to be remitted to the Department under |
| 12 | | this Act, in accordance with reasonable rules adopted by the |
| 13 | | Department. If the Department subsequently determines that all |
| 14 | | or any part of the credit taken was not actually due to the |
| 15 | | manufacturer or importing distributor, the manufacturer's or |
| 16 | | importing distributor's discount shall be reduced by an amount |
| 17 | | equal to the difference between the discount as applied to the |
| 18 | | credit taken and that actually due, and the manufacturer or |
| 19 | | importing distributor shall be liable for penalties and |
| 20 | | interest on such difference. |
| 21 | | The Department may require any foreign importer to file |
| 22 | | monthly information returns, by the 15th day of the month |
| 23 | | following the month which any such return covers, if the |
| 24 | | Department determines this to be necessary to the proper |
| 25 | | performance of the Department's functions and duties under |
| 26 | | this Act. Such return shall contain such information as the |
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| 1 | | Department may reasonably require. |
| 2 | | Every manufacturer and importing distributor, except for a |
| 3 | | manufacturer or importing distributor who is applying for a |
| 4 | | manufacturer's or importing distributor's license under this |
| 5 | | Act for the first time or a manufacturer or importing |
| 6 | | distributor who that in the preceding year had less than |
| 7 | | $50,000 of tax liability under this Article, shall also file, |
| 8 | | with the Department, a bond in an amount not less than $1,000 |
| 9 | | and not to exceed $100,000 on a form to be approved by, and |
| 10 | | with a surety or sureties satisfactory to, the Department. |
| 11 | | Such bond may be required as a condition to renew a license for |
| 12 | | subsequent annual license terms if a manufacturer or importing |
| 13 | | distributor exceeds $50,000 in tax liability. Such bond shall |
| 14 | | be conditioned upon the manufacturer or importing distributor |
| 15 | | paying to the Department all monies becoming due from such |
| 16 | | manufacturer or importing distributor under this Article. The |
| 17 | | Department shall fix the penalty of such bond in each case, |
| 18 | | taking into consideration the amount of alcoholic liquor |
| 19 | | expected to be sold and used by such manufacturer or importing |
| 20 | | distributor, and the penalty fixed by the Department shall be |
| 21 | | sufficient, in the Department's opinion, to protect the State |
| 22 | | of Illinois against failure to pay any amount due under this |
| 23 | | Article, but the amount of the penalty fixed by the Department |
| 24 | | shall not exceed twice the amount of tax liability of a monthly |
| 25 | | return, nor shall the amount of such penalty be less than |
| 26 | | $1,000. The Department shall notify the State Commission of |
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| 1 | | the Department's approval or disapproval of any such |
| 2 | | manufacturer's or importing distributor's bond, or of the |
| 3 | | termination or cancellation of any such bond, or of the |
| 4 | | Department's direction to a manufacturer or importing |
| 5 | | distributor that he must file additional bond in order to |
| 6 | | comply with this Section. The State Commission shall not renew |
| 7 | | issue a license for to any applicant for a manufacturer's or |
| 8 | | importing distributor's license if unless the State Commission |
| 9 | | has received a notification from the Department showing that |
| 10 | | such applicant is required to file and has not filed a |
| 11 | | satisfactory bond with the Department hereunder and that such |
| 12 | | bond has not been approved by the Department. Failure by any |
| 13 | | licensed manufacturer or importing distributor to keep a |
| 14 | | satisfactory bond in effect with the Department or to furnish |
| 15 | | additional bond to the Department, when required hereunder by |
| 16 | | the Department to do so, shall be grounds for the revocation or |
| 17 | | suspension of such manufacturer's or importing distributor's |
| 18 | | license by the Commission. If a manufacturer or importing |
| 19 | | distributor fails to pay any amount due under this Article, |
| 20 | | his bond with the Department shall be deemed forfeited, and |
| 21 | | the Department may institute a suit in its own name on such |
| 22 | | bond. |
| 23 | | After notice and opportunity for a hearing the State |
| 24 | | Commission may revoke or suspend the license of any |
| 25 | | manufacturer or importing distributor who fails to comply with |
| 26 | | the provisions of this Section. Notice of such hearing and the |
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| 1 | | time and place thereof shall be in writing and shall contain a |
| 2 | | statement of the charges against the licensee. Such notice may |
| 3 | | be given by United States registered or certified mail with |
| 4 | | return receipt requested, addressed to the person concerned at |
| 5 | | his last known address and shall be given not less than 7 days |
| 6 | | prior to the date fixed for the hearing. An order revoking or |
| 7 | | suspending a license under the provisions of this Section may |
| 8 | | be reviewed in the manner provided in Section 7-10 of this Act. |
| 9 | | No new license shall be granted to a person whose license has |
| 10 | | been revoked for a violation of this Section or, in case of |
| 11 | | suspension, shall such suspension be terminated until he has |
| 12 | | paid to the Department all taxes and penalties which he owes |
| 13 | | the State under the provisions of this Act. |
| 14 | | Every manufacturer or importing distributor who has, as |
| 15 | | verified by the Department, continuously complied with the |
| 16 | | conditions of the bond under this Act for a period of 2 years |
| 17 | | shall be considered to be a prior continuous compliance |
| 18 | | taxpayer. In determining the consecutive period of time for |
| 19 | | qualification as a prior continuous compliance taxpayer, any |
| 20 | | consecutive period of time of qualifying compliance |
| 21 | | immediately prior to the effective date of this amendatory Act |
| 22 | | of 1987 shall be credited to any manufacturer or importing |
| 23 | | distributor. |
| 24 | | A manufacturer or importing distributor that is a prior |
| 25 | | continuous compliance taxpayer under this Section and becomes |
| 26 | | a successor as the result of an acquisition, merger, or |
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| 1 | | consolidation of a manufacturer or importing distributor shall |
| 2 | | be deemed to be a prior continuous compliance taxpayer with |
| 3 | | respect to the acquired, merged, or consolidated entity. |
| 4 | | Every prior continuous compliance taxpayer shall be exempt |
| 5 | | from the bond requirements of this Act until the Department |
| 6 | | has determined the taxpayer to be delinquent in the filing of |
| 7 | | any return or deficient in the payment of any tax under this |
| 8 | | Act. Any taxpayer who fails to pay an admitted or established |
| 9 | | liability under this Act may also be required to post bond or |
| 10 | | other acceptable security with the Department guaranteeing the |
| 11 | | payment of such admitted or established liability. |
| 12 | | The Department shall discharge any surety and shall |
| 13 | | release and return any bond or security deposit assigned, |
| 14 | | pledged or otherwise provided to it by a taxpayer under this |
| 15 | | Section within 30 days after: (1) such taxpayer becomes a |
| 16 | | prior continuous compliance taxpayer; or (2) such taxpayer has |
| 17 | | ceased to collect receipts on which he is required to remit tax |
| 18 | | to the Department, has filed a final tax return, and has paid |
| 19 | | to the Department an amount sufficient to discharge his |
| 20 | | remaining tax liability as determined by the Department under |
| 21 | | this Act. |
| 22 | | (Source: P.A. 100-1171, eff. 1-4-19; 101-37, eff. 7-3-19.) |
| 23 | | Section 10. The Liquor Control Act of 1934 is amended by |
| 24 | | changing Sections 5-1, and 6-28.8 as follows: |
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| 1 | | (235 ILCS 5/5-1) (from Ch. 43, par. 115) |
| 2 | | Sec. 5-1. Licenses issued by the Illinois Liquor Control |
| 3 | | Commission shall be of the following classes: |
| 4 | | (a) Manufacturer's license - Class 1. Distiller, Class 2. |
| 5 | | Rectifier, Class 3. Brewer, Class 4. First Class Wine |
| 6 | | Manufacturer, Class 5. Second Class Wine Manufacturer, Class |
| 7 | | 6. First Class Winemaker, Class 7. Second Class Winemaker, |
| 8 | | Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller, |
| 9 | | Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft |
| 10 | | Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer, |
| 11 | | Class 14. Class 3 Brewer, |
| 12 | | (b) Distributor's license, |
| 13 | | (c) Importing Distributor's license, |
| 14 | | (d) Retailer's license, |
| 15 | | (e) Special Event Retailer's license (not-for-profit), |
| 16 | | (f) Railroad license, |
| 17 | | (g) Boat license, |
| 18 | | (h) Non-Beverage User's license, |
| 19 | | (i) Wine-maker's premises license, |
| 20 | | (j) Airplane license, |
| 21 | | (k) Foreign importer's license, |
| 22 | | (l) Broker's license, |
| 23 | | (m) Non-resident dealer's license, |
| 24 | | (n) Brew Pub license, |
| 25 | | (o) Auction liquor license, |
| 26 | | (p) Caterer retailer license, |
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| 1 | | (q) Special use permit license, |
| 2 | | (r) Winery shipper's license, |
| 3 | | (s) Craft distiller tasting permit, |
| 4 | | (t) Brewer warehouse permit, |
| 5 | | (u) Distilling pub license, |
| 6 | | (v) Craft distiller warehouse permit, |
| 7 | | (w) Beer showcase permit. |
| 8 | | No person, firm, partnership, corporation, or other legal |
| 9 | | business entity that is engaged in the manufacturing of wine |
| 10 | | may concurrently obtain and hold a wine-maker's license and a |
| 11 | | wine manufacturer's license. |
| 12 | | (a) A manufacturer's license shall allow the manufacture, |
| 13 | | importation in bulk, storage, distribution and sale of |
| 14 | | alcoholic liquor to persons without the State, as may be |
| 15 | | permitted by law, and to licensees in this State as follows: |
| 16 | | Class 1. A Distiller may make sales and deliveries of |
| 17 | | alcoholic liquor to distillers, rectifiers, importing |
| 18 | | distributors, distributors, and non-beverage users and to no |
| 19 | | other licensees. |
| 20 | | Class 2. A Rectifier, who is not a distiller, as defined |
| 21 | | herein, may make sales and deliveries of alcoholic liquor to |
| 22 | | rectifiers, importing distributors, distributors, retailers, |
| 23 | | and non-beverage users and to no other licensees. |
| 24 | | Class 3. A Brewer may make sales and deliveries of beer to |
| 25 | | importing distributors and distributors and may make sales as |
| 26 | | authorized under subsection (e) of Section 6-4 of this Act, |
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| 1 | | including any alcoholic liquor that subsection (e) of Section |
| 2 | | 6-4 authorizes a brewer to sell in its original package only to |
| 3 | | a non-licensee for pick-up by a non-licensee either within the |
| 4 | | interior of the brewery premises or at outside of the brewery |
| 5 | | premises at a curb-side or parking lot adjacent to the brewery |
| 6 | | premises, subject to any local ordinance. |
| 7 | | Class 4. A first class wine-manufacturer may make sales |
| 8 | | and deliveries of up to 50,000 gallons of wine to |
