SB0754 EngrossedLRB097 04475 ASK 44514 b

1    AN ACT concerning liquor.
 
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 Sections 1-3.33, 3-12, 5-1, and 5-3 and by adding
6Section 1-3.38 as follows:
 
7    (235 ILCS 5/1-3.33)
8    Sec. 1-3.33. "Brew Pub" means a person who manufactures
9beer only at a designated premises to make sales to importing
10distributors, distributors, and to non-licensees for use and
11consumption only, who stores beer at the designated premises,
12and who is allowed to sell at retail from the licensed
13premises, provided that a brew pub licensee shall not sell for
14off-premises consumption more than 50,000 gallons per year. A
15person who holds a brew pub license may simultaneously hold a
16craft brewer license if he or she otherwise qualifies for the
17craft brewer license and the craft brewer license is for a
18location separate from the brew pub's licensed premises.
19(Source: P.A. 90-432, eff. 1-1-98.)
 
20    (235 ILCS 5/1-3.38 new)
21    Sec. 1-3.38. "Craft brewer" means a licensed brewer or
22licensed non-resident dealer who manufactures up to 465,000

 

 

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1gallons of beer per year and who may make sales and deliveries
2to importing distributors and distributors and to retail
3licensees in accordance with the conditions set forth in
4paragraph (18) of subsection (a) of Section 3-12 of this Act.
 
5    (235 ILCS 5/3-12)
6    Sec. 3-12. Powers and duties of State Commission.
7    (a) The State commission shall have the following powers,
8functions and duties:
9        (1) To receive applications and to issue licenses to
10    manufacturers, foreign importers, importing distributors,
11    distributors, non-resident dealers, on premise consumption
12    retailers, off premise sale retailers, special event
13    retailer licensees, special use permit licenses, auction
14    liquor licenses, brew pubs, caterer retailers,
15    non-beverage users, railroads, including owners and
16    lessees of sleeping, dining and cafe cars, airplanes,
17    boats, brokers, and wine maker's premises licensees in
18    accordance with the provisions of this Act, and to suspend
19    or revoke such licenses upon the State commission's
20    determination, upon notice after hearing, that a licensee
21    has violated any provision of this Act or any rule or
22    regulation issued pursuant thereto and in effect for 30
23    days prior to such violation. Except in the case of an
24    action taken pursuant to a violation of Section 6-3, 6-5,
25    or 6-9, any action by the State Commission to suspend or

 

 

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1    revoke a licensee's license may be limited to the license
2    for the specific premises where the violation occurred.
3        In lieu of suspending or revoking a license, the
4    commission may impose a fine, upon the State commission's
5    determination and notice after hearing, that a licensee has
6    violated any provision of this Act or any rule or
7    regulation issued pursuant thereto and in effect for 30
8    days prior to such violation. The fine imposed under this
9    paragraph may not exceed $500 for each violation. Each day
10    that the activity, which gave rise to the original fine,
11    continues is a separate violation. The maximum fine that
12    may be levied against any licensee, for the period of the
13    license, shall not exceed $20,000. The maximum penalty that
14    may be imposed on a licensee for selling a bottle of
15    alcoholic liquor with a foreign object in it or serving
16    from a bottle of alcoholic liquor with a foreign object in
17    it shall be the destruction of that bottle of alcoholic
18    liquor for the first 10 bottles so sold or served from by
19    the licensee. For the eleventh bottle of alcoholic liquor
20    and for each third bottle thereafter sold or served from by
21    the licensee with a foreign object in it, the maximum
22    penalty that may be imposed on the licensee is the
23    destruction of the bottle of alcoholic liquor and a fine of
24    up to $50.
25        (2) To adopt such rules and regulations consistent with
26    the provisions of this Act which shall be necessary to

 

 

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1    carry on its functions and duties to the end that the
2    health, safety and welfare of the People of the State of
3    Illinois shall be protected and temperance in the
4    consumption of alcoholic liquors shall be fostered and
5    promoted and to distribute copies of such rules and
6    regulations to all licensees affected thereby.
7        (3) To call upon other administrative departments of
8    the State, county and municipal governments, county and
9    city police departments and upon prosecuting officers for
10    such information and assistance as it deems necessary in
11    the performance of its duties.
12        (4) To recommend to local commissioners rules and
13    regulations, not inconsistent with the law, for the
14    distribution and sale of alcoholic liquors throughout the
15    State.
16        (5) To inspect, or cause to be inspected, any premises
17    in this State where alcoholic liquors are manufactured,
18    distributed, warehoused, or sold.
19        (5.1) Upon receipt of a complaint or upon having
20    knowledge that any person is engaged in business as a
21    manufacturer, importing distributor, distributor, or
22    retailer without a license or valid license, to notify the
23    local liquor authority, file a complaint with the State's
24    Attorney's Office of the county where the incident
25    occurred, or initiate an investigation with the
26    appropriate law enforcement officials.

