Rep. Michael J. Zalewski

Adopted in House on Oct 29, 2019

 

 


 

 


 
10100HB1271ham001LRB101 03465 RPS 64147 a

1
AMENDMENT TO HOUSE BILL 1271

2    AMENDMENT NO. ______. Amend House Bill 1271 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 1-3.40, 5-1, 5-3, and 6-4 as follows:
 
6    (235 ILCS 5/1-3.40)
7    Sec. 1-3.40. Manufacturer class license holder.
8"Manufacturer class license holder" means any holder of a
9Manufacturer's license as provided in Section 5-1 of this Act.
10The Manufacturer's licenses are: a Class 1. Distiller, a Class
112. Rectifier, a Class 3. Brewer, a Class 4. First Class Wine
12Manufacturer, a Class 5. Second Class Wine Manufacturer, a
13Class 6. First Class Winemaker, a Class 7. Second Class
14Winemaker, a Class 8. Limited Wine Manufacturer, a Class 9.
15Craft Distiller, a Class 10 9. Class 1 Craft Distiller, a Class
1611 10. Class 2 Craft Distiller, a Class 12 11. Class 1 Brewer,

 

 

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1and a Class 13 12. Class 2 Brewer, and any future
2Manufacturer's licenses established by law.
3(Source: P.A. 101-482, eff. 8-23-19.)
 
4    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
5    Sec. 5-1. Licenses issued by the Illinois Liquor Control
6Commission shall be of the following classes:
7    (a) Manufacturer's license - Class 1. Distiller, Class 2.
8Rectifier, Class 3. Brewer, Class 4. First Class Wine
9Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
10First Class Winemaker, Class 7. Second Class Winemaker, Class
118. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1210 9. Class 1 Craft Distiller, Class 11 10. Class 2 Craft
13Distiller, Class 12 11. Class 1 Brewer, Class 13 12. Class 2
14Brewer,
15    (b) Distributor's license,
16    (c) Importing Distributor's license,
17    (d) Retailer's license,
18    (e) Special Event Retailer's license (not-for-profit),
19    (f) Railroad license,
20    (g) Boat license,
21    (h) Non-Beverage User's license,
22    (i) Wine-maker's premises license,
23    (j) Airplane license,
24    (k) Foreign importer's license,
25    (l) Broker's license,

 

 

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1    (m) Non-resident dealer's license,
2    (n) Brew Pub license,
3    (o) Auction liquor license,
4    (p) Caterer retailer license,
5    (q) Special use permit license,
6    (r) Winery shipper's license,
7    (s) Craft distiller tasting permit,
8    (t) Brewer warehouse permit,
9    (u) Distilling pub license,
10    (v) Craft distiller warehouse permit.
11    No person, firm, partnership, corporation, or other legal
12business entity that is engaged in the manufacturing of wine
13may concurrently obtain and hold a wine-maker's license and a
14wine manufacturer's license.
15    (a) A manufacturer's license shall allow the manufacture,
16importation in bulk, storage, distribution and sale of
17alcoholic liquor to persons without the State, as may be
18permitted by law and to licensees in this State as follows:
19    Class 1. A Distiller may make sales and deliveries of
20alcoholic liquor to distillers, rectifiers, importing
21distributors, distributors and non-beverage users and to no
22other licensees.
23    Class 2. A Rectifier, who is not a distiller, as defined
24herein, may make sales and deliveries of alcoholic liquor to
25rectifiers, importing distributors, distributors, retailers
26and non-beverage users and to no other licensees.

 

 

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1    Class 3. A Brewer may make sales and deliveries of beer to
2importing distributors and distributors and may make sales as
3authorized under subsection (e) of Section 6-4 of this Act.
4    Class 4. A first class wine-manufacturer may make sales and
5deliveries of up to 50,000 gallons of wine to manufacturers,
6importing distributors and distributors, and to no other
7licensees.
8    Class 5. A second class Wine manufacturer may make sales
9and deliveries of more than 50,000 gallons of wine to
10manufacturers, importing distributors and distributors and to
11no other licensees.
12    Class 6. A first-class wine-maker's license shall allow the
13manufacture of up to 50,000 gallons of wine per year, and the
14storage and sale of such wine to distributors in the State and
15to persons without the State, as may be permitted by law. A
16person who, prior to June 1, 2008 (the effective date of Public
17Act 95-634), is a holder of a first-class wine-maker's license
18and annually produces more than 25,000 gallons of its own wine
19and who distributes its wine to licensed retailers shall cease
20this practice on or before July 1, 2008 in compliance with
21Public Act 95-634.
22    Class 7. A second-class wine-maker's license shall allow
23the manufacture of between 50,000 and 150,000 gallons of wine
24per year, and the storage and sale of such wine to distributors
25in this State and to persons without the State, as may be
26permitted by law. A person who, prior to June 1, 2008 (the

 

 

