SB0054 EnrolledLRB101 04781 RPS 49790 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Section 5-1 as follows:
 
6    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
7    Sec. 5-1. Licenses issued by the Illinois Liquor Control
8Commission shall be of the following classes:
9    (a) Manufacturer's license - Class 1. Distiller, Class 2.
10Rectifier, Class 3. Brewer, Class 4. First Class Wine
11Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
12First Class Winemaker, Class 7. Second Class Winemaker, Class
138. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1410. Class 1 Craft Distiller, Class 11. Class 2 Craft Distiller,
15Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
16    (b) Distributor's license,
17    (c) Importing Distributor's license,
18    (d) Retailer's license,
19    (e) Special Event Retailer's license (not-for-profit),
20    (f) Railroad license,
21    (g) Boat license,
22    (h) Non-Beverage User's license,
23    (i) Wine-maker's premises license,

 

 

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

 

 

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

 

 

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1per year, and the storage and sale of such wine to distributors
2in this State and to persons without the State, as may be
3permitted by law. A person who, prior to June 1, 2008 (the
4effective date of Public Act 95-634), is a holder of a
5second-class wine-maker's license and annually produces more
6than 25,000 gallons of its own wine and who distributes its
7wine to licensed retailers shall cease this practice on or
8before July 1, 2008 in compliance with Public Act 95-634.
9    Class 8. A limited wine-manufacturer may make sales and
10deliveries not to exceed 40,000 gallons of wine per year to
11distributors, and to non-licensees in accordance with the
12provisions of this Act.
13    Class 9. A craft distiller license, which may only be held
14by a class 1 craft distiller licensee or class 2 craft
15distiller licensee but not held by both a class 1 craft
16distiller licensee and a class 2 craft distiller licensee,
17shall grant all rights conveyed by either: (i) a class 1 craft
18distiller license if the craft distiller holds a class 1 craft
19distiller license; or (ii) a class 2 craft distiller licensee
20if the craft distiller holds a class 2 craft distiller license.
21    Class 10. A class 1 craft distiller license, which may only
22be issued to a licensed craft distiller or licensed
23non-resident dealer, shall allow the manufacture of up to
2450,000 gallons of spirits per year provided that the class 1
25craft distiller licensee does not manufacture more than a
26combined 50,000 gallons of spirits per year and is not a member

 

 

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1of or affiliated with, directly or indirectly, a manufacturer
2that produces more than 50,000 gallons of spirits per year or
3any other alcoholic liquor. A class 1 craft distiller licensee
4may make sales and deliveries to importing distributors and
5distributors and to retail licensees in accordance with the
6conditions set forth in paragraph (19) of subsection (a) of
7Section 3-12 of this Act. However, the aggregate amount of
8spirits sold to non-licensees and sold or delivered to retail
9licensees may not exceed 5,000 gallons per year.
10    A class 1 craft distiller licensee may sell up to 5,000
11gallons of such spirits to non-licensees to the extent
12permitted by any exemption approved by the State Commission
13pursuant to Section 6-4 of this Act. A class 1 craft distiller
14license holder may store such spirits at a non-contiguous
15licensed location, but at no time shall a class 1 craft
16distiller license holder directly or indirectly produce in the
17aggregate more than 50,000 gallons of spirits per year.
18    A class 1 craft distiller licensee may hold more than one
19class 1 craft distiller's license. However, a class 1 craft
20distiller that holds more than one class 1 craft distiller
21license shall not manufacture, in the aggregate, more than
2250,000 gallons of spirits by distillation per year and shall
23not sell, in the aggregate, more than 5,000 gallons of such
24spirits to non-licensees in accordance with an exemption
25approved by the State Commission pursuant to Section 6-4 of
26this Act.

