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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 Sections 3-12, 5-1, and 5-3 and by adding Section | |||||||||||||||||||||||||
6 | 6-29.05 as follows: | |||||||||||||||||||||||||
7 | (235 ILCS 5/3-12) | |||||||||||||||||||||||||
8 | Sec. 3-12. Powers and duties of State Commission. | |||||||||||||||||||||||||
9 | (a) The State Commission shall have the following powers, | |||||||||||||||||||||||||
10 | functions, and duties: | |||||||||||||||||||||||||
11 | (1) To receive applications and to issue licenses to | |||||||||||||||||||||||||
12 | manufacturers, foreign importers, importing distributors, | |||||||||||||||||||||||||
13 | distributors, non-resident dealers, on premise consumption | |||||||||||||||||||||||||
14 | retailers, off premise sale retailers, special event | |||||||||||||||||||||||||
15 | retailer licensees, special use permit licenses, auction | |||||||||||||||||||||||||
16 | liquor licenses, brew pubs, caterer retailers, | |||||||||||||||||||||||||
17 | non-beverage users, railroads, including owners and | |||||||||||||||||||||||||
18 | lessees of sleeping, dining and cafe cars, airplanes, | |||||||||||||||||||||||||
19 | boats, brokers, and wine maker's premises licensees in | |||||||||||||||||||||||||
20 | accordance with the provisions of this Act, and to suspend | |||||||||||||||||||||||||
21 | or revoke such licenses upon the State Commission's | |||||||||||||||||||||||||
22 | determination, upon notice after hearing, that a licensee | |||||||||||||||||||||||||
23 | has violated any provision of this Act or any rule or |
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1 | regulation issued pursuant thereto and in effect for 30 | ||||||
2 | days prior to such violation. Except in the case of an | ||||||
3 | action taken pursuant to a violation of Section 6-3, 6-5, | ||||||
4 | or 6-9, any action by the State Commission to suspend or | ||||||
5 | revoke a licensee's license may be limited to the license | ||||||
6 | for the specific premises where the violation occurred. An | ||||||
7 | action for a violation of this Act shall be commenced by | ||||||
8 | the State Commission within 2 years after the date the | ||||||
9 | State Commission becomes aware of the violation. | ||||||
10 | In lieu of suspending or revoking a license, the | ||||||
11 | commission may impose a fine, upon the State Commission's | ||||||
12 | determination and notice after hearing, that a licensee | ||||||
13 | has violated any provision of this Act or any rule or | ||||||
14 | regulation issued pursuant thereto and in effect for 30 | ||||||
15 | days prior to such violation. | ||||||
16 | For the purpose of this paragraph (1), when | ||||||
17 | determining multiple violations for the sale of alcohol to | ||||||
18 | a person under the age of 21, a second or subsequent | ||||||
19 | violation for the sale of alcohol to a person under the age | ||||||
20 | of 21 shall only be considered if it was committed within 5 | ||||||
21 | years after the date when a prior violation for the sale of | ||||||
22 | alcohol to a person under the age of 21 was committed. | ||||||
23 | The fine imposed under this paragraph may not exceed | ||||||
24 | $500 for each violation. Each day that the activity, which | ||||||
25 | gave rise to the original fine, continues is a separate | ||||||
26 | violation. The maximum fine that may be levied against any |
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1 | licensee, for the period of the license, shall not exceed | ||||||
2 | $20,000. The maximum penalty that may be imposed on a | ||||||
3 | licensee for selling a bottle of alcoholic liquor with a | ||||||
4 | foreign object in it or serving from a bottle of alcoholic | ||||||
5 | liquor with a foreign object in it shall be the | ||||||
6 | destruction of that bottle of alcoholic liquor for the | ||||||
7 | first 10 bottles so sold or served from by the licensee. | ||||||
8 | For the eleventh bottle of alcoholic liquor and for each | ||||||
9 | third bottle thereafter sold or served from by the | ||||||
10 | licensee with a foreign object in it, the maximum penalty | ||||||
11 | that may be imposed on the licensee is the destruction of | ||||||
12 | the bottle of alcoholic liquor and a fine of up to $50. | ||||||
13 | Any notice issued by the State Commission to a | ||||||
14 | licensee for a violation of this Act or any notice with | ||||||
15 | respect to settlement or offer in compromise shall include | ||||||
16 | the field report, photographs, and any other supporting | ||||||
17 | documentation necessary to reasonably inform the licensee | ||||||
18 | of the nature and extent of the violation or the conduct | ||||||
19 | alleged to have occurred. The failure to include such | ||||||
20 | required documentation shall result in the dismissal of | ||||||
21 | the action. | ||||||
22 | (2) To adopt such rules and regulations consistent | ||||||
23 | with the provisions of this Act which shall be necessary | ||||||
24 | to carry on its functions and duties to the end that the | ||||||
25 | health, safety and welfare of the People of the State of | ||||||
26 | Illinois shall be protected and temperance in the |
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1 | consumption of alcoholic liquors shall be fostered and | ||||||
2 | promoted and to distribute copies of such rules and | ||||||
3 | regulations to all licensees affected thereby. | ||||||
4 | (3) To call upon other administrative departments of | ||||||
5 | the State, county and municipal governments, county and | ||||||
6 | city police departments and upon prosecuting officers for | ||||||
7 | such information and assistance as it deems necessary in | ||||||
8 | the performance of its duties. | ||||||
9 | (4) To recommend to local commissioners rules and | ||||||
10 | regulations, not inconsistent with the law, for the | ||||||
11 | distribution and sale of alcoholic liquors throughout the | ||||||
12 | State. | ||||||
13 | (5) To inspect, or cause to be inspected, any premises | ||||||
14 | in this State where alcoholic liquors are manufactured, | ||||||
15 | distributed, warehoused, or sold. Nothing in this Act | ||||||
16 | authorizes an agent of the State Commission to inspect | ||||||
17 | private areas within the premises without reasonable | ||||||
18 | suspicion or a warrant during an inspection. "Private | ||||||
19 | areas" include, but are not limited to, safes, personal | ||||||
20 | property, and closed desks. | ||||||
21 | (5.1) Upon receipt of a complaint or upon having | ||||||
22 | knowledge that any person is engaged in business as a | ||||||
23 | manufacturer, importing distributor, distributor, or | ||||||
24 | retailer without a license or valid license, to conduct an | ||||||
25 | investigation. If, after conducting an investigation, the | ||||||
26 | State Commission is satisfied that the alleged conduct |
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1 | occurred or is occurring, it may issue a cease and desist | ||||||
2 | notice as provided in this Act, impose civil penalties as | ||||||
3 | provided in this Act, notify the local liquor authority, | ||||||
4 | or file a complaint with the State's Attorney's Office of | ||||||
5 | the county where the incident occurred or the Attorney | ||||||
6 | General. | ||||||
7 | (5.2) Upon receipt of a complaint or upon having | ||||||
8 | knowledge that any person is shipping alcoholic liquor | ||||||
9 | into this State from a point outside of this State if the | ||||||
10 | shipment is in violation of this Act, to conduct an | ||||||
11 | investigation. If, after conducting an investigation, the | ||||||
12 | State Commission is satisfied that the alleged conduct | ||||||
13 | occurred or is occurring, it may issue a cease and desist | ||||||
14 | notice as provided in this Act, impose civil penalties as | ||||||
15 | provided in this Act, notify the foreign jurisdiction, or | ||||||
16 | file a complaint with the State's Attorney's Office of the | ||||||
17 | county where the incident occurred or the Attorney | ||||||
18 | General. | ||||||
19 | (5.3) To receive complaints from licensees, local | ||||||
20 | officials, law enforcement agencies, organizations, and | ||||||
21 | persons stating that any licensee has been or is violating | ||||||
22 | any provision of this Act or the rules and regulations | ||||||
23 | issued pursuant to this Act. Such complaints shall be in | ||||||
24 | writing, signed and sworn to by the person making the | ||||||
25 | complaint, and shall state with specificity the facts in | ||||||
26 | relation to the alleged violation. If the State Commission |
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1 | has reasonable grounds to believe that the complaint | ||||||
2 | substantially alleges a violation of this Act or rules and | ||||||
3 | regulations adopted pursuant to this Act, it shall conduct | ||||||
4 | an investigation. If, after conducting an investigation, | ||||||
5 | the State Commission is satisfied that the alleged | ||||||
6 | violation did occur, it shall proceed with disciplinary | ||||||
7 | action against the licensee as provided in this Act. | ||||||
8 | (5.4) To make arrests and issue notices of civil | ||||||
9 | violations where necessary for the enforcement of this | ||||||
10 | Act. | ||||||
11 | (5.5) To investigate any and all unlicensed activity. | ||||||
12 | (5.6) To impose civil penalties or fines to any person | ||||||
13 | who, without holding a valid license, engages in conduct | ||||||
14 | that requires a license pursuant to this Act, in an amount | ||||||
15 | not to exceed $20,000 for each offense as determined by | ||||||
16 | the State Commission. A civil penalty shall be assessed by | ||||||
17 | the State Commission after a hearing is held in accordance | ||||||
18 | with the provisions set forth in this Act regarding the | ||||||
19 | provision of a hearing for the revocation or suspension of | ||||||
20 | a license. | ||||||
21 | (6) To hear and determine appeals from orders of a | ||||||
22 | local commission in accordance with the provisions of this | ||||||
23 | Act, as hereinafter set forth. Hearings under this | ||||||
24 | subsection shall be held in Springfield or Chicago, at | ||||||
25 | whichever location is the more convenient for the majority | ||||||
26 | of persons who are parties to the hearing. |
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1 | (7) The State Commission shall establish uniform | ||||||
2 | systems of accounts to be kept by all retail licensees | ||||||
3 | having more than 4 employees, and for this purpose the | ||||||
4 | State Commission may classify all retail licensees having | ||||||
5 | more than 4 employees and establish a uniform system of | ||||||
6 | accounts for each class and prescribe the manner in which | ||||||
7 | such accounts shall be kept. The State Commission may also | ||||||
8 | prescribe the forms of accounts to be kept by all retail | ||||||
9 | licensees having more than 4 employees, including, but not | ||||||
10 | limited to, accounts of earnings and expenses and any | ||||||
11 | distribution, payment, or other distribution of earnings | ||||||
12 | or assets, and any other forms, records, and memoranda | ||||||
13 | which in the judgment of the commission may be necessary | ||||||
14 | or appropriate to carry out any of the provisions of this | ||||||
15 | Act, including, but not limited to, such forms, records, | ||||||
16 | and memoranda as will readily and accurately disclose at | ||||||
17 | all times the beneficial ownership of such retail licensed | ||||||
18 | business. The accounts, forms, records, and memoranda | ||||||
19 | shall be available at all reasonable times for inspection | ||||||
20 | by authorized representatives of the State Commission or | ||||||
21 | by any local liquor control commissioner or his or her | ||||||
22 | authorized representative. The commission may, from time | ||||||
23 | to time, alter, amend, or repeal, in whole or in part, any | ||||||
24 | uniform system of accounts, or the form and manner of | ||||||
25 | keeping accounts. | ||||||
26 | (8) In the conduct of any hearing authorized to be |
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1 | held by the State Commission, to appoint, at the | ||||||
2 | commission's discretion, hearing officers to conduct | ||||||
3 | hearings involving complex issues or issues that will | ||||||
4 | require a protracted period of time to resolve, to | ||||||
5 | examine, or cause to be examined, under oath, any | ||||||
6 | licensee, and to examine or cause to be examined the books | ||||||
7 | and records of such licensee; to hear testimony and take | ||||||
8 | proof material for its information in the discharge of its | ||||||
9 | duties hereunder; to administer or cause to be | ||||||
10 | administered oaths; for any such purpose to issue subpoena | ||||||
11 | or subpoenas to require the attendance of witnesses and | ||||||
12 | the production of books, which shall be effective in any | ||||||
13 | part of this State, and to adopt rules to implement its | ||||||
14 | powers under this paragraph (8). | ||||||
15 | Any circuit court may, by order duly entered, require | ||||||
16 | the attendance of witnesses and the production of relevant | ||||||
17 | books subpoenaed by the State Commission and the court may | ||||||
18 | compel obedience to its order by proceedings for contempt. | ||||||
19 | (9) To investigate the administration of laws in | ||||||
20 | relation to alcoholic liquors in this and other states and | ||||||
21 | any foreign countries, and to recommend from time to time | ||||||
22 | to the Governor and through him or her to the legislature | ||||||
23 | of this State, such amendments to this Act, if any, as it | ||||||
24 | may think desirable and as will serve to further the | ||||||
25 | general broad purposes contained in Section 1-2 hereof. | ||||||
26 | (10) To adopt such rules and regulations consistent |
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1 | with the provisions of this Act which shall be necessary | ||||||
2 | for the control, sale, or disposition of alcoholic liquor | ||||||
3 | damaged as a result of an accident, wreck, flood, fire, or | ||||||
4 | other similar occurrence. | ||||||
5 | (11) To develop industry educational programs related | ||||||
6 | to responsible serving and selling, particularly in the | ||||||
7 | areas of overserving consumers and illegal underage | ||||||
8 | purchasing and consumption of alcoholic beverages. | ||||||
9 | (11.1) To license persons providing education and | ||||||
10 | training to alcohol beverage sellers and servers for | ||||||
11 | mandatory and non-mandatory training under the Beverage | ||||||
12 | Alcohol Sellers and Servers Education and Training | ||||||
13 | (BASSET) programs and to develop and administer a public | ||||||
14 | awareness program in Illinois to reduce or eliminate the | ||||||
15 | illegal purchase and consumption of alcoholic beverage | ||||||
16 | products by persons under the age of 21. Application for a | ||||||
17 | license shall be made on forms provided by the State | ||||||
18 | Commission. | ||||||
19 | (12) To develop and maintain a repository of license | ||||||
20 | and regulatory information. | ||||||
21 | (13) (Blank). | ||||||
22 | (14) On or before April 30, 2008 and every 2 years | ||||||
23 | thereafter, the State Commission shall present a written | ||||||
24 | report to the Governor and the General Assembly that shall | ||||||
