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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 Section 3-12 as follows: | |||||||||||||||||||
| 6 | (235 ILCS 5/3-12) | |||||||||||||||||||
| 7 | (Text of Section before amendment by P.A. 104-451) | |||||||||||||||||||
| 8 | Sec. 3-12. Powers and duties of State Commission. | |||||||||||||||||||
| 9 | (a) The State Commission shall have the following powers, | |||||||||||||||||||
| 10 | functions, and duties: | |||||||||||||||||||
| 11 | (1) To receive applications and to issue licenses to | |||||||||||||||||||
| 12 | manufacturers, foreign importers, importing distributors, | |||||||||||||||||||
| 13 | distributors, non-resident dealers, on premise consumption | |||||||||||||||||||
| 14 | retailers, off premise sale retailers, special event | |||||||||||||||||||
| 15 | retailer licensees, special use permit licenses, auction | |||||||||||||||||||
| 16 | liquor licenses, brew pubs, caterer retailers, | |||||||||||||||||||
| 17 | non-beverage users, railroads, including owners and | |||||||||||||||||||
| 18 | lessees of sleeping, dining and cafe cars, airplanes, | |||||||||||||||||||
| 19 | boats, brokers, and wine maker's premises licensees in | |||||||||||||||||||
| 20 | accordance with the provisions of this Act, and to suspend | |||||||||||||||||||
| 21 | or revoke such licenses upon the State Commission's | |||||||||||||||||||
| 22 | determination, upon notice after hearing, that a licensee | |||||||||||||||||||
| 23 | has violated any provision of this Act or any rule or | |||||||||||||||||||
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| 1 | regulation issued pursuant thereto and in effect for 30 | ||||||
| 2 | days prior to such violation. Except in the case of an | ||||||
| 3 | action taken pursuant to a violation of Section 6-3, 6-5, | ||||||
| 4 | or 6-9, any action by the State Commission to suspend or | ||||||
| 5 | revoke a licensee's license may be limited to the license | ||||||
| 6 | for the specific premises where the violation occurred. An | ||||||
| 7 | action for a violation of this Act shall be commenced by | ||||||
| 8 | the State Commission within 2 years after the date the | ||||||
| 9 | State Commission becomes aware of the violation. | ||||||
| 10 | In lieu of suspending or revoking a license, the | ||||||
| 11 | commission may impose a fine, upon the State Commission's | ||||||
| 12 | determination and notice after hearing, that a licensee | ||||||
| 13 | has violated any provision of this Act or any rule or | ||||||
| 14 | regulation issued pursuant thereto and in effect for 30 | ||||||
| 15 | days prior to such violation. | ||||||
| 16 | For the purpose of this paragraph (1), when | ||||||
| 17 | determining multiple violations for the sale of alcohol to | ||||||
| 18 | a person under the age of 21, a second or subsequent | ||||||
| 19 | violation for the sale of alcohol to a person under the age | ||||||
| 20 | of 21 shall only be considered if it was committed within 5 | ||||||
| 21 | years after the date when a prior violation for the sale of | ||||||
| 22 | alcohol to a person under the age of 21 was committed. | ||||||
| 23 | The fine imposed under this paragraph may not exceed | ||||||
| 24 | $500 for each violation. Each day that the activity, which | ||||||
| 25 | gave rise to the original fine, continues is a separate | ||||||
| 26 | violation. The maximum fine that may be levied against any | ||||||
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| 1 | licensee, for the period of the license, shall not exceed | ||||||
| 2 | $20,000 per violation. The maximum penalty that may be | ||||||
| 3 | imposed on a licensee for selling a bottle of alcoholic | ||||||
| 4 | liquor with a foreign object in it or serving from a bottle | ||||||
| 5 | of alcoholic liquor with a foreign object in it shall be | ||||||
| 6 | the destruction of that bottle of alcoholic liquor for the | ||||||
| 7 | first 10 bottles so sold or served from by the licensee. | ||||||
| 8 | For the eleventh bottle of alcoholic liquor and for each | ||||||
| 9 | third bottle thereafter sold or served from by the | ||||||
| 10 | licensee with a foreign object in it, the maximum penalty | ||||||
| 11 | that may be imposed on the licensee is the destruction of | ||||||
| 12 | the bottle of alcoholic liquor and a fine of up to $50. | ||||||
| 13 | Any notice issued by the State Commission to a | ||||||
| 14 | licensee for a violation of this Act or any notice with | ||||||
| 15 | respect to settlement or offer in compromise shall include | ||||||
| 16 | the field report, photographs, and any other supporting | ||||||
| 17 | documentation necessary to reasonably inform the licensee | ||||||
| 18 | of the nature and extent of the violation or the conduct | ||||||
| 19 | alleged to have occurred. The failure to include such | ||||||
| 20 | required documentation shall result in the dismissal of | ||||||
| 21 | the action. | ||||||
| 22 | (2) To adopt such rules and regulations consistent | ||||||
| 23 | with the provisions of this Act which shall be necessary | ||||||
| 24 | to carry on its functions and duties to the end that the | ||||||
| 25 | health, safety and welfare of the People of the State of | ||||||
| 26 | Illinois shall be protected and temperance in the | ||||||
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| |||||||
| 1 | consumption of alcoholic liquors shall be fostered and | ||||||
| 2 | promoted and to distribute copies of such rules and | ||||||
| 3 | regulations to all licensees affected thereby. | ||||||
| 4 | (3) To call upon other administrative departments of | ||||||
| 5 | the State, county and municipal governments, county and | ||||||
| 6 | city police departments and upon prosecuting officers for | ||||||
| 7 | such information and assistance as it deems necessary in | ||||||
| 8 | the performance of its duties. | ||||||
| 9 | (4) To recommend to local commissioners rules and | ||||||
| 10 | regulations, not inconsistent with the law, for the | ||||||
| 11 | distribution and sale of alcoholic liquors throughout the | ||||||
| 12 | State. | ||||||
| 13 | (5) To inspect, or cause to be inspected, any premises | ||||||
| 14 | in this State where alcoholic liquors are manufactured, | ||||||
| 15 | distributed, warehoused, or sold. Nothing in this Act | ||||||
| 16 | authorizes an agent of the State Commission to inspect | ||||||
| 17 | private areas within the premises without reasonable | ||||||
| 18 | suspicion or a warrant during an inspection. "Private | ||||||
| 19 | areas" include, but are not limited to, safes, personal | ||||||
| 20 | property, and closed desks. | ||||||
| 21 | (5.1) Upon receipt of a complaint or upon having | ||||||
| 22 | knowledge that any person is engaged in business as a | ||||||
| 23 | manufacturer, importing distributor, distributor, or | ||||||
| 24 | retailer without a license or valid license, to conduct an | ||||||
| 25 | investigation. If, after conducting an investigation, the | ||||||
| 26 | State Commission is satisfied that the alleged conduct | ||||||
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| 1 | occurred or is occurring, it may issue a cease and desist | ||||||
| 2 | notice as provided in this Act, impose civil penalties as | ||||||
| 3 | provided in this Act, notify the local liquor authority, | ||||||
| 4 | or file a complaint with the State's Attorney's Office of | ||||||
| 5 | the county where the incident occurred or the Attorney | ||||||
| 6 | General. | ||||||
| 7 | (5.2) Upon receipt of a complaint or upon having | ||||||
| 8 | knowledge that any person is shipping alcoholic liquor | ||||||
| 9 | into this State from a point outside of this State if the | ||||||
| 10 | shipment is in violation of this Act, to conduct an | ||||||
| 11 | investigation. If, after conducting an investigation, the | ||||||
| 12 | State Commission is satisfied that the alleged conduct | ||||||
| 13 | occurred or is occurring, it may issue a cease and desist | ||||||
| 14 | notice as provided in this Act, impose civil penalties as | ||||||
| 15 | provided in this Act, notify the foreign jurisdiction, or | ||||||
| 16 | file a complaint with the State's Attorney's Office of the | ||||||
| 17 | county where the incident occurred or the Attorney | ||||||
| 18 | General. | ||||||
| 19 | (5.3) To receive complaints from licensees, local | ||||||
| 20 | officials, law enforcement agencies, organizations, and | ||||||
| 21 | persons stating that any licensee has been or is violating | ||||||
| 22 | any provision of this Act or the rules and regulations | ||||||
| 23 | issued pursuant to this Act. Such complaints shall be in | ||||||
| 24 | writing, signed and sworn to by the person making the | ||||||
| 25 | complaint, and shall state with specificity the facts in | ||||||
| 26 | relation to the alleged violation. If the State Commission | ||||||
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| 1 | has reasonable grounds to believe that the complaint | ||||||
| 2 | substantially alleges a violation of this Act or rules and | ||||||
| 3 | regulations adopted pursuant to this Act, it shall conduct | ||||||
| 4 | an investigation. If, after conducting an investigation, | ||||||
| 5 | the State Commission is satisfied that the alleged | ||||||
| 6 | violation did occur, it shall proceed with disciplinary | ||||||
| 7 | action against the licensee as provided in this Act. | ||||||
| 8 | (5.4) To make arrests and issue notices of civil | ||||||
| 9 | violations where necessary for the enforcement of this | ||||||
| 10 | Act. | ||||||
| 11 | (5.5) To investigate any and all unlicensed activity. | ||||||
| 12 | (5.6) To impose civil penalties or fines to any person | ||||||
| 13 | who, without holding a valid license, engages in conduct | ||||||
| 14 | that requires a license pursuant to this Act, in an amount | ||||||
| 15 | not to exceed $20,000 for each offense as determined by | ||||||
| 16 | the State Commission. A civil penalty shall be assessed by | ||||||
| 17 | the State Commission after a hearing is held in accordance | ||||||
| 18 | with the provisions set forth in this Act regarding the | ||||||
| 19 | provision of a hearing for the revocation or suspension of | ||||||
| 20 | a license. | ||||||
| 21 | (6) To hear and determine appeals from orders of a | ||||||
