93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB3031

 

Introduced 2/6/2004, by Louis S. Viverito

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/5-1   from Ch. 43, par. 115

    Amends the Liquor Control Act of 1934. Provides that a non-resident dealer's licensee that meets the qualifications for licensure as a first-class wine-maker's licensee, other than the requirement that he or she be located in Illinois, may manufacture, store, and sell wine in the same manner as a first-class wine-maker's licensee. Provides that a non-resident dealer's licensee that meets the qualifications for licensure as a second-class wine-maker's licensee, other than the requirement that he or she be located in Illinois, may manufacture, store, and sell wine in the same manner as a second-class wine-maker's licensee. Effective immediately.


LRB093 19002 LRD 44737 b

 

 

A BILL FOR

 

SB3031 LRB093 19002 LRD 44737 b

1     AN ACT concerning alcoholic liquor.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Liquor Control Act of 1934 is amended by
5 changing Section 5-1 as follows:
 
6     (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
7     Sec. 5-1. Licenses issued by the Illinois Liquor Control
8 Commission shall be of the following classes:
9     (a) Manufacturer's license - Class 1. Distiller, Class 2.
10 Rectifier, Class 3. Brewer, Class 4. First Class Wine
11 Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
12 First Class Winemaker, Class 7. Second Class Winemaker, Class
13 8. Limited Wine Manufacturer,
14     (b) Distributor's license,
15     (c) Importing Distributor's license,
16     (d) Retailer's license,
17     (e) Special Event Retailer's license (not-for-profit),
18     (f) Railroad license,
19     (g) Boat license,
20     (h) Non-Beverage User's license,
21     (i) Wine-maker's premises license,
22     (j) Airplane license,
23     (k) Foreign importer's license,
24     (l) Broker's license,
25     (m) Non-resident dealer's license,
26     (n) Brew Pub license,
27     (o) Auction liquor license,
28     (p) Caterer retailer license,
29     (q) Special use permit license.
30     No person, firm, partnership, corporation, or other legal
31 business entity that is engaged in the manufacturing of wine
32 may concurrently obtain and hold a wine-maker's license and a

 

 

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1 wine manufacturer's license.
2     (a) A manufacturer's license shall allow the manufacture,
3 importation in bulk, storage, distribution and sale of
4 alcoholic liquor to persons without the State, as may be
5 permitted by law and to licensees in this State as follows:
6     Class 1. A Distiller may make sales and deliveries of
7 alcoholic liquor to distillers, rectifiers, importing
8 distributors, distributors and non-beverage users and to no
9 other licensees.
10     Class 2. A Rectifier, who is not a distiller, as defined
11 herein, may make sales and deliveries of alcoholic liquor to
12 rectifiers, importing distributors, distributors, retailers
13 and non-beverage users and to no other licensees.
14     Class 3. A Brewer may make sales and deliveries of beer to
15 importing distributors, distributors, and to non-licensees,
16 and to retailers provided the brewer obtains an importing
17 distributor's license or distributor's license in accordance
18 with the provisions of this Act.
19     Class 4. A first class wine-manufacturer may make sales and
20 deliveries of up to 50,000 gallons of wine to manufacturers,
21 importing distributors and distributors, and to no other
22 licensees.
23     Class 5. A second class Wine manufacturer may make sales
24 and deliveries of more than 50,000 gallons of wine to
25 manufacturers, importing distributors and distributors and to
26 no other licensees.
27     Class 6. A first-class wine-maker's license shall allow the
28 manufacture of up to 50,000 gallons of wine per year, and the
29 storage and sale of such wine to distributors in the State and
30 to persons without the State, as may be permitted by law. A
31 first-class wine-maker's license shall allow the sale of no
32 more than 5,000 gallons of the licensee's wine to retailers.
33 The State Commission shall issue only one first-class
34 wine-maker's license to any person, firm, partnership,
35 corporation, or other legal business entity that is engaged in
36 the making of less than 50,000 gallons of wine annually that

 

 

