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1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Section 5-1 as follows:
 
6    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
7    Sec. 5-1. Licenses issued by the Illinois Liquor Control
8Commission shall be of the following classes:
9    (a) Manufacturer's license - Class 1. Distiller, Class 2.
10Rectifier, Class 3. Brewer, Class 4. First Class Wine
11Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
12First Class Winemaker, Class 7. Second Class Winemaker, Class
138. Limited Wine Manufacturer, Class 9. Craft Distiller,
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,

 

 

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

 

 

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1distributor's license or distributor's license in accordance
2with the provisions of this Act.
3    Class 4. A first class wine-manufacturer may make sales and
4deliveries of up to 50,000 gallons of wine to manufacturers,
5importing distributors and distributors, and to no other
6licensees.
7    Class 5. A second class Wine manufacturer may make sales
8and deliveries of more than 50,000 gallons of wine to
9manufacturers, importing distributors and distributors and to
10no other licensees.
11    Class 6. A first-class wine-maker's license shall allow the
12manufacture of up to 50,000 gallons of wine per year, and the
13storage and sale of such wine to distributors in the State and
14to persons without the State, as may be permitted by law. A
15person who, prior to the effective date of this amendatory Act
16of the 95th General Assembly, is a holder of a first-class
17wine-maker's license and annually produces more than 25,000
18gallons of its own wine and who distributes its wine to
19licensed retailers shall cease this practice on or before July
201, 2008 in compliance with this amendatory Act of the 95th
21General Assembly.
22    Class 7. A second-class wine-maker's license shall allow
23the manufacture of between 50,000 and 150,000 gallons of wine
24per year, and the storage and sale of such wine to distributors
25in this State and to persons without the State, as may be
26permitted by law. A person who, prior to the effective date of

 

 

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1this amendatory Act of the 95th General Assembly, is a holder
2of a second-class wine-maker's license and annually produces
3more than 25,000 gallons of its own wine and who distributes
4its wine to licensed retailers shall cease this practice on or
5before July 1, 2008 in compliance with this amendatory Act of
6the 95th General Assembly.
7    Class 8. A limited wine-manufacturer may make sales and
8deliveries not to exceed 40,000 gallons of wine per year to
9distributors, and to non-licensees in accordance with the
10provisions of this Act.
11    Class 9. A craft distiller license shall allow the
12manufacture of up to 15,000 5,000 gallons of spirits by
13distillation per year and the storage of such spirits. If a
14craft distiller licensee is not affiliated with any other
15manufacturer, then the craft distiller licensee may sell such
16spirits to distributors in this State and non-licensees to the
17extent permitted by any exemption approved by the Commission
18pursuant to Section 6-4 of this Act.
19    Any craft distiller licensed under this Act who on the
20effective date of this amendatory Act of the 96th General
21Assembly was licensed as a distiller and manufactured no more
22spirits than permitted by this Section shall not be required to
23pay the initial licensing fee.
24    (a-1) A manufacturer which is licensed in this State to
25make sales or deliveries of alcoholic liquor and which enlists
26agents, representatives, or individuals acting on its behalf

 

 

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1who contact licensed retailers on a regular and continual basis
2in this State must register those agents, representatives, or
3persons acting on its behalf with the State Commission.
4    Registration of agents, representatives, or persons acting
5on behalf of a manufacturer is fulfilled by submitting a form
6to the Commission. The form shall be developed by the
7Commission and shall include the name and address of the
8applicant, the name and address of the manufacturer he or she
9represents, the territory or areas assigned to sell to or
10discuss pricing terms of alcoholic liquor, and any other
11questions deemed appropriate and necessary. All statements in
12the forms required to be made by law or by rule shall be deemed
13material, and any person who knowingly misstates any material
14fact under oath in an application is guilty of a Class B
15misdemeanor. Fraud, misrepresentation, false statements,
16misleading statements, evasions, or suppression of material
17facts in the securing of a registration are grounds for
18suspension or revocation of the registration.
19    (b) A distributor's license shall allow the wholesale
20purchase and storage of alcoholic liquors and sale of alcoholic
21liquors to licensees in this State and to persons without the
22State, as may be permitted by law.
23    (c) An importing distributor's license may be issued to and
24held by those only who are duly licensed distributors, upon the
25filing of an application by a duly licensed distributor, with
26the Commission and the Commission shall, without the payment of

 

 