| 9 | | manufacturers, importing distributors and distributors, and to |
| 10 | | no other licensees. If a first-class wine-manufacturer |
| 11 | | manufactures beer, it shall also obtain and shall only be |
| 12 | | eligible for, in addition to any current license, a class 1 |
| 13 | | brewer license, shall not manufacture more than 930,000 |
| 14 | | gallons of beer per year, and shall not be a member of or |
| 15 | | affiliated with, directly or indirectly, a manufacturer that |
| 16 | | produces more than 930,000 gallons of beer per year. If the |
| 17 | | first-class wine-manufacturer manufactures spirits, it shall |
| 18 | | also obtain and shall only be eligible for, in addition to any |
| 19 | | current license, a class 1 craft distiller license, shall not |
| 20 | | manufacture more than 50,000 gallons of spirits per year, and |
| 21 | | shall not be a member of or affiliated with, directly or |
| 22 | | indirectly, a manufacturer that produces more than 50,000 |
| 23 | | gallons of spirits per year. A first-class wine-manufacturer |
| 24 | | shall be permitted to sell wine manufactured at the |
| 25 | | first-class wine-manufacturer premises to non-licensees. |
| 26 | | Class 5. A second class wine Wine manufacturer may make |
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| 1 | | sales and deliveries of more than 50,000 gallons of wine to |
| 2 | | manufacturers, importing distributors and distributors and to |
| 3 | | no other licensees. |
| 4 | | Class 6. A first-class wine-maker's license shall allow |
| 5 | | the manufacture of up to 50,000 gallons of wine per year, and |
| 6 | | the storage and sale of such wine to distributors in the State |
| 7 | | and to persons without the State, as may be permitted by law. A |
| 8 | | person who, prior to June 1, 2008 (the effective date of Public |
| 9 | | Act 95-634), is a holder of a first-class wine-maker's license |
| 10 | | and annually produces more than 25,000 gallons of its own wine |
| 11 | | and who distributes its wine to licensed retailers shall cease |
| 12 | | this practice on or before July 1, 2008 in compliance with |
| 13 | | Public Act 95-634. If a first-class wine-maker manufactures |
| 14 | | beer, it shall also obtain and shall only be eligible for, in |
| 15 | | addition to any current license, a class 1 brewer license, |
| 16 | | shall not manufacture more than 930,000 gallons of beer per |
| 17 | | year, and shall not be a member of or affiliated with, directly |
| 18 | | or indirectly, a manufacturer that produces more than 930,000 |
| 19 | | gallons of beer per year. If the first-class wine-maker |
| 20 | | manufactures spirits, it shall also obtain and shall only be |
| 21 | | eligible for, in addition to any current license, a class 1 |
| 22 | | craft distiller license, shall not manufacture more than |
| 23 | | 50,000 gallons of spirits per year, and shall not be a member |
| 24 | | of or affiliated with, directly or indirectly, a manufacturer |
| 25 | | that produces more than 50,000 gallons of spirits per year. A |
| 26 | | first-class wine-maker holding a class 1 brewer license or a |
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| 1 | | class 1 craft distiller license shall not be eligible for a |
| 2 | | wine-maker's premises license but shall be permitted to sell |
| 3 | | wine manufactured at the first-class wine-maker premises to |
| 4 | | non-licensees. |
| 5 | | Class 7. A second-class wine-maker's license shall allow |
| 6 | | the manufacture of up to 150,000 gallons of wine per year, and |
| 7 | | the storage and sale of such wine to distributors in this State |
| 8 | | and to persons without the State, as may be permitted by law. A |
| 9 | | person who, prior to June 1, 2008 (the effective date of Public |
| 10 | | Act 95-634), is a holder of a second-class wine-maker's |
| 11 | | license and annually produces more than 25,000 gallons of its |
| 12 | | own wine and who distributes its wine to licensed retailers |
| 13 | | shall cease this practice on or before July 1, 2008 in |
| 14 | | compliance with Public Act 95-634. If a second-class |
| 15 | | wine-maker manufactures beer, it shall also obtain and shall |
| 16 | | only be eligible for, in addition to any current license, a |
| 17 | | class 2 brewer license, shall not manufacture more than |
| 18 | | 3,720,000 gallons of beer per year, and shall not be a member |
| 19 | | of or affiliated with, directly or indirectly, a manufacturer |
| 20 | | that produces more than 3,720,000 gallons of beer per year. If |
| 21 | | a second-class wine-maker manufactures spirits, it shall also |
| 22 | | obtain and shall only be eligible for, in addition to any |
| 23 | | current license, a class 2 craft distiller license, shall not |
| 24 | | manufacture more than 100,000 gallons of spirits per year, and |
| 25 | | shall not be a member of or affiliated with, directly or |
| 26 | | indirectly, a manufacturer that produces more than 100,000 |
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| | SB0618 Enrolled | - 98 - | LRB104 06890 RPS 16926 b |
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| 1 | | gallons of spirits per year. |
| 2 | | Class 8. A limited wine-manufacturer may make sales and |
| 3 | | deliveries not to exceed 40,000 gallons of wine per year to |
| 4 | | distributors, and to non-licensees in accordance with the |
| 5 | | provisions of this Act. |
| 6 | | Class 9. A craft distiller license, which may only be held |
| 7 | | by a class 1 craft distiller licensee or class 2 craft |
| 8 | | distiller licensee but not held by both a class 1 craft |
| 9 | | distiller licensee and a class 2 craft distiller licensee, |
| 10 | | shall grant all rights conveyed by either: (i) a class 1 craft |
| 11 | | distiller license if the craft distiller holds a class 1 craft |
| 12 | | distiller license; or (ii) a class 2 craft distiller licensee |
| 13 | | if the craft distiller holds a class 2 craft distiller |
| 14 | | license. |
| 15 | | Class 10. A class 1 craft distiller license, which may |
| 16 | | only be issued to a licensed craft distiller or licensed |
| 17 | | non-resident dealer, shall allow the manufacture of up to |
| 18 | | 50,000 gallons of spirits per year provided that the class 1 |
| 19 | | craft distiller licensee does not manufacture more than a |
| 20 | | combined 50,000 gallons of spirits per year and is not a member |
| 21 | | of or affiliated with, directly or indirectly, a manufacturer |
| 22 | | that produces more than 50,000 gallons of spirits per year. If |
| 23 | | a class 1 craft distiller manufactures beer, it shall also |
| 24 | | obtain and shall only be eligible for, in addition to any |
| 25 | | current license, a class 1 brewer license, shall not |
| 26 | | manufacture more than 930,000 gallons of beer per year, and |
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| | SB0618 Enrolled | - 99 - | LRB104 06890 RPS 16926 b |
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| 1 | | shall not be a member of or affiliated with, directly or |
| 2 | | indirectly, a manufacturer that produces more than 930,000 |
| 3 | | gallons of beer per year. If a class 1 craft distiller |
| 4 | | manufactures wine, it shall also obtain and shall only be |
| 5 | | eligible for, in addition to any current license, a |
| 6 | | first-class wine-manufacturer license or a first-class |
| 7 | | wine-maker's license, shall not manufacture more than 50,000 |
| 8 | | gallons of wine per year, and shall not be a member of or |
| 9 | | affiliated with, directly or indirectly, a manufacturer that |
| 10 | | produces more than 50,000 gallons of wine per year. A class 1 |
| 11 | | craft distiller licensee may make sales and deliveries to |
| 12 | | importing distributors and distributors and to retail |
| 13 | | licensees in accordance with the conditions set forth in |
| 14 | | paragraph (19) of subsection (a) of Section 3-12 of this Act. |
| 15 | | However, the aggregate amount of spirits sold to non-licensees |
| 16 | | and sold or delivered to retail licensees may not exceed 5,000 |
| 17 | | gallons per year. |
| 18 | | A class 1 craft distiller licensee may sell up to 5,000 |
| 19 | | gallons of such spirits to non-licensees to the extent |
| 20 | | permitted by any exemption approved by the State Commission |
| 21 | | pursuant to Section 6-4 of this Act. A class 1 craft distiller |
| 22 | | license holder may store such spirits at a non-contiguous |
| 23 | | licensed location, but at no time shall a class 1 craft |
| 24 | | distiller license holder directly or indirectly produce in the |
| 25 | | aggregate more than 50,000 gallons of spirits per year. |
| 26 | | A class 1 craft distiller licensee may hold more than one |
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| | SB0618 Enrolled | - 100 - | LRB104 06890 RPS 16926 b |
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| 1 | | class 1 craft distiller's license. However, a class 1 craft |
| 2 | | distiller that holds more than one class 1 craft distiller |
| 3 | | license shall not manufacture, in the aggregate, more than |
| 4 | | 50,000 gallons of spirits by distillation per year and shall |
| 5 | | not sell, in the aggregate, more than 5,000 gallons of such |
| 6 | | spirits to non-licensees in accordance with an exemption |
| 7 | | approved by the State Commission pursuant to Section 6-4 of |
| 8 | | this Act. |
| 9 | | Class 11. A class 2 craft distiller license, which may |
| 10 | | only be issued to a licensed craft distiller or licensed |
| 11 | | non-resident dealer, shall allow the manufacture of up to |
| 12 | | 100,000 gallons of spirits per year provided that the class 2 |
| 13 | | craft distiller licensee does not manufacture more than a |
| 14 | | combined 100,000 gallons of spirits per year and is not a |
| 15 | | member of or affiliated with, directly or indirectly, a |
| 16 | | manufacturer that produces more than 100,000 gallons of |
| 17 | | spirits per year. If a class 2 craft distiller manufactures |
| 18 | | beer, it shall also obtain and shall only be eligible for, in |
| 19 | | addition to any current license, a class 2 brewer license, |
| 20 | | shall not manufacture more than 3,720,000 gallons of beer per |
| 21 | | year, and shall not be a member of or affiliated with, directly |
| 22 | | or indirectly, a manufacturer that produces more than |
| 23 | | 3,720,000 gallons of beer per year. If a class 2 craft |
| 24 | | distiller manufactures wine, it shall also obtain and shall |
| 25 | | only be eligible for, in addition to any current license, a |
| 26 | | second-class wine-maker's license, shall not manufacture more |
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| | SB0618 Enrolled | - 101 - | LRB104 06890 RPS 16926 b |
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| 1 | | than 150,000 gallons of wine per year, and shall not be a |
| 2 | | member of or affiliated with, directly or indirectly, a |
| 3 | | manufacturer that produces more than 150,000 gallons of wine |
| 4 | | per year. A class 2 craft distiller licensee may make sales and |
| 5 | | deliveries to importing distributors and distributors, but |
| 6 | | shall not make sales or deliveries to any other licensee. If |
| 7 | | the State Commission provides prior approval, a class 2 craft |
| 8 | | distiller licensee may annually transfer up to 100,000 gallons |
| 9 | | of spirits manufactured by that class 2 craft distiller |
| 10 | | licensee to the premises of a licensed class 2 craft distiller |
| 11 | | wholly owned and operated by the same licensee. A class 2 craft |
| 12 | | distiller may transfer spirits to a distilling pub wholly |
| 13 | | owned and operated by the class 2 craft distiller subject to |