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1effective date of Public Act 95-634), is a holder of a
2second-class wine-maker's license and annually produces more
3than 25,000 gallons of its own wine and who distributes its
4wine to licensed retailers shall cease this practice on or
5before July 1, 2008 in compliance with Public Act 95-634.
6    Class 8. A limited wine-manufacturer may make sales and
7deliveries not to exceed 40,000 gallons of wine per year to
8distributors, and to non-licensees in accordance with the
9provisions of this Act.
10    Class 9. A craft distiller license, which may only be held
11by a class 1 craft distiller licensee or class 2 craft
12distiller licensee but not held by both a class 1 craft
13distiller licensee and a class 2 craft distiller licensee,
14shall grant all rights conveyed by either: (i) a class 1 craft
15distiller license if the craft distiller holds a class 1 craft
16distiller license; or (ii) a class 2 craft distiller licensee
17if the craft distiller holds a class 2 craft distiller license.
18    Class 10 9. A class 1 craft distiller license, which may
19only be issued to a licensed craft distiller licensed distiller
20or licensed non-resident dealer, shall allow the manufacture of
21up to 50,000 gallons of spirits per year provided that the
22class 1 craft distiller licensee does not manufacture more than
23a combined 50,000 gallons of spirits per year and is not a
24member of or affiliated with, directly or indirectly, a
25manufacturer that produces more than 50,000 gallons of spirits
26per year or any other alcoholic liquor. A class 1 craft

 

 

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1distiller licensee may make sales and deliveries to importing
2distributors and distributors and to retail licensees in
3accordance with the conditions set forth in paragraph (19) of
4subsection (a) of Section 3-12 of this Act. However, the
5aggregate amount of spirits sold to non-licensees and sold or
6delivered to retail licensees may not exceed 5,000 gallons per
7year.
8    A class 1 craft distiller licensee may sell up to 5,000
9gallons of such spirits to non-licensees to the extent
10permitted by any exemption approved by the State Commission
11pursuant to Section 6-4 of this Act. A class 1 craft distiller
12license holder may store such spirits at a non-contiguous
13licensed location, but at no time shall a class 1 craft
14distiller license holder directly or indirectly produce in the
15aggregate more than 50,000 gallons of spirits per year.
16    A class 1 craft distiller licensee may hold more than one
17class 1 craft distiller's license. However, a class 1 craft
18distiller that holds more than one class 1 craft distiller
19license shall not manufacture, in the aggregate, more than
2050,000 gallons of spirits by distillation per year and shall
21not sell, in the aggregate, more than 5,000 gallons of such
22spirits to non-licensees in accordance with an exemption
23approved by the State Commission pursuant to Section 6-4 of
24this Act.
25    Class 11 10. A class 2 craft distiller license, which may
26only be issued to a licensed craft distiller licensed distiller

 

 

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

 

 

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1licensed location.
2    A class 2 craft distiller shall, prior to transferring
3spirits to a distilling pub wholly owned by the class 2 craft
4distiller, furnish a written notice to the State Commission of
5intent to transfer spirits setting forth the name and address
6of the distilling pub and shall annually submit to the State
7Commission a verified report identifying the total gallons of
8spirits transferred to the distilling pub wholly owned by the
9class 2 craft distiller.
10    A class 2 craft distiller license holder may store such
11spirits at a non-contiguous licensed location, but at no time
12shall a class 2 craft distiller license holder directly or
13indirectly produce in the aggregate more than 100,000 gallons
14of spirits per year.
15    Class 12 11. A class 1 brewer license, which may only be
16issued to a licensed brewer or licensed non-resident dealer,
17shall allow the manufacture of up to 930,000 gallons of beer
18per year provided that the class 1 brewer licensee does not
19manufacture more than a combined 930,000 gallons of beer per
20year and is not a member of or affiliated with, directly or
21indirectly, a manufacturer that produces more than 930,000
22gallons of beer per year or any other alcoholic liquor. A class
231 brewer licensee may make sales and deliveries to importing
24distributors and distributors and to retail licensees in
25accordance with the conditions set forth in paragraph (18) of
26subsection (a) of Section 3-12 of this Act. If the State

 

 

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1Commission provides prior approval, a class 1 brewer may
2annually transfer up to 930,000 gallons of beer manufactured by
3that class 1 brewer to the premises of a licensed class 1
4brewer wholly owned and operated by the same licensee.
5    Class 13 12. A class 2 brewer license, which may only be
6issued to a licensed brewer or licensed non-resident dealer,
7shall allow the manufacture of up to 3,720,000 gallons of beer
8per year provided that the class 2 brewer licensee does not
9manufacture more than a combined 3,720,000 gallons of beer per
10year and is not a member of or affiliated with, directly or
11indirectly, a manufacturer that produces more than 3,720,000
12gallons of beer per year or any other alcoholic liquor. A class
132 brewer licensee may make sales and deliveries to importing
14distributors and distributors, but shall not make sales or
15deliveries to any other licensee. If the State Commission
16provides prior approval, a class 2 brewer licensee may annually
17transfer up to 3,720,000 gallons of beer manufactured by that
18class 2 brewer licensee to the premises of a licensed class 2
19brewer wholly owned and operated by the same licensee.
20    A class 2 brewer may transfer beer to a brew pub wholly
21owned and operated by the class 2 brewer subject to the
22following limitations and restrictions: (i) the transfer shall
23not annually exceed more than 31,000 gallons; (ii) the annual
24amount transferred shall reduce the brew pub's annual permitted
25production limit; (iii) all beer transferred shall be subject
26to Article VIII of this Act; (iv) a written record shall be

 

 

