101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1831

 

Introduced 2/15/2019, by Sen. Antonio Muņoz

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/1-3.04  from Ch. 43, par. 95.04
235 ILCS 5/5-1  from Ch. 43, par. 115
235 ILCS 5/6-6  from Ch. 43, par. 123
235 ILCS 5/6-6.5
235 ILCS 5/6-6.6 new

    Amends the Liquor Control Act of 1934. Provides that the definition of "beer" includes beverages brewed or fermented wholly or in part from malt products. Provides that a caterer retailer license shall allow the holder, a distributor, or an importing distributor to transfer any inventory to and from the holder's retail premises and to purchase alcoholic liquor from a distributor or importing distributor to be delivered directly to an off-site event. Provides that a special use permit license shall allow the holder to purchase alcoholic liquor from a distributor or importing distributor to be delivered directly to the location specified in the special use permit license. Provides that a special use permit license shall allow the holder, a distributor, or an importing distributor to transfer any inventory from the premises specified in the special use permit license to its retail premises. Provides that, if certain conditions are met, nothing in the Act prohibits a distributor or importing distributor from offering a credit or a refund for unused, salable beer to a special use permit licensee or a caterer retailer or a special use permit licensee or caterer retailer from accepting the credit or refund. In a provision that allows a manufacturer, distributor, or importing distributor to provide permanent outdoor signs to retailers if certain conditions are met, provides that the permanent outside sign shall cost not more than $3,000 per brand (instead of per manufacturer). Contains provisions concerning the servicing of certain systems by a manufacturer, distributor, or importing distributor. Prohibits a distributor or importing distributor from selling or giving coil cleaning services to certain licensees. Authorizes a manufacturer, distributor, or importing distributor to give, sell, or lease dispensing equipment to specified licensees if certain requirements are met. Makes other changes.


LRB101 09851 RPS 54953 b

 

 

A BILL FOR

 

SB1831LRB101 09851 RPS 54953 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 Sections 1-3.04, 5-1, 6-6, 6-6.5, 6-6.6 as follows:
 
6    (235 ILCS 5/1-3.04)  (from Ch. 43, par. 95.04)
7    Sec. 1-3.04. "Beer" means a beverage obtained by the
8alcoholic fermentation of an infusion or concoction of barley,
9or other grain, malt, and hops in water, and includes, among
10other things, beer, ale, stout, lager beer, porter, beverages
11brewed or fermented wholly or in part from malt products, and
12the like.
13(Source: P.A. 82-783.)
 
14    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
15    Sec. 5-1. Licenses issued by the Illinois Liquor Control
16Commission shall be of the following classes:
17    (a) Manufacturer's license - Class 1. Distiller, Class 2.
18Rectifier, Class 3. Brewer, Class 4. First Class Wine
19Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
20First Class Winemaker, Class 7. Second Class Winemaker, Class
218. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
2210. Class 1 Brewer, Class 11. Class 2 Brewer,

 

 

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1    (b) Distributor's license,
2    (c) Importing Distributor's license,
3    (d) Retailer's license,
4    (e) Special Event Retailer's license (not-for-profit),
5    (f) Railroad license,
6    (g) Boat license,
7    (h) Non-Beverage User's license,
8    (i) Wine-maker's premises license,
9    (j) Airplane license,
10    (k) Foreign importer's license,
11    (l) Broker's license,
12    (m) Non-resident dealer's license,
13    (n) Brew Pub license,
14    (o) Auction liquor license,
15    (p) Caterer retailer license,
16    (q) Special use permit license,
17    (r) Winery shipper's license,
18    (s) Craft distiller tasting permit,
19    (t) Brewer warehouse permit.
20    No person, firm, partnership, corporation, or other legal
21business entity that is engaged in the manufacturing of wine
22may concurrently obtain and hold a wine-maker's license and a
23wine manufacturer's license.
24    (a) A manufacturer's license shall allow the manufacture,
25importation in bulk, storage, distribution and sale of
26alcoholic liquor to persons without the State, as may be

 

 

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1permitted by law and to licensees in this State as follows:
2    Class 1. A Distiller may make sales and deliveries of
3alcoholic liquor to distillers, rectifiers, importing
4distributors, distributors and non-beverage users and to no
5other licensees.
6    Class 2. A Rectifier, who is not a distiller, as defined
7herein, may make sales and deliveries of alcoholic liquor to
8rectifiers, importing distributors, distributors, retailers
9and non-beverage users and to no other licensees.
10    Class 3. A Brewer may make sales and deliveries of beer to
11importing distributors and distributors and may make sales as
12authorized under subsection (e) of Section 6-4 of this Act.
13    Class 4. A first class wine-manufacturer may make sales and
14deliveries of up to 50,000 gallons of wine to manufacturers,
15importing distributors and distributors, and to no other
16licensees.
17    Class 5. A second class Wine manufacturer may make sales
18and deliveries of more than 50,000 gallons of wine to
19manufacturers, importing distributors and distributors and to
20no other licensees.
21    Class 6. A first-class wine-maker's license shall allow the
22manufacture of up to 50,000 gallons of wine per year, and the
23storage and sale of such wine to distributors in the State and
24to persons without the State, as may be permitted by law. A
25person who, prior to June 1, 2008 (the effective date of Public
26Act 95-634), is a holder of a first-class wine-maker's license

