Illinois General Assembly - Full Text of SB1672
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Full Text of SB1672  101st General Assembly

SB1672 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1672

 

Introduced 2/15/2019, by Sen. Iris Y. Martinez

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/3-12
235 ILCS 5/5-1  from Ch. 43, par. 115
235 ILCS 5/5-3  from Ch. 43, par. 118
235 ILCS 5/6-4  from Ch. 43, par. 121

    Amends the Liquor Control Act of 1934. Provides that a craft distiller license and a craft distiller tasting permit license shall allow the sale and offering for sale at retail for use and consumption on the premises specified in the license any form of alcoholic liquor purchased from a licensed distributor or importing distributor. Provides that a craft distiller tasting permit license allows the licensee to sell and offer for sale at retail, but not for resale in any form, up to 5,000 gallons of transferred alcoholic liquor to the extent approved by the Illinois Liquor Control Commission. Provides that upon approval from the State Commission, a craft distiller tasting permit license shall allow the licensee to sell and offer for sale at (i) the craft distiller's licensed premises and (ii) at up to 2 additional locations for use and consumption and not for resale. Provides that certain craft distillers may sell up to 10,000 gallons (instead of 2,500 gallons) of spirits to non-licensees. Creates a craft distiller warehouse permit. Provides that a craft distiller warehouse permit license may be issued to the holder of a craft distiller tasting permit license and shall allow the holder to store or warehouse up to 500,000 gallons of spirits manufactured by the holder of the permit. Establishes fees for a craft distiller warehouse permit. Makes other changes.


LRB101 07838 RPS 52892 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1672LRB101 07838 RPS 52892 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 3-12, 5-1, 5-3, and 6-4 as follows:
 
6    (235 ILCS 5/3-12)
7    Sec. 3-12. Powers and duties of State Commission.
8    (a) The State Commission shall have the following powers,
9functions, and duties:
10        (1) To receive applications and to issue licenses to
11    manufacturers, foreign importers, importing distributors,
12    distributors, non-resident dealers, on premise consumption
13    retailers, off premise sale retailers, special event
14    retailer licensees, special use permit licenses, auction
15    liquor licenses, brew pubs, caterer retailers,
16    non-beverage users, railroads, including owners and
17    lessees of sleeping, dining and cafe cars, airplanes,
18    boats, brokers, and wine maker's premises licensees in
19    accordance with the provisions of this Act, and to suspend
20    or revoke such licenses upon the State Commission's
21    determination, upon notice after hearing, that a licensee
22    has violated any provision of this Act or any rule or
23    regulation issued pursuant thereto and in effect for 30

 

 

SB1672- 2 -LRB101 07838 RPS 52892 b

1    days prior to such violation. Except in the case of an
2    action taken pursuant to a violation of Section 6-3, 6-5,
3    or 6-9, any action by the State Commission to suspend or
4    revoke a licensee's license may be limited to the license
5    for the specific premises where the violation occurred. An
6    action for a violation of this Act shall be commenced by
7    the State Commission within 2 years after the date the
8    State Commission becomes aware of the violation.
9        In lieu of suspending or revoking a license, the
10    commission may impose a fine, upon the State Commission's
11    determination and notice after hearing, that a licensee has
12    violated any provision of this Act or any rule or
13    regulation issued pursuant thereto and in effect for 30
14    days prior to such violation.
15        For the purpose of this paragraph (1), when determining
16    multiple violations for the sale of alcohol to a person
17    under the age of 21, a second or subsequent violation for
18    the sale of alcohol to a person under the age of 21 shall
19    only be considered if it was committed within 5 years after
20    the date when a prior violation for the sale of alcohol to
21    a person under the age of 21 was committed.
22        The fine imposed under this paragraph may not exceed
23    $500 for each violation. Each day that the activity, which
24    gave rise to the original fine, continues is a separate
25    violation. The maximum fine that may be levied against any
26    licensee, for the period of the license, shall not exceed

 

 

SB1672- 3 -LRB101 07838 RPS 52892 b

1    $20,000. The maximum penalty that may be imposed on a
2    licensee for selling a bottle of alcoholic liquor with a
3    foreign object in it or serving from a bottle of alcoholic
4    liquor with a foreign object in it shall be the destruction
5    of that bottle of alcoholic liquor for the first 10 bottles
6    so sold or served from by the licensee. For the eleventh
7    bottle of alcoholic liquor and for each third bottle
8    thereafter sold or served from by the licensee with a
9    foreign object in it, the maximum penalty that may be
10    imposed on the licensee is the destruction of the bottle of
11    alcoholic liquor and a fine of up to $50.
12        Any notice issued by the State Commission to a licensee
13    for a violation of this Act or any notice with respect to
14    settlement or offer in compromise shall include the field
15    report, photographs, and any other supporting
16    documentation necessary to reasonably inform the licensee
17    of the nature and extent of the violation or the conduct
18    alleged to have occurred. The failure to include such
19    required documentation shall result in the dismissal of the
20    action.
21        (2) To adopt such rules and regulations consistent with
22    the provisions of this Act which shall be necessary to
23    carry on its functions and duties to the end that the
24    health, safety and welfare of the People of the State of
25    Illinois shall be protected and temperance in the
26    consumption of alcoholic liquors shall be fostered and

 

 

SB1672- 4 -LRB101 07838 RPS 52892 b

1    promoted and to distribute copies of such rules and
2    regulations to all licensees affected thereby.
3        (3) To call upon other administrative departments of
4    the State, county and municipal governments, county and
5    city police departments and upon prosecuting officers for
6    such information and assistance as it deems necessary in
7    the performance of its duties.
8        (4) To recommend to local commissioners rules and
9    regulations, not inconsistent with the law, for the
10    distribution and sale of alcoholic liquors throughout the
11    State.
12        (5) To inspect, or cause to be inspected, any premises
13    in this State where alcoholic liquors are manufactured,
14    distributed, warehoused, or sold. Nothing in this Act
15    authorizes an agent of the Commission to inspect private
16    areas within the premises without reasonable suspicion or a
17    warrant during an inspection. "Private areas" include, but
18    are not limited to, safes, personal property, and closed
19    desks.
20        (5.1) Upon receipt of a complaint or upon having
21    knowledge that any person is engaged in business as a
22    manufacturer, importing distributor, distributor, or
23    retailer without a license or valid license, to notify the
24    local liquor authority, file a complaint with the State's
25    Attorney's Office of the county where the incident
26    occurred, or initiate an investigation with the

 

 

SB1672- 5 -LRB101 07838 RPS 52892 b

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

 

 

SB1672- 6 -LRB101 07838 RPS 52892 b

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

 

 

SB1672- 7 -LRB101 07838 RPS 52892 b

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

 

 

SB1672- 8 -LRB101 07838 RPS 52892 b

1    damaged as a result of an accident, wreck, flood, fire or
2    other similar occurrence.
3        (11) To develop industry educational programs related
4    to responsible serving and selling, particularly in the
5    areas of overserving consumers and illegal underage
6    purchasing and consumption of alcoholic beverages.
7        (11.1) To license persons providing education and
8    training to alcohol beverage sellers and servers for
9    mandatory and non-mandatory training under the Beverage
10    Alcohol Sellers and Servers Education and Training
11    (BASSET) programs and to develop and administer a public
12    awareness program in Illinois to reduce or eliminate the
13    illegal purchase and consumption of alcoholic beverage
14    products by persons under the age of 21. Application for a
15    license shall be made on forms provided by the State
16    Commission.
17        (12) To develop and maintain a repository of license
18    and regulatory information.
19        (13) (Blank).
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 Public Act 95-634 on the
24    business of soliciting, selling, and shipping wine from
25    inside and outside of this State directly to residents of
26    this State. As part of its report, the Commission shall

