Illinois General Assembly - Full Text of HB3662
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Full Text of HB3662  100th General Assembly

HB3662ham001 100TH GENERAL ASSEMBLY

Rep. Tim Butler

Filed: 3/24/2017

 

 


 

 


 
10000HB3662ham001LRB100 10925 RPS 24224 a

1
AMENDMENT TO HOUSE BILL 3662

2    AMENDMENT NO. ______. Amend House Bill 3662 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 1-3.33, 1-3.38, 1-3.42, 3-12, 5-1, and 6-4 as
6follows:
 
7    (235 ILCS 5/1-3.33)
8    Sec. 1-3.33. "Brew Pub" means a person who manufactures no
9more than 155,000 gallons of beer, cider, and mead per year
10only at a designated licensed premises to make sales to
11importing distributors, distributors, and to non-licensees for
12use and consumption only, who stores beer, cider, or mead at
13the designated premises, and who is allowed to sell at retail
14from the licensed premises, provided that a brew pub licensee
15shall not sell for off-premises consumption more than 155,000
16gallons per year.

 

 

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1(Source: P.A. 99-448, eff. 8-24-15.)
 
2    (235 ILCS 5/1-3.38)
3    Sec. 1-3.38. Class 1 brewer. "Class 1 brewer" means a
4person who is a holder of a brewer license or non-resident
5dealer license who manufactures up to 930,000 gallons of beer,
6cider, and mead per year and who may make sales and deliveries
7to importing distributors and distributors and to retail
8licensees in accordance with the conditions set forth in
9paragraph (18) of subsection (a) of Section 3-12 of this Act.
10(Source: P.A. 98-401, eff. 8-16-13; 99-448, eff. 8-24-15.)
 
11    (235 ILCS 5/1-3.42)
12    Sec. 1-3.42. Class 2 brewer. "Class 2 brewer" means a
13person who is a holder of a brewer license or non-resident
14dealer license who manufactures up to 3,720,000 gallons of
15beer, cider, and mead per year for sale to a licensed importing
16distributor or distributor.
17(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16.)
 
18    (235 ILCS 5/3-12)
19    Sec. 3-12. Powers and duties of State Commission.
20    (a) The State commission shall have the following powers,
21functions, and duties:
22        (1) To receive applications and to issue licenses to
23    manufacturers, foreign importers, importing distributors,

 

 

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1    distributors, non-resident dealers, on premise consumption
2    retailers, off premise sale retailers, special event
3    retailer licensees, special use permit licenses, auction
4    liquor licenses, brew pubs, caterer retailers,
5    non-beverage users, railroads, including owners and
6    lessees of sleeping, dining and cafe cars, airplanes,
7    boats, brokers, and wine maker's premises licensees in
8    accordance with the provisions of this Act, and to suspend
9    or revoke such licenses upon the State commission's
10    determination, upon notice after hearing, that a licensee
11    has violated any provision of this Act or any rule or
12    regulation issued pursuant thereto and in effect for 30
13    days prior to such violation. Except in the case of an
14    action taken pursuant to a violation of Section 6-3, 6-5,
15    or 6-9, any action by the State Commission to suspend or
16    revoke a licensee's license may be limited to the license
17    for the specific premises where the violation occurred.
18        In lieu of suspending or revoking a license, the
19    commission may impose a fine, upon the State commission's
20    determination and notice after hearing, that a licensee has
21    violated any provision of this Act or any rule or
22    regulation issued pursuant thereto and in effect for 30
23    days prior to such violation.
24        For the purpose of this paragraph (1), when determining
25    multiple violations for the sale of alcohol to a person
26    under the age of 21, a second or subsequent violation for

 

 

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1    the sale of alcohol to a person under the age of 21 shall
2    only be considered if it was committed within 5 years after
3    the date when a prior violation for the sale of alcohol to
4    a person under the age of 21 was committed.
5        The fine imposed under this paragraph may not exceed
6    $500 for each violation. Each day that the activity, which
7    gave rise to the original fine, continues is a separate
8    violation. The maximum fine that may be levied against any
9    licensee, for the period of the license, shall not exceed
10    $20,000. The maximum penalty that may be imposed on a
11    licensee for selling a bottle of alcoholic liquor with a
12    foreign object in it or serving from a bottle of alcoholic
13    liquor with a foreign object in it shall be the destruction
14    of that bottle of alcoholic liquor for the first 10 bottles
15    so sold or served from by the licensee. For the eleventh
16    bottle of alcoholic liquor and for each third bottle
17    thereafter sold or served from by the licensee with a
18    foreign object in it, the maximum penalty that may be
19    imposed on the licensee is the destruction of the bottle of
20    alcoholic liquor and a fine of up to $50.
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

 

 

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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

 

 

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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.