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1any fee, immediately issue such importing distributor's
2license to the applicant, which shall allow the importation of
3alcoholic liquor by the licensee into this State from any point
4in the United States outside this State, and the purchase of
5alcoholic liquor in barrels, casks or other bulk containers and
6the bottling of such alcoholic liquors before resale thereof,
7but all bottles or containers so filled shall be sealed,
8labeled, stamped and otherwise made to comply with all
9provisions, rules and regulations governing manufacturers in
10the preparation and bottling of alcoholic liquors. The
11importing distributor's license shall permit such licensee to
12purchase alcoholic liquor from Illinois licensed non-resident
13dealers and foreign importers only.
14    (d) A retailer's license shall allow the licensee to sell
15and offer for sale at retail, only in the premises specified in
16the license, alcoholic liquor for use or consumption, but not
17for resale in any form. Nothing in this amendatory Act of the
1895th General Assembly shall deny, limit, remove, or restrict
19the ability of a holder of a retailer's license to transfer,
20deliver, or ship alcoholic liquor to the purchaser for use or
21consumption subject to any applicable local law or ordinance.
22Any retail license issued to a manufacturer shall only permit
23the manufacturer to sell beer at retail on the premises
24actually occupied by the manufacturer. For the purpose of
25further describing the type of business conducted at a retail
26licensed premises, a retailer's licensee may be designated by

 

 

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1the State Commission as (i) an on premise consumption retailer,
2(ii) an off premise sale retailer, or (iii) a combined on
3premise consumption and off premise sale retailer.
4    Notwithstanding any other provision of this subsection
5(d), a retail licensee may sell alcoholic liquors to a special
6event retailer licensee for resale to the extent permitted
7under subsection (e).
8    (e) A special event retailer's license (not-for-profit)
9shall permit the licensee to purchase alcoholic liquors from an
10Illinois licensed distributor (unless the licensee purchases
11less than $500 of alcoholic liquors for the special event, in
12which case the licensee may purchase the alcoholic liquors from
13a licensed retailer) and shall allow the licensee to sell and
14offer for sale, at retail, alcoholic liquors for use or
15consumption, but not for resale in any form and only at the
16location and on the specific dates designated for the special
17event in the license. An applicant for a special event retailer
18license must (i) furnish with the application: (A) a resale
19number issued under Section 2c of the Retailers' Occupation Tax
20Act or evidence that the applicant is registered under Section
212a of the Retailers' Occupation Tax Act, (B) a current, valid
22exemption identification number issued under Section 1g of the
23Retailers' Occupation Tax Act, and a certification to the
24Commission that the purchase of alcoholic liquors will be a
25tax-exempt purchase, or (C) a statement that the applicant is
26not registered under Section 2a of the Retailers' Occupation

 

 

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

 

 

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1operated on an electric, gas or steam railway regularly
2operated by a common carrier in this State, but shall not
3permit the sale for resale of any alcoholic liquors to any
4licensee within this State. A license shall be obtained for
5each car in which such sales are made.
6    (g) A boat license shall allow the sale of alcoholic liquor
7in individual drinks, on any passenger boat regularly operated
8as a common carrier on navigable waters in this State or on any
9riverboat operated under the Riverboat Gambling Act, which boat
10or riverboat maintains a public dining room or restaurant
11thereon.
12    (h) A non-beverage user's license shall allow the licensee
13to purchase alcoholic liquor from a licensed manufacturer or
14importing distributor, without the imposition of any tax upon
15the business of such licensed manufacturer or importing
16distributor as to such alcoholic liquor to be used by such
17licensee solely for the non-beverage purposes set forth in
18subsection (a) of Section 8-1 of this Act, and such licenses
19shall be divided and classified and shall permit the purchase,
20possession and use of limited and stated quantities of
21alcoholic liquor as follows:
22Class 1, not to exceed ......................... 500 gallons
23Class 2, not to exceed ....................... 1,000 gallons
24Class 3, not to exceed ....................... 5,000 gallons
25Class 4, not to exceed ...................... 10,000 gallons
26Class 5, not to exceed ....................... 50,000 gallons

 

 