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1 applies for a first-class wine-maker's license. No subsidiary
2 or affiliate thereof, nor any officer, associate, member,
3 partner, representative, employee, agent, or shareholder may
4 be issued an additional wine-maker's license by the State
5 Commission.
6     Class 7. A second-class wine-maker's license shall allow
7 the manufacture of between 50,000 and 100,000 gallons of wine
8 per year, and the storage and sale of such wine to distributors
9 in this State and to persons without the State, as may be
10 permitted by law. A second-class wine-maker's license shall
11 allow the sale of no more than 10,000 gallons of the licensee's
12 wine directly to retailers. The State Commission shall issue
13 only one second-class wine-maker's license to any person, firm,
14 partnership, corporation, or other legal business entity that
15 is engaged in the making of less than 100,000 gallons of wine
16 annually that applies for a second-class wine-maker's license.
17 No subsidiary or affiliate thereof, or any officer, associate,
18 member, partner, representative, employee, agent, or
19 shareholder may be issued an additional wine-maker's license by
20 the State Commission.
21     Class 8. A limited wine-manufacturer may make sales and
22 deliveries not to exceed 40,000 gallons of wine per year to
23 distributors, and to non-licensees in accordance with the
24 provisions of this Act.
25     (a-1) A manufacturer which is licensed in this State to
26 make sales or deliveries of alcoholic liquor and which enlists
27 agents, representatives, or individuals acting on its behalf
28 who contact licensed retailers on a regular and continual basis
29 in this State must register those agents, representatives, or
30 persons acting on its behalf with the State Commission.
31     Registration of agents, representatives, or persons acting
32 on behalf of a manufacturer is fulfilled by submitting a form
33 to the Commission. The form shall be developed by the
34 Commission and shall include the name and address of the
35 applicant, the name and address of the manufacturer he or she
36 represents, the territory or areas assigned to sell to or

 

 

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1 discuss pricing terms of alcoholic liquor, and any other
2 questions deemed appropriate and necessary. All statements in
3 the forms required to be made by law or by rule shall be deemed
4 material, and any person who knowingly misstates any material
5 fact under oath in an application is guilty of a Class B
6 misdemeanor. Fraud, misrepresentation, false statements,
7 misleading statements, evasions, or suppression of material
8 facts in the securing of a registration are grounds for
9 suspension or revocation of the registration.
10     (b) A distributor's license shall allow the wholesale
11 purchase and storage of alcoholic liquors and sale of alcoholic
12 liquors to licensees in this State and to persons without the
13 State, as may be permitted by law.
14     (c) An importing distributor's license may be issued to and
15 held by those only who are duly licensed distributors, upon the
16 filing of an application by a duly licensed distributor, with
17 the Commission and the Commission shall, without the payment of
18 any fee, immediately issue such importing distributor's
19 license to the applicant, which shall allow the importation of
20 alcoholic liquor by the licensee into this State from any point
21 in the United States outside this State, and the purchase of
22 alcoholic liquor in barrels, casks or other bulk containers and
23 the bottling of such alcoholic liquors before resale thereof,
24 but all bottles or containers so filled shall be sealed,
25 labeled, stamped and otherwise made to comply with all
26 provisions, rules and regulations governing manufacturers in
27 the preparation and bottling of alcoholic liquors. The
28 importing distributor's license shall permit such licensee to
29 purchase alcoholic liquor from Illinois licensed non-resident
30 dealers and foreign importers only.
31     (d) A retailer's license shall allow the licensee to sell
32 and offer for sale at retail, only in the premises specified in
33 such license, alcoholic liquor for use or consumption, but not
34 for resale in any form: Provided that any retail license issued
35 to a manufacturer shall only permit such manufacturer to sell
36 beer at retail on the premises actually occupied by such

 

 

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1 manufacturer.
2     After January 1, 1995 there shall be 2 classes of licenses
3 issued under a retailers license.
4         (1) A "retailers on premise consumption license" shall
5     allow the licensee to sell and offer for sale at retail,
6     only on the premises specified in the license, alcoholic
7     liquor for use or consumption on the premises or on and off
8     the premises, but not for resale in any form.
9         (2) An "off premise sale license" shall allow the
10     licensee to sell, or offer for sale at retail, alcoholic
11     liquor intended only for off premise consumption and not
12     for resale in any form.
13     Notwithstanding any other provision of this subsection
14 (d), a retail licensee may sell alcoholic liquors to a special
15 event retailer licensee for resale to the extent permitted
16 under subsection (e).
17     (e) A special event retailer's license (not-for-profit)
18 shall permit the licensee to purchase alcoholic liquors from an
19 Illinois licensed distributor (unless the licensee purchases
20 less than $500 of alcoholic liquors for the special event, in
21 which case the licensee may purchase the alcoholic liquors from
22 a licensed retailer) and shall allow the licensee to sell and
23 offer for sale, at retail, alcoholic liquors for use or
24 consumption, but not for resale in any form and only at the
25 location and on the specific dates designated for the special
26 event in the license. An applicant for a special event retailer
27 license must (i) furnish with the application: (A) a resale
28 number issued under Section 2c of the Retailers' Occupation Tax
29 Act or evidence that the applicant is registered under Section
30 2a of the Retailers' Occupation Tax Act, (B) a current, valid
31 exemption identification number issued under Section 1g of the
32 Retailers' Occupation Tax Act, and a certification to the
33 Commission that the purchase of alcoholic liquors will be a
34 tax-exempt purchase, or (C) a statement that the applicant is
35 not registered under Section 2a of the Retailers' Occupation
36 Tax Act, does not hold a resale number under Section 2c of the