 

 

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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

 

 

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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

 

 

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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) On or before January 15, 1994, the Commission
20    shall issue a written report to the Governor and General
21    Assembly that is to be based on a comprehensive study of
22    the impact on and implications for the State of Illinois of
23    Section 1926 of the federal Federal ADAMHA Reorganization
24    Act of 1992 (Public Law 102-321). This study shall address
25    the extent to which Illinois currently complies with the
26    provisions of P.L. 102-321 and the rules promulgated

 

 

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

 

 

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1    Illinois State Police and any other executive branch
2    agency, and private organizations that may have
3    information relevant to this report.
4        The Commission may contract with the Food and Drug
5    Administration of the U.S. Department of Health and Human
6    Services to conduct unannounced investigations of Illinois
7    tobacco vendors to determine compliance with federal laws
8    relating to the illegal sale of cigarettes and smokeless
9    tobacco products to persons under the age of 18.
10        (14) On or before April 30, 2008 and every 2 years
11    thereafter, the Commission shall present a written report
12    to the Governor and the General Assembly that shall be
13    based on a study of the impact of Public Act 95-634 this
14    amendatory Act of the 95th General Assembly on the business
15    of soliciting, selling, and shipping wine from inside and
16    outside of this State directly to residents of this State.
17    As part of its report, the Commission shall provide all of
18    the following information:
19            (A) The amount of State excise and sales tax
20        revenues generated.
21            (B) The amount of licensing fees received.
22            (C) The number of cases of wine shipped from inside
23        and outside of this State directly to residents of this
24        State.
25            (D) The number of alcohol compliance operations
26        conducted.

 

 

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

 

 

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

 

 

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

 

 

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1            (G) Nothing in this subsection (17) shall prohibit
2        a self-distribution exemption holder from entering
3        into or simultaneously having a distribution agreement
4        with a licensed Illinois distributor.
5            (H) It is the intent of this subsection (17) to
6        promote and continue orderly markets. The General
7        Assembly finds that in order to preserve Illinois'
8        regulatory distribution system it is necessary to
9        create an exception for smaller makers of wine as their
10        wines are frequently adjusted in varietals, mixes,
11        vintages, and taste to find and create market niches
12        sometimes too small for distributor or importing
13        distributor business strategies. Limited
14        self-distribution rights will afford and allow smaller
15        makers of wine access to the marketplace in order to
16        develop a customer base without impairing the
17        integrity of the 3-tier system.
18        (18) (A) A class 1 brewer licensee, who must also be
19    either a licensed brewer or licensed non-resident dealer
20    and annually manufacture less than 930,000 gallons of beer,
21    cider, and mead, may make application to the State
22    Commission for a self-distribution exemption to allow the
23    sale of not more than 232,500 gallons of the exemption
24    holder's beer, cider, and mead to retail licensees per
25    year.
26            (B) In the application, which shall be sworn under

 

 

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

 

 

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1        licensed brew pub.
2            (D) A self-distribution exemption holder shall
3        annually certify to the State Commission its
4        manufacture of beer, cider, and mead during the
5        previous 12 months and its anticipated manufacture and
6        sales of beer, cider, and mead for the next 12 months.
7        The State Commission may fine, suspend, or revoke a
8        self-distribution exemption after a hearing if it
9        finds that the exemption holder has made a material
10        misrepresentation in its application, violated a
11        revenue or alcoholic beverage law of Illinois,
12        exceeded the manufacture of 930,000 gallons of beer,
13        cider, and mead in any calendar year or became part of
14        an affiliated group manufacturing more than 930,000
15        gallons of beer, cider, and mead or any other alcoholic
16        beverage.
17            (E) The State Commission shall issue rules and
18        regulations governing self-distribution exemptions
19        consistent with this Act.
20            (F) Nothing in this paragraph (18) shall prohibit a
21        self-distribution exemption holder from entering into
22        or simultaneously having a distribution agreement with
23        a licensed Illinois importing distributor or a
24        distributor. If a self-distribution exemption holder
25        enters into a distribution agreement and has assigned
26        distribution rights to an importing distributor or

 

 

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1        distributor, then the self-distribution exemption
2        holder's distribution rights in the assigned
3        territories shall cease in a reasonable time not to
4        exceed 60 days.
5            (G) It is the intent of this paragraph (18) to
6        promote and continue orderly markets. The General
7        Assembly finds that in order to preserve Illinois'
8        regulatory distribution system, it is necessary to
9        create an exception for smaller manufacturers in order
10        to afford and allow such smaller manufacturers of beer,
11        cider, and mead access to the marketplace in order to
12        develop a customer base without impairing the
13        integrity of the 3-tier system.
14    (b) On or before April 30, 1999, the Commission shall
15present a written report to the Governor and the General
16Assembly that shall be based on a study of the impact of Public
17Act 90-739 this amendatory Act of 1998 on the business of
18soliciting, selling, and shipping alcoholic liquor from
19outside of this State directly to residents of this State.
20    As part of its report, the Commission shall provide the
21following information:
22        (i) the amount of State excise and sales tax revenues
23    generated as a result of Public Act 90-739 this amendatory
24    Act of 1998;
25        (ii) the amount of licensing fees received as a result
26    of Public Act 90-739 this amendatory Act of 1998;