 

 

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1        (5.2) To issue a cease and desist notice to persons
2    shipping alcoholic liquor into this State from a point
3    outside of this State if the shipment is in violation of
4    this Act.
5        (5.3) To receive complaints from licensees, local
6    officials, law enforcement agencies, organizations, and
7    persons stating that any licensee has been or is violating
8    any provision of this Act or the rules and regulations
9    issued pursuant to this Act. Such complaints shall be in
10    writing, signed and sworn to by the person making the
11    complaint, and shall state with specificity the facts in
12    relation to the alleged violation. If the Commission has
13    reasonable grounds to believe that the complaint
14    substantially alleges a violation of this Act or rules and
15    regulations adopted pursuant to this Act, it shall conduct
16    an investigation. If, after conducting an investigation,
17    the Commission is satisfied that the alleged violation did
18    occur, it shall proceed with disciplinary action against
19    the licensee as provided in this Act.
20        (6) To hear and determine appeals from orders of a
21    local commission in accordance with the provisions of this
22    Act, as hereinafter set forth. Hearings under this
23    subsection shall be held in Springfield or Chicago, at
24    whichever location is the more convenient for the majority
25    of persons who are parties to the hearing.
26        (7) The commission shall establish uniform systems of

 

 

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1    accounts to be kept by all retail licensees having more
2    than 4 employees, and for this purpose the commission may
3    classify all retail licensees having more than 4 employees
4    and establish a uniform system of accounts for each class
5    and prescribe the manner in which such accounts shall be
6    kept. The commission may also prescribe the forms of
7    accounts to be kept by all retail licensees having more
8    than 4 employees, including but not limited to accounts of
9    earnings and expenses and any distribution, payment, or
10    other distribution of earnings or assets, and any other
11    forms, records and memoranda which in the judgment of the
12    commission may be necessary or appropriate to carry out any
13    of the provisions of this Act, including but not limited to
14    such forms, records and memoranda as will readily and
15    accurately disclose at all times the beneficial ownership
16    of such retail licensed business. The accounts, forms,
17    records and memoranda shall be available at all reasonable
18    times for inspection by authorized representatives of the
19    State commission or by any local liquor control
20    commissioner or his or her authorized representative. The
21    commission, may, from time to time, alter, amend or repeal,
22    in whole or in part, any uniform system of accounts, or the
23    form and manner of keeping accounts.
24        (8) In the conduct of any hearing authorized to be held
25    by the commission, to appoint, at the commission's
26    discretion, hearing officers to conduct hearings involving

 

 

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1    complex issues or issues that will require a protracted
2    period of time to resolve, to examine, or cause to be
3    examined, under oath, any licensee, and to examine or cause
4    to be examined the books and records of such licensee; to
5    hear testimony and take proof material for its information
6    in the discharge of its duties hereunder; to administer or
7    cause to be administered oaths; for any such purpose to
8    issue subpoena or subpoenas to require the attendance of
9    witnesses and the production of books, which shall be
10    effective in any part of this State, and to adopt rules to
11    implement its powers under this paragraph (8).
12        Any Circuit Court may by order duly entered, require
13    the attendance of witnesses and the production of relevant
14    books subpoenaed by the State commission and the court may
15    compel obedience to its order by proceedings for contempt.
16        (9) To investigate the administration of laws in
17    relation to alcoholic liquors in this and other states and
18    any foreign countries, and to recommend from time to time
19    to the Governor and through him or her to the legislature
20    of this State, such amendments to this Act, if any, as it
21    may think desirable and as will serve to further the
22    general broad purposes contained in Section 1-2 hereof.
23        (10) To adopt such rules and regulations consistent
24    with the provisions of this Act which shall be necessary
25    for the control, sale or disposition of alcoholic liquor
26    damaged as a result of an accident, wreck, flood, fire or

 

 

