Full Text of SB1588 100th General Assembly
SB1588 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB1588 Introduced 2/9/2017, by Sen. Antonio Muñoz SYNOPSIS AS INTRODUCED: |
| 235 ILCS 5/3-12 | | 235 ILCS 5/6-4 | from Ch. 43, par. 121 |
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Amends the Liquor Control Act of 1934. In a provision that authorizes a brewer, class 1 brewer, or class 2 brewer to sell on the licensed premises beer manufactured by the brewer, class 1 brewer, or class 2 brewer to non-licensees, provides that the authorization shall not permit the sale of beer manufactured on the licensed premises (i) bearing the name of another brewer, class 1 brewer, or class 2 brewer or (ii) where the brand, trade name, and intellectual property rights to the beer are not owned or controlled by the manufacturing brewer, class 1 brewer, or class 2 brewer. Makes similar changes to provisions concerning craft distillers. Provides that a self-distribution exemption granted to a class 1 brewer shall not permit the self-distribution of beer manufactured on the licensed premises bearing the name of another manufacturer of beer not owned or under the control of the class 1 brewer. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning liquor.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Liquor Control Act of 1934 is amended by | 5 | | changing Sections 3-12 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, | 9 | | functions, 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 |
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| 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.
| 6 | | In lieu of suspending or revoking a license, the | 7 | | commission may impose
a fine, upon the State commission's | 8 | | determination and notice after hearing,
that a licensee has | 9 | | violated any provision of this Act or any rule or
| 10 | | regulation issued pursuant thereto and in effect for 30 | 11 | | days prior to such
violation. | 12 | | For the purpose of this paragraph (1), when determining | 13 | | multiple violations for the sale of alcohol to a person | 14 | | under the age of 21, a second or subsequent violation for | 15 | | the sale of alcohol to a person under the age of 21 shall | 16 | | only be considered if it was committed within 5 years after | 17 | | the date when a prior violation for the sale of alcohol to | 18 | | a person under the age of 21 was committed. | 19 | | The fine imposed under this paragraph may not exceed | 20 | | $500 for each
violation. Each day that the activity, which | 21 | | gave rise to the original fine,
continues is a separate | 22 | | violation. The maximum fine that may be levied against
any | 23 | | licensee, for the period of the license, shall not exceed | 24 | | $20,000.
The maximum penalty that may be imposed on a | 25 | | licensee for selling a bottle of
alcoholic liquor with a | 26 | | foreign object in it or serving from a bottle of
alcoholic |
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| 1 | | liquor with a foreign object in it shall be the destruction | 2 | | of that
bottle of alcoholic liquor for the first 10 bottles | 3 | | so sold or served from by
the licensee. For the eleventh | 4 | | bottle of alcoholic liquor and for each third
bottle | 5 | | thereafter sold or served from by the licensee with a | 6 | | foreign object in
it, the maximum penalty that may be | 7 | | imposed on the licensee is the destruction
of the bottle of | 8 | | alcoholic liquor and a fine of up to $50.
| 9 | | (2) To adopt such rules and regulations consistent with | 10 | | the
provisions of this Act which shall be necessary to | 11 | | carry on its
functions and duties to the end that the | 12 | | health, safety and welfare of
the People of the State of | 13 | | Illinois shall be protected and temperance in
the | 14 | | consumption of alcoholic liquors shall be fostered and | 15 | | promoted and
to distribute copies of such rules and | 16 | | regulations to all licensees
affected thereby.
| 17 | | (3) To call upon other administrative departments of | 18 | | the State,
county and municipal governments, county and | 19 | | city police departments and
upon prosecuting officers for | 20 | | such information and assistance as it
deems necessary in | 21 | | the performance of its duties.
| 22 | | (4) To recommend to local commissioners rules and | 23 | | regulations, not
inconsistent with the law, for the | 24 | | distribution and sale of alcoholic
liquors throughout the | 25 | | State.