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1maintained by the brewer and brew pub specifying the amount,
2date of delivery, and receipt of the product by the brew pub;
3and (v) the brew pub shall be located no farther than 80 miles
4from the class 2 brewer's licensed location.
5    A class 2 brewer shall, prior to transferring beer to a
6brew pub wholly owned by the class 2 brewer, furnish a written
7notice to the State Commission of intent to transfer beer
8setting forth the name and address of the brew pub and shall
9annually submit to the State Commission a verified report
10identifying the total gallons of beer transferred to the brew
11pub wholly owned by the class 2 brewer.
12    (a-1) A manufacturer which is licensed in this State to
13make sales or deliveries of alcoholic liquor to licensed
14distributors or importing distributors and which enlists
15agents, representatives, or individuals acting on its behalf
16who contact licensed retailers on a regular and continual basis
17in this State must register those agents, representatives, or
18persons acting on its behalf with the State Commission.
19    Registration of agents, representatives, or persons acting
20on behalf of a manufacturer is fulfilled by submitting a form
21to the Commission. The form shall be developed by the
22Commission and shall include the name and address of the
23applicant, the name and address of the manufacturer he or she
24represents, the territory or areas assigned to sell to or
25discuss pricing terms of alcoholic liquor, and any other
26questions deemed appropriate and necessary. All statements in

 

 

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1the forms required to be made by law or by rule shall be deemed
2material, and any person who knowingly misstates any material
3fact under oath in an application is guilty of a Class B
4misdemeanor. Fraud, misrepresentation, false statements,
5misleading statements, evasions, or suppression of material
6facts in the securing of a registration are grounds for
7suspension or revocation of the registration. The State
8Commission shall post a list of registered agents on the
9Commission's website.
10    (b) A distributor's license shall allow (i) the wholesale
11purchase and storage of alcoholic liquors and sale of alcoholic
12liquors to licensees in this State and to persons without the
13State, as may be permitted by law; (ii) the sale of beer,
14cider, or both beer and cider to brewers, class 1 brewers, and
15class 2 brewers that, pursuant to subsection (e) of Section 6-4
16of this Act, sell beer, cider, or both beer and cider to
17non-licensees at their breweries; and (iii) the sale of
18vermouth to class 1 craft distillers and class 2 craft
19distillers that, pursuant to subsection (e) of Section 6-4 of
20this Act, sell spirits, vermouth, or both spirits and vermouth
21to non-licensees at their distilleries. No person licensed as a
22distributor shall be granted a non-resident dealer's license.
23    (c) An importing distributor's license may be issued to and
24held by those only who are duly licensed distributors, upon the
25filing of an application by a duly licensed distributor, with
26the Commission and the Commission shall, without the payment of

 

 

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1any fee, immediately issue such importing distributor's
2license to the applicant, which shall allow the importation of
3alcoholic liquor by the licensee into this State from any point
4in the United States outside this State, and the purchase of
5alcoholic liquor in barrels, casks or other bulk containers and
6the bottling of such alcoholic liquors before resale thereof,
7but all bottles or containers so filled shall be sealed,
8labeled, stamped and otherwise made to comply with all
9provisions, rules and regulations governing manufacturers in
10the preparation and bottling of alcoholic liquors. The
11importing distributor's license shall permit such licensee to
12purchase alcoholic liquor from Illinois licensed non-resident
13dealers and foreign importers only. No person licensed as an
14importing distributor shall be granted a non-resident dealer's
15license.
16    (d) A retailer's license shall allow the licensee to sell
17and offer for sale at retail, only in the premises specified in
18the license, alcoholic liquor for use or consumption, but not
19for resale in any form. Nothing in Public Act 95-634 shall
20deny, limit, remove, or restrict the ability of a holder of a
21retailer's license to transfer, deliver, or ship alcoholic
22liquor to the purchaser for use or consumption subject to any
23applicable local law or ordinance. Any retail license issued to
24a manufacturer shall only permit the manufacturer to sell beer
25at retail on the premises actually occupied by the
26manufacturer. For the purpose of further describing the type of

 

 

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1business conducted at a retail licensed premises, a retailer's
2licensee may be designated by the State Commission as (i) an on
3premise consumption retailer, (ii) an off premise sale
4retailer, or (iii) a combined on premise consumption and off
5premise sale retailer.
6    Notwithstanding any other provision of this subsection
7(d), a retail licensee may sell alcoholic liquors to a special
8event retailer licensee for resale to the extent permitted
9under subsection (e).
10    (e) A special event retailer's license (not-for-profit)
11shall permit the licensee to purchase alcoholic liquors from an
12Illinois licensed distributor (unless the licensee purchases
13less than $500 of alcoholic liquors for the special event, in
14which case the licensee may purchase the alcoholic liquors from
15a licensed retailer) and shall allow the licensee to sell and
16offer for sale, at retail, alcoholic liquors for use or
17consumption, but not for resale in any form and only at the
18location and on the specific dates designated for the special
19event in the license. An applicant for a special event retailer
20license must (i) furnish with the application: (A) a resale
21number issued under Section 2c of the Retailers' Occupation Tax
22Act or evidence that the applicant is registered under Section
232a of the Retailers' Occupation Tax Act, (B) a current, valid
24exemption identification number issued under Section 1g of the
25Retailers' Occupation Tax Act, and a certification to the
26Commission that the purchase of alcoholic liquors will be a