| 14 | | the following limitations and restrictions: (i) the transfer |
| 15 | | shall not annually exceed more than 5,000 gallons; (ii) the |
| 16 | | annual amount transferred shall reduce the distilling pub's |
| 17 | | annual permitted production limit; (iii) all spirits |
| 18 | | transferred shall be subject to Article VIII of this Act; (iv) |
| 19 | | a written record shall be maintained by the distiller and |
| 20 | | distilling pub specifying the amount, date of delivery, and |
| 21 | | receipt of the product by the distilling pub; and (v) the |
| 22 | | distilling pub shall be located no farther than 80 miles from |
| 23 | | the class 2 craft distiller's licensed location. |
| 24 | | A class 2 craft distiller shall, prior to transferring |
| 25 | | spirits to a distilling pub wholly owned by the class 2 craft |
| 26 | | distiller, furnish a written notice to the State Commission of |
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| | SB0618 Enrolled | - 102 - | LRB104 06890 RPS 16926 b |
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| 1 | | intent to transfer spirits setting forth the name and address |
| 2 | | of the distilling pub and shall annually submit to the State |
| 3 | | Commission a verified report identifying the total gallons of |
| 4 | | spirits transferred to the distilling pub wholly owned by the |
| 5 | | class 2 craft distiller. |
| 6 | | A class 2 craft distiller license holder may store such |
| 7 | | spirits at a non-contiguous licensed location, but at no time |
| 8 | | shall a class 2 craft distiller license holder directly or |
| 9 | | indirectly produce in the aggregate more than 100,000 gallons |
| 10 | | of spirits per year. |
| 11 | | Class 12. A class 1 brewer license, which may only be |
| 12 | | issued to a licensed brewer or licensed non-resident dealer, |
| 13 | | shall allow the manufacture of up to 930,000 gallons of beer |
| 14 | | per year provided that the class 1 brewer licensee does not |
| 15 | | manufacture more than a combined 930,000 gallons of beer per |
| 16 | | year and is not a member of or affiliated with, directly or |
| 17 | | indirectly, a manufacturer that produces more than 930,000 |
| 18 | | gallons of beer per year. If a class 1 brewer manufactures |
| 19 | | spirits, it shall also obtain and shall only be eligible for, |
| 20 | | in addition to any current license, a class 1 craft distiller |
| 21 | | license, shall not manufacture more than 50,000 gallons of |
| 22 | | spirits per year, and shall not be a member of or affiliated |
| 23 | | with, directly or indirectly, a manufacturer that produces |
| 24 | | more than 50,000 gallons of spirits per year. If a class 1 |
| 25 | | craft brewer manufactures wine, it shall also obtain and shall |
| 26 | | only be eligible for, in addition to any current license, a |
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| | SB0618 Enrolled | - 103 - | LRB104 06890 RPS 16926 b |
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| 1 | | first-class wine-manufacturer license or a first-class |
| 2 | | wine-maker's license, shall not manufacture more than 50,000 |
| 3 | | gallons of wine per year, and shall not be a member of or |
| 4 | | affiliated with, directly or indirectly, a manufacturer that |
| 5 | | produces more than 50,000 gallons of wine per year. A class 1 |
| 6 | | brewer licensee may make sales and deliveries to importing |
| 7 | | distributors and distributors and to retail licensees in |
| 8 | | accordance with the conditions set forth in paragraph (18) of |
| 9 | | subsection (a) of Section 3-12 of this Act. If the State |
| 10 | | Commission provides prior approval, a class 1 brewer may |
| 11 | | annually transfer up to 930,000 gallons of beer manufactured |
| 12 | | by that class 1 brewer to the premises of a licensed class 1 |
| 13 | | brewer wholly owned and operated by the same licensee. |
| 14 | | Class 13. A class 2 brewer license, which may only be |
| 15 | | issued to a licensed brewer or licensed non-resident dealer, |
| 16 | | shall allow the manufacture of up to 3,720,000 gallons of beer |
| 17 | | per year provided that the class 2 brewer licensee does not |
| 18 | | manufacture more than a combined 3,720,000 gallons of beer per |
| 19 | | year and is not a member of or affiliated with, directly or |
| 20 | | indirectly, a manufacturer that produces more than 3,720,000 |
| 21 | | gallons of beer per year. If a class 2 brewer manufactures |
| 22 | | spirits, it shall also obtain and shall only be eligible for, |
| 23 | | in addition to any current license, a class 2 craft distiller |
| 24 | | license, shall not manufacture more than 100,000 gallons of |
| 25 | | spirits per year, and shall not be a member of or affiliated |
| 26 | | with, directly or indirectly, a manufacturer that produces |
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| | SB0618 Enrolled | - 104 - | LRB104 06890 RPS 16926 b |
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| 1 | | more than 100,000 gallons of spirits per year. If a class 2 |
| 2 | | craft distiller manufactures wine, it shall also obtain and |
| 3 | | shall only be eligible for, in addition to any current |
| 4 | | license, a second-class wine-maker's license, shall not |
| 5 | | manufacture more than 150,000 gallons of wine per year, and |
| 6 | | shall not be a member of or affiliated with, directly or |
| 7 | | indirectly, a manufacturer that produces more than 150,000 |
| 8 | | gallons of wine a year. A class 2 brewer licensee may make |
| 9 | | sales and deliveries to importing distributors and |
| 10 | | distributors, but shall not make sales or deliveries to any |
| 11 | | other licensee. If the State Commission provides prior |
| 12 | | approval, a class 2 brewer licensee may annually transfer up |
| 13 | | to 3,720,000 gallons of beer manufactured by that class 2 |
| 14 | | brewer licensee to the premises of a licensed class 2 brewer |
| 15 | | wholly owned and operated by the same licensee. |
| 16 | | A class 2 brewer may transfer beer to a brew pub wholly |
| 17 | | owned and operated by the class 2 brewer subject to the |
| 18 | | following limitations and restrictions: (i) the transfer shall |
| 19 | | not annually exceed more than 31,000 gallons; (ii) the annual |
| 20 | | amount transferred shall reduce the brew pub's annual |
| 21 | | permitted production limit; (iii) all beer transferred shall |
| 22 | | be subject to Article VIII of this Act; (iv) a written record |
| 23 | | shall be maintained by the brewer and brew pub specifying the |
| 24 | | amount, date of delivery, and receipt of the product by the |
| 25 | | brew pub; and (v) the brew pub shall be located no farther than |
| 26 | | 80 miles from the class 2 brewer's licensed location. |
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| | SB0618 Enrolled | - 105 - | LRB104 06890 RPS 16926 b |
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| 1 | | A class 2 brewer shall, prior to transferring beer to a |
| 2 | | brew pub wholly owned by the class 2 brewer, furnish a written |
| 3 | | notice to the State Commission of intent to transfer beer |
| 4 | | setting forth the name and address of the brew pub and shall |
| 5 | | annually submit to the State Commission a verified report |
| 6 | | identifying the total gallons of beer transferred to the brew |
| 7 | | pub wholly owned by the class 2 brewer. |
| 8 | | Class 14. A class 3 brewer license, which may be issued to |
| 9 | | a brewer or a non-resident dealer, shall allow the manufacture |
| 10 | | of no more than 465,000 gallons of beer per year and no more |
| 11 | | than 155,000 gallons at a single brewery premises, and shall |
| 12 | | allow the sale of no more than 6,200 gallons of beer from each |
| 13 | | in-state or out-of-state class 3 brewery premises, or 18,600 |
| 14 | | gallons in the aggregate, to retail licensees, class 1 |
| 15 | | brewers, class 2 brewers, and class 3 brewers as long as the |
| 16 | | class 3 brewer licensee does not manufacture more than a |
| 17 | | combined 465,000 gallons of beer per year and is not a member |
| 18 | | of or affiliated with, directly or indirectly, a manufacturer |
| 19 | | that produces more than 465,000 gallons of beer per year to |
| 20 | | make sales to importing distributors, distributors, retail |
| 21 | | licensees, brewers, class 1 brewers, class 2 brewers, and |
| 22 | | class 3 brewers in accordance with the conditions set forth in |
| 23 | | paragraph (20) of subsection (a) of Section 3-12. If the State |
| 24 | | Commission provides prior approval, a class 3 brewer may |
| 25 | | annually transfer up to 155,000 gallons of beer manufactured |
| 26 | | by that class 3 brewer to the premises of a licensed class 3 |
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| | SB0618 Enrolled | - 106 - | LRB104 06890 RPS 16926 b |
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| 1 | | brewer wholly owned and operated by the same licensee. A class |
| 2 | | 3 brewer shall manufacture beer at the brewer's class 3 |
| 3 | | designated licensed premises, and may sell beer as otherwise |
| 4 | | provided in this Act. |
| 5 | | (a-1) A manufacturer that which is licensed in this State |
| 6 | | to make sales or deliveries of alcoholic liquor to licensed |
| 7 | | distributors or importing distributors and which enlists |
| 8 | | agents, representatives, or individuals acting on its behalf |
| 9 | | who contact licensed retailers on a regular and continual |
| 10 | | basis in this State must register those agents, |
| 11 | | representatives, or persons acting on its behalf with the |
| 12 | | State Commission. |
| 13 | | Registration of agents, representatives, or persons acting |
| 14 | | on behalf of a manufacturer is fulfilled by submitting a form |
| 15 | | to the State Commission. The form shall be developed by the |
| 16 | | State Commission and shall include the name and address of the |
| 17 | | applicant, the name and address of the manufacturer he or she |
| 18 | | represents, the territory or areas assigned to sell to or |
| 19 | | discuss pricing terms of alcoholic liquor, and any other |
| 20 | | questions deemed appropriate and necessary. All statements in |
| 21 | | the forms required to be made by law or by rule shall be deemed |
| 22 | | material, and any person who knowingly misstates any material |
| 23 | | fact under oath in an application is guilty of a Class B |
| 24 | | misdemeanor. Fraud, misrepresentation, false statements, |
| 25 | | misleading statements, evasions, or suppression of material |
| 26 | | facts in the securing of a registration are grounds for |
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| | SB0618 Enrolled | - 107 - | LRB104 06890 RPS 16926 b |
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| 1 | | suspension or revocation of the registration. The State |
| 2 | | Commission shall post a list of registered agents on the State |
| 3 | | Commission's website. |
| 4 | | (b) A distributor's license shall allow (i) the wholesale |
| 5 | | purchase and storage of alcoholic liquors and sale of |
| 6 | | alcoholic liquors to licensees in this State and to persons |
| 7 | | without the State, as may be permitted by law; (ii) the sale of |
| 8 | | beer, cider, mead, or any combination thereof to brewers, |
| 9 | | class 1 brewers, and class 2 brewers that, pursuant to |
| 10 | | subsection (e) of Section 6-4 of this Act, sell beer, cider, |
| 11 | | mead, or any combination thereof to non-licensees at their |
| 12 | | breweries; (iii) the sale of vermouth to class 1 craft |
| 13 | | distillers and class 2 craft distillers that, pursuant to |
| 14 | | subsection (e) of Section 6-4 of this Act, sell spirits, |
| 15 | | vermouth, or both spirits and vermouth to non-licensees at |
