HB1573 EnrolledLRB098 07025 MGM 37084 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 1-3.38, 3-12, and 5-1 as follows:
 
6    (235 ILCS 5/1-3.38)
7    Sec. 1-3.38. "Craft brewer" means a licensed brewer or
8licensed non-resident dealer who manufactures up to 930,000
9465,000 gallons of beer per year and who may make sales and
10deliveries to importing distributors and distributors and to
11retail licensees in accordance with the conditions set forth in
12paragraph (18) of subsection (a) of Section 3-12 of this Act.
13(Source: P.A. 97-5, eff. 6-1-11.)
 
14    (235 ILCS 5/3-12)
15    Sec. 3-12. Powers and duties of State Commission.
16    (a) The State commission shall have the following powers,
17functions and duties:
18        (1) To receive applications and to issue licenses to
19    manufacturers, foreign importers, importing distributors,
20    distributors, non-resident dealers, on premise consumption
21    retailers, off premise sale retailers, special event
22    retailer licensees, special use permit licenses, auction

 

 

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1    liquor licenses, brew pubs, caterer retailers,
2    non-beverage users, railroads, including owners and
3    lessees of sleeping, dining and cafe cars, airplanes,
4    boats, brokers, and wine maker's premises licensees in
5    accordance with the provisions of this Act, and to suspend
6    or revoke such licenses upon the State commission's
7    determination, upon notice after hearing, that a licensee
8    has violated any provision of this Act or any rule or
9    regulation issued pursuant thereto and in effect for 30
10    days prior to such violation. Except in the case of an
11    action taken pursuant to a violation of Section 6-3, 6-5,
12    or 6-9, any action by the State Commission to suspend or
13    revoke a licensee's license may be limited to the license
14    for the specific premises where the violation occurred.
15        In lieu of suspending or revoking a license, the
16    commission may impose a fine, upon the State commission's
17    determination and notice after hearing, that a licensee has
18    violated any provision of this Act or any rule or
19    regulation issued pursuant thereto and in effect for 30
20    days prior to such violation. The fine imposed under this
21    paragraph may not exceed $500 for each violation. Each day
22    that the activity, which gave rise to the original fine,
23    continues is a separate violation. The maximum fine that
24    may be levied against any licensee, for the period of the
25    license, shall not exceed $20,000. The maximum penalty that
26    may be imposed on a licensee for selling a bottle of

 

 

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1    alcoholic liquor with a foreign object in it or serving
2    from a bottle of alcoholic liquor with a foreign object in
3    it shall be the destruction of that bottle of alcoholic
4    liquor for the first 10 bottles so sold or served from by
5    the licensee. For the eleventh bottle of alcoholic liquor
6    and for each third bottle thereafter sold or served from by
7    the licensee with a foreign object in it, the maximum
8    penalty that may be imposed on the licensee is the
9    destruction of the bottle of alcoholic liquor and a fine of
10    up to $50.
11        (2) To adopt such rules and regulations consistent with
12    the provisions of this Act which shall be necessary to
13    carry on its functions and duties to the end that the
14    health, safety and welfare of the People of the State of
15    Illinois shall be protected and temperance in the
16    consumption of alcoholic liquors shall be fostered and
17    promoted and to distribute copies of such rules and
18    regulations to all licensees affected thereby.
19        (3) To call upon other administrative departments of
20    the State, county and municipal governments, county and
21    city police departments and upon prosecuting officers for
22    such information and assistance as it deems necessary in
23    the performance of its duties.
24        (4) To recommend to local commissioners rules and
25    regulations, not inconsistent with the law, for the
26    distribution and sale of alcoholic liquors throughout the

 

 

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1    State.
2        (5) To inspect, or cause to be inspected, any premises
3    in this State where alcoholic liquors are manufactured,
4    distributed, warehoused, or sold.
5        (5.1) Upon receipt of a complaint or upon having
6    knowledge that any person is engaged in business as a
7    manufacturer, importing distributor, distributor, or
8    retailer without a license or valid license, to notify the
9    local liquor authority, file a complaint with the State's
10    Attorney's Office of the county where the incident
11    occurred, or initiate an investigation with the
12    appropriate law enforcement officials.
13        (5.2) To issue a cease and desist notice to persons
14    shipping alcoholic liquor into this State from a point
15    outside of this State if the shipment is in violation of
16    this Act.
17        (5.3) To receive complaints from licensees, local
18    officials, law enforcement agencies, organizations, and
19    persons stating that any licensee has been or is violating
20    any provision of this Act or the rules and regulations
21    issued pursuant to this Act. Such complaints shall be in
22    writing, signed and sworn to by the person making the
23    complaint, and shall state with specificity the facts in
24    relation to the alleged violation. If the Commission has
25    reasonable grounds to believe that the complaint
26    substantially alleges a violation of this Act or rules and