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1liquors to any licensee within this State. A single airplane
2license shall be required of an airline company if liquor
3service is provided on board aircraft in this State. The annual
4fee for such license shall be as determined in Section 5-3.
5    (k) A foreign importer's license shall permit such licensee
6to purchase alcoholic liquor from Illinois licensed
7non-resident dealers only, and to import alcoholic liquor other
8than in bulk from any point outside the United States and to
9sell such alcoholic liquor to Illinois licensed importing
10distributors and to no one else in Illinois; provided that (i)
11the foreign importer registers with the State Commission every
12brand of alcoholic liquor that it proposes to sell to Illinois
13licensees during the license period, (ii) the foreign importer
14complies with all of the provisions of Section 6-9 of this Act
15with respect to registration of such Illinois licensees as may
16be granted the right to sell such brands at wholesale, and
17(iii) the foreign importer complies with the provisions of
18Sections 6-5 and 6-6 of this Act to the same extent that these
19provisions apply to manufacturers.
20    (l) (i) A broker's license shall be required of all persons
21who solicit orders for, offer to sell or offer to supply
22alcoholic liquor to retailers in the State of Illinois, or who
23offer to retailers to ship or cause to be shipped or to make
24contact with distillers, craft distillers, rectifiers, brewers
25or manufacturers or any other party within or without the State
26of Illinois in order that alcoholic liquors be shipped to a

 

 

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1distributor, importing distributor or foreign importer,
2whether such solicitation or offer is consummated within or
3without the State of Illinois.
4    No holder of a retailer's license issued by the Illinois
5Liquor Control Commission shall purchase or receive any
6alcoholic liquor, the order for which was solicited or offered
7for sale to such retailer by a broker unless the broker is the
8holder of a valid broker's license.
9    The broker shall, upon the acceptance by a retailer of the
10broker's solicitation of an order or offer to sell or supply or
11deliver or have delivered alcoholic liquors, promptly forward
12to the Illinois Liquor Control Commission a notification of
13said transaction in such form as the Commission may by
14regulations prescribe.
15    (ii) A broker's license shall be required of a person
16within this State, other than a retail licensee, who, for a fee
17or commission, promotes, solicits, or accepts orders for
18alcoholic liquor, for use or consumption and not for resale, to
19be shipped from this State and delivered to residents outside
20of this State by an express company, common carrier, or
21contract carrier. This Section does not apply to any person who
22promotes, solicits, or accepts orders for wine as specifically
23authorized in Section 6-29 of this Act.
24    A broker's license under this subsection (l) shall not
25entitle the holder to buy or sell any alcoholic liquors for his
26own account or to take or deliver title to such alcoholic

 

 

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1liquors.
2    This subsection (l) shall not apply to distributors,
3employees of distributors, or employees of a manufacturer who
4has registered the trademark, brand or name of the alcoholic
5liquor pursuant to Section 6-9 of this Act, and who regularly
6sells such alcoholic liquor in the State of Illinois only to
7its registrants thereunder.
8    Any agent, representative, or person subject to
9registration pursuant to subsection (a-1) of this Section shall
10not be eligible to receive a broker's license.
11    (m) A non-resident dealer's license shall permit such
12licensee to ship into and warehouse alcoholic liquor into this
13State from any point outside of this State, and to sell such
14alcoholic liquor to Illinois licensed foreign importers and
15importing distributors and to no one else in this State;
16provided that (i) said non-resident dealer shall register with
17the Illinois Liquor Control Commission each and every brand of
18alcoholic liquor which it proposes to sell to Illinois
19licensees during the license period, (ii) it shall comply with
20all of the provisions of Section 6-9 hereof with respect to
21registration of such Illinois licensees as may be granted the
22right to sell such brands at wholesale by duly filing such
23registration statement, thereby authorizing the non-resident
24dealer to proceed to sell such brands at wholesale, and (iii)
25the non-resident dealer shall comply with the provisions of
26Sections 6-5 and 6-6 of this Act to the same extent that these

 

 

10100HB1271ham001- 21 -LRB101 03465 RPS 64147 a

1provisions apply to manufacturers. No person licensed as a
2non-resident dealer shall be granted a distributor's or
3importing distributor's license.
4    (n) A brew pub license shall allow the licensee to only (i)
5manufacture up to 155,000 gallons of beer per year only on the
6premises specified in the license, (ii) make sales of the beer
7manufactured on the premises or, with the approval of the
8Commission, beer manufactured on another brew pub licensed
9premises that is wholly owned and operated by the same licensee
10to importing distributors, distributors, and to non-licensees
11for use and consumption, (iii) store the beer upon the
12premises, (iv) sell and offer for sale at retail from the
13licensed premises for off-premises consumption no more than
14155,000 gallons per year so long as such sales are only made
15in-person, (v) sell and offer for sale at retail for use and
16consumption on the premises specified in the license any form
17of alcoholic liquor purchased from a licensed distributor or
18importing distributor, (vi) with the prior approval of the
19Commission, annually transfer no more than 155,000 gallons of
20beer manufactured on the premises to a licensed brew pub wholly
21owned and operated by the same licensee, and (vii)
22notwithstanding item (i) of this subsection, brew pubs wholly
23owned and operated by the same licensee may combine each
24location's production limit of 155,000 gallons of beer per year
25and allocate the aggregate total between the wholly owned,
26operated, and licensed locations.