 

 

SB1672- 9 -LRB101 07838 RPS 52892 b

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

 

 

SB1672- 10 -LRB101 07838 RPS 52892 b

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

 

 

SB1672- 11 -LRB101 07838 RPS 52892 b

1    liquor and revenue laws of the United States, this State,
2    and any other state where it is licensed.
3        (C) The Commission shall approve the application for a
4    self-distribution exemption if such person: (1) is in
5    compliance with State revenue and liquor laws; (2) is not a
6    member of any affiliated group that produces more than
7    25,000 gallons of wine per annum or produces any other
8    alcoholic liquor; (3) will not annually produce for sale
9    more than 25,000 gallons of wine; and (4) will not annually
10    sell more than 5,000 gallons of its wine to retail
11    licensees.
12        (D) A self-distribution exemption holder shall
13    annually certify to the Commission its production of wine
14    in the previous 12 months and its anticipated production
15    and sales for the next 12 months. The Commission may fine,
16    suspend, or revoke a self-distribution exemption after a
17    hearing if it finds that the exemption holder has made a
18    material misrepresentation in its application, violated a
19    revenue or liquor law of Illinois, exceeded production of
20    25,000 gallons of wine in any calendar year, or become part
21    of an affiliated group producing more than 25,000 gallons
22    of wine or any other alcoholic liquor.
23        (E) Except in hearings for violations of this Act or
24    Public Act 95-634 or a bona fide investigation by duly
25    sworn law enforcement officials, the Commission, or its
26    agents, the Commission shall maintain the production and

 

 

SB1672- 12 -LRB101 07838 RPS 52892 b

1    sales information of a self-distribution exemption holder
2    as confidential and shall not release such information to
3    any person.
4        (F) The Commission shall issue regulations governing
5    self-distribution exemptions consistent with this Section
6    and this Act.
7        (G) Nothing in this paragraph subsection (17) shall
8    prohibit a self-distribution exemption holder from
9    entering into or simultaneously having a distribution
10    agreement with a licensed Illinois distributor.
11        (H) It is the intent of this paragraph subsection (17)
12    to promote and continue orderly markets. The General
13    Assembly finds that in order to preserve Illinois'
14    regulatory distribution system it is necessary to create an
15    exception for smaller makers of wine as their wines are
16    frequently adjusted in varietals, mixes, vintages, and
17    taste to find and create market niches sometimes too small
18    for distributor or importing distributor business
19    strategies. Limited self-distribution rights will afford
20    and allow smaller makers of wine access to the marketplace
21    in order to develop a customer base without impairing the
22    integrity of the 3-tier system.
23        (18)(A) A class 1 brewer licensee, who must also be
24    either a licensed brewer or licensed non-resident dealer
25    and annually manufacture less than 930,000 gallons of beer,
26    may make application to the State Commission for a

 

 

SB1672- 13 -LRB101 07838 RPS 52892 b

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

 

 

SB1672- 14 -LRB101 07838 RPS 52892 b

1    annually sell more than 232,500 gallons of its beer to
2    retail licensees or to brewers, class 1 brewers, and class
3    2 brewers that, pursuant to subsection (e) of Section 6-4
4    of this Act, sell beer, cider, or both beer and cider to
5    non-licensees at their breweries; and (5) has relinquished
6    any brew pub license held by the licensee, including any
7    ownership interest it held in the licensed brew pub.
8        (D) A self-distribution exemption holder shall
9    annually certify to the State Commission its manufacture of
10    beer during the previous 12 months and its anticipated
11    manufacture and sales of beer for the next 12 months. The
12    State Commission may fine, suspend, or revoke a
13    self-distribution exemption after a hearing if it finds
14    that the exemption holder has made a material
15    misrepresentation in its application, violated a revenue
16    or alcoholic beverage law of Illinois, exceeded the
17    manufacture of 930,000 gallons of beer in any calendar year
18    or became part of an affiliated group manufacturing more
19    than 930,000 gallons of beer or any other alcoholic
20    beverage.
21        (E) The State 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 or
26    simultaneously having a distribution agreement with a

 

 

SB1672- 15 -LRB101 07838 RPS 52892 b

1    licensed Illinois importing distributor or a distributor.
2    If a self-distribution exemption holder enters into a
3    distribution agreement and has assigned distribution
4    rights to an importing distributor or distributor, then the
5    self-distribution exemption holder's distribution rights
6    in the assigned territories shall cease in a reasonable
7    time not to exceed 60 days.
8        (G) It is the intent of this paragraph (18) to promote
9    and continue orderly markets. The General Assembly finds
10    that in order to preserve Illinois' regulatory
11    distribution system, it is necessary to create an exception
12    for smaller manufacturers in order to afford and allow such
13    smaller manufacturers of beer access to the marketplace in
14    order to develop a customer base without impairing the
15    integrity of the 3-tier system.
16        (19)(A) A craft distiller licensee may make
17    application to the State Commission for a
18    self-distribution exemption to allow the sale of not more
19    than 2,500 gallons of the exemption holder's spirits to
20    retail licensees per year.
21        (B) In the application, which shall be sworn under
22    penalty of perjury, the craft distiller licensee shall
23    state (1) the date it was established; (2) its volume of
24    spirits manufactured and sold for each year since its
25    establishment; (3) its efforts to establish distributor
26    relationships; (4) that a self-distribution exemption is

 

 

SB1672- 16 -LRB101 07838 RPS 52892 b

1    necessary to facilitate the marketing of its spirits; and
2    (5) that it will comply with the alcoholic beverage and
3    revenue laws of the United States, this State, and any
4    other state where it is licensed.
5        (C) Any application submitted shall be posted on the
6    State Commission's website at least 45 days prior to action
7    by the State Commission. The State Commission shall approve
8    the application for a self-distribution exemption if the
9    craft distiller licensee: (1) is in compliance with State,
10    revenue, and alcoholic beverage laws; (2) is not a member
11    of any affiliated group that produces more than 100,000
12    gallons of spirits per annum or produces any other
13    alcoholic liquor; (3) shall not annually manufacture for
14    sale more than 100,000 gallons of spirits; and (4) shall
15    not annually sell more than 2,500 gallons of its spirits to
16    retail licensees.
17        (D) A self-distribution exemption holder shall
18    annually certify to the State Commission its manufacture of
19    spirits during the previous 12 months and its anticipated
20    manufacture and sales of spirits for the next 12 months.
21    The State Commission may fine, suspend, or revoke a
22    self-distribution exemption after a hearing if it finds
23    that the exemption holder has made a material
24    misrepresentation in its application, violated a revenue
25    or alcoholic beverage law of Illinois, exceeded the
26    manufacture of 100,000 gallons of spirits in any calendar

 

 