 

 

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1        (iii) the number of reported violations, the number of
2    cease and desist notices issued by the Commission, the
3    number of notices of violations issued to the Department of
4    Revenue, and the number of notices and complaints of
5    violations to law enforcement officials.
6(Source: P.A. 98-401, eff. 8-16-13; 98-939, eff. 7-1-15;
798-941, eff. 1-1-15; 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
8revised 9-13-16.)
 
9    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
10    Sec. 5-1. Licenses issued by the Illinois Liquor Control
11Commission shall be of the following classes:
12    (a) Manufacturer's license - Class 1. Distiller, Class 2.
13Rectifier, Class 3. Brewer, Class 4. First Class Wine
14Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
15First Class Winemaker, Class 7. Second Class Winemaker, Class
168. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1710. Class 1 Brewer, Class 11. Class 2 Brewer,
18    (b) Distributor's license,
19    (c) Importing Distributor's license,
20    (d) Retailer's license,
21    (e) Special Event Retailer's license (not-for-profit),
22    (f) Railroad license,
23    (g) Boat license,
24    (h) Non-Beverage User's license,
25    (i) Wine-maker's premises license,

 

 

10000HB3662ham001- 20 -LRB100 10925 RPS 24224 a

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

 

 

10000HB3662ham001- 21 -LRB100 10925 RPS 24224 a

1    Class 3. A Brewer may make sales and deliveries of beer to
2importing distributors and distributors and may make sales as
3authorized under subsection (e) of Section 6-4 of this Act.
4    Class 4. A first class wine-manufacturer may make sales and
5deliveries of up to 50,000 gallons of wine to manufacturers,
6importing distributors and distributors, and to no other
7licensees.
8    Class 5. A second class Wine manufacturer may make sales
9and deliveries of more than 50,000 gallons of wine to
10manufacturers, importing distributors and distributors and to
11no other licensees.
12    Class 6. A first-class wine-maker's license shall allow the
13manufacture of up to 50,000 gallons of wine per year, and the
14storage and sale of such wine to distributors in the State and
15to persons without the State, as may be permitted by law. A
16person who, prior to June 1, 2008 (the effective date of Public
17Act 95-634), is a holder of a first-class wine-maker's license
18and annually produces more than 25,000 gallons of its own wine
19and who distributes its wine to licensed retailers shall cease
20this practice on or before July 1, 2008 in compliance with
21Public Act 95-634.
22    Class 7. A second-class wine-maker's license shall allow
23the manufacture of between 50,000 and 150,000 gallons of wine
24per year, and the storage and sale of such wine to distributors
25in this State and to persons without the State, as may be
26permitted by law. A person who, prior to June 1, 2008 (the

 

 

10000HB3662ham001- 22 -LRB100 10925 RPS 24224 a

1effective date of Public Act 95-634), is a holder of a
2second-class wine-maker's license and annually produces more
3than 25,000 gallons of its own wine and who distributes its
4wine to licensed retailers shall cease this practice on or
5before July 1, 2008 in compliance with Public Act 95-634.
6    Class 8. A limited wine-manufacturer may make sales and
7deliveries not to exceed 40,000 gallons of wine per year to
8distributors, and to non-licensees in accordance with the
9provisions of this Act.
10    Class 9. A craft distiller license shall allow the
11manufacture of up to 100,000 March 1, 2013 (Public Act 97-1166)
12gallons of spirits by distillation per year and the storage of
13such spirits. If a craft distiller licensee, including a craft
14distiller licensee who holds more than one craft distiller
15license, is not affiliated with any other manufacturer of
16spirits, then the craft distiller licensee may sell such
17spirits to distributors in this State and up to 2,500 gallons
18of such spirits to non-licensees to the extent permitted by any
19exemption approved by the Commission pursuant to Section 6-4 of
20this Act. A craft distiller license holder may store such
21spirits at a non-contiguous licensed location, but at no time
22shall a craft distiller license holder directly or indirectly
23produce in the aggregate more than 100,000 gallons of spirits
24per year.
25    A craft distiller licensee may hold more than one craft
26distiller's license. However, a craft distiller that holds more

 

 