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1    other similar occurrence.
2        (11) To develop industry educational programs related
3    to responsible serving and selling, particularly in the
4    areas of overserving consumers and illegal underage
5    purchasing and consumption of alcoholic beverages.
6        (11.1) To license persons providing education and
7    training to alcohol beverage sellers and servers under the
8    Beverage Alcohol Sellers and Servers Education and
9    Training (BASSET) programs and to develop and administer a
10    public awareness program in Illinois to reduce or eliminate
11    the illegal purchase and consumption of alcoholic beverage
12    products by persons under the age of 21. Application for a
13    license shall be made on forms provided by the State
14    Commission.
15        (12) To develop and maintain a repository of license
16    and regulatory information.
17        (13) On or before January 15, 1994, the Commission
18    shall issue a written report to the Governor and General
19    Assembly that is to be based on a comprehensive study of
20    the impact on and implications for the State of Illinois of
21    Section 1926 of the Federal ADAMHA Reorganization Act of
22    1992 (Public Law 102-321). This study shall address the
23    extent to which Illinois currently complies with the
24    provisions of P.L. 102-321 and the rules promulgated
25    pursuant thereto.
26        As part of its report, the Commission shall provide the

 

 

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1    following essential information:
2            (i) the number of retail distributors of tobacco
3        products, by type and geographic area, in the State;
4            (ii) the number of reported citations and
5        successful convictions, categorized by type and
6        location of retail distributor, for violation of the
7        Prevention of Tobacco Use by Minors and Sale and
8        Distribution of Tobacco Products Act and the Smokeless
9        Tobacco Limitation Act;
10            (iii) the extent and nature of organized
11        educational and governmental activities that are
12        intended to promote, encourage or otherwise secure
13        compliance with any Illinois laws that prohibit the
14        sale or distribution of tobacco products to minors; and
15            (iv) the level of access and availability of
16        tobacco products to individuals under the age of 18.
17        To obtain the data necessary to comply with the
18    provisions of P.L. 102-321 and the requirements of this
19    report, the Commission shall conduct random, unannounced
20    inspections of a geographically and scientifically
21    representative sample of the State's retail tobacco
22    distributors.
23        The Commission shall consult with the Department of
24    Public Health, the Department of Human Services, the
25    Illinois State Police and any other executive branch
26    agency, and private organizations that may have

 

 

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1    information relevant to this report.
2        The Commission may contract with the Food and Drug
3    Administration of the U.S. Department of Health and Human
4    Services to conduct unannounced investigations of Illinois
5    tobacco vendors to determine compliance with federal laws
6    relating to the illegal sale of cigarettes and smokeless
7    tobacco products to persons under the age of 18.
8        (14) On or before April 30, 2008 and every 2 years
9    thereafter, the Commission shall present a written report
10    to the Governor and the General Assembly that shall be
11    based on a study of the impact of this amendatory Act of
12    the 95th General Assembly on the business of soliciting,
13    selling, and shipping wine from inside and outside of this
14    State directly to residents of this State. As part of its
15    report, the Commission shall provide all of the following
16    information:
17            (A) The amount of State excise and sales tax
18        revenues generated.
19            (B) The amount of licensing fees received.
20            (C) The number of cases of wine shipped from inside
21        and outside of this State directly to residents of this
22        State.
23            (D) The number of alcohol compliance operations
24        conducted.
25            (E) The number of winery shipper's licenses
26        issued.

 

 

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1            (F) The number of each of the following: reported
2        violations; cease and desist notices issued by the
3        Commission; notices of violations issued by the
4        Commission and to the Department of Revenue; and
5        notices and complaints of violations to law
6        enforcement officials, including, without limitation,
7        the Illinois Attorney General and the U.S. Department
8        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
9        (15) As a means to reduce the underage consumption of
10    alcoholic liquors, the Commission shall conduct alcohol
11    compliance operations to investigate whether businesses
12    that are soliciting, selling, and shipping wine from inside
13    or outside of this State directly to residents of this
14    State are licensed by this State or are selling or
15    attempting to sell wine to persons under 21 years of age in
16    violation of this Act.
17        (16) The Commission shall, in addition to notifying any
18    appropriate law enforcement agency, submit notices of
19    complaints or violations of Sections 6-29 and 6-29.1 by
20    persons who do not hold a winery shipper's license under
21    this amendatory Act to the Illinois Attorney General and to
22    the U.S. Department of Treasury's Alcohol and Tobacco Tax
23    and Trade Bureau.
24        (17) (A) A person licensed to make wine under the laws
25    of another state who has a winery shipper's license under
26    this amendatory Act and annually produces less than 25,000