25 | be based on a study of the impact of Public Act 95-634 on | ||||||
26 | the business of soliciting, selling, and shipping wine |
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1 | from inside and outside of this State directly to | ||||||
2 | residents of this State. As part of its report, the State | ||||||
3 | Commission shall provide all of the following information: | ||||||
4 | (A) The amount of State excise and sales tax | ||||||
5 | revenues generated. | ||||||
6 | (B) The amount of licensing fees received. | ||||||
7 | (C) The number of cases of wine shipped from | ||||||
8 | inside and outside of this State directly to residents | ||||||
9 | of this State. | ||||||
10 | (D) The number of alcohol compliance operations | ||||||
11 | conducted. | ||||||
12 | (E) The number of winery shipper's licenses | ||||||
13 | issued. | ||||||
14 | (F) The number of each of the following: reported | ||||||
15 | violations; cease and desist notices issued by the | ||||||
16 | Commission; notices of violations issued by the | ||||||
17 | Commission and to the Department of Revenue; and | ||||||
18 | notices and complaints of violations to law | ||||||
19 | enforcement officials, including, without limitation, | ||||||
20 | the Illinois Attorney General and the U.S. Department | ||||||
21 | of Treasury's Alcohol and Tobacco Tax and Trade | ||||||
22 | Bureau. | ||||||
23 | (15) As a means to reduce the underage consumption of | ||||||
24 | alcoholic liquors, the State Commission shall conduct | ||||||
25 | alcohol compliance operations to investigate whether | ||||||
26 | businesses that are soliciting, selling, and shipping wine |
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1 | from inside or outside of this State directly to residents | ||||||
2 | of this State are licensed by this State or are selling or | ||||||
3 | attempting to sell wine to persons under 21 years of age in | ||||||
4 | violation of this Act. | ||||||
5 | (16) The State Commission shall, in addition to | ||||||
6 | notifying any appropriate law enforcement agency, submit | ||||||
7 | notices of complaints or violations of Sections 6-29 , | ||||||
8 | 6-29.05, and 6-29.1 by persons who do not hold a winery | ||||||
9 | shipper's license or distillery shipper's license under | ||||||
10 | this Act to the Illinois Attorney General and to the U.S. | ||||||
11 | Department of Treasury's Alcohol and Tobacco Tax and Trade | ||||||
12 | Bureau. | ||||||
13 | (17)(A) A person licensed to make wine under the laws | ||||||
14 | of another state who has a winery shipper's license under | ||||||
15 | this Act and annually produces less than 25,000 gallons of | ||||||
16 | wine or a person who has a first-class or second-class | ||||||
17 | wine manufacturer's license, a first-class or second-class | ||||||
18 | wine-maker's license, or a limited wine manufacturer's | ||||||
19 | license under this Act and annually produces less than | ||||||
20 | 25,000 gallons of wine may make application to the | ||||||
21 | Commission for a self-distribution exemption to allow the | ||||||
22 | sale of not more than 5,000 gallons of the exemption | ||||||
23 | holder's wine to retail licensees per year and to sell | ||||||
24 | cider, mead, or both cider and mead to brewers, class 1 | ||||||
25 | brewers, class 2 brewers, and class 3 brewers that, | ||||||
26 | pursuant to subsection (e) of Section 6-4 of this Act, |
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1 | sell beer, cider, mead, or any combination thereof to | ||||||
2 | non-licensees at their breweries. | ||||||
3 | (B) In the application, which shall be sworn under | ||||||
4 | penalty of perjury, such person shall state (1) the date | ||||||
5 | it was established; (2) its volume of production and sales | ||||||
6 | for each year since its establishment; (3) its efforts to | ||||||
7 | establish distributor relationships; (4) that a | ||||||
8 | self-distribution exemption is necessary to facilitate the | ||||||
9 | marketing of its wine; and (5) that it will comply with the | ||||||
10 | liquor and revenue laws of the United States, this State, | ||||||
11 | and any other state where it is licensed. | ||||||
12 | (C) The State Commission shall approve the application | ||||||
13 | for a self-distribution exemption if such person: (1) is | ||||||
14 | in compliance with State revenue and liquor laws; (2) is | ||||||
15 | not a member of any affiliated group that produces | ||||||
16 | directly or indirectly more than 25,000 gallons of wine | ||||||
17 | per annum, 930,000 gallons of beer per annum, or 50,000 | ||||||
18 | gallons of spirits per annum; (3) will not annually | ||||||
19 | produce for sale more than 25,000 gallons of wine, 930,000 | ||||||
20 | gallons of beer, or 50,000 gallons of spirits; and (4) | ||||||
21 | will not annually sell more than 5,000 gallons of its wine | ||||||
22 | to retail licensees. | ||||||
23 | (D) A self-distribution exemption holder shall | ||||||
24 | annually certify to the State Commission its production of | ||||||
25 | wine in the previous 12 months and its anticipated | ||||||
26 | production and sales for the next 12 months. The State |
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1 | Commission may fine, suspend, or revoke a | ||||||
2 | self-distribution exemption after a hearing if it finds | ||||||
3 | that the exemption holder has made a material | ||||||
4 | misrepresentation in its application, violated a revenue | ||||||
5 | or liquor law of Illinois, exceeded production of 25,000 | ||||||
6 | gallons of wine, 930,000 gallons of beer, or 50,000 | ||||||
7 | gallons of spirits in any calendar year, or become part of | ||||||
8 | an affiliated group producing more than 25,000 gallons of | ||||||
9 | wine, 930,000 gallons of beer, or 50,000 gallons of | ||||||
10 | spirits. | ||||||
11 | (E) Except in hearings for violations of this Act or | ||||||
12 | Public Act 95-634 or a bona fide investigation by duly | ||||||
13 | sworn law enforcement officials, the State Commission, or | ||||||
14 | its agents, the State Commission shall maintain the | ||||||
15 | production and sales information of a self-distribution | ||||||
16 | exemption holder as confidential and shall not release | ||||||
17 | such information to any person. | ||||||
18 | (F) The State Commission shall issue regulations | ||||||
19 | governing self-distribution exemptions consistent with | ||||||
20 | this Section and this Act. | ||||||
21 | (G) Nothing in this paragraph (17) shall prohibit a | ||||||
22 | self-distribution exemption holder from entering into or | ||||||
23 | simultaneously having a distribution agreement with a | ||||||
24 | licensed Illinois distributor. | ||||||
25 | (H) It is the intent of this paragraph (17) to promote | ||||||
26 | and continue orderly markets. The General Assembly finds |
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1 | that, in order to preserve Illinois' regulatory | ||||||
2 | distribution system, it is necessary to create an | ||||||
3 | exception for smaller makers of wine as their wines are | ||||||
4 | frequently adjusted in varietals, mixes, vintages, and | ||||||
5 | taste to find and create market niches sometimes too small | ||||||
6 | for distributor or importing distributor business | ||||||
7 | strategies. Limited self-distribution rights will afford | ||||||
8 | and allow smaller makers of wine access to the marketplace | ||||||
9 | in order to develop a customer base without impairing the | ||||||
10 | integrity of the 3-tier system. | ||||||
11 | (18)(A) A class 1 brewer licensee, who must also be | ||||||
12 | either a licensed brewer or licensed non-resident dealer | ||||||
13 | and annually manufacture less than 930,000 gallons of | ||||||
14 | beer, may make application to the State Commission for a | ||||||
15 | self-distribution exemption to allow the sale of not more | ||||||
16 | than 232,500 gallons per year of the exemption holder's | ||||||
17 | beer to retail licensees and to brewers, class 1 brewers, | ||||||
18 | and class 2 brewers that, pursuant to subsection (e) of | ||||||
19 | Section 6-4 of this Act, sell beer, cider, mead, or any | ||||||
20 | combination thereof to non-licensees at their breweries. | ||||||
21 | (B) In the application, which shall be sworn under | ||||||
22 | penalty of perjury, the class 1 brewer licensee shall | ||||||
23 | state (1) the date it was established; (2) its volume of | ||||||
24 | beer manufactured and sold for each year since its | ||||||
25 | establishment; (3) its efforts to establish distributor | ||||||
26 | relationships; (4) that a self-distribution exemption is |
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1 | necessary to facilitate the marketing of its beer; and (5) | ||||||
2 | that it will comply with the alcoholic beverage and | ||||||
3 | revenue laws of the United States, this State, and any | ||||||
4 | other state where it is licensed. | ||||||
5 | (C) Any application submitted shall be posted on the | ||||||
6 | State Commission's website at least 45 days prior to | ||||||
7 | action by the State Commission. The State Commission shall | ||||||
8 | approve the application for a self-distribution exemption | ||||||
9 | if the class 1 brewer licensee: (1) is in compliance with | ||||||
10 | the State, revenue, and alcoholic beverage laws; (2) is | ||||||
11 | not a member of any affiliated group that manufactures, | ||||||
12 | directly or indirectly, more than 930,000 gallons of beer | ||||||
13 | per annum, 25,000 gallons of wine per annum, or 50,000 | ||||||
14 | gallons of spirits per annum; (3) shall not annually | ||||||
15 | manufacture for sale more than 930,000 gallons of beer, | ||||||
16 | 25,000 gallons of wine, or 50,000 gallons of spirits; (4) | ||||||
17 | shall not annually sell more than 232,500 gallons of its | ||||||
18 | beer to retail licensees and class 3 brewers and to | ||||||
19 | brewers, class 1 brewers, and class 2 brewers that, | ||||||
20 | pursuant to subsection (e) of Section 6-4 of this Act, | ||||||
21 | sell beer, cider, mead, or any combination thereof to | ||||||
22 | non-licensees at their breweries; and (5) has relinquished | ||||||
23 | any brew pub license held by the licensee, including any | ||||||
24 | ownership interest it held in the licensed brew pub. | ||||||
25 | (D) A self-distribution exemption holder shall | ||||||
26 | annually certify to the State Commission its manufacture |
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1 | of beer during the previous 12 months and its anticipated | ||||||
2 | manufacture and sales of beer for the next 12 months. The | ||||||
3 | State Commission may fine, suspend, or revoke a | ||||||
4 | self-distribution exemption after a hearing if it finds | ||||||
5 | that the exemption holder has made a material | ||||||
6 | misrepresentation in its application, violated a revenue | ||||||
7 | or alcoholic beverage law of Illinois, exceeded the | ||||||
8 | manufacture of 930,000 gallons of beer, 25,000 gallons of | ||||||
9 | wine, or 50,000 gallons of spirits in any calendar year or | ||||||
10 | became part of an affiliated group manufacturing more than | ||||||
11 | 930,000 gallons of beer, 25,000 gallons of wine, or 50,000 | ||||||
12 | gallons of spirits. | ||||||
13 | (E) The State Commission shall issue rules and | ||||||
14 | regulations governing self-distribution exemptions | ||||||
15 | consistent with this Act. | ||||||
16 | (F) Nothing in this paragraph (18) shall prohibit a | ||||||
17 | self-distribution exemption holder from entering into or | ||||||
18 | simultaneously having a distribution agreement with a | ||||||
19 | licensed Illinois importing distributor or a distributor. | ||||||
20 | If a self-distribution exemption holder enters into a | ||||||
21 | distribution agreement and has assigned distribution | ||||||
22 | rights to an importing distributor or distributor, then | ||||||
23 | the self-distribution exemption holder's distribution | ||||||
24 | rights in the assigned territories shall cease in a | ||||||
25 | reasonable time not to exceed 60 days. | ||||||
26 | (G) It is the intent of this paragraph (18) to promote |
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1 | and continue orderly markets. The General Assembly finds | ||||||
2 | that in order to preserve Illinois' regulatory | ||||||
3 | distribution system, it is necessary to create an | ||||||
4 | exception for smaller manufacturers in order to afford and | ||||||
5 | allow such smaller manufacturers of beer access to the | ||||||
6 | marketplace in order to develop a customer base without | ||||||
7 | impairing the integrity of the 3-tier system. | ||||||
8 | (19)(A) A class 1 craft distiller licensee or a | ||||||
9 | non-resident dealer who manufactures less than 50,000 | ||||||
10 | gallons of distilled spirits per year may make application | ||||||
11 | to the State Commission for a self-distribution exemption | ||||||
12 | to allow the sale of not more than 5,000 gallons of the | ||||||
13 | exemption holder's spirits to retail licensees per year. | ||||||
14 | (B) In the application, which shall be sworn under | ||||||
15 | penalty of perjury, the class 1 craft distiller licensee | ||||||
16 | or non-resident dealer shall state (1) the date it was | ||||||
17 | established; (2) its volume of spirits manufactured and | ||||||
18 | sold for each year since its establishment; (3) its | ||||||
19 | efforts to establish distributor relationships; (4) that a | ||||||
20 | self-distribution exemption is necessary to facilitate the | ||||||
21 | marketing of its spirits; and (5) that it will comply with | ||||||
22 | the alcoholic beverage and revenue laws of the United | ||||||
23 | States, this State, and any other state where it is | ||||||
24 | licensed. | ||||||
25 | (C) Any application submitted shall be posted on the | ||||||
26 | State Commission's website at least 45 days prior to |
| |||||||
| |||||||
1 | action by the State Commission. The State Commission shall | ||||||
2 | approve the application for a self-distribution exemption | ||||||
3 | if the applicant: (1) is in compliance with State revenue | ||||||
4 | and alcoholic beverage laws; (2) is not a member of any | ||||||
5 | affiliated group that produces more than 50,000 gallons of | ||||||
6 | spirits per annum, 930,000 gallons of beer per annum, or | ||||||
7 | 25,000 gallons of wine per annum; (3) does not annually | ||||||
8 | manufacture for sale more than 50,000 gallons of spirits, | ||||||
9 | 930,000 gallons of beer, or 25,000 gallons of wine; and | ||||||
10 | (4) does not annually sell more than 5,000 gallons of its | ||||||
11 | spirits to retail licensees. | ||||||
12 | (D) A self-distribution exemption holder shall | ||||||
13 | annually certify to the State Commission its manufacture | ||||||
14 | of spirits during the previous 12 months and its | ||||||
15 | anticipated manufacture and sales of spirits for the next | ||||||
16 | 12 months. The State Commission may fine, suspend, or | ||||||
17 | revoke a self-distribution exemption after a hearing if it | ||||||
18 | finds that the exemption holder has made a material | ||||||
19 | misrepresentation in its application, violated a revenue | ||||||
20 | or alcoholic beverage law of Illinois, exceeded the | ||||||
21 | manufacture of 50,000 gallons of spirits, 930,000 gallons | ||||||
22 | of beer, or 25,000 gallons of wine in any calendar year, or | ||||||
23 | has become part of an affiliated group manufacturing more | ||||||
24 | than 50,000 gallons of spirits, 930,000 gallons of beer, | ||||||
25 | or 25,000 gallons of wine. | ||||||