 

 

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1and annually produces more than 25,000 gallons of its own wine
2and who distributes its wine to licensed retailers shall cease
3this practice on or before July 1, 2008 in compliance with
4Public Act 95-634.
5    Class 7. A second-class wine-maker's license shall allow
6the manufacture of between 50,000 and 150,000 gallons of wine
7per year, and the storage and sale of such wine to distributors
8in this State and to persons without the State, as may be
9permitted by law. A person who, prior to June 1, 2008 (the
10effective date of Public Act 95-634), is a holder of a
11second-class wine-maker's license and annually produces more
12than 25,000 gallons of its own wine and who distributes its
13wine to licensed retailers shall cease this practice on or
14before July 1, 2008 in compliance with Public Act 95-634.
15    Class 8. A limited wine-manufacturer may make sales and
16deliveries not to exceed 40,000 gallons of wine per year to
17distributors, and to non-licensees in accordance with the
18provisions of this Act.
19    Class 9. A craft distiller license shall allow the
20manufacture of up to 100,000 gallons of spirits by distillation
21per year and the storage of such spirits. If a craft distiller
22licensee, including a craft distiller licensee who holds more
23than one craft distiller license, is not affiliated with any
24other manufacturer of spirits, then the craft distiller
25licensee may sell such spirits to distributors in this State
26and up to 2,500 gallons of such spirits to non-licensees to the

 

 

SB1831- 5 -LRB101 09851 RPS 54953 b

1extent permitted by any exemption approved by the Commission
2pursuant to Section 6-4 of this Act. A craft distiller license
3holder may store such spirits at a non-contiguous licensed
4location, but at no time shall a craft distiller license holder
5directly or indirectly produce in the aggregate more than
6100,000 gallons of spirits per year.
7    A craft distiller licensee may hold more than one craft
8distiller's license. However, a craft distiller that holds more
9than one craft distiller license shall not manufacture, in the
10aggregate, more than 100,000 gallons of spirits by distillation
11per year and shall not sell, in the aggregate, more than 2,500
12gallons of such spirits to non-licensees in accordance with an
13exemption approved by the State Commission pursuant to Section
146-4 of this Act.
15    Any craft distiller licensed under this Act who on July 28,
162010 (the effective date of Public Act 96-1367) was licensed as
17a distiller and manufactured no more spirits than permitted by
18this Section shall not be required to pay the initial licensing
19fee.
20    Class 10. A class 1 brewer license, which may only be
21issued to a licensed brewer or licensed non-resident dealer,
22shall allow the manufacture of up to 930,000 gallons of beer
23per year provided that the class 1 brewer licensee does not
24manufacture more than a combined 930,000 gallons of beer per
25year and is not a member of or affiliated with, directly or
26indirectly, a manufacturer that produces more than 930,000

 

 

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1gallons of beer per year or any other alcoholic liquor. A class
21 brewer licensee may make sales and deliveries to importing
3distributors and distributors and to retail licensees in
4accordance with the conditions set forth in paragraph (18) of
5subsection (a) of Section 3-12 of this Act. If the State
6Commission provides prior approval, a class 1 brewer may
7annually transfer up to 930,000 gallons of beer manufactured by
8that class 1 brewer to the premises of a licensed class 1
9brewer wholly owned and operated by the same licensee.
10    Class 11. A class 2 brewer license, which may only be
11issued to a licensed brewer or licensed non-resident dealer,
12shall allow the manufacture of up to 3,720,000 gallons of beer
13per year provided that the class 2 brewer licensee does not
14manufacture more than a combined 3,720,000 gallons of beer per
15year and is not a member of or affiliated with, directly or
16indirectly, a manufacturer that produces more than 3,720,000
17gallons of beer per year or any other alcoholic liquor. A class
182 brewer licensee may make sales and deliveries to importing
19distributors and distributors, but shall not make sales or
20deliveries to any other licensee. If the State Commission
21provides prior approval, a class 2 brewer licensee may annually
22transfer up to 3,720,000 gallons of beer manufactured by that
23class 2 brewer licensee to the premises of a licensed class 2
24brewer wholly owned and operated by the same licensee.
25    A class 2 brewer may transfer beer to a brew pub wholly
26owned and operated by the class 2 brewer subject to the

 

 