 

 

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1    regulations adopted pursuant to this Act, it shall conduct
2    an investigation. If, after conducting an investigation,
3    the Commission is satisfied that the alleged violation did
4    occur, it shall proceed with disciplinary action against
5    the licensee as provided in this Act.
6        (6) To hear and determine appeals from orders of a
7    local commission in accordance with the provisions of this
8    Act, as hereinafter set forth. Hearings under this
9    subsection shall be held in Springfield or Chicago, at
10    whichever location is the more convenient for the majority
11    of persons who are parties to the hearing.
12        (7) The commission shall establish uniform systems of
13    accounts to be kept by all retail licensees having more
14    than 4 employees, and for this purpose the commission may
15    classify all retail licensees having more than 4 employees
16    and establish a uniform system of accounts for each class
17    and prescribe the manner in which such accounts shall be
18    kept. The commission may also prescribe the forms of
19    accounts to be kept by all retail licensees having more
20    than 4 employees, including but not limited to accounts of
21    earnings and expenses and any distribution, payment, or
22    other distribution of earnings or assets, and any other
23    forms, records and memoranda which in the judgment of the
24    commission may be necessary or appropriate to carry out any
25    of the provisions of this Act, including but not limited to
26    such forms, records and memoranda as will readily and

 

 

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1    accurately disclose at all times the beneficial ownership
2    of such retail licensed business. The accounts, forms,
3    records and memoranda shall be available at all reasonable
4    times for inspection by authorized representatives of the
5    State commission or by any local liquor control
6    commissioner or his or her authorized representative. The
7    commission, may, from time to time, alter, amend or repeal,
8    in whole or in part, any uniform system of accounts, or the
9    form and manner of keeping accounts.
10        (8) In the conduct of any hearing authorized to be held
11    by the commission, to appoint, at the commission's
12    discretion, hearing officers to conduct hearings involving
13    complex issues or issues that will require a protracted
14    period of time to resolve, to examine, or cause to be
15    examined, under oath, any licensee, and to examine or cause
16    to be examined the books and records of such licensee; to
17    hear testimony and take proof material for its information
18    in the discharge of its duties hereunder; to administer or
19    cause to be administered oaths; for any such purpose to
20    issue subpoena or subpoenas to require the attendance of
21    witnesses and the production of books, which shall be
22    effective in any part of this State, and to adopt rules to
23    implement its powers under this paragraph (8).
24        Any Circuit Court may by order duly entered, require
25    the attendance of witnesses and the production of relevant
26    books subpoenaed by the State commission and the court may

 

 

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1    compel obedience to its order by proceedings for contempt.
2        (9) To investigate the administration of laws in
3    relation to alcoholic liquors in this and other states and
4    any foreign countries, and to recommend from time to time
5    to the Governor and through him or her to the legislature
6    of this State, such amendments to this Act, if any, as it
7    may think desirable and as will serve to further the
8    general broad purposes contained in Section 1-2 hereof.
9        (10) To adopt such rules and regulations consistent
10    with the provisions of this Act which shall be necessary
11    for the control, sale or disposition of alcoholic liquor
12    damaged as a result of an accident, wreck, flood, fire or
13    other similar occurrence.
14        (11) To develop industry educational programs related
15    to responsible serving and selling, particularly in the
16    areas of overserving consumers and illegal underage
17    purchasing and consumption of alcoholic beverages.
18        (11.1) To license persons providing education and
19    training to alcohol beverage sellers and servers under the
20    Beverage Alcohol Sellers and Servers Education and
21    Training (BASSET) programs and to develop and administer a
22    public awareness program in Illinois to reduce or eliminate
23    the illegal purchase and consumption of alcoholic beverage
24    products by persons under the age of 21. Application for a
25    license shall be made on forms provided by the State
26    Commission.