26 | (E) The State Commission shall adopt rules governing |
| |||||||
| |||||||
1 | self-distribution exemptions consistent with this Act. | ||||||
2 | (F) Nothing in this paragraph (19) shall prohibit a | ||||||
3 | self-distribution exemption holder from entering into or | ||||||
4 | simultaneously having a distribution agreement with a | ||||||
5 | licensed Illinois importing distributor or a distributor. | ||||||
6 | (G) It is the intent of this paragraph (19) to promote | ||||||
7 | and continue orderly markets. The General Assembly finds | ||||||
8 | that in order to preserve Illinois' regulatory | ||||||
9 | distribution system, it is necessary to create an | ||||||
10 | exception for smaller manufacturers in order to afford and | ||||||
11 | allow such smaller manufacturers of spirits access to the | ||||||
12 | marketplace in order to develop a customer base without | ||||||
13 | impairing the integrity of the 3-tier system. | ||||||
14 | (20)(A) A class 3 brewer licensee who must manufacture | ||||||
15 | less than 465,000 gallons of beer in the aggregate and not | ||||||
16 | more than 155,000 gallons at any single brewery premises | ||||||
17 | may make application to the State Commission for a | ||||||
18 | self-distribution exemption to allow the sale of not more | ||||||
19 | than 6,200 gallons of beer from each in-state or | ||||||
20 | out-of-state class 3 brewery premises, which shall not | ||||||
21 | exceed 18,600 gallons annually in the aggregate, that is | ||||||
22 | manufactured at a wholly owned class 3 brewer's in-state | ||||||
23 | or out-of-state licensed premises to retail licensees and | ||||||
24 | class 3 brewers and to brewers, class 1 brewers, class 2 | ||||||
25 | brewers that, pursuant to subsection (e) of Section 6-4, | ||||||
26 | sell beer, cider, or both beer and cider to non-licensees |
| |||||||
| |||||||
1 | at their licensed breweries. | ||||||
2 | (B) In the application, which shall be sworn under | ||||||
3 | penalty of perjury, the class 3 brewer licensee shall | ||||||
4 | state: | ||||||
5 | (1) the date it was established; | ||||||
6 | (2) its volume of beer manufactured and sold for | ||||||
7 | each year since its establishment; | ||||||
8 | (3) its efforts to establish distributor | ||||||
9 | relationships; | ||||||
10 | (4) that a self-distribution exemption is | ||||||
11 | necessary to facilitate the marketing of its beer; and | ||||||
12 | (5) that it will comply with the alcoholic | ||||||
13 | beverage and revenue laws of the United States, this | ||||||
14 | State, and any other state where it is licensed. | ||||||
15 | (C) Any application submitted shall be posted on the | ||||||
16 | State Commission's website at least 45 days before action | ||||||
17 | by the State Commission. The State Commission shall | ||||||
18 | approve the application for a self-distribution exemption | ||||||
19 | if the class 3 brewer licensee: (1) is in compliance with | ||||||
20 | the State, revenue, and alcoholic beverage laws; (2) is | ||||||
21 | not a member of any affiliated group that manufacturers, | ||||||
22 | directly or indirectly, more than 465,000 gallons of beer | ||||||
23 | per annum; (3) shall not annually manufacture for sale | ||||||
24 | more than 465,000 gallons of beer or more than 155,000 | ||||||
25 | gallons at any single brewery premises; and (4) shall not | ||||||
26 | annually sell more than 6,200 gallons of beer from each |
| |||||||
| |||||||
1 | in-state or out-of-state class 3 brewery premises, and | ||||||
2 | shall not exceed 18,600 gallons annually in the aggregate, | ||||||
3 | to retail licensees and class 3 brewers and to brewers, | ||||||
4 | class 1 brewers, and class 2 brewers that, pursuant to | ||||||
5 | subsection (e) of Section 6-4 of this Act, sell beer, | ||||||
6 | cider, or both beer and cider to non-licensees at their | ||||||
7 | breweries. | ||||||
8 | (D) A self-distribution exemption holder shall | ||||||
9 | annually certify to the State Commission its manufacture | ||||||
10 | of beer during the previous 12 months and its anticipated | ||||||
11 | manufacture and sales of beer for the next 12 months. The | ||||||
12 | State Commission may fine, suspend, or revoke a | ||||||
13 | self-distribution exemption after a hearing if it finds | ||||||
14 | that the exemption holder has made a material | ||||||
15 | misrepresentation in its application, violated a revenue | ||||||
16 | or alcoholic beverage law of Illinois, exceeded the | ||||||
17 | manufacture of 465,000 gallons of beer in any calendar | ||||||
18 | year or became part of an affiliated group manufacturing | ||||||
19 | more than 465,000 gallons of beer, or exceeded the sale to | ||||||
20 | retail licensees, brewers, class 1 brewers, class 2 | ||||||
21 | brewers, and class 3 brewers of 6,200 gallons per brewery | ||||||
22 | location or 18,600 gallons in the aggregate. | ||||||
23 | (E) The State Commission may adopt rules governing | ||||||
24 | self-distribution exemptions consistent with this Act. | ||||||
25 | (F) Nothing in this paragraph shall prohibit a | ||||||
26 | self-distribution exemption holder from entering into or |
| |||||||
| |||||||
1 | simultaneously having a distribution agreement with a | ||||||
2 | licensed Illinois importing distributor or a distributor. | ||||||
3 | If a self-distribution exemption holder enters into a | ||||||
4 | distribution agreement and has assigned distribution | ||||||
5 | rights to an importing distributor or distributor, then | ||||||
6 | the self-distribution exemption holder's distribution | ||||||
7 | rights in the assigned territories shall cease in a | ||||||
8 | reasonable time not to exceed 60 days. | ||||||
9 | (G) It is the intent of this paragraph to promote and | ||||||
10 | continue orderly markets. The General Assembly finds that | ||||||
11 | in order to preserve Illinois' regulatory distribution | ||||||
12 | system, it is necessary to create an exception for smaller | ||||||
13 | manufacturers in order to afford and allow such smaller | ||||||
14 | manufacturers of beer access to the marketplace in order | ||||||
15 | to develop a customer base without impairing the integrity | ||||||
16 | of the 3-tier system. | ||||||
17 | (b) On or before April 30, 1999, the Commission shall | ||||||
18 | present a written report to the Governor and the General | ||||||
19 | Assembly that shall be based on a study of the impact of Public | ||||||
20 | Act 90-739 on the business of soliciting, selling, and | ||||||
21 | shipping alcoholic liquor from outside of this State directly | ||||||
22 | to residents of this State. | ||||||
23 | As part of its report, the Commission shall provide the | ||||||
24 | following information: | ||||||
25 | (i) the amount of State excise and sales tax revenues | ||||||
26 | generated as a result of Public Act 90-739; |
| |||||||
| |||||||
1 | (ii) the amount of licensing fees received as a result | ||||||
2 | of Public Act 90-739; | ||||||
3 | (iii) the number of reported violations, the number of | ||||||
4 | cease and desist notices issued by the Commission, the | ||||||
5 | number of notices of violations issued to the Department | ||||||
6 | of Revenue, and the number of notices and complaints of | ||||||
7 | violations to law enforcement officials. | ||||||
8 | (Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19; | ||||||
9 | 101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff. | ||||||
10 | 8-20-21; 102-813, eff. 5-13-22.) | ||||||
11 | (235 ILCS 5/5-1) (from Ch. 43, par. 115) | ||||||
12 | Sec. 5-1. Licenses issued by the Illinois Liquor Control | ||||||
13 | Commission shall be of the following classes: | ||||||
14 | (a) Manufacturer's license - Class 1. Distiller, Class 2. | ||||||
15 | Rectifier, Class 3. Brewer, Class 4. First Class Wine | ||||||
16 | Manufacturer, Class 5. Second Class Wine Manufacturer, Class | ||||||
17 | 6. First Class Winemaker, Class 7. Second Class Winemaker, | ||||||
18 | Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller, | ||||||
19 | Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft | ||||||
20 | Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer, | ||||||
21 | Class 14. Class 3 Brewer, | ||||||
22 | (b) Distributor's license, | ||||||
23 | (c) Importing Distributor's license, | ||||||
24 | (d) Retailer's license, | ||||||
25 | (e) Special Event Retailer's license (not-for-profit), |
| |||||||
| |||||||
1 | (f) Railroad license, | ||||||
2 | (g) Boat license, | ||||||
3 | (h) Non-Beverage User's license, | ||||||
4 | (i) Wine-maker's premises license, | ||||||
5 | (j) Airplane license, | ||||||
6 | (k) Foreign importer's license, | ||||||
7 | (l) Broker's license, | ||||||
8 | (m) Non-resident dealer's license, | ||||||
9 | (n) Brew Pub license, | ||||||
10 | (o) Auction liquor license, | ||||||
11 | (p) Caterer retailer license, | ||||||
12 | (q) Special use permit license, | ||||||
13 | (r) Winery shipper's license, | ||||||
14 | (s) Craft distiller tasting permit, | ||||||
15 | (t) Brewer warehouse permit, | ||||||
16 | (u) Distilling pub license, | ||||||
17 | (v) Craft distiller warehouse permit, | ||||||
18 | (w) Beer showcase permit , . | ||||||
19 | (x) Distillery shipper's license. | ||||||
20 | No person, firm, partnership, corporation, or other legal | ||||||
21 | business entity that is engaged in the manufacturing of wine | ||||||
22 | may concurrently obtain and hold a wine-maker's license and a | ||||||
23 | wine manufacturer's license. | ||||||
24 | (a) A manufacturer's license shall allow the manufacture, | ||||||
25 | importation in bulk, storage, distribution and sale of | ||||||
26 | alcoholic liquor to persons without the State, as may be |
| |||||||
| |||||||
1 | permitted by law and to licensees in this State as follows: | ||||||
2 | Class 1. A Distiller may make sales and deliveries of | ||||||
3 | alcoholic liquor to distillers, rectifiers, importing | ||||||
4 | distributors, distributors and non-beverage users and to no | ||||||
5 | other licensees. | ||||||
6 | Class 2. A Rectifier, who is not a distiller, as defined | ||||||
7 | herein, may make sales and deliveries of alcoholic liquor to | ||||||
8 | rectifiers, importing distributors, distributors, retailers | ||||||
9 | and non-beverage users and to no other licensees. | ||||||
10 | Class 3. A Brewer may make sales and deliveries of beer to | ||||||
11 | importing distributors and distributors and may make sales as | ||||||
12 | authorized under subsection (e) of Section 6-4 of this Act, | ||||||
13 | including any alcoholic liquor that subsection (e) of Section | ||||||
14 | 6-4 authorizes a brewer to sell in its original package only to | ||||||
15 | a non-licensee for pick-up by a non-licensee either within the | ||||||
16 | interior of the brewery premises or at outside of the brewery | ||||||
17 | premises at a curb-side or parking lot adjacent to the brewery | ||||||
18 | premises, subject to any local ordinance. | ||||||
19 | Class 4. A first class wine-manufacturer may make sales | ||||||
20 | and deliveries of up to 50,000 gallons of wine to | ||||||
21 | manufacturers, importing distributors and distributors, and to | ||||||
22 | no other licensees. If a first-class wine-manufacturer | ||||||
23 | manufactures beer, it shall also obtain and shall only be | ||||||
24 | eligible for, in addition to any current license, a class 1 | ||||||
25 | brewer license, shall not manufacture more than 930,000 | ||||||
26 | gallons of beer per year, and shall not be a member of or |
| |||||||
| |||||||
1 | affiliated with, directly or indirectly, a manufacturer that | ||||||
2 | produces more than 930,000 gallons of beer per year. If the | ||||||
3 | first-class wine-manufacturer manufactures spirits, it shall | ||||||
4 | also obtain and shall only be eligible for, in addition to any | ||||||
5 | current license, a class 1 craft distiller license, shall not | ||||||
6 | manufacture more than 50,000 gallons of spirits per year, and | ||||||
7 | shall not be a member of or affiliated with, directly or | ||||||
8 | indirectly, a manufacturer that produces more than 50,000 | ||||||
9 | gallons of spirits per year. A first-class wine-manufacturer | ||||||
10 | shall be permitted to sell wine manufactured at the | ||||||
11 | first-class wine-manufacturer premises to non-licensees. | ||||||
12 | Class 5. A second class Wine manufacturer may make sales | ||||||
13 | and deliveries of more than 50,000 gallons of wine to | ||||||
14 | manufacturers, importing distributors and distributors and to | ||||||
15 | no other licensees. | ||||||
16 | Class 6. A first-class wine-maker's license shall allow | ||||||
17 | the manufacture of up to 50,000 gallons of wine per year, and | ||||||
18 | the storage and sale of such wine to distributors in the State | ||||||
19 | and to persons without the State, as may be permitted by law. A | ||||||
20 | person who, prior to June 1, 2008 (the effective date of Public | ||||||
21 | Act 95-634), is a holder of a first-class wine-maker's license | ||||||
22 | and annually produces more than 25,000 gallons of its own wine | ||||||
23 | and who distributes its wine to licensed retailers shall cease | ||||||
24 | this practice on or before July 1, 2008 in compliance with | ||||||
25 | Public Act 95-634. If a first-class wine-maker manufactures | ||||||
26 | beer, it shall also obtain and shall only be eligible for, in |
| |||||||
| |||||||
1 | addition to any current license, a class 1 brewer license, | ||||||
2 | shall not manufacture more than 930,000 gallons of beer per | ||||||
3 | year, and shall not be a member of or affiliated with, directly | ||||||
4 | or indirectly, a manufacturer that produces more than 930,000 | ||||||
5 | gallons of beer per year. If the first-class wine-maker | ||||||
6 | manufactures spirits, it shall also obtain and shall only be | ||||||
7 | eligible for, in addition to any current license, a class 1 | ||||||
8 | craft distiller license, shall not manufacture more than | ||||||
9 | 50,000 gallons of spirits per year, and shall not be a member | ||||||
10 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
11 | that produces more than 50,000 gallons of spirits per year. A | ||||||
12 | first-class wine-maker holding a class 1 brewer license or a | ||||||
13 | class 1 craft distiller license shall not be eligible for a | ||||||
14 | wine-maker's premises license but shall be permitted to sell | ||||||
15 | wine manufactured at the first-class wine-maker premises to | ||||||
16 | non-licensees. | ||||||
17 | Class 7. A second-class wine-maker's license shall allow | ||||||
18 | the manufacture of up to 150,000 gallons of wine per year, and | ||||||
19 | the storage and sale of such wine to distributors in this State | ||||||
20 | and to persons without the State, as may be permitted by law. A | ||||||
21 | person who, prior to June 1, 2008 (the effective date of Public | ||||||
22 | Act 95-634), is a holder of a second-class wine-maker's | ||||||
23 | license and annually produces more than 25,000 gallons of its | ||||||
24 | own wine and who distributes its wine to licensed retailers | ||||||
25 | shall cease this practice on or before July 1, 2008 in | ||||||
26 | compliance with Public Act 95-634. If a second-class |
| |||||||
| |||||||
1 | wine-maker manufactures beer, it shall also obtain and shall | ||||||
2 | only be eligible for, in addition to any current license, a | ||||||
3 | class 2 brewer license, shall not manufacture more than | ||||||
4 | 3,720,000 gallons of beer per year, and shall not be a member | ||||||