SB1831- 7 -LRB101 09851 RPS 54953 b

1following limitations and restrictions: (i) the transfer shall
2not annually exceed more than 31,000 gallons; (ii) the annual
3amount transferred shall reduce the brew pub's annual permitted
4production limit; (iii) all beer transferred shall be subject
5to Article VIII of this Act; (iv) a written record shall be
6maintained by the brewer and brew pub specifying the amount,
7date of delivery, and receipt of the product by the brew pub;
8and (v) the brew pub shall be located no farther than 80 miles
9from the class 2 brewer's licensed location.
10    A class 2 brewer shall, prior to transferring beer to a
11brew pub wholly owned by the class 2 brewer, furnish a written
12notice to the State Commission of intent to transfer beer
13setting forth the name and address of the brew pub and shall
14annually submit to the State Commission a verified report
15identifying the total gallons of beer transferred to the brew
16pub wholly owned by the class 2 brewer.
17    (a-1) A manufacturer which is licensed in this State to
18make sales or deliveries of alcoholic liquor to licensed
19distributors or importing distributors and which enlists
20agents, representatives, or individuals acting on its behalf
21who contact licensed retailers on a regular and continual basis
22in this State must register those agents, representatives, or
23persons acting on its behalf with the State Commission.
24    Registration of agents, representatives, or persons acting
25on behalf of a manufacturer is fulfilled by submitting a form
26to the Commission. The form shall be developed by the

 

 

SB1831- 8 -LRB101 09851 RPS 54953 b

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

 

 

SB1831- 9 -LRB101 09851 RPS 54953 b

1the Commission and the Commission shall, without the payment of
2any fee, immediately issue such importing distributor's
3license to the applicant, which shall allow the importation of
4alcoholic liquor by the licensee into this State from any point
5in the United States outside this State, and the purchase of
6alcoholic liquor in barrels, casks or other bulk containers and
7the bottling of such alcoholic liquors before resale thereof,
8but all bottles or containers so filled shall be sealed,
9labeled, stamped and otherwise made to comply with all
10provisions, rules and regulations governing manufacturers in
11the preparation and bottling of alcoholic liquors. The
12importing distributor's license shall permit such licensee to
13purchase alcoholic liquor from Illinois licensed non-resident
14dealers and foreign importers only. No person licensed as an
15importing distributor shall be granted a non-resident dealer's
16license.
17    (d) A retailer's license shall allow the licensee to sell
18and offer for sale at retail, only in the premises specified in
19the license, alcoholic liquor for use or consumption, but not
20for resale in any form. Nothing in Public Act 95-634 shall
21deny, limit, remove, or restrict the ability of a holder of a
22retailer's license to transfer, deliver, or ship alcoholic
23liquor to the purchaser for use or consumption subject to any
24applicable local law or ordinance. Any retail license issued to
25a manufacturer shall only permit the manufacturer to sell beer
26at retail on the premises actually occupied by the

 

 

SB1831- 10 -LRB101 09851 RPS 54953 b

1manufacturer. For the purpose of further describing the type of
2business conducted at a retail licensed premises, a retailer's
3licensee may be designated by the State Commission as (i) an on
4premise consumption retailer, (ii) an off premise sale
5retailer, or (iii) a combined on premise consumption and off
6premise sale retailer.
7    Notwithstanding any other provision of this subsection
8(d), a retail licensee may sell alcoholic liquors to a special
9event retailer licensee for resale to the extent permitted
10under subsection (e).
11    (e) A special event retailer's license (not-for-profit)
12shall permit the licensee to purchase alcoholic liquors from an
13Illinois licensed distributor (unless the licensee purchases
14less than $500 of alcoholic liquors for the special event, in
15which case the licensee may purchase the alcoholic liquors from
16a licensed retailer) and shall allow the licensee to sell and
17offer for sale, at retail, alcoholic liquors for use or
18consumption, but not for resale in any form and only at the
19location and on the specific dates designated for the special
20event in the license. An applicant for a special event retailer
21license must (i) furnish with the application: (A) a resale
22number issued under Section 2c of the Retailers' Occupation Tax
23Act or evidence that the applicant is registered under Section
242a of the Retailers' Occupation Tax Act, (B) a current, valid
25exemption identification number issued under Section 1g of the
26Retailers' Occupation Tax Act, and a certification to the

 

 

SB1831- 11 -LRB101 09851 RPS 54953 b

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

 

 

SB1831- 12 -LRB101 09851 RPS 54953 b

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

 

 

SB1831- 13 -LRB101 09851 RPS 54953 b

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

 

 

SB1831- 14 -LRB101 09851 RPS 54953 b

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

 

 

SB1831- 15 -LRB101 09851 RPS 54953 b

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

 

 

SB1831- 16 -LRB101 09851 RPS 54953 b

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

 

 

SB1831- 17 -LRB101 09851 RPS 54953 b

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

 

 