| 22 | local commission in accordance with the provisions of this | ||||||
| 23 | Act, as hereinafter set forth. Hearings under this | ||||||
| 24 | subsection shall be held in Springfield or Chicago, at | ||||||
| 25 | whichever location is the more convenient for the majority | ||||||
| 26 | of persons who are parties to the hearing. | ||||||
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| 1 | (7) The State Commission shall establish uniform | ||||||
| 2 | systems of accounts to be kept by all retail licensees | ||||||
| 3 | having more than 4 employees, and for this purpose the | ||||||
| 4 | State Commission may classify all retail licensees having | ||||||
| 5 | more than 4 employees and establish a uniform system of | ||||||
| 6 | accounts for each class and prescribe the manner in which | ||||||
| 7 | such accounts shall be kept. The State Commission may also | ||||||
| 8 | prescribe the forms of accounts to be kept by all retail | ||||||
| 9 | licensees having more than 4 employees, including, but not | ||||||
| 10 | limited to, accounts of earnings and expenses and any | ||||||
| 11 | distribution, payment, or other distribution of earnings | ||||||
| 12 | or assets, and any other forms, records, and memoranda | ||||||
| 13 | which in the judgment of the commission may be necessary | ||||||
| 14 | or appropriate to carry out any of the provisions of this | ||||||
| 15 | Act, including, but not limited to, such forms, records, | ||||||
| 16 | and memoranda as will readily and accurately disclose at | ||||||
| 17 | all times the beneficial ownership of such retail licensed | ||||||
| 18 | business. The accounts, forms, records, and memoranda | ||||||
| 19 | shall be available at all reasonable times for inspection | ||||||
| 20 | by authorized representatives of the State Commission or | ||||||
| 21 | by any local liquor control commissioner or his or her | ||||||
| 22 | authorized representative. The commission may, from time | ||||||
| 23 | to time, alter, amend, or repeal, in whole or in part, any | ||||||
| 24 | uniform system of accounts, or the form and manner of | ||||||
| 25 | keeping accounts. | ||||||
| 26 | (8) In the conduct of any hearing authorized to be | ||||||
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| 1 | held by the State Commission, to appoint, at the | ||||||
| 2 | commission's discretion, hearing officers to conduct | ||||||
| 3 | hearings involving complex issues or issues that will | ||||||
| 4 | require a protracted period of time to resolve, to | ||||||
| 5 | examine, or cause to be examined, under oath, any | ||||||
| 6 | licensee, and to examine or cause to be examined the books | ||||||
| 7 | and records of such licensee; to hear testimony and take | ||||||
| 8 | proof material for its information in the discharge of its | ||||||
| 9 | duties hereunder; to administer or cause to be | ||||||
| 10 | administered oaths; for any such purpose to issue subpoena | ||||||
| 11 | or subpoenas to require the attendance of witnesses and | ||||||
| 12 | the production of books, which shall be effective in any | ||||||
| 13 | part of this State, and to adopt rules to implement its | ||||||
| 14 | powers under this paragraph (8). | ||||||
| 15 | Any circuit court may, by order duly entered, require | ||||||
| 16 | the attendance of witnesses and the production of relevant | ||||||
| 17 | books subpoenaed by the State Commission and the court may | ||||||
| 18 | compel obedience to its order by proceedings for contempt. | ||||||
| 19 | (9) To investigate the administration of laws in | ||||||
| 20 | relation to alcoholic liquors in this and other states and | ||||||
| 21 | any foreign countries, and to recommend from time to time | ||||||
| 22 | to the Governor and through him or her to the legislature | ||||||
| 23 | of this State, such amendments to this Act, if any, as it | ||||||
| 24 | may think desirable and as will serve to further the | ||||||
| 25 | general broad purposes contained in Section 1-2 hereof. | ||||||
| 26 | (10) To adopt such rules and regulations consistent | ||||||
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| 1 | with the provisions of this Act which shall be necessary | ||||||
| 2 | for the control, sale, or disposition of alcoholic liquor | ||||||
| 3 | damaged as a result of an accident, wreck, flood, fire, or | ||||||
| 4 | other similar occurrence. | ||||||
| 5 | (11) To develop industry educational programs related | ||||||
| 6 | to responsible serving and selling, particularly in the | ||||||
| 7 | areas of overserving consumers and illegal underage | ||||||
| 8 | purchasing and consumption of alcoholic beverages. | ||||||
| 9 | (11.1) To license persons providing education and | ||||||
| 10 | training to alcohol beverage sellers and servers for | ||||||
| 11 | mandatory and non-mandatory training under the Beverage | ||||||
| 12 | Alcohol Sellers and Servers Education and Training | ||||||
| 13 | (BASSET) programs and to develop and administer a public | ||||||
| 14 | awareness program in Illinois to reduce or eliminate the | ||||||
| 15 | illegal purchase and consumption of alcoholic beverage | ||||||
| 16 | products by persons under the age of 21. Application for a | ||||||
| 17 | license shall be made on forms provided by the State | ||||||
| 18 | Commission. | ||||||
| 19 | (12) To develop and maintain a repository of license | ||||||
| 20 | and regulatory information. | ||||||
| 21 | (13) (Blank). | ||||||
| 22 | (14) On or before April 30, 2008 and every 2 years | ||||||
| 23 | thereafter, the State Commission shall present a written | ||||||
| 24 | report to the Governor and the General Assembly that shall | ||||||
| 25 | be based on a study of the impact of Public Act 95-634 on | ||||||
| 26 | the business of soliciting, selling, and shipping wine | ||||||
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| 1 | from inside and outside of this State directly to | ||||||
| 2 | residents of this State. As part of its report, the State | ||||||
| 3 | Commission shall provide all of the following information: | ||||||
| 4 | (A) The amount of State excise and sales tax | ||||||
| 5 | revenues generated. | ||||||
| 6 | (B) The amount of licensing fees received. | ||||||
| 7 | (C) The number of cases of wine shipped from | ||||||
| 8 | inside and outside of this State directly to residents | ||||||
| 9 | of this State. | ||||||
| 10 | (D) The number of alcohol compliance operations | ||||||
| 11 | conducted. | ||||||
| 12 | (E) The number of winery shipper's licenses | ||||||
| 13 | issued. | ||||||
| 14 | (F) The number of each of the following: reported | ||||||
| 15 | violations; cease and desist notices issued by the | ||||||
| 16 | Commission; notices of violations issued by the | ||||||
| 17 | Commission and to the Department of Revenue; and | ||||||
| 18 | notices and complaints of violations to law | ||||||
| 19 | enforcement officials, including, without limitation, | ||||||
| 20 | the Illinois Attorney General and the U.S. Department | ||||||
| 21 | of Treasury's Alcohol and Tobacco Tax and Trade | ||||||
| 22 | Bureau. | ||||||
| 23 | (15) As a means to reduce the underage consumption of | ||||||
| 24 | alcoholic liquors, the State Commission shall conduct | ||||||
| 25 | alcohol compliance operations to investigate whether | ||||||
| 26 | businesses that are soliciting, selling, and shipping wine | ||||||
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| 1 | from inside or outside of this State directly to residents | ||||||
| 2 | of this State are licensed by this State or are selling or | ||||||
| 3 | attempting to sell wine to persons under 21 years of age in | ||||||
| 4 | violation of this Act. | ||||||
| 5 | (16) The State Commission shall, in addition to | ||||||
| 6 | notifying any appropriate law enforcement agency, submit | ||||||
| 7 | notices of complaints or violations of Sections 6-29 and | ||||||
| 8 | 6-29.1 by persons who do not hold a winery shipper's | ||||||
| 9 | license under this Act to the Illinois Attorney General | ||||||
| 10 | and to the U.S. Department of Treasury's Alcohol and | ||||||
| 11 | Tobacco Tax and Trade Bureau. | ||||||
| 12 | (17)(A) A person licensed to make wine under the laws | ||||||
| 13 | of another state who has a winery shipper's license under | ||||||
| 14 | this Act and annually produces less than 25,000 gallons of | ||||||
| 15 | wine or a person who has a first-class or second-class | ||||||
| 16 | wine manufacturer's license, a first-class or second-class | ||||||
| 17 | wine-maker's license, or a limited wine manufacturer's | ||||||
| 18 | license under this Act and annually produces less than | ||||||
| 19 | 25,000 gallons of wine may make application to the | ||||||
| 20 | Commission for a self-distribution exemption to allow the | ||||||
| 21 | sale of not more than 5,000 gallons of the exemption | ||||||
| 22 | holder's wine to retail licensees per year and to sell | ||||||
| 23 | cider, mead, or both cider and mead to brewers, class 1 | ||||||
| 24 | brewers, class 2 brewers, and class 3 brewers that, | ||||||
| 25 | pursuant to subsection (e) of Section 6-4 of this Act, | ||||||
| 26 | sell beer, cider, mead, or any combination thereof to | ||||||
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| 1 | non-licensees at their breweries. | ||||||
| 2 | (B) In the application, which shall be sworn under | ||||||
| 3 | penalty of perjury, such person shall state (1) the date | ||||||
| 4 | it was established; (2) its volume of production and sales | ||||||
| 5 | for each year since its establishment; (3) its efforts to | ||||||
| 6 | establish distributor relationships; (4) that a | ||||||
| 7 | self-distribution exemption is necessary to facilitate the | ||||||
| 8 | marketing of its wine; and (5) that it will comply with the | ||||||
| 9 | liquor and revenue laws of the United States, this State, | ||||||
| 10 | and any other state where it is licensed. | ||||||
| 11 | (C) The State Commission shall approve the application | ||||||
| 12 | for a self-distribution exemption if such person: (1) is | ||||||
| 13 | in compliance with State revenue and liquor laws; (2) is | ||||||
| 14 | not a member of any affiliated group that produces | ||||||
| 15 | directly or indirectly more than 25,000 gallons of wine | ||||||