10000HB3662ham001- 23 -LRB100 10925 RPS 24224 a

1than one craft distiller license shall not manufacture, in the
2aggregate, more than 100,000 gallons of spirits by distillation
3per year and shall not sell, in the aggregate, more than 2,500
4gallons of such spirits to non-licensees in accordance with an
5exemption approved by the State Commission pursuant to Section
66-4 of this Act.
7    Any craft distiller licensed under this Act who on July 28,
82010 (the effective date of Public Act 96-1367) was licensed as
9a distiller and manufactured no more spirits than permitted by
10this Section shall not be required to pay the initial licensing
11fee.
12    Class 10. A class 1 brewer license, which may only be
13issued to a licensed brewer or licensed non-resident dealer,
14shall allow the manufacture of up to 930,000 gallons of beer,
15cider, and mead per year provided that the class 1 brewer
16licensee does not manufacture more than a combined 930,000
17gallons of beer, cider, and mead per year and is not a member
18of or affiliated with, directly or indirectly, a manufacturer
19that produces more than 930,000 gallons of beer, cider, and
20mead per year or any other alcoholic liquor. A class 1 brewer
21licensee may make sales and deliveries to importing
22distributors and distributors and to retail licensees in
23accordance with the conditions set forth in paragraph (18) of
24subsection (a) of Section 3-12 of this Act.
25    Class 11. A class 2 brewer license, which may only be
26issued to a licensed brewer or licensed non-resident dealer,

 

 

10000HB3662ham001- 24 -LRB100 10925 RPS 24224 a

1shall allow the manufacture of up to 3,720,000 gallons of beer,
2cider, and mead per year provided that the class 2 brewer
3licensee does not manufacture more than a combined 3,720,000
4gallons of beer, cider, and mead per year and is not a member
5of or affiliated with, directly or indirectly, a manufacturer
6that produces more than 3,720,000 gallons of beer, cider, and
7mead per year or any other alcoholic liquor. A class 2 brewer
8licensee may make sales and deliveries to importing
9distributors and distributors, but shall not make sales or
10deliveries to any other licensee. If the State Commission
11provides prior approval, a class 2 brewer licensee may annually
12transfer up to 3,720,000 gallons of beer, cider, and mead
13manufactured by that class 2 brewer licensee to the premises of
14a licensed class 2 brewer wholly owned and operated by the same
15licensee.
16    (a-1) A manufacturer which is licensed in this State to
17make sales or deliveries of alcoholic liquor to licensed
18distributors or importing distributors and which enlists
19agents, representatives, or individuals acting on its behalf
20who contact licensed retailers on a regular and continual basis
21in this State must register those agents, representatives, or
22persons acting on its behalf with the State Commission.
23    Registration of agents, representatives, or persons acting
24on behalf of a manufacturer is fulfilled by submitting a form
25to the Commission. The form shall be developed by the
26Commission and shall include the name and address of the

 

 

10000HB3662ham001- 25 -LRB100 10925 RPS 24224 a

1applicant, the name and address of the manufacturer he or she
2represents, the territory or areas assigned to sell to or
3discuss pricing terms of alcoholic liquor, and any other
4questions deemed appropriate and necessary. All statements in
5the forms required to be made by law or by rule shall be deemed
6material, and any person who knowingly misstates any material
7fact under oath in an application is guilty of a Class B
8misdemeanor. Fraud, misrepresentation, false statements,
9misleading statements, evasions, or suppression of material
10facts in the securing of a registration are grounds for
11suspension or revocation of the registration. The State
12Commission shall post a list of registered agents on the
13Commission's website.
14    (b) A distributor's license shall allow the wholesale
15purchase and storage of alcoholic liquors and sale of alcoholic
16liquors to licensees in this State and to persons without the
17State, as may be permitted by law. No person licensed as a
18distributor shall be granted a non-resident dealer's license.
19    (c) An importing distributor's license may be issued to and
20held by those only who are duly licensed distributors, upon the
21filing of an application by a duly licensed distributor, with
22the Commission and the Commission shall, without the payment of
23any fee, immediately issue such importing distributor's
24license to the applicant, which shall allow the importation of
25alcoholic liquor by the licensee into this State from any point
26in the United States outside this State, and the purchase of

 

 