5 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
6 | that produces more than 3,720,000 gallons of beer per year. If | ||||||
7 | a second-class wine-maker manufactures spirits, it shall also | ||||||
8 | obtain and shall only be eligible for, in addition to any | ||||||
9 | current license, a class 2 craft distiller license, shall not | ||||||
10 | manufacture more than 100,000 gallons of spirits per year, and | ||||||
11 | shall not be a member of or affiliated with, directly or | ||||||
12 | indirectly, a manufacturer that produces more than 100,000 | ||||||
13 | gallons of spirits per year. | ||||||
14 | Class 8. A limited wine-manufacturer may make sales and | ||||||
15 | deliveries not to exceed 40,000 gallons of wine per year to | ||||||
16 | distributors, and to non-licensees in accordance with the | ||||||
17 | provisions of this Act. | ||||||
18 | Class 9. A craft distiller license, which may only be held | ||||||
19 | by a class 1 craft distiller licensee or class 2 craft | ||||||
20 | distiller licensee but not held by both a class 1 craft | ||||||
21 | distiller licensee and a class 2 craft distiller licensee, | ||||||
22 | shall grant all rights conveyed by either: (i) a class 1 craft | ||||||
23 | distiller license if the craft distiller holds a class 1 craft | ||||||
24 | distiller license; or (ii) a class 2 craft distiller licensee | ||||||
25 | if the craft distiller holds a class 2 craft distiller | ||||||
26 | license. |
| |||||||
| |||||||
1 | Class 10. A class 1 craft distiller license, which may | ||||||
2 | only be issued to a licensed craft distiller or licensed | ||||||
3 | non-resident dealer, shall allow the manufacture of up to | ||||||
4 | 50,000 gallons of spirits per year provided that the class 1 | ||||||
5 | craft distiller licensee does not manufacture more than a | ||||||
6 | combined 50,000 gallons of spirits per year and is not a member | ||||||
7 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
8 | that produces more than 50,000 gallons of spirits per year. If | ||||||
9 | a class 1 craft distiller manufactures beer, it shall also | ||||||
10 | obtain and shall only be eligible for, in addition to any | ||||||
11 | current license, a class 1 brewer license, shall not | ||||||
12 | manufacture more than 930,000 gallons of beer per year, and | ||||||
13 | shall not be a member of or affiliated with, directly or | ||||||
14 | indirectly, a manufacturer that produces more than 930,000 | ||||||
15 | gallons of beer per year. If a class 1 craft distiller | ||||||
16 | manufactures wine, it shall also obtain and shall only be | ||||||
17 | eligible for, in addition to any current license, a | ||||||
18 | first-class wine-manufacturer license or a first-class | ||||||
19 | wine-maker's license, shall not manufacture more than 50,000 | ||||||
20 | gallons of wine per year, and shall not be a member of or | ||||||
21 | affiliated with, directly or indirectly, a manufacturer that | ||||||
22 | produces more than 50,000 gallons of wine per year. A class 1 | ||||||
23 | craft distiller licensee may make sales and deliveries to | ||||||
24 | importing distributors and distributors and to retail | ||||||
25 | licensees in accordance with the conditions set forth in | ||||||
26 | paragraph (19) of subsection (a) of Section 3-12 of this Act. |
| |||||||
| |||||||
1 | However, the aggregate amount of spirits sold to non-licensees | ||||||
2 | and sold or delivered to retail licensees may not exceed 5,000 | ||||||
3 | gallons per year. | ||||||
4 | A class 1 craft distiller licensee may sell up to 5,000 | ||||||
5 | gallons of such spirits to non-licensees to the extent | ||||||
6 | permitted by any exemption approved by the State Commission | ||||||
7 | pursuant to Section 6-4 of this Act. A class 1 craft distiller | ||||||
8 | license holder may store such spirits at a non-contiguous | ||||||
9 | licensed location, but at no time shall a class 1 craft | ||||||
10 | distiller license holder directly or indirectly produce in the | ||||||
11 | aggregate more than 50,000 gallons of spirits per year. | ||||||
12 | A class 1 craft distiller licensee may hold more than one | ||||||
13 | class 1 craft distiller's license. However, a class 1 craft | ||||||
14 | distiller that holds more than one class 1 craft distiller | ||||||
15 | license shall not manufacture, in the aggregate, more than | ||||||
16 | 50,000 gallons of spirits by distillation per year and shall | ||||||
17 | not sell, in the aggregate, more than 5,000 gallons of such | ||||||
18 | spirits to non-licensees in accordance with an exemption | ||||||
19 | approved by the State Commission pursuant to Section 6-4 of | ||||||
20 | this Act. | ||||||
21 | Class 11. A class 2 craft distiller license, which may | ||||||
22 | only be issued to a licensed craft distiller or licensed | ||||||
23 | non-resident dealer, shall allow the manufacture of up to | ||||||
24 | 100,000 gallons of spirits per year provided that the class 2 | ||||||
25 | craft distiller licensee does not manufacture more than a | ||||||
26 | combined 100,000 gallons of spirits per year and is not a |
| |||||||
| |||||||
1 | member of or affiliated with, directly or indirectly, a | ||||||
2 | manufacturer that produces more than 100,000 gallons of | ||||||
3 | spirits per year. If a class 2 craft distiller manufactures | ||||||
4 | beer, it shall also obtain and shall only be eligible for, in | ||||||
5 | addition to any current license, a class 2 brewer license, | ||||||
6 | shall not manufacture more than 3,720,000 gallons of beer per | ||||||
7 | year, and shall not be a member of or affiliated with, directly | ||||||
8 | or indirectly, a manufacturer that produces more than | ||||||
9 | 3,720,000 gallons of beer per year. If a class 2 craft | ||||||
10 | distiller manufactures wine, it shall also obtain and shall | ||||||
11 | only be eligible for, in addition to any current license, a | ||||||
12 | second-class wine-maker's license, shall not manufacture more | ||||||
13 | than 150,000 gallons of wine per year, and shall not be a | ||||||
14 | member of or affiliated with, directly or indirectly, a | ||||||
15 | manufacturer that produces more than 150,000 gallons of wine | ||||||
16 | per year. A class 2 craft distiller licensee may make sales and | ||||||
17 | deliveries to importing distributors and distributors, but | ||||||
18 | shall not make sales or deliveries to any other licensee. If | ||||||
19 | the State Commission provides prior approval, a class 2 craft | ||||||
20 | distiller licensee may annually transfer up to 100,000 gallons | ||||||
21 | of spirits manufactured by that class 2 craft distiller | ||||||
22 | licensee to the premises of a licensed class 2 craft distiller | ||||||
23 | wholly owned and operated by the same licensee. A class 2 craft | ||||||
24 | distiller may transfer spirits to a distilling pub wholly | ||||||
25 | owned and operated by the class 2 craft distiller subject to | ||||||
26 | the following limitations and restrictions: (i) the transfer |
| |||||||
| |||||||
1 | shall not annually exceed more than 5,000 gallons; (ii) the | ||||||
2 | annual amount transferred shall reduce the distilling pub's | ||||||
3 | annual permitted production limit; (iii) all spirits | ||||||
4 | transferred shall be subject to Article VIII of this Act; (iv) | ||||||
5 | a written record shall be maintained by the distiller and | ||||||
6 | distilling pub specifying the amount, date of delivery, and | ||||||
7 | receipt of the product by the distilling pub; and (v) the | ||||||
8 | distilling pub shall be located no farther than 80 miles from | ||||||
9 | the class 2 craft distiller's licensed location. | ||||||
10 | A class 2 craft distiller shall, prior to transferring | ||||||
11 | spirits to a distilling pub wholly owned by the class 2 craft | ||||||
12 | distiller, furnish a written notice to the State Commission of | ||||||
13 | intent to transfer spirits setting forth the name and address | ||||||
14 | of the distilling pub and shall annually submit to the State | ||||||
15 | Commission a verified report identifying the total gallons of | ||||||
16 | spirits transferred to the distilling pub wholly owned by the | ||||||
17 | class 2 craft distiller. | ||||||
18 | A class 2 craft distiller license holder may store such | ||||||
19 | spirits at a non-contiguous licensed location, but at no time | ||||||
20 | shall a class 2 craft distiller license holder directly or | ||||||
21 | indirectly produce in the aggregate more than 100,000 gallons | ||||||
22 | of spirits per year. | ||||||
23 | Class 12. A class 1 brewer license, which may only be | ||||||
24 | issued to a licensed brewer or licensed non-resident dealer, | ||||||
25 | shall allow the manufacture of up to 930,000 gallons of beer | ||||||
26 | per year provided that the class 1 brewer licensee does not |
| |||||||
| |||||||
1 | manufacture more than a combined 930,000 gallons of beer per | ||||||
2 | year and is not a member of or affiliated with, directly or | ||||||
3 | indirectly, a manufacturer that produces more than 930,000 | ||||||
4 | gallons of beer per year. If a class 1 brewer manufactures | ||||||
5 | spirits, it shall also obtain and shall only be eligible for, | ||||||
6 | in addition to any current license, a class 1 craft distiller | ||||||
7 | license, shall not manufacture more than 50,000 gallons of | ||||||
8 | spirits per year, and shall not be a member of or affiliated | ||||||
9 | with, directly or indirectly, a manufacturer that produces | ||||||
10 | more than 50,000 gallons of spirits per year. If a class 1 | ||||||
11 | craft brewer manufactures wine, it shall also obtain and shall | ||||||
12 | only be eligible for, in addition to any current license, a | ||||||
13 | first-class wine-manufacturer license or a first-class | ||||||
14 | wine-maker's license, shall not manufacture more than 50,000 | ||||||
15 | gallons of wine per year, and shall not be a member of or | ||||||
16 | affiliated with, directly or indirectly, a manufacturer that | ||||||
17 | produces more than 50,000 gallons of wine per year. A class 1 | ||||||
18 | brewer licensee may make sales and deliveries to importing | ||||||
19 | distributors and distributors and to retail licensees in | ||||||
20 | accordance with the conditions set forth in paragraph (18) of | ||||||
21 | subsection (a) of Section 3-12 of this Act. If the State | ||||||
22 | Commission provides prior approval, a class 1 brewer may | ||||||
23 | annually transfer up to 930,000 gallons of beer manufactured | ||||||
24 | by that class 1 brewer to the premises of a licensed class 1 | ||||||
25 | brewer wholly owned and operated by the same licensee. | ||||||
26 | Class 13. A class 2 brewer license, which may only be |
| |||||||
| |||||||
1 | issued to a licensed brewer or licensed non-resident dealer, | ||||||
2 | shall allow the manufacture of up to 3,720,000 gallons of beer | ||||||
3 | per year provided that the class 2 brewer licensee does not | ||||||
4 | manufacture more than a combined 3,720,000 gallons of beer per | ||||||
5 | year and is not a member of or affiliated with, directly or | ||||||
6 | indirectly, a manufacturer that produces more than 3,720,000 | ||||||
7 | gallons of beer per year. If a class 2 brewer manufactures | ||||||
8 | spirits, it shall also obtain and shall only be eligible for, | ||||||
9 | in addition to any current license, a class 2 craft distiller | ||||||
10 | license, shall not manufacture more than 100,000 gallons of | ||||||
11 | spirits per year, and shall not be a member of or affiliated | ||||||
12 | with, directly or indirectly, a manufacturer that produces | ||||||
13 | more than 100,000 gallons of spirits per year. If a class 2 | ||||||
14 | craft distiller manufactures wine, it shall also obtain and | ||||||
15 | shall only be eligible for, in addition to any current | ||||||
16 | license, a second-class wine-maker's license, shall not | ||||||
17 | manufacture more than 150,000 gallons of wine per year, and | ||||||
18 | shall not be a member of or affiliated with, directly or | ||||||
19 | indirectly, a manufacturer that produces more than 150,000 | ||||||
20 | gallons of wine a year. A class 2 brewer licensee may make | ||||||
21 | sales and deliveries to importing distributors and | ||||||
22 | distributors, but shall not make sales or deliveries to any | ||||||
23 | other licensee. If the State Commission provides prior | ||||||
24 | approval, a class 2 brewer licensee may annually transfer up | ||||||
25 | to 3,720,000 gallons of beer manufactured by that class 2 | ||||||
26 | brewer licensee to the premises of a licensed class 2 brewer |
| |||||||
| |||||||
1 | wholly owned and operated by the same licensee. | ||||||
2 | A class 2 brewer may transfer beer to a brew pub wholly | ||||||
3 | owned and operated by the class 2 brewer subject to the | ||||||
4 | following limitations and restrictions: (i) the transfer shall | ||||||
5 | not annually exceed more than 31,000 gallons; (ii) the annual | ||||||
6 | amount transferred shall reduce the brew pub's annual | ||||||
7 | permitted production limit; (iii) all beer transferred shall | ||||||
8 | be subject to Article VIII of this Act; (iv) a written record | ||||||
9 | shall be maintained by the brewer and brew pub specifying the | ||||||
10 | amount, date of delivery, and receipt of the product by the | ||||||
11 | brew pub; and (v) the brew pub shall be located no farther than | ||||||
12 | 80 miles from the class 2 brewer's licensed location. | ||||||
13 | A class 2 brewer shall, prior to transferring beer to a | ||||||
14 | brew pub wholly owned by the class 2 brewer, furnish a written | ||||||
15 | notice to the State Commission of intent to transfer beer | ||||||
16 | setting forth the name and address of the brew pub and shall | ||||||
17 | annually submit to the State Commission a verified report | ||||||
18 | identifying the total gallons of beer transferred to the brew | ||||||
19 | pub wholly owned by the class 2 brewer. | ||||||
20 | Class 14. A class 3 brewer license, which may be issued to | ||||||
21 | a brewer or a non-resident dealer, shall allow the manufacture | ||||||
22 | of no more than 465,000 gallons of beer per year and no more | ||||||
23 | than 155,000 gallons at a single brewery premises, and shall | ||||||
24 | allow the sale of no more than 6,200 gallons of beer from each | ||||||
25 | in-state or out-of-state class 3 brewery premises, or 18,600 | ||||||
26 | gallons in the aggregate, to retail licensees, class 1 |
| |||||||
| |||||||
1 | brewers, class 2 brewers, and class 3 brewers as long as the | ||||||
2 | class 3 brewer licensee does not manufacture more than a | ||||||
3 | combined 465,000 gallons of beer per year and is not a member | ||||||
4 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
5 | that produces more than 465,000 gallons of beer per year to | ||||||
6 | make sales to importing distributors, distributors, retail | ||||||
7 | licensees, brewers, class 1 brewers, class 2 brewers, and | ||||||
8 | class 3 brewers in accordance with the conditions set forth in | ||||||
9 | paragraph (20) of subsection (a) of Section 3-12. If the State | ||||||
10 | Commission provides prior approval, a class 3 brewer may | ||||||
11 | annually transfer up to 155,000 gallons of beer manufactured | ||||||
12 | by that class 3 brewer to the premises of a licensed class 3 | ||||||
13 | brewer wholly owned and operated by the same licensee. A class | ||||||
14 | 3 brewer shall manufacture beer at the brewer's class 3 | ||||||
15 | designated licensed premises, and may sell beer as otherwise | ||||||