 

 

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1        (12) To develop and maintain a repository of license
2    and regulatory information.
3        (13) On or before January 15, 1994, the Commission
4    shall issue a written report to the Governor and General
5    Assembly that is to be based on a comprehensive study of
6    the impact on and implications for the State of Illinois of
7    Section 1926 of the Federal ADAMHA Reorganization Act of
8    1992 (Public Law 102-321). This study shall address the
9    extent to which Illinois currently complies with the
10    provisions of P.L. 102-321 and the rules promulgated
11    pursuant thereto.
12        As part of its report, the Commission shall provide the
13    following essential information:
14            (i) the number of retail distributors of tobacco
15        products, by type and geographic area, in the State;
16            (ii) the number of reported citations and
17        successful convictions, categorized by type and
18        location of retail distributor, for violation of the
19        Prevention of Tobacco Use by Minors and Sale and
20        Distribution of Tobacco Products Act and the Smokeless
21        Tobacco Limitation Act;
22            (iii) the extent and nature of organized
23        educational and governmental activities that are
24        intended to promote, encourage or otherwise secure
25        compliance with any Illinois laws that prohibit the
26        sale or distribution of tobacco products to minors; and

 

 

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1            (iv) the level of access and availability of
2        tobacco products to individuals under the age of 18.
3        To obtain the data necessary to comply with the
4    provisions of P.L. 102-321 and the requirements of this
5    report, the Commission shall conduct random, unannounced
6    inspections of a geographically and scientifically
7    representative sample of the State's retail tobacco
8    distributors.
9        The Commission shall consult with the Department of
10    Public Health, the Department of Human Services, the
11    Illinois State Police and any other executive branch
12    agency, and private organizations that may have
13    information relevant to this report.
14        The Commission may contract with the Food and Drug
15    Administration of the U.S. Department of Health and Human
16    Services to conduct unannounced investigations of Illinois
17    tobacco vendors to determine compliance with federal laws
18    relating to the illegal sale of cigarettes and smokeless
19    tobacco products to persons under the age of 18.
20        (14) On or before April 30, 2008 and every 2 years
21    thereafter, the Commission shall present a written report
22    to the Governor and the General Assembly that shall be
23    based on a study of the impact of this amendatory Act of
24    the 95th General Assembly on the business of soliciting,
25    selling, and shipping wine from inside and outside of this
26    State directly to residents of this State. As part of its

 

 

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1    report, the Commission shall provide all of the following
2    information:
3            (A) The amount of State excise and sales tax
4        revenues generated.
5            (B) The amount of licensing fees received.
6            (C) The number of cases of wine shipped from inside
7        and outside of this State directly to residents of this
8        State.
9            (D) The number of alcohol compliance operations
10        conducted.
11            (E) The number of winery shipper's licenses
12        issued.
13            (F) The number of each of the following: reported
14        violations; cease and desist notices issued by the
15        Commission; notices of violations issued by the
16        Commission and to the Department of Revenue; and
17        notices and complaints of violations to law
18        enforcement officials, including, without limitation,
19        the Illinois Attorney General and the U.S. Department
20        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
21        (15) As a means to reduce the underage consumption of
22    alcoholic liquors, the Commission shall conduct alcohol
23    compliance operations to investigate whether businesses
24    that are soliciting, selling, and shipping wine from inside
25    or outside of this State directly to residents of this
26    State are licensed by this State or are selling or

 

 

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1    attempting to sell wine to persons under 21 years of age in
2    violation of this Act.
3        (16) The Commission shall, in addition to notifying any
4    appropriate law enforcement agency, submit notices of
5    complaints or violations of Sections 6-29 and 6-29.1 by
6    persons who do not hold a winery shipper's license under
7    this amendatory Act to the Illinois Attorney General and to
8    the U.S. Department of Treasury's Alcohol and Tobacco Tax
9    and Trade Bureau.
10        (17) (A) A person licensed to make wine under the laws
11    of another state who has a winery shipper's license under
12    this amendatory Act and annually produces less than 25,000
13    gallons of wine or a person who has a first-class or
14    second-class wine manufacturer's license, a first-class or
15    second-class wine-maker's license, or a limited wine
16    manufacturer's license under this Act and annually
17    produces less than 25,000 gallons of wine may make
18    application to the Commission for a self-distribution
19    exemption to allow the sale of not more than 5,000 gallons
20    of the exemption holder's wine to retail licensees per
21    year.
22            (B) In the application, which shall be sworn under
23        penalty of perjury, such person shall state (1) the
24        date it was established; (2) its volume of production
25        and sales for each year since its establishment; (3)
26        its efforts to establish distributor relationships;