| 16 | | their distilleries; or (iv) as otherwise provided in this Act. |
| 17 | | No person licensed as a distributor shall be granted a |
| 18 | | non-resident dealer's license. |
| 19 | | (c) An importing distributor's license may be issued to |
| 20 | | and held by those only who are duly licensed distributors, |
| 21 | | upon the filing of an application by a duly licensed |
| 22 | | distributor, with the State Commission and the State |
| 23 | | Commission shall, without the payment of any fee, immediately |
| 24 | | issue such importing distributor's license to the applicant, |
| 25 | | which shall allow the importation of alcoholic liquor by the |
| 26 | | licensee into this State from any point in the United States |
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| | SB0618 Enrolled | - 108 - | LRB104 06890 RPS 16926 b |
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| 1 | | outside this State, and the purchase of alcoholic liquor in |
| 2 | | barrels, casks, or other bulk containers and the bottling of |
| 3 | | such alcoholic liquors before resale thereof, but all bottles |
| 4 | | or containers so filled shall be sealed, labeled, stamped, and |
| 5 | | otherwise made to comply with all provisions, rules, and |
| 6 | | regulations governing manufacturers in the preparation and |
| 7 | | bottling of alcoholic liquors. The importing distributor's |
| 8 | | license shall permit such licensee to purchase alcoholic |
| 9 | | liquor from Illinois licensed non-resident dealers and foreign |
| 10 | | importers only. No person licensed as an importing distributor |
| 11 | | shall be granted a non-resident dealer's license. |
| 12 | | (d) A retailer's license shall allow the licensee to sell |
| 13 | | and offer for sale at retail, only in or from the premises |
| 14 | | specified in the license, alcoholic liquor for use or |
| 15 | | consumption, but not for resale in any form except as |
| 16 | | otherwise provided in this Act. Except as provided in Section |
| 17 | | 6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit, |
| 18 | | remove, or restrict the ability of a holder of a retailer's |
| 19 | | license to transfer or ship alcoholic liquor to the purchaser |
| 20 | | for use or consumption subject to any applicable local law or |
| 21 | | ordinance. For the purposes of this Section, "shipping" means |
| 22 | | the movement of alcoholic liquor from a licensed retailer to a |
| 23 | | consumer via a common carrier. Except as provided in Section |
| 24 | | 6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit, |
| 25 | | remove, or restrict the ability of a holder of a retailer's |
| 26 | | license to deliver alcoholic liquor to the purchaser for use |
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| | SB0618 Enrolled | - 109 - | LRB104 06890 RPS 16926 b |
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| 1 | | or consumption. The delivery shall be made only within 12 |
| 2 | | hours from the time the alcoholic liquor leaves the licensed |
| 3 | | premises of the retailer for delivery. For the purposes of |
| 4 | | this Section, "delivery" means the movement of alcoholic |
| 5 | | liquor purchased from a licensed retailer to a consumer |
| 6 | | through the following methods: |
| 7 | | (1) delivery within licensed retailer's parking lot, |
| 8 | | including curbside, for pickup by the consumer; |
| 9 | | (2) delivery by an owner, officer, director, |
| 10 | | shareholder, or employee of the licensed retailer; or |
| 11 | | (3) delivery by a third-party contractor, independent |
| 12 | | contractor, or agent with whom the licensed retailer has |
| 13 | | contracted to make deliveries of alcoholic liquors. |
| 14 | | Under paragraph subsection (1), (2), or (3), delivery |
| 15 | | shall not include the use of common carriers. |
| 16 | | A retail licensee may use any website, mobile application, |
| 17 | | or similar platform that facilitates the sale or delivery of |
| 18 | | food, beverages, or goods and is owned or operated by the |
| 19 | | retail licensee, third-party contractor, an independent |
| 20 | | contractor, or an agent with whom the licensed retailer has |
| 21 | | contracted to facilitate deliveries or sales of alcoholic |
| 22 | | liquors under this Section. The use of any website, mobile |
| 23 | | application, or similar platform to facilitate deliveries or |
| 24 | | sales of alcoholic liquors shall not be considered an illegal |
| 25 | | sale, resale, transfer, barter, or exchange of alcohol under |
| 26 | | this Act. |
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| | SB0618 Enrolled | - 110 - | LRB104 06890 RPS 16926 b |
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| 1 | | Any retail license issued to a manufacturer shall only |
| 2 | | permit the manufacturer to sell beer at retail on the premises |
| 3 | | actually occupied by the manufacturer. For the purpose of |
| 4 | | further describing the type of business conducted at a retail |
| 5 | | licensed premises, a retailer's licensee may be designated by |
| 6 | | the State Commission as (i) an on premise consumption |
| 7 | | retailer, (ii) an off premise sale retailer, or (iii) a |
| 8 | | combined on premise consumption and off premise sale retailer. |
| 9 | | Except for a municipality with a population of more than |
| 10 | | 1,000,000 inhabitants, a home rule unit may not regulate the |
| 11 | | delivery of alcoholic liquor or require a retail licensee to |
| 12 | | obtain a separate or additional license for the delivery |
| 13 | | alcoholic liquor inconsistent with this subsection. This |
| 14 | | paragraph is a limitation under subsection (i) of Section 6 of |
| 15 | | Article VII of the Illinois Constitution on the concurrent |
| 16 | | exercise by home rule units of powers and functions exercised |
| 17 | | by the State. A non-home rule municipality may not regulate |
| 18 | | the delivery of alcoholic liquor or require a retail licensee |
| 19 | | to obtain a separate or additional license for the delivery of |
| 20 | | alcoholic liquor inconsistent with this subsection. |
| 21 | | Notwithstanding any other provision of this subsection |
| 22 | | (d), a retail licensee may sell alcoholic liquors to a special |
| 23 | | event retailer licensee for resale to the extent permitted |
| 24 | | under subsection (e). |
| 25 | | The requirements in subsection (b-5) of Section 6-29 apply |
| 26 | | only to a winery shipper licensee that ships wine via common |
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| | SB0618 Enrolled | - 111 - | LRB104 06890 RPS 16926 b |
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| 1 | | carrier and do not apply to a winery shipper licensee or a |
| 2 | | retail licensee that delivers, or causes to be delivered, |
| 3 | | alcohol pursuant to the methods outlined in item (1), (2), or |
| 4 | | (3) of this subsection. |
| 5 | | Except as provided in this Section, for a manufacturer |
| 6 | | with a retail license, nothing in this Section shall be |
| 7 | | construed to prohibit an on-premises consumption retailer, |
| 8 | | off-premises sale retailer, or combined on-premises |
| 9 | | consumption and off-premises sale retailer from delivering |
| 10 | | alcohol pursuant to this Section. |
| 11 | | A retail licensee shall contract only with a third-party |
| 12 | | contractor, independent contractor, or agent to facilitate or |
| 13 | | make deliveries of alcoholic liquors that has a policy to |
| 14 | | verify the age of the person to whom the alcoholic liquor is |
| 15 | | being delivered based on the person's valid proof of identity |
| 16 | | indicating the person is age 21 or over. A retail licensee |
| 17 | | shall not be civilly liable for sales or deliveries made to |
| 18 | | intoxicated persons or persons under the age of 21 if the |
| 19 | | delivery of alcoholic liquor was conducted by a third-party |
| 20 | | contractor, independent contractor, or agent with whom the |
| 21 | | licensed retailer has contracted to make deliveries of |
| 22 | | alcoholic liquor. |
| 23 | | (e) A special event retailer's license (not-for-profit) |
| 24 | | shall permit the licensee to purchase alcoholic liquors from |
| 25 | | an Illinois licensed distributor (unless the licensee |
| 26 | | purchases less than $500 of alcoholic liquors for the special |
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| | SB0618 Enrolled | - 112 - | LRB104 06890 RPS 16926 b |
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| 1 | | event, in which case the licensee may purchase the alcoholic |
| 2 | | liquors from a licensed retailer) and shall allow the licensee |
| 3 | | to sell and offer for sale, at retail, alcoholic liquors for |
| 4 | | use or consumption, but not for resale in any form and only at |
| 5 | | the location and on the specific dates designated for the |
| 6 | | special event in the license. An applicant for a special event |
| 7 | | retailer license must (i) furnish with the application: (A) a |
| 8 | | resale number issued under Section 2c of the Retailers' |
| 9 | | Occupation Tax Act or evidence that the applicant is |
| 10 | | registered under Section 2a of the Retailers' Occupation Tax |
| 11 | | Act, (B) a current, valid exemption identification number |
| 12 | | issued under Section 1g of the Retailers' Occupation Tax Act, |
| 13 | | and a certification to the State Commission that the purchase |
| 14 | | of alcoholic liquors will be a tax-exempt purchase, or (C) a |
| 15 | | statement that the applicant is not registered under Section |
| 16 | | 2a of the Retailers' Occupation Tax Act, does not hold a resale |
| 17 | | number under Section 2c of the Retailers' Occupation Tax Act, |
| 18 | | and does not hold an exemption number under Section 1g of the |
| 19 | | Retailers' Occupation Tax Act, in which event the State |
| 20 | | Commission shall set forth on the special event retailer's |
| 21 | | license a statement to that effect; (ii) submit with the |
| 22 | | application proof satisfactory to the State Commission that |
| 23 | | the applicant will provide dram shop liability insurance in |
| 24 | | the maximum limits; and (iii) show proof satisfactory to the |
| 25 | | State Commission that the applicant has obtained local |
| 26 | | authority approval. |
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| | SB0618 Enrolled | - 113 - | LRB104 06890 RPS 16926 b |
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| 1 | | Nothing in this Act prohibits an Illinois licensed |
| 2 | | distributor from offering credit or a refund for unused, |
| 3 | | salable alcoholic liquors to a holder of a special event |
| 4 | | retailer's license or the special event retailer's licensee |
| 5 | | from accepting the credit or refund of alcoholic liquors at |
| 6 | | the conclusion of the event specified in the license. |
| 7 | | (f) A railroad license shall permit the licensee to import |
| 8 | | alcoholic liquors into this State from any point in the United |
| 9 | | States outside this State and to store such alcoholic liquors |
| 10 | | in this State; to make wholesale purchases of alcoholic |
| 11 | | liquors directly from manufacturers, foreign importers, |
| 12 | | distributors and importing distributors from within or outside |
| 13 | | this State; and to store such alcoholic liquors in this State; |
| 14 | | provided that the above powers may be exercised only in |
| 15 | | connection with the importation, purchase or storage of |
| 16 | | alcoholic liquors to be sold or dispensed on a club, buffet, |
| 17 | | lounge, or dining car operated on an electric, gas, or steam |
| 18 | | railway in this State; and provided further, that railroad |