 

 

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1    gallons of wine or a person who has a first-class or
2    second-class wine manufacturer's license, a first-class or
3    second-class wine-maker's license, or a limited wine
4    manufacturer's license under this Act and annually
5    produces less than 25,000 gallons of wine may make
6    application to the Commission for a self-distribution
7    exemption to allow the sale of not more than 5,000 gallons
8    of the exemption holder's wine to retail licensees per
9    year.
10            (B) In the application, which shall be sworn under
11        penalty of perjury, such person shall state (1) the
12        date it was established; (2) its volume of production
13        and sales for each year since its establishment; (3)
14        its efforts to establish distributor relationships;
15        (4) that a self-distribution exemption is necessary to
16        facilitate the marketing of its wine; and (5) that it
17        will comply with the liquor and revenue laws of the
18        United States, this State, and any other state where it
19        is licensed.
20            (C) The Commission shall approve the application
21        for a self-distribution exemption if such person: (1)
22        is in compliance with State revenue and liquor laws;
23        (2) is not a member of any affiliated group that
24        produces more than 25,000 gallons of wine per annum or
25        produces any other alcoholic liquor; (3) will not
26        annually produce for sale more than 25,000 gallons of

 

 

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1        wine; and (4) will not annually sell more than 5,000
2        gallons of its wine to retail licensees.
3            (D) A self-distribution exemption holder shall
4        annually certify to the Commission its production of
5        wine in the previous 12 months and its anticipated
6        production and sales for the next 12 months. The
7        Commission may fine, suspend, or revoke a
8        self-distribution exemption after a hearing if it
9        finds that the exemption holder has made a material
10        misrepresentation in its application, violated a
11        revenue or liquor law of Illinois, exceeded production
12        of 25,000 gallons of wine in any calendar year, or
13        become part of an affiliated group producing more than
14        25,000 gallons of wine or any other alcoholic liquor.
15            (E) Except in hearings for violations of this Act
16        or amendatory Act or a bona fide investigation by duly
17        sworn law enforcement officials, the Commission, or
18        its agents, the Commission shall maintain the
19        production and sales information of a
20        self-distribution exemption holder as confidential and
21        shall not release such information to any person.
22            (F) The Commission shall issue regulations
23        governing self-distribution exemptions consistent with
24        this Section and this Act.
25            (G) Nothing in this subsection (17) shall prohibit
26        a self-distribution exemption holder from entering

 

 

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1        into or simultaneously having a distribution agreement
2        with a licensed Illinois distributor.
3            (H) It is the intent of this subsection (17) to
4        promote and continue orderly markets. The General
5        Assembly finds that in order to preserve Illinois'
6        regulatory distribution system it is necessary to
7        create an exception for smaller makers of wine as their
8        wines are frequently adjusted in varietals, mixes,
9        vintages, and taste to find and create market niches
10        sometimes too small for distributor or importing
11        distributor business strategies. Limited
12        self-distribution rights will afford and allow smaller
13        makers of wine access to the marketplace in order to
14        develop a customer base without impairing the
15        integrity of the 3-tier system.
16        (18) (A) A craft brewer licensee, who must also be
17    either a licensed brewer or licensed non-resident dealer
18    and annually manufacture less than 465,000 gallons of beer,
19    may make application to the Commission for a
20    self-distribution exemption to allow the sale of not more
21    than 232,500 gallons of the exemption holder's beer to
22    retail licensees per year.
23            (B) In the application, which shall be sworn under
24        penalty of perjury, the craft brewer licensee shall
25        state (1) the date it was established; (2) its volume
26        of beer manufactured and sold for each year since its

 

 

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1        establishment; (3) its efforts to establish
2        distributor relationships; (4) that a
3        self-distribution exemption is necessary to facilitate
4        the marketing of its beer; and (5) that it will comply
5        with the alcoholic beverage and revenue laws of the
6        United States, this State, and any other state where it
7        is licensed.
8            (C) Any application submitted shall be posted on
9        the Commission's website at least 45 days prior to
10        action by the Commission. The Commission shall approve
11        the application for a self-distribution exemption if
12        the craft brewer licensee: (1) is in compliance with
13        the State, revenue, and alcoholic beverage laws; (2) is
14        not a member of any affiliated group that manufacturers
15        more than 465,000 gallons of beer per annum or produces
16        any other alcoholic beverages; (3) shall not annually
17        manufacture for sale more than 465,000 gallons of beer;
18        and (4) shall not annually sell more than 232,500
19        gallons of its beer to retail licensees.
20            (D) A self-distribution exemption holder shall
21        annually certify to the Commission its manufacture of
22        beer during the previous 12 months and its anticipated
23        manufacture and sales of beer for the next 12 months.
24        The Commission may fine, suspend, or revoke a
25        self-distribution exemption after a hearing if it
26        finds that the exemption holder has made a material