| 26 | | (5) To inspect, or cause to be inspected, any
premises |
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| 1 | | in this State
where alcoholic liquors are manufactured, | 2 | | distributed, warehoused, or
sold. Nothing in this Act
| 3 | | authorizes an agent of the Commission to inspect private
| 4 | | areas within the premises without reasonable suspicion or a | 5 | | warrant
during an inspection. "Private areas" include, but | 6 | | are not limited to, safes, personal property, and closed | 7 | | desks.
| 8 | | (5.1) Upon receipt of a complaint or upon having | 9 | | knowledge that any person
is engaged in business as a | 10 | | manufacturer, importing distributor, distributor,
or | 11 | | retailer without a license or valid license, to notify the | 12 | | local liquor
authority, file a complaint with the State's | 13 | | Attorney's Office of the county
where the incident | 14 | | occurred, or initiate an investigation with the | 15 | | appropriate
law enforcement officials.
| 16 | | (5.2) To issue a cease and desist notice to persons | 17 | | shipping alcoholic
liquor
into this State from a point | 18 | | outside of this State if the shipment is in
violation of | 19 | | this Act.
| 20 | | (5.3) To receive complaints from licensees, local | 21 | | officials, law
enforcement agencies, organizations, and | 22 | | persons stating that any licensee has
been or is violating | 23 | | any provision of this Act or the rules and regulations
| 24 | | issued pursuant to this Act. Such complaints shall be in | 25 | | writing, signed and
sworn to by the person making the | 26 | | complaint, and shall state with specificity
the facts in |
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| 1 | | relation to the alleged violation. If the Commission has
| 2 | | reasonable grounds to believe that the complaint | 3 | | substantially alleges a
violation of this Act or rules and | 4 | | regulations adopted pursuant to this Act, it
shall conduct | 5 | | an investigation. If, after conducting an investigation, | 6 | | the
Commission is satisfied that the alleged violation did | 7 | | occur, it shall proceed
with disciplinary action against | 8 | | the licensee as provided in this Act.
| 9 | | (6) To hear and determine appeals from orders of a | 10 | | local commission
in accordance with the provisions of this | 11 | | Act, as hereinafter set forth.
Hearings under this | 12 | | subsection shall be held in Springfield or Chicago,
at | 13 | | whichever location is the more convenient for the majority | 14 | | of persons
who are parties to the hearing.
| 15 | | (7) The commission shall establish uniform systems of | 16 | | accounts to be
kept by all retail licensees having more | 17 | | than 4 employees, and for this
purpose the commission may | 18 | | classify all retail licensees having more
than 4 employees | 19 | | and establish a uniform system of accounts for each
class | 20 | | and prescribe the manner in which such accounts shall be | 21 | | kept.
The commission may also prescribe the forms of | 22 | | accounts to be kept by
all retail licensees having more | 23 | | than 4 employees, including but not
limited to accounts of | 24 | | earnings and expenses and any distribution,
payment, or | 25 | | other distribution of earnings or assets, and any other
| 26 | | forms, records and memoranda which in the judgment of the |
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| 1 | | commission may
be necessary or appropriate to carry out any | 2 | | of the provisions of this
Act, including but not limited to | 3 | | such forms, records and memoranda as
will readily and | 4 | | accurately disclose at all times the beneficial
ownership | 5 | | of such retail licensed business. The accounts, forms,
| 6 | | records and memoranda shall be available at all reasonable | 7 | | times for
inspection by authorized representatives of the | 8 | | State commission or by
any local liquor control | 9 | | commissioner or his or her authorized representative.