| 16 | per annum, 930,000 gallons of beer per annum, or 50,000 | ||||||
| 17 | gallons of spirits per annum; (3) will not annually | ||||||
| 18 | produce for sale more than 25,000 gallons of wine, 930,000 | ||||||
| 19 | gallons of beer, or 50,000 gallons of spirits; and (4) | ||||||
| 20 | will not annually sell more than 5,000 gallons of its wine | ||||||
| 21 | to retail licensees. | ||||||
| 22 | (D) A self-distribution exemption holder shall | ||||||
| 23 | annually certify to the State Commission its production of | ||||||
| 24 | wine in the previous 12 months and its anticipated | ||||||
| 25 | production and sales for the next 12 months. The State | ||||||
| 26 | Commission may fine, suspend, or revoke a | ||||||
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| |||||||
| 1 | self-distribution exemption after a hearing if it finds | ||||||
| 2 | that the exemption holder has made a material | ||||||
| 3 | misrepresentation in its application, violated a revenue | ||||||
| 4 | or liquor law of Illinois, exceeded production of 25,000 | ||||||
| 5 | gallons of wine, 930,000 gallons of beer, or 50,000 | ||||||
| 6 | gallons of spirits in any calendar year, or become part of | ||||||
| 7 | an affiliated group producing more than 25,000 gallons of | ||||||
| 8 | wine, 930,000 gallons of beer, or 50,000 gallons of | ||||||
| 9 | spirits. | ||||||
| 10 | (E) Except in hearings for violations of this Act or | ||||||
| 11 | Public Act 95-634 or a bona fide investigation by duly | ||||||
| 12 | sworn law enforcement officials, the State Commission, or | ||||||
| 13 | its agents, the State Commission shall maintain the | ||||||
| 14 | production and sales information of a self-distribution | ||||||
| 15 | exemption holder as confidential and shall not release | ||||||
| 16 | such information to any person. | ||||||
| 17 | (F) The State Commission shall issue regulations | ||||||
| 18 | governing self-distribution exemptions consistent with | ||||||
| 19 | this Section and this Act. | ||||||
| 20 | (G) Nothing in this paragraph (17) shall prohibit a | ||||||
| 21 | self-distribution exemption holder from entering into or | ||||||
| 22 | simultaneously having a distribution agreement with a | ||||||
| 23 | licensed Illinois distributor. | ||||||
| 24 | (H) It is the intent of this paragraph (17) to promote | ||||||
| 25 | and continue orderly markets. The General Assembly finds | ||||||
| 26 | that, in order to preserve Illinois' regulatory | ||||||
| |||||||
| |||||||
| 1 | distribution system, it is necessary to create an | ||||||
| 2 | exception for smaller makers of wine as their wines are | ||||||
| 3 | frequently adjusted in varietals, mixes, vintages, and | ||||||
| 4 | taste to find and create market niches sometimes too small | ||||||
| 5 | for distributor or importing distributor business | ||||||
| 6 | strategies. Limited self-distribution rights will afford | ||||||
| 7 | and allow smaller makers of wine access to the marketplace | ||||||
| 8 | in order to develop a customer base without impairing the | ||||||
| 9 | integrity of the 3-tier system. | ||||||
| 10 | (18)(A) A class 1 brewer licensee, who must also be | ||||||
| 11 | either a licensed brewer or licensed non-resident dealer | ||||||
| 12 | and annually manufacture less than 930,000 gallons of | ||||||
| 13 | beer, may make application to the State Commission for a | ||||||
| 14 | self-distribution exemption to allow the sale of not more | ||||||
| 15 | than 232,500 gallons per year of the exemption holder's | ||||||
| 16 | beer to retail licensees and to brewers, class 1 brewers, | ||||||
| 17 | and class 2 brewers that, pursuant to subsection (e) of | ||||||
| 18 | Section 6-4 of this Act, sell beer, cider, mead, or any | ||||||
| 19 | combination thereof to non-licensees at their breweries. | ||||||
| 20 | (B) In the application, which shall be sworn under | ||||||
| 21 | penalty of perjury, the class 1 brewer licensee shall | ||||||
| 22 | state (1) the date it was established; (2) its volume of | ||||||
| 23 | beer manufactured and sold for each year since its | ||||||
| 24 | establishment; (3) its efforts to establish distributor | ||||||
| 25 | relationships; (4) that a self-distribution exemption is | ||||||
| 26 | necessary to facilitate the marketing of its beer; and (5) | ||||||
| |||||||
| |||||||
| 1 | that it will comply with the alcoholic beverage and | ||||||
| 2 | revenue laws of the United States, this State, and any | ||||||
| 3 | other state where it is licensed. | ||||||
| 4 | (C) Any application submitted shall be posted on the | ||||||
| 5 | State Commission's website at least 45 days prior to | ||||||
| 6 | action by the State Commission. The State Commission shall | ||||||
| 7 | approve the application for a self-distribution exemption | ||||||
| 8 | if the class 1 brewer licensee: (1) is in compliance with | ||||||
| 9 | the State, revenue, and alcoholic beverage laws; (2) is | ||||||
| 10 | not a member of any affiliated group that manufactures, | ||||||
| 11 | directly or indirectly, more than 930,000 gallons of beer | ||||||
| 12 | per annum, 25,000 gallons of wine per annum, or 50,000 | ||||||
| 13 | gallons of spirits per annum; (3) shall not annually | ||||||
| 14 | manufacture for sale more than 930,000 gallons of beer, | ||||||
| 15 | 25,000 gallons of wine, or 50,000 gallons of spirits; (4) | ||||||
| 16 | shall not annually sell more than 232,500 gallons of its | ||||||
| 17 | beer to retail licensees and class 3 brewers and to | ||||||
| 18 | brewers, class 1 brewers, and class 2 brewers that, | ||||||
| 19 | pursuant to subsection (e) of Section 6-4 of this Act, | ||||||
| 20 | sell beer, cider, mead, or any combination thereof to | ||||||
| 21 | non-licensees at their breweries; and (5) has relinquished | ||||||
| 22 | any brew pub license held by the licensee, including any | ||||||
| 23 | ownership interest it held in the licensed brew pub. | ||||||
| 24 | (D) A self-distribution exemption holder shall | ||||||
| 25 | annually certify to the State Commission its manufacture | ||||||
| 26 | of beer during the previous 12 months and its anticipated | ||||||
| |||||||
| |||||||
| 1 | manufacture and sales of beer for the next 12 months. The | ||||||
| 2 | State Commission may fine, suspend, or revoke a | ||||||
| 3 | self-distribution exemption after a hearing if it finds | ||||||
| 4 | that the exemption holder has made a material | ||||||
| 5 | misrepresentation in its application, violated a revenue | ||||||
| 6 | or alcoholic beverage law of Illinois, exceeded the | ||||||
| 7 | manufacture of 930,000 gallons of beer, 25,000 gallons of | ||||||
| 8 | wine, or 50,000 gallons of spirits in any calendar year or | ||||||
| 9 | became part of an affiliated group manufacturing more than | ||||||
| 10 | 930,000 gallons of beer, 25,000 gallons of wine, or 50,000 | ||||||
| 11 | gallons of spirits. | ||||||
| 12 | (E) The State Commission shall issue rules and | ||||||
| 13 | regulations governing self-distribution exemptions | ||||||
| 14 | consistent with this Act. | ||||||
| 15 | (F) Nothing in this paragraph (18) shall prohibit a | ||||||
| 16 | self-distribution exemption holder from entering into or | ||||||
| 17 | simultaneously having a distribution agreement with a | ||||||
| 18 | licensed Illinois importing distributor or a distributor. | ||||||
| 19 | If a self-distribution exemption holder enters into a | ||||||
| 20 | distribution agreement and has assigned distribution | ||||||
| 21 | rights to an importing distributor or distributor, then | ||||||
| 22 | the self-distribution exemption holder's distribution | ||||||
| 23 | rights in the assigned territories shall cease in a | ||||||
| 24 | reasonable time not to exceed 60 days. | ||||||
| 25 | (G) It is the intent of this paragraph (18) to promote | ||||||
| 26 | and continue orderly markets. The General Assembly finds | ||||||
| |||||||
| |||||||
| 1 | that in order to preserve Illinois' regulatory | ||||||
| 2 | distribution system, it is necessary to create an | ||||||
| 3 | exception for smaller manufacturers in order to afford and | ||||||
| 4 | allow such smaller manufacturers of beer access to the | ||||||
| 5 | marketplace in order to develop a customer base without | ||||||
| 6 | impairing the integrity of the 3-tier system. | ||||||
| 7 | (19)(A) A class 1 craft distiller licensee or a | ||||||
| 8 | non-resident dealer who manufactures less than 50,000 | ||||||
| 9 | gallons of distilled spirits per year may make application | ||||||
| 10 | to the State Commission for a self-distribution exemption | ||||||
| 11 | to allow the sale of not more than 5,000 gallons of the | ||||||
| 12 | exemption holder's spirits to retail licensees per year. | ||||||
| 13 | (B) In the application, which shall be sworn under | ||||||
| 14 | penalty of perjury, the class 1 craft distiller licensee | ||||||
| 15 | or non-resident dealer shall state (1) the date it was | ||||||
| 16 | established; (2) its volume of spirits manufactured and | ||||||
| 17 | sold for each year since its establishment; (3) its | ||||||
| 18 | efforts to establish distributor relationships; (4) that a | ||||||
| 19 | self-distribution exemption is necessary to facilitate the | ||||||
| 20 | marketing of its spirits; and (5) that it will comply with | ||||||
| 21 | the alcoholic beverage and revenue laws of the United | ||||||
| 22 | States, this State, and any other state where it is | ||||||
| 23 | licensed. | ||||||
| 24 | (C) Any application submitted shall be posted on the | ||||||
| 25 | State Commission's website at least 45 days prior to | ||||||
| 26 | action by the State Commission. The State Commission shall | ||||||
| |||||||
| |||||||
| 1 | approve the application for a self-distribution exemption | ||||||
| 2 | if the applicant: (1) is in compliance with State revenue | ||||||
| 3 | and alcoholic beverage laws; (2) is not a member of any | ||||||
| 4 | affiliated group that produces more than 50,000 gallons of | ||||||
| 5 | spirits per annum, 930,000 gallons of beer per annum, or | ||||||
| 6 | 25,000 gallons of wine per annum; (3) does not annually | ||||||
| 7 | manufacture for sale more than 50,000 gallons of spirits, | ||||||
| 8 | 930,000 gallons of beer, or 25,000 gallons of wine; and | ||||||
| 9 | (4) does not annually sell more than 5,000 gallons of its | ||||||