SB1672- 17 -LRB101 07838 RPS 52892 b

1    year or became part of an affiliated group manufacturing
2    more than 100,000 gallons of spirits or any other alcoholic
3    beverage.
4        (E) The State Commission shall issue rules and
5    regulations governing self-distribution exemptions
6    consistent with this Act.
7        (F) Nothing in this paragraph (19) shall prohibit a
8    self-distribution exemption holder from entering into or
9    simultaneously having a distribution agreement with a
10    licensed Illinois importing distributor or a distributor.
11    If a self-distribution exemption holder enters into a
12    distribution agreement and has assigned distribution
13    rights to an importing distributor or distributor, then the
14    self-distribution exemption holder's distribution rights
15    in the assigned territories shall cease in a reasonable
16    time not to exceed 60 days.
17        (G) It is the intent of this paragraph (19) to promote
18    and continue orderly markets. The General Assembly finds
19    that in order to preserve Illinois' regulatory
20    distribution system, it is necessary to create an exception
21    for smaller manufacturers in order to afford and allow such
22    smaller manufacturers of spirits access to the marketplace
23    in order to develop a customer base without impairing the
24    integrity of the 3-tier system.
25    (b) On or before April 30, 1999, the Commission shall
26present a written report to the Governor and the General

 

 

SB1672- 18 -LRB101 07838 RPS 52892 b

1Assembly that shall be based on a study of the impact of Public
2Act 90-739 on the business of soliciting, selling, and shipping
3alcoholic liquor from outside of this State directly to
4residents of this State.
5    As part of its report, the Commission shall provide the
6following information:
7        (i) the amount of State excise and sales tax revenues
8    generated as a result of Public Act 90-739;
9        (ii) the amount of licensing fees received as a result
10    of Public Act 90-739;
11        (iii) the number of reported violations, the number of
12    cease and desist notices issued by the Commission, the
13    number of notices of violations issued to the Department of
14    Revenue, and the number of notices and complaints of
15    violations to law enforcement officials.
16(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
17100-134, eff. 8-18-17; 100-201, eff. 8-18-17; 100-816, eff.
188-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. 8-23-18;
19revised 10-24-18.)
 
20    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
21    Sec. 5-1. Licenses issued by the Illinois Liquor Control
22Commission shall be of the following classes:
23    (a) Manufacturer's license - Class 1. Distiller, Class 2.
24Rectifier, Class 3. Brewer, Class 4. First Class Wine
25Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.

 

 

SB1672- 19 -LRB101 07838 RPS 52892 b

1First Class Winemaker, Class 7. Second Class Winemaker, Class
28. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
310. Class 1 Brewer, Class 11. Class 2 Brewer,
4    (b) Distributor's license,
5    (c) Importing Distributor's license,
6    (d) Retailer's license,
7    (e) Special Event Retailer's license (not-for-profit),
8    (f) Railroad license,
9    (g) Boat license,
10    (h) Non-Beverage User's license,
11    (i) Wine-maker's premises license,
12    (j) Airplane license,
13    (k) Foreign importer's license,
14    (l) Broker's license,
15    (m) Non-resident dealer's license,
16    (n) Brew Pub license,
17    (o) Auction liquor license,
18    (p) Caterer retailer license,
19    (q) Special use permit license,
20    (r) Winery shipper's license,
21    (s) Craft distiller tasting permit,
22    (t) Brewer warehouse permit, .
23    (u) Craft distiller warehouse permit.
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

 

 

SB1672- 20 -LRB101 07838 RPS 52892 b

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.
17    Class 4. A first class wine-manufacturer may make sales and
18deliveries of up to 50,000 gallons of wine to manufacturers,
19importing distributors and distributors, and to no other
20licensees.
21    Class 5. A second class Wine manufacturer may make sales
22and deliveries of more than 50,000 gallons of wine to
23manufacturers, importing distributors and distributors and to
24no other licensees.
25    Class 6. A first-class wine-maker's license shall allow the
26manufacture of up to 50,000 gallons of wine per year, and the

 

 

SB1672- 21 -LRB101 07838 RPS 52892 b

1storage and sale of such wine to distributors in the State and
2to persons without the State, as may be permitted by law. A
3person who, prior to June 1, 2008 (the effective date of Public
4Act 95-634), is a holder of a first-class wine-maker's license
5and annually produces more than 25,000 gallons of its own wine
6and who distributes its wine to licensed retailers shall cease
7this practice on or before July 1, 2008 in compliance with
8Public Act 95-634.
9    Class 7. A second-class wine-maker's license shall allow
10the manufacture of between 50,000 and 150,000 gallons of wine
11per year, and the storage and sale of such wine to distributors
12in this State and to persons without the State, as may be
13permitted by law. A person who, prior to June 1, 2008 (the
14effective date of Public Act 95-634), is a holder of a
15second-class wine-maker's license and annually produces more
16than 25,000 gallons of its own wine and who distributes its
17wine to licensed retailers shall cease this practice on or
18before July 1, 2008 in compliance with Public Act 95-634.
19    Class 8. A limited wine-manufacturer may make sales and
20deliveries not to exceed 40,000 gallons of wine per year to
21distributors, and to non-licensees in accordance with the
22provisions of this Act.
23    Class 9. A craft distiller license shall allow the
24manufacture of up to 100,000 gallons of spirits by distillation
25per year and the storage of such spirits and shall allow the
26sale and offering for sale at retail for use and consumption on

 

 

SB1672- 22 -LRB101 07838 RPS 52892 b

1the premises specified in the license any form of alcoholic
2liquor purchased from a licensed distributor or importing
3distributor. If a craft distiller licensee, including a craft
4distiller licensee who holds more than one craft distiller
5license, is not affiliated with any other manufacturer of
6spirits, then the craft distiller licensee may sell such
7spirits to distributors in this State and up to 10,000 2,500
8gallons of such spirits to non-licensees to the extent
9permitted by any exemption approved by the Commission pursuant
10to Section 6-4 of this Act. A craft distiller license holder
11may store such spirits at a non-contiguous licensed location,
12but at no time shall a craft distiller license holder directly
13or indirectly produce in the aggregate more than 100,000
14gallons of spirits per year.
15    A craft distiller licensee may hold more than one craft
16distiller's license. However, a craft distiller that holds more
17than one craft distiller license shall not manufacture, in the
18aggregate, more than 100,000 gallons of spirits by distillation
19per year and shall not sell, in the aggregate, more than 10,000
202,500 gallons of such spirits to non-licensees in accordance
21with an exemption approved by the State Commission pursuant to
22Section 6-4 of this Act.
23    Any craft distiller licensed under this Act who on July 28,
242010 (the effective date of Public Act 96-1367) was licensed as
25a distiller and manufactured no more spirits than permitted by
26this Section shall not be required to pay the initial licensing

 

 

SB1672- 23 -LRB101 07838 RPS 52892 b

1fee.
2    Class 10. A class 1 brewer license, which may only be
3issued to a licensed brewer or licensed non-resident dealer,
4shall allow the manufacture of up to 930,000 gallons of beer
5per year provided that the class 1 brewer licensee does not
6manufacture more than a combined 930,000 gallons of beer per
7year and is not a member of or affiliated with, directly or
8indirectly, a manufacturer that produces more than 930,000
9gallons of beer per year or any other alcoholic liquor. A class
101 brewer licensee may make sales and deliveries to importing
11distributors and distributors and to retail licensees in
12accordance with the conditions set forth in paragraph (18) of
13subsection (a) of Section 3-12 of this Act. If the State
14Commission provides prior approval, a class 1 brewer may
15annually transfer up to 930,000 gallons of beer manufactured by
16that class 1 brewer to the premises of a licensed class 1
17brewer wholly owned and operated by the same licensee.
18    Class 11. A class 2 brewer license, which may only be
19issued to a licensed brewer or licensed non-resident dealer,
20shall allow the manufacture of up to 3,720,000 gallons of beer
21per year provided that the class 2 brewer licensee does not
22manufacture more than a combined 3,720,000 gallons of beer per
23year and is not a member of or affiliated with, directly or
24indirectly, a manufacturer that produces more than 3,720,000
25gallons of beer per year or any other alcoholic liquor. A class
262 brewer licensee may make sales and deliveries to importing