16 | provided in this Act. | ||||||
17 | (a-1) A manufacturer which is licensed in this State to | ||||||
18 | make sales or deliveries of alcoholic liquor to licensed | ||||||
19 | distributors or importing distributors and which enlists | ||||||
20 | agents, representatives, or individuals acting on its behalf | ||||||
21 | who contact licensed retailers on a regular and continual | ||||||
22 | basis in this State must register those agents, | ||||||
23 | representatives, or persons acting on its behalf with the | ||||||
24 | State Commission. | ||||||
25 | Registration of agents, representatives, or persons acting | ||||||
26 | on behalf of a manufacturer is fulfilled by submitting a form |
| |||||||
| |||||||
1 | to the Commission. The form shall be developed by the | ||||||
2 | Commission and shall include the name and address of the | ||||||
3 | applicant, the name and address of the manufacturer he or she | ||||||
4 | represents, the territory or areas assigned to sell to or | ||||||
5 | discuss pricing terms of alcoholic liquor, and any other | ||||||
6 | questions deemed appropriate and necessary. All statements in | ||||||
7 | the forms required to be made by law or by rule shall be deemed | ||||||
8 | material, and any person who knowingly misstates any material | ||||||
9 | fact under oath in an application is guilty of a Class B | ||||||
10 | misdemeanor. Fraud, misrepresentation, false statements, | ||||||
11 | misleading statements, evasions, or suppression of material | ||||||
12 | facts in the securing of a registration are grounds for | ||||||
13 | suspension or revocation of the registration. The State | ||||||
14 | Commission shall post a list of registered agents on the | ||||||
15 | Commission's website. | ||||||
16 | (b) A distributor's license shall allow (i) the wholesale | ||||||
17 | purchase and storage of alcoholic liquors and sale of | ||||||
18 | alcoholic liquors to licensees in this State and to persons | ||||||
19 | without the State, as may be permitted by law; (ii) the sale of | ||||||
20 | beer, cider, mead, or any combination thereof to brewers, | ||||||
21 | class 1 brewers, and class 2 brewers that, pursuant to | ||||||
22 | subsection (e) of Section 6-4 of this Act, sell beer, cider, | ||||||
23 | mead, or any combination thereof to non-licensees at their | ||||||
24 | breweries; (iii) the sale of vermouth to class 1 craft | ||||||
25 | distillers and class 2 craft distillers that, pursuant to | ||||||
26 | subsection (e) of Section 6-4 of this Act, sell spirits, |
| |||||||
| |||||||
1 | vermouth, or both spirits and vermouth to non-licensees at | ||||||
2 | their distilleries; or (iv) as otherwise provided in this Act. | ||||||
3 | No person licensed as a distributor shall be granted a | ||||||
4 | non-resident dealer's license. | ||||||
5 | (c) An importing distributor's license may be issued to | ||||||
6 | and held by those only who are duly licensed distributors, | ||||||
7 | upon the filing of an application by a duly licensed | ||||||
8 | distributor, with the Commission and the Commission shall, | ||||||
9 | without the payment of any fee, immediately issue such | ||||||
10 | importing distributor's license to the applicant, which shall | ||||||
11 | allow the importation of alcoholic liquor by the licensee into | ||||||
12 | this State from any point in the United States outside this | ||||||
13 | State, and the purchase of alcoholic liquor in barrels, casks | ||||||
14 | or other bulk containers and the bottling of such alcoholic | ||||||
15 | liquors before resale thereof, but all bottles or containers | ||||||
16 | so filled shall be sealed, labeled, stamped and otherwise made | ||||||
17 | to comply with all provisions, rules and regulations governing | ||||||
18 | manufacturers in the preparation and bottling of alcoholic | ||||||
19 | liquors. The importing distributor's license shall permit such | ||||||
20 | licensee to purchase alcoholic liquor from Illinois licensed | ||||||
21 | non-resident dealers and foreign importers only. No person | ||||||
22 | licensed as an importing distributor shall be granted a | ||||||
23 | non-resident dealer's license. | ||||||
24 | (d) A retailer's license shall allow the licensee to sell | ||||||
25 | and offer for sale at retail, only in the premises specified in | ||||||
26 | the license, alcoholic liquor for use or consumption, but not |
| |||||||
| |||||||
1 | for resale in any form. Except as provided in Section 6-16, | ||||||
2 | 6-29, or 6-29.1, nothing in this Act shall deny, limit, | ||||||
3 | remove, or restrict the ability of a holder of a retailer's | ||||||
4 | license to transfer or ship alcoholic liquor to the purchaser | ||||||
5 | for use or consumption subject to any applicable local law or | ||||||
6 | ordinance. For the purposes of this Section, "shipping" means | ||||||
7 | the movement of alcoholic liquor from a licensed retailer to a | ||||||
8 | consumer via a common carrier. Except as provided in Section | ||||||
9 | 6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit, | ||||||
10 | remove, or restrict the ability of a holder of a retailer's | ||||||
11 | license to deliver alcoholic liquor to the purchaser for use | ||||||
12 | or consumption. The delivery shall be made only within 12 | ||||||
13 | hours from the time the alcoholic liquor leaves the licensed | ||||||
14 | premises of the retailer for delivery. For the purposes of | ||||||
15 | this Section, "delivery" means the movement of alcoholic | ||||||
16 | liquor purchased from a licensed retailer to a consumer | ||||||
17 | through the following methods: | ||||||
18 | (1) delivery within licensed retailer's parking lot, | ||||||
19 | including curbside, for pickup by the consumer; | ||||||
20 | (2) delivery by an owner, officer, director, | ||||||
21 | shareholder, or employee of the licensed retailer; or | ||||||
22 | (3) delivery by a third-party contractor, independent | ||||||
23 | contractor, or agent with whom the licensed retailer has | ||||||
24 | contracted to make deliveries of alcoholic liquors. | ||||||
25 | Under subsection (1), (2), or (3), delivery shall not | ||||||
26 | include the use of common carriers. |
| |||||||
| |||||||
1 | Any retail license issued to a manufacturer shall only | ||||||
2 | permit the manufacturer to sell beer at retail on the premises | ||||||
3 | actually occupied by the manufacturer. For the purpose of | ||||||
4 | further describing the type of business conducted at a retail | ||||||
5 | licensed premises, a retailer's licensee may be designated by | ||||||
6 | the State Commission as (i) an on premise consumption | ||||||
7 | retailer, (ii) an off premise sale retailer, or (iii) a | ||||||
8 | combined on premise consumption and off premise sale retailer. | ||||||
9 | Except for a municipality with a population of more than | ||||||
10 | 1,000,000 inhabitants, a home rule unit may not regulate the | ||||||
11 | delivery of alcoholic liquor inconsistent with this | ||||||
12 | subsection. This paragraph is a limitation under subsection | ||||||
13 | (i) of Section 6 of Article VII of the Illinois Constitution on | ||||||
14 | the concurrent exercise by home rule units of powers and | ||||||
15 | functions exercised by the State. A non-home rule municipality | ||||||
16 | may not regulate the delivery of alcoholic liquor inconsistent | ||||||
17 | with this subsection. | ||||||
18 | Notwithstanding any other provision of this subsection | ||||||
19 | (d), a retail licensee may sell alcoholic liquors to a special | ||||||
20 | event retailer licensee for resale to the extent permitted | ||||||
21 | under subsection (e). | ||||||
22 | (e) A special event retailer's license (not-for-profit) | ||||||
23 | shall permit the licensee to purchase alcoholic liquors from | ||||||
24 | an Illinois licensed distributor (unless the licensee | ||||||
25 | purchases less than $500 of alcoholic liquors for the special | ||||||
26 | event, in which case the licensee may purchase the alcoholic |
| |||||||
| |||||||
1 | liquors from a licensed retailer) and shall allow the licensee | ||||||
2 | to sell and offer for sale, at retail, alcoholic liquors for | ||||||
3 | use or consumption, but not for resale in any form and only at | ||||||
4 | the location and on the specific dates designated for the | ||||||
5 | special event in the license. An applicant for a special event | ||||||
6 | retailer license must (i) furnish with the application: (A) a | ||||||
7 | resale number issued under Section 2c of the Retailers' | ||||||
8 | Occupation Tax Act or evidence that the applicant is | ||||||
9 | registered under Section 2a of the Retailers' Occupation Tax | ||||||
10 | Act, (B) a current, valid exemption identification number | ||||||
11 | issued under Section 1g of the Retailers' Occupation Tax Act, | ||||||
12 | and a certification to the Commission that the purchase of | ||||||
13 | alcoholic liquors will be a tax-exempt purchase, or (C) a | ||||||
14 | statement that the applicant is not registered under Section | ||||||
15 | 2a of the Retailers' Occupation Tax Act, does not hold a resale | ||||||
16 | number under Section 2c of the Retailers' Occupation Tax Act, | ||||||
17 | and does not hold an exemption number under Section 1g of the | ||||||
18 | Retailers' Occupation Tax Act, in which event the Commission | ||||||
19 | shall set forth on the special event retailer's license a | ||||||
20 | statement to that effect; (ii) submit with the application | ||||||
21 | proof satisfactory to the State Commission that the applicant | ||||||
22 | will provide dram shop liability insurance in the maximum | ||||||
23 | limits; and (iii) show proof satisfactory to the State | ||||||
24 | Commission that the applicant has obtained local authority | ||||||
25 | approval. | ||||||
26 | Nothing in this Act prohibits an Illinois licensed |
| |||||||
| |||||||
1 | distributor from offering credit or a refund for unused, | ||||||
2 | salable alcoholic liquors to a holder of a special event | ||||||
3 | retailer's license or the special event retailer's licensee | ||||||
4 | from accepting the credit or refund of alcoholic liquors at | ||||||
5 | the conclusion of the event specified in the license. | ||||||
6 | (f) A railroad license shall permit the licensee to import | ||||||
7 | alcoholic liquors into this State from any point in the United | ||||||
8 | States outside this State and to store such alcoholic liquors | ||||||
9 | in this State; to make wholesale purchases of alcoholic | ||||||
10 | liquors directly from manufacturers, foreign importers, | ||||||
11 | distributors and importing distributors from within or outside | ||||||
12 | this State; and to store such alcoholic liquors in this State; | ||||||
13 | provided that the above powers may be exercised only in | ||||||
14 | connection with the importation, purchase or storage of | ||||||
15 | alcoholic liquors to be sold or dispensed on a club, buffet, | ||||||
16 | lounge or dining car operated on an electric, gas or steam | ||||||
17 | railway in this State; and provided further, that railroad | ||||||
18 | licensees exercising the above powers shall be subject to all | ||||||
19 | provisions of Article VIII of this Act as applied to importing | ||||||
20 | distributors. A railroad license shall also permit the | ||||||
21 | licensee to sell or dispense alcoholic liquors on any club, | ||||||
22 | buffet, lounge or dining car operated on an electric, gas or | ||||||
23 | steam railway regularly operated by a common carrier in this | ||||||
24 | State, but shall not permit the sale for resale of any | ||||||
25 | alcoholic liquors to any licensee within this State. A license | ||||||
26 | shall be obtained for each car in which such sales are made. |
| |||||||
| |||||||
1 | (g) A boat license shall allow the sale of alcoholic | ||||||
2 | liquor in individual drinks, on any passenger boat regularly | ||||||
3 | operated as a common carrier on navigable waters in this State | ||||||
4 | or on any riverboat operated under the Illinois Gambling Act, | ||||||
5 | which boat or riverboat maintains a public dining room or | ||||||
6 | restaurant thereon. | ||||||
7 | (h) A non-beverage user's license shall allow the licensee | ||||||
8 | to purchase alcoholic liquor from a licensed manufacturer or | ||||||
9 | importing distributor, without the imposition of any tax upon | ||||||
10 | the business of such licensed manufacturer or importing | ||||||
11 | distributor as to such alcoholic liquor to be used by such | ||||||
12 | licensee solely for the non-beverage purposes set forth in | ||||||
13 | subsection (a) of Section 8-1 of this Act, and such licenses | ||||||
14 | shall be divided and classified and shall permit the purchase, | ||||||
15 | possession and use of limited and stated quantities of | ||||||
16 | alcoholic liquor as follows: | ||||||
17 | Class 1, not to exceed ......................... 500 gallons
| ||||||
18 | Class 2, not to exceed ....................... 1,000 gallons
| ||||||
19 | Class 3, not to exceed ....................... 5,000 gallons
| ||||||
20 | Class 4, not to exceed ...................... 10,000 gallons
| ||||||
21 | Class 5, not to exceed ....................... 50,000 gallons | ||||||
22 | (i) A wine-maker's premises license shall allow a licensee | ||||||
23 | that concurrently holds a first-class wine-maker's license to | ||||||
24 | sell and offer for sale at retail in the premises specified in | ||||||
25 | such license not more than 50,000 gallons of the first-class | ||||||
26 | wine-maker's wine that is made at the first-class wine-maker's |
| |||||||
| |||||||
1 | licensed premises per year for use or consumption, but not for | ||||||
2 | resale in any form. A wine-maker's premises license shall | ||||||
3 | allow a licensee who concurrently holds a second-class | ||||||
4 | wine-maker's license to sell and offer for sale at retail in | ||||||
5 | the premises specified in such license up to 100,000 gallons | ||||||
6 | of the second-class wine-maker's wine that is made at the | ||||||
7 | second-class wine-maker's licensed premises per year for use | ||||||
8 | or consumption but not for resale in any form. A first-class | ||||||
9 | wine-maker that concurrently holds a class 1 brewer license or | ||||||
10 | a class 1 craft distiller license shall not be eligible to hold | ||||||
11 | a wine-maker's premises license. A wine-maker's premises | ||||||
12 | license shall allow a licensee that concurrently holds a | ||||||
13 | first-class wine-maker's license or a second-class | ||||||
14 | wine-maker's license to sell and offer for sale at retail at | ||||||
15 | the premises specified in the wine-maker's premises license, | ||||||
16 | for use or consumption but not for resale in any form, any | ||||||
17 | beer, wine, and spirits purchased from a licensed distributor. | ||||||
18 | Upon approval from the State Commission, a wine-maker's | ||||||
19 | premises license shall allow the licensee to sell and offer | ||||||
20 | for sale at (i) the wine-maker's licensed premises and (ii) at | ||||||
21 | up to 2 additional locations for use and consumption and not | ||||||
22 | for resale. Each location shall require additional licensing | ||||||
23 | per location as specified in Section 5-3 of this Act. A | ||||||
24 | wine-maker's premises licensee shall secure liquor liability | ||||||
25 | insurance coverage in an amount at least equal to the maximum | ||||||
26 | liability amounts set forth in subsection (a) of Section 6-21 |
| |||||||
| |||||||
1 | of this Act. | ||||||