 

 

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1    Class 11. A class 2 craft distiller license, which may only
2be issued to a licensed craft distiller or licensed
3non-resident dealer, shall allow the manufacture of up to
4100,000 gallons of spirits per year provided that the class 2
5craft distiller licensee does not manufacture more than a
6combined 100,000 gallons of spirits per year and is not a
7member of or affiliated with, directly or indirectly, a
8manufacturer that produces more than 100,000 gallons of spirits
9per year or any other alcoholic liquor. A class 2 craft
10distiller licensee may make sales and deliveries to importing
11distributors and distributors, but shall not make sales or
12deliveries to any other licensee. If the State Commission
13provides prior approval, a class 2 craft distiller licensee may
14annually transfer up to 100,000 gallons of spirits manufactured
15by that class 2 craft distiller licensee to the premises of a
16licensed class 2 craft distiller wholly owned and operated by
17the same licensee. A class 2 craft distiller may transfer
18spirits to a distilling pub wholly owned and operated by the
19class 2 craft distiller subject to the following limitations
20and restrictions: (i) the transfer shall not annually exceed
21more than 5,000 gallons; (ii) the annual amount transferred
22shall reduce the distilling pub's annual permitted production
23limit; (iii) all spirits transferred shall be subject to
24Article VIII of this Act; (iv) a written record shall be
25maintained by the distiller and distilling pub specifying the
26amount, date of delivery, and receipt of the product by the

 

 

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1distilling pub; and (v) the distilling pub shall be located no
2farther than 80 miles from the class 2 craft distiller's
3licensed location.
4    A class 2 craft distiller shall, prior to transferring
5spirits to a distilling pub wholly owned by the class 2 craft
6distiller, furnish a written notice to the State Commission of
7intent to transfer spirits setting forth the name and address
8of the distilling pub and shall annually submit to the State
9Commission a verified report identifying the total gallons of
10spirits transferred to the distilling pub wholly owned by the
11class 2 craft distiller.
12    A class 2 craft distiller license holder may store such
13spirits at a non-contiguous licensed location, but at no time
14shall a class 2 craft distiller license holder directly or
15indirectly produce in the aggregate more than 100,000 gallons
16of spirits per year.
17    Class 12. A class 1 brewer license, which may only be
18issued to a licensed brewer or licensed non-resident dealer,
19shall allow the manufacture of up to 930,000 gallons of beer
20per year provided that the class 1 brewer licensee does not
21manufacture more than a combined 930,000 gallons of beer per
22year and is not a member of or affiliated with, directly or
23indirectly, a manufacturer that produces more than 930,000
24gallons of beer per year or any other alcoholic liquor. A class
251 brewer licensee may make sales and deliveries to importing
26distributors and distributors and to retail licensees in

 

 

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

 

 

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

 

 

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

 

 

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1filing of an application by a duly licensed distributor, with
2the Commission and the Commission shall, without the payment of
3any fee, immediately issue such importing distributor's
4license to the applicant, which shall allow the importation of
5alcoholic liquor by the licensee into this State from any point
6in the United States outside this State, and the purchase of
7alcoholic liquor in barrels, casks or other bulk containers and
8the bottling of such alcoholic liquors before resale thereof,
9but all bottles or containers so filled shall be sealed,
10labeled, stamped and otherwise made to comply with all
11provisions, rules and regulations governing manufacturers in
12the preparation and bottling of alcoholic liquors. The
13importing distributor's license shall permit such licensee to
14purchase alcoholic liquor from Illinois licensed non-resident
15dealers and foreign importers only. No person licensed as an
16importing distributor shall be granted a non-resident dealer's
17license.
18    (d) A retailer's license shall allow the licensee to sell
19and offer for sale at retail, only in the premises specified in
20the license, alcoholic liquor for use or consumption, but not
21for resale in any form. Except as provided in Section 6-16,
226-29, or 6-29.1, nothing in this Act Nothing in Public Act
2395-634 shall deny, limit, remove, or restrict the ability of a
24holder of a retailer's license to transfer, deliver, or ship
25alcoholic liquor to the purchaser for use or consumption
26subject to any applicable local law or ordinance. For the

 

 

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1purposes of this Section, "shipping" means the movement of
2alcoholic liquor from a licensed retailer to a consumer via a
3common carrier. Except as provided in Section 6-16, 6-29, or
46-29.1, nothing in this Act shall deny, limit, remove, or
5restrict the ability of a holder of a retailer's license to
6deliver alcoholic liquor to the purchaser for use or
7consumption. The delivery shall be made only within 12 hours
8from the time the alcoholic liquor leaves the licensed premises
9of the retailer for delivery. For the purposes of this Section,
10"delivery" means the movement of alcoholic liquor purchased
11from a licensed retailer to a consumer through the following
12methods:
13        (1) delivery within licensed retailer's parking lot,
14    including curbside, for pickup by the consumer;
15        (2) delivery by an owner, officer, director,
16    shareholder, or employee of the licensed retailer; or
17        (3) delivery by a third-party contractor, independent
18    contractor, or agent with whom the licensed retailer has
19    contracted to make deliveries of alcoholic liquors.
20    Under subsection (1), (2), or (3), delivery shall not
21include the use of common carriers.
22    Any retail license issued to a manufacturer shall only
23permit the manufacturer to sell beer at retail on the premises
24actually occupied by the manufacturer. For the purpose of
25further describing the type of business conducted at a retail
26licensed premises, a retailer's licensee may be designated by