The | 10 | | commission, may, from time to time, alter, amend or repeal, | 11 | | in whole
or in part, any uniform system of accounts, or the | 12 | | form and manner of
keeping accounts.
| 13 | | (8) In the conduct of any hearing authorized to be held | 14 | | by the
commission, to appoint, at the commission's | 15 | | discretion, hearing officers
to conduct hearings involving | 16 | | complex issues or issues that will require a
protracted | 17 | | period of time to resolve, to examine, or cause to be | 18 | | examined,
under oath, any licensee, and to examine or cause | 19 | | to be examined the books and
records
of such licensee; to | 20 | | hear testimony and take proof material for its
information | 21 | | in the discharge of its duties hereunder; to administer or
| 22 | | cause to be administered oaths; for any such purpose to | 23 | | issue
subpoena or subpoenas to require the attendance of | 24 | | witnesses and the
production of books, which shall be | 25 | | effective in any part of this State, and
to adopt rules to | 26 | | implement its powers under this paragraph (8).
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| 1 | | Any Circuit Court may by order duly entered,
require | 2 | | the attendance of witnesses and the production of relevant | 3 | | books
subpoenaed by the State commission and the court may | 4 | | compel
obedience to its order by proceedings for contempt.
| 5 | | (9) To investigate the administration of laws in | 6 | | relation to
alcoholic liquors in this and other states and | 7 | | any foreign countries,
and to recommend from time to time | 8 | | to the Governor and through him or
her to the legislature | 9 | | of this State, such amendments to this Act, if any, as
it | 10 | | may think desirable and as will serve to further the | 11 | | general broad
purposes contained in Section 1-2 hereof.
| 12 | | (10) To adopt such rules and regulations consistent | 13 | | with the
provisions of this Act which shall be necessary | 14 | | for the control, sale or
disposition of alcoholic liquor | 15 | | damaged as a result of an accident, wreck,
flood, fire or | 16 | | other similar occurrence.
| 17 | | (11) To develop industry educational programs related | 18 | | to responsible
serving and selling, particularly in the | 19 | | areas of overserving consumers and
illegal underage | 20 | | purchasing and consumption of alcoholic beverages.
| 21 | | (11.1) To license persons providing education and | 22 | | training to alcohol
beverage sellers and servers for | 23 | | mandatory and non-mandatory training under the
Beverage | 24 | | Alcohol Sellers and Servers
Education and Training | 25 | | (BASSET) programs and to develop and administer a public
| 26 | | awareness program in Illinois to reduce or eliminate the |
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| 1 | | illegal purchase and
consumption of alcoholic beverage | 2 | | products by persons under the age of 21.
Application for a | 3 | | license shall be made on forms provided by the State
| 4 | | Commission.
| 5 | | (12) To develop and maintain a repository of license | 6 | | and regulatory
information.
| 7 | | (13) On or before January 15, 1994, the Commission | 8 | | shall issue
a written report to the Governor and General | 9 | | Assembly that is to be based on a
comprehensive study of | 10 | | the impact on and implications for the State of Illinois
of | 11 | | Section 1926 of the federal Federal ADAMHA Reorganization | 12 | | Act of 1992 (Public Law
102-321). This study shall address | 13 | | the extent to which Illinois currently
complies with the | 14 | | provisions of P.L. 102-321 and the rules promulgated | 15 | | pursuant
thereto.
| 16 | | As part of its report, the Commission shall provide the | 17 | | following essential
information:
| 18 | | (i) the number of retail distributors of tobacco | 19 | | products, by type and
geographic area, in the State;
| 20 | | (ii) the number of reported citations and | 21 | | successful convictions,
categorized by type and | 22 | | location of retail distributor, for violation of the
| 23 | | Prevention of Tobacco Use by Minors and Sale and | 24 | | Distribution of Tobacco Products Act and the Smokeless
| 25 | | Tobacco Limitation Act;
| 26 | | (iii) the extent and nature of organized |
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| 1 | | educational and governmental
activities that are | 2 | | intended to promote, encourage or otherwise secure
| 3 | | compliance with any Illinois laws that prohibit the | 4 | | sale or distribution of
tobacco products to minors; and
| 5 | | (iv) the level of access and availability of | 6 | | tobacco products to
individuals under the age of 18.