| 10 | spirits to retail licensees. | ||||||
| 11 | (D) A self-distribution exemption holder shall | ||||||
| 12 | annually certify to the State Commission its manufacture | ||||||
| 13 | of spirits during the previous 12 months and its | ||||||
| 14 | anticipated manufacture and sales of spirits for the next | ||||||
| 15 | 12 months. The State Commission may fine, suspend, or | ||||||
| 16 | revoke a self-distribution exemption after a hearing if it | ||||||
| 17 | finds that the exemption holder has made a material | ||||||
| 18 | misrepresentation in its application, violated a revenue | ||||||
| 19 | or alcoholic beverage law of Illinois, exceeded the | ||||||
| 20 | manufacture of 50,000 gallons of spirits, 930,000 gallons | ||||||
| 21 | of beer, or 25,000 gallons of wine in any calendar year, or | ||||||
| 22 | has become part of an affiliated group manufacturing more | ||||||
| 23 | than 50,000 gallons of spirits, 930,000 gallons of beer, | ||||||
| 24 | or 25,000 gallons of wine. | ||||||
| 25 | (E) The State Commission shall adopt rules governing | ||||||
| 26 | self-distribution exemptions consistent with this Act. | ||||||
| |||||||
| |||||||
| 1 | (F) Nothing in this paragraph (19) 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 (19) to promote | ||||||
| 6 | and continue orderly markets. The General Assembly finds | ||||||
| 7 | that in order to preserve Illinois' regulatory | ||||||
| 8 | distribution system, it is necessary to create an | ||||||
| 9 | exception for smaller manufacturers in order to afford and | ||||||
| 10 | allow such smaller manufacturers of spirits access to the | ||||||
| 11 | marketplace in order to develop a customer base without | ||||||
| 12 | impairing the integrity of the 3-tier system. | ||||||
| 13 | (20)(A) A class 3 brewer licensee who must manufacture | ||||||
| 14 | less than 465,000 gallons of beer in the aggregate and not | ||||||
| 15 | more than 155,000 gallons at any single brewery premises | ||||||
| 16 | may make application to the State Commission for a | ||||||
| 17 | self-distribution exemption to allow the sale of not more | ||||||
| 18 | than 6,200 gallons of beer from each in-state or | ||||||
| 19 | out-of-state class 3 brewery premises, which shall not | ||||||
| 20 | exceed 18,600 gallons annually in the aggregate, that is | ||||||
| 21 | manufactured at a wholly owned class 3 brewer's in-state | ||||||
| 22 | or out-of-state licensed premises to retail licensees and | ||||||
| 23 | class 3 brewers and to brewers, class 1 brewers, class 2 | ||||||
| 24 | brewers that, pursuant to subsection (e) of Section 6-4, | ||||||
| 25 | sell beer, cider, or both beer and cider to non-licensees | ||||||
| 26 | at their licensed breweries. | ||||||
| |||||||
| |||||||
| 1 | (B) In the application, which shall be sworn under | ||||||
| 2 | penalty of perjury, the class 3 brewer licensee shall | ||||||
| 3 | state: | ||||||
| 4 | (1) the date it was established; | ||||||
| 5 | (2) its volume of beer manufactured and sold for | ||||||
| 6 | each year since its establishment; | ||||||
| 7 | (3) its efforts to establish distributor | ||||||
| 8 | relationships; | ||||||
| 9 | (4) that a self-distribution exemption is | ||||||
| 10 | necessary to facilitate the marketing of its beer; and | ||||||
| 11 | (5) that it will comply with the alcoholic | ||||||
| 12 | beverage and revenue laws of the United States, this | ||||||
| 13 | State, and any other state where it is licensed. | ||||||
| 14 | (C) Any application submitted shall be posted on the | ||||||
| 15 | State Commission's website at least 45 days before action | ||||||
| 16 | by the State Commission. The State Commission shall | ||||||
| 17 | approve the application for a self-distribution exemption | ||||||
| 18 | if the class 3 brewer licensee: (1) is in compliance with | ||||||
| 19 | the State, revenue, and alcoholic beverage laws; (2) is | ||||||
| 20 | not a member of any affiliated group that manufacturers, | ||||||
| 21 | directly or indirectly, more than 465,000 gallons of beer | ||||||
| 22 | per annum; (3) shall not annually manufacture for sale | ||||||
| 23 | more than 465,000 gallons of beer or more than 155,000 | ||||||
| 24 | gallons at any single brewery premises; and (4) shall not | ||||||
| 25 | annually sell more than 6,200 gallons of beer from each | ||||||
| 26 | in-state or out-of-state class 3 brewery premises, and | ||||||
| |||||||
| |||||||
| 1 | shall not exceed 18,600 gallons annually in the aggregate, | ||||||
| 2 | to retail licensees and class 3 brewers and to brewers, | ||||||
| 3 | class 1 brewers, and class 2 brewers that, pursuant to | ||||||
| 4 | subsection (e) of Section 6-4 of this Act, sell beer, | ||||||
| 5 | cider, or both beer and cider to non-licensees at their | ||||||
| 6 | breweries. | ||||||
| 7 | (D) A self-distribution exemption holder shall | ||||||
| 8 | annually certify to the State Commission its manufacture | ||||||
| 9 | of beer during the previous 12 months and its anticipated | ||||||
| 10 | manufacture and sales of beer for the next 12 months. The | ||||||
| 11 | State Commission may fine, suspend, or revoke a | ||||||
| 12 | self-distribution exemption after a hearing if it finds | ||||||
| 13 | that the exemption holder has made a material | ||||||
| 14 | misrepresentation in its application, violated a revenue | ||||||
| 15 | or alcoholic beverage law of Illinois, exceeded the | ||||||
| 16 | manufacture of 465,000 gallons of beer in any calendar | ||||||
| 17 | year or became part of an affiliated group manufacturing | ||||||
| 18 | more than 465,000 gallons of beer, or exceeded the sale to | ||||||
| 19 | retail licensees, brewers, class 1 brewers, class 2 | ||||||
| 20 | brewers, and class 3 brewers of 6,200 gallons per brewery | ||||||
| 21 | location or 18,600 gallons in the aggregate. | ||||||
| 22 | (E) The State Commission may adopt rules governing | ||||||
| 23 | self-distribution exemptions consistent with this Act. | ||||||
| 24 | (F) Nothing in this paragraph shall prohibit a | ||||||
| 25 | self-distribution exemption holder from entering into or | ||||||
| 26 | simultaneously having a distribution agreement with a | ||||||
| |||||||
| |||||||
| 1 | licensed Illinois importing distributor or a distributor. | ||||||
| 2 | If a self-distribution exemption holder enters into a | ||||||
| 3 | distribution agreement and has assigned distribution | ||||||
| 4 | rights to an importing distributor or distributor, then | ||||||
| 5 | the self-distribution exemption holder's distribution | ||||||
| 6 | rights in the assigned territories shall cease in a | ||||||
| 7 | reasonable time not to exceed 60 days. | ||||||
| 8 | (G) It is the intent of this paragraph to promote and | ||||||
| 9 | continue orderly markets. The General Assembly finds that | ||||||
| 10 | in order to preserve Illinois' regulatory distribution | ||||||
| 11 | system, it is necessary to create an exception for smaller | ||||||
| 12 | manufacturers in order to afford and allow such smaller | ||||||
| 13 | manufacturers of beer access to the marketplace in order | ||||||
| 14 | to develop a customer base without impairing the integrity | ||||||
| 15 | of the 3-tier system. | ||||||
| 16 | (b) On or before April 30, 1999, the Commission shall | ||||||
| 17 | present a written report to the Governor and the General | ||||||
| 18 | Assembly that shall be based on a study of the impact of Public | ||||||
| 19 | Act 90-739 on the business of soliciting, selling, and | ||||||
| 20 | shipping alcoholic liquor from outside of this State directly | ||||||
| 21 | to residents of this State. | ||||||
| 22 | As part of its report, the Commission shall provide the | ||||||
| 23 | following information: | ||||||
| 24 | (i) the amount of State excise and sales tax revenues | ||||||
| 25 | generated as a result of Public Act 90-739; | ||||||
| 26 | (ii) the amount of licensing fees received as a result | ||||||
| |||||||
| |||||||
| 1 | of Public Act 90-739; | ||||||
| 2 | (iii) the number of reported violations, the number of | ||||||
| 3 | cease and desist notices issued by the Commission, the | ||||||
| 4 | number of notices of violations issued to the Department | ||||||
| 5 | of Revenue, and the number of notices and complaints of | ||||||
| 6 | violations to law enforcement officials. | ||||||
| 7 | (Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19; | ||||||
| 8 | 101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff. | ||||||
| 9 | 8-20-21; 102-813, eff. 5-13-22.) | ||||||
| 10 | (Text of Section after amendment by P.A. 104-451) | ||||||
| 11 | Sec. 3-12. Powers and duties of State Commission. | ||||||
| 12 | (a) The State Commission shall have the following powers, | ||||||
| 13 | functions, and duties: | ||||||
| 14 | (1) To receive applications and to issue licenses to | ||||||
| 15 | manufacturers, foreign importers, importing distributors, | ||||||
| 16 | distributors, non-resident dealers, on premise consumption | ||||||
| 17 | retailers, off premise sale retailers, special event | ||||||
| 18 | retailer licensees, special use permit licenses, auction | ||||||
| 19 | liquor licenses, brew pubs, caterer retailers, | ||||||
| 20 | non-beverage users, railroads, including owners and | ||||||
| 21 | lessees of sleeping, dining, and cafe cars, airplanes, | ||||||
| 22 | boats, brokers, and wine maker's premises licensees in | ||||||
| 23 | accordance with the provisions of this Act, and to suspend | ||||||
| 24 | or revoke such licenses upon the State Commission's | ||||||
| 25 | determination, upon notice after hearing, that a licensee | ||||||
| |||||||
| |||||||
| 1 | has violated any provision of this Act or any rule or | ||||||
| 2 | regulation issued pursuant thereto and in effect for 30 | ||||||
| 3 | days prior to such violation. Except in the case of an | ||||||
| 4 | action taken pursuant to a violation of Section 6-3, 6-5, | ||||||
| 5 | or 6-9, any action by the State Commission to suspend or | ||||||
| 6 | revoke a licensee's license may be limited to the license | ||||||
| 7 | for the specific premises where the violation occurred. An | ||||||
| 8 | action for a violation of this Act shall be commenced by | ||||||
| 9 | the State Commission within 2 years after the date the | ||||||
| 10 | State Commission becomes aware of the violation. | ||||||