SB1831- 18 -LRB101 09851 RPS 54953 b

1the non-resident dealer shall comply with the provisions of
2Sections 6-5 and 6-6 of this Act to the same extent that these
3provisions apply to manufacturers. No person licensed as a
4non-resident dealer shall be granted a distributor's or
5importing distributor's license.
6    (n) A brew pub license shall allow the licensee to only (i)
7manufacture up to 155,000 gallons of beer per year only on the
8premises specified in the license, (ii) make sales of the beer
9manufactured on the premises or, with the approval of the
10Commission, beer manufactured on another brew pub licensed
11premises that is wholly owned and operated by the same licensee
12to importing distributors, distributors, and to non-licensees
13for use and consumption, (iii) store the beer upon the
14premises, (iv) sell and offer for sale at retail from the
15licensed premises for off-premises consumption no more than
16155,000 gallons per year so long as such sales are only made
17in-person, (v) sell and offer for sale at retail for use and
18consumption on the premises specified in the license any form
19of alcoholic liquor purchased from a licensed distributor or
20importing distributor, and (vi) with the prior approval of the
21Commission, annually transfer no more than 155,000 gallons of
22beer manufactured on the premises to a licensed brew pub wholly
23owned and operated by the same licensee.
24    A brew pub licensee shall not under any circumstance sell
25or offer for sale beer manufactured by the brew pub licensee to
26retail licensees.

 

 

SB1831- 19 -LRB101 09851 RPS 54953 b

1    A person who holds a class 2 brewer license may
2simultaneously hold a brew pub license if the class 2 brewer
3(i) does not, under any circumstance, sell or offer for sale
4beer manufactured by the class 2 brewer to retail licensees;
5(ii) does not hold more than 3 brew pub licenses in this State;
6(iii) does not manufacture more than a combined 3,720,000
7gallons of beer per year, including the beer manufactured at
8the brew pub; and (iv) is not a member of or affiliated with,
9directly or indirectly, a manufacturer that produces more than
103,720,000 gallons of beer per year or any other alcoholic
11liquor.
12    Notwithstanding any other provision of this Act, a licensed
13brewer, class 2 brewer, or non-resident dealer who before July
141, 2015 manufactured less than 3,720,000 gallons of beer per
15year and held a brew pub license on or before July 1, 2015 may
16(i) continue to qualify for and hold that brew pub license for
17the licensed premises and (ii) manufacture more than 3,720,000
18gallons of beer per year and continue to qualify for and hold
19that brew pub license if that brewer, class 2 brewer, or
20non-resident dealer does not simultaneously hold a class 1
21brewer license and is not a member of or affiliated with,
22directly or indirectly, a manufacturer that produces more than
233,720,000 gallons of beer per year or that produces any other
24alcoholic liquor.
25    (o) A caterer retailer license shall allow the holder to
26serve alcoholic liquors as an incidental part of a food service

 

 

SB1831- 20 -LRB101 09851 RPS 54953 b

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

 

 

SB1831- 21 -LRB101 09851 RPS 54953 b

1    For purposes of this subsection (o), an "act of God" means
2an unforeseeable event, such as a rain or snow storm, hail, a
3flood, or a similar event, that is the sole cause of the
4cancellation of an off-site, outdoor event.
5    (p) An auction liquor license shall allow the licensee to
6sell and offer for sale at auction wine and spirits for use or
7consumption, or for resale by an Illinois liquor licensee in
8accordance with provisions of this Act. An auction liquor
9license will be issued to a person and it will permit the
10auction liquor licensee to hold the auction anywhere in the
11State. An auction liquor license must be obtained for each
12auction at least 14 days in advance of the auction date.
13    (q) A special use permit license shall allow an Illinois
14licensed retailer to transfer a portion of its alcoholic liquor
15inventory from its retail licensed premises to the premises
16specified in the license hereby created; to purchase alcoholic
17liquor from a distributor or importing distributor to be
18delivered directly to the location specified in the license
19hereby created; , and to sell or offer for sale at retail, only
20in the premises specified in the license hereby created, the
21transferred or delivered alcoholic liquor for use or
22consumption, but not for resale in any form. A special use
23permit license may be granted for the following time periods:
24one day or less; 2 or more days to a maximum of 15 days per
25location in any 12-month period. An applicant for the special
26use permit license must also submit with the application proof

 

 

SB1831- 22 -LRB101 09851 RPS 54953 b

1satisfactory to the State Commission that the applicant will
2provide dram shop liability insurance to the maximum limits and
3have local authority approval.
4    A special use permit license shall allow the holder, a
5distributor, or an importing distributor to transfer any
6inventory from the holder's special use premises to its retail
7premises at the conclusion of the special use event.
8    Nothing in this Act prohibits a distributor or importing
9distributor from offering credit or a refund for unused,
10salable beer to a special use permit licensee or a special use
11permit licensee from accepting a credit or refund for unused,
12salable beer at the conclusion of the event specified in the
13license if: (i) the holder of the special use permit license
14has not transferred alcoholic liquor from its retail licensed
15premises to the premises specified in the special use permit
16license; (ii) the distributor or importing distributor offers
17the credit or refund for the unused, salable beer that it
18delivered to the premises specified in the special use permit
19license and not for any unused, salable beer that the
20distributor or importing distributor delivered to the
21retailer's premises; and (iii) the unused, salable beer would
22likely spoil if transferred to the retailer premises.
23    (r) A winery shipper's license shall allow a person with a
24first-class or second-class wine manufacturer's license, a
25first-class or second-class wine-maker's license, or a limited
26wine manufacturer's license or who is licensed to make wine