 

 

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1        misrepresentation in its application, violated a
2        revenue or alcoholic beverage law of Illinois,
3        exceeded the manufacture of 465,000 gallons of beer in
4        any calendar year or became part of an affiliated group
5        manufacturing more than 465,000 gallons of beer or any
6        other alcoholic beverage.
7            (E) The Commission shall issue rules and
8        regulations governing self-distribution exemptions
9        consistent with this Act.
10            (F) Nothing in this paragraph (18) shall prohibit a
11        self-distribution exemption holder from entering into
12        or simultaneously having a distribution agreement with
13        a licensed Illinois importing distributor or a
14        distributor. If a self-distribution exemption holder
15        enters into a distribution agreement and has assigned
16        distribution rights to an importing distributor or
17        distributor, then the self-distribution exemption
18        holder's distribution rights in the assigned
19        territories shall cease in a reasonable time not to
20        exceed 60 days.
21            (G) It is the intent of this paragraph (18) to
22        promote and continue orderly markets. The General
23        Assembly finds that in order to preserve Illinois'
24        regulatory distribution system, it is necessary to
25        create an exception for smaller manufacturers in order
26        to afford and allow such smaller manufacturers of beer

 

 

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1        access to the marketplace in order to develop a
2        customer base without impairing the integrity of the
3        3-tier system.
4    (b) On or before April 30, 1999, the Commission shall
5present a written report to the Governor and the General
6Assembly that shall be based on a study of the impact of this
7amendatory Act of 1998 on the business of soliciting, selling,
8and shipping alcoholic liquor from outside of this State
9directly to residents of this State.
10    As part of its report, the Commission shall provide the
11following information:
12        (i) the amount of State excise and sales tax revenues
13    generated as a result of this amendatory Act of 1998;
14        (ii) the amount of licensing fees received as a result
15    of this amendatory Act of 1998;
16        (iii) the number of reported violations, the number of
17    cease and desist notices issued by the Commission, the
18    number of notices of violations issued to the Department of
19    Revenue, and the number of notices and complaints of
20    violations to law enforcement officials.
21(Source: P.A. 95-634, eff. 6-1-08; 96-179, eff. 8-10-09;
2296-446, eff. 1-1-10; 96-1000, eff. 7-2-10.)
 
23    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
24    Sec. 5-1. Licenses issued by the Illinois Liquor Control
25Commission shall be of the following classes:

 

 

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1    (a) Manufacturer's license - Class 1. Distiller, Class 2.
2Rectifier, Class 3. Brewer, Class 4. First Class Wine
3Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
4First Class Winemaker, Class 7. Second Class Winemaker, Class
58. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
610. Craft Brewer,
7    (b) Distributor's license,
8    (c) Importing Distributor's license,
9    (d) Retailer's license,
10    (e) Special Event Retailer's license (not-for-profit),
11    (f) Railroad license,
12    (g) Boat license,
13    (h) Non-Beverage User's license,
14    (i) Wine-maker's premises license,
15    (j) Airplane license,
16    (k) Foreign importer's license,
17    (l) Broker's license,
18    (m) Non-resident dealer's license,
19    (n) Brew Pub license,
20    (o) Auction liquor license,
21    (p) Caterer retailer license,
22    (q) Special use permit license,
23    (r) Winery shipper's license.
24    No person, firm, partnership, corporation, or other legal
25business entity that is engaged in the manufacturing of wine
26may concurrently obtain and hold a wine-maker's license and a

 

 