 

 

SB1672- 24 -LRB101 07838 RPS 52892 b

1distributors and distributors, but shall not make sales or
2deliveries to any other licensee. If the State Commission
3provides prior approval, a class 2 brewer licensee may annually
4transfer up to 3,720,000 gallons of beer manufactured by that
5class 2 brewer licensee to the premises of a licensed class 2
6brewer wholly owned and operated by the same licensee.
7    A class 2 brewer may transfer beer to a brew pub wholly
8owned and operated by the class 2 brewer subject to the
9following limitations and restrictions: (i) the transfer shall
10not annually exceed more than 31,000 gallons; (ii) the annual
11amount transferred shall reduce the brew pub's annual permitted
12production limit; (iii) all beer transferred shall be subject
13to Article VIII of this Act; (iv) a written record shall be
14maintained by the brewer and brew pub specifying the amount,
15date of delivery, and receipt of the product by the brew pub;
16and (v) the brew pub shall be located no farther than 80 miles
17from the class 2 brewer's licensed location.
18    A class 2 brewer shall, prior to transferring beer to a
19brew pub wholly owned by the class 2 brewer, furnish a written
20notice to the State Commission of intent to transfer beer
21setting forth the name and address of the brew pub and shall
22annually submit to the State Commission a verified report
23identifying the total gallons of beer transferred to the brew
24pub wholly owned by the class 2 brewer.
25    (a-1) A manufacturer which is licensed in this State to
26make sales or deliveries of alcoholic liquor to licensed

 

 

SB1672- 25 -LRB101 07838 RPS 52892 b

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

 

 

SB1672- 26 -LRB101 07838 RPS 52892 b

1or both beer and cider to brewers, class 1 brewers, and class 2
2brewers that, pursuant to subsection (e) of Section 6-4 of this
3Act, sell beer, cider, or both beer and cider to non-licensees
4at their breweries. No person licensed as a distributor shall
5be granted a non-resident dealer's license.
6    (c) An importing distributor's license may be issued to and
7held by those only who are duly licensed distributors, upon the
8filing of an application by a duly licensed distributor, with
9the Commission and the Commission shall, without the payment of
10any fee, immediately issue such importing distributor's
11license to the applicant, which shall allow the importation of
12alcoholic liquor by the licensee into this State from any point
13in the United States outside this State, and the purchase of
14alcoholic liquor in barrels, casks or other bulk containers and
15the bottling of such alcoholic liquors before resale thereof,
16but all bottles or containers so filled shall be sealed,
17labeled, stamped and otherwise made to comply with all
18provisions, rules and regulations governing manufacturers in
19the preparation and bottling of alcoholic liquors. The
20importing distributor's license shall permit such licensee to
21purchase alcoholic liquor from Illinois licensed non-resident
22dealers and foreign importers only. No person licensed as an
23importing distributor shall be granted a non-resident dealer's
24license.
25    (d) A retailer's license shall allow the licensee to sell
26and offer for sale at retail, only in the premises specified in

 

 

SB1672- 27 -LRB101 07838 RPS 52892 b

1the license, alcoholic liquor for use or consumption, but not
2for resale in any form. Nothing in Public Act 95-634 shall
3deny, limit, remove, or restrict the ability of a holder of a
4retailer's license to transfer, deliver, or ship alcoholic
5liquor to the purchaser for use or consumption subject to any
6applicable local law or ordinance. Any retail license issued to
7a manufacturer shall only permit the manufacturer to sell beer
8at retail on the premises actually occupied by the
9manufacturer. For the purpose of further describing the type of
10business conducted at a retail licensed premises, a retailer's
11licensee may be designated by the State Commission as (i) an on
12premise consumption retailer, (ii) an off premise sale
13retailer, or (iii) a combined on premise consumption and off
14premise sale retailer.
15    Notwithstanding any other provision of this subsection
16(d), a retail licensee may sell alcoholic liquors to a special
17event retailer licensee for resale to the extent permitted
18under subsection (e).
19    (e) A special event retailer's license (not-for-profit)
20shall permit the licensee to purchase alcoholic liquors from an
21Illinois licensed distributor (unless the licensee purchases
22less than $500 of alcoholic liquors for the special event, in
23which case the licensee may purchase the alcoholic liquors from
24a licensed retailer) and shall allow the licensee to sell and
25offer for sale, at retail, alcoholic liquors for use or
26consumption, but not for resale in any form and only at the

 

 

SB1672- 28 -LRB101 07838 RPS 52892 b

1location and on the specific dates designated for the special
2event in the license. An applicant for a special event retailer
3license must (i) furnish with the application: (A) a resale
4number issued under Section 2c of the Retailers' Occupation Tax
5Act or evidence that the applicant is registered under Section
62a of the Retailers' Occupation Tax Act, (B) a current, valid
7exemption identification number issued under Section 1g of the
8Retailers' Occupation Tax Act, and a certification to the
9Commission that the purchase of alcoholic liquors will be a
10tax-exempt purchase, or (C) a statement that the applicant is
11not registered under Section 2a of the Retailers' Occupation
12Tax Act, does not hold a resale number under Section 2c of the
13Retailers' Occupation Tax Act, and does not hold an exemption
14number under Section 1g of the Retailers' Occupation Tax Act,
15in which event the Commission shall set forth on the special
16event retailer's license a statement to that effect; (ii)
17submit with the application proof satisfactory to the State
18Commission that the applicant will provide dram shop liability
19insurance in the maximum limits; and (iii) show proof
20satisfactory to the State Commission that the applicant has
21obtained local authority approval.
22    Nothing in this Act prohibits an Illinois licensed
23distributor from offering credit or a refund for unused,
24salable alcoholic liquors to a holder of a special event
25retailer's license or from the special event retailer's
26licensee from accepting the credit or refund of alcoholic

 

 

SB1672- 29 -LRB101 07838 RPS 52892 b

1liquors at the conclusion of the event specified in the
2license.
3    (f) A railroad license shall permit the licensee to import
4alcoholic liquors into this State from any point in the United
5States outside this State and to store such alcoholic liquors
6in this State; to make wholesale purchases of alcoholic liquors
7directly from manufacturers, foreign importers, distributors
8and importing distributors from within or outside this State;
9and to store such alcoholic liquors in this State; provided
10that the above powers may be exercised only in connection with
11the importation, purchase or storage of alcoholic liquors to be
12sold or dispensed on a club, buffet, lounge or dining car
13operated on an electric, gas or steam railway in this State;
14and provided further, that railroad licensees exercising the
15above powers shall be subject to all provisions of Article VIII
16of this Act as applied to importing distributors. A railroad
17license shall also permit the licensee to sell or dispense
18alcoholic liquors on any club, buffet, lounge or dining car
19operated on an electric, gas or steam railway regularly
20operated by a common carrier in this State, but shall not
21permit the sale for resale of any alcoholic liquors to any
22licensee within this State. A license shall be obtained for
23each car in which such sales are made.
24    (g) A boat license shall allow the sale of alcoholic liquor
25in individual drinks, on any passenger boat regularly operated
26as a common carrier on navigable waters in this State or on any

 

 