 

 

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1the State Commission as (i) an on premise consumption retailer,
2(ii) an off premise sale retailer, or (iii) a combined on
3premise consumption and off premise sale retailer.
4    Except for a municipality with a population of more than
51,000,000 inhabitants, a home rule unit may not regulate the
6delivery of alcoholic liquor inconsistent with this
7subsection. This paragraph is a limitation under subsection (i)
8of Section 6 of Article VII of the Illinois Constitution on the
9concurrent exercise by home rule units of powers and functions
10exercised by the State.
11    Notwithstanding any other provision of this subsection
12(d), a retail licensee may sell alcoholic liquors to a special
13event retailer licensee for resale to the extent permitted
14under subsection (e).
15    (e) A special event retailer's license (not-for-profit)
16shall permit the licensee to purchase alcoholic liquors from an
17Illinois licensed distributor (unless the licensee purchases
18less than $500 of alcoholic liquors for the special event, in
19which case the licensee may purchase the alcoholic liquors from
20a licensed retailer) and shall allow the licensee to sell and
21offer for sale, at retail, alcoholic liquors for use or
22consumption, but not for resale in any form and only at the
23location and on the specific dates designated for the special
24event in the license. An applicant for a special event retailer
25license must (i) furnish with the application: (A) a resale
26number issued under Section 2c of the Retailers' Occupation Tax

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB0054 Enrolled- 21 -LRB101 04781 RPS 49790 b

1right to sell such brands at wholesale by duly filing such
2registration statement, thereby authorizing the non-resident
3dealer to proceed to sell such brands at wholesale, and (iii)
4the non-resident dealer shall comply with the provisions of
5Sections 6-5 and 6-6 of this Act to the same extent that these
6provisions apply to manufacturers. No person licensed as a
7non-resident dealer shall be granted a distributor's or
8importing distributor's license.
9    (n) A brew pub license shall allow the licensee to only (i)
10manufacture up to 155,000 gallons of beer per year only on the
11premises specified in the license, (ii) make sales of the beer
12manufactured on the premises or, with the approval of the
13Commission, beer manufactured on another brew pub licensed
14premises that is wholly owned and operated by the same licensee
15to importing distributors, distributors, and to non-licensees
16for use and consumption, (iii) store the beer upon the
17premises, (iv) sell and offer for sale at retail from the
18licensed premises for off-premises consumption no more than
19155,000 gallons per year so long as such sales are only made
20in-person, (v) sell and offer for sale at retail for use and
21consumption on the premises specified in the license any form
22of alcoholic liquor purchased from a licensed distributor or
23importing distributor, (vi) with the prior approval of the
24Commission, annually transfer no more than 155,000 gallons of
25beer manufactured on the premises to a licensed brew pub wholly
26owned and operated by the same licensee, and (vii)

 

 

SB0054 Enrolled- 22 -LRB101 04781 RPS 49790 b

1notwithstanding item (i) of this subsection, brew pubs wholly
2owned and operated by the same licensee may combine each
3location's production limit of 155,000 gallons of beer per year
4and allocate the aggregate total between the wholly owned,
5operated, and licensed locations.
6    A brew pub licensee shall not under any circumstance sell
7or offer for sale beer manufactured by the brew pub licensee to
8retail licensees.
9    A person who holds a class 2 brewer license may
10simultaneously hold a brew pub license if the class 2 brewer
11(i) does not, under any circumstance, sell or offer for sale
12beer manufactured by the class 2 brewer to retail licensees;
13(ii) does not hold more than 3 brew pub licenses in this State;
14(iii) does not manufacture more than a combined 3,720,000
15gallons of beer per year, including the beer manufactured at
16the brew pub; and (iv) is not a member of or affiliated with,
17directly or indirectly, a manufacturer that produces more than
183,720,000 gallons of beer per year or any other alcoholic
19liquor.
20    Notwithstanding any other provision of this Act, a licensed
21brewer, class 2 brewer, or non-resident dealer who before July
221, 2015 manufactured less than 3,720,000 gallons of beer per
23year and held a brew pub license on or before July 1, 2015 may
24(i) continue to qualify for and hold that brew pub license for
25the licensed premises and (ii) manufacture more than 3,720,000
26gallons of beer per year and continue to qualify for and hold