10000HB3662ham001- 26 -LRB100 10925 RPS 24224 a

1alcoholic liquor in barrels, casks or other bulk containers and
2the bottling of such alcoholic liquors before resale thereof,
3but all bottles or containers so filled shall be sealed,
4labeled, stamped and otherwise made to comply with all
5provisions, rules and regulations governing manufacturers in
6the preparation and bottling of alcoholic liquors. The
7importing distributor's license shall permit such licensee to
8purchase alcoholic liquor from Illinois licensed non-resident
9dealers and foreign importers only. No person licensed as an
10importing distributor shall be granted a non-resident dealer's
11license.
12    (d) A retailer's license shall allow the licensee to sell
13and offer for sale at retail, only in the premises specified in
14the license, alcoholic liquor for use or consumption, but not
15for resale in any form. Nothing in Public Act 95-634 shall
16deny, limit, remove, or restrict the ability of a holder of a
17retailer's license to transfer, deliver, or ship alcoholic
18liquor to the purchaser for use or consumption subject to any
19applicable local law or ordinance. Any retail license issued to
20a manufacturer shall only permit the manufacturer to sell beer
21at retail on the premises actually occupied by the
22manufacturer. For the purpose of further describing the type of
23business conducted at a retail licensed premises, a retailer's
24licensee may be designated by the State Commission as (i) an on
25premise consumption retailer, (ii) an off premise sale
26retailer, or (iii) a combined on premise consumption and off

 

 

10000HB3662ham001- 27 -LRB100 10925 RPS 24224 a

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

 

 

10000HB3662ham001- 28 -LRB100 10925 RPS 24224 a

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

 

 

10000HB3662ham001- 29 -LRB100 10925 RPS 24224 a

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

 

 

10000HB3662ham001- 30 -LRB100 10925 RPS 24224 a

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

 

 

10000HB3662ham001- 31 -LRB100 10925 RPS 24224 a

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

 

 

10000HB3662ham001- 32 -LRB100 10925 RPS 24224 a

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

 

 

10000HB3662ham001- 33 -LRB100 10925 RPS 24224 a

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

 

 

10000HB3662ham001- 34 -LRB100 10925 RPS 24224 a

1    (m) A non-resident dealer's license shall permit such
2licensee to ship into and warehouse alcoholic liquor into this
3State from any point outside of this State, and to sell such
4alcoholic liquor to Illinois licensed foreign importers and
5importing distributors and to no one else in this State;
6provided that (i) said non-resident dealer shall register with
7the Illinois Liquor Control Commission each and every brand of
8alcoholic liquor which it proposes to sell to Illinois
9licensees during the license period, (ii) it shall comply with
10all of the provisions of Section 6-9 hereof with respect to
11registration of such Illinois licensees as may be granted the
12right to sell such brands at wholesale, and (iii) the
13non-resident dealer shall comply with the provisions of
14Sections 6-5 and 6-6 of this Act to the same extent that these
15provisions apply to manufacturers. No person licensed as a
16non-resident dealer shall be granted a distributor's or
17importing distributor's license.
18    (n) A brew pub license shall allow the licensee to only (i)
19manufacture up to 155,000 gallons of beer, cider, and mead per
20year only on the premises specified in the license, (ii) make
21sales of the beer, cider, or mead manufactured on the premises
22or, with the approval of the Commission, beer, cider, or mead
23manufactured on another brew pub licensed premises that is
24wholly owned and operated by the same licensee to importing
25distributors, distributors, and to non-licensees for use and
26consumption, (iii) store the beer, cider, or mead upon the

 

 

10000HB3662ham001- 35 -LRB100 10925 RPS 24224 a

1premises, (iv) sell and offer for sale at retail from the
2licensed premises for off-premises consumption no more than
3155,000 gallons per year so long as such sales are only made
4in-person, (v) sell and offer for sale at retail for use and
5consumption on the premises specified in the license any form
6of alcoholic liquor purchased from a licensed distributor or
7importing distributor, and (vi) with the prior approval of the
8Commission, annually transfer no more than 155,000 gallons of
9beer, cider, and mead manufactured on the premises to a
10licensed brew pub wholly owned and operated by the same
11licensee.
12    A brew pub licensee shall not under any circumstance sell
13or offer for sale beer, cider, or mead manufactured by the brew
14pub licensee to retail licensees.
15    A person who holds a class 2 brewer license may
16simultaneously hold a brew pub license if the class 2 brewer
17(i) does not, under any circumstance, sell or offer for sale
18beer, cider, or mead manufactured by the class 2 brewer to
19retail licensees; (ii) does not hold more than 3 brew pub
20licenses in this State; (iii) does not manufacture more than a
21combined 3,720,000 gallons of beer, cider, and mead per year,
22including the beer, cider, and mead manufactured at the brew
23pub; and (iv) is not a member of or affiliated with, directly
24or indirectly, a manufacturer that produces more than 3,720,000
25gallons of beer, cider, and mead per year or any other
26alcoholic liquor.