| 19 | | licensees exercising the above powers shall be subject to all |
| 20 | | provisions of Article VIII of this Act as applied to importing |
| 21 | | distributors. A railroad license shall also permit the |
| 22 | | licensee to sell or dispense alcoholic liquors on any club, |
| 23 | | buffet, lounge, or dining car operated on an electric, gas, or |
| 24 | | steam railway regularly operated by a common carrier in this |
| 25 | | State, but shall not permit the sale for resale of any |
| 26 | | alcoholic liquors to any licensee within this State. A license |
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| | SB0618 Enrolled | - 114 - | LRB104 06890 RPS 16926 b |
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| 1 | | shall be obtained for each car in which such sales are made. |
| 2 | | (g) A boat license shall allow the sale of alcoholic |
| 3 | | liquor in individual drinks, on any passenger boat regularly |
| 4 | | operated as a common carrier on navigable waters in this State |
| 5 | | or on any riverboat operated under the Illinois Gambling Act, |
| 6 | | which boat or riverboat maintains a public dining room or |
| 7 | | restaurant thereon. |
| 8 | | (h) A non-beverage user's license shall allow the licensee |
| 9 | | to purchase alcoholic liquor from a licensed manufacturer or |
| 10 | | importing distributor, without the imposition of any tax upon |
| 11 | | the business of such licensed manufacturer or importing |
| 12 | | distributor as to such alcoholic liquor to be used by such |
| 13 | | licensee solely for the non-beverage purposes set forth in |
| 14 | | subsection (a) of Section 8-1 of this Act, and such licenses |
| 15 | | shall be divided and classified and shall permit the purchase, |
| 16 | | possession, and use of limited and stated quantities of |
| 17 | | alcoholic liquor as follows: |
| 18 | | Class 1, not to exceed ......................... 500 gallons
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| 19 | | Class 2, not to exceed ....................... 1,000 gallons
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| 20 | | Class 3, not to exceed ....................... 5,000 gallons
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| 21 | | Class 4, not to exceed ...................... 10,000 gallons
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| 22 | | Class 5, not to exceed ....................... 50,000 gallons |
| 23 | | (i) A wine-maker's premises license shall allow a licensee |
| 24 | | that concurrently holds a first-class wine-maker's license to |
| 25 | | sell and offer for sale at retail in the premises specified in |
| 26 | | such license not more than 50,000 gallons of the first-class |
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| | SB0618 Enrolled | - 115 - | LRB104 06890 RPS 16926 b |
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| 1 | | wine-maker's wine that is made at the first-class wine-maker's |
| 2 | | licensed premises per year for use or consumption, but not for |
| 3 | | resale in any form. A wine-maker's premises license shall |
| 4 | | allow a licensee who concurrently holds a second-class |
| 5 | | wine-maker's license to sell and offer for sale at retail in |
| 6 | | the premises specified in such license up to 100,000 gallons |
| 7 | | of the second-class wine-maker's wine that is made at the |
| 8 | | second-class wine-maker's licensed premises per year for use |
| 9 | | or consumption but not for resale in any form. A first-class |
| 10 | | wine-maker that concurrently holds a class 1 brewer license or |
| 11 | | a class 1 craft distiller license shall not be eligible to hold |
| 12 | | a wine-maker's premises license. A wine-maker's premises |
| 13 | | license shall allow a licensee that concurrently holds a |
| 14 | | first-class wine-maker's license or a second-class |
| 15 | | wine-maker's license to sell and offer for sale at retail at |
| 16 | | the premises specified in the wine-maker's premises license, |
| 17 | | for use or consumption but not for resale in any form, any |
| 18 | | beer, wine, and spirits purchased from a licensed distributor. |
| 19 | | Upon approval from the State Commission, a wine-maker's |
| 20 | | premises license shall allow the licensee to sell and offer |
| 21 | | for sale at (i) the wine-maker's licensed premises and (ii) at |
| 22 | | up to 2 additional locations for use and consumption and not |
| 23 | | for resale. Each location shall require additional licensing |
| 24 | | per location as specified in Section 5-3 of this Act. A |
| 25 | | wine-maker's premises licensee shall secure liquor liability |
| 26 | | insurance coverage in an amount at least equal to the maximum |
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| | SB0618 Enrolled | - 116 - | LRB104 06890 RPS 16926 b |
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| 1 | | liability amounts set forth in subsection (a) of Section 6-21 |
| 2 | | of this Act. |
| 3 | | (j) An airplane license shall permit the licensee to |
| 4 | | import alcoholic liquors into this State from any point in the |
| 5 | | United States outside this State and to store such alcoholic |
| 6 | | liquors in this State; to make wholesale purchases of |
| 7 | | alcoholic liquors directly from manufacturers, foreign |
| 8 | | importers, distributors, and importing distributors from |
| 9 | | within or outside this State; and to store such alcoholic |
| 10 | | liquors in this State; provided that the above powers may be |
| 11 | | exercised only in connection with the importation, purchase, |
| 12 | | or storage of alcoholic liquors to be sold or dispensed on an |
| 13 | | airplane; and provided further, that airplane licensees |
| 14 | | exercising the above powers shall be subject to all provisions |
| 15 | | of Article VIII of this Act as applied to importing |
| 16 | | distributors. An airplane licensee shall also permit the sale |
| 17 | | or dispensing of alcoholic liquors on any passenger airplane |
| 18 | | regularly operated by a common carrier in this State, but |
| 19 | | shall not permit the sale for resale of any alcoholic liquors |
| 20 | | to any licensee within this State. A single airplane license |
| 21 | | shall be required of an airline company if liquor service is |
| 22 | | provided on board aircraft in this State. The annual fee for |
| 23 | | such license shall be as determined in Section 5-3. |
| 24 | | (k) A foreign importer's license shall permit such |
| 25 | | licensee to purchase alcoholic liquor from Illinois licensed |
| 26 | | non-resident dealers only, and to import alcoholic liquor |
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| | SB0618 Enrolled | - 117 - | LRB104 06890 RPS 16926 b |
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| 1 | | other than in bulk from any point outside the United States and |
| 2 | | to sell such alcoholic liquor to Illinois licensed importing |
| 3 | | distributors and to no one else in Illinois; provided that (i) |
| 4 | | the foreign importer registers with the State Commission every |
| 5 | | brand of alcoholic liquor that it proposes to sell to Illinois |
| 6 | | licensees during the license period, (ii) the foreign importer |
| 7 | | complies with all of the provisions of Section 6-9 of this Act |
| 8 | | with respect to registration of such Illinois licensees as may |
| 9 | | be granted the right to sell such brands at wholesale, and |
| 10 | | (iii) the foreign importer complies with the provisions of |
| 11 | | Sections 6-5 and 6-6 of this Act to the same extent that these |
| 12 | | provisions apply to manufacturers. |
| 13 | | (l) (i) A broker's license shall be required of all |
| 14 | | persons who solicit orders for, offer to sell, or offer to |
| 15 | | supply alcoholic liquor to retailers in the State of Illinois, |
| 16 | | or who offer to retailers to ship or cause to be shipped or to |
| 17 | | make contact with distillers, craft distillers, rectifiers, |
| 18 | | brewers or manufacturers or any other party within or without |
| 19 | | the State of Illinois in order that alcoholic liquors be |
| 20 | | shipped to a distributor, importing distributor, or foreign |
| 21 | | importer, whether such solicitation or offer is consummated |
| 22 | | within or without the State of Illinois. |
| 23 | | No holder of a retailer's license issued by the Illinois |
| 24 | | Liquor Control Commission shall purchase or receive any |
| 25 | | alcoholic liquor, the order for which was solicited or offered |
| 26 | | for sale to such retailer by a broker unless the broker is the |
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| | SB0618 Enrolled | - 118 - | LRB104 06890 RPS 16926 b |
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| 1 | | holder of a valid broker's license. |
| 2 | | The broker shall, upon the acceptance by a retailer of the |
| 3 | | broker's solicitation of an order or offer to sell or supply or |
| 4 | | deliver or have delivered alcoholic liquors, promptly forward |
| 5 | | to the Illinois Liquor Control Commission a notification of |
| 6 | | said transaction in such form as the State Commission may by |
| 7 | | regulations prescribe. |
| 8 | | (ii) A broker's license shall be required of a person |
| 9 | | within this State, other than a retail licensee, who, for a fee |
| 10 | | or commission, promotes, solicits, or accepts orders for |
| 11 | | alcoholic liquor, for use or consumption and not for resale, |
| 12 | | to be shipped from this State and delivered to residents |
| 13 | | outside of this State by an express company, common carrier, |
| 14 | | or contract carrier. This Section does not apply to any person |
| 15 | | who promotes, solicits, or accepts orders for wine as |
| 16 | | specifically authorized in Section 6-29 of this Act. |
| 17 | | A broker's license under this subsection (l) shall not |
| 18 | | entitle the holder to buy or sell any alcoholic liquors for his |
| 19 | | own account or to take or deliver title to such alcoholic |
| 20 | | liquors. |
| 21 | | This subsection (l) shall not apply to distributors, |
| 22 | | employees of distributors, or employees of a manufacturer who |
| 23 | | has registered the trademark, brand, or name of the alcoholic |
| 24 | | liquor pursuant to Section 6-9 of this Act, and who regularly |
| 25 | | sells such alcoholic liquor in the State of Illinois only to |
| 26 | | its registrants thereunder. |
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| | SB0618 Enrolled | - 119 - | LRB104 06890 RPS 16926 b |
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| 1 | | Any agent, representative, or person subject to |
| 2 | | registration pursuant to subsection (a-1) of this Section |
| 3 | | shall not be eligible to receive a broker's license. |
| 4 | | (m) A non-resident dealer's license shall permit such |
| 5 | | licensee to ship into and warehouse alcoholic liquor into this |
| 6 | | State from any point outside of this State, and to sell such |
| 7 | | alcoholic liquor to Illinois licensed foreign importers and |
| 8 | | importing distributors and to no one else in this State; |
| 9 | | provided that (i) said non-resident dealer shall register with |
| 10 | | the Illinois Liquor Control Commission each and every brand of |
| 11 | | alcoholic liquor which it proposes to sell to Illinois |
| 12 | | licensees during the license period, (ii) it shall comply with |
| 13 | | all of the provisions of Section 6-9 hereof with respect to |
| 14 | | registration of such Illinois licensees as may be granted the |
| 15 | | right to sell such brands at wholesale by duly filing such |
| 16 | | registration statement, thereby authorizing the non-resident |
| 17 | | dealer to proceed to sell such brands at wholesale, and (iii) |