 

 

SB0054 Enrolled- 23 -LRB101 04781 RPS 49790 b

1that brew pub license if that brewer, class 2 brewer, or
2non-resident dealer does not simultaneously hold a class 1
3brewer license and is not a member of or affiliated with,
4directly or indirectly, a manufacturer that produces more than
53,720,000 gallons of beer per year or that produces any other
6alcoholic liquor.
7    (o) A caterer retailer license shall allow the holder to
8serve alcoholic liquors as an incidental part of a food service
9that serves prepared meals which excludes the serving of snacks
10as the primary meal, either on or off-site whether licensed or
11unlicensed. A caterer retailer license shall allow the holder,
12a distributor, or an importing distributor to transfer any
13inventory to and from the holder's retail premises and shall
14allow the holder to purchase alcoholic liquor from a
15distributor or importing distributor to be delivered directly
16to an off-site event.
17    Nothing in this Act prohibits a distributor or importing
18distributor from offering credit or a refund for unused,
19salable beer to a holder of a caterer retailer license or a
20caterer retailer licensee from accepting a credit or refund for
21unused, salable beer, in the event an act of God is the sole
22reason an off-site event is cancelled and if: (i) the holder of
23a caterer retailer license has not transferred alcoholic liquor
24from its caterer retailer premises to an off-site location;
25(ii) the distributor or importing distributor offers the credit
26or refund for the unused, salable beer that it delivered to the

 

 

SB0054 Enrolled- 24 -LRB101 04781 RPS 49790 b

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

 

 

SB0054 Enrolled- 25 -LRB101 04781 RPS 49790 b

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

 

 

SB0054 Enrolled- 26 -LRB101 04781 RPS 49790 b

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

 

 

SB0054 Enrolled- 27 -LRB101 04781 RPS 49790 b

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

 

 

SB0054 Enrolled- 28 -LRB101 04781 RPS 49790 b

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

 

 

SB0054 Enrolled- 29 -LRB101 04781 RPS 49790 b

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

 

 

SB0054 Enrolled- 30 -LRB101 04781 RPS 49790 b

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

 

 

SB0054 Enrolled- 31 -LRB101 04781 RPS 49790 b

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

 

 

SB0054 Enrolled- 32 -LRB101 04781 RPS 49790 b

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

 

 

SB0054 Enrolled- 33 -LRB101 04781 RPS 49790 b

1licensed distilling pub wholly owned and operated by the same
2licensee.
3    A distilling pub licensee shall not under any circumstance
4sell or offer for sale spirits manufactured by the distilling
5pub licensee to retail licensees.
6    A person who holds a class 2 craft distiller license may
7simultaneously hold a distilling pub license if the class 2
8craft distiller (i) does not, under any circumstance, sell or
9offer for sale spirits manufactured by the class 2 craft
10distiller to retail licensees; (ii) does not hold more than 3
11distilling pub licenses in this State; (iii) does not
12manufacture more than a combined 100,000 gallons of spirits per
13year, including the spirits manufactured at the distilling pub;
14and (iv) is not a member of or affiliated with, directly or
15indirectly, a manufacturer that produces more than 100,000
16gallons of spirits per year or any other alcoholic liquor.
17    (v) A craft distiller warehouse permit may be issued to the
18holder of a class 1 craft distiller or class 2 craft distiller
19license. The craft distiller warehouse permit shall allow the
20holder to store or warehouse up to 500,000 gallons of spirits
21manufactured by the holder of the permit at the premises
22specified on the permit. Sales to non-licensees are prohibited
23at the premises specified in the craft distiller warehouse
24permit.
25(Source: P.A. 100-17, eff. 6-30-17; 100-201, eff. 8-18-17;
26100-816, eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff.

 

 

SB0054 Enrolled- 34 -LRB101 04781 RPS 49790 b

18-23-18; 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; 101-81,
2eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. 8-23-19;
3101-615, eff. 12-20-19.)