Sen. Heather A. Steans

Filed: 3/9/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 665

2    AMENDMENT NO. ______. Amend Senate Bill 665 by replacing
3everything after the enacting clause with the following:
 
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,

 

 

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1    (e) Special Event Retailer's license (not-for-profit),
2    (f) Railroad license,
3    (g) Boat license,
4    (h) Non-Beverage User's license,
5    (i) Wine-maker's premises license,
6    (j) Airplane license,
7    (k) Foreign importer's license,
8    (l) Broker's license,
9    (m) Non-resident dealer's license,
10    (n) Brew Pub license,
11    (o) Auction liquor license,
12    (p) Caterer retailer license,
13    (q) Special use permit license,
14    (r) Winery shipper's license.
15    No person, firm, partnership, corporation, or other legal
16business entity that is engaged in the manufacturing of wine
17may concurrently obtain and hold a wine-maker's license and a
18wine manufacturer's license.
19    (a) A manufacturer's license shall allow the manufacture,
20importation in bulk, storage, distribution and sale of
21alcoholic liquor to persons without the State, as may be
22permitted by law and to licensees in this State as follows:
23    Class 1. A Distiller may make sales and deliveries of
24alcoholic liquor to distillers, rectifiers, importing
25distributors, distributors and non-beverage users and to no
26other licensees.

 

 

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1    Class 2. A Rectifier, who is not a distiller, as defined
2herein, may make sales and deliveries of alcoholic liquor to
3rectifiers, importing distributors, distributors, retailers
4and non-beverage users and to no other licensees.
5    Class 3. A Brewer may make sales and deliveries of beer to
6importing distributors, distributors, and to non-licensees,
7and to retailers provided the brewer obtains an importing
8distributor's license or distributor's license in accordance
9with the provisions of this Act.
10    Class 4. A first class wine-manufacturer may make sales and
11deliveries of up to 50,000 gallons of wine to manufacturers,
12importing distributors and distributors, and to no other
13licensees.
14    Class 5. A second class Wine manufacturer may make sales
15and deliveries of more than 50,000 gallons of wine to
16manufacturers, importing distributors and distributors and to
17no other licensees.
18    Class 6. A first-class wine-maker's license shall allow the
19manufacture of up to 50,000 gallons of wine per year, and the
20storage and sale of such wine to distributors in the State and
21to persons without the State, as may be permitted by law. A
22person who, prior to the effective date of this amendatory Act
23of the 95th General Assembly, is a holder of a first-class
24wine-maker's license and annually produces more than 25,000
25gallons of its own wine and who distributes its wine to
26licensed retailers shall cease this practice on or before July

 

 

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

 

 

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1effective date of this amendatory Act of the 96th General
2Assembly was licensed as a distiller and manufactured no more
3spirits than permitted by this Section shall not be required to
4pay the initial licensing fee.
5    (a-1) A manufacturer which is licensed in this State to
6make sales or deliveries of alcoholic liquor and which enlists
7agents, representatives, or individuals acting on its behalf
8who contact licensed retailers on a regular and continual basis
9in this State must register those agents, representatives, or
10persons acting on its behalf with the State Commission.
11    Registration of agents, representatives, or persons acting
12on behalf of a manufacturer is fulfilled by submitting a form
13to the Commission. The form shall be developed by the
14Commission and shall include the name and address of the
15applicant, the name and address of the manufacturer he or she
16represents, the territory or areas assigned to sell to or
17discuss pricing terms of alcoholic liquor, and any other
18questions deemed appropriate and necessary. All statements in
19the forms required to be made by law or by rule shall be deemed
20material, and any person who knowingly misstates any material
21fact under oath in an application is guilty of a Class B
22misdemeanor. Fraud, misrepresentation, false statements,
23misleading statements, evasions, or suppression of material
24facts in the securing of a registration are grounds for
25suspension or revocation of the registration.
26    (b) A distributor's license shall allow the wholesale

 

 