 

 

10000HB3662ham001- 36 -LRB100 10925 RPS 24224 a

1    Notwithstanding any other provision of this Act, a licensed
2brewer, class 2 brewer, or non-resident dealer who before July
31, 2015 manufactured less than 3,720,000 gallons of beer per
4year and held a brew pub license on or before July 1, 2015 may
5(i) continue to qualify for and hold that brew pub license for
6the licensed premises and (ii) manufacture more than 3,720,000
7gallons of beer, cider, and mead per year and continue to
8qualify for and hold that brew pub license if that brewer,
9class 2 brewer, or non-resident dealer does not simultaneously
10hold a class 1 brewer license and is not a member of or
11affiliated with, directly or indirectly, a manufacturer that
12produces more than 3,720,000 gallons of beer, cider, and mead
13per year or that produces any other alcoholic liquor.
14    Notwithstanding any other provision of this Act, a licensed
15brewer or non-resident dealer who before July 1, 2015
16manufactured less than 3,720,000 gallons of beer per year and
17held a brew pub license on or before July 1, 2015 may (i)
18continue to qualify for and hold that brew pub license for the
19licensed premises and (ii) manufacture more than 3,720,000
20gallons of beer per year and continue to qualify for and hold
21that brew pub license if that non-resident dealer or brewer
22does not simultaneously hold a class 1 brewer license and is
23not a member of or affiliated with, directly or indirectly, a
24manufacturer that produces more than 3,720,000 gallons of beer,
25cider, and mead per year or that produces any other alcoholic
26liquor.

 

 

10000HB3662ham001- 37 -LRB100 10925 RPS 24224 a

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

 

 

10000HB3662ham001- 38 -LRB100 10925 RPS 24224 a

1maximum limits and have local authority approval.
2    (r) A winery shipper's license shall allow a person with a
3first-class or second-class wine manufacturer's license, a
4first-class or second-class wine-maker's license, or a limited
5wine manufacturer's license or who is licensed to make wine
6under the laws of another state to ship wine made by that
7licensee directly to a resident of this State who is 21 years
8of age or older for that resident's personal use and not for
9resale. Prior to receiving a winery shipper's license, an
10applicant for the license must provide the Commission with a
11true copy of its current license in any state in which it is
12licensed as a manufacturer of wine. An applicant for a winery
13shipper's license must also complete an application form that
14provides any other information the Commission deems necessary.
15The application form shall include all addresses from which the
16applicant for a winery shipper's license intends to ship wine,
17including the name and address of any third party, except for a
18common carrier, authorized to ship wine on behalf of the
19manufacturer. The application form shall include an
20acknowledgement consenting to the jurisdiction of the
21Commission, the Illinois Department of Revenue, and the courts
22of this State concerning the enforcement of this Act and any
23related laws, rules, and regulations, including authorizing
24the Department of Revenue and the Commission to conduct audits
25for the purpose of ensuring compliance with Public Act 95-634,
26and an acknowledgement that the wine manufacturer is in

 

 

10000HB3662ham001- 39 -LRB100 10925 RPS 24224 a

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

 

 

10000HB3662ham001- 40 -LRB100 10925 RPS 24224 a

1appointment shall, by February 1 of each calendar year, file
2with the State Commission a statement detailing each shipment
3made to an Illinois resident. The State Commission shall adopt
4rules as soon as practicable to implement the requirements of
5Public Act 99-904 this amendatory Act of the 99th General
6Assembly and shall adopt rules prohibiting any such third-party
7appointment of a third-party provider, except for a common
8carrier, that has been deemed by the State Commission to have
9violated the provisions of this Act with regard to any winery
10shipper licensee.
11    A winery shipper licensee must pay to the Department of
12Revenue the State liquor gallonage tax under Section 8-1 for
13all wine that is sold by the licensee and shipped to a person
14in this State. For the purposes of Section 8-1, a winery
15shipper licensee shall be taxed in the same manner as a
16manufacturer of wine. A licensee who is not otherwise required
17to register under the Retailers' Occupation Tax Act must
18register under the Use Tax Act to collect and remit use tax to
19the Department of Revenue for all gallons of wine that are sold
20by the licensee and shipped to persons in this State. If a
21licensee fails to remit the tax imposed under this Act in
22accordance with the provisions of Article VIII of this Act, the
23winery shipper's license shall be revoked in accordance with
24the provisions of Article VII of this Act. If a licensee fails
25to properly register and remit tax under the Use Tax Act or the
26Retailers' Occupation Tax Act for all wine that is sold by the

 

 

