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1 | AN ACT concerning liquor. | |||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
3 | represented in the General Assembly: | |||||||||||||||||||
4 | Section 5. The Liquor Control Act of 1934 is amended by | |||||||||||||||||||
5 | changing Section 6-4 as follows: | |||||||||||||||||||
6 | (235 ILCS 5/6-4) (from Ch. 43, par. 121) | |||||||||||||||||||
7 | Sec. 6-4. (a) No person licensed by any licensing | |||||||||||||||||||
8 | authority as a distiller, or a wine manufacturer, or any | |||||||||||||||||||
9 | subsidiary or affiliate thereof, or any officer, associate, | |||||||||||||||||||
10 | member, partner, representative, employee, agent or | |||||||||||||||||||
11 | shareholder owning more than 5% of the outstanding shares of | |||||||||||||||||||
12 | such person shall be issued an importing distributor's or | |||||||||||||||||||
13 | distributor's license, nor shall any person licensed by any | |||||||||||||||||||
14 | licensing authority as an importing distributor, distributor | |||||||||||||||||||
15 | or retailer, or any subsidiary or affiliate thereof, or any | |||||||||||||||||||
16 | officer or associate, member, partner, representative, | |||||||||||||||||||
17 | employee, agent or shareholder owning more than 5% of the | |||||||||||||||||||
18 | outstanding shares of such person be issued a distiller's | |||||||||||||||||||
19 | license, a craft distiller's license, or a wine manufacturer's | |||||||||||||||||||
20 | license; and no person or persons licensed as a distiller, | |||||||||||||||||||
21 | craft distiller, class 1 craft distiller, or class 2 craft | |||||||||||||||||||
22 | distiller by any licensing authority shall have any interest, | |||||||||||||||||||
23 | directly or indirectly, with such distributor or importing |
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1 | distributor. | ||||||
2 | However, an importing distributor or distributor, which on | ||||||
3 | January 1, 1985 is owned by a brewer, or any subsidiary or | ||||||
4 | affiliate thereof or any officer, associate, member, partner, | ||||||
5 | representative, employee, agent or shareholder owning more | ||||||
6 | than 5% of the outstanding shares of the importing distributor | ||||||
7 | or distributor referred to in this paragraph, may own or | ||||||
8 | acquire an ownership interest of more than 5% of the | ||||||
9 | outstanding shares of a wine manufacturer and be issued a wine | ||||||
10 | manufacturer's license by any licensing authority. | ||||||
11 | (b) The foregoing provisions shall not apply to any person | ||||||
12 | licensed by any licensing authority as a distiller or wine | ||||||
13 | manufacturer, or to any subsidiary or affiliate of any | ||||||
14 | distiller or wine manufacturer who shall have been heretofore | ||||||
15 | licensed by the State Commission as either an importing | ||||||
16 | distributor or distributor during the annual licensing period | ||||||
17 | expiring June 30, 1947, and shall actually have made sales | ||||||
18 | regularly to retailers. | ||||||
19 | (c) Provided, however, that in such instances where a | ||||||
20 | distributor's or importing distributor's license has been | ||||||
21 | issued to any distiller or wine manufacturer or to any | ||||||
22 | subsidiary or affiliate of any distiller or wine manufacturer | ||||||
23 | who has, during the licensing period ending June 30, 1947, | ||||||
24 | sold or distributed as such licensed distributor or importing | ||||||
25 | distributor alcoholic liquors and wines to retailers, such | ||||||
26 | distiller or wine manufacturer or any subsidiary or affiliate |
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1 | of any distiller or wine manufacturer holding such | ||||||
2 | distributor's or importing distributor's license may continue | ||||||
3 | to sell or distribute to retailers such alcoholic liquors and | ||||||
4 | wines which are manufactured, distilled, processed or marketed | ||||||
5 | by distillers and wine manufacturers whose products it sold or | ||||||
6 | distributed to retailers during the whole or any part of its | ||||||
7 | licensing periods; and such additional brands and additional | ||||||
8 | products may be added to the line of such distributor or | ||||||
9 | importing distributor, provided, that such brands and such | ||||||
10 | products were not sold or distributed by any distributor or | ||||||
11 | importing distributor licensed by the State Commission during | ||||||
12 | the licensing period ending June 30, 1947, but can not sell or | ||||||
13 | distribute to retailers any other alcoholic liquors or wines. | ||||||
14 | (d) It shall be unlawful for any distiller licensed | ||||||
15 | anywhere to have any stock ownership or interest in any | ||||||
16 | distributor's or importing distributor's license wherein any | ||||||
17 | other person has an interest therein who is not a distiller and | ||||||
18 | does not own more than 5% of any stock in any distillery. | ||||||
19 | Nothing herein contained shall apply to such distillers or | ||||||
20 | their subsidiaries or affiliates, who had a distributor's or | ||||||
21 | importing distributor's license during the licensing period | ||||||
22 | ending June 30, 1947, which license was owned in whole by such | ||||||