 

 

10100HB1271ham001- 22 -LRB101 03465 RPS 64147 a

1    A brew pub licensee shall not under any circumstance sell
2or offer for sale beer manufactured by the brew pub licensee to
3retail licensees.
4    A person who holds a class 2 brewer license may
5simultaneously hold a brew pub license if the class 2 brewer
6(i) does not, under any circumstance, sell or offer for sale
7beer manufactured by the class 2 brewer to retail licensees;
8(ii) does not hold more than 3 brew pub licenses in this State;
9(iii) does not manufacture more than a combined 3,720,000
10gallons of beer per year, including the beer manufactured at
11the brew pub; and (iv) is not a member of or affiliated with,
12directly or indirectly, a manufacturer that produces more than
133,720,000 gallons of beer per year or any other alcoholic
14liquor.
15    Notwithstanding any other provision of this Act, a licensed
16brewer, class 2 brewer, or non-resident dealer who before July
171, 2015 manufactured less than 3,720,000 gallons of beer per
18year and held a brew pub license on or before July 1, 2015 may
19(i) continue to qualify for and hold that brew pub license for
20the licensed premises and (ii) manufacture more than 3,720,000
21gallons of beer per year and continue to qualify for and hold
22that brew pub license if that brewer, class 2 brewer, or
23non-resident dealer does not simultaneously hold a class 1
24brewer license and is not a member of or affiliated with,
25directly or indirectly, a manufacturer that produces more than
263,720,000 gallons of beer per year or that produces any other

 

 

10100HB1271ham001- 23 -LRB101 03465 RPS 64147 a

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

 

 

10100HB1271ham001- 24 -LRB101 03465 RPS 64147 a

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

 

 

10100HB1271ham001- 25 -LRB101 03465 RPS 64147 a

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

 

 

10100HB1271ham001- 26 -LRB101 03465 RPS 64147 a

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

 

 

10100HB1271ham001- 27 -LRB101 03465 RPS 64147 a

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

 

 

10100HB1271ham001- 28 -LRB101 03465 RPS 64147 a

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

 

 

10100HB1271ham001- 29 -LRB101 03465 RPS 64147 a

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

 

 

10100HB1271ham001- 30 -LRB101 03465 RPS 64147 a

1in this State. For the purposes of Section 8-1, a winery
2shipper licensee shall be taxed in the same manner as a
3manufacturer of wine. A licensee who is not otherwise required
4to register under the Retailers' Occupation Tax Act must
5register under the Use Tax Act to collect and remit use tax to
6the Department of Revenue for all gallons of wine that are sold
7by the licensee and shipped to persons in this State. If a
8licensee fails to remit the tax imposed under this Act in
9accordance with the provisions of Article VIII of this Act, the
10winery shipper's license shall be revoked in accordance with
11the provisions of Article VII of this Act. If a licensee fails
12to properly register and remit tax under the Use Tax Act or the
13Retailers' Occupation Tax Act for all wine that is sold by the
14winery shipper and shipped to persons in this State, the winery
15shipper's license shall be revoked in accordance with the
16provisions of Article VII of this Act.
17    A winery shipper licensee must collect, maintain, and
18submit to the Commission on a semi-annual basis the total
19number of cases per resident of wine shipped to residents of
20this State. A winery shipper licensed under this subsection (r)
21must comply with the requirements of Section 6-29 of this Act.
22    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
23Section 3-12, the State Commission may receive, respond to, and
24investigate any complaint and impose any of the remedies
25specified in paragraph (1) of subsection (a) of Section 3-12.
26    As used in this subsection, "third-party provider" means

 

 

10100HB1271ham001- 31 -LRB101 03465 RPS 64147 a

1any entity that provides fulfillment house services, including
2warehousing, packaging, distribution, order processing, or
3shipment of wine, but not the sale of wine, on behalf of a
4licensed winery shipper.
5    (s) A craft distiller tasting permit license shall allow an
6Illinois licensed class 1 craft distiller or class 2 craft
7distiller to transfer a portion of its alcoholic liquor
8inventory from its class 1 craft distiller or class 2 craft
9distiller licensed premises to the premises specified in the
10license hereby created and to conduct a sampling, only in the
11premises specified in the license hereby created, of the
12transferred alcoholic liquor in accordance with subsection (c)
13of Section 6-31 of this Act. The transferred alcoholic liquor
14may not be sold or resold in any form. An applicant for the
15craft distiller tasting permit license must also submit with
16the application proof satisfactory to the State Commission that
17the applicant will provide dram shop liability insurance to the
18maximum limits and have local authority approval.
19    (t) A brewer warehouse permit may be issued to the holder
20of a class 1 brewer license or a class 2 brewer license. If the
21holder of the permit is a class 1 brewer licensee, the brewer
22warehouse permit shall allow the holder to store or warehouse
23up to 930,000 gallons of tax-determined beer manufactured by
24the holder of the permit at the premises specified on the
25permit. If the holder of the permit is a class 2 brewer
26licensee, the brewer warehouse permit shall allow the holder to

 

 

10100HB1271ham001- 32 -LRB101 03465 RPS 64147 a

1store or warehouse up to 3,720,000 gallons of tax-determined
2beer manufactured by the holder of the permit at the premises
3specified on the permit. Sales to non-licensees are prohibited
4at the premises specified in the brewer warehouse permit.
5    (u) A distilling pub license shall allow the licensee to
6only (i) manufacture up to 5,000 gallons of spirits per year
7only on the premises specified in the license, (ii) make sales
8of the spirits manufactured on the premises or, with the
9approval of the State Commission, spirits manufactured on
10another distilling pub licensed premises that is wholly owned
11and operated by the same licensee to importing distributors and
12distributors and to non-licensees for use and consumption,
13(iii) store the spirits upon the premises, (iv) sell and offer
14for sale at retail from the licensed premises for off-premises
15consumption no more than 5,000 gallons per year so long as such
16sales are only made in-person, (v) sell and offer for sale at
17retail for use and consumption on the premises specified in the
18license any form of alcoholic liquor purchased from a licensed
19distributor or importing distributor, and (vi) with the prior
20approval of the State Commission, annually transfer no more
21than 5,000 gallons of spirits manufactured on the premises to a
22licensed distilling pub wholly owned and operated by the same
23licensee.
24    A distilling pub licensee shall not under any circumstance
25sell or offer for sale spirits manufactured by the distilling
26pub licensee to retail licensees.