 

 

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1        (4) that a self-distribution exemption is necessary to
2        facilitate the marketing of its wine; and (5) that it
3        will comply with the liquor and revenue laws of the
4        United States, this State, and any other state where it
5        is licensed.
6            (C) The Commission shall approve the application
7        for a self-distribution exemption if such person: (1)
8        is in compliance with State revenue and liquor laws;
9        (2) is not a member of any affiliated group that
10        produces more than 25,000 gallons of wine per annum or
11        produces any other alcoholic liquor; (3) will not
12        annually produce for sale more than 25,000 gallons of
13        wine; and (4) will not annually sell more than 5,000
14        gallons of its wine to retail licensees.
15            (D) A self-distribution exemption holder shall
16        annually certify to the Commission its production of
17        wine in the previous 12 months and its anticipated
18        production and sales for the next 12 months. The
19        Commission may fine, suspend, or revoke a
20        self-distribution exemption after a hearing if it
21        finds that the exemption holder has made a material
22        misrepresentation in its application, violated a
23        revenue or liquor law of Illinois, exceeded production
24        of 25,000 gallons of wine in any calendar year, or
25        become part of an affiliated group producing more than
26        25,000 gallons of wine or any other alcoholic liquor.

 

 

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1            (E) Except in hearings for violations of this Act
2        or amendatory Act or a bona fide investigation by duly
3        sworn law enforcement officials, the Commission, or
4        its agents, the Commission shall maintain the
5        production and sales information of a
6        self-distribution exemption holder as confidential and
7        shall not release such information to any person.
8            (F) The Commission shall issue regulations
9        governing self-distribution exemptions consistent with
10        this Section and this Act.
11            (G) Nothing in this subsection (17) shall prohibit
12        a self-distribution exemption holder from entering
13        into or simultaneously having a distribution agreement
14        with a licensed Illinois distributor.
15            (H) It is the intent of this subsection (17) to
16        promote and continue orderly markets. The General
17        Assembly finds that in order to preserve Illinois'
18        regulatory distribution system it is necessary to
19        create an exception for smaller makers of wine as their
20        wines are frequently adjusted in varietals, mixes,
21        vintages, and taste to find and create market niches
22        sometimes too small for distributor or importing
23        distributor business strategies. Limited
24        self-distribution rights will afford and allow smaller
25        makers of wine access to the marketplace in order to
26        develop a customer base without impairing the

 

 

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1        integrity of the 3-tier system.
2        (18) (A) A craft brewer licensee, who must also be
3    either a licensed brewer or licensed non-resident dealer
4    and annually manufacture less than 930,000 465,000 gallons
5    of beer, may make application to the Commission for a
6    self-distribution exemption to allow the sale of not more
7    than 232,500 gallons of the exemption holder's beer to
8    retail licensees per year.
9            (B) In the application, which shall be sworn under
10        penalty of perjury, the craft brewer licensee shall
11        state (1) the date it was established; (2) its volume
12        of beer manufactured and sold for each year since its
13        establishment; (3) its efforts to establish
14        distributor relationships; (4) that a
15        self-distribution exemption is necessary to facilitate
16        the marketing of its beer; and (5) that it will comply
17        with the alcoholic beverage and revenue laws of the
18        United States, this State, and any other state where it
19        is licensed.
20            (C) Any application submitted shall be posted on
21        the Commission's website at least 45 days prior to
22        action by the Commission. The Commission shall approve
23        the application for a self-distribution exemption if
24        the craft brewer licensee: (1) is in compliance with
25        the State, revenue, and alcoholic beverage laws; (2) is
26        not a member of any affiliated group that manufacturers

 

 

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1        more than 930,000 465,000 gallons of beer per annum or
2        produces any other alcoholic beverages; (3) shall not
3        annually manufacture for sale more than 930,000
4        465,000 gallons of beer; and (4) shall not annually
5        sell more than 232,500 gallons of its beer to retail
6        licensees.
7            (D) A self-distribution exemption holder shall
8        annually certify to the Commission its manufacture of
9        beer during the previous 12 months and its anticipated
10        manufacture and sales of beer for the next 12 months.
11        The Commission may fine, suspend, or revoke a
12        self-distribution exemption after a hearing if it
13        finds that the exemption holder has made a material
14        misrepresentation in its application, violated a
15        revenue or alcoholic beverage law of Illinois,
16        exceeded the manufacture of 930,000 465,000 gallons of
17        beer in any calendar year or became part of an
18        affiliated group manufacturing more than 930,000
19        465,000 gallons of beer or any other alcoholic
20        beverage.
21            (E) The Commission shall issue rules and
22        regulations governing self-distribution exemptions
23        consistent with this Act.
24            (F) Nothing in this paragraph (18) shall prohibit a
25        self-distribution exemption holder from entering into
26        or simultaneously having a distribution agreement with