SB1672- 30 -LRB101 07838 RPS 52892 b

1riverboat operated under the Riverboat Gambling Act, which boat
2or riverboat maintains a public dining room or restaurant
3thereon.
4    (h) A non-beverage user's license shall allow the licensee
5to purchase alcoholic liquor from a licensed manufacturer or
6importing distributor, without the imposition of any tax upon
7the business of such licensed manufacturer or importing
8distributor as to such alcoholic liquor to be used by such
9licensee solely for the non-beverage purposes set forth in
10subsection (a) of Section 8-1 of this Act, and such licenses
11shall be divided and classified and shall permit the purchase,
12possession and use of limited and stated quantities of
13alcoholic liquor as follows:
14Class 1, not to exceed ......................... 500 gallons
15Class 2, not to exceed ....................... 1,000 gallons
16Class 3, not to exceed ....................... 5,000 gallons
17Class 4, not to exceed ...................... 10,000 gallons
18Class 5, not to exceed ....................... 50,000 gallons
19    (i) A wine-maker's premises license shall allow a licensee
20that concurrently holds a first-class wine-maker's license to
21sell and offer for sale at retail in the premises specified in
22such license not more than 50,000 gallons of the first-class
23wine-maker's wine that is made at the first-class wine-maker's
24licensed premises per year for use or consumption, but not for
25resale in any form. A wine-maker's premises license shall allow
26a licensee who concurrently holds a second-class wine-maker's

 

 

SB1672- 31 -LRB101 07838 RPS 52892 b

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

 

 

SB1672- 32 -LRB101 07838 RPS 52892 b

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

 

 

SB1672- 33 -LRB101 07838 RPS 52892 b

1(iii) the foreign importer complies with the provisions of
2Sections 6-5 and 6-6 of this Act to the same extent that these
3provisions apply to manufacturers.
4    (l) (i) A broker's license shall be required of all persons
5who solicit orders for, offer to sell or offer to supply
6alcoholic liquor to retailers in the State of Illinois, or who
7offer to retailers to ship or cause to be shipped or to make
8contact with distillers, rectifiers, brewers or manufacturers
9or any other party within or without the State of Illinois in
10order that alcoholic liquors be shipped to a distributor,
11importing distributor or foreign importer, whether such
12solicitation or offer is consummated within or without the
13State of Illinois.
14    No holder of a retailer's license issued by the Illinois
15Liquor Control Commission shall purchase or receive any
16alcoholic liquor, the order for which was solicited or offered
17for sale to such retailer by a broker unless the broker is the
18holder of a valid broker's license.
19    The broker shall, upon the acceptance by a retailer of the
20broker's solicitation of an order or offer to sell or supply or
21deliver or have delivered alcoholic liquors, promptly forward
22to the Illinois Liquor Control Commission a notification of
23said transaction in such form as the Commission may by
24regulations prescribe.
25    (ii) A broker's license shall be required of a person
26within this State, other than a retail licensee, who, for a fee

 

 

SB1672- 34 -LRB101 07838 RPS 52892 b

1or commission, promotes, solicits, or accepts orders for
2alcoholic liquor, for use or consumption and not for resale, to
3be shipped from this State and delivered to residents outside
4of this State by an express company, common carrier, or
5contract carrier. This Section does not apply to any person who
6promotes, solicits, or accepts orders for wine as specifically
7authorized in Section 6-29 of this Act.
8    A broker's license under this subsection (l) shall not
9entitle the holder to buy or sell any alcoholic liquors for his
10own account or to take or deliver title to such alcoholic
11liquors.
12    This subsection (l) shall not apply to distributors,
13employees of distributors, or employees of a manufacturer who
14has registered the trademark, brand or name of the alcoholic
15liquor pursuant to Section 6-9 of this Act, and who regularly
16sells such alcoholic liquor in the State of Illinois only to
17its registrants thereunder.
18    Any agent, representative, or person subject to
19registration pursuant to subsection (a-1) of this Section shall
20not be eligible to receive a broker's license.
21    (m) A non-resident dealer's license shall permit such
22licensee to ship into and warehouse alcoholic liquor into this
23State from any point outside of this State, and to sell such
24alcoholic liquor to Illinois licensed foreign importers and
25importing distributors and to no one else in this State;
26provided that (i) said non-resident dealer shall register with

 

 

SB1672- 35 -LRB101 07838 RPS 52892 b

1the Illinois Liquor Control Commission each and every brand of
2alcoholic liquor which it proposes to sell to Illinois
3licensees during the license period, (ii) it shall comply with
4all of the provisions of Section 6-9 hereof with respect to
5registration of such Illinois licensees as may be granted the
6right to sell such brands at wholesale by duly filing such
7registration statement, thereby authorizing the non-resident
8dealer to proceed to sell such brands at wholesale, and (iii)
9the non-resident dealer shall comply with the provisions of
10Sections 6-5 and 6-6 of this Act to the same extent that these
11provisions apply to manufacturers. No person licensed as a
12non-resident dealer shall be granted a distributor's or
13importing distributor's license.
14    (n) A brew pub license shall allow the licensee to only (i)
15manufacture up to 155,000 gallons of beer per year only on the
16premises specified in the license, (ii) make sales of the beer
17manufactured on the premises or, with the approval of the
18Commission, beer manufactured on another brew pub licensed
19premises that is wholly owned and operated by the same licensee
20to importing distributors, distributors, and to non-licensees
21for use and consumption, (iii) store the beer upon the
22premises, (iv) sell and offer for sale at retail from the
23licensed premises for off-premises consumption no more than
24155,000 gallons per year so long as such sales are only made
25in-person, (v) sell and offer for sale at retail for use and
26consumption on the premises specified in the license any form

 

 

SB1672- 36 -LRB101 07838 RPS 52892 b

1of alcoholic liquor purchased from a licensed distributor or
2importing distributor, and (vi) with the prior approval of the
3Commission, annually transfer no more than 155,000 gallons of
4beer manufactured on the premises to a licensed brew pub wholly
5owned and operated by the same licensee.
6    A brew pub licensee shall not under any circumstance sell
7or offer for sale beer manufactured by the brew pub licensee to
8retail licensees.
9    A person who holds a class 2 brewer license may
10simultaneously hold a brew pub license if the class 2 brewer
11(i) does not, under any circumstance, sell or offer for sale
12beer manufactured by the class 2 brewer to retail licensees;
13(ii) does not hold more than 3 brew pub licenses in this State;
14(iii) does not manufacture more than a combined 3,720,000
15gallons of beer per year, including the beer manufactured at
16the brew pub; and (iv) is not a member of or affiliated with,
17directly or indirectly, a manufacturer that produces more than
183,720,000 gallons of beer per year or any other alcoholic
19liquor.
20    Notwithstanding any other provision of this Act, a licensed
21brewer, class 2 brewer, or non-resident dealer who before July
221, 2015 manufactured less than 3,720,000 gallons of beer per
23year and held a brew pub license on or before July 1, 2015 may
24(i) continue to qualify for and hold that brew pub license for
25the licensed premises and (ii) manufacture more than 3,720,000
26gallons of beer per year and continue to qualify for and hold

 

 