 

 

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1 Retailers' Occupation Tax Act, and does not hold an exemption
2 number under Section 1g of the Retailers' Occupation Tax Act,
3 in which event the Commission shall set forth on the special
4 event retailer's license a statement to that effect; (ii)
5 submit with the application proof satisfactory to the State
6 Commission that the applicant will provide dram shop liability
7 insurance in the maximum limits; and (iii) show proof
8 satisfactory to the State Commission that the applicant has
9 obtained local authority approval.
10     (f) A railroad license shall permit the licensee to import
11 alcoholic liquors into this State from any point in the United
12 States outside this State and to store such alcoholic liquors
13 in this State; to make wholesale purchases of alcoholic liquors
14 directly from manufacturers, foreign importers, distributors
15 and importing distributors from within or outside this State;
16 and to store such alcoholic liquors in this State; provided
17 that the above powers may be exercised only in connection with
18 the importation, purchase or storage of alcoholic liquors to be
19 sold or dispensed on a club, buffet, lounge or dining car
20 operated on an electric, gas or steam railway in this State;
21 and provided further, that railroad licensees exercising the
22 above powers shall be subject to all provisions of Article VIII
23 of this Act as applied to importing distributors. A railroad
24 license shall also permit the licensee to sell or dispense
25 alcoholic liquors on any club, buffet, lounge or dining car
26 operated on an electric, gas or steam railway regularly
27 operated by a common carrier in this State, but shall not
28 permit the sale for resale of any alcoholic liquors to any
29 licensee within this State. A license shall be obtained for
30 each car in which such sales are made.
31     (g) A boat license shall allow the sale of alcoholic liquor
32 in individual drinks, on any passenger boat regularly operated
33 as a common carrier on navigable waters in this State or on any
34 riverboat operated under the Riverboat Gambling Act, which boat
35 or riverboat maintains a public dining room or restaurant
36 thereon.

 

 

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1     (h) A non-beverage user's license shall allow the licensee
2 to purchase alcoholic liquor from a licensed manufacturer or
3 importing distributor, without the imposition of any tax upon
4 the business of such licensed manufacturer or importing
5 distributor as to such alcoholic liquor to be used by such
6 licensee solely for the non-beverage purposes set forth in
7 subsection (a) of Section 8-1 of this Act, and such licenses
8 shall be divided and classified and shall permit the purchase,
9 possession and use of limited and stated quantities of
10 alcoholic liquor as follows:
11Class 1, not to exceed .........................500 gallons
12Class 2, not to exceed .........................1,000 gallons
13Class 3, not to exceed .........................5,000 gallons
14Class 4, not to exceed .........................10,000 gallons
15Class 5, not to exceed .........................50,000 gallons
16     (i) A wine-maker's premises license shall allow a licensee
17 that concurrently holds a first-class wine-maker's license to
18 sell and offer for sale at retail in the premises specified in
19 such license not more than 50,000 gallons of the first-class
20 wine-maker's wine that is made at the first-class wine-maker's
21 licensed premises per year for use or consumption, but not for
22 resale in any form. A wine-maker's premises license shall allow
23 a licensee who concurrently holds a second-class wine-maker's
24 license to sell and offer for sale at retail in the premises
25 specified in such license up to 100,000 gallons of the
26 second-class wine-maker's wine that is made at the second-class
27 wine-maker's licensed premises per year for use or consumption
28 but not for resale in any form. Upon approval from the State
29 Commission, a wine-maker's premises license shall allow the
30 licensee to sell and offer for sale at (i) the wine-maker's
31 licensed premises and (ii) at up to 2 additional locations for
32 use and consumption and not for resale. Each location shall
33 require additional licensing per location as specified in
34 Section 5-3 of this Act.
35     (j) An airplane license shall permit the licensee to import
36 alcoholic liquors into this State from any point in the United

 

 