 

 

SB1831- 23 -LRB101 09851 RPS 54953 b

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

 

 

SB1831- 24 -LRB101 09851 RPS 54953 b

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

 

 

SB1831- 25 -LRB101 09851 RPS 54953 b

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

 

 

SB1831- 26 -LRB101 09851 RPS 54953 b

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

 

 

SB1831- 27 -LRB101 09851 RPS 54953 b

1this State. A winery shipper licensed under this subsection (r)
2must comply with the requirements of Section 6-29 of this Act.
3    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
4Section 3-12, the State Commission may receive, respond to, and
5investigate any complaint and impose any of the remedies
6specified in paragraph (1) of subsection (a) of Section 3-12.
7    As used in this subsection, "third-party provider" means
8any entity that provides fulfillment house services, including
9warehousing, packaging, distribution, order processing, or
10shipment of wine, but not the sale of wine, on behalf of a
11licensed winery shipper.
12    (s) A craft distiller tasting permit license shall allow an
13Illinois licensed craft distiller to transfer a portion of its
14alcoholic liquor inventory from its craft distiller licensed
15premises to the premises specified in the license hereby
16created and to conduct a sampling, only in the premises
17specified in the license hereby created, of the transferred
18alcoholic liquor in accordance with subsection (c) of Section
196-31 of this Act. The transferred alcoholic liquor may not be
20sold or resold in any form. An applicant for the craft
21distiller tasting permit license must also submit with the
22application proof satisfactory to the State Commission that the
23applicant will provide dram shop liability insurance to the
24maximum limits and have local authority approval.
25    A brewer warehouse permit may be issued to the holder of a
26class 1 brewer license or a class 2 brewer license. If the

 

 

SB1831- 28 -LRB101 09851 RPS 54953 b

1holder of the permit is a class 1 brewer licensee, the brewer
2warehouse permit shall allow the holder to store or warehouse
3up to 930,000 gallons of tax-determined beer manufactured by
4the holder of the permit at the premises specified on the
5permit. If the holder of the permit is a class 2 brewer
6licensee, the brewer warehouse permit shall allow the holder to
7store or warehouse up to 3,720,000 gallons of tax-determined
8beer manufactured by the holder of the permit at the premises
9specified on the permit. Sales to non-licensees are prohibited
10at the premises specified in the brewer warehouse permit.
11(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
1299-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
131-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
14eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
15revised 10-2-18.)
 
16    (235 ILCS 5/6-6)  (from Ch. 43, par. 123)
17    Sec. 6-6. Except as otherwise provided in this Act no
18manufacturer or distributor or importing distributor shall,
19directly or indirectly, sell, supply, furnish, give or pay for,
20or loan or lease, any furnishing, fixture or equipment on the
21premises of a place of business of another licensee authorized
22under this Act to sell alcoholic liquor at retail, either for
23consumption on or off the premises, nor shall he or she,
24directly or indirectly, pay for any such license, or advance,
25furnish, lend or give money for payment of such license, or

 

 

SB1831- 29 -LRB101 09851 RPS 54953 b

1purchase or become the owner of any note, mortgage, or other
2evidence of indebtedness of such licensee or any form of
3security therefor, nor shall such manufacturer, or
4distributor, or importing distributor, directly or indirectly,
5be interested in the ownership, conduct or operation of the
6business of any licensee authorized to sell alcoholic liquor at
7retail, nor shall any manufacturer, or distributor, or
8importing distributor be interested directly or indirectly or
9as owner or part owner of said premises or as lessee or lessor
10thereof, in any premises upon which alcoholic liquor is sold at
11retail.
12    No manufacturer or distributor or importing distributor
13shall, directly or indirectly or through a subsidiary or
14affiliate, or by any officer, director or firm of such
15manufacturer, distributor or importing distributor, furnish,
16give, lend or rent, install, repair or maintain, to or for any
17retail licensee in this State, any signs or inside advertising
18materials except as provided in this Section and Section 6-5.
19With respect to retail licensees, other than any government
20owned or operated auditorium, exhibition hall, recreation
21facility or other similar facility holding a retailer's license
22as described in Section 6-5, a manufacturer, distributor, or
23importing distributor may furnish, give, lend or rent and
24erect, install, repair and maintain to or for any retail
25licensee, for use at any one time in or about or in connection
26with a retail establishment on which the products of the

 

 