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1wine manufacturer's license.
2    (a) A manufacturer's license shall allow the manufacture,
3importation in bulk, storage, distribution and sale of
4alcoholic liquor to persons without the State, as may be
5permitted by law and to licensees in this State as follows:
6    Class 1. A Distiller may make sales and deliveries of
7alcoholic liquor to distillers, rectifiers, importing
8distributors, distributors and non-beverage users and to no
9other licensees.
10    Class 2. A Rectifier, who is not a distiller, as defined
11herein, may make sales and deliveries of alcoholic liquor to
12rectifiers, importing distributors, distributors, retailers
13and non-beverage users and to no other licensees.
14    Class 3. A Brewer may make sales and deliveries of beer to
15importing distributors and , distributors and may make sales as
16authorized under subsection (e) of Section 6-4 of this Act , and
17to non-licensees, and to retailers provided the brewer obtains
18an importing distributor's license or distributor's license in
19accordance with the provisions of this Act.
20    Class 4. A first class wine-manufacturer may make sales and
21deliveries of up to 50,000 gallons of wine to manufacturers,
22importing distributors and distributors, and to no other
23licensees.
24    Class 5. A second class Wine manufacturer may make sales
25and deliveries of more than 50,000 gallons of wine to
26manufacturers, importing distributors and distributors and to

 

 

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1no other licensees.
2    Class 6. A first-class wine-maker's license shall allow the
3manufacture of up to 50,000 gallons of wine per year, and the
4storage and sale of such wine to distributors in the State and
5to persons without the State, as may be permitted by law. A
6person who, prior to the effective date of this amendatory Act
7of the 95th General Assembly, is a holder of a first-class
8wine-maker's license and annually produces more than 25,000
9gallons of its own wine and who distributes its wine to
10licensed retailers shall cease this practice on or before July
111, 2008 in compliance with this amendatory Act of the 95th
12General Assembly.
13    Class 7. A second-class wine-maker's license shall allow
14the manufacture of between 50,000 and 150,000 gallons of wine
15per year, and the storage and sale of such wine to distributors
16in this State and to persons without the State, as may be
17permitted by law. A person who, prior to the effective date of
18this amendatory Act of the 95th General Assembly, is a holder
19of a second-class wine-maker's license and annually produces
20more than 25,000 gallons of its own wine and who distributes
21its wine to licensed retailers shall cease this practice on or
22before July 1, 2008 in compliance with this amendatory Act of
23the 95th General Assembly.
24    Class 8. A limited wine-manufacturer may make sales and
25deliveries not to exceed 40,000 gallons of wine per year to
26distributors, and to non-licensees in accordance with the

 

 

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1provisions of this Act.
2    Class 9. A craft distiller license shall allow the
3manufacture of up to 5,000 gallons of spirits by distillation
4per year and the storage of such spirits. If a craft distiller
5licensee is not affiliated with any other manufacturer, then
6the craft distiller licensee may sell such spirits to
7distributors in this State and non-licensees to the extent
8permitted by any exemption approved by the Commission pursuant
9to Section 6-4 of this Act.
10    Any craft distiller licensed under this Act who on the
11effective date of this amendatory Act of the 96th General
12Assembly was licensed as a distiller and manufactured no more
13spirits than permitted by this Section shall not be required to
14pay the initial licensing fee.
15    Class 10. A craft brewer's license, which may only be
16issued to a licensed brewer or licensed non-resident dealer,
17shall allow the manufacture of up to 465,000 gallons of beer
18per year. A craft brewer licensee may make sales and deliveries
19to importing distributors and distributors and to retail
20licensees in accordance with the conditions set forth in
21paragraph (18) of subsection (a) of Section 3-12 of this Act.
22    (a-1) A manufacturer which is licensed in this State to
23make sales or deliveries of alcoholic liquor and which enlists
24agents, representatives, or individuals acting on its behalf
25who contact licensed retailers on a regular and continual basis
26in this State must register those agents, representatives, or

 

 

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

 

 

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1alcoholic liquor by the licensee into this State from any point
2in the United States outside this State, and the purchase of
3alcoholic liquor in barrels, casks or other bulk containers and
4the bottling of such alcoholic liquors before resale thereof,
5but all bottles or containers so filled shall be sealed,
6labeled, stamped and otherwise made to comply with all
7provisions, rules and regulations governing manufacturers in
8the preparation and bottling of alcoholic liquors. The
9importing distributor's license shall permit such licensee to
10purchase alcoholic liquor from Illinois licensed non-resident
11dealers and foreign importers only.
12    (d) A retailer's license shall allow the licensee to sell
13and offer for sale at retail, only in the premises specified in
14the license, alcoholic liquor for use or consumption, but not
15for resale in any form. Nothing in this amendatory Act of the
1695th General Assembly shall deny, limit, remove, or restrict
17the ability of a holder of a retailer's license to transfer,
18deliver, or ship alcoholic liquor to the purchaser for use or
19consumption subject to any applicable local law or ordinance.
20Any retail license issued to a manufacturer shall only permit
21the manufacturer to sell beer at retail on the premises
22actually occupied by the manufacturer. For the purpose of
23further describing the type of business conducted at a retail
24licensed premises, a retailer's licensee may be designated by
25the State Commission as (i) an on premise consumption retailer,
26(ii) an off premise sale retailer, or (iii) a combined on