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1    (i) A wine-maker's premises license shall allow a licensee
2that concurrently holds a first-class wine-maker's license to
3sell and offer for sale at retail in the premises specified in
4such license not more than 50,000 gallons of the first-class
5wine-maker's wine that is made at the first-class wine-maker's
6licensed premises per year for use or consumption, but not for
7resale in any form. A wine-maker's premises license shall allow
8a licensee who concurrently holds a second-class wine-maker's
9license to sell and offer for sale at retail in the premises
10specified in such license up to 100,000 gallons of the
11second-class wine-maker's wine that is made at the second-class
12wine-maker's licensed premises per year for use or consumption
13but not for resale in any form. A wine-maker's premises license
14shall allow a licensee that concurrently holds a first-class
15wine-maker's license or a second-class wine-maker's license to
16sell and offer for sale at retail at the premises specified in
17the wine-maker's premises license, for use or consumption but
18not for resale in any form, any beer, wine, and spirits
19purchased from a licensed distributor. Upon approval from the
20State Commission, a wine-maker's premises license shall allow
21the licensee to sell and offer for sale at (i) the wine-maker's
22licensed premises and (ii) at up to 2 additional locations for
23use and consumption and not for resale. Each location shall
24require additional licensing per location as specified in
25Section 5-3 of this Act. A wine-maker's premises licensee shall
26secure liquor liability insurance coverage in an amount at

 

 

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1least equal to the maximum liability amounts set forth in
2subsection (a) of Section 6-21 of this Act.
3    (j) An airplane license shall permit the licensee to import
4alcoholic liquors into this State from any point in the United
5States outside this State and to store such alcoholic liquors
6in this State; to make wholesale purchases of alcoholic liquors
7directly from manufacturers, foreign importers, distributors
8and importing distributors from within or outside this State;
9and to store such alcoholic liquors in this State; provided
10that the above powers may be exercised only in connection with
11the importation, purchase or storage of alcoholic liquors to be
12sold or dispensed on an airplane; and provided further, that
13airplane licensees exercising the above powers shall be subject
14to all provisions of Article VIII of this Act as applied to
15importing distributors. An airplane licensee shall also permit
16the sale or dispensing of alcoholic liquors on any passenger
17airplane regularly operated by a common carrier in this State,
18but shall not permit the sale for resale of any alcoholic
19liquors to any licensee within this State. A single airplane
20license shall be required of an airline company if liquor
21service is provided on board aircraft in this State. The annual
22fee for such license shall be as determined in Section 5-3.
23    (k) A foreign importer's license shall permit such licensee
24to purchase alcoholic liquor from Illinois licensed
25non-resident dealers only, and to import alcoholic liquor other
26than in bulk from any point outside the United States and to

 

 

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1sell such alcoholic liquor to Illinois licensed importing
2distributors and to no one else in Illinois; provided that (i)
3the foreign importer registers with the State Commission every
4brand of alcoholic liquor that it proposes to sell to Illinois
5licensees during the license period, (ii) the foreign importer
6complies with all of the provisions of Section 6-9 of this Act
7with respect to registration of such Illinois licensees as may
8be granted the right to sell such brands at wholesale, and
9(iii) the foreign importer complies with the provisions of
10Sections 6-5 and 6-6 of this Act to the same extent that these
11provisions apply to manufacturers.
12    (l) (i) A broker's license shall be required of all persons
13who solicit orders for, offer to sell or offer to supply
14alcoholic liquor to retailers in the State of Illinois, or who
15offer to retailers to ship or cause to be shipped or to make
16contact with distillers, rectifiers, brewers or manufacturers
17or any other party within or without the State of Illinois in
18order that alcoholic liquors be shipped to a distributor,
19importing distributor or foreign importer, whether such
20solicitation or offer is consummated within or without the
21State of Illinois.
22    No holder of a retailer's license issued by the Illinois
23Liquor Control Commission shall purchase or receive any
24alcoholic liquor, the order for which was solicited or offered
25for sale to such retailer by a broker unless the broker is the
26holder of a valid broker's license.

 

 

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1    The broker shall, upon the acceptance by a retailer of the
2broker's solicitation of an order or offer to sell or supply or
3deliver or have delivered alcoholic liquors, promptly forward
4to the Illinois Liquor Control Commission a notification of
5said transaction in such form as the Commission may by
6regulations prescribe.
7    (ii) A broker's license shall be required of a person
8within this State, other than a retail licensee, who, for a fee
9or commission, promotes, solicits, or accepts orders for
10alcoholic liquor, for use or consumption and not for resale, to
11be shipped from this State and delivered to residents outside
12of this State by an express company, common carrier, or
13contract carrier. This Section does not apply to any person who
14promotes, solicits, or accepts orders for wine as specifically
15authorized in Section 6-29 of this Act.
16    A broker's license under this subsection (l) shall not
17entitle the holder to buy or sell any alcoholic liquors for his
18own account or to take or deliver title to such alcoholic
19liquors.
20    This subsection (l) shall not apply to distributors,
21employees of distributors, or employees of a manufacturer who
22has registered the trademark, brand or name of the alcoholic
23liquor pursuant to Section 6-9 of this Act, and who regularly
24sells such alcoholic liquor in the State of Illinois only to
25its registrants thereunder.
26    Any agent, representative, or person subject to