| 7 | | To obtain the data necessary to comply with the | 8 | | provisions of P.L. 102-321
and the requirements of this | 9 | | report, the Commission shall conduct random,
unannounced | 10 | | inspections of a geographically and scientifically | 11 | | representative
sample of the State's retail tobacco | 12 | | distributors.
| 13 | | The Commission shall consult with the Department of | 14 | | Public Health, the
Department of Human Services, the
| 15 | | Illinois State Police and any
other executive branch | 16 | | agency, and private organizations that may have
| 17 | | information relevant to this report.
| 18 | | The Commission may contract with the Food and Drug | 19 | | Administration of the
U.S. Department of Health and Human | 20 | | Services to conduct unannounced
investigations of Illinois | 21 | | tobacco vendors to determine compliance with federal
laws | 22 | | relating to the illegal sale of cigarettes and smokeless | 23 | | tobacco products
to persons under the age of 18.
| 24 | | (14) On or before April 30, 2008 and every 2 years
| 25 | | thereafter, the Commission shall present a written
report | 26 | | to the Governor and the General Assembly that shall
be |
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| 1 | | based on a study of the impact of Public Act 95-634 this | 2 | | amendatory Act of
the 95th General Assembly on the business | 3 | | of soliciting,
selling, and shipping wine from inside and | 4 | | outside of this
State directly to residents of this State. | 5 | | As part of its
report, the Commission shall provide all of | 6 | | the
following information: | 7 | | (A) The amount of State excise and sales tax
| 8 | | revenues generated. | 9 | | (B) The amount of licensing fees received. | 10 | | (C) The number of cases of wine shipped from inside
| 11 | | and outside of this State directly to residents of this
| 12 | | State. | 13 | | (D) The number of alcohol compliance operations
| 14 | | conducted. | 15 | | (E) The number of winery shipper's licenses
| 16 | | issued. | 17 | | (F) The number of each of the following: reported
| 18 | | violations; cease and desist notices issued by the
| 19 | | Commission; notices of violations issued by
the | 20 | | Commission and to the Department of Revenue;
and | 21 | | notices and complaints of violations to law
| 22 | | enforcement officials, including, without limitation,
| 23 | | the Illinois Attorney General and the U.S. Department
| 24 | | of Treasury's Alcohol and Tobacco Tax and Trade Bureau. | 25 | | (15) As a means to reduce the underage consumption of
| 26 | | alcoholic liquors, the Commission shall conduct
alcohol |
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| 1 | | compliance operations to investigate whether
businesses | 2 | | that are soliciting, selling, and shipping wine
from inside | 3 | | or outside of this State directly to residents
of this | 4 | | State are licensed by this State or are selling or
| 5 | | attempting to sell wine to persons under 21 years of age in
| 6 | | violation of this Act. | 7 | | (16) The Commission shall, in addition to
notifying any | 8 | | appropriate law enforcement agency, submit
notices of | 9 | | complaints or violations of Sections 6-29 and
6-29.1 by | 10 | | persons who do not hold a winery shipper's
license under | 11 | | this amendatory Act to the Illinois Attorney General and
to | 12 | | the U.S. Department of Treasury's Alcohol and Tobacco Tax | 13 | | and Trade Bureau. | 14 | | (17) (A) A person licensed to make wine under the laws | 15 | | of another state who has a winery shipper's license under | 16 | | this amendatory Act and annually produces less than 25,000 | 17 | | gallons of wine or a person who has a first-class or | 18 | | second-class wine manufacturer's license, a first-class or | 19 | | second-class wine-maker's license, or a limited wine | 20 | | manufacturer's license under this Act and annually | 21 | | produces less than 25,000 gallons of wine may make | 22 | | application to the Commission for a self-distribution | 23 | | exemption to allow the sale of not more than 5,000 gallons | 24 | | of the exemption holder's wine to retail licensees per | 25 | | year. | 26 | | (B) In the application, which shall be sworn under |