10000HB3662ham001- 41 -LRB100 10925 RPS 24224 a

1winery shipper and shipped to persons in this State, the winery
2shipper's license shall be revoked in accordance with the
3provisions of Article VII of this Act.
4    A winery shipper licensee must collect, maintain, and
5submit to the Commission on a semi-annual basis the total
6number of cases per resident of wine shipped to residents of
7this State. A winery shipper licensed under this subsection (r)
8must comply with the requirements of Section 6-29 of this Act.
9    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
10Section 3-12, the State Commission may receive, respond to, and
11investigate any complaint and impose any of the remedies
12specified in paragraph (1) of subsection (a) of Section 3-12.
13    (s) A craft distiller tasting permit license shall allow an
14Illinois licensed craft distiller to transfer a portion of its
15alcoholic liquor inventory from its craft distiller licensed
16premises to the premises specified in the license hereby
17created and to conduct a sampling, only in the premises
18specified in the license hereby created, of the transferred
19alcoholic liquor in accordance with subsection (c) of Section
206-31 of this Act. The transferred alcoholic liquor may not be
21sold or resold in any form. An applicant for the craft
22distiller tasting permit license must also submit with the
23application proof satisfactory to the State Commission that the
24applicant will provide dram shop liability insurance to the
25maximum limits and have local authority approval.
26(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;

 

 

10000HB3662ham001- 42 -LRB100 10925 RPS 24224 a

198-756, eff. 7-16-14; 99-448, eff. 8-24-15; 99-642, eff.
27-28-16; 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904,
3eff. 1-1-17; revised 9-15-16.)
 
4    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
5    Sec. 6-4. (a) No person licensed by any licensing authority
6as a distiller, or a wine manufacturer, or any subsidiary or
7affiliate thereof, or any officer, associate, member, partner,
8representative, employee, agent or shareholder owning more
9than 5% of the outstanding shares of such person shall be
10issued an importing distributor's or distributor's license,
11nor shall any person licensed by any licensing authority as an
12importing distributor, distributor or retailer, or any
13subsidiary or affiliate thereof, or any officer or associate,
14member, partner, representative, employee, agent or
15shareholder owning more than 5% of the outstanding shares of
16such person be issued a distiller's license, a craft
17distiller's license, or a wine manufacturer's license; and no
18person or persons licensed as a distiller or craft distiller by
19any licensing authority shall have any interest, directly or
20indirectly, with such distributor or importing distributor.
21    However, an importing distributor or distributor, which on
22January 1, 1985 is owned by a brewer, or any subsidiary or
23affiliate thereof or any officer, associate, member, partner,
24representative, employee, agent or shareholder owning more
25than 5% of the outstanding shares of the importing distributor

 

 

10000HB3662ham001- 43 -LRB100 10925 RPS 24224 a

1or distributor referred to in this paragraph, may own or
2acquire an ownership interest of more than 5% of the
3outstanding shares of a wine manufacturer and be issued a wine
4manufacturer's license by any licensing authority.
5    (b) The foregoing provisions shall not apply to any person
6licensed by any licensing authority as a distiller or wine
7manufacturer, or to any subsidiary or affiliate of any
8distiller or wine manufacturer who shall have been heretofore
9licensed by the State Commission as either an importing
10distributor or distributor during the annual licensing period
11expiring June 30, 1947, and shall actually have made sales
12regularly to retailers.
13    (c) Provided, however, that in such instances where a
14distributor's or importing distributor's license has been
15issued to any distiller or wine manufacturer or to any
16subsidiary or affiliate of any distiller or wine manufacturer
17who has, during the licensing period ending June 30, 1947, sold
18or distributed as such licensed distributor or importing
19distributor alcoholic liquors and wines to retailers, such
20distiller or wine manufacturer or any subsidiary or affiliate
21of any distiller or wine manufacturer holding such
22distributor's or importing distributor's license may continue
23to sell or distribute to retailers such alcoholic liquors and
24wines which are manufactured, distilled, processed or marketed
25by distillers and wine manufacturers whose products it sold or
26distributed to retailers during the whole or any part of its

 

 

10000HB3662ham001- 44 -LRB100 10925 RPS 24224 a

1licensing periods; and such additional brands and additional
2products may be added to the line of such distributor or
3importing distributor, provided, that such brands and such
4products were not sold or distributed by any distributor or
5importing distributor licensed by the State Commission during
6the licensing period ending June 30, 1947, but can not sell or
7distribute to retailers any other alcoholic liquors or wines.
8    (d) It shall be unlawful for any distiller licensed
9anywhere to have any stock ownership or interest in any
10distributor's or importing distributor's license wherein any
11other person has an interest therein who is not a distiller and
12does not own more than 5% of any stock in any distillery.
13Nothing herein contained shall apply to such distillers or
14their subsidiaries or affiliates, who had a distributor's or
15importing distributor's license during the licensing period
16ending June 30, 1947, which license was owned in whole by such
17distiller, or subsidiaries or affiliates of such distiller.
18    (e) Any person licensed as a brewer, class 1 brewer, or
19class 2 brewer shall be permitted to sell on the licensed
20premises to non-licensees for on or off-premises consumption
21for the premises in which he or she actually conducts such
22business beer manufactured by the brewer, class 1 brewer, or
23class 2 brewer. Any person licensed as a class 1 brewer or
24class 2 brewer shall be permitted to sell on the licensed
25premises to non-licensees for on or off-premises consumption
26for the premises in which he or she actually conducts such