 

 

10100HB1271ham001- 33 -LRB101 03465 RPS 64147 a

1    A person who holds a class 2 craft distiller license may
2simultaneously hold a distilling pub license if the class 2
3craft distiller (i) does not, under any circumstance, sell or
4offer for sale spirits manufactured by the class 2 craft
5distiller to retail licensees; (ii) does not hold more than 3
6distilling pub licenses in this State; (iii) does not
7manufacture more than a combined 100,000 gallons of spirits per
8year, including the spirits manufactured at the distilling pub;
9and (iv) is not a member of or affiliated with, directly or
10indirectly, a manufacturer that produces more than 100,000
11gallons of spirits per year or any other alcoholic liquor.
12    (v) A craft distiller warehouse permit may be issued to the
13holder of a class 1 craft distiller or class 2 craft distiller
14license. The craft distiller warehouse permit shall allow the
15holder to store or warehouse up to 500,000 gallons of spirits
16manufactured by the holder of the permit at the premises
17specified on the permit. Sales to non-licensees are prohibited
18at the premises specified in the craft distiller warehouse
19permit.
20(Source: P.A. 100-17, eff. 6-30-17; 100-201, eff. 8-18-17;
21100-816, eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff.
228-23-18; 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; 101-81,
23eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. 8-23-19;
24revised 9-19-19.)
 
25    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)

 

 

10100HB1271ham001- 34 -LRB101 03465 RPS 64147 a

1    Sec. 5-3. License fees. Except as otherwise provided
2herein, at the time application is made to the State Commission
3for a license of any class, the applicant shall pay to the
4State Commission the fee hereinafter provided for the kind of
5license applied for.
6    The fee for licenses issued by the State Commission shall
7be as follows:
8OnlineInitial
9renewallicense
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 ...................750900
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 9. Class 1 Craft Distiller.. 50 75

 

 

10100HB1271ham001- 35 -LRB101 03465 RPS 64147 a

1    Class 11 10. Class 2 Craft Distiller. 75 100
2    Class 12 11. Class 1 Brewer..........50 75
3    Class 13 12. Class 2 Brewer.......... 75 100
4    For a Brew Pub License..............1,2001,500
5    For a Distilling Pub License........ 1,200 1,500
6    For a caterer retailer's license....350 500
7    For a foreign importer's license ...25 25
8    For an importing distributor's
9        license.........................2525
10    For a distributor's license
11        (11,250,000 gallons
12        or over)........................1,4502,200
13    For a distributor's license
14        (over 4,500,000 gallons, but
15        under 11,250,000 gallons)....... 9501,450
16    For a distributor's license
17        (4,500,000 gallons or under)....300450
18    For a non-resident dealer's license
19        (500,000 gallons or over) ......1,200 1,500
20    For a non-resident dealer's license
21        (under 500,000 gallons) ........250 350
22    For a wine-maker's premises
23        license ........................250500
24    For a winery shipper's license
25        (under 250,000 gallons).........200 350
26    For a winery shipper's license

 

 

10100HB1271ham001- 36 -LRB101 03465 RPS 64147 a

1        (250,000 or over, but
2        under 500,000 gallons)..........7501,000
3    For a winery shipper's license
4        (500,000 gallons or over).......1,200 1,500
5    For a wine-maker's premises license,
6        second location ................500 1,000
7    For a wine-maker's premises license,
8        third location .................5001,000
9    For a retailer's license ...........600 750
10    For a special event retailer's
11        license, (not-for-profit) ......25 25
12    For a special use permit license,
13        one day only ...................100 150
14        2 days or more .................150 250
15    For a railroad license .............100 150
16    For a boat license .................500 1,000
17    For an airplane license, times the
18        licensee's maximum number of
19        aircraft in flight, serving
20        liquor over the State at any
21        given time, which either
22        originate, terminate, or make
23        an intermediate stop in
24        the State.......................100150
25    For a non-beverage user's license:
26        Class 1 ........................2424

 

 

10100HB1271ham001- 37 -LRB101 03465 RPS 64147 a

1        Class 2 ........................6060
2        Class 3 ........................120120
3        Class 4 ........................240240
4        Class 5 ........................600600
5    For a broker's license .............750 1,000
6    For an auction liquor license ......100 150
7    For a homebrewer special
8        event permit....................2525
9    For a craft distiller
10        tasting permit..................25 25
11    For a BASSET trainer license........ 300 350
12    For a tasting representative
13        license.........................200300
14    For a brewer warehouse permit....... 2525
15    For a craft distiller
16        warehouse permit...............25 25
17    Fees collected under this Section shall be paid into the
18Dram Shop Fund. On and after July 1, 2003 and until June 30,
192016, of the funds received for a retailer's license, in
20addition to the first $175, an additional $75 shall be paid
21into the Dram Shop Fund, and $250 shall be paid into the
22General Revenue Fund. On and after June 30, 2016, one-half of
23the funds received for a retailer's license shall be paid into
24the Dram Shop Fund and one-half of the funds received for a
25retailer's license shall be paid into the General Revenue Fund.
26Beginning June 30, 1990 and on June 30 of each subsequent year