 

 

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1        a licensed Illinois importing distributor or a
2        distributor. If a self-distribution exemption holder
3        enters into a distribution agreement and has assigned
4        distribution rights to an importing distributor or
5        distributor, then the self-distribution exemption
6        holder's distribution rights in the assigned
7        territories shall cease in a reasonable time not to
8        exceed 60 days.
9            (G) It is the intent of this paragraph (18) to
10        promote and continue orderly markets. The General
11        Assembly finds that in order to preserve Illinois'
12        regulatory distribution system, it is necessary to
13        create an exception for smaller manufacturers in order
14        to afford and allow such smaller manufacturers of beer
15        access to the marketplace in order to develop a
16        customer base without impairing the integrity of the
17        3-tier system.
18    (b) On or before April 30, 1999, the Commission shall
19present a written report to the Governor and the General
20Assembly that shall be based on a study of the impact of this
21amendatory Act of 1998 on the business of soliciting, selling,
22and shipping alcoholic liquor from outside of this State
23directly to residents of this State.
24    As part of its report, the Commission shall provide the
25following information:
26        (i) the amount of State excise and sales tax revenues

 

 

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1    generated as a result of this amendatory Act of 1998;
2        (ii) the amount of licensing fees received as a result
3    of this amendatory Act of 1998;
4        (iii) the number of reported violations, the number of
5    cease and desist notices issued by the Commission, the
6    number of notices of violations issued to the Department of
7    Revenue, and the number of notices and complaints of
8    violations to law enforcement officials.
9(Source: P.A. 96-179, eff. 8-10-09; 96-446, eff. 1-1-10;
1096-1000, eff. 7-2-10; 97-5, eff. 6-1-11.)
 
11    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
12    Sec. 5-1. Licenses issued by the Illinois Liquor Control
13Commission shall be of the following classes:
14    (a) Manufacturer's license - Class 1. Distiller, Class 2.
15Rectifier, Class 3. Brewer, Class 4. First Class Wine
16Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
17First Class Winemaker, Class 7. Second Class Winemaker, Class
188. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1910. Craft Brewer,
20    (b) Distributor's license,
21    (c) Importing Distributor's license,
22    (d) Retailer's license,
23    (e) Special Event Retailer's license (not-for-profit),
24    (f) Railroad license,
25    (g) Boat license,

 

 

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

 

 

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1and non-beverage users and to no other licensees.
2    Class 3. A Brewer may make sales and deliveries of beer to
3importing distributors and distributors and may make sales as
4authorized under subsection (e) of Section 6-4 of this Act.
5    Class 4. A first class wine-manufacturer may make sales and
6deliveries of up to 50,000 gallons of wine to manufacturers,
7importing distributors and distributors, and to no other
8licensees.
9    Class 5. A second class Wine manufacturer may make sales
10and deliveries of more than 50,000 gallons of wine to
11manufacturers, importing distributors and distributors and to
12no other licensees.
13    Class 6. A first-class wine-maker's license shall allow the
14manufacture of up to 50,000 gallons of wine per year, and the
15storage and sale of such wine to distributors in the State and
16to persons without the State, as may be permitted by law. A
17person who, prior to the effective date of this amendatory Act
18of the 95th General Assembly, is a holder of a first-class
19wine-maker's license and annually produces more than 25,000
20gallons of its own wine and who distributes its wine to
21licensed retailers shall cease this practice on or before July
221, 2008 in compliance with this amendatory Act of the 95th
23General Assembly.
24    Class 7. A second-class wine-maker's license shall allow
25the manufacture of between 50,000 and 150,000 gallons of wine
26per year, and the storage and sale of such wine to distributors

 

 