 

 

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1registration pursuant to subsection (a-1) of this Section shall
2not be eligible to receive a broker's license.
3    (m) A non-resident dealer's license shall permit such
4licensee to ship into and warehouse alcoholic liquor into this
5State from any point outside of this State, and to sell such
6alcoholic liquor to Illinois licensed foreign importers and
7importing distributors and to no one else in this State;
8provided that (i) said non-resident dealer shall register with
9the Illinois Liquor Control Commission each and every brand of
10alcoholic liquor which it proposes to sell to Illinois
11licensees during the license period, (ii) it shall comply with
12all of the provisions of Section 6-9 hereof with respect to
13registration of such Illinois licensees as may be granted the
14right to sell such brands at wholesale, and (iii) the
15non-resident dealer shall comply with the provisions of
16Sections 6-5 and 6-6 of this Act to the same extent that these
17provisions apply to manufacturers.
18    (n) A brew pub license shall allow the licensee to
19manufacture beer only on the premises specified in the license,
20to make sales of the beer manufactured on the premises to
21importing distributors, distributors, and to non-licensees for
22use and consumption, to store the beer upon the premises, and
23to sell and offer for sale at retail from the licensed
24premises, provided that a brew pub licensee shall not sell for
25off-premises consumption more than 50,000 gallons per year.
26    (o) A caterer retailer license shall allow the holder to

 

 

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

 

 

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1    (r) A winery shipper's license shall allow a person with a
2first-class or second-class wine manufacturer's license, a
3first-class or second-class wine-maker's license, or a limited
4wine manufacturer's license or who is licensed to make wine
5under the laws of another state to ship wine made by that
6licensee directly to a resident of this State who is 21 years
7of age or older for that resident's personal use and not for
8resale. Prior to receiving a winery shipper's license, an
9applicant for the license must provide the Commission with a
10true copy of its current license in any state in which it is
11licensed as a manufacturer of wine. An applicant for a winery
12shipper's license must also complete an application form that
13provides any other information the Commission deems necessary.
14The application form shall include an acknowledgement
15consenting to the jurisdiction of the Commission, the Illinois
16Department of Revenue, and the courts of this State concerning
17the enforcement of this Act and any related laws, rules, and
18regulations, including authorizing the Department of Revenue
19and the Commission to conduct audits for the purpose of
20ensuring compliance with this amendatory Act.
21    A winery shipper licensee must pay to the Department of
22Revenue the State liquor gallonage tax under Section 8-1 for
23all wine that is sold by the licensee and shipped to a person
24in this State. For the purposes of Section 8-1, a winery
25shipper licensee shall be taxed in the same manner as a
26manufacturer of wine. A licensee who is not otherwise required

 

 

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1to register under the Retailers' Occupation Tax Act must
2register under the Use Tax Act to collect and remit use tax to
3the Department of Revenue for all gallons of wine that are sold
4by the licensee and shipped to persons in this State. If a
5licensee fails to remit the tax imposed under this Act in
6accordance with the provisions of Article VIII of this Act, the
7winery shipper's license shall be revoked in accordance with
8the provisions of Article VII of this Act. If a licensee fails
9to properly register and remit tax under the Use Tax Act or the
10Retailers' Occupation Tax Act for all wine that is sold by the
11winery shipper and shipped to persons in this State, the winery
12shipper's license shall be revoked in accordance with the
13provisions of Article VII of this Act.
14    A winery shipper licensee must collect, maintain, and
15submit to the Commission on a semi-annual basis the total
16number of cases per resident of wine shipped to residents of
17this State. A winery shipper licensed under this subsection (r)
18must comply with the requirements of Section 6-29 of this
19amendatory Act.
20(Source: P.A. 95-331, eff. 8-21-07; 95-634, eff. 6-1-08;
2195-769, eff. 7-29-08; 96-1367, eff. 7-28-10.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.