SB1672- 37 -LRB101 07838 RPS 52892 b

1that brew pub license if that brewer, class 2 brewer, or
2non-resident dealer does not simultaneously hold a class 1
3brewer license and is not a member of or affiliated with,
4directly or indirectly, a manufacturer that produces more than
53,720,000 gallons of beer per year or that produces any other
6alcoholic liquor.
7    (o) A caterer retailer license shall allow the holder to
8serve alcoholic liquors as an incidental part of a food service
9that serves prepared meals which excludes the serving of snacks
10as the primary meal, either on or off-site whether licensed or
11unlicensed.
12    (p) An auction liquor license shall allow the licensee to
13sell and offer for sale at auction wine and spirits for use or
14consumption, or for resale by an Illinois liquor licensee in
15accordance with provisions of this Act. An auction liquor
16license will be issued to a person and it will permit the
17auction liquor licensee to hold the auction anywhere in the
18State. An auction liquor license must be obtained for each
19auction at least 14 days in advance of the auction date.
20    (q) A special use permit license shall allow an Illinois
21licensed retailer to transfer a portion of its alcoholic liquor
22inventory from its retail licensed premises to the premises
23specified in the license hereby created, and to sell or offer
24for sale at retail, only in the premises specified in the
25license hereby created, the transferred alcoholic liquor for
26use or consumption, but not for resale in any form. A special

 

 

SB1672- 38 -LRB101 07838 RPS 52892 b

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

 

 

SB1672- 39 -LRB101 07838 RPS 52892 b

1Commission, the Illinois Department of Revenue, and the courts
2of this State concerning the enforcement of this Act and any
3related laws, rules, and regulations, including authorizing
4the Department of Revenue and the Commission to conduct audits
5for the purpose of ensuring compliance with Public Act 95-634,
6and an acknowledgement that the wine manufacturer is in
7compliance with Section 6-2 of this Act. Any third party,
8except for a common carrier, authorized to ship wine on behalf
9of a first-class or second-class wine manufacturer's licensee,
10a first-class or second-class wine-maker's licensee, a limited
11wine manufacturer's licensee, or a person who is licensed to
12make wine under the laws of another state shall also be
13disclosed by the winery shipper's licensee, and a copy of the
14written appointment of the third-party wine provider, except
15for a common carrier, to the wine manufacturer shall be filed
16with the State Commission as a supplement to the winery
17shipper's license application or any renewal thereof. The
18winery shipper's license holder shall affirm under penalty of
19perjury, as part of the winery shipper's license application or
20renewal, that he or she only ships wine, either directly or
21indirectly through a third-party provider, from the licensee's
22own production.
23    Except for a common carrier, a third-party provider
24shipping wine on behalf of a winery shipper's license holder is
25the agent of the winery shipper's license holder and, as such,
26a winery shipper's license holder is responsible for the acts

 

 

SB1672- 40 -LRB101 07838 RPS 52892 b

1and omissions of the third-party provider acting on behalf of
2the license holder. A third-party provider, except for a common
3carrier, that engages in shipping wine into Illinois on behalf
4of a winery shipper's license holder shall consent to the
5jurisdiction of the State Commission and the State. Any
6third-party, except for a common carrier, holding such an
7appointment shall, by February 1 of each calendar year and upon
8request by the State Commission or the Department of Revenue,
9file with the State Commission a statement detailing each
10shipment made to an Illinois resident. The statement shall
11include the name and address of the third-party provider filing
12the statement, the time period covered by the statement, and
13the following information:
14        (1) the name, address, and license number of the winery
15    shipper on whose behalf the shipment was made;
16        (2) the quantity of the products delivered; and
17        (3) the date and address of the shipment.
18If the Department of Revenue or the State Commission requests a
19statement under this paragraph, the third-party provider must
20provide that statement no later than 30 days after the request
21is made. Any books, records, supporting papers, and documents
22containing information and data relating to a statement under
23this paragraph shall be kept and preserved for a period of 3
24years, unless their destruction sooner is authorized, in
25writing, by the Director of Revenue, and shall be open and
26available to inspection by the Director of Revenue or the State

 

 

SB1672- 41 -LRB101 07838 RPS 52892 b

1Commission or any duly authorized officer, agent, or employee
2of the State Commission or the Department of Revenue, at all
3times during business hours of the day. Any person who violates
4any provision of this paragraph or any rule of the State
5Commission for the administration and enforcement of the
6provisions of this paragraph is guilty of a Class C
7misdemeanor. In case of a continuing violation, each day's
8continuance thereof shall be a separate and distinct offense.
9    The State Commission shall adopt rules as soon as
10practicable to implement the requirements of Public Act 99-904
11and shall adopt rules prohibiting any such third-party
12appointment of a third-party provider, except for a common
13carrier, that has been deemed by the State Commission to have
14violated the provisions of this Act with regard to any winery
15shipper licensee.
16    A winery shipper licensee must pay to the Department of
17Revenue the State liquor gallonage tax under Section 8-1 for
18all wine that is sold by the licensee and shipped to a person
19in this State. For the purposes of Section 8-1, a winery
20shipper licensee shall be taxed in the same manner as a
21manufacturer of wine. A licensee who is not otherwise required
22to register under the Retailers' Occupation Tax Act must
23register under the Use Tax Act to collect and remit use tax to
24the Department of Revenue for all gallons of wine that are sold
25by the licensee and shipped to persons in this State. If a
26licensee fails to remit the tax imposed under this Act in

 

 

SB1672- 42 -LRB101 07838 RPS 52892 b

1accordance with the provisions of Article VIII of this Act, the
2winery shipper's license shall be revoked in accordance with
3the provisions of Article VII of this Act. If a licensee fails
4to properly register and remit tax under the Use Tax Act or the
5Retailers' Occupation Tax Act for all wine that is sold by the
6winery shipper and shipped to persons in this State, the winery
7shipper's license shall be revoked in accordance with the
8provisions of Article VII of this Act.
9    A winery shipper licensee must collect, maintain, and
10submit to the Commission on a semi-annual basis the total
11number of cases per resident of wine shipped to residents of
12this State. A winery shipper licensed under this subsection (r)
13must comply with the requirements of Section 6-29 of this Act.
14    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
15Section 3-12, the State Commission may receive, respond to, and
16investigate any complaint and impose any of the remedies
17specified in paragraph (1) of subsection (a) of Section 3-12.
18    As used in this subsection, "third-party provider" means
19any entity that provides fulfillment house services, including
20warehousing, packaging, distribution, order processing, or
21shipment of wine, but not the sale of wine, on behalf of a
22licensed winery shipper.
23    (s) A craft distiller tasting permit license shall allow an
24Illinois licensed craft distiller (i) to transfer a portion of
25its alcoholic liquor inventory from its craft distiller
26licensed premises to the premises specified in the license

 

 

SB1672- 43 -LRB101 07838 RPS 52892 b

1hereby created, (ii) and to conduct a sampling, only in the
2premises specified in the license hereby created, of the
3transferred alcoholic liquor in accordance with subsection (c)
4of Section 6-31 of this Act, (iii) to sell and offer for sale
5at retail, but not for resale in any form, up to 5,000 gallons
6of the transferred alcoholic liquor to the extent permitted by
7any exemption approved by the State Commission pursuant to
8Section 6-4, and (iv) to sell and offer for sale at retail for
9use and consumption on the premises specified in the license
10any form of alcoholic liquor purchased from a licensed
11distributor or importing distributor. Upon approval from the
12State Commission, a craft distiller tasting permit license
13shall allow the licensee to sell and offer for sale at (i) the
14craft distiller's licensed premises and (ii) at up to 2
15additional locations for use and consumption and not for
16resale. The transferred alcoholic liquor may not be sold or
17resold in any form. An applicant for the craft distiller
18tasting permit license must also submit with the application
19proof satisfactory to the State Commission that the applicant
20will provide dram shop liability insurance to the maximum
21limits and have local authority approval.
22    (t) A brewer warehouse permit may be issued to the holder
23of a class 1 brewer license or a class 2 brewer license. If the
24holder of the permit is a class 1 brewer licensee, the brewer
25warehouse permit shall allow the holder to store or warehouse
26up to 930,000 gallons of tax-determined beer manufactured by