| 18 | | the non-resident dealer shall comply with the provisions of |
| 19 | | Sections 6-5 and 6-6 of this Act to the same extent that these |
| 20 | | provisions apply to manufacturers. No person licensed as a |
| 21 | | non-resident dealer shall be granted a distributor's or |
| 22 | | importing distributor's license. |
| 23 | | (n) A brew pub license shall allow the licensee to only (i) |
| 24 | | manufacture up to 155,000 gallons of beer per year only on the |
| 25 | | premises specified in the license, (ii) make sales of the beer |
| 26 | | manufactured on the premises or, with the approval of the |
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| | SB0618 Enrolled | - 120 - | LRB104 06890 RPS 16926 b |
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| 1 | | State Commission, beer manufactured on another brew pub |
| 2 | | licensed premises that is wholly owned and operated by the |
| 3 | | same licensee to importing distributors, distributors, and to |
| 4 | | non-licensees for use and consumption, (iii) store the beer |
| 5 | | upon the premises, (iv) sell and offer for sale at retail from |
| 6 | | the licensed premises for off-premises consumption no more |
| 7 | | than 155,000 gallons per year so long as such sales are only |
| 8 | | made in-person, (v) sell and offer for sale at retail for use |
| 9 | | and consumption on the premises specified in the license any |
| 10 | | form of alcoholic liquor purchased from a licensed distributor |
| 11 | | or importing distributor, (vi) with the prior approval of the |
| 12 | | State Commission, annually transfer no more than 155,000 |
| 13 | | gallons of beer manufactured on the premises to a licensed |
| 14 | | brew pub wholly owned and operated by the same licensee, and |
| 15 | | (vii) notwithstanding item (i) of this subsection, brew pubs |
| 16 | | wholly owned and operated by the same licensee may combine |
| 17 | | each location's production limit of 155,000 gallons of beer |
| 18 | | per year and allocate the aggregate total between the wholly |
| 19 | | owned, operated, and licensed locations. |
| 20 | | A brew pub licensee shall not under any circumstance sell |
| 21 | | or offer for sale beer manufactured by the brew pub licensee to |
| 22 | | retail licensees. |
| 23 | | A person who holds a class 2 brewer license may |
| 24 | | simultaneously hold a brew pub license if the class 2 brewer |
| 25 | | (i) does not, under any circumstance, sell or offer for sale |
| 26 | | beer manufactured by the class 2 brewer to retail licensees; |
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| 1 | | (ii) does not hold more than 3 brew pub licenses in this State; |
| 2 | | (iii) does not manufacture more than a combined 3,720,000 |
| 3 | | gallons of beer per year, including the beer manufactured at |
| 4 | | the brew pub; and (iv) is not a member of or affiliated with, |
| 5 | | directly or indirectly, a manufacturer that produces more than |
| 6 | | 3,720,000 gallons of beer per year or any other alcoholic |
| 7 | | liquor. |
| 8 | | Notwithstanding any other provision of this Act, a |
| 9 | | licensed brewer, class 2 brewer, or non-resident dealer who |
| 10 | | before July 1, 2015 manufactured less than 3,720,000 gallons |
| 11 | | of beer per year and held a brew pub license on or before July |
| 12 | | 1, 2015 may (i) continue to qualify for and hold that brew pub |
| 13 | | license for the licensed premises and (ii) manufacture more |
| 14 | | than 3,720,000 gallons of beer per year and continue to |
| 15 | | qualify for and hold that brew pub license if that brewer, |
| 16 | | class 2 brewer, or non-resident dealer does not simultaneously |
| 17 | | hold a class 1 brewer license and is not a member of or |
| 18 | | affiliated with, directly or indirectly, a manufacturer that |
| 19 | | produces more than 3,720,000 gallons of beer per year or that |
| 20 | | produces any other alcoholic liquor. |
| 21 | | A brew pub licensee may apply for a class 3 brewer license |
| 22 | | and, upon meeting all applicable qualifications of this Act |
| 23 | | and relinquishing all commonly owned brew pub or retail |
| 24 | | licenses, shall be issued a class 3 brewer license. Nothing in |
| 25 | | this Act shall prohibit the issuance of a class 3 brewer |
| 26 | | license if the applicant: |
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| 1 | | (1) has a valid retail license on or before May 1, |
| 2 | | 2021; |
| 3 | | (2) has an ownership interest in at least 2 two brew |
| 4 | | pubs licenses on or before May 1, 2021; |
| 5 | | (3) the brew pub licensee applies for a class 3 brewer |
| 6 | | license on or before October 1, 2022 and relinquishes all |
| 7 | | commonly owned brew pub licenses; and |
| 8 | | (4) relinquishes all commonly owned retail licenses on |
| 9 | | or before December 31, 2022. |
| 10 | | If a brew pub licensee is issued a class 3 brewer license, |
| 11 | | the class 3 brewer license shall expire on the same date as the |
| 12 | | existing brew pub license and the State Commission shall not |
| 13 | | require a class 3 brewer licensee to obtain a brewer license, |
| 14 | | or, in the alternative, to pay a fee for a brewer license, |
| 15 | | until the date the brew pub license of the applicant would have |
| 16 | | expired. |
| 17 | | (o) A caterer retailer license shall allow the holder to |
| 18 | | serve alcoholic liquors as an incidental part of a food |
| 19 | | service that serves prepared meals which excludes the serving |
| 20 | | of snacks as the primary meal, either on or off-site whether |
| 21 | | licensed or unlicensed. A caterer retailer license shall allow |
| 22 | | the holder, a distributor, or an importing distributor to |
| 23 | | transfer any inventory to and from the holder's retail |
| 24 | | premises and shall allow the holder to purchase alcoholic |
| 25 | | liquor from a distributor or importing distributor to be |
| 26 | | delivered directly to an off-site event. |
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| | SB0618 Enrolled | - 123 - | LRB104 06890 RPS 16926 b |
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| 1 | | Nothing in this Act prohibits a distributor or importing |
| 2 | | distributor from offering credit or a refund for unused, |
| 3 | | salable beer to a holder of a caterer retailer license or a |
| 4 | | caterer retailer licensee from accepting a credit or refund |
| 5 | | for unused, salable beer, in the event an act of God is the |
| 6 | | sole reason an off-site event is canceled cancelled and if: |
| 7 | | (i) the holder of a caterer retailer license has not |
| 8 | | transferred alcoholic liquor from its caterer retailer |
| 9 | | premises to an off-site location; (ii) the distributor or |
| 10 | | importing distributor offers the credit or refund for the |
| 11 | | unused, salable beer that it delivered to the off-site |
| 12 | | premises and not for any unused, salable beer that the |
| 13 | | distributor or importing distributor delivered to the caterer |
| 14 | | retailer's premises; and (iii) the unused, salable beer would |
| 15 | | likely spoil if transferred to the caterer retailer's |
| 16 | | premises. A caterer retailer license shall allow the holder to |
| 17 | | transfer any inventory from any off-site location to its |
| 18 | | caterer retailer premises at the conclusion of an off-site |
| 19 | | event or engage a distributor or importing distributor to |
| 20 | | transfer any inventory from any off-site location to its |
| 21 | | caterer retailer premises at the conclusion of an off-site |
| 22 | | event, provided that the distributor or importing distributor |
| 23 | | issues bona fide charges to the caterer retailer licensee for |
| 24 | | fuel, labor, and delivery and the distributor or importing |
| 25 | | distributor collects payment from the caterer retailer |
| 26 | | licensee prior to the distributor or importing distributor |
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| | SB0618 Enrolled | - 124 - | LRB104 06890 RPS 16926 b |
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| 1 | | transferring inventory to the caterer retailer premises. |
| 2 | | For purposes of this subsection (o), an "act of God" means |
| 3 | | an unforeseeable event, such as a rain or snow storm, hail, a |
| 4 | | flood, or a similar event, that is the sole cause of the |
| 5 | | cancellation of an off-site, outdoor event. |
| 6 | | (p) An auction liquor license shall allow the licensee to |
| 7 | | sell and offer for sale at auction wine and spirits for use or |
| 8 | | consumption, or for resale by an Illinois liquor licensee in |
| 9 | | accordance with provisions of this Act. An auction liquor |
| 10 | | license will be issued to a person and it will permit the |
| 11 | | auction liquor licensee to hold the auction anywhere in the |
| 12 | | State. An auction liquor license must be obtained for each |
| 13 | | auction at least 14 days in advance of the auction date. |
| 14 | | (q) A special use permit license shall allow an Illinois |
| 15 | | licensed retailer to transfer a portion of its alcoholic |
| 16 | | liquor inventory from its retail licensed premises to the |
| 17 | | premises specified in the license hereby created; to purchase |
| 18 | | alcoholic liquor from a distributor or importing distributor |
| 19 | | to be delivered directly to the location specified in the |
| 20 | | license hereby created; and to sell or offer for sale at |
| 21 | | retail, only in the premises specified in the license hereby |
| 22 | | created, the transferred or delivered alcoholic liquor for use |
| 23 | | or consumption, but not for resale in any form. A special use |
| 24 | | permit license may be granted for the following time periods: |
| 25 | | one day or less; 2 or more days to a maximum of 15 days per |
| 26 | | location in any 12-month period. An applicant for the special |
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| 1 | | use permit license must also submit with the application proof |
| 2 | | satisfactory to the State Commission that the applicant will |
| 3 | | provide dram shop liability insurance to the maximum limits |
| 4 | | and have local authority approval. |
| 5 | | A special use permit license shall allow the holder to |
| 6 | | transfer any inventory from the holder's special use premises |
| 7 | | to its retail premises at the conclusion of the special use |
| 8 | | event or engage a distributor or importing distributor to |
| 9 | | transfer any inventory from the holder's special use premises |
| 10 | | to its retail premises at the conclusion of an off-site event, |
| 11 | | provided that the distributor or importing distributor issues |
| 12 | | bona fide charges to the special use permit licensee for fuel, |
| 13 | | labor, and delivery and the distributor or importing |
| 14 | | distributor collects payment from the retail licensee prior to |
| 15 | | the distributor or importing distributor transferring |
| 16 | | inventory to the retail premises. |
| 17 | | Nothing in this Act prohibits a distributor or importing |
| 18 | | distributor from offering credit or a refund for unused, |
| 19 | | salable beer to a special use permit licensee or a special use |
| 20 | | permit licensee from accepting a credit or refund for unused, |
| 21 | | salable beer at the conclusion of the event specified in the |
| 22 | | license if: (i) the holder of the special use permit license |
| 23 | | has not transferred alcoholic liquor from its retail licensed |
| 24 | | premises to the premises specified in the special use permit |
| 25 | | license; (ii) the distributor or importing distributor offers |
| 26 | | the credit or refund for the unused, salable beer that it |