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| 1 | | penalty of perjury, such person shall state (1) the | 2 | | date it was established; (2) its volume of production | 3 | | and sales for each year since its establishment; (3) | 4 | | its efforts to establish distributor relationships; | 5 | | (4) that a self-distribution exemption is necessary to | 6 | | facilitate the marketing of its wine; and (5) that it | 7 | | will comply with the liquor and revenue laws of the | 8 | | United States, this State, and any other state where it | 9 | | is licensed. | 10 | | (C) The Commission shall approve the application | 11 | | for a self-distribution exemption if such person: (1) | 12 | | is in compliance with State revenue and liquor laws; | 13 | | (2) is not a member of any affiliated group that | 14 | | produces more than 25,000 gallons of wine per annum or | 15 | | produces any other alcoholic liquor; (3) will not | 16 | | annually produce for sale more than 25,000 gallons of | 17 | | wine; and (4) will not annually sell more than 5,000 | 18 | | gallons of its wine to retail licensees. | 19 | | (D) A self-distribution exemption holder shall | 20 | | annually certify to the Commission its production of | 21 | | wine in the previous 12 months and its anticipated | 22 | | production and sales for the next 12 months. The | 23 | | Commission may fine, suspend, or revoke a | 24 | | self-distribution exemption after a hearing if it | 25 | | finds that the exemption holder has made a material | 26 | | misrepresentation in its application, violated a |
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| 1 | | revenue or liquor law of Illinois, exceeded production | 2 | | of 25,000 gallons of wine in any calendar year, or | 3 | | become part of an affiliated group producing more than | 4 | | 25,000 gallons of wine or any other alcoholic liquor. | 5 | | (E) Except in hearings for violations of this Act | 6 | | or Public Act 95-634 amendatory Act or a bona fide | 7 | | investigation by duly sworn law enforcement officials, | 8 | | the Commission, or its agents, the Commission shall | 9 | | maintain the production and sales information of a | 10 | | self-distribution exemption holder as confidential and | 11 | | shall not release such information to any person. | 12 | | (F) The Commission shall issue regulations | 13 | | governing self-distribution exemptions consistent with | 14 | | this Section and this Act. | 15 | | (G) Nothing in this subsection (17) shall prohibit | 16 | | a self-distribution exemption holder from entering | 17 | | into or simultaneously having a distribution agreement | 18 | | with a licensed Illinois distributor. | 19 | | (H) It is the intent of this subsection (17) to | 20 | | promote and continue orderly markets. The General | 21 | | Assembly finds that in order to preserve Illinois' | 22 | | regulatory distribution system it is necessary to | 23 | | create an exception for smaller makers of wine as their | 24 | | wines are frequently adjusted in varietals, mixes, | 25 | | vintages, and taste to find and create market niches | 26 | | sometimes too small for distributor or importing |
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| 1 | | distributor business strategies. Limited | 2 | | self-distribution rights will afford and allow smaller | 3 | | makers of wine access to the marketplace in order to | 4 | | develop a customer base without impairing the | 5 | | integrity of the 3-tier system.