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1in this State and to persons without the State, as may be
2permitted by law. A person who, prior to the effective date of
3this amendatory Act of the 95th General Assembly, is a holder
4of a second-class wine-maker's license and annually produces
5more than 25,000 gallons of its own wine and who distributes
6its wine to licensed retailers shall cease this practice on or
7before July 1, 2008 in compliance with this amendatory Act of
8the 95th General Assembly.
9    Class 8. A limited wine-manufacturer may make sales and
10deliveries not to exceed 40,000 gallons of wine per year to
11distributors, and to non-licensees in accordance with the
12provisions of this Act.
13    Class 9. A craft distiller license shall allow the
14manufacture of up to 30,000 gallons of spirits by distillation
15for one year after the effective date of this amendatory Act of
16the 97th General Assembly and up to 35,000 gallons of spirits
17by distillation per year thereafter and the storage of such
18spirits. If a craft distiller licensee is not affiliated with
19any other manufacturer, then the craft distiller licensee may
20sell such spirits to distributors in this State and up to 2,500
21gallons of such spirits to non-licensees to the extent
22permitted by any exemption approved by the Commission pursuant
23to Section 6-4 of this Act.
24    Any craft distiller licensed under this Act who on the
25effective date of this amendatory Act of the 96th General
26Assembly was licensed as a distiller and manufactured no more

 

 

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1spirits than permitted by this Section shall not be required to
2pay the initial licensing fee.
3    Class 10. A craft brewer's license, which may only be
4issued to a licensed brewer or licensed non-resident dealer,
5shall allow the manufacture of up to 930,000 465,000 gallons of
6beer per year. A craft brewer licensee may make sales and
7deliveries to importing distributors and distributors and to
8retail licensees in accordance with the conditions set forth in
9paragraph (18) of subsection (a) of Section 3-12 of this Act.
10    (a-1) A manufacturer which is licensed in this State to
11make sales or deliveries of alcoholic liquor and which enlists
12agents, representatives, or individuals acting on its behalf
13who contact licensed retailers on a regular and continual basis
14in this State must register those agents, representatives, or
15persons acting on its behalf with the State Commission.
16    Registration of agents, representatives, or persons acting
17on behalf of a manufacturer is fulfilled by submitting a form
18to the Commission. The form shall be developed by the
19Commission and shall include the name and address of the
20applicant, the name and address of the manufacturer he or she
21represents, the territory or areas assigned to sell to or
22discuss pricing terms of alcoholic liquor, and any other
23questions deemed appropriate and necessary. All statements in
24the forms required to be made by law or by rule shall be deemed
25material, and any person who knowingly misstates any material
26fact under oath in an application is guilty of a Class B

 

 

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1misdemeanor. Fraud, misrepresentation, false statements,
2misleading statements, evasions, or suppression of material
3facts in the securing of a registration are grounds for
4suspension or revocation of the registration.
5    (b) A distributor's license shall allow the wholesale
6purchase and storage of alcoholic liquors and sale of alcoholic
7liquors to licensees in this State and to persons without the
8State, as may be permitted by law.
9    (c) An importing distributor's license may be issued to and
10held by those only who are duly licensed distributors, upon the
11filing of an application by a duly licensed distributor, with
12the Commission and the Commission shall, without the payment of
13any fee, immediately issue such importing distributor's
14license to the applicant, which shall allow the importation of
15alcoholic liquor by the licensee into this State from any point
16in the United States outside this State, and the purchase of
17alcoholic liquor in barrels, casks or other bulk containers and
18the bottling of such alcoholic liquors before resale thereof,
19but all bottles or containers so filled shall be sealed,
20labeled, stamped and otherwise made to comply with all
21provisions, rules and regulations governing manufacturers in
22the preparation and bottling of alcoholic liquors. The
23importing distributor's license shall permit such licensee to
24purchase alcoholic liquor from Illinois licensed non-resident
25dealers and foreign importers only.
26    (d) A retailer's license shall allow the licensee to sell

 

 