2 | (j) An airplane license shall permit the licensee to | ||||||
3 | import alcoholic liquors into this State from any point in the | ||||||
4 | United States outside this State and to store such alcoholic | ||||||
5 | liquors in this State; to make wholesale purchases of | ||||||
6 | alcoholic liquors directly from manufacturers, foreign | ||||||
7 | importers, distributors and importing distributors from within | ||||||
8 | or outside this State; and to store such alcoholic liquors in | ||||||
9 | this State; provided that the above powers may be exercised | ||||||
10 | only in connection with the importation, purchase or storage | ||||||
11 | of alcoholic liquors to be sold or dispensed on an airplane; | ||||||
12 | and provided further, that airplane licensees exercising the | ||||||
13 | above powers shall be subject to all provisions of Article | ||||||
14 | VIII of this Act as applied to importing distributors. An | ||||||
15 | airplane licensee shall also permit the sale or dispensing of | ||||||
16 | alcoholic liquors on any passenger airplane regularly operated | ||||||
17 | by a common carrier in this State, but shall not permit the | ||||||
18 | sale for resale of any alcoholic liquors to any licensee | ||||||
19 | within this State. A single airplane license shall be required | ||||||
20 | of an airline company if liquor service is provided on board | ||||||
21 | aircraft in this State. The annual fee for such license shall | ||||||
22 | be as determined in Section 5-3. | ||||||
23 | (k) A foreign importer's license shall permit such | ||||||
24 | licensee to purchase alcoholic liquor from Illinois licensed | ||||||
25 | non-resident dealers only, and to import alcoholic liquor | ||||||
26 | other than in bulk from any point outside the United States and |
| |||||||
| |||||||
1 | to sell such alcoholic liquor to Illinois licensed importing | ||||||
2 | distributors and to no one else in Illinois; provided that (i) | ||||||
3 | the foreign importer registers with the State Commission every | ||||||
4 | brand of alcoholic liquor that it proposes to sell to Illinois | ||||||
5 | licensees during the license period, (ii) the foreign importer | ||||||
6 | complies with all of the provisions of Section 6-9 of this Act | ||||||
7 | with respect to registration of such Illinois licensees as may | ||||||
8 | be granted the right to sell such brands at wholesale, and | ||||||
9 | (iii) the foreign importer complies with the provisions of | ||||||
10 | Sections 6-5 and 6-6 of this Act to the same extent that these | ||||||
11 | provisions apply to manufacturers. | ||||||
12 | (l) (i) A broker's license shall be required of all | ||||||
13 | persons who solicit orders for, offer to sell or offer to | ||||||
14 | supply alcoholic liquor to retailers in the State of Illinois, | ||||||
15 | or who offer to retailers to ship or cause to be shipped or to | ||||||
16 | make contact with distillers, craft distillers, rectifiers, | ||||||
17 | brewers or manufacturers or any other party within or without | ||||||
18 | the State of Illinois in order that alcoholic liquors be | ||||||
19 | shipped to a distributor, importing distributor or foreign | ||||||
20 | importer, whether such solicitation or offer is consummated | ||||||
21 | within or without the State of Illinois. | ||||||
22 | No holder of a retailer's license issued by the Illinois | ||||||
23 | Liquor Control Commission shall purchase or receive any | ||||||
24 | alcoholic liquor, the order for which was solicited or offered | ||||||
25 | for sale to such retailer by a broker unless the broker is the | ||||||
26 | holder of a valid broker's license. |
| |||||||
| |||||||
1 | The broker shall, upon the acceptance by a retailer of the | ||||||
2 | broker's solicitation of an order or offer to sell or supply or | ||||||
3 | deliver or have delivered alcoholic liquors, promptly forward | ||||||
4 | to the Illinois Liquor Control Commission a notification of | ||||||
5 | said transaction in such form as the Commission may by | ||||||
6 | regulations prescribe. | ||||||
7 | (ii) A broker's license shall be required of a person | ||||||
8 | within this State, other than a retail licensee, who, for a fee | ||||||
9 | or commission, promotes, solicits, or accepts orders for | ||||||
10 | alcoholic liquor, for use or consumption and not for resale, | ||||||
11 | to be shipped from this State and delivered to residents | ||||||
12 | outside of this State by an express company, common carrier, | ||||||
13 | or contract carrier. This Section does not apply to any person | ||||||
14 | who promotes, solicits, or accepts orders for wine as | ||||||
15 | specifically authorized in Section 6-29 of this Act. | ||||||
16 | A broker's license under this subsection (l) shall not | ||||||
17 | entitle the holder to buy or sell any alcoholic liquors for his | ||||||
18 | own account or to take or deliver title to such alcoholic | ||||||
19 | liquors. | ||||||
20 | This subsection (l) shall not apply to distributors, | ||||||
21 | employees of distributors, or employees of a manufacturer who | ||||||
22 | has registered the trademark, brand or name of the alcoholic | ||||||
23 | liquor pursuant to Section 6-9 of this Act, and who regularly | ||||||
24 | sells such alcoholic liquor in the State of Illinois only to | ||||||
25 | its registrants thereunder. | ||||||
26 | Any agent, representative, or person subject to |
| |||||||
| |||||||
1 | registration pursuant to subsection (a-1) of this Section | ||||||
2 | shall not be eligible to receive a broker's license. | ||||||
3 | (m) A non-resident dealer's license shall permit such | ||||||
4 | licensee to ship into and warehouse alcoholic liquor into this | ||||||
5 | State from any point outside of this State, and to sell such | ||||||
6 | alcoholic liquor to Illinois licensed foreign importers and | ||||||
7 | importing distributors and to no one else in this State; | ||||||
8 | provided that (i) said non-resident dealer shall register with | ||||||
9 | the Illinois Liquor Control Commission each and every brand of | ||||||
10 | alcoholic liquor which it proposes to sell to Illinois | ||||||
11 | licensees during the license period, (ii) it shall comply with | ||||||
12 | all of the provisions of Section 6-9 hereof with respect to | ||||||
13 | registration of such Illinois licensees as may be granted the | ||||||
14 | right to sell such brands at wholesale by duly filing such | ||||||
15 | registration statement, thereby authorizing the non-resident | ||||||
16 | dealer to proceed to sell such brands at wholesale, and (iii) | ||||||
17 | the non-resident dealer shall comply with the provisions of | ||||||
18 | Sections 6-5 and 6-6 of this Act to the same extent that these | ||||||
19 | provisions apply to manufacturers. No person licensed as a | ||||||
20 | non-resident dealer shall be granted a distributor's or | ||||||
21 | importing distributor's license. | ||||||
22 | (n) A brew pub license shall allow the licensee to only (i) | ||||||
23 | manufacture up to 155,000 gallons of beer per year only on the | ||||||
24 | premises specified in the license, (ii) make sales of the beer | ||||||
25 | manufactured on the premises or, with the approval of the | ||||||
26 | Commission, beer manufactured on another brew pub licensed |
| |||||||
| |||||||
1 | premises that is wholly owned and operated by the same | ||||||
2 | licensee to importing distributors, distributors, and to | ||||||
3 | non-licensees for use and consumption, (iii) store the beer | ||||||
4 | upon the premises, (iv) sell and offer for sale at retail from | ||||||
5 | the licensed premises for off-premises consumption no more | ||||||
6 | than 155,000 gallons per year so long as such sales are only | ||||||
7 | made in-person, (v) sell and offer for sale at retail for use | ||||||
8 | and consumption on the premises specified in the license any | ||||||
9 | form of alcoholic liquor purchased from a licensed distributor | ||||||
10 | or importing distributor, (vi) with the prior approval of the | ||||||
11 | Commission, annually transfer no more than 155,000 gallons of | ||||||
12 | beer manufactured on the premises to a licensed brew pub | ||||||
13 | wholly owned and operated by the same licensee, and (vii) | ||||||
14 | notwithstanding item (i) of this subsection, brew pubs wholly | ||||||
15 | owned and operated by the same licensee may combine each | ||||||
16 | location's production limit of 155,000 gallons of beer per | ||||||
17 | year and allocate the aggregate total between the wholly | ||||||
18 | owned, operated, and licensed locations. | ||||||
19 | A brew pub licensee shall not under any circumstance sell | ||||||
20 | or offer for sale beer manufactured by the brew pub licensee to | ||||||
21 | retail licensees. | ||||||
22 | A person who holds a class 2 brewer license may | ||||||
23 | simultaneously hold a brew pub license if the class 2 brewer | ||||||
24 | (i) does not, under any circumstance, sell or offer for sale | ||||||
25 | beer manufactured by the class 2 brewer to retail licensees; | ||||||
26 | (ii) does not hold more than 3 brew pub licenses in this State; |
| |||||||
| |||||||
1 | (iii) does not manufacture more than a combined 3,720,000 | ||||||
2 | gallons of beer per year, including the beer manufactured at | ||||||
3 | the brew pub; and (iv) is not a member of or affiliated with, | ||||||
4 | directly or indirectly, a manufacturer that produces more than | ||||||
5 | 3,720,000 gallons of beer per year or any other alcoholic | ||||||
6 | liquor. | ||||||
7 | Notwithstanding any other provision of this Act, a | ||||||
8 | licensed brewer, class 2 brewer, or non-resident dealer who | ||||||
9 | before July 1, 2015 manufactured less than 3,720,000 gallons | ||||||
10 | of beer per year and held a brew pub license on or before July | ||||||
11 | 1, 2015 may (i) continue to qualify for and hold that brew pub | ||||||
12 | license for the licensed premises and (ii) manufacture more | ||||||
13 | than 3,720,000 gallons of beer per year and continue to | ||||||
14 | qualify for and hold that brew pub license if that brewer, | ||||||
15 | class 2 brewer, or non-resident dealer does not simultaneously | ||||||
16 | hold a class 1 brewer license and is not a member of or | ||||||
17 | affiliated with, directly or indirectly, a manufacturer that | ||||||
18 | produces more than 3,720,000 gallons of beer per year or that | ||||||
19 | produces any other alcoholic liquor. | ||||||
20 | A brew pub licensee may apply for a class 3 brewer license | ||||||
21 | and, upon meeting all applicable qualifications of this Act | ||||||
22 | and relinquishing all commonly owned brew pub or retail | ||||||
23 | licenses, shall be issued a class 3 brewer license. Nothing in | ||||||
24 | this Act shall prohibit the issuance of a class 3 brewer | ||||||
25 | license if the applicant: | ||||||
26 | (1) has a valid retail license on or before May 1, |
| |||||||
| |||||||
1 | 2021; | ||||||
2 | (2) has an ownership interest in at least two brew | ||||||
3 | pubs licenses on or before May 1, 2021; | ||||||
4 | (3) the brew pub licensee applies for a class 3 brewer | ||||||
5 | license on or before October 1, 2022 and relinquishes all | ||||||
6 | commonly owned brew pub licenses; and | ||||||
7 | (4) relinquishes all commonly owned retail licenses on | ||||||
8 | or before December 31, 2022. | ||||||
9 | If a brew pub licensee is issued a class 3 brewer license, | ||||||
10 | the class 3 brewer license shall expire on the same date as the | ||||||
11 | existing brew pub license and the State Commission shall not | ||||||
12 | require a class 3 brewer licensee to obtain a brewer license, | ||||||
13 | or in the alternative to pay a fee for a brewer license, until | ||||||
14 | the date the brew pub license of the applicant would have | ||||||
15 | expired. | ||||||
16 | (o) A caterer retailer license shall allow the holder to | ||||||
17 | serve alcoholic liquors as an incidental part of a food | ||||||
18 | service that serves prepared meals which excludes the serving | ||||||
19 | of snacks as the primary meal, either on or off-site whether | ||||||
20 | licensed or unlicensed. A caterer retailer license shall allow | ||||||
21 | the holder, a distributor, or an importing distributor to | ||||||
22 | transfer any inventory to and from the holder's retail | ||||||
23 | premises and shall allow the holder to purchase alcoholic | ||||||
24 | liquor from a distributor or importing distributor to be | ||||||
25 | delivered directly to an off-site event. | ||||||
26 | Nothing in this Act prohibits a distributor or importing |
| |||||||
| |||||||
1 | distributor from offering credit or a refund for unused, | ||||||
2 | salable beer to a holder of a caterer retailer license or a | ||||||
3 | caterer retailer licensee from accepting a credit or refund | ||||||
4 | for unused, salable beer, in the event an act of God is the | ||||||
5 | sole reason an off-site event is cancelled and if: (i) the | ||||||
6 | holder of a caterer retailer license has not transferred | ||||||
7 | alcoholic liquor from its caterer retailer premises to an | ||||||
8 | off-site location; (ii) the distributor or importing | ||||||
9 | distributor offers the credit or refund for the unused, | ||||||
10 | salable beer that it delivered to the off-site premises and | ||||||
11 | not for any unused, salable beer that the distributor or | ||||||
12 | importing distributor delivered to the caterer retailer's | ||||||
13 | premises; and (iii) the unused, salable beer would likely | ||||||
14 | spoil if transferred to the caterer retailer's premises. A | ||||||
15 | caterer retailer license shall allow the holder to transfer | ||||||
16 | any inventory from any off-site location to its caterer | ||||||
17 | retailer premises at the conclusion of an off-site event or | ||||||
18 | engage a distributor or importing distributor to transfer any | ||||||
19 | inventory from any off-site location to its caterer retailer | ||||||
20 | premises at the conclusion of an off-site event, provided that | ||||||
21 | the distributor or importing distributor issues bona fide | ||||||
22 | charges to the caterer retailer licensee for fuel, labor, and | ||||||
23 | delivery and the distributor or importing distributor collects | ||||||
24 | payment from the caterer retailer licensee prior to the | ||||||
25 | distributor or importing distributor transferring inventory to | ||||||
26 | the caterer retailer premises. |
| |||||||
| |||||||
1 | For purposes of this subsection (o), an "act of God" means | ||||||
2 | an unforeseeable event, such as a rain or snow storm, hail, a | ||||||
3 | flood, or a similar event, that is the sole cause of the | ||||||
4 | cancellation of an off-site, outdoor event. | ||||||
5 | (p) An auction liquor license shall allow the licensee to | ||||||
6 | sell and offer for sale at auction wine and spirits for use or | ||||||
7 | consumption, or for resale by an Illinois liquor licensee in | ||||||
8 | accordance with provisions of this Act. An auction liquor | ||||||
9 | license will be issued to a person and it will permit the | ||||||
10 | auction liquor licensee to hold the auction anywhere in the | ||||||
11 | State. An auction liquor license must be obtained for each | ||||||
12 | auction at least 14 days in advance of the auction date. | ||||||
13 | (q) A special use permit license shall allow an Illinois | ||||||
14 | licensed retailer to transfer a portion of its alcoholic | ||||||
15 | liquor inventory from its retail licensed premises to the | ||||||