| 6 | | (18) (A) A class 1 brewer licensee, who must also be | 7 | | either a licensed brewer or licensed non-resident dealer | 8 | | and annually manufacture less than 930,000 gallons of beer, | 9 | | may make application to the State Commission for a | 10 | | self-distribution exemption to allow the sale of not more | 11 | | than 232,500 gallons of the exemption holder's beer to | 12 | | retail licensees per year ; however, such authorization for | 13 | | a self-distribution exemption by the class 1 brewer shall | 14 | | not permit the self-distribution of beer manufactured on | 15 | | the licensed premises bearing the name of another | 16 | | manufacturer of beer not owned or under the control of the | 17 | | class 1 brewer . | 18 | | (B) In the application, which shall be sworn under | 19 | | penalty of perjury, the class 1 brewer licensee shall | 20 | | state (1) the date it was established; (2) its volume | 21 | | of beer manufactured and sold for each year since its | 22 | | establishment; (3) its efforts to establish | 23 | | distributor relationships; (4) that a | 24 | | self-distribution exemption is necessary to facilitate | 25 | | the marketing of its beer; and (5) that it will comply | 26 | | with the alcoholic beverage and revenue laws of the |
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| 1 | | United States, this State, and any other state where it | 2 | | is licensed. | 3 | | (C) Any application submitted shall be posted on | 4 | | the State Commission's website at least 45 days prior | 5 | | to action by the State Commission. The State Commission | 6 | | shall approve the application for a self-distribution | 7 | | exemption if the class 1 brewer licensee: (1) is in | 8 | | compliance with the State, revenue, and alcoholic | 9 | | beverage laws; (2) is not a member of any affiliated | 10 | | group that manufactures manufacturers more than | 11 | | 930,000 gallons of beer per annum or produces any other | 12 | | alcoholic beverages; (3) shall not annually | 13 | | manufacture for sale more than 930,000 gallons of beer; | 14 | | (4) shall not annually sell more than 232,500 gallons | 15 | | of its beer to retail licensees; and (5) has | 16 | | relinquished any brew pub license held by the licensee, | 17 | | including any ownership interest it held in the | 18 | | licensed brew pub. | 19 | | (D) A self-distribution exemption holder shall | 20 | | annually certify to the State Commission its | 21 | | manufacture of beer during the previous 12 months and | 22 | | its anticipated manufacture and sales of beer for the | 23 | | next 12 months. The State Commission may fine, suspend, | 24 | | or revoke a self-distribution exemption after a | 25 | | hearing if it finds that the exemption holder has made | 26 | | a material misrepresentation in its application, |
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| 1 | | violated a revenue or alcoholic beverage law of | 2 | | Illinois, exceeded the manufacture of 930,000 gallons | 3 | | of beer in any calendar year or became part of an | 4 | | affiliated group manufacturing more than 930,000 | 5 | | gallons of beer or any other alcoholic beverage. | 6 | | (E) The State Commission shall issue rules and | 7 | | regulations governing self-distribution exemptions | 8 | | consistent with this Act. | 9 | | (F) Nothing in this paragraph (18) shall prohibit a | 10 | | self-distribution exemption holder from entering into | 11 | | or simultaneously having a distribution agreement with | 12 | | a licensed Illinois importing distributor or a | 13 | | distributor. If a self-distribution exemption holder | 14 | | enters into a distribution agreement and has assigned | 15 | | distribution rights to an importing distributor or | 16 | | distributor, then the self-distribution exemption | 17 | | holder's distribution rights in the assigned | 18 | | territories shall cease in a reasonable time not to | 19 | | exceed 60 days. | 20 | | (G) It is the intent of this paragraph (18) to | 21 | | promote and continue orderly markets. The General | 22 | | Assembly finds that in order to preserve Illinois' | 23 | | regulatory distribution system, it is necessary to | 24 | | create an exception for smaller manufacturers in order | 25 | | to afford and allow such smaller manufacturers of beer | 26 | | access to the marketplace in order to develop a |
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| 1 | | customer base without impairing the integrity of the | 2 | | 3-tier system. | 3 | | (b) On or before April 30, 1999, the Commission shall | 4 | | present a written
report to the Governor and the General | 5 | | Assembly that shall be based on a study
of the impact of Public | 6 | | Act 90-739 this amendatory Act of 1998 on the business of | 7 | | soliciting,
selling, and shipping
alcoholic liquor from | 8 | | outside of this State directly to residents of this
State.
| 9 | | As part of its report, the Commission shall provide the | 10 | | following
information:
| 11 | | (i) the amount of State excise and sales tax revenues | 12 | | generated as a
result of Public Act 90-739 this amendatory | 13 | | Act of 1998 ;
| 14 | | (ii) the amount of licensing fees received as a result | 15 | | of Public Act 90-739 this amendatory
Act of 1998 ;
| 16 | | (iii) the number of reported violations, the number of | 17 | | cease and desist
notices issued by the Commission, the | 18 | | number of notices of violations issued
to the Department of | 19 | | Revenue, and the number of notices and complaints of
| 20 | | violations to law enforcement officials.