| 11 | In lieu of suspending or revoking a license, the State | ||||||
| 12 | Commission may impose a fine, upon the State Commission's | ||||||
| 13 | determination and notice after hearing, that a licensee | ||||||
| 14 | has violated any provision of this Act or any rule or | ||||||
| 15 | regulation issued pursuant thereto and in effect for 30 | ||||||
| 16 | days prior to such violation. | ||||||
| 17 | For the purpose of this paragraph (1), when | ||||||
| 18 | determining multiple violations for the sale of alcohol to | ||||||
| 19 | a person under the age of 21, a second or subsequent | ||||||
| 20 | violation for the sale of alcohol to a person under the age | ||||||
| 21 | of 21 shall only be considered if it was committed within 5 | ||||||
| 22 | years after the date when a prior violation for the sale of | ||||||
| 23 | alcohol to a person under the age of 21 was committed. | ||||||
| 24 | The fine imposed under this paragraph may not exceed | ||||||
| 25 | $500 for each violation. Each day that the activity, which | ||||||
| 26 | gave rise to the original fine, continues is a separate | ||||||
| |||||||
| |||||||
| 1 | violation. The maximum fine that may be levied against any | ||||||
| 2 | licensee, for the period of the license, shall not exceed | ||||||
| 3 | $20,000 per violation. The maximum penalty that may be | ||||||
| 4 | imposed on a licensee for selling a bottle of alcoholic | ||||||
| 5 | liquor with a foreign object in it or serving from a bottle | ||||||
| 6 | of alcoholic liquor with a foreign object in it shall be | ||||||
| 7 | the destruction of that bottle of alcoholic liquor for the | ||||||
| 8 | first 10 bottles so sold or served from by the licensee. | ||||||
| 9 | For the eleventh bottle of alcoholic liquor and for each | ||||||
| 10 | third bottle thereafter sold or served from by the | ||||||
| 11 | licensee with a foreign object in it, the maximum penalty | ||||||
| 12 | that may be imposed on the licensee is the destruction of | ||||||
| 13 | the bottle of alcoholic liquor and a fine of up to $50. | ||||||
| 14 | Any notice issued by the State Commission to a | ||||||
| 15 | licensee for a violation of this Act or any notice with | ||||||
| 16 | respect to settlement or offer in compromise shall include | ||||||
| 17 | the field report, photographs, and any other supporting | ||||||
| 18 | documentation necessary to reasonably inform the licensee | ||||||
| 19 | of the nature and extent of the violation or the conduct | ||||||
| 20 | alleged to have occurred. The failure to include such | ||||||
| 21 | required documentation shall result in the dismissal of | ||||||
| 22 | the action. | ||||||
| 23 | (2) To adopt such rules and regulations consistent | ||||||
| 24 | with the provisions of this Act which shall be necessary | ||||||
| 25 | to carry on its functions and duties to the end that the | ||||||
| 26 | health, safety, and welfare of the People of the State of | ||||||
| |||||||
| |||||||
| 1 | Illinois shall be protected and temperance in the | ||||||
| 2 | consumption of alcoholic liquors shall be fostered and | ||||||
| 3 | promoted and to distribute copies of such rules and | ||||||
| 4 | regulations to all licensees affected thereby. | ||||||
| 5 | (3) To call upon other administrative departments of | ||||||
| 6 | the State, county and municipal governments, county and | ||||||
| 7 | city police departments, and prosecuting officers for such | ||||||
| 8 | information and assistance as it deems necessary in the | ||||||
| 9 | performance of its duties. | ||||||
| 10 | (4) To recommend to local commissioners rules and | ||||||
| 11 | regulations, not inconsistent with the law, for the | ||||||
| 12 | distribution and sale of alcoholic liquors throughout the | ||||||
| 13 | State. | ||||||
| 14 | (5) To inspect, or cause to be inspected, any premises | ||||||
| 15 | in this State where alcoholic liquors are manufactured, | ||||||
| 16 | distributed, warehoused, or sold. Nothing in this Act | ||||||
| 17 | authorizes an agent of the State Commission to inspect | ||||||
| 18 | private areas within the premises without reasonable | ||||||
| 19 | suspicion or a warrant during an inspection. "Private | ||||||
| 20 | areas" includes, but is not limited to, safes, personal | ||||||
| 21 | property, and closed desks. | ||||||
| 22 | (5.1) Upon receipt of a complaint or upon having | ||||||
| 23 | knowledge that any person is engaged in business as a | ||||||
| 24 | manufacturer, importing distributor, distributor, or | ||||||
| 25 | retailer without a license or valid license, to conduct an | ||||||
| 26 | investigation. If, after conducting an investigation, the | ||||||
| |||||||
| |||||||
| 1 | State Commission is satisfied that the alleged conduct | ||||||
| 2 | occurred or is occurring, it may issue a cease and desist | ||||||
| 3 | notice as provided in this Act, impose civil penalties as | ||||||
| 4 | provided in this Act, notify the local liquor authority, | ||||||
| 5 | or file a complaint with the State's Attorney's Office of | ||||||
| 6 | the county where the incident occurred or the Attorney | ||||||
| 7 | General. | ||||||
| 8 | (5.2) Upon receipt of a complaint or upon having | ||||||
| 9 | knowledge that any person is shipping alcoholic liquor | ||||||
| 10 | into this State from a point outside of this State if the | ||||||
| 11 | shipment is in violation of this Act, to conduct an | ||||||
| 12 | investigation. If, after conducting an investigation, the | ||||||
| 13 | State Commission is satisfied that the alleged conduct | ||||||
| 14 | occurred or is occurring, it may issue a cease and desist | ||||||
| 15 | notice as provided in this Act, impose civil penalties as | ||||||
| 16 | provided in this Act, notify the foreign jurisdiction, or | ||||||
| 17 | file a complaint with the State's Attorney's Office of the | ||||||
| 18 | county where the incident occurred or the Attorney | ||||||
| 19 | General. | ||||||
| 20 | (5.3) To receive complaints from licensees, local | ||||||
| 21 | officials, law enforcement agencies, organizations, and | ||||||
| 22 | persons stating that any licensee has been or is violating | ||||||
| 23 | any provision of this Act or the rules and regulations | ||||||
| 24 | issued pursuant to this Act. Such complaints shall be in | ||||||
| 25 | writing, signed and sworn to by the person making the | ||||||
| 26 | complaint, and shall state with specificity the facts in | ||||||
| |||||||
| |||||||
| 1 | relation to the alleged violation. If the State Commission | ||||||
| 2 | has reasonable grounds to believe that the complaint | ||||||
| 3 | substantially alleges a violation of this Act or rules and | ||||||
| 4 | regulations adopted pursuant to this Act, it shall conduct | ||||||
| 5 | an investigation. If, after conducting an investigation, | ||||||
| 6 | the State Commission is satisfied that the alleged | ||||||
| 7 | violation did occur, it shall proceed with disciplinary | ||||||
| 8 | action against the licensee as provided in this Act. | ||||||
| 9 | (5.4) To make arrests and issue notices of civil | ||||||
| 10 | violations where necessary for the enforcement of this | ||||||
| 11 | Act. | ||||||
| 12 | (5.5) To investigate any and all unlicensed activity. | ||||||
| 13 | (5.6) To impose civil penalties or fines to any person | ||||||
| 14 | who, without holding a valid license, engages in conduct | ||||||
| 15 | that requires a license pursuant to this Act, in an amount | ||||||
| 16 | not to exceed $20,000 for each offense as determined by | ||||||
| 17 | the State Commission. A civil penalty shall be assessed by | ||||||
| 18 | the State Commission after a hearing is held in accordance | ||||||
| 19 | with the provisions set forth in this Act regarding the | ||||||
| 20 | provision of a hearing for the revocation or suspension of | ||||||
| 21 | a license. | ||||||
| 22 | (6) To hear and determine appeals from orders of a | ||||||
| 23 | local commission in accordance with the provisions of this | ||||||
| 24 | Act, as hereinafter set forth. Hearings under this | ||||||
| 25 | subsection shall be held in Springfield or Chicago, at | ||||||
| 26 | whichever location is the more convenient for the majority | ||||||
| |||||||
| |||||||
| 1 | of persons who are parties to the hearing. | ||||||
| 2 | (7) The State Commission shall establish uniform | ||||||
| 3 | systems of accounts to be kept by all retail licensees | ||||||
| 4 | having more than 4 employees, and, for this purpose, the | ||||||
| 5 | State Commission may classify all retail licensees having | ||||||
| 6 | more than 4 employees and establish a uniform system of | ||||||
| 7 | accounts for each class and prescribe the manner in which | ||||||
| 8 | such accounts shall be kept. The State Commission may also | ||||||
| 9 | prescribe the forms of accounts to be kept by all retail | ||||||
| 10 | licensees having more than 4 employees, including, but not | ||||||
| 11 | limited to, accounts of earnings and expenses and any | ||||||
| 12 | distribution, payment, or other distribution of earnings | ||||||
| 13 | or assets, and any other forms, records, and memoranda | ||||||
| 14 | which in the judgment of the State Commission may be | ||||||
| 15 | necessary or appropriate to carry out any of the | ||||||
| 16 | provisions of this Act, including, but not limited to, | ||||||
| 17 | such forms, records, and memoranda as will readily and | ||||||
| 18 | accurately disclose at all times the beneficial ownership | ||||||
| 19 | of such retail licensed business. The accounts, forms, | ||||||
| 20 | records, and memoranda shall be available at all | ||||||
| 21 | reasonable times for inspection by authorized | ||||||
| 22 | representatives of the State Commission or by any local | ||||||
| 23 | liquor control commissioner or his or her authorized | ||||||
| 24 | representative. The State Commission may, from time to | ||||||
| 25 | time, alter, amend, or repeal, in whole or in part, any | ||||||
| 26 | uniform system of accounts, or the form and manner of | ||||||
| |||||||
| |||||||
| 1 | keeping accounts. | ||||||
| 2 | (8) In the conduct of any hearing authorized to be | ||||||
| 3 | held by the State Commission, to appoint, at the State | ||||||
| 4 | Commission's discretion, hearing officers to conduct | ||||||