 

 

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1premise consumption and off premise sale retailer.
2    Notwithstanding any other provision of this subsection
3(d), a retail licensee may sell alcoholic liquors to a special
4event retailer licensee for resale to the extent permitted
5under subsection (e).
6    (e) A special event retailer's license (not-for-profit)
7shall permit the licensee to purchase alcoholic liquors from an
8Illinois licensed distributor (unless the licensee purchases
9less than $500 of alcoholic liquors for the special event, in
10which case the licensee may purchase the alcoholic liquors from
11a licensed retailer) and shall allow the licensee to sell and
12offer for sale, at retail, alcoholic liquors for use or
13consumption, but not for resale in any form and only at the
14location and on the specific dates designated for the special
15event in the license. An applicant for a special event retailer
16license must (i) furnish with the application: (A) a resale
17number issued under Section 2c of the Retailers' Occupation Tax
18Act or evidence that the applicant is registered under Section
192a of the Retailers' Occupation Tax Act, (B) a current, valid
20exemption identification number issued under Section 1g of the
21Retailers' Occupation Tax Act, and a certification to the
22Commission that the purchase of alcoholic liquors will be a
23tax-exempt purchase, or (C) a statement that the applicant is
24not registered under Section 2a of the Retailers' Occupation
25Tax Act, does not hold a resale number under Section 2c of the
26Retailers' Occupation Tax Act, and does not hold an exemption

 

 

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

 

 

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

 

 

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

 

 

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1    (j) An airplane license shall permit the licensee to import
2alcoholic liquors into this State from any point in the United
3States outside this State and to store such alcoholic liquors
4in this State; to make wholesale purchases of alcoholic liquors
5directly from manufacturers, foreign importers, distributors
6and importing distributors from within or outside this State;
7and to store such alcoholic liquors in this State; provided
8that the above powers may be exercised only in connection with
9the importation, purchase or storage of alcoholic liquors to be
10sold or dispensed on an airplane; and provided further, that
11airplane licensees exercising the above powers shall be subject
12to all provisions of Article VIII of this Act as applied to
13importing distributors. An airplane licensee shall also permit
14the sale or dispensing of alcoholic liquors on any passenger
15airplane regularly operated by a common carrier in this State,
16but shall not permit the sale for resale of any alcoholic
17liquors to any licensee within this State. A single airplane
18license shall be required of an airline company if liquor
19service is provided on board aircraft in this State. The annual
20fee for such license shall be as determined in Section 5-3.
21    (k) A foreign importer's license shall permit such licensee
22to purchase alcoholic liquor from Illinois licensed
23non-resident dealers only, and to import alcoholic liquor other
24than in bulk from any point outside the United States and to
25sell such alcoholic liquor to Illinois licensed importing
26distributors and to no one else in Illinois; provided that (i)

 

 

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

 

 

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

 

 

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

 

 

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1holds a brew pub license may simultaneously hold a craft brewer
2license if he or she otherwise qualifies for the craft brewer
3license and the craft brewer license is for a location separate
4from the brew pub's licensed premises. A brew pub license shall
5permit a person who has received prior approval from the
6Commission to annually transfer no more than a total of 50,000
7gallons of beer manufactured on premises to all other licensed
8brew pubs that are substantially owned and operated by the same
9person.
10    (o) A caterer retailer license shall allow the holder to
11serve alcoholic liquors as an incidental part of a food service
12that serves prepared meals which excludes the serving of snacks
13as the primary meal, either on or off-site whether licensed or
14unlicensed.
15    (p) An auction liquor license shall allow the licensee to
16sell and offer for sale at auction wine and spirits for use or
17consumption, or for resale by an Illinois liquor licensee in
18accordance with provisions of this Act. An auction liquor
19license will be issued to a person and it will permit the
20auction liquor licensee to hold the auction anywhere in the
21State. An auction liquor license must be obtained for each
22auction at least 14 days in advance of the auction date.
23    (q) A special use permit license shall allow an Illinois
24licensed retailer to transfer a portion of its alcoholic liquor
25inventory from its retail licensed premises to the premises
26specified in the license hereby created, and to sell or offer

 

 

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

 

 

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

 

 

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1this State. A winery shipper licensed under this subsection (r)
2must comply with the requirements of Section 6-29 of this
3amendatory Act.
4(Source: P.A. 95-331, eff. 8-21-07; 95-634, eff. 6-1-08;
595-769, eff. 7-29-08; 96-1367, eff. 7-28-10.)
 