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1and offer for sale at retail, only in the premises specified in
2the license, alcoholic liquor for use or consumption, but not
3for resale in any form. Nothing in this amendatory Act of the
495th General Assembly shall deny, limit, remove, or restrict
5the ability of a holder of a retailer's license to transfer,
6deliver, or ship alcoholic liquor to the purchaser for use or
7consumption subject to any applicable local law or ordinance.
8Any retail license issued to a manufacturer shall only permit
9the manufacturer to sell beer at retail on the premises
10actually occupied by the manufacturer. For the purpose of
11further describing the type of business conducted at a retail
12licensed premises, a retailer's licensee may be designated by
13the State Commission as (i) an on premise consumption retailer,
14(ii) an off premise sale retailer, or (iii) a combined on
15premise consumption and off premise sale retailer.
16    Notwithstanding any other provision of this subsection
17(d), a retail licensee may sell alcoholic liquors to a special
18event retailer licensee for resale to the extent permitted
19under subsection (e).
20    (e) A special event retailer's license (not-for-profit)
21shall permit the licensee to purchase alcoholic liquors from an
22Illinois licensed distributor (unless the licensee purchases
23less than $500 of alcoholic liquors for the special event, in
24which case the licensee may purchase the alcoholic liquors from
25a licensed retailer) and shall allow the licensee to sell and
26offer for sale, at retail, alcoholic liquors for use or

 

 

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1consumption, but not for resale in any form and only at the
2location and on the specific dates designated for the special
3event in the license. An applicant for a special event retailer
4license must (i) furnish with the application: (A) a resale
5number issued under Section 2c of the Retailers' Occupation Tax
6Act or evidence that the applicant is registered under Section
72a of the Retailers' Occupation Tax Act, (B) a current, valid
8exemption identification number issued under Section 1g of the
9Retailers' Occupation Tax Act, and a certification to the
10Commission that the purchase of alcoholic liquors will be a
11tax-exempt purchase, or (C) a statement that the applicant is
12not registered under Section 2a of the Retailers' Occupation
13Tax Act, does not hold a resale number under Section 2c of the
14Retailers' Occupation Tax Act, and does not hold an exemption
15number under Section 1g of the Retailers' Occupation Tax Act,
16in which event the Commission shall set forth on the special
17event retailer's license a statement to that effect; (ii)
18submit with the application proof satisfactory to the State
19Commission that the applicant will provide dram shop liability
20insurance in the maximum limits; and (iii) show proof
21satisfactory to the State Commission that the applicant has
22obtained local authority approval.
23    (f) A railroad license shall permit the licensee to import
24alcoholic liquors into this State from any point in the United
25States outside this State and to store such alcoholic liquors
26in this State; to make wholesale purchases of alcoholic liquors

 

 

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

 

 

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1the business of such licensed manufacturer or importing
2distributor as to such alcoholic liquor to be used by such
3licensee solely for the non-beverage purposes set forth in
4subsection (a) of Section 8-1 of this Act, and such licenses
5shall be divided and classified and shall permit the purchase,
6possession and use of limited and stated quantities of
7alcoholic liquor as follows:
8Class 1, not to exceed ......................... 500 gallons
9Class 2, not to exceed ....................... 1,000 gallons
10Class 3, not to exceed ....................... 5,000 gallons
11Class 4, not to exceed ...................... 10,000 gallons
12Class 5, not to exceed ....................... 50,000 gallons
13    (i) A wine-maker's premises license shall allow a licensee
14that concurrently holds a first-class wine-maker's license to
15sell and offer for sale at retail in the premises specified in
16such license not more than 50,000 gallons of the first-class
17wine-maker's wine that is made at the first-class wine-maker's
18licensed premises per year for use or consumption, but not for
19resale in any form. A wine-maker's premises license shall allow
20a licensee who concurrently holds a second-class wine-maker's
21license to sell and offer for sale at retail in the premises
22specified in such license up to 100,000 gallons of the
23second-class wine-maker's wine that is made at the second-class
24wine-maker's licensed premises per year for use or consumption
25but not for resale in any form. A wine-maker's premises license
26shall allow a licensee that concurrently holds a first-class

 

 

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

 

 

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1importing distributors. An airplane licensee shall also permit
2the sale or dispensing of alcoholic liquors on any passenger
3airplane regularly operated by a common carrier in this State,
4but shall not permit the sale for resale of any alcoholic
5liquors to any licensee within this State. A single airplane
6license shall be required of an airline company if liquor
7service is provided on board aircraft in this State. The annual
8fee for such license shall be as determined in Section 5-3.
9    (k) A foreign importer's license shall permit such licensee
10to purchase alcoholic liquor from Illinois licensed
11non-resident dealers only, and to import alcoholic liquor other
12than in bulk from any point outside the United States and to
13sell such alcoholic liquor to Illinois licensed importing
14distributors and to no one else in Illinois; provided that (i)
15the foreign importer registers with the State Commission every
16brand of alcoholic liquor that it proposes to sell to Illinois
17licensees during the license period, (ii) the foreign importer
18complies with all of the provisions of Section 6-9 of this Act
19with respect to registration of such Illinois licensees as may
20be granted the right to sell such brands at wholesale, and
21(iii) the foreign importer complies with the provisions of
22Sections 6-5 and 6-6 of this Act to the same extent that these
23provisions apply to manufacturers.
24    (l) (i) A broker's license shall be required of all persons
25who solicit orders for, offer to sell or offer to supply
26alcoholic liquor to retailers in the State of Illinois, or who