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1purchase and storage of alcoholic liquors and sale of alcoholic
2liquors to licensees in this State and to persons without the
3State, as may be permitted by law.
4    (c) An importing distributor's license may be issued to and
5held by those only who are duly licensed distributors, upon the
6filing of an application by a duly licensed distributor, with
7the Commission and the Commission shall, without the payment of
8any fee, immediately issue such importing distributor's
9license to the applicant, which shall allow the importation of
10alcoholic liquor by the licensee into this State from any point
11in the United States outside this State, and the purchase of
12alcoholic liquor in barrels, casks or other bulk containers and
13the bottling of such alcoholic liquors before resale thereof,
14but all bottles or containers so filled shall be sealed,
15labeled, stamped and otherwise made to comply with all
16provisions, rules and regulations governing manufacturers in
17the preparation and bottling of alcoholic liquors. The
18importing distributor's license shall permit such licensee to
19purchase alcoholic liquor from Illinois licensed non-resident
20dealers and foreign importers only.
21    (d) A retailer's license shall allow the licensee to sell
22and offer for sale at retail, only in the premises specified in
23the license, alcoholic liquor for use or consumption, but not
24for resale in any form. Nothing in this amendatory Act of the
2595th General Assembly shall deny, limit, remove, or restrict
26the ability of a holder of a retailer's license to transfer,

 

 

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1deliver, or ship alcoholic liquor to the purchaser for use or
2consumption subject to any applicable local law or ordinance.
3Any retail license issued to a manufacturer shall only permit
4the manufacturer to sell beer at retail on the premises
5actually occupied by the manufacturer. For the purpose of
6further describing the type of business conducted at a retail
7licensed premises, a retailer's licensee may be designated by
8the State Commission as (i) an on premise consumption retailer,
9(ii) an off premise sale retailer, or (iii) a combined on
10premise consumption and off premise sale retailer.
11    Notwithstanding any other provision of this subsection
12(d), a retail licensee may sell alcoholic liquors to a special
13event retailer licensee for resale to the extent permitted
14under subsection (e).
15    (e) A special event retailer's license (not-for-profit)
16shall permit the licensee to purchase alcoholic liquors from an
17Illinois licensed distributor (unless the licensee purchases
18less than $500 of alcoholic liquors for the special event, in
19which case the licensee may purchase the alcoholic liquors from
20a licensed retailer) and shall allow the licensee to sell and
21offer for sale, at retail, alcoholic liquors for use or
22consumption, but not for resale in any form and only at the
23location and on the specific dates designated for the special
24event in the license. An applicant for a special event retailer
25license must (i) furnish with the application: (A) a resale
26number issued under Section 2c of the Retailers' Occupation Tax

 

 

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1Act or evidence that the applicant is registered under Section
22a of the Retailers' Occupation Tax Act, (B) a current, valid
3exemption identification number issued under Section 1g of the
4Retailers' Occupation Tax Act, and a certification to the
5Commission that the purchase of alcoholic liquors will be a
6tax-exempt purchase, or (C) a statement that the applicant is
7not registered under Section 2a of the Retailers' Occupation
8Tax Act, does not hold a resale number under Section 2c of the
9Retailers' Occupation Tax Act, and does not hold an exemption
10number under Section 1g of the Retailers' Occupation Tax Act,
11in which event the Commission shall set forth on the special
12event retailer's license a statement to that effect; (ii)
13submit with the application proof satisfactory to the State
14Commission that the applicant will provide dram shop liability
15insurance in the maximum limits; and (iii) show proof
16satisfactory to the State Commission that the applicant has
17obtained local authority approval.
18    (f) A railroad license shall permit the licensee to import
19alcoholic liquors into this State from any point in the United
20States outside this State and to store such alcoholic liquors
21in this State; to make wholesale purchases of alcoholic liquors
22directly from manufacturers, foreign importers, distributors
23and importing distributors from within or outside this State;
24and to store such alcoholic liquors in this State; provided
25that the above powers may be exercised only in connection with
26the importation, purchase or storage of alcoholic liquors to be

 

 

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

 

 

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

 

 

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

 

 

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1license shall be required of an airline company if liquor
2service is provided on board aircraft in this State. The annual
3fee for such license shall be as determined in Section 5-3.
4    (k) A foreign importer's license shall permit such licensee
5to purchase alcoholic liquor from Illinois licensed
6non-resident dealers only, and to import alcoholic liquor other
7than in bulk from any point outside the United States and to
8sell such alcoholic liquor to Illinois licensed importing
9distributors and to no one else in Illinois; provided that (i)
10the foreign importer registers with the State Commission every
11brand of alcoholic liquor that it proposes to sell to Illinois
12licensees during the license period, (ii) the foreign importer
13complies with all of the provisions of Section 6-9 of this Act
14with respect to registration of such Illinois licensees as may
15be granted the right to sell such brands at wholesale, and
16(iii) the foreign importer complies with the provisions of
17Sections 6-5 and 6-6 of this Act to the same extent that these
18provisions apply to manufacturers.
19    (l) (i) A broker's license shall be required of all persons
20who solicit orders for, offer to sell or offer to supply
21alcoholic liquor to retailers in the State of Illinois, or who
22offer to retailers to ship or cause to be shipped or to make
23contact with distillers, rectifiers, brewers or manufacturers
24or any other party within or without the State of Illinois in
25order that alcoholic liquors be shipped to a distributor,
26importing distributor or foreign importer, whether such