6    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
7    Sec. 5-3. License fees. Except as otherwise provided
8herein, at the time application is made to the State Commission
9for a license of any class, the applicant shall pay to the
10State Commission the fee hereinafter provided for the kind of
11license applied for.
12    The fee for licenses issued by the State Commission shall
13be as follows:
14    For a manufacturer's license:
15    Class 1. Distiller .............................$3,600
16    Class 2. Rectifier .............................3,600
17    Class 3. Brewer ................................900
18    Class 4. First-class Wine Manufacturer .........600
19    Class 5. Second-class
20        Wine Manufacturer ..........................1,200
21    Class 6. First-class wine-maker ................600
22    Class 7. Second-class wine-maker ...............1200
23    Class 8. Limited Wine Manufacturer..............120
24    Class 9. Craft Distiller........................ 1,800
25    Class 10. Craft Brewer..........................25

 

 

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1    For a Brew Pub License .........................1,050
2    For a caterer retailer's license................200
3    For a foreign importer's license ...............25
4    For an importing distributor's license .........25
5    For a distributor's license ....................270
6    For a non-resident dealer's license
7        (500,000 gallons or over) ..................270
8    For a non-resident dealer's license
9        (under 500,000 gallons) ....................90
10    For a wine-maker's premises license ............100
11    For a winery shipper's license
12        (under 250,000 gallons).....................150
13    For a winery shipper's license
14        (250,000 or over, but under 500,000 gallons).500
15    For a winery shipper's license
16        (500,000 gallons or over)...................1,000
17    For a wine-maker's premises license,
18        second location ............................350
19    For a wine-maker's premises license,
20        third location .............................350
21    For a retailer's license .......................500
22    For a special event retailer's license,
23        (not-for-profit) ...........................25
24    For a special use permit license,
25        one day only ...............................50
26        2 days or more .............................100

 

 

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1    For a railroad license .........................60
2    For a boat license .............................180
3    For an airplane license, times the
4        licensee's maximum number of aircraft
5        in flight, serving liquor over the
6        State at any given time, which either
7        originate, terminate, or make
8        an intermediate stop in the State ..........60
9    For a non-beverage user's license:
10        Class 1 ....................................24
11        Class 2 ....................................60
12        Class 3 ....................................120
13        Class 4 ....................................240
14        Class 5 ....................................600
15    For a broker's license .........................600
16    For an auction liquor license ..................50
17    Fees collected under this Section shall be paid into the
18Dram Shop Fund. On and after July 1, 2003, of the funds
19received for a retailer's license, in addition to the first
20$175, an additional $75 shall be paid into the Dram Shop Fund,
21and $250 shall be paid into the General Revenue Fund. Beginning
22June 30, 1990 and on June 30 of each subsequent year through
23June 29, 2003, any balance over $5,000,000 remaining in the
24Dram Shop Fund shall be credited to State liquor licensees and
25applied against their fees for State liquor licenses for the
26following year. The amount credited to each licensee shall be a

 

 

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1proportion of the balance in the Dram Fund that is the same as
2the proportion of the license fee paid by the licensee under
3this Section for the period in which the balance was
4accumulated to the aggregate fees paid by all licensees during
5that period.
6    No fee shall be paid for licenses issued by the State
7Commission to the following non-beverage users:
8        (a) Hospitals, sanitariums, or clinics when their use
9    of alcoholic liquor is exclusively medicinal, mechanical
10    or scientific.
11        (b) Universities, colleges of learning or schools when
12    their use of alcoholic liquor is exclusively medicinal,
13    mechanical or scientific.
14        (c) Laboratories when their use is exclusively for the
15    purpose of scientific research.
16(Source: P.A. 95-634, eff. 6-1-08; 96-1367, eff. 7-28-10.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.