| 5 | hearings involving complex issues or issues that will | ||||||
| 6 | require a protracted period of time to resolve, to | ||||||
| 7 | examine, or cause to be examined, under oath, any | ||||||
| 8 | licensee, and to examine or cause to be examined the books | ||||||
| 9 | and records of such licensee; to hear testimony and take | ||||||
| 10 | proof material for its information in the discharge of its | ||||||
| 11 | duties hereunder; to administer or cause to be | ||||||
| 12 | administered oaths; for any such purpose to issue subpoena | ||||||
| 13 | or subpoenas to require the attendance of witnesses and | ||||||
| 14 | the production of books, which shall be effective in any | ||||||
| 15 | part of this State, and to adopt rules to implement its | ||||||
| 16 | powers under this paragraph (8). | ||||||
| 17 | Any circuit court may, by order duly entered, require | ||||||
| 18 | the attendance of witnesses and the production of relevant | ||||||
| 19 | books subpoenaed by the State Commission and the court may | ||||||
| 20 | compel obedience to its order by proceedings for contempt. | ||||||
| 21 | (9) To investigate the administration of laws in | ||||||
| 22 | relation to alcoholic liquors in this and other states and | ||||||
| 23 | any foreign countries, and to recommend from time to time | ||||||
| 24 | to the Governor and through him or her to the legislature | ||||||
| 25 | of this State, such amendments to this Act, if any, as it | ||||||
| 26 | may think desirable and as will serve to further the | ||||||
| |||||||
| |||||||
| 1 | general broad purposes contained in Section 1-2 hereof. | ||||||
| 2 | (10) To adopt such rules and regulations consistent | ||||||
| 3 | with the provisions of this Act which shall be necessary | ||||||
| 4 | for the control, sale, or disposition of alcoholic liquor | ||||||
| 5 | damaged as a result of an accident, wreck, flood, fire, or | ||||||
| 6 | other similar occurrence. | ||||||
| 7 | (11) To develop industry educational programs related | ||||||
| 8 | to responsible serving and selling, particularly in the | ||||||
| 9 | areas of overserving consumers and illegal underage | ||||||
| 10 | purchasing and consumption of alcoholic beverages. | ||||||
| 11 | (11.1) To license persons providing education and | ||||||
| 12 | training to alcohol beverage sellers and servers for | ||||||
| 13 | mandatory and non-mandatory training under the Beverage | ||||||
| 14 | Alcohol Sellers and Servers Education and Training | ||||||
| 15 | (BASSET) programs and to develop and administer a public | ||||||
| 16 | awareness program in Illinois to reduce or eliminate the | ||||||
| 17 | illegal purchase and consumption of alcoholic beverage | ||||||
| 18 | products by persons under the age of 21. Application for a | ||||||
| 19 | license shall be made on forms provided by the State | ||||||
| 20 | Commission. | ||||||
| 21 | (12) To develop and maintain a repository of license | ||||||
| 22 | and regulatory information. | ||||||
| 23 | (13) (Blank). | ||||||
| 24 | (14) On or before April 30, 2008 and every 2 years | ||||||
| 25 | thereafter, the State Commission shall present a written | ||||||
| 26 | report to the Governor and the General Assembly that shall | ||||||
| |||||||
| |||||||
| 1 | be based on a study of the impact of Public Act 95-634 on | ||||||
| 2 | the business of soliciting, selling, and shipping wine | ||||||
| 3 | from inside and outside of this State directly to | ||||||
| 4 | residents of this State. As part of its report, the State | ||||||
| 5 | Commission shall provide all of the following information: | ||||||
| 6 | (A) The amount of State excise and sales tax | ||||||
| 7 | revenues generated. | ||||||
| 8 | (B) The amount of licensing fees received. | ||||||
| 9 | (C) The number of cases of wine shipped from | ||||||
| 10 | inside and outside of this State directly to residents | ||||||
| 11 | of this State. | ||||||
| 12 | (D) The number of alcohol compliance operations | ||||||
| 13 | conducted. | ||||||
| 14 | (E) The number of winery shipper's licenses | ||||||
| 15 | issued. | ||||||
| 16 | (F) The number of each of the following: reported | ||||||
| 17 | violations; cease and desist notices issued by the | ||||||
| 18 | State Commission; notices of violations issued by the | ||||||
| 19 | State Commission and to the Department of Revenue; and | ||||||
| 20 | notices and complaints of violations to law | ||||||
| 21 | enforcement officials, including, without limitation, | ||||||
| 22 | the Illinois Attorney General and the U.S. Department | ||||||
| 23 | of Treasury's Alcohol and Tobacco Tax and Trade | ||||||
| 24 | Bureau. | ||||||
| 25 | (15) As a means to reduce the underage consumption of | ||||||
| 26 | alcoholic liquors, the State Commission shall conduct | ||||||
| |||||||
| |||||||
| 1 | alcohol compliance operations to investigate whether | ||||||
| 2 | businesses that are soliciting, selling, and shipping wine | ||||||
| 3 | from inside or outside of this State directly to residents | ||||||
| 4 | of this State are licensed by this State or are selling or | ||||||
| 5 | attempting to sell wine to persons under 21 years of age in | ||||||
| 6 | violation of this Act. | ||||||
| 7 | (16) The State Commission shall, in addition to | ||||||
| 8 | notifying any appropriate law enforcement agency, submit | ||||||
| 9 | notices of complaints or violations of Sections 6-29 and | ||||||
| 10 | 6-29.1 by persons who do not hold a winery shipper's | ||||||
| 11 | license under this Act to the Illinois Attorney General | ||||||
| 12 | and to the U.S. Department of Treasury's Alcohol and | ||||||
| 13 | Tobacco Tax and Trade Bureau. | ||||||
| 14 | (17)(A) A person licensed to make wine under the laws | ||||||
| 15 | of another state who has a winery shipper's license under | ||||||
| 16 | this Act and annually produces less than 25,000 gallons of | ||||||
| 17 | wine or a person who has a first-class or second-class | ||||||
| 18 | wine manufacturer's license, a first-class or second-class | ||||||
| 19 | wine-maker's license, or a limited wine manufacturer's | ||||||
| 20 | license under this Act and annually produces less than | ||||||
| 21 | 25,000 gallons of wine may make application to the State | ||||||
| 22 | Commission for a self-distribution exemption to allow the | ||||||
| 23 | sale of not more than 5,000 gallons of the exemption | ||||||
| 24 | holder's wine to retail licensees per year and to sell | ||||||
| 25 | cider, mead, or both cider and mead to brewers, class 1 | ||||||
| 26 | brewers, class 2 brewers, class 3 brewers, and class 3 | ||||||
| |||||||
| |||||||
| 1 | craft distillers that, pursuant to subsection (e) of | ||||||
| 2 | Section 6-4 of this Act, sell beer, cider, spirits, mead, | ||||||
| 3 | or any combination thereof to non-licensees at their | ||||||
| 4 | breweries or distilleries. | ||||||
| 5 | (B) In the application, which shall be sworn under | ||||||
| 6 | penalty of perjury, such person shall state (1) the date | ||||||
| 7 | it was established; (2) its volume of production and sales | ||||||
| 8 | for each year since its establishment; (3) its efforts to | ||||||
| 9 | establish distributor relationships; (4) that a | ||||||
| 10 | self-distribution exemption is necessary to facilitate the | ||||||
| 11 | marketing of its wine; and (5) that it will comply with the | ||||||
| 12 | liquor and revenue laws of the United States, this State, | ||||||
| 13 | and any other state where it is licensed. | ||||||
| 14 | (C) The State Commission shall approve the application | ||||||
| 15 | for a self-distribution exemption if such person: (1) is | ||||||
| 16 | in compliance with State revenue and liquor laws; (2) is | ||||||
| 17 | not a member of any affiliated group that produces | ||||||
| 18 | directly or indirectly more than 25,000 gallons of wine | ||||||
| 19 | per annum, 930,000 gallons of beer per annum, or 50,000 | ||||||
| 20 | gallons of spirits per annum; (3) will not annually | ||||||
| 21 | produce for sale more than 25,000 gallons of wine, 930,000 | ||||||
| 22 | gallons of beer, or 50,000 gallons of spirits; and (4) | ||||||
| 23 | will not annually sell more than 5,000 gallons of its wine | ||||||
| 24 | to retail licensees. | ||||||
| 25 | (D) A self-distribution exemption holder shall | ||||||
| 26 | annually certify to the State Commission its production of | ||||||
| |||||||
| |||||||
| 1 | wine in the previous 12 months and its anticipated | ||||||
| 2 | production and sales for the next 12 months. The State | ||||||
| 3 | Commission may fine, suspend, or revoke a | ||||||
| 4 | self-distribution exemption after a hearing if it finds | ||||||
| 5 | that the exemption holder has made a material | ||||||
| 6 | misrepresentation in its application, violated a revenue | ||||||
| 7 | or liquor law of Illinois, exceeded production of 25,000 | ||||||
| 8 | gallons of wine, 930,000 gallons of beer, or 50,000 | ||||||
| 9 | gallons of spirits in any calendar year, or become part of | ||||||
| 10 | an affiliated group producing more than 25,000 gallons of | ||||||
| 11 | wine, 930,000 gallons of beer, or 50,000 gallons of | ||||||
| 12 | spirits. | ||||||
| 13 | (E) Except in hearings for violations of this Act or | ||||||
| 14 | Public Act 95-634 or a bona fide investigation by duly | ||||||
| 15 | sworn law enforcement officials, the State Commission, or | ||||||
| 16 | its agents, the State Commission shall maintain the | ||||||
| 17 | production and sales information of a self-distribution | ||||||
| 18 | exemption holder as confidential and shall not release | ||||||
| 19 | such information to any person. | ||||||
| 20 | (F) The State Commission shall issue regulations | ||||||
| 21 | governing self-distribution exemptions consistent with | ||||||
| 22 | this Section and this Act. | ||||||
| 23 | (G) Nothing in this paragraph (17) shall prohibit a | ||||||
| 24 | self-distribution exemption holder from entering into or | ||||||
| 25 | simultaneously having a distribution agreement with a | ||||||
| 26 | licensed Illinois distributor. | ||||||
| |||||||
| |||||||
| 1 | (H) It is the intent of this paragraph (17) to promote | ||||||
| 2 | and continue orderly markets. The General Assembly finds | ||||||
| 3 | that, in order to preserve Illinois' regulatory | ||||||
| 4 | distribution system, it is necessary to create an | ||||||