23 | distiller, or subsidiaries or affiliates of such distiller. | ||||||
24 | (e) Any person licensed as a brewer, class 1 brewer, or | ||||||
25 | class 2 brewer shall be permitted to sell on the licensed | ||||||
26 | premises to non-licensees for on-premises on or off-premises |
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1 | consumption for the premises in which he or she actually | ||||||
2 | conducts such business : (i) beer manufactured by the brewer, | ||||||
3 | class 1 brewer, class 2 brewer, or class 3 brewer; (ii) beer | ||||||
4 | manufactured by any other brewer, class 1 brewer, class 2 | ||||||
5 | brewer, or class 3 brewer; and (iii) cider , or mead , wine, or | ||||||
6 | spirits . Any person licensed as a class 3 brewer shall be | ||||||
7 | permitted to sell on the licensed premises to non-licensees | ||||||
8 | for on-premises on or off-premises off premises consumption | ||||||
9 | for the premises in which he or she actually conducts such | ||||||
10 | business : (i) beer manufactured by the class 3 brewer on the | ||||||
11 | premises; (ii) beer manufactured by any other brewer, class 1 | ||||||
12 | brewer, class 2 brewer, or class 3 brewer; and (iii) cider, | ||||||
13 | wine, and spirits. All products sold under this subsection | ||||||
14 | that are not manufactured on premises must be purchased | ||||||
15 | through a licensed distributor, importing distributor, or | ||||||
16 | manufacturer with self-distribution privileges. Such sales | ||||||
17 | shall be limited to on-premises, in-person sales only, for | ||||||
18 | lawful consumption on or off premises. Such authorization | ||||||
19 | shall be considered a privilege granted by the brewer license | ||||||
20 | and, other than a manufacturer of beer as stated above or a | ||||||
21 | designated management company, including a retail licensee , as | ||||||
22 | described in this subsection, no manufacturer or distributor | ||||||
23 | or importing distributor, excluding airplane licensees | ||||||
24 | exercising powers provided in paragraph (i) of Section 5-1 of | ||||||
25 | this Act, or any subsidiary or affiliate thereof, or any | ||||||
26 | officer, associate, member, partner, representative, employee |
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1 | or agent, or shareholder shall be issued a retailer's license, | ||||||
2 | nor shall any person having a retailer's license, excluding | ||||||
3 | airplane licensees exercising powers provided in paragraph (i) | ||||||
4 | of Section 5-1 of this Act, or any subsidiary or affiliate | ||||||
5 | thereof, or any officer, associate, member, partner, | ||||||
6 | representative or agent, or shareholder be issued a | ||||||
7 | manufacturer's license or importing distributor's license. | ||||||
8 | Notwithstanding any other provision of this Act, any | ||||||
9 | person licensed as a brewer may designate, contract with, use, | ||||||
10 | and pay reasonable compensation to a management company, | ||||||
11 | including a retail licensee, to provide services to the | ||||||
12 | licensed brewer for the licensed premises if: (1) the | ||||||
13 | compensation paid to the management company represents fair | ||||||
14 | market value for the services provided; (2) the agreements | ||||||
15 | under which the arrangements are made were approved by the | ||||||
16 | State Commission; and (3) the arrangements are not a | ||||||
17 | subterfuge to provide any retailer with a prohibited thing of | ||||||
18 | value in violation of Section 6-5. | ||||||
19 | A manufacturer of beer that imports or transfers beer into | ||||||
20 | this State must comply with Sections 6-8 and 8-1 of this Act. | ||||||
21 | A person who holds a class 2 brewer license and is | ||||||
22 | authorized by this Section to sell beer to non-licensees shall | ||||||
23 | not sell beer to non-licensees from more than 3 total brewer or | ||||||
24 | commonly owned brew pub licensed locations in this State. The | ||||||
25 | class 2 brewer shall designate to the State Commission the | ||||||
26 | brewer or brew pub locations from which it will sell beer to |
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1 | non-licensees. | ||||||
2 | A person licensed as a class 1 craft distiller or a class 2 | ||||||
3 | craft distiller, including a person who holds more than one | ||||||
4 | class 1 craft distiller or class 2 craft distiller license, | ||||||
5 | not affiliated with any other person manufacturing spirits may | ||||||
6 | be authorized by the State Commission to sell (1) up to 5,000 | ||||||
7 | gallons of spirits produced by the person to non-licensees for | ||||||
8 | on or off-premises consumption for the premises in which he or | ||||||
9 | she actually conducts business permitting only the retail sale | ||||||
10 | of spirits manufactured at such premises and (2) vermouth | ||||||
11 | purchased through a licensed distributor for on-premises | ||||||
12 | consumption. Such sales shall be limited to on-premises, | ||||||
13 | in-person sales only, for lawful consumption on or off | ||||||
14 | premises, and such authorization shall be considered a | ||||||
15 | privilege granted by the class 1 craft distiller or class 2 | ||||||
16 | craft distiller license. A class 1 craft distiller or class 2 | ||||||
17 | craft distiller licensed for retail sale shall secure liquor | ||||||