| 21 | | (Source: P.A. 98-401, eff. 8-16-13; 98-939, eff. 7-1-15; | 22 | | 98-941, eff. 1-1-15; 99-78, eff. 7-20-15; 99-448, eff. 8-24-15; | 23 | | revised 9-13-16.)
| 24 | | (235 ILCS 5/6-4) (from Ch. 43, par. 121)
| 25 | | Sec. 6-4. (a) No person licensed by any licensing authority |
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| 1 | | as a
distiller, or a wine manufacturer, or any subsidiary or | 2 | | affiliate
thereof, or any officer, associate, member, partner, | 3 | | representative,
employee, agent or shareholder owning more | 4 | | than 5% of the outstanding
shares of such person shall be | 5 | | issued an importing distributor's or
distributor's license, | 6 | | nor shall any person licensed by any licensing
authority as an | 7 | | importing distributor, distributor or retailer, or any
| 8 | | subsidiary or affiliate thereof, or any officer or associate, | 9 | | member,
partner, representative, employee, agent or | 10 | | shareholder owning more than
5% of the outstanding shares of | 11 | | such person be issued a distiller's
license, a craft | 12 | | distiller's license, or a wine manufacturer's license; and no | 13 | | person or persons
licensed as a distiller or craft distiller by | 14 | | any licensing authority shall have any
interest, directly or | 15 | | indirectly, with such distributor or importing
distributor.
| 16 | | However, an importing distributor or distributor, which on | 17 | | January
1, 1985 is owned by a brewer, or any subsidiary or | 18 | | affiliate thereof or any
officer, associate, member, partner, | 19 | | representative, employee, agent or
shareholder owning more | 20 | | than 5% of the outstanding shares of the importing
distributor | 21 | | or distributor referred to in this paragraph, may own or
| 22 | | acquire an ownership interest of more than 5% of the | 23 | | outstanding shares of
a wine manufacturer and be issued a wine
| 24 | | manufacturer's license by any licensing authority.
| 25 | | (b) The foregoing provisions shall not apply to any person | 26 | | licensed
by any licensing authority as a distiller or wine |
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| 1 | | manufacturer, or to
any subsidiary or affiliate of any | 2 | | distiller or wine manufacturer who
shall have been heretofore | 3 | | licensed by the State Commission as either an
importing | 4 | | distributor or distributor during the annual licensing period
| 5 | | expiring June 30, 1947, and shall actually have made sales | 6 | | regularly to
retailers.
| 7 | | (c) Provided, however, that in such instances where a | 8 | | distributor's
or importing distributor's license has been | 9 | | issued to any distiller or
wine manufacturer or to any | 10 | | subsidiary or affiliate of any distiller or
wine manufacturer | 11 | | who has, during the licensing period ending June 30,
1947, sold | 12 | | or distributed as such licensed distributor or importing
| 13 | | distributor alcoholic liquors and wines to retailers, such | 14 | | distiller or
wine manufacturer or any subsidiary or affiliate | 15 | | of any distiller or
wine manufacturer holding such | 16 | | distributor's or importing distributor's
license may continue | 17 | | to sell or distribute to retailers such alcoholic
liquors and | 18 | | wines which are manufactured, distilled, processed or
marketed | 19 | | by distillers and wine manufacturers whose products it sold or
| 20 | | distributed to retailers during the whole or any part of its | 21 | | licensing
periods; and such additional brands and additional | 22 | | products may be added
to the line of such distributor or | 23 | | importing distributor, provided, that
such brands and such | 24 | | products were not sold or distributed by any
distributor or | 25 | | importing distributor licensed by the State Commission
during | 26 | | the licensing period ending June 30, 1947, but can not sell or
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| 1 | | distribute to retailers any other alcoholic liquors or wines.