SB1831- 30 -LRB101 09851 RPS 54953 b

1manufacturer, distributor or importing distributor are sold,
2the following signs and inside advertising materials as
3authorized in subparts (i), (ii), (iii), and (iv):
4        (i) Permanent outside signs shall cost not more than
5    $3,000 per brand manufacturer, exclusive of erection,
6    installation, repair and maintenance costs, and permit
7    fees and shall bear only the manufacturer's name, brand
8    name, trade name, slogans, markings, trademark, or other
9    symbols commonly associated with and generally used in
10    identifying the product including, but not limited to,
11    "cold beer", "on tap", "carry out", and "packaged liquor".
12        (ii) Temporary outside signs shall include, but not be
13    limited to, banners, flags, pennants, streamers, and other
14    items of a temporary and non-permanent nature, and shall
15    cost not more than $1,000 per manufacturer. Each temporary
16    outside sign must include the manufacturer's name, brand
17    name, trade name, slogans, markings, trademark, or other
18    symbol commonly associated with and generally used in
19    identifying the product. Temporary outside signs may also
20    include, for example, the product, price, packaging, date
21    or dates of a promotion and an announcement of a retail
22    licensee's specific sponsored event, if the temporary
23    outside sign is intended to promote a product, and provided
24    that the announcement of the retail licensee's event and
25    the product promotion are held simultaneously. However,
26    temporary outside signs may not include names, slogans,

 

 

SB1831- 31 -LRB101 09851 RPS 54953 b

1    markings, or logos that relate to the retailer. Nothing in
2    this subpart (ii) shall prohibit a distributor or importing
3    distributor from bearing the cost of creating or printing a
4    temporary outside sign for the retail licensee's specific
5    sponsored event or from bearing the cost of creating or
6    printing a temporary sign for a retail licensee containing,
7    for example, community goodwill expressions, regional
8    sporting event announcements, or seasonal messages,
9    provided that the primary purpose of the temporary outside
10    sign is to highlight, promote, or advertise the product. In
11    addition, temporary outside signs provided by the
12    manufacturer to the distributor or importing distributor
13    may also include, for example, subject to the limitations
14    of this Section, preprinted community goodwill
15    expressions, sporting event announcements, seasonal
16    messages, and manufacturer promotional announcements.
17    However, a distributor or importing distributor shall not
18    bear the cost of such manufacturer preprinted signs.
19        (iii) Permanent inside signs, whether visible from the
20    outside or the inside of the premises, include, but are not
21    limited to: alcohol lists and menus that may include names,
22    slogans, markings, or logos that relate to the retailer;
23    neons; illuminated signs; clocks; table lamps; mirrors;
24    tap handles; decalcomanias; window painting; and window
25    trim. All neons, illuminated signs, clocks, table lamps,
26    mirrors, and tap handles are the property of the

 

 

SB1831- 32 -LRB101 09851 RPS 54953 b

1    manufacturer and shall be returned to the manufacturer or
2    its agent upon request. All permanent inside signs in place
3    and in use at any one time shall cost in the aggregate not
4    more than $6,000 per manufacturer. A permanent inside sign
5    must include the manufacturer's name, brand name, trade
6    name, slogans, markings, trademark, or other symbol
7    commonly associated with and generally used in identifying
8    the product. However, permanent inside signs may not
9    include names, slogans, markings, or logos that relate to
10    the retailer. For the purpose of this subpart (iii), all
11    permanent inside signs may be displayed in an adjacent
12    courtyard or patio commonly referred to as a "beer garden"
13    that is a part of the retailer's licensed premises.
14        (iv) Temporary inside signs shall include, but are not
15    limited to, lighted chalk boards, acrylic table tent
16    beverage or hors d'oeuvre list holders, banners, flags,
17    pennants, streamers, and inside advertising materials such
18    as posters, placards, bowling sheets, table tents, inserts
19    for acrylic table tent beverage or hors d'oeuvre list
20    holders, sports schedules, or similar printed or
21    illustrated materials and product displays, such as
22    display racks, bins, barrels, or similar items, the primary
23    function of which is to temporarily hold and display
24    alcoholic beverages; however, such items, for example, as
25    coasters, trays, napkins, glassware and cups shall not be
26    deemed to be inside signs or advertising materials and may

 

 

SB1831- 33 -LRB101 09851 RPS 54953 b

1    only be sold to retailers at fair market value, which shall
2    be no less than the cost of the item to the manufacturer,
3    distributor, or importing distributor. All temporary
4    inside signs and inside advertising materials in place and
5    in use at any one time shall cost in the aggregate not more
6    than $1,000 per manufacturer. Nothing in this subpart (iv)
7    prohibits a distributor or importing distributor from
8    paying the cost of printing or creating any temporary
9    inside banner or inserts for acrylic table tent beverage or
10    hors d'oeuvre list holders for a retail licensee, provided
11    that the primary purpose for the banner or insert is to
12    highlight, promote, or advertise the product. For the
13    purpose of this subpart (iv), all temporary inside signs
14    and inside advertising materials may be displayed in an
15    adjacent courtyard or patio commonly referred to as a "beer
16    garden" that is a part of the retailer's licensed premises.
17    The restrictions contained in this Section 6-6 do not apply
18to signs, or promotional or advertising materials furnished by
19manufacturers, distributors or importing distributors to a
20government owned or operated facility holding a retailer's
21license as described in Section 6-5.
22    No distributor or importing distributor shall directly or
23indirectly or through a subsidiary or affiliate, or by any
24officer, director or firm of such manufacturer, distributor or
25importing distributor, furnish, give, lend or rent, install,
26repair or maintain, to or for any retail licensee in this