 

 

SB1672- 44 -LRB101 07838 RPS 52892 b

1the holder of the permit at the premises specified on the
2permit. If the holder of the permit is a class 2 brewer
3licensee, the brewer warehouse permit shall allow the holder to
4store or warehouse up to 3,720,000 gallons of tax-determined
5beer manufactured by the holder of the permit at the premises
6specified on the permit. Sales to non-licensees are prohibited
7at the premises specified in the brewer warehouse permit.
8    (u) A craft distiller warehouse permit may be issued to the
9holder of a craft distiller tasting permit license. The craft
10distiller warehouse permit shall allow the holder to store or
11warehouse up to 500,000 gallons of spirits manufactured by the
12holder of the permit at the premises specified on the permit.
13Sales to non-licensees are prohibited at the premises specified
14in the brewer warehouse permit.
15(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
1699-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
171-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
18eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
19revised 10-2-18.)
 
20    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
21    Sec. 5-3. License fees. Except as otherwise provided
22herein, at the time application is made to the State Commission
23for a license of any class, the applicant shall pay to the
24State Commission the fee hereinafter provided for the kind of
25license applied for.

 

 

SB1672- 45 -LRB101 07838 RPS 52892 b

1    The fee for licenses issued by the State Commission shall
2be as follows:
3OnlineInitial
4renewallicense
5 or
6 non-online
7 renewal
8    For a manufacturer's license:
9    Class 1. Distiller .................$4,000$5,000
10    Class 2. Rectifier .................4,000 5,000
11    Class 3. Brewer ....................1,200 1,500
12    Class 4. First-class Wine
13        Manufacturer ...................750900
14    Class 5. Second-class
15        Wine Manufacturer ..............1,500 1,750
16    Class 6. First-class wine-maker ....750 900
17    Class 7. Second-class wine-maker ...1,500 1,750
18    Class 8. Limited Wine
19        Manufacturer....................250350
20    Class 9. Craft Distiller............ 2,000 2,500
21    Class 10. Class 1 Brewer............50 75
22    Class 11. Class 2 Brewer............ 75 100
23    For a Brew Pub License..............1,2001,500
24    For a caterer retailer's license....350 500
25    For a foreign importer's license ...25 25
26    For an importing distributor's

 

 

SB1672- 46 -LRB101 07838 RPS 52892 b

1        license.........................2525
2    For a distributor's license
3        (11,250,000 gallons
4        or over)........................1,4502,200
5    For a distributor's license
6        (over 4,500,000 gallons, but
7        under 11,250,000 gallons)....... 9501,450
8    For a distributor's license
9        (4,500,000 gallons or under)....300450
10    For a non-resident dealer's license
11        (500,000 gallons or over) ......1,200 1,500
12    For a non-resident dealer's license
13        (under 500,000 gallons) ........250 350
14    For a wine-maker's premises
15        license ........................250500
16    For a winery shipper's license
17        (under 250,000 gallons).........200 350
18    For a winery shipper's license
19        (250,000 or over, but
20        under 500,000 gallons)..........7501,000
21    For a winery shipper's license
22        (500,000 gallons or over).......1,200 1,500
23    For a wine-maker's premises license,
24        second location ................500 1,000
25    For a wine-maker's premises license,
26        third location .................5001,000

 

 

SB1672- 47 -LRB101 07838 RPS 52892 b

1    For a retailer's license ...........600 750
2    For a special event retailer's
3        license, (not-for-profit) ......25 25
4    For a special use permit license,
5        one day only ...................100 150
6        2 days or more .................150 250
7    For a railroad license .............100 150
8    For a boat license .................500 1,000
9    For an airplane license, times the
10        licensee's maximum number of
11        aircraft in flight, serving
12        liquor over the State at any
13        given time, which either
14        originate, terminate, or make
15        an intermediate stop in
16        the State.......................100150
17    For a non-beverage user's license:
18        Class 1 ........................2424
19        Class 2 ........................6060
20        Class 3 ........................120120
21        Class 4 ........................240240
22        Class 5 ........................600600
23    For a broker's license .............750 1,000
24    For an auction liquor license ......100 150
25    For a homebrewer special
26        event permit....................2525

 

 

SB1672- 48 -LRB101 07838 RPS 52892 b

1    For a craft distiller
2        tasting permit..................25 25
3    For a BASSET trainer license........ 300 350
4    For a tasting representative
5        license.........................200300
6    For a brewer warehouse permit....... 2525
7    For a craft distiller
8        warehouse permit................ 2525
9    Fees collected under this Section shall be paid into the
10Dram Shop Fund. On and after July 1, 2003 and until June 30,
112016, of the funds received for a retailer's license, in
12addition to the first $175, an additional $75 shall be paid
13into the Dram Shop Fund, and $250 shall be paid into the
14General Revenue Fund. On and after June 30, 2016, one-half of
15the funds received for a retailer's license shall be paid into
16the Dram Shop Fund and one-half of the funds received for a
17retailer's license shall be paid into the General Revenue Fund.
18Beginning June 30, 1990 and on June 30 of each subsequent year
19through June 29, 2003, any balance over $5,000,000 remaining in
20the Dram Shop Fund shall be credited to State liquor licensees
21and applied against their fees for State liquor licenses for
22the following year. The amount credited to each licensee shall
23be a proportion of the balance in the Dram Fund that is the
24same as the proportion of the license fee paid by the licensee
25under this Section for the period in which the balance was
26accumulated to the aggregate fees paid by all licensees during

 

 

SB1672- 49 -LRB101 07838 RPS 52892 b

1that period.
2    No fee shall be paid for licenses issued by the State
3Commission to the following non-beverage users:
4        (a) Hospitals, sanitariums, or clinics when their use
5    of alcoholic liquor is exclusively medicinal, mechanical
6    or scientific.
7        (b) Universities, colleges of learning or schools when
8    their use of alcoholic liquor is exclusively medicinal,
9    mechanical or scientific.
10        (c) Laboratories when their use is exclusively for the
11    purpose of scientific research.
12(Source: P.A. 99-448, eff. 8-24-15; 99-902, eff. 8-26-16;
1399-904, eff. 8-26-16; 100-201, eff. 8-18-17; 100-816, eff.
148-13-18.)
 