16 | premises specified in the license hereby created; to purchase | ||||||
17 | alcoholic liquor from a distributor or importing distributor | ||||||
18 | to be delivered directly to the location specified in the | ||||||
19 | license hereby created; and to sell or offer for sale at | ||||||
20 | retail, only in the premises specified in the license hereby | ||||||
21 | created, the transferred or delivered alcoholic liquor for use | ||||||
22 | or consumption, but not for resale in any form. A special use | ||||||
23 | permit license may be granted for the following time periods: | ||||||
24 | one day or less; 2 or more days to a maximum of 15 days per | ||||||
25 | location in any 12-month period. An applicant for the special | ||||||
26 | use permit license must also submit with the application proof |
| |||||||
| |||||||
1 | satisfactory to the State Commission that the applicant will | ||||||
2 | provide dram shop liability insurance to the maximum limits | ||||||
3 | and have local authority approval. | ||||||
4 | A special use permit license shall allow the holder to | ||||||
5 | transfer any inventory from the holder's special use premises | ||||||
6 | to its retail premises at the conclusion of the special use | ||||||
7 | event or engage a distributor or importing distributor to | ||||||
8 | transfer any inventory from the holder's special use premises | ||||||
9 | to its retail premises at the conclusion of an off-site event, | ||||||
10 | provided that the distributor or importing distributor issues | ||||||
11 | bona fide charges to the special use permit licensee for fuel, | ||||||
12 | labor, and delivery and the distributor or importing | ||||||
13 | distributor collects payment from the retail licensee prior to | ||||||
14 | the distributor or importing distributor transferring | ||||||
15 | inventory to the retail premises. | ||||||
16 | Nothing in this Act prohibits a distributor or importing | ||||||
17 | distributor from offering credit or a refund for unused, | ||||||
18 | salable beer to a special use permit licensee or a special use | ||||||
19 | permit licensee from accepting a credit or refund for unused, | ||||||
20 | salable beer at the conclusion of the event specified in the | ||||||
21 | license if: (i) the holder of the special use permit license | ||||||
22 | has not transferred alcoholic liquor from its retail licensed | ||||||
23 | premises to the premises specified in the special use permit | ||||||
24 | license; (ii) the distributor or importing distributor offers | ||||||
25 | the credit or refund for the unused, salable beer that it | ||||||
26 | delivered to the premises specified in the special use permit |
| |||||||
| |||||||
1 | license and not for any unused, salable beer that the | ||||||
2 | distributor or importing distributor delivered to the | ||||||
3 | retailer's premises; and (iii) the unused, salable beer would | ||||||
4 | likely spoil if transferred to the retailer premises. | ||||||
5 | (r) A winery shipper's license shall allow a person with a | ||||||
6 | first-class or second-class wine manufacturer's license, a | ||||||
7 | first-class or second-class wine-maker's license, or a limited | ||||||
8 | wine manufacturer's license or who is licensed to make wine | ||||||
9 | under the laws of another state to ship wine made by that | ||||||
10 | licensee directly to a resident of this State who is 21 years | ||||||
11 | of age or older for that resident's personal use and not for | ||||||
12 | resale. Prior to receiving a winery shipper's license, an | ||||||
13 | applicant for the license must provide the Commission with a | ||||||
14 | true copy of its current license in any state in which it is | ||||||
15 | licensed as a manufacturer of wine. An applicant for a winery | ||||||
16 | shipper's license must also complete an application form that | ||||||
17 | provides any other information the Commission deems necessary. | ||||||
18 | The application form shall include all addresses from which | ||||||
19 | the applicant for a winery shipper's license intends to ship | ||||||
20 | wine, including the name and address of any third party, | ||||||
21 | except for a common carrier, authorized to ship wine on behalf | ||||||
22 | of the manufacturer. The application form shall include an | ||||||
23 | acknowledgement consenting to the jurisdiction of the | ||||||
24 | Commission, the Illinois Department of Revenue, and the courts | ||||||
25 | of this State concerning the enforcement of this Act and any | ||||||
26 | related laws, rules, and regulations, including authorizing |
| |||||||
| |||||||
1 | the Department of Revenue and the Commission to conduct audits | ||||||
2 | for the purpose of ensuring compliance with Public Act 95-634, | ||||||
3 | and an acknowledgement that the wine manufacturer is in | ||||||
4 | compliance with Section 6-2 of this Act. Any third party, | ||||||
5 | except for a common carrier, authorized to ship wine on behalf | ||||||
6 | of a first-class or second-class wine manufacturer's licensee, | ||||||
7 | a first-class or second-class wine-maker's licensee, a limited | ||||||
8 | wine manufacturer's licensee, or a person who is licensed to | ||||||
9 | make wine under the laws of another state shall also be | ||||||
10 | disclosed by the winery shipper's licensee, and a copy of the | ||||||
11 | written appointment of the third-party wine provider, except | ||||||
12 | for a common carrier, to the wine manufacturer shall be filed | ||||||
13 | with the State Commission as a supplement to the winery | ||||||
14 | shipper's license application or any renewal thereof. The | ||||||
15 | winery shipper's license holder shall affirm under penalty of | ||||||
16 | perjury, as part of the winery shipper's license application | ||||||
17 | or renewal, that he or she only ships wine, either directly or | ||||||
18 | indirectly through a third-party provider, from the licensee's | ||||||
19 | own production. | ||||||
20 | Except for a common carrier, a third-party provider | ||||||
21 | shipping wine on behalf of a winery shipper's license holder | ||||||
22 | is the agent of the winery shipper's license holder and, as | ||||||
23 | such, a winery shipper's license holder is responsible for the | ||||||
24 | acts and omissions of the third-party provider acting on | ||||||
25 | behalf of the license holder. A third-party provider, except | ||||||
26 | for a common carrier, that engages in shipping wine into |
| |||||||
| |||||||
1 | Illinois on behalf of a winery shipper's license holder shall | ||||||
2 | consent to the jurisdiction of the State Commission and the | ||||||
3 | State. Any third-party, except for a common carrier, holding | ||||||
4 | such an appointment shall, by February 1 of each calendar year | ||||||
5 | and upon request by the State Commission or the Department of | ||||||
6 | Revenue, file with the State Commission a statement detailing | ||||||
7 | each shipment made to an Illinois resident. The statement | ||||||
8 | shall include the name and address of the third-party provider | ||||||
9 | filing the statement, the time period covered by the | ||||||
10 | statement, and the following information: | ||||||
11 | (1) the name, address, and license number of the | ||||||
12 | winery shipper on whose behalf the shipment was made; | ||||||
13 | (2) the quantity of the products delivered; and | ||||||
14 | (3) the date and address of the shipment. | ||||||
15 | If the Department of Revenue or the State Commission requests | ||||||
16 | a statement under this paragraph, the third-party provider | ||||||
17 | must provide that statement no later than 30 days after the | ||||||
18 | request is made. Any books, records, supporting papers, and | ||||||
19 | documents containing information and data relating to a | ||||||
20 | statement under this paragraph shall be kept and preserved for | ||||||
21 | a period of 3 years, unless their destruction sooner is | ||||||
22 | authorized, in writing, by the Director of Revenue, and shall | ||||||
23 | be open and available to inspection by the Director of Revenue | ||||||
24 | or the State Commission or any duly authorized officer, agent, | ||||||
25 | or employee of the State Commission or the Department of | ||||||
26 | Revenue, at all times during business hours of the day. Any |
| |||||||
| |||||||
1 | person who violates any provision of this paragraph or any | ||||||
2 | rule of the State Commission for the administration and | ||||||
3 | enforcement of the provisions of this paragraph is guilty of a | ||||||
4 | Class C misdemeanor. In case of a continuing violation, each | ||||||
5 | day's continuance thereof shall be a separate and distinct | ||||||
6 | offense. | ||||||
7 | The State Commission shall adopt rules as soon as | ||||||
8 | practicable to implement the requirements of Public Act 99-904 | ||||||
9 | and shall adopt rules prohibiting any such third-party | ||||||
10 | appointment of a third-party provider, except for a common | ||||||
11 | carrier, that has been deemed by the State Commission to have | ||||||
12 | violated the provisions of this Act with regard to any winery | ||||||
13 | shipper licensee. | ||||||
14 | A winery shipper licensee must pay to the Department of | ||||||
15 | Revenue the State liquor gallonage tax under Section 8-1 for | ||||||
16 | all wine that is sold by the licensee and shipped to a person | ||||||
17 | in this State. For the purposes of Section 8-1, a winery | ||||||
18 | shipper licensee shall be taxed in the same manner as a | ||||||
19 | manufacturer of wine. A licensee who is not otherwise required | ||||||
20 | to register under the Retailers' Occupation Tax Act must | ||||||
21 | register under the Use Tax Act to collect and remit use tax to | ||||||
22 | the Department of Revenue for all gallons of wine that are sold | ||||||
23 | by the licensee and shipped to persons in this State. If a | ||||||
24 | licensee fails to remit the tax imposed under this Act in | ||||||
25 | accordance with the provisions of Article VIII of this Act, | ||||||
26 | the winery shipper's license shall be revoked in accordance |
| |||||||
| |||||||
1 | with the provisions of Article VII of this Act. If a licensee | ||||||
2 | fails to properly register and remit tax under the Use Tax Act | ||||||
3 | or the Retailers' Occupation Tax Act for all wine that is sold | ||||||
4 | by the winery shipper and shipped to persons in this State, the | ||||||
5 | winery shipper's license shall be revoked in accordance with | ||||||
6 | the provisions of Article VII of this Act. | ||||||
7 | A winery shipper licensee must collect, maintain, and | ||||||
8 | submit to the Commission on a semi-annual basis the total | ||||||
9 | number of cases per resident of wine shipped to residents of | ||||||
10 | this State. A winery shipper licensed under this subsection | ||||||
11 | (r) must comply with the requirements of Section 6-29 of this | ||||||
12 | Act. | ||||||
13 | Pursuant to paragraph (5.1) or (5.3) of subsection (a) of | ||||||
14 | Section 3-12, the State Commission may receive, respond to, | ||||||
15 | and investigate any complaint and impose any of the remedies | ||||||
16 | specified in paragraph (1) of subsection (a) of Section 3-12. | ||||||
17 | As used in this subsection, "third-party provider" means | ||||||
18 | any entity that provides fulfillment house services, including | ||||||
19 | warehousing, packaging, distribution, order processing, or | ||||||
20 | shipment of wine, but not the sale of wine, on behalf of a | ||||||
21 | licensed winery shipper. | ||||||
22 | (s) A craft distiller tasting permit license shall allow | ||||||
23 | an Illinois licensed class 1 craft distiller or class 2 craft | ||||||
24 | distiller to transfer a portion of its alcoholic liquor | ||||||
25 | inventory from its class 1 craft distiller or class 2 craft | ||||||
26 | distiller licensed premises to the premises specified in the |
| |||||||
| |||||||
1 | license hereby created and to conduct a sampling, only in the | ||||||
2 | premises specified in the license hereby created, of the | ||||||
3 | transferred alcoholic liquor in accordance with subsection (c) | ||||||
4 | of Section 6-31 of this Act. The transferred alcoholic liquor | ||||||
5 | may not be sold or resold in any form. An applicant for the | ||||||
6 | craft distiller tasting permit license must also submit with | ||||||
7 | the application proof satisfactory to the State Commission | ||||||
8 | that the applicant will provide dram shop liability insurance | ||||||
9 | to the maximum limits and have local authority approval. | ||||||
10 | (t) A brewer warehouse permit may be issued to the holder | ||||||
11 | of a class 1 brewer license or a class 2 brewer license. If the | ||||||
12 | holder of the permit is a class 1 brewer licensee, the brewer | ||||||
13 | warehouse permit shall allow the holder to store or warehouse | ||||||
14 | up to 930,000 gallons of tax-determined beer manufactured by | ||||||
15 | the holder of the permit at the premises specified on the | ||||||
16 | permit. If the holder of the permit is a class 2 brewer | ||||||
17 | licensee, the brewer warehouse permit shall allow the holder | ||||||
18 | to store or warehouse up to 3,720,000 gallons of | ||||||
19 | tax-determined beer manufactured by the holder of the permit | ||||||
20 | at the premises specified on the permit. Sales to | ||||||
21 | non-licensees are prohibited at the premises specified in the | ||||||
22 | brewer warehouse permit. | ||||||
23 | (u) A distilling pub license shall allow the licensee to | ||||||
24 | only (i) manufacture up to 5,000 gallons of spirits per year | ||||||
25 | only on the premises specified in the license, (ii) make sales | ||||||
26 | of the spirits manufactured on the premises or, with the |
| |||||||
| |||||||
1 | approval of the State Commission, spirits manufactured on | ||||||
2 | another distilling pub licensed premises that is wholly owned | ||||||
3 | and operated by the same licensee to importing distributors | ||||||
4 | and distributors and to non-licensees for use and consumption, | ||||||
5 | (iii) store the spirits upon the premises, (iv) sell and offer | ||||||
6 | for sale at retail from the licensed premises for off-premises | ||||||
7 | consumption no more than 5,000 gallons per year so long as such | ||||||
8 | sales are only made in-person, (v) sell and offer for sale at | ||||||
9 | retail for use and consumption on the premises specified in | ||||||
10 | the license any form of alcoholic liquor purchased from a | ||||||
11 | licensed distributor or importing distributor, and (vi) with | ||||||
12 | the prior approval of the State Commission, annually transfer | ||||||
13 | no more than 5,000 gallons of spirits manufactured on the | ||||||
14 | premises to a licensed distilling pub wholly owned and | ||||||
15 | operated by the same licensee. | ||||||
16 | A distilling pub licensee shall not under any circumstance | ||||||
17 | sell or offer for sale spirits manufactured by the distilling | ||||||
18 | pub licensee to retail licensees. | ||||||
19 | A person who holds a class 2 craft distiller license may | ||||||
20 | simultaneously hold a distilling pub license if the class 2 | ||||||
21 | craft distiller (i) does not, under any circumstance, sell or | ||||||
22 | offer for sale spirits manufactured by the class 2 craft | ||||||
23 | distiller to retail licensees; (ii) does not hold more than 3 | ||||||
24 | distilling pub licenses in this State; (iii) does not | ||||||
25 | manufacture more than a combined 100,000 gallons of spirits | ||||||