 

 

10100HB1271ham001- 38 -LRB101 03465 RPS 64147 a

1through June 29, 2003, any balance over $5,000,000 remaining in
2the Dram Shop Fund shall be credited to State liquor licensees
3and applied against their fees for State liquor licenses for
4the following year. The amount credited to each licensee shall
5be a proportion of the balance in the Dram Fund that is the
6same as the proportion of the license fee paid by the licensee
7under this Section for the period in which the balance was
8accumulated to the aggregate fees paid by all licensees during
9that period.
10    No fee shall be paid for licenses issued by the State
11Commission to the following non-beverage users:
12        (a) Hospitals, sanitariums, or clinics when their use
13    of alcoholic liquor is exclusively medicinal, mechanical
14    or scientific.
15        (b) Universities, colleges of learning or schools when
16    their use of alcoholic liquor is exclusively medicinal,
17    mechanical or scientific.
18        (c) Laboratories when their use is exclusively for the
19    purpose of scientific research.
20(Source: P.A. 100-201, eff. 8-18-17; 100-816, eff. 8-13-18;
21101-482, eff. 8-23-19.)
 
22    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
23    Sec. 6-4. (a) No person licensed by any licensing authority
24as a distiller, or a wine manufacturer, or any subsidiary or
25affiliate thereof, or any officer, associate, member, partner,

 

 

10100HB1271ham001- 39 -LRB101 03465 RPS 64147 a

1representative, employee, agent or shareholder owning more
2than 5% of the outstanding shares of such person shall be
3issued an importing distributor's or distributor's license,
4nor shall any person licensed by any licensing authority as an
5importing distributor, distributor or retailer, or any
6subsidiary or affiliate thereof, or any officer or associate,
7member, partner, representative, employee, agent or
8shareholder owning more than 5% of the outstanding shares of
9such person be issued a distiller's license, a craft
10distiller's license, or a wine manufacturer's license; and no
11person or persons licensed as a distiller, craft distiller,
12class 1 craft distiller, or class 2 craft distiller by any
13licensing authority shall have any interest, directly or
14indirectly, with such distributor or importing distributor.
15    However, an importing distributor or distributor, which on
16January 1, 1985 is owned by a brewer, or any subsidiary or
17affiliate thereof or any officer, associate, member, partner,
18representative, employee, agent or shareholder owning more
19than 5% of the outstanding shares of the importing distributor
20or distributor referred to in this paragraph, may own or
21acquire an ownership interest of more than 5% of the
22outstanding shares of a wine manufacturer and be issued a wine
23manufacturer's license by any licensing authority.
24    (b) The foregoing provisions shall not apply to any person
25licensed by any licensing authority as a distiller or wine
26manufacturer, or to any subsidiary or affiliate of any

 

 

10100HB1271ham001- 40 -LRB101 03465 RPS 64147 a

1distiller or wine manufacturer who shall have been heretofore
2licensed by the State Commission as either an importing
3distributor or distributor during the annual licensing period
4expiring June 30, 1947, and shall actually have made sales
5regularly to retailers.
6    (c) Provided, however, that in such instances where a
7distributor's or importing distributor's license has been
8issued to any distiller or wine manufacturer or to any
9subsidiary or affiliate of any distiller or wine manufacturer
10who has, during the licensing period ending June 30, 1947, sold
11or distributed as such licensed distributor or importing
12distributor alcoholic liquors and wines to retailers, such
13distiller or wine manufacturer or any subsidiary or affiliate
14of any distiller or wine manufacturer holding such
15distributor's or importing distributor's license may continue
16to sell or distribute to retailers such alcoholic liquors and
17wines which are manufactured, distilled, processed or marketed
18by distillers and wine manufacturers whose products it sold or
19distributed to retailers during the whole or any part of its
20licensing periods; and such additional brands and additional
21products may be added to the line of such distributor or
22importing distributor, provided, that such brands and such
23products were not sold or distributed by any distributor or
24importing distributor licensed by the State Commission during
25the licensing period ending June 30, 1947, but can not sell or
26distribute to retailers any other alcoholic liquors or wines.

 

 

10100HB1271ham001- 41 -LRB101 03465 RPS 64147 a

1    (d) It shall be unlawful for any distiller licensed
2anywhere to have any stock ownership or interest in any
3distributor's or importing distributor's license wherein any
4other person has an interest therein who is not a distiller and
5does not own more than 5% of any stock in any distillery.
6Nothing herein contained shall apply to such distillers or
7their subsidiaries or affiliates, who had a distributor's or
8importing distributor's license during the licensing period
9ending June 30, 1947, which license was owned in whole by such
10distiller, or subsidiaries or affiliates of such distiller.
11    (e) Any person licensed as a brewer, class 1 brewer, or
12class 2 brewer shall be permitted to sell on the licensed
13premises to non-licensees for on or off-premises consumption
14for the premises in which he or she actually conducts such
15business: (i) beer manufactured by the brewer, class 1 brewer,
16or class 2 brewer; (ii) beer manufactured by any other brewer,
17class 1 brewer, or class 2 brewer; and (iii) cider. Such sales
18shall be limited to on-premises, in-person sales only, for
19lawful consumption on or off premises. Such authorization shall
20be considered a privilege granted by the brewer license and,
21other than a manufacturer of beer as stated above, no
22manufacturer or distributor or importing distributor,
23excluding airplane licensees exercising powers provided in
24paragraph (i) of Section 5-1 of this Act, or any subsidiary or
25affiliate thereof, or any officer, associate, member, partner,
26representative, employee or agent, or shareholder shall be