 

 

SB1831- 34 -LRB101 09851 RPS 54953 b

1State, any signs or inside advertising materials described in
2subparts (i), (ii), (iii), or (iv) of this Section except as
3the agent for or on behalf of a manufacturer, provided that the
4total cost of any signs and inside advertising materials
5including but not limited to labor, erection, installation and
6permit fees shall be paid by the manufacturer whose product or
7products said signs and inside advertising materials advertise
8and except as follows:
9    A distributor or importing distributor may purchase from or
10enter into a written agreement with a manufacturer or a
11manufacturer's designated supplier and such manufacturer or
12the manufacturer's designated supplier may sell or enter into
13an agreement to sell to a distributor or importing distributor
14permitted signs and advertising materials described in
15subparts (ii), (iii), or (iv) of this Section for the purpose
16of furnishing, giving, lending, renting, installing,
17repairing, or maintaining such signs or advertising materials
18to or for any retail licensee in this State. Any purchase by a
19distributor or importing distributor from a manufacturer or a
20manufacturer's designated supplier shall be voluntary and the
21manufacturer may not require the distributor or the importing
22distributor to purchase signs or advertising materials from the
23manufacturer or the manufacturer's designated supplier.
24    A distributor or importing distributor shall be deemed the
25owner of such signs or advertising materials purchased from a
26manufacturer or a manufacturer's designated supplier.

 

 

SB1831- 35 -LRB101 09851 RPS 54953 b

1    The provisions of Public Act 90-373 concerning signs or
2advertising materials delivered by a manufacturer to a
3distributor or importing distributor shall apply only to signs
4or advertising materials delivered on or after August 14, 1997.
5    A manufacturer, distributor, or importing distributor may
6furnish free social media advertising to a retail licensee if
7the social media advertisement does not contain the retail
8price of any alcoholic liquor and the social media
9advertisement complies with any applicable rules or
10regulations issued by the Alcohol and Tobacco Tax and Trade
11Bureau of the United States Department of the Treasury. A
12manufacturer, distributor, or importing distributor may list
13the names of one or more unaffiliated retailers in the
14advertisement of alcoholic liquor through social media.
15Nothing in this Section shall prohibit a retailer from
16communicating with a manufacturer, distributor, or importing
17distributor on social media or sharing media on the social
18media of a manufacturer, distributor, or importing
19distributor. A retailer may request free social media
20advertising from a manufacturer, distributor, or importing
21distributor. Nothing in this Section shall prohibit a
22manufacturer, distributor, or importing distributor from
23sharing, reposting, or otherwise forwarding a social media post
24by a retail licensee, so long as the sharing, reposting, or
25forwarding of the social media post does not contain the retail
26price of any alcoholic liquor. No manufacturer, distributor, or

 

 

SB1831- 36 -LRB101 09851 RPS 54953 b

1importing distributor shall pay or reimburse a retailer,
2directly or indirectly, for any social media advertising
3services, except as specifically permitted in this Act. No
4retailer shall accept any payment or reimbursement, directly or
5indirectly, for any social media advertising services offered
6by a manufacturer, distributor, or importing distributor,
7except as specifically permitted in this Act. For the purposes
8of this Section, "social media" means a service, platform, or
9site where users communicate with one another and share media,
10such as pictures, videos, music, and blogs, with other users
11free of charge.
12    No person engaged in the business of manufacturing,
13importing or distributing alcoholic liquors shall, directly or
14indirectly, pay for, or advance, furnish, or lend money for the
15payment of any license for another. Any licensee who shall
16permit or assent, or be a party in any way to any violation or
17infringement of the provisions of this Section shall be deemed
18guilty of a violation of this Act, and any money loaned
19contrary to a provision of this Act shall not be recovered
20back, or any note, mortgage or other evidence of indebtedness,
21or security, or any lease or contract obtained or made contrary
22to this Act shall be unenforceable and void.
23    This Section shall not apply to airplane licensees
24exercising powers provided in paragraph (i) of Section 5-1 of
25this Act.
26(Source: P.A. 99-448, eff. 8-24-15; 100-885, eff. 8-14-18.)
 