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| | SB0618 Enrolled | - 126 - | LRB104 06890 RPS 16926 b |
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| 1 | | delivered to the premises specified in the special use permit |
| 2 | | license and not for any unused, salable beer that the |
| 3 | | distributor or importing distributor delivered to the |
| 4 | | retailer's premises; and (iii) the unused, salable beer would |
| 5 | | likely spoil if transferred to the retailer premises. |
| 6 | | (r) A winery shipper's license shall allow a person with a |
| 7 | | first-class or second-class wine manufacturer's license, a |
| 8 | | first-class or second-class wine-maker's license, or a limited |
| 9 | | wine manufacturer's license or who is licensed to make wine |
| 10 | | under the laws of another state to ship wine made by that |
| 11 | | licensee directly to a resident of this State who is 21 years |
| 12 | | of age or older for that resident's personal use and not for |
| 13 | | resale. Prior to receiving a winery shipper's license, an |
| 14 | | applicant for the license must provide the State Commission |
| 15 | | with a true copy of its current license in any state in which |
| 16 | | it is licensed as a manufacturer of wine. An applicant for a |
| 17 | | winery shipper's license must also complete an application |
| 18 | | form that provides any other information the State Commission |
| 19 | | deems necessary. The application form shall include all |
| 20 | | addresses from which the applicant for a winery shipper's |
| 21 | | license intends to ship wine, including the name and address |
| 22 | | of any third party, except for a common carrier, authorized to |
| 23 | | ship wine on behalf of the manufacturer. The application form |
| 24 | | shall include an acknowledgment acknowledgement consenting to |
| 25 | | the jurisdiction of the State Commission, the Illinois |
| 26 | | Department of Revenue, and the courts of this State concerning |
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| 1 | | the enforcement of this Act and any related laws, rules, and |
| 2 | | regulations, including authorizing the Department of Revenue |
| 3 | | and the State Commission to conduct audits for the purpose of |
| 4 | | ensuring compliance with Public Act 95-634, and an |
| 5 | | acknowledgment acknowledgement that the wine manufacturer is |
| 6 | | in compliance with Section 6-2 of this Act. Any third party, |
| 7 | | except for a common carrier, authorized to ship wine on behalf |
| 8 | | of a first-class or second-class wine manufacturer's licensee, |
| 9 | | a first-class or second-class wine-maker's licensee, a limited |
| 10 | | wine manufacturer's licensee, or a person who is licensed to |
| 11 | | make wine under the laws of another state shall also be |
| 12 | | disclosed by the winery shipper's licensee, and a copy of the |
| 13 | | written appointment of the third-party wine provider, except |
| 14 | | for a common carrier, to the wine manufacturer shall be filed |
| 15 | | with the State Commission as a supplement to the winery |
| 16 | | shipper's license application or any renewal thereof. The |
| 17 | | winery shipper's license holder shall affirm under penalty of |
| 18 | | perjury, as part of the winery shipper's license application |
| 19 | | or renewal, that he or she only ships wine, either directly or |
| 20 | | indirectly through a third-party provider, from the licensee's |
| 21 | | own production. |
| 22 | | Except for a common carrier, a third-party provider |
| 23 | | shipping wine on behalf of a winery shipper's license holder |
| 24 | | is the agent of the winery shipper's license holder and, as |
| 25 | | such, a winery shipper's license holder is responsible for the |
| 26 | | acts and omissions of the third-party provider acting on |
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| | SB0618 Enrolled | - 128 - | LRB104 06890 RPS 16926 b |
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| 1 | | behalf of the license holder. A third-party provider, except |
| 2 | | for a common carrier, that engages in shipping wine into |
| 3 | | Illinois on behalf of a winery shipper's license holder shall |
| 4 | | consent to the jurisdiction of the State Commission and the |
| 5 | | State. Any third-party, except for a common carrier, holding |
| 6 | | such an appointment shall, by February 1 of each calendar year |
| 7 | | and upon request by the State Commission or the Department of |
| 8 | | Revenue, file with the State Commission a statement detailing |
| 9 | | each shipment made to an Illinois resident. The statement |
| 10 | | shall include the name and address of the third-party provider |
| 11 | | filing the statement, the time period covered by the |
| 12 | | statement, and the following information: |
| 13 | | (1) the name, address, and license number of the |
| 14 | | winery shipper on whose behalf the shipment was made; |
| 15 | | (2) the quantity of the products delivered; and |
| 16 | | (3) the date and address of the shipment. |
| 17 | | If the Department of Revenue or the State Commission requests |
| 18 | | a statement under this paragraph, the third-party provider |
| 19 | | must provide that statement no later than 30 days after the |
| 20 | | request is made. Any books, records, supporting papers, and |
| 21 | | documents containing information and data relating to a |
| 22 | | statement under this paragraph shall be kept and preserved for |
| 23 | | a period of 3 years, unless their destruction sooner is |
| 24 | | authorized, in writing, by the Director of Revenue, and shall |
| 25 | | be open and available to inspection by the Director of Revenue |
| 26 | | or the State Commission or any duly authorized officer, agent, |
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| 1 | | or employee of the State Commission or the Department of |
| 2 | | Revenue, at all times during business hours of the day. Any |
| 3 | | person who violates any provision of this paragraph or any |
| 4 | | rule of the State Commission for the administration and |
| 5 | | enforcement of the provisions of this paragraph is guilty of a |
| 6 | | Class C misdemeanor. In case of a continuing violation, each |
| 7 | | day's continuance thereof shall be a separate and distinct |
| 8 | | offense. |
| 9 | | The State Commission shall adopt rules as soon as |
| 10 | | practicable to implement the requirements of Public Act 99-904 |
| 11 | | and shall adopt rules prohibiting any such third-party |
| 12 | | appointment of a third-party provider, except for a common |
| 13 | | carrier, that has been deemed by the State Commission to have |
| 14 | | violated the provisions of this Act with regard to any winery |
| 15 | | shipper licensee. |
| 16 | | A winery shipper licensee must pay to the Department of |
| 17 | | Revenue the State liquor gallonage tax under Section 8-1 for |
| 18 | | all wine that is sold by the licensee and shipped to a person |
| 19 | | in this State. For the purposes of Section 8-1, a winery |
| 20 | | shipper licensee shall be taxed in the same manner as a |
| 21 | | manufacturer of wine. A licensee who is not otherwise required |
| 22 | | to register under the Retailers' Occupation Tax Act must |
| 23 | | register under the Use Tax Act to collect and remit use tax to |
| 24 | | the Department of Revenue for all gallons of wine that are sold |
| 25 | | by the licensee and shipped to persons in this State. If a |
| 26 | | licensee fails to remit the tax imposed under this Act in |
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| 1 | | accordance with the provisions of Article VIII of this Act, |
| 2 | | the winery shipper's license shall be revoked in accordance |
| 3 | | with the provisions of Article VII of this Act. If a licensee |
| 4 | | fails to properly register and remit tax under the Use Tax Act |
| 5 | | or the Retailers' Occupation Tax Act for all wine that is sold |
| 6 | | by the winery shipper and shipped to persons in this State, the |
| 7 | | winery shipper's license shall be revoked in accordance with |
| 8 | | the provisions of Article VII of this Act. |
| 9 | | A winery shipper licensee must collect, maintain, and |
| 10 | | submit to the State Commission on a semi-annual basis the |
| 11 | | total number of cases per resident of wine shipped to |
| 12 | | residents of this State. A winery shipper licensed under this |
| 13 | | subsection (r) must comply with the requirements of Section |
| 14 | | 6-29 of this Act. |
| 15 | | Pursuant to paragraph (5.1) or (5.3) of subsection (a) of |
| 16 | | Section 3-12, the State Commission may receive, respond to, |
| 17 | | and investigate any complaint and impose any of the remedies |
| 18 | | specified in paragraph (1) of subsection (a) of Section 3-12. |
| 19 | | As used in this subsection, "third-party provider" means |
| 20 | | any entity that provides fulfillment house services, including |
| 21 | | warehousing, packaging, distribution, order processing, or |
| 22 | | shipment of wine, but not the sale of wine, on behalf of a |
| 23 | | licensed winery shipper. |
| 24 | | (s) A craft distiller tasting permit license shall allow |
| 25 | | an Illinois licensed class 1 craft distiller or class 2 craft |
| 26 | | distiller to transfer a portion of its alcoholic liquor |
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| 1 | | inventory from its class 1 craft distiller or class 2 craft |
| 2 | | distiller licensed premises to the premises specified in the |
| 3 | | license hereby created and to conduct a sampling, only in the |
| 4 | | premises specified in the license hereby created, of the |
| 5 | | transferred alcoholic liquor in accordance with subsection (c) |
| 6 | | of Section 6-31 of this Act. The transferred alcoholic liquor |
| 7 | | may not be sold or resold in any form. An applicant for the |
| 8 | | craft distiller tasting permit license must also submit with |
| 9 | | the application proof satisfactory to the State Commission |
| 10 | | that the applicant will provide dram shop liability insurance |
| 11 | | to the maximum limits and have local authority approval. |
| 12 | | (t) A brewer warehouse permit may be issued to the holder |
| 13 | | of a class 1 brewer license or a class 2 brewer license. If the |
| 14 | | holder of the permit is a class 1 brewer licensee, the brewer |
| 15 | | warehouse permit shall allow the holder to store or warehouse |
| 16 | | up to 930,000 gallons of tax-determined beer manufactured by |
| 17 | | the holder of the permit at the premises specified on the |
| 18 | | permit. If the holder of the permit is a class 2 brewer |
| 19 | | licensee, the brewer warehouse permit shall allow the holder |
| 20 | | to store or warehouse up to 3,720,000 gallons of |
| 21 | | tax-determined beer manufactured by the holder of the permit |
| 22 | | at the premises specified on the permit. Sales to |
| 23 | | non-licensees are prohibited at the premises specified in the |
| 24 | | brewer warehouse permit. |
| 25 | | (u) A distilling pub license shall allow the licensee to |
| 26 | | only (i) manufacture up to 5,000 gallons of spirits per year |
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| 1 | | only on the premises specified in the license, (ii) make sales |
| 2 | | of the spirits manufactured on the premises or, with the |
| 3 | | approval of the State Commission, spirits manufactured on |
| 4 | | another distilling pub licensed premises that is wholly owned |
| 5 | | and operated by the same licensee to importing distributors |
| 6 | | and distributors and to non-licensees for use and consumption, |
| 7 | | (iii) store the spirits upon the premises, (iv) sell and offer |
| 8 | | for sale at retail from the licensed premises for off-premises |