26 | per year, including the spirits manufactured at the distilling |
| |||||||
| |||||||
1 | pub; and (iv) is not a member of or affiliated with, directly | ||||||
2 | or indirectly, a manufacturer that produces more than 100,000 | ||||||
3 | gallons of spirits per year or any other alcoholic liquor. | ||||||
4 | (v) A craft distiller warehouse permit may be issued to | ||||||
5 | the holder of a class 1 craft distiller or class 2 craft | ||||||
6 | distiller license. The craft distiller warehouse permit shall | ||||||
7 | allow the holder to store or warehouse up to 500,000 gallons of | ||||||
8 | spirits manufactured by the holder of the permit at the | ||||||
9 | premises specified on the permit. Sales to non-licensees are | ||||||
10 | prohibited at the premises specified in the craft distiller | ||||||
11 | warehouse permit. | ||||||
12 | (w) A beer showcase permit license shall allow an | ||||||
13 | Illinois-licensed distributor to transfer a portion of its | ||||||
14 | beer inventory from its licensed premises to the premises | ||||||
15 | specified in the beer showcase permit license, and, in the | ||||||
16 | case of a class 3 brewer, transfer only beer the class 3 brewer | ||||||
17 | manufactures from its licensed premises to the premises | ||||||
18 | specified in the beer showcase permit license; and to sell or | ||||||
19 | offer for sale at retail, only in the premises specified in the | ||||||
20 | beer showcase permit license, the transferred or delivered | ||||||
21 | beer for on or off premise consumption, but not for resale in | ||||||
22 | any form and to sell to non-licensees not more than 96 fluid | ||||||
23 | ounces of beer per person. A beer showcase permit license may | ||||||
24 | be granted for the following time periods: one day or less; or | ||||||
25 | 2 or more days to a maximum of 15 days per location in any | ||||||
26 | 12-month period. An applicant for a beer showcase permit |
| |||||||
| |||||||
1 | license must also submit with the application proof | ||||||
2 | satisfactory to the State Commission that the applicant will | ||||||
3 | provide dram shop liability insurance to the maximum limits | ||||||
4 | and have local authority approval. The State Commission shall | ||||||
5 | require the beer showcase applicant to comply with Section | ||||||
6 | 6-27.1. | ||||||
7 | (x) A distillery shipper's license shall allow a person | ||||||
8 | with an Illinois distiller license, a craft distiller license, | ||||||
9 | a class 1 craft distiller license, or a class 2 craft distiller | ||||||
10 | license or who is licensed to make spirits under the laws of | ||||||
11 | another state to ship spirits directly to a resident of this | ||||||
12 | State who is 21 years of age or older for that resident's | ||||||
13 | personal use and not for resale. Prior to receiving a | ||||||
14 | distillery shipper's license, an applicant for the license | ||||||
15 | must provide the State Commission with a true copy of its | ||||||
16 | current license in any state in which it is licensed as a | ||||||
17 | distiller. An applicant for a distillery shipper's license | ||||||
18 | must also complete an application form that provides any other | ||||||
19 | information the State Commission deems necessary. The | ||||||
20 | application form shall include an acknowledgement consenting | ||||||
21 | to the jurisdiction of the State Commission, the Illinois | ||||||
22 | Department of Revenue, and the courts of this State concerning | ||||||
23 | the enforcement of this Act and any related laws, rules, and | ||||||
24 | regulations, including authorizing the Illinois Department of | ||||||
25 | Revenue and the State Commission to conduct audits for the | ||||||
26 | purpose of ensuring compliance with this amendatory Act of the |
| |||||||
| |||||||
1 | 103rd General Assembly. | ||||||
2 | A distillery shipper's licensee must pay to the Illinois | ||||||
3 | Department of Revenue the State liquor gallonage tax under | ||||||
4 | Section 8-1 for all spirits that are sold by the licensee and | ||||||
5 | shipped to a person in this State. For the purposes of Section | ||||||
6 | 8-1, an out-of-state distillery shipper's licensee shall be | ||||||
7 | taxed in the same manner as a manufacturer of spirits. A | ||||||
8 | licensee who is not otherwise required to register under the | ||||||
9 | Retailers' Occupation Tax Act must register under the Use Tax | ||||||
10 | Act to collect and remit use tax to the Illinois Department of | ||||||
11 | Revenue for all gallons of spirits that are sold by the | ||||||
12 | licensee and shipped to persons in this State. If a licensee | ||||||
13 | fails to remit the tax imposed under this Act in accordance | ||||||
14 | with the provisions of Article VIII of this Act, the | ||||||
15 | distillery shipper's license shall be revoked in accordance | ||||||
16 | with the provisions of Article VII of this Act. If a licensee | ||||||
17 | fails to properly register and remit tax under the Use Tax Act | ||||||
18 | or the Retailers' Occupation Tax Act for all spirits that is | ||||||
19 | sold by the distillery shipper and shipped to persons in this | ||||||
20 | State, the distillery shipper's license shall be revoked in | ||||||
21 | accordance with the provisions of Article VII of this Act. | ||||||
22 | A distillery shipper's licensee must collect, maintain, | ||||||
23 | and submit to the State Commission on a semi-annual basis the | ||||||
24 | total gallons of spirits per resident shipped to residents of | ||||||
25 | this State. A distillery shipper licensed under this | ||||||
26 | subsection must comply with the requirements of Section |
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1 | 6-29.05 of this Act. Pursuant to paragraph (5.1) or (5.3) of | ||||||
2 | subsection (a) of Section 3-12, the State Commission may | ||||||
3 | receive, respond to, and investigate any complaint and impose | ||||||
4 | any of the remedies specified in paragraph (1) of subsection | ||||||
5 | (a) of Section 3-12. | ||||||
6 | Except as provided in Section 6-16, 6-29, or 6-29.05, | ||||||
7 | nothing in this Act shall deny, limit, remove, or restrict the | ||||||
8 | ability of a holder of a distilling pub license to transfer or | ||||||
9 | ship alcoholic liquor it produces to the purchaser for use or | ||||||
10 | consumption subject to any applicable local law or ordinance. | ||||||
11 | Except as provided in Section 6-16, 6-29, or 6-29.05, nothing | ||||||
12 | in this Act shall limit, remove, or restrict the ability of a | ||||||
13 | holder of a distilling pub license to deliver alcoholic liquor | ||||||
14 | to the purchaser for use or consumption. The delivery shall be | ||||||
15 | made only within 12 hours after the alcoholic liquor leaves | ||||||
16 | the licensed premises of the distilling pub for delivery. | ||||||
17 | For the purposes of this subsection, "delivery" means the | ||||||
18 | movement of alcoholic liquor purchased from a licensed | ||||||
19 | distilling pub to the consumer through the following methods: | ||||||
20 | (1) delivery within the licensed distilling pub | ||||||
21 | parking lot, including curbside, for pickup by the | ||||||
22 | consumer; | ||||||
23 | (2) delivery by an owner, officer, director, | ||||||
24 | shareholder, or employee of the licensed distilling pub; | ||||||
25 | or | ||||||
26 | (3) delivery by a third-party contractor, independent |
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1 | contractor, or agent with whom the licensed distilling pub | ||||||
2 | has contracted to make deliveries of alcoholic liquors. | ||||||
3 | Under paragraphs (1), (2), or (3) of this subsection, | ||||||
4 | "delivery" does not include common carriers. | ||||||
5 | For the purposes of this subsection, "ship" means to move | ||||||
6 | alcoholic liquor from a licensed distilling pub to a consumer | ||||||
7 | via a common carrier. | ||||||
8 | Except for a municipality with a population of more than | ||||||
9 | 1,000,000 inhabitants, a home rule unit may not regulate the | ||||||
10 | delivery of alcoholic liquor in a manner inconsistent with | ||||||
11 | this subsection. This paragraph is a limitation under | ||||||
12 | subsection (i) of Section 6 of Article VII of the Illinois | ||||||
13 | Constitution on the concurrent exercise by home rule units of | ||||||
14 | powers and functions exercised by the State. | ||||||
15 | (Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; | ||||||
16 | 101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. | ||||||
17 | 8-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22; | ||||||
18 | 102-442, eff. 8-20-21; 102-1142, eff. 2-17-23.) | ||||||
19 | (235 ILCS 5/5-3) (from Ch. 43, par. 118) | ||||||
20 | Sec. 5-3. License fees. Except as otherwise provided | ||||||
21 | herein, at the time application is made to the State | ||||||
22 | Commission for a license of any class, the applicant shall pay | ||||||
23 | to the State Commission the fee hereinafter provided for the | ||||||
24 | kind of license applied for. | ||||||
25 | The fee for licenses issued by the State Commission shall |
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21 | Fees collected under this Section shall be paid into the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | Dram Shop Fund. The State Commission shall waive license | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | renewal fees for those retailers' licenses that are designated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | as "1A" by the State Commission and expire on or after July 1, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 | 2022, and on or before June 30, 2023. One-half of the funds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
26 | received for a retailer's license shall be paid into the Dram |
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1 | Shop Fund and one-half of the funds received for a retailer's | ||||||
2 | license shall be paid into the General Revenue Fund. | ||||||
3 | No fee shall be paid for licenses issued by the State | ||||||
4 | Commission to the following non-beverage users: | ||||||
5 | (a) Hospitals, sanitariums, or clinics when their use | ||||||
6 | of alcoholic liquor is exclusively medicinal, mechanical , | ||||||
7 | or scientific. | ||||||
8 | (b) Universities, colleges of learning , or schools | ||||||
9 | when their use of alcoholic liquor is exclusively | ||||||
10 | medicinal, mechanical , or scientific. | ||||||
11 | (c) Laboratories when their use is exclusively for the | ||||||
12 | purpose of scientific research. | ||||||
13 | (Source: P.A. 102-442, eff. 8-20-21; 102-558, eff. 8-20-21; | ||||||
14 | 102-699, eff. 4-19-22; 102-1142, eff. 2-17-23; 103-154, eff. | ||||||
15 | 6-30-23; revised 9-5-23.) | ||||||
16 | (235 ILCS 5/6-29.05 new) | ||||||
17 | Sec. 6-29.05. Distillery shipper's license. | ||||||
18 | (a) The General Assembly declares that the following is | ||||||
19 | the intent of this Section: | ||||||
20 | (1) To authorize direct shipment of spirits by an | ||||||
21 | out-of-state distiller on the same basis permitted an | ||||||
22 | in-state distiller, an in-state craft distiller, an | ||||||
23 | in-state class 1 craft distiller, and an in-state class 2 | ||||||
24 | craft distiller pursuant to the authority of the State | ||||||
25 | under the provisions of Section 2 of the Twenty-First |
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1 | Amendment to the United States Constitution and in | ||||||
2 | conformance with the United States Supreme Court decision | ||||||
3 | decided on May 16, 2005 in Granholm v. Heald. | ||||||
4 | (2) To reaffirm that the General Assembly's findings | ||||||
5 | and declarations that selling alcoholic liquor through | ||||||
6 | various direct marketing means, such as catalogs, | ||||||
7 | newspapers, mailings, and the Internet, directly to | ||||||
8 | consumers of this State poses a serious threat to the | ||||||
9 | State's efforts to further temperance and prevent youth | ||||||
10 | from accessing alcoholic liquor and the expansion of youth | ||||||
11 | access to additional types of alcoholic liquors. | ||||||
12 | (3) To maintain the State's broad powers granted by | ||||||
13 | Section 2 of the Twenty-First Amendment to the United | ||||||
14 | States Constitution to control the importation or sale of | ||||||
15 | alcoholic liquor and its right to structure its alcoholic | ||||||
16 | liquor distribution system. | ||||||
17 | (4) To ensure that the General Assembly, by | ||||||
18 | authorizing limited direct shipment of spirits to meet the | ||||||
19 | directives of the United States Supreme Court, does not | ||||||
20 | intend to impair or modify the State's distribution of | ||||||
21 | spirits through distributors or importing distributors, | ||||||
22 | but only to permit limited shipment of spirits for | ||||||
23 | personal use. | ||||||
24 | (5) To provide that if a court of competent | ||||||
25 | jurisdiction declares or finds that this Section, which is | ||||||
26 | enacted to conform Illinois law to the United States |
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1 | Supreme Court decision, is invalid or unconstitutional, | ||||||
2 | the Illinois General Assembly at its earliest general | ||||||
3 | session shall conduct hearings and study methods to | ||||||
4 | conform to any directive or order of the court consistent | ||||||
5 | with the temperance and revenue collection purposes of | ||||||
6 | this Act. | ||||||
7 | (b) Notwithstanding any other provision of law, a | ||||||
8 | distillery shipper's licensee may ship, for personal use and | ||||||
9 | not for resale, not more than 12 cases of spirits per year to | ||||||
10 | any resident of this State who is 21 years of age or older. | ||||||
11 | (c) Notwithstanding any other provision of law, sale and | ||||||
12 | shipment by a distillery shipper's licensee pursuant to this | ||||||
13 | Section shall be deemed to constitute a sale in this State. | ||||||
14 | (d) The shipping container of any spirit shipped under | ||||||
15 | this Section shall be clearly labeled with the following | ||||||
16 | words: "CONTAINS ALCOHOL. SIGNATURE OF A PERSON 21 YEARS OF | ||||||
17 | AGE OR OLDER REQUIRED FOR DELIVERY. PROOF OF AGE AND IDENTITY | ||||||
18 | MUST BE SHOWN BEFORE DELIVERY.". This warning must be | ||||||
19 | prominently displayed on the packaging. A licensee shall | ||||||
20 | require the transporter or common carrier that delivers the | ||||||
21 | spirits to obtain the signature of a person 21 years of age or | ||||||
22 | older at the delivery address at the time of delivery. At the | ||||||
23 | expense of the licensee, the licensee shall receive a delivery | ||||||
24 | confirmation from the express company, common carrier, or | ||||||
25 | contract carrier indicating the location of the delivery, time | ||||||
26 | of delivery, and the name and signature of the individual 21 |
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1 | years of age or older who accepts delivery. The State | ||||||
2 | Commission may design and create a label or approve a label | ||||||
3 | that must be affixed to the shipping container by the | ||||||
4 | licensee. | ||||||
5 | (e) No broker within this State shall solicit consumers to | ||||||
6 | engage in direct spirit shipments under this Section. | ||||||
7 | (f) It is not the intent of this Section to impair the | ||||||
8 | distribution of spirits through distributors or importing | ||||||
9 | distributors, but only to permit shipments of spirits for | ||||||
10 | personal use. |