| 5 | exception for smaller makers of wine as their wines are | ||||||
| 6 | frequently adjusted in varietals, mixes, vintages, and | ||||||
| 7 | taste to find and create market niches sometimes too small | ||||||
| 8 | for distributor or importing distributor business | ||||||
| 9 | strategies. Limited self-distribution rights will afford | ||||||
| 10 | and allow smaller makers of wine access to the marketplace | ||||||
| 11 | in order to develop a customer base without impairing the | ||||||
| 12 | integrity of the 3-tier system. | ||||||
| 13 | (18)(A) A class 1 brewer licensee, who must also be | ||||||
| 14 | either a licensed brewer or licensed non-resident dealer | ||||||
| 15 | and annually manufacture less than 930,000 gallons of | ||||||
| 16 | beer, may make application to the State Commission for a | ||||||
| 17 | self-distribution exemption to allow the sale of not more | ||||||
| 18 | than 232,500 gallons per year of the exemption holder's | ||||||
| 19 | beer to retail licensees and to brewers, class 1 brewers, | ||||||
| 20 | and class 2 brewers that, pursuant to subsection (e) of | ||||||
| 21 | Section 6-4 of this Act, sell beer, cider, mead, or any | ||||||
| 22 | combination thereof to non-licensees at their breweries. | ||||||
| 23 | (B) In the application, which shall be sworn under | ||||||
| 24 | penalty of perjury, the class 1 brewer licensee shall | ||||||
| 25 | state (1) the date it was established; (2) its volume of | ||||||
| 26 | beer manufactured and sold for each year since its | ||||||
| |||||||
| |||||||
| 1 | establishment; (3) its efforts to establish distributor | ||||||
| 2 | relationships; (4) that a self-distribution exemption is | ||||||
| 3 | necessary to facilitate the marketing of its beer; and (5) | ||||||
| 4 | that it will comply with the alcoholic beverage and | ||||||
| 5 | revenue laws of the United States, this State, and any | ||||||
| 6 | other state where it is licensed. | ||||||
| 7 | (C) Any application submitted shall be posted on the | ||||||
| 8 | State Commission's website at least 45 days prior to | ||||||
| 9 | action by the State Commission. The State Commission shall | ||||||
| 10 | approve the application for a self-distribution exemption | ||||||
| 11 | if the class 1 brewer licensee: (1) is in compliance with | ||||||
| 12 | the State, revenue, and alcoholic beverage laws; (2) is | ||||||
| 13 | not a member of any affiliated group that manufactures, | ||||||
| 14 | directly or indirectly, more than 930,000 gallons of beer | ||||||
| 15 | per annum, 25,000 gallons of wine per annum, or 50,000 | ||||||
| 16 | gallons of spirits per annum; (3) shall not annually | ||||||
| 17 | manufacture for sale more than 930,000 gallons of beer, | ||||||
| 18 | 25,000 gallons of wine, or 50,000 gallons of spirits; (4) | ||||||
| 19 | shall not annually sell more than 232,500 gallons of its | ||||||
| 20 | beer to retail licensees and class 3 brewers and to | ||||||
| 21 | brewers, class 1 brewers, and class 2 brewers that, | ||||||
| 22 | pursuant to subsection (e) of Section 6-4 of this Act, | ||||||
| 23 | sell beer, cider, mead, or any combination thereof to | ||||||
| 24 | non-licensees at their breweries; and (5) has relinquished | ||||||
| 25 | any brew pub license held by the licensee, including any | ||||||
| 26 | ownership interest it held in the licensed brew pub. | ||||||
| |||||||
| |||||||
| 1 | (D) A self-distribution exemption holder shall | ||||||
| 2 | annually certify to the State Commission its manufacture | ||||||
| 3 | of beer during the previous 12 months and its anticipated | ||||||
| 4 | manufacture and sales of beer for the next 12 months. The | ||||||
| 5 | State 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 alcoholic beverage law of Illinois, exceeded the | ||||||
| 10 | manufacture of 930,000 gallons of beer, 25,000 gallons of | ||||||
| 11 | wine, or 50,000 gallons of spirits in any calendar year or | ||||||
| 12 | became part of an affiliated group manufacturing more than | ||||||
| 13 | 930,000 gallons of beer, 25,000 gallons of wine, or 50,000 | ||||||
| 14 | gallons of spirits. | ||||||
| 15 | (E) The State Commission shall issue rules and | ||||||
| 16 | regulations governing self-distribution exemptions | ||||||
| 17 | consistent with this Act. | ||||||
| 18 | (F) Nothing in this paragraph (18) shall prohibit a | ||||||
| 19 | self-distribution exemption holder from entering into or | ||||||
| 20 | simultaneously having a distribution agreement with a | ||||||
| 21 | licensed Illinois importing distributor or a distributor. | ||||||
| 22 | If a self-distribution exemption holder enters into a | ||||||
| 23 | distribution agreement and has assigned distribution | ||||||
| 24 | rights to an importing distributor or distributor, then | ||||||
| 25 | the self-distribution exemption holder's distribution | ||||||
| 26 | rights in the assigned territories shall cease in a | ||||||
| |||||||
| |||||||
| 1 | reasonable time not to exceed 60 days. | ||||||
| 2 | (G) It is the intent of this paragraph (18) to promote | ||||||
| 3 | and continue orderly markets. The General Assembly finds | ||||||
| 4 | that in order to preserve Illinois' regulatory | ||||||
| 5 | distribution system, it is necessary to create an | ||||||
| 6 | exception for smaller manufacturers in order to afford and | ||||||
| 7 | allow such smaller manufacturers of beer access to the | ||||||
| 8 | marketplace in order to develop a customer base without | ||||||
| 9 | impairing the integrity of the 3-tier system. | ||||||
| 10 | (19)(A) A class 1 craft distiller licensee or a | ||||||
| 11 | non-resident dealer who manufactures less than 50,000 | ||||||
| 12 | gallons of distilled spirits per year may make application | ||||||
| 13 | to the State Commission for a self-distribution exemption | ||||||
| 14 | to allow the sale of not more than 5,000 gallons of the | ||||||
| 15 | exemption holder's spirits to retail licensees per year. | ||||||
| 16 | (B) In the application, which shall be sworn under | ||||||
| 17 | penalty of perjury, the class 1 craft distiller licensee | ||||||
| 18 | or non-resident dealer shall state (1) the date it was | ||||||
| 19 | established; (2) its volume of spirits manufactured and | ||||||
| 20 | sold for each year since its establishment; (3) its | ||||||
| 21 | efforts to establish distributor relationships; (4) that a | ||||||
| 22 | self-distribution exemption is necessary to facilitate the | ||||||
| 23 | marketing of its spirits; and (5) that it will comply with | ||||||
| 24 | the alcoholic beverage and revenue laws of the United | ||||||
| 25 | States, this State, and any other state where it is | ||||||
| 26 | licensed. | ||||||
| |||||||
| |||||||
| 1 | (C) Any application submitted shall be posted on the | ||||||
| 2 | State Commission's website at least 45 days prior to | ||||||
| 3 | action by the State Commission. The State Commission shall | ||||||
| 4 | approve the application for a self-distribution exemption | ||||||
| 5 | if the applicant: (1) is in compliance with State revenue | ||||||
| 6 | and alcoholic beverage laws; (2) is not a member of any | ||||||
| 7 | affiliated group that produces more than 50,000 gallons of | ||||||
| 8 | spirits per annum, 930,000 gallons of beer per annum, or | ||||||
| 9 | 25,000 gallons of wine per annum; (3) does not annually | ||||||
| 10 | manufacture for sale more than 50,000 gallons of spirits, | ||||||
| 11 | 930,000 gallons of beer, or 25,000 gallons of wine; and | ||||||
| 12 | (4) does not annually sell more than 5,000 gallons of its | ||||||
| 13 | spirits to retail licensees. | ||||||
| 14 | (D) A self-distribution exemption holder shall | ||||||
| 15 | annually certify to the State Commission its manufacture | ||||||
| 16 | of spirits during the previous 12 months and its | ||||||
| 17 | anticipated manufacture and sales of spirits for the next | ||||||
| 18 | 12 months. The State Commission may fine, suspend, or | ||||||
| 19 | revoke a self-distribution exemption after a hearing if it | ||||||
| 20 | finds that the exemption holder has made a material | ||||||
| 21 | misrepresentation in its application, violated a revenue | ||||||
| 22 | or alcoholic beverage law of Illinois, exceeded the | ||||||
| 23 | manufacture of 50,000 gallons of spirits, 930,000 gallons | ||||||
| 24 | of beer, or 25,000 gallons of wine in any calendar year, or | ||||||
| 25 | has become part of an affiliated group manufacturing more | ||||||
| 26 | than 50,000 gallons of spirits, 930,000 gallons of beer, | ||||||
| |||||||
| |||||||
| 1 | or 25,000 gallons of wine. | ||||||
| 2 | (E) The State Commission shall adopt rules governing | ||||||
| 3 | self-distribution exemptions consistent with this Act. | ||||||
| 4 | (F) Nothing in this paragraph (19) shall prohibit a | ||||||
| 5 | self-distribution exemption holder from entering into or | ||||||
| 6 | simultaneously having a distribution agreement with a | ||||||
| 7 | licensed Illinois importing distributor or a distributor. | ||||||
| 8 | (G) It is the intent of this paragraph (19) to promote | ||||||
| 9 | and continue orderly markets. The General Assembly finds | ||||||
| 10 | that in order to preserve Illinois' regulatory | ||||||
| 11 | distribution system, it is necessary to create an | ||||||
| 12 | exception for smaller manufacturers in order to afford and | ||||||
| 13 | allow such smaller manufacturers of spirits access to the | ||||||
| 14 | marketplace in order to develop a customer base without | ||||||
| 15 | impairing the integrity of the 3-tier system. | ||||||
| 16 | (20)(A) A class 3 brewer licensee who must manufacture | ||||||
| 17 | less than 465,000 gallons of beer in the aggregate and not | ||||||
| 18 | more than 155,000 gallons at any single brewery premises | ||||||
| 19 | may make application to the State Commission for a | ||||||
| 20 | self-distribution exemption to allow the sale of not more | ||||||
| 21 | than 6,200 gallons of beer from each in-state or | ||||||
| 22 | out-of-state class 3 brewery premises, which shall not | ||||||
| 23 | exceed 18,600 gallons annually in the aggregate, that is | ||||||
| 24 | manufactured at a wholly owned class 3 brewer's in-state | ||||||
| 25 | or out-of-state licensed premises to retail licensees and | ||||||