 

 

10100HB1271ham001- 42 -LRB101 03465 RPS 64147 a

1issued a retailer's license, nor shall any person having a
2retailer's license, excluding airplane licensees exercising
3powers provided in paragraph (i) of Section 5-1 of this Act, or
4any subsidiary or affiliate thereof, or any officer, associate,
5member, partner, representative or agent, or shareholder be
6issued a manufacturer's license or importing distributor's
7license.
8    A manufacturer of beer that imports or transfers beer into
9this State must comply with Sections 6-8 and 8-1 of this Act.
10    A person who holds a class 1 or class 2 brewer license and
11is authorized by this Section to sell beer to non-licensees
12shall not sell beer to non-licensees from more than 3 total
13brewer or commonly owned brew pub licensed locations in this
14State. The class 1 or class 2 brewer shall designate to the
15State Commission the brewer or brew pub locations from which it
16will sell beer to non-licensees.
17    A person licensed as a class 1 craft distiller or a class 2
18craft distiller, including a person who holds more than one
19class 1 craft distiller or class 2 craft distiller license, not
20affiliated with any other person manufacturing spirits may be
21authorized by the State Commission to sell (1) up to 5,000
22gallons of spirits produced by the person to non-licensees for
23on or off-premises consumption for the premises in which he or
24she actually conducts business permitting only the retail sale
25of spirits manufactured at such premises and (2) vermouth
26purchased through a licensed distributor for on-premises

 

 

10100HB1271ham001- 43 -LRB101 03465 RPS 64147 a

1consumption. Such sales shall be limited to on-premises,
2in-person sales only, for lawful consumption on or off
3premises, and such authorization shall be considered a
4privilege granted by the class 1 craft distiller or class 2
5craft distiller license. A class 1 craft distiller or class 2
6craft distiller licensed for retail sale shall secure liquor
7liability insurance coverage in an amount at least equal to the
8maximum liability amounts set forth in subsection (a) of
9Section 6-21 of this Act.
10    A class 1 craft distiller or class 2 craft distiller
11license holder shall not deliver any alcoholic liquor to any
12non-licensee off the licensed premises. A class 1 craft
13distiller or class 2 craft distiller shall affirm in its annual
14license application that it does not produce more than 50,000
15or 100,000 gallons of distilled spirits annually, whichever is
16applicable, and that the craft distiller does not sell more
17than 5,000 gallons of spirits to non-licensees for on or
18off-premises consumption. In the application, which shall be
19sworn under penalty of perjury, the class 1 craft distiller or
20class 2 craft distiller shall state the volume of production
21and sales for each year since the class 1 craft distiller's or
22class 2 craft distiller's establishment.
23    A person who holds a class 1 craft distiller or class 2
24craft distiller license and is authorized by this Section to
25sell spirits to non-licensees shall not sell spirits to
26non-licensees from more than 3 total distillery or commonly

 

 

10100HB1271ham001- 44 -LRB101 03465 RPS 64147 a

1owned distilling pub licensed locations in this State. The
2class 1 craft distiller or class 2 craft distiller shall
3designate to the State Commission the distillery or distilling
4pub locations from which it will sell spirits to non-licensees.
5    (f) (Blank).
6    (g) Notwithstanding any of the foregoing prohibitions, a
7limited wine manufacturer may sell at retail at its
8manufacturing site for on or off premises consumption and may
9sell to distributors. A limited wine manufacturer licensee
10shall secure liquor liability insurance coverage in an amount
11at least equal to the maximum liability amounts set forth in
12subsection (a) of Section 6-21 of this Act.
13    (h) The changes made to this Section by Public Act 99-47
14shall not diminish or impair the rights of any person, whether
15a distiller, wine manufacturer, agent, or affiliate thereof,
16who requested in writing and submitted documentation to the
17State Commission on or before February 18, 2015 to be approved
18for a retail license pursuant to what has heretofore been
19subsection (f); provided that, on or before that date, the
20State Commission considered the intent of that person to apply
21for the retail license under that subsection and, by recorded
22vote, the State Commission approved a resolution indicating
23that such a license application could be lawfully approved upon
24that person duly filing a formal application for a retail
25license and if that person, within 90 days of the State
26Commission appearance and recorded vote, first filed an

 

 

10100HB1271ham001- 45 -LRB101 03465 RPS 64147 a

1application with the appropriate local commission, which
2application was subsequently approved by the appropriate local
3commission prior to consideration by the State Commission of
4that person's application for a retail license. It is further
5provided that the State Commission may approve the person's
6application for a retail license or renewals of such license if
7such person continues to diligently adhere to all
8representations made in writing to the State Commission on or
9before February 18, 2015, or thereafter, or in the affidavit
10filed by that person with the State Commission to support the
11issuance of a retail license and to abide by all applicable
12laws and duly adopted rules.
13(Source: P.A. 100-201, eff. 8-18-17; 100-816, eff. 8-13-18;
14100-885, eff. 8-14-18; 101-81, eff. 7-12-19; 101-482, eff.
158-23-19.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.".