18 | liability insurance coverage in an amount at least equal to | ||||||
19 | the maximum liability amounts set forth in subsection (a) of | ||||||
20 | Section 6-21 of this Act. | ||||||
21 | A class 1 craft distiller or class 2 craft distiller | ||||||
22 | license holder shall not deliver any alcoholic liquor to any | ||||||
23 | non-licensee off the licensed premises. A class 1 craft | ||||||
24 | distiller or class 2 craft distiller shall affirm in its | ||||||
25 | annual license application that it does not produce more than | ||||||
26 | 50,000 or 100,000 gallons of distilled spirits annually, |
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1 | whichever is applicable, and that the craft distiller does not | ||||||
2 | sell more than 5,000 gallons of spirits to non-licensees for | ||||||
3 | on or off-premises consumption. In the application, which | ||||||
4 | shall be sworn under penalty of perjury, the class 1 craft | ||||||
5 | distiller or class 2 craft distiller shall state the volume of | ||||||
6 | production and sales for each year since the class 1 craft | ||||||
7 | distiller's or class 2 craft distiller's establishment. | ||||||
8 | A person who holds a class 1 craft distiller or class 2 | ||||||
9 | craft distiller license and is authorized by this Section to | ||||||
10 | sell spirits to non-licensees shall not sell spirits to | ||||||
11 | non-licensees from more than 3 total distillery or commonly | ||||||
12 | owned distilling pub licensed locations in this State. The | ||||||
13 | class 1 craft distiller or class 2 craft distiller shall | ||||||
14 | designate to the State Commission the distillery or distilling | ||||||
15 | pub locations from which it will sell spirits to | ||||||
16 | non-licensees. | ||||||
17 | (f) (Blank). | ||||||
18 | (g) Notwithstanding any of the foregoing prohibitions, a | ||||||
19 | limited wine manufacturer may sell at retail at its | ||||||
20 | manufacturing site for on or off premises consumption and may | ||||||
21 | sell to distributors. A limited wine manufacturer licensee | ||||||
22 | shall secure liquor liability insurance coverage in an amount | ||||||
23 | at least equal to the maximum liability amounts set forth in | ||||||
24 | subsection (a) of Section 6-21 of this Act. | ||||||
25 | (h) The changes made to this Section by Public Act 99-47 | ||||||
26 | shall not diminish or impair the rights of any person, whether |
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1 | a distiller, wine manufacturer, agent, or affiliate thereof, | ||||||
2 | who requested in writing and submitted documentation to the | ||||||
3 | State Commission on or before February 18, 2015 to be approved | ||||||
4 | for a retail license pursuant to what has heretofore been | ||||||
5 | subsection (f); provided that, on or before that date, the | ||||||
6 | State Commission considered the intent of that person to apply | ||||||
7 | for the retail license under that subsection and, by recorded | ||||||
8 | vote, the State Commission approved a resolution indicating | ||||||
9 | that such a license application could be lawfully approved | ||||||
10 | upon that person duly filing a formal application for a retail | ||||||
11 | license and if that person, within 90 days of the State | ||||||
12 | Commission appearance and recorded vote, first filed an | ||||||
13 | application with the appropriate local commission, which | ||||||
14 | application was subsequently approved by the appropriate local | ||||||
15 | commission prior to consideration by the State Commission of | ||||||
16 | that person's application for a retail license. It is further | ||||||
17 | provided that the State Commission may approve the person's | ||||||
18 | application for a retail license or renewals of such license | ||||||
19 | if such person continues to diligently adhere to all | ||||||
20 | representations made in writing to the State Commission on or | ||||||
21 | before February 18, 2015, or thereafter, or in the affidavit | ||||||
22 | filed by that person with the State Commission to support the | ||||||
23 | issuance of a retail license and to abide by all applicable | ||||||
24 | laws and duly adopted rules. | ||||||
25 | (i) Notwithstanding any other provision of this Act, the | ||||||
26 | common ownership of a brewery, winery, or a distillery shall |
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1 | not authorize the grant of and aggregation of retail | ||||||
2 | privileges granted to any person or licensees in subsection | ||||||
3 | (e). Any person or licensee with common ownership in a | ||||||
4 | brewery, winery, or a distillery shall be limited to the | ||||||
5 | retail privileges granted to only one of the commonly owned | ||||||
6 | brewery, winery, or distillery. The State Commission is hereby | ||||||
7 | authorized to restrict the locations of any commonly owned | ||||||
8 | brewery, winery, or distillery to prevent the expansion of | ||||||
9 | retail privileges, including, without limitation, restricting | ||||||
10 | a commonly owned brewery, winery, or distillery from operating | ||||||
11 | in adjacent licensed premises or restricting self-distribution | ||||||
12 | privileges. | ||||||
13 | (Source: P.A. 101-81, eff. 7-12-19; 101-482, eff. 8-23-19; | ||||||
14 | 101-615, eff. 12-20-19; 102-442, eff. 8-20-21.) |