 

 

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

 

 

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1authorized in Section 6-29 of this Act.
2    A broker's license under this subsection (l) shall not
3entitle the holder to buy or sell any alcoholic liquors for his
4own account or to take or deliver title to such alcoholic
5liquors.
6    This subsection (l) shall not apply to distributors,
7employees of distributors, or employees of a manufacturer who
8has registered the trademark, brand or name of the alcoholic
9liquor pursuant to Section 6-9 of this Act, and who regularly
10sells such alcoholic liquor in the State of Illinois only to
11its registrants thereunder.
12    Any agent, representative, or person subject to
13registration pursuant to subsection (a-1) of this Section shall
14not be eligible to receive a broker's license.
15    (m) A non-resident dealer's license shall permit such
16licensee to ship into and warehouse alcoholic liquor into this
17State from any point outside of this State, and to sell such
18alcoholic liquor to Illinois licensed foreign importers and
19importing distributors and to no one else in this State;
20provided that (i) said non-resident dealer shall register with
21the Illinois Liquor Control Commission each and every brand of
22alcoholic liquor which it proposes to sell to Illinois
23licensees during the license period, (ii) it shall comply with
24all of the provisions of Section 6-9 hereof with respect to
25registration of such Illinois licensees as may be granted the
26right to sell such brands at wholesale, and (iii) the

 

 

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1non-resident dealer shall comply with the provisions of
2Sections 6-5 and 6-6 of this Act to the same extent that these
3provisions apply to manufacturers.
4    (n) A brew pub license shall allow the licensee (i) to
5manufacture beer only on the premises specified in the license,
6(ii) to make sales of the beer manufactured on the premises or,
7with the approval of the Commission, beer manufactured on
8another brew pub licensed premises that is substantially owned
9and operated by the same licensee to importing distributors,
10distributors, and to non-licensees for use and consumption,
11(iii) to store the beer upon the premises, and (iv) to sell and
12offer for sale at retail from the licensed premises, provided
13that a brew pub licensee shall not sell for off-premises
14consumption more than 50,000 gallons per year. A person who
15holds a brew pub license may simultaneously hold a craft brewer
16license if he or she otherwise qualifies for the craft brewer
17license and the craft brewer license is for a location separate
18from the brew pub's licensed premises. A brew pub license shall
19permit a person who has received prior approval from the
20Commission to annually transfer no more than a total of 50,000
21gallons of beer manufactured on premises to all other licensed
22brew pubs that are substantially owned and operated by the same
23person.
24    (o) A caterer retailer license shall allow the holder to
25serve alcoholic liquors as an incidental part of a food service
26that serves prepared meals which excludes the serving of snacks

 

 

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

 

 

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

 

 

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1the Department of Revenue for all gallons of wine that are sold
2by the licensee and shipped to persons in this State. If a
3licensee fails to remit the tax imposed under this Act in
4accordance with the provisions of Article VIII of this Act, the
5winery shipper's license shall be revoked in accordance with
6the provisions of Article VII of this Act. If a licensee fails
7to properly register and remit tax under the Use Tax Act or the
8Retailers' Occupation Tax Act for all wine that is sold by the
9winery shipper and shipped to persons in this State, the winery
10shipper's license shall be revoked in accordance with the
11provisions of Article VII of this Act.
12    A winery shipper licensee must collect, maintain, and
13submit to the Commission on a semi-annual basis the total
14number of cases per resident of wine shipped to residents of
15this State. A winery shipper licensed under this subsection (r)
16must comply with the requirements of Section 6-29 of this
17amendatory Act.
18(Source: P.A. 96-1367, eff. 7-28-10; 97-5, eff. 6-1-11; 97-455,
19eff. 8-19-11; 97-813, eff. 7-13-12; 97-1166, eff. 3-1-13.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.