| 9 | | consumption no more than 5,000 gallons per year so long as such |
| 10 | | sales are only made in-person, (v) sell and offer for sale at |
| 11 | | retail for use and consumption on the premises specified in |
| 12 | | the license any form of alcoholic liquor purchased from a |
| 13 | | licensed distributor or importing distributor, and (vi) with |
| 14 | | the prior approval of the State Commission, annually transfer |
| 15 | | no more than 5,000 gallons of spirits manufactured on the |
| 16 | | premises to a licensed distilling pub wholly owned and |
| 17 | | operated by the same licensee. |
| 18 | | A distilling pub licensee shall not under any circumstance |
| 19 | | sell or offer for sale spirits manufactured by the distilling |
| 20 | | pub licensee to retail licensees. |
| 21 | | A person who holds a class 2 craft distiller license may |
| 22 | | simultaneously hold a distilling pub license if the class 2 |
| 23 | | craft distiller (i) does not, under any circumstance, sell or |
| 24 | | offer for sale spirits manufactured by the class 2 craft |
| 25 | | distiller to retail licensees; (ii) does not hold more than 3 |
| 26 | | distilling pub licenses in this State; (iii) does not |
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| 1 | | manufacture more than a combined 100,000 gallons of spirits |
| 2 | | per year, including the spirits manufactured at the distilling |
| 3 | | pub; and (iv) is not a member of or affiliated with, directly |
| 4 | | or indirectly, a manufacturer that produces more than 100,000 |
| 5 | | gallons of spirits per year or any other alcoholic liquor. |
| 6 | | (v) A craft distiller warehouse permit may be issued to |
| 7 | | the holder of a class 1 craft distiller or class 2 craft |
| 8 | | distiller license. The craft distiller warehouse permit shall |
| 9 | | allow the holder to store or warehouse up to 500,000 gallons of |
| 10 | | spirits manufactured by the holder of the permit at the |
| 11 | | premises specified on the permit. Sales to non-licensees are |
| 12 | | prohibited at the premises specified in the craft distiller |
| 13 | | warehouse permit. |
| 14 | | (w) A beer showcase permit license shall allow an |
| 15 | | Illinois-licensed distributor to transfer a portion of its |
| 16 | | beer inventory from its licensed premises to the premises |
| 17 | | specified in the beer showcase permit license, and, in the |
| 18 | | case of a class 3 brewer, transfer only beer the class 3 brewer |
| 19 | | manufactures from its licensed premises to the premises |
| 20 | | specified in the beer showcase permit license; and to sell or |
| 21 | | offer for sale at retail, only in the premises specified in the |
| 22 | | beer showcase permit license, the transferred or delivered |
| 23 | | beer for on or off premise consumption, but not for resale in |
| 24 | | any form and to sell to non-licensees not more than 96 fluid |
| 25 | | ounces of beer per person. A beer showcase permit license may |
| 26 | | be granted for the following time periods: one day or less; or |
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| 1 | | 2 or more days to a maximum of 15 days per location in any |
| 2 | | 12-month period. An applicant for a beer showcase permit |
| 3 | | license must also submit with the application proof |
| 4 | | satisfactory to the State Commission that the applicant will |
| 5 | | provide dram shop liability insurance to the maximum limits |
| 6 | | and have local authority approval. The State Commission shall |
| 7 | | require the beer showcase applicant to comply with Section |
| 8 | | 6-27.1. |
| 9 | | (Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; |
| 10 | | 101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. |
| 11 | | 8-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22; |
| 12 | | 102-442, eff. 8-20-21; 102-1142, eff. 2-17-23; revised |
| 13 | | 7-2-25.) |
| 14 | | (235 ILCS 5/6-28.8) |
| 15 | | (Section scheduled to be repealed on August 1, 2028) |
| 16 | | Sec. 6-28.8. Delivery and carry out of mixed drinks |
| 17 | | permitted. |
| 18 | | (a) In this Section: |
| 19 | | "Cocktail" or "mixed drink" means any beverage obtained by |
| 20 | | combining ingredients alcoholic in nature, whether brewed, |
| 21 | | fermented, or distilled, with ingredients non-alcoholic in |
| 22 | | nature, such as fruit juice, lemonade, cream, or a carbonated |
| 23 | | beverage. "Cocktail" or "mixed drink" does not include an |
| 24 | | original or sealed container that is filled, sealed, or |
| 25 | | labeled by the manufacturer. |
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| 1 | | "Original container" means, for the purposes of this |
| 2 | | Section only, a container that is (i) filled, sealed, and |
| 3 | | secured by a retail licensee's employee at the retail |
| 4 | | licensee's location with a tamper-evident lid or cap or (ii) |
| 5 | | filled and labeled by the manufacturer and secured by the |
| 6 | | manufacturer's original unbroken seal. |
| 7 | | "Sealed container" means a rigid container that contains a |
| 8 | | mixed drink or a single serving of wine, is new, has never been |
| 9 | | used, has a secured lid or cap designed to prevent consumption |
| 10 | | without removal of the lid or cap, and is tamper-evident. |
| 11 | | "Sealed container" includes a manufacturer's original |
| 12 | | container as defined in this subsection. "Sealed container" |
| 13 | | does not include a container with a lid with sipping holes or |
| 14 | | openings for straws or a container made of plastic, paper, or |
| 15 | | polystyrene foam. |
| 16 | | "Tamper-evident" means a lid or cap that has been sealed |
| 17 | | with tamper-evident covers, including, but not limited to, wax |
| 18 | | dip or heat shrink wrap. |
| 19 | | (b) A cocktail, mixed drink, or single serving of wine |
| 20 | | placed in a sealed container by a retail licensee at the retail |
| 21 | | licensee's location or a manufacturer's original container may |
| 22 | | be transferred and sold for off-premises consumption if the |
| 23 | | following requirements are met: |
| 24 | | (1) the cocktail, mixed drink, or single serving of |
| 25 | | wine is transferred within the licensed premises, by a |
| 26 | | curbside pickup, or by delivery by an employee of the |
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| 1 | | retail licensee who: |
| 2 | | (A) has been trained in accordance with Section |
| 3 | | 6-27.1 at the time of the sale; |
| 4 | | (B) is at least 21 years of age; and |
| 5 | | (C) upon delivery, verifies the age of the person |
| 6 | | to whom the cocktail, mixed drink, or single serving |
| 7 | | of wine is being delivered by obtaining a signature |
| 8 | | from a recipient aged 21 or over; |
| 9 | | (2) if the employee delivering the cocktail, mixed |
| 10 | | drink, or single serving of wine is not able to safely |
| 11 | | verify a person's age or level of intoxication upon |
| 12 | | delivery or is otherwise not able to complete the |
| 13 | | delivery, the employee shall cancel the sale of alcohol |
| 14 | | and return the product to the retail license holder; |
| 15 | | (3) the sealed container is placed in the trunk of the |
| 16 | | vehicle or if there is no trunk, in the vehicle's rear |
| 17 | | compartment that is not readily accessible to the |
| 18 | | passenger area; |
| 19 | | (4) except for a manufacturer's original container, a |
| 20 | | container filled and sealed at a retail licensee's |
| 21 | | location shall be affixed with a label or tag that |
| 22 | | contains the following information: |
| 23 | | (A) the cocktail or mixed drink ingredients, type, |
| 24 | | and name of the alcohol; |
| 25 | | (B) the name, license number, and address of the |
| 26 | | retail licensee that filled the original container and |
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| 1 | | sold the product; |
| 2 | | (C) the volume of the cocktail, mixed drink, or |
| 3 | | single serving of wine in the sealed container; and |
| 4 | | (D) the sealed container was filled less than 7 |
| 5 | | days before the date of sale. ; and |
| 6 | | (5) a manufacturer's original container shall be |
| 7 | | affixed with a label or tag that contains the name, |
| 8 | | license number, and address of the retail licensee that |
| 9 | | sold the product. |
| 10 | | (c) Third-party delivery services are not permitted to |
| 11 | | deliver cocktails and mixed drinks under this Section. |
| 12 | | (d) If there is an executive order of the Governor in |
| 13 | | effect during a disaster, the employee delivering the mixed |
| 14 | | drink, cocktail, or single serving of wine must comply with |
| 15 | | any requirements of that executive order, including, but not |
| 16 | | limited to, wearing gloves and a mask and maintaining |
| 17 | | distancing requirements when interacting with the public. |
| 18 | | (e) Delivery or carry out of a cocktail, mixed drink, or |
| 19 | | single serving of wine is prohibited if: |
| 20 | | (1) a third party delivers the cocktail or mixed |
| 21 | | drink; |
| 22 | | (2) a container of a mixed drink, cocktail, or single |
| 23 | | serving of wine is not tamper-evident and sealed; |
| 24 | | (3) a container of a mixed drink, cocktail, or single |
| 25 | | serving of wine is transported in the passenger area of a |
| 26 | | vehicle; |
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| 1 | | (4) a mixed drink, cocktail, or single serving of wine |
| 2 | | is delivered by a person or to a person who is under the |
| 3 | | age of 21; or |
| 4 | | (5) the person delivering a mixed drink, cocktail, or |
| 5 | | single serving of wine fails to verify the age of the |
| 6 | | person to whom the mixed drink or cocktail is being |
| 7 | | delivered. |
| 8 | | (f) Violations of this Section shall be subject to any |
| 9 | | applicable penalties, including, but not limited to, the |
| 10 | | penalties specified under Section 11-502 of the Illinois |
| 11 | | Vehicle Code. |
| 12 | | (f-5) This Section is not intended to prohibit or preempt |
| 13 | | the ability of a brew pub, tap room, or distilling pub to |
| 14 | | continue to temporarily deliver alcoholic liquor pursuant to |
| 15 | | guidance issued by the State Commission on March 19, 2020 |
| 16 | | entitled "Illinois Liquor Control Commission, COVID-19 Related |
| 17 | | Actions, Guidance on Temporary Delivery of Alcoholic Liquor". |
| 18 | | This Section shall only grant authorization to holders of |
| 19 | | State of Illinois retail liquor licenses but not to licensees |
| 20 | | that simultaneously hold any licensure or privilege to |
| 21 | | manufacture alcoholic liquors within or outside of the State |
| 22 | | of Illinois. |
| 23 | | (g) This Section is not a denial or limitation of home rule |
| 24 | | powers and functions under Section 6 of Article VII of the |
| 25 | | Illinois Constitution. |
| 26 | | (h) This Section is repealed on August 1, 2028. |
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| 1 | | (h) Except as provided in subsection (f-5), nothing in |
| 2 | | this Section shall be construed to prohibit an on-premises |
| 3 | | consumption retailer or a combined on-premises consumption |
| 4 | | retailer and off-premises sale retailer from delivering mixed |
| 5 | | drinks, cocktails, or single servings of wine pursuant to this |
| 6 | | Section. |
| 7 | | (Source: P.A. 102-8, eff. 6-2-21; 103-4, eff. 5-31-23.) |
| 8 | | Section 90. Applicability. This Act applies to pending |
| 9 | | actions as well as actions commenced on or after the effective |
| 10 | | date of this Act. |
| 11 | | Section 99. Effective date. This Act takes effect July 1, |
| 12 | | 2026, except that this Section and Section 10 take effect upon |
| 13 | | becoming law. |