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1 States outside this State and to store such alcoholic liquors
2 in this State; to make wholesale purchases of alcoholic liquors
3 directly from manufacturers, foreign importers, distributors
4 and importing distributors from within or outside this State;
5 and to store such alcoholic liquors in this State; provided
6 that the above powers may be exercised only in connection with
7 the importation, purchase or storage of alcoholic liquors to be
8 sold or dispensed on an airplane; and provided further, that
9 airplane licensees exercising the above powers shall be subject
10 to all provisions of Article VIII of this Act as applied to
11 importing distributors. An airplane licensee shall also permit
12 the sale or dispensing of alcoholic liquors on any passenger
13 airplane regularly operated by a common carrier in this State,
14 but shall not permit the sale for resale of any alcoholic
15 liquors to any licensee within this State. A single airplane
16 license shall be required of an airline company if liquor
17 service is provided on board aircraft in this State. The annual
18 fee for such license shall be as determined in Section 5-3.
19     (k) A foreign importer's license shall permit such licensee
20 to purchase alcoholic liquor from Illinois licensed
21 non-resident dealers only, and to import alcoholic liquor other
22 than in bulk from any point outside the United States and to
23 sell such alcoholic liquor to Illinois licensed importing
24 distributors and to no one else in Illinois; provided that the
25 foreign importer registers with the State Commission every
26 brand of alcoholic liquor that it proposes to sell to Illinois
27 licensees during the license period and provided further that
28 the foreign importer complies with all of the provisions of
29 Section 6-9 of this Act with respect to registration of such
30 Illinois licensees as may be granted the right to sell such
31 brands at wholesale.
32     (l) (i) A broker's license shall be required of all persons
33 who solicit orders for, offer to sell or offer to supply
34 alcoholic liquor to retailers in the State of Illinois, or who
35 offer to retailers to ship or cause to be shipped or to make
36 contact with distillers, rectifiers, brewers or manufacturers

 

 

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

 

 

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1 registration pursuant to subsection (a-1) of this Section shall
2 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 said non-resident dealer shall register with the
9 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; and further provided that
12 it shall comply with all of the provisions of Section 6-9
13 hereof with respect to registration of such Illinois licensees
14 as may be granted the right to sell such brands at wholesale.
15 Notwithstanding any provision in this Act to the contrary, a
16 non-resident dealer's licensee that meets the qualifications
17 for licensure as a first-class wine-maker's licensee, other
18 than the requirement that he or she be located in Illinois, may
19 manufacture, store, and sell wine in the same manner as a
20 first-class wine-maker's licensee. Notwithstanding any
21 provision in this Act to the contrary, a non-resident dealer's
22 licensee that meets the qualifications for licensure as a
23 second-class wine-maker's licensee, other than the requirement
24 that he or she be located in Illinois, may manufacture, store,
25 and sell wine in the same manner as a second-class wine-maker's
26 licensee.
27     (n) A brew pub license shall allow the licensee to
28 manufacture beer only on the premises specified in the license,
29 to make sales of the beer manufactured on the premises to
30 importing distributors, distributors, and to non-licensees for
31 use and consumption, to store the beer upon the premises, and
32 to sell and offer for sale at retail from the licensed
33 premises, provided that a brew pub licensee shall not sell for
34 off-premises consumption more than 50,000 gallons per year.
35     (o) A caterer retailer license shall allow the holder to
36 serve alcoholic liquors as an incidental part of a food service

 

 

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1 that serves prepared meals which excludes the serving of snacks
2 as the primary meal, either on or off-site whether licensed or
3 unlicensed.
4     (p) An auction liquor license shall allow the licensee to
5 sell and offer for sale at auction wine and spirits for use or
6 consumption, or for resale by an Illinois liquor licensee in
7 accordance with provisions of this Act. An auction liquor
8 license will be issued to a person and it will permit the
9 auction liquor licensee to hold the auction anywhere in the
10 State. An auction liquor license must be obtained for each
11 auction at least 14 days in advance of the auction date.
12     (q) A special use permit license shall allow an Illinois
13 licensed retailer to transfer a portion of its alcoholic liquor
14 inventory from its retail licensed premises to the premises
15 specified in the license hereby created, and to sell or offer
16 for sale at retail, only in the premises specified in the
17 license hereby created, the transferred alcoholic liquor for
18 use or consumption, but not for resale in any form. A special
19 use permit license may be granted for the following time
20 periods: one day or less; 2 or more days to a maximum of 15 days
21 per location in any 12 month period. An applicant for the
22 special use permit license must also submit with the
23 application proof satisfactory to the State Commission that the
24 applicant will provide dram shop liability insurance to the
25 maximum limits and have local authority approval.
26 (Source: P.A. 91-357, eff. 7-29-99; 92-105, eff. 1-1-02;
27 92-378, eff. 8-16-01; 92-651, eff. 7-11-02; 92-672, eff.
28 7-16-02.)
 
29     Section 99. Effective date. This Act takes effect upon
30 becoming law.