 

 

10000HB3662ham001- 45 -LRB100 10925 RPS 24224 a

1business beer, cider, or mead manufactured by the class 1
2brewer or class 2 brewer. Such sales shall be limited to
3on-premises, in-person sales only, for lawful consumption on or
4off premises. Such authorization shall be considered a
5privilege granted by the brewer license and, other than a
6manufacturer of beer as stated above, no manufacturer or
7distributor or importing distributor, excluding airplane
8licensees exercising powers provided in paragraph (i) of
9Section 5-1 of this Act, or any subsidiary or affiliate
10thereof, or any officer, associate, member, partner,
11representative, employee or agent, or shareholder shall be
12issued a retailer's license, nor shall any person having a
13retailer's license, excluding airplane licensees exercising
14powers provided in paragraph (i) of Section 5-1 of this Act, or
15any subsidiary or affiliate thereof, or any officer, associate,
16member, partner, representative or agent, or shareholder be
17issued a manufacturer's license or importing distributor's
18license.
19    A person who holds a class 1 or class 2 brewer license and
20is authorized by this Section to sell beer, cider, or mead to
21non-licensees shall not sell beer, cider, or mead to
22non-licensees from more than 3 total brewer or commonly owned
23brew pub licensed locations in this State. The class 1 or class
242 brewer shall designate to the State Commission the brewer or
25brew pub locations from which it will sell beer, cider, or mead
26to non-licensees.

 

 

10000HB3662ham001- 46 -LRB100 10925 RPS 24224 a

1    A person licensed as a craft distiller, including a person
2who holds more than one craft distiller license, not affiliated
3with any other person manufacturing spirits may be authorized
4by the Commission to sell up to 2,500 gallons of spirits
5produced by the person to non-licensees for on or off-premises
6consumption for the premises in which he or she actually
7conducts business permitting only the retail sale of spirits
8manufactured at such premises. Such sales shall be limited to
9on-premises, in-person sales only, for lawful consumption on or
10off premises, and such authorization shall be considered a
11privilege granted by the craft distiller license. A craft
12distiller licensed for retail sale shall secure liquor
13liability insurance coverage in an amount at least equal to the
14maximum liability amounts set forth in subsection (a) of
15Section 6-21 of this Act.
16    A craft distiller license holder shall not deliver any
17alcoholic liquor to any non-licensee off the licensed premises.
18A craft distiller shall affirm in its annual craft distiller's
19license application that it does not produce more than 100,000
20gallons of distilled spirits annually and that the craft
21distiller does not sell more than 2,500 gallons of spirits to
22non-licensees for on or off-premises consumption. In the
23application, which shall be sworn under penalty of perjury, the
24craft distiller shall state the volume of production and sales
25for each year since the craft distiller's establishment.
26    (f) (Blank).

 

 

10000HB3662ham001- 47 -LRB100 10925 RPS 24224 a

1    (g) Notwithstanding any of the foregoing prohibitions, a
2limited wine manufacturer may sell at retail at its
3manufacturing site for on or off premises consumption and may
4sell to distributors. A limited wine manufacturer licensee
5shall secure liquor liability insurance coverage in an amount
6at least equal to the maximum liability amounts set forth in
7subsection (a) of Section 6-21 of this Act.
8    (h) The changes made to this Section by Public Act 99-47
9shall not diminish or impair the rights of any person, whether
10a distiller, wine manufacturer, agent, or affiliate thereof,
11who requested in writing and submitted documentation to the
12State Commission on or before February 18, 2015 to be approved
13for a retail license pursuant to what has heretofore been
14subsection (f); provided that, on or before that date, the
15State Commission considered the intent of that person to apply
16for the retail license under that subsection and, by recorded
17vote, the State Commission approved a resolution indicating
18that such a license application could be lawfully approved upon
19that person duly filing a formal application for a retail
20license and if that person, within 90 days of the State
21Commission appearance and recorded vote, first filed an
22application with the appropriate local commission, which
23application was subsequently approved by the appropriate local
24commission prior to consideration by the State Commission of
25that person's application for a retail license. It is further
26provided that the State Commission may approve the person's

 

 

10000HB3662ham001- 48 -LRB100 10925 RPS 24224 a

1application for a retail license or renewals of such license if
2such person continues to diligently adhere to all
3representations made in writing to the State Commission on or
4before February 18, 2015, or thereafter, or in the affidavit
5filed by that person with the State Commission to support the
6issuance of a retail license and to abide by all applicable
7laws and duly adopted rules.
8(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
999-642, eff. 7-28-16; 99-902, eff. 8-26-16; revised
1010-25-16.)".