 

 

SB1831- 37 -LRB101 09851 RPS 54953 b

1    (235 ILCS 5/6-6.5)
2    Sec. 6-6.5. Sanitation. A manufacturer, distributor, or
3importing distributor may sell coil cleaning services to a
4retail licensee at fair market cost.
5    A manufacturer, distributor, or importing distributor may
6sell dispensing accessories to retail licensees at a price not
7less than the cost to the manufacturer, distributor, or
8importing distributor who initially purchased them. Dispensing
9accessories include, but are not limited to, items such as
10standards, faucets, cold plates, rods, vents, taps, tap
11standards, hoses, washers, couplings, gas gauges, vent
12tongues, shanks, and check valves. A manufacturer,
13distributor, or importing distributor may service, balance, or
14inspect draft beer, wine, or distilled spirits systems at
15regular intervals and may provide labor to replace or install
16dispensing accessories.
17    Coil cleaning supplies consisting of detergents, cleaning
18chemicals, brushes, or similar type cleaning devices may be
19sold at a price not less than the cost to the manufacturer,
20distributor, or importing distributor.
21    A distributor or importing distributor shall not sell or
22give coil cleaning services to a retailer, special use permit
23licensee, caterer retailer, or brew pub.
24(Source: P.A. 90-432, eff. 1-1-98.)
 

 

 

SB1831- 38 -LRB101 09851 RPS 54953 b

1    (235 ILCS 5/6-6.6 new)
2    Sec. 6-6.6. Giving, selling, and leasing dispensing
3equipment. Notwithstanding any provision of this Act to the
4contrary, a manufacturer, distributor, or importing
5distributor may:
6        (1) give dispensing equipment free of charge to a
7    retailer, special use permit licensee, caterer retailer,
8    or brew pub one time per year for a one-day period. A
9    manufacturer, distributor, or importing distributor shall
10    not supply a retailer, special use permit licensee, caterer
11    retailer, or brew pub with free beer, wine, or spirits for
12    the same one-day period the dispensing equipment is given;
13        (2) give dispensing equipment free of charge to a
14    special event retailer only for the duration of the
15    licensed special event. A manufacturer, distributor, or
16    importing distributor shall not supply a special event
17    retailer with free beer, wine, or distilled spirits for the
18    event the dispensing equipment is given; or
19        (3) sell dispensing equipment to a retailer, special
20    event retailer, special use permit licensee, caterer
21    retailer, or brew pub for a price that is not less than the
22    cost to the manufacturer, distributor, or importing
23    distributor. For purposes of this paragraph (3), the cost
24    of dispensing equipment is the amount that the
25    manufacturer, distributor, or importing distributor paid
26    for the dispensing equipment. If the manufacturer,

 

 

SB1831- 39 -LRB101 09851 RPS 54953 b

1    distributor, or importing distributor did not pay for the
2    dispensing equipment but was given the equipment, the cost
3    of the dispensing equipment is equal to (i) the amount
4    another manufacturer, distributor, or importing
5    distributor paid for the dispensing equipment, (ii) the
6    cost of manufacturing or producing the dispensing
7    equipment, or (iii) the fair market value of the dispensing
8    equipment.
9    A manufacturer, distributor, or importing distributor may
10also enter into a written lease for the fair market value of
11the dispensing equipment to retailers, special event
12retailers, special use permit licensees, caterer retailers, or
13brew pubs. The manufacturer, distributor, or importing
14distributor shall invoice and collect the sale price or payment
15for the entire lease period from the retailer, special event
16retailer, special use permit licensee, caterer retailer, or
17brew pub within 30 days of the date of the invoice or from the
18date the lease is executed. The term of any lease for
19dispensing equipment shall not exceed 12 months and no 12-month
20lease shall be renewed automatically. Upon expiration of a
2112-month lease, there shall be a lapse of 30 consecutive days
22before the beginning of a new lease term, except that for
23concert venues, stadiums, convention or conference centers,
24theaters or music venues where the primary purpose of the venue
25is to host live entertainment, and state and county fairs, the
26term of the lease shall correspond with the entire season or

 

 

SB1831- 40 -LRB101 09851 RPS 54953 b

1calendar of games, concerts, conferences, or other events of a
2similar nature. At the direction of the manufacturer,
3distributor, or importing distributor, the retailer, special
4event retailer, special use permit licensee, caterer retailer,
5or brew pub shall return the equipment or the manufacturer,
6distributor, or importing distributor shall retrieve the
7dispensing equipment at the termination of the lease.
8    For purposes of this Section, "dispensing equipment" means
9any portable or temporary unit the primary purpose of which is
10to pour beer or to maintain the beer in a consumable state.
11"Dispensing equipment" includes, but is not limited to,
12courtesy wagons, beer wagons, beer trailers, Waymatics,
13trailers, ice bins, draft coolers, coil boxes, portable bars,
14and kiosks. "Dispensing equipment" does not include permanent
15tap systems, permanent refrigeration systems, or any other
16built-in or physically attached fixture of the retailer,
17special event retailer, special use permit licensee, caterer
18retailer, or brew pub.
19    The State Commission shall adopt rules to define the term
20"fair market value" for selling or leasing dispensing
21equipment.