 

 

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

 

 

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

 

 

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1to make sales of the beer manufactured on the premises to
2importing distributors, distributors, and to non-licensees for
3use and consumption, to store the beer upon the premises, and
4to sell and offer for sale at retail from the licensed
5premises, provided that a brew pub licensee shall not sell for
6off-premises consumption more than 50,000 gallons per year.
7    (o) A caterer retailer license shall allow the holder to
8serve alcoholic liquors as an incidental part of a food service
9that serves prepared meals which excludes the serving of snacks
10as the primary meal, either on or off-site whether licensed or
11unlicensed.
12    (p) An auction liquor license shall allow the licensee to
13sell and offer for sale at auction wine and spirits for use or
14consumption, or for resale by an Illinois liquor licensee in
15accordance with provisions of this Act. An auction liquor
16license will be issued to a person and it will permit the
17auction liquor licensee to hold the auction anywhere in the
18State. An auction liquor license must be obtained for each
19auction at least 14 days in advance of the auction date.
20    (q) A special use permit license shall allow an Illinois
21licensed retailer to transfer a portion of its alcoholic liquor
22inventory from its retail licensed premises to the premises
23specified in the license hereby created, and to sell or offer
24for sale at retail, only in the premises specified in the
25license hereby created, the transferred alcoholic liquor for
26use or consumption, but not for resale in any form. A special

 

 

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1use permit license may be granted for the following time
2periods: one day or less; 2 or more days to a maximum of 15 days
3per location in any 12 month period. An applicant for the
4special use permit license must also submit with the
5application proof satisfactory to the State Commission that the
6applicant will provide dram shop liability insurance to the
7maximum limits and have local authority approval.
8    (r) A winery shipper's license shall allow a person with a
9first-class or second-class wine manufacturer's license, a
10first-class or second-class wine-maker's license, or a limited
11wine manufacturer's license or who is licensed to make wine
12under the laws of another state to ship wine made by that
13licensee directly to a resident of this State who is 21 years
14of age or older for that resident's personal use and not for
15resale. Prior to receiving a winery shipper's license, an
16applicant for the license must provide the Commission with a
17true copy of its current license in any state in which it is
18licensed as a manufacturer of wine. An applicant for a winery
19shipper's license must also complete an application form that
20provides any other information the Commission deems necessary.
21The application form shall include an acknowledgement
22consenting to the jurisdiction of the Commission, the Illinois
23Department of Revenue, and the courts of this State concerning
24the enforcement of this Act and any related laws, rules, and
25regulations, including authorizing the Department of Revenue
26and the Commission to conduct audits for the purpose of

 

 

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1ensuring compliance with this amendatory Act.
2    A winery shipper licensee must pay to the Department of
3Revenue the State liquor gallonage tax under Section 8-1 for
4all wine that is sold by the licensee and shipped to a person
5in this State. For the purposes of Section 8-1, a winery
6shipper licensee shall be taxed in the same manner as a
7manufacturer of wine. A licensee who is not otherwise required
8to register under the Retailers' Occupation Tax Act must
9register under the Use Tax Act to collect and remit use tax to
10the Department of Revenue for all gallons of wine that are sold
11by the licensee and shipped to persons in this State. If a
12licensee fails to remit the tax imposed under this Act in
13accordance with the provisions of Article VIII of this Act, the
14winery shipper's license shall be revoked in accordance with
15the provisions of Article VII of this Act. If a licensee fails
16to properly register and remit tax under the Use Tax Act or the
17Retailers' Occupation Tax Act for all wine that is sold by the
18winery shipper and shipped to persons in this State, the winery
19shipper's license shall be revoked in accordance with the
20provisions of Article VII of this Act.
21    A winery shipper licensee must collect, maintain, and
22submit to the Commission on a semi-annual basis the total
23number of cases per resident of wine shipped to residents of
24this State. A winery shipper licensed under this subsection (r)
25must comply with the requirements of Section 6-29 of this
26amendatory Act.

 

 

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1(Source: P.A. 95-331, eff. 8-21-07; 95-634, eff. 6-1-08;
295-769, eff. 7-29-08; 96-1367, eff. 7-28-10.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.".