15    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
16    Sec. 6-4. (a) No person licensed by any licensing authority
17as a distiller, or a wine manufacturer, or any subsidiary or
18affiliate thereof, or any officer, associate, member, partner,
19representative, employee, agent or shareholder owning more
20than 5% of the outstanding shares of such person shall be
21issued an importing distributor's or distributor's license,
22nor shall any person licensed by any licensing authority as an
23importing distributor, distributor or retailer, or any
24subsidiary or affiliate thereof, or any officer or associate,
25member, partner, representative, employee, agent or

 

 

SB1672- 50 -LRB101 07838 RPS 52892 b

1shareholder owning more than 5% of the outstanding shares of
2such person be issued a distiller's license, a craft
3distiller's license, or a wine manufacturer's license; and no
4person or persons licensed as a distiller or craft distiller by
5any licensing authority shall have any interest, directly or
6indirectly, with such distributor or importing distributor.
7    However, an importing distributor or distributor, which on
8January 1, 1985 is owned by a brewer, or any subsidiary or
9affiliate thereof or any officer, associate, member, partner,
10representative, employee, agent or shareholder owning more
11than 5% of the outstanding shares of the importing distributor
12or distributor referred to in this paragraph, may own or
13acquire an ownership interest of more than 5% of the
14outstanding shares of a wine manufacturer and be issued a wine
15manufacturer's license by any licensing authority.
16    (b) The foregoing provisions shall not apply to any person
17licensed by any licensing authority as a distiller or wine
18manufacturer, or to any subsidiary or affiliate of any
19distiller or wine manufacturer who shall have been heretofore
20licensed by the State Commission as either an importing
21distributor or distributor during the annual licensing period
22expiring June 30, 1947, and shall actually have made sales
23regularly to retailers.
24    (c) Provided, however, that in such instances where a
25distributor's or importing distributor's license has been
26issued to any distiller or wine manufacturer or to any

 

 

SB1672- 51 -LRB101 07838 RPS 52892 b

1subsidiary or affiliate of any distiller or wine manufacturer
2who has, during the licensing period ending June 30, 1947, sold
3or distributed as such licensed distributor or importing
4distributor alcoholic liquors and wines to retailers, such
5distiller or wine manufacturer or any subsidiary or affiliate
6of any distiller or wine manufacturer holding such
7distributor's or importing distributor's license may continue
8to sell or distribute to retailers such alcoholic liquors and
9wines which are manufactured, distilled, processed or marketed
10by distillers and wine manufacturers whose products it sold or
11distributed to retailers during the whole or any part of its
12licensing periods; and such additional brands and additional
13products may be added to the line of such distributor or
14importing distributor, provided, that such brands and such
15products were not sold or distributed by any distributor or
16importing distributor licensed by the State Commission during
17the licensing period ending June 30, 1947, but can not sell or
18distribute to retailers any other alcoholic liquors or wines.
19    (d) It shall be unlawful for any distiller licensed
20anywhere to have any stock ownership or interest in any
21distributor's or importing distributor's license wherein any
22other person has an interest therein who is not a distiller and
23does not own more than 5% of any stock in any distillery.
24Nothing herein contained shall apply to such distillers or
25their subsidiaries or affiliates, who had a distributor's or
26importing distributor's license during the licensing period

 

 

SB1672- 52 -LRB101 07838 RPS 52892 b

1ending June 30, 1947, which license was owned in whole by such
2distiller, or subsidiaries or affiliates of such distiller.
3    (e) Any person licensed as a brewer, class 1 brewer, or
4class 2 brewer shall be permitted to sell on the licensed
5premises to non-licensees for on or off-premises consumption
6for the premises in which he or she actually conducts such
7business: (i) beer manufactured by the brewer, class 1 brewer,
8or class 2 brewer; (ii) beer manufactured by any other brewer,
9class 1 brewer, or class 2 brewer; and (iii) cider. Such sales
10shall be limited to on-premises, in-person sales only, for
11lawful consumption on or off premises. Such authorization shall
12be considered a privilege granted by the brewer license and,
13other than a manufacturer of beer as stated above, no
14manufacturer or distributor or importing distributor,
15excluding airplane licensees exercising powers provided in
16paragraph (i) of Section 5-1 of this Act, or any subsidiary or
17affiliate thereof, or any officer, associate, member, partner,
18representative, employee or agent, or shareholder shall be
19issued a retailer's license, nor shall any person having a
20retailer's license, excluding airplane licensees exercising
21powers provided in paragraph (i) of Section 5-1 of this Act, or
22any subsidiary or affiliate thereof, or any officer, associate,
23member, partner, representative or agent, or shareholder be
24issued a manufacturer's license or importing distributor's
25license.
26    A manufacturer of beer that imports or transfers beer into

 

 

SB1672- 53 -LRB101 07838 RPS 52892 b

1this State must comply with Sections 6-8 and 8-1 of this Act.
2    A person who holds a class 1 or class 2 brewer license and
3is authorized by this Section to sell beer to non-licensees
4shall not sell beer to non-licensees from more than 3 total
5brewer or commonly owned brew pub licensed locations in this
6State. The class 1 or class 2 brewer shall designate to the
7State Commission the brewer or brew pub locations from which it
8will sell beer to non-licensees.
9    A person licensed as a craft distiller, including a person
10who holds more than one craft distiller license, not affiliated
11with any other person manufacturing spirits may be authorized
12by the Commission to sell up to 10,000 2,500 gallons of spirits
13produced by the person to non-licensees for on or off-premises
14consumption for the premises in which he or she actually
15conducts business permitting only the retail sale of spirits
16manufactured at such premises. Such sales shall be limited to
17on-premises, in-person sales only, for lawful consumption on or
18off premises, and such authorization shall be considered a
19privilege granted by the craft distiller license. A craft
20distiller licensed for retail sale shall secure liquor
21liability insurance coverage in an amount at least equal to the
22maximum liability amounts set forth in subsection (a) of
23Section 6-21 of this Act.
24    A craft distiller license holder shall not deliver any
25alcoholic liquor to any non-licensee off the licensed premises.
26A craft distiller shall affirm in its annual craft distiller's

 

 

SB1672- 54 -LRB101 07838 RPS 52892 b

1license application that it does not produce more than 100,000
2gallons of distilled spirits annually and that the craft
3distiller does not sell more than 10,000 2,500 gallons of
4spirits to non-licensees for on or off-premises consumption. In
5the application, which shall be sworn under penalty of perjury,
6the craft distiller shall state the volume of production and
7sales for each year since the craft distiller's establishment.
8    (f) (Blank).
9    (g) Notwithstanding any of the foregoing prohibitions, a
10limited wine manufacturer may sell at retail at its
11manufacturing site for on or off premises consumption and may
12sell to distributors. A limited wine manufacturer licensee
13shall secure liquor liability insurance coverage in an amount
14at least equal to the maximum liability amounts set forth in
15subsection (a) of Section 6-21 of this Act.
16    (h) The changes made to this Section by Public Act 99-47
17shall not diminish or impair the rights of any person, whether
18a distiller, wine manufacturer, agent, or affiliate thereof,
19who requested in writing and submitted documentation to the
20State Commission on or before February 18, 2015 to be approved
21for a retail license pursuant to what has heretofore been
22subsection (f); provided that, on or before that date, the
23State Commission considered the intent of that person to apply
24for the retail license under that subsection and, by recorded
25vote, the State Commission approved a resolution indicating
26that such a license application could be lawfully approved upon

 

 

SB1672- 55 -LRB101 07838 RPS 52892 b

1that person duly filing a formal application for a retail
2license and if that person, within 90 days of the State
3Commission appearance and recorded vote, first filed an
4application with the appropriate local commission, which
5application was subsequently approved by the appropriate local
6commission prior to consideration by the State Commission of
7that person's application for a retail license. It is further
8provided that the State Commission may approve the person's
9application for a retail license or renewals of such license if
10such person continues to diligently adhere to all
11representations made in writing to the State Commission on or
12before February 18, 2015, or thereafter, or in the affidavit
13filed by that person with the State Commission to support the
14issuance of a retail license and to abide by all applicable
15laws and duly adopted rules.
16(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
1799-642, eff. 7-28-16; 99-902, eff. 8-26-16; 100-201, eff.
188-18-17; 100-816, eff. 8-13-18; 100-885, eff. 8-14-18; revised
1910-24-18.)