| 26 | class 3 brewers and to brewers, class 1 brewers, class 2 | ||||||
| |||||||
| |||||||
| 1 | brewers that, pursuant to subsection (e) of Section 6-4, | ||||||
| 2 | sell beer, cider, or both beer and cider to non-licensees | ||||||
| 3 | at their licensed breweries. | ||||||
| 4 | (B) In the application, which shall be sworn under | ||||||
| 5 | penalty of perjury, the class 3 brewer licensee shall | ||||||
| 6 | state: | ||||||
| 7 | (1) the date it was established; | ||||||
| 8 | (2) its volume of beer manufactured and sold for | ||||||
| 9 | each year since its establishment; | ||||||
| 10 | (3) its efforts to establish distributor | ||||||
| 11 | relationships; | ||||||
| 12 | (4) that a self-distribution exemption is | ||||||
| 13 | necessary to facilitate the marketing of its beer; and | ||||||
| 14 | (5) that it will comply with the alcoholic | ||||||
| 15 | beverage and revenue laws of the United States, this | ||||||
| 16 | State, and any other state where it is licensed. | ||||||
| 17 | (C) Any application submitted shall be posted on the | ||||||
| 18 | State Commission's website at least 45 days before action | ||||||
| 19 | by the State Commission. The State Commission shall | ||||||
| 20 | approve the application for a self-distribution exemption | ||||||
| 21 | if the class 3 brewer licensee: (1) is in compliance with | ||||||
| 22 | the State, revenue, and alcoholic beverage laws; (2) is | ||||||
| 23 | not a member of any affiliated group that manufacturers, | ||||||
| 24 | directly or indirectly, more than 465,000 gallons of beer | ||||||
| 25 | per annum; (3) shall not annually manufacture for sale | ||||||
| 26 | more than 465,000 gallons of beer or more than 155,000 | ||||||
| |||||||
| |||||||
| 1 | gallons at any single brewery premises; and (4) shall not | ||||||
| 2 | annually sell more than 6,200 gallons of beer from each | ||||||
| 3 | in-state or out-of-state class 3 brewery premises, and | ||||||
| 4 | shall not exceed 18,600 gallons annually in the aggregate, | ||||||
| 5 | to retail licensees and class 3 brewers and to brewers, | ||||||
| 6 | class 1 brewers, and class 2 brewers that, pursuant to | ||||||
| 7 | subsection (e) of Section 6-4 of this Act, sell beer, | ||||||
| 8 | cider, or both beer and cider to non-licensees at their | ||||||
| 9 | breweries. | ||||||
| 10 | (D) A self-distribution exemption holder shall | ||||||
| 11 | annually certify to the State Commission its manufacture | ||||||
| 12 | of beer during the previous 12 months and its anticipated | ||||||
| 13 | manufacture and sales of beer for the next 12 months. The | ||||||
| 14 | State Commission may fine, suspend, or revoke a | ||||||
| 15 | self-distribution exemption after a hearing if it finds | ||||||
| 16 | that the exemption holder has made a material | ||||||
| 17 | misrepresentation in its application, violated a revenue | ||||||
| 18 | or alcoholic beverage law of Illinois, exceeded the | ||||||
| 19 | manufacture of 465,000 gallons of beer in any calendar | ||||||
| 20 | year or became part of an affiliated group manufacturing | ||||||
| 21 | more than 465,000 gallons of beer, or exceeded the sale to | ||||||
| 22 | retail licensees, brewers, class 1 brewers, class 2 | ||||||
| 23 | brewers, and class 3 brewers of 6,200 gallons per brewery | ||||||
| 24 | location or 18,600 gallons in the aggregate. | ||||||
| 25 | (E) The State Commission may adopt rules governing | ||||||
| 26 | self-distribution exemptions consistent with this Act. | ||||||
| |||||||
| |||||||
| 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 | If a self-distribution exemption holder enters into a | ||||||
| 6 | distribution agreement and has assigned distribution | ||||||
| 7 | rights to an importing distributor or distributor, then | ||||||
| 8 | the self-distribution exemption holder's distribution | ||||||
| 9 | rights in the assigned territories shall cease in a | ||||||
| 10 | reasonable time not to exceed 60 days. | ||||||
| 11 | (G) It is the intent of this paragraph to promote and | ||||||
| 12 | continue orderly markets. The General Assembly finds that | ||||||
| 13 | in order to preserve Illinois' regulatory distribution | ||||||
| 14 | system, it is necessary to create an exception for smaller | ||||||
| 15 | manufacturers in order to afford and allow such smaller | ||||||
| 16 | manufacturers of beer access to the marketplace in order | ||||||
| 17 | to develop a customer base without impairing the integrity | ||||||
| 18 | of the 3-tier system. | ||||||
| 19 | (21)(A) A class 3 craft distiller licensee who | ||||||
| 20 | manufactures less than 100,000 gallons of spirits in the | ||||||
| 21 | aggregate may make application to the State Commission for | ||||||
| 22 | a self-distribution exemption to allow the sale of not | ||||||
| 23 | more than 5,000 gallons of the exemption holder's spirits | ||||||
| 24 | per year that are manufactured at a wholly owned class 3 | ||||||
| 25 | craft distiller's in-state or out-of-state licensed | ||||||
| 26 | premises to retail licensees and class 3 brewers and to | ||||||
| |||||||
| |||||||
| 1 | class 3 craft distillers that, pursuant to subsection (e) | ||||||
| 2 | of Section 6-4, sell beer, cider, spirits, or any | ||||||
| 3 | combination thereof to non-licensees at their licensed | ||||||
| 4 | distilleries. | ||||||
| 5 | (B) In the application, which shall be sworn under | ||||||
| 6 | penalty of perjury, the class 3 craft distiller licensee | ||||||
| 7 | shall state: | ||||||
| 8 | (1) the date it was established; | ||||||
| 9 | (2) its volume of spirits manufactured and sold | ||||||
| 10 | for each year since its establishment; | ||||||
| 11 | (3) its efforts to establish distributor | ||||||
| 12 | relationships; | ||||||
| 13 | (4) that a self-distribution exemption is | ||||||
| 14 | necessary to facilitate the marketing of its spirits; | ||||||
| 15 | 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 craft distiller licensee: | ||||||
| 24 | (1) is in compliance with the State, revenue, and | ||||||
| 25 | alcoholic beverage laws; | ||||||
| 26 | (2) is not a member of any affiliated group that | ||||||
| |||||||
| |||||||
| 1 | manufacturers, directly or indirectly, more than | ||||||
| 2 | 100,000 gallons of spirits per annum; | ||||||
| 3 | (3) shall not annually manufacture for sale more | ||||||
| 4 | than 100,000 gallons of spirits; and | ||||||
| 5 | (4) does not sell more than 5,000 gallons of its | ||||||
| 6 | spirits per year to retail licensees and class 3 | ||||||
| 7 | brewers and to class 3 craft distillers that, pursuant | ||||||
| 8 | to subsection (e) of Section 6-4, sell beer, cider, | ||||||
| 9 | spirits, or any combination thereof to non-licensees | ||||||
| 10 | at their licensed distilleries. | ||||||
| 11 | (D) A self-distribution exemption holder shall | ||||||
| 12 | annually certify to the State Commission its manufacture | ||||||
| 13 | of spirits during the previous 12 months and its | ||||||
| 14 | anticipated manufacture and sales of spirits for the next | ||||||
| 15 | 12 months. The State Commission may fine, suspend, or | ||||||
| 16 | revoke a self-distribution exemption after a hearing if it | ||||||
| 17 | finds that the exemption holder has made a material | ||||||
| 18 | misrepresentation in its application, violated a revenue | ||||||
| 19 | or alcoholic beverage law of Illinois, exceeded the | ||||||
| 20 | manufacture of 100,000 gallons of spirits in any calendar | ||||||
| 21 | year, or became part of an affiliated group manufacturing | ||||||
| 22 | more than 100,000 gallons of spirits. | ||||||
| 23 | (E) The State Commission may adopt rules governing | ||||||
| 24 | self-distribution exemptions consistent with this Act. | ||||||
| 25 | (F) Nothing in this paragraph shall prohibit a | ||||||
| 26 | self-distribution exemption holder from entering into or | ||||||
| |||||||
| |||||||
| 1 | simultaneously having a distribution agreement with a | ||||||
| 2 | licensed Illinois importing distributor or a distributor. | ||||||
| 3 | (G) It is the intent of this paragraph to promote and | ||||||
| 4 | continue orderly markets. The General Assembly finds that, | ||||||
| 5 | in order to preserve Illinois' regulatory distribution | ||||||
| 6 | system, it is necessary to create an exception for smaller | ||||||
| 7 | manufacturers in order to afford and allow such smaller | ||||||
| 8 | manufacturers of spirits access to the marketplace in | ||||||
| 9 | order to develop a customer base without impairing the | ||||||
| 10 | integrity of the 3-tier system. | ||||||
| 11 | (b) On or before April 30, 1999, the Commission shall | ||||||
| 12 | present a written report to the Governor and the General | ||||||
| 13 | Assembly that shall be based on a study of the impact of Public | ||||||
| 14 | Act 90-739 on the business of soliciting, selling, and | ||||||
| 15 | shipping alcoholic liquor from outside of this State directly | ||||||
| 16 | to residents of this State. | ||||||
| 17 | As part of its report, the Commission shall provide the | ||||||
| 18 | following information: | ||||||
| 19 | (i) the amount of State excise and sales tax revenues | ||||||
| 20 | generated as a result of Public Act 90-739; | ||||||
| 21 | (ii) the amount of licensing fees received as a result | ||||||
| 22 | of Public Act 90-739; | ||||||
| 23 | (iii) the number of reported violations, the number of | ||||||
| 24 | cease and desist notices issued by the Commission, the | ||||||
| 25 | number of notices of violations issued to the Department | ||||||
| 26 | of Revenue, and the number of notices and complaints of | ||||||
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| 1 | violations to law enforcement officials. | ||||||
| 2 | (Source: P.A. 104-451, eff. 7-1-26.) | ||||||
| 3 | Section 95. No acceleration or delay. Where this Act makes | ||||||
| 4 | changes in a statute that is represented in this Act by text | ||||||
| 5 | that is not yet or no longer in effect (for example, a Section | ||||||
| 6 | represented by multiple versions), the use of that text does | ||||||
| 7 | not accelerate or delay the taking effect of (i) the changes | ||||||
| 8 | made by this Act or (ii) provisions derived from any other | ||||||
| 9 | Public Act. | ||||||
| 10 | Section 99. Effective date. This Act takes effect upon | ||||||
| 11 | becoming law. | ||||||