| 2 | | (d) It shall be unlawful for any distiller licensed | 3 | | anywhere to have
any stock ownership or interest in any | 4 | | distributor's or importing
distributor's license wherein any | 5 | | other person has an interest therein
who is not a distiller and | 6 | | does not own more than 5% of any stock in any
distillery. | 7 | | Nothing herein contained shall apply to such distillers or
| 8 | | their subsidiaries or affiliates, who had a distributor's or | 9 | | importing
distributor's license during the licensing period | 10 | | ending June 30, 1947,
which license was owned in whole by such | 11 | | distiller, or subsidiaries or
affiliates of such distiller.
| 12 | | (e) Any person licensed as a brewer, class 1 brewer, or | 13 | | class 2 brewer is authorized shall be
permitted to sell on the | 14 | | licensed premises to non-licensees for on or off-premises | 15 | | consumption for the premises in which the licensee he
or she | 16 | | actually conducts such business beer manufactured by the | 17 | | brewer, class 1 brewer, or class 2 brewer ; however, such | 18 | | authorization shall not permit the sale of beer manufactured on | 19 | | the licensed premises (i) bearing the name of another brewer, | 20 | | class 1 brewer, or class 2 brewer or (ii) where the brand, | 21 | | trade name, and intellectual property rights to the beer are | 22 | | not owned or controlled by the manufacturing brewer, class 1 | 23 | | brewer, or class 2 brewer . Such sales shall be limited to | 24 | | on-premises, in-person sales only, for lawful consumption on or | 25 | | off premises. Such authorization shall be considered a | 26 | | privilege granted by the brewer license and, other than a |
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| 1 | | manufacturer of beer
as stated above, no manufacturer or | 2 | | distributor or importing
distributor, excluding airplane | 3 | | licensees exercising powers provided in
paragraph (i) of | 4 | | Section 5-1 of this Act, or any subsidiary or affiliate
| 5 | | thereof, or any officer,
associate, member, partner, | 6 | | representative, employee or agent, or
shareholder shall be | 7 | | issued a retailer's license, nor shall any person
having a | 8 | | retailer's license, excluding airplane licensees exercising | 9 | | powers
provided in paragraph (i) of Section 5-1 of this
Act, or | 10 | | any subsidiary or affiliate thereof, or
any officer, associate, | 11 | | member, partner, representative or agent, or
shareholder be | 12 | | issued a manufacturer's license or importing distributor's
| 13 | | license.
| 14 | | A person who holds a class 1 or class 2 brewer license and | 15 | | is authorized by this Section to sell beer to non-licensees | 16 | | shall not sell beer to non-licensees from more than 3 total | 17 | | brewer or commonly owned brew pub licensed locations in this | 18 | | State. The class 1 or class 2 brewer shall designate to the | 19 | | State Commission the brewer or brew pub locations from which it | 20 | | will sell beer to non-licensees. | 21 | | A person licensed as a craft distiller, including a person | 22 | | who holds more than one craft distiller license, not affiliated | 23 | | with any other person manufacturing spirits may be authorized | 24 | | by the Commission to sell up to 2,500 gallons of spirits | 25 | | produced by the person to non-licensees for on or off-premises | 26 | | consumption for the premises in which he or she actually |
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| 1 | | conducts business permitting only the retail sale of spirits | 2 | | manufactured at such premises. Such sales shall be limited to | 3 | | on-premises, in-person sales only, for lawful consumption on or | 4 | | off premises, and such authorization shall be considered a | 5 | | privilege granted by the craft distiller license ; however, such | 6 | | authorization shall not permit the sale of spirits manufactured | 7 | | on the licensed premises (i) bearing the name of another | 8 | | distiller or (ii) where the brand, trade name, and intellectual | 9 | | property rights are not owned or controlled by the | 10 | | manufacturing craft distiller . A craft distiller licensed for | 11 | | retail sale shall secure liquor liability insurance coverage in | 12 | | an amount at least equal to the maximum liability amounts set | 13 | | forth in subsection (a) of Section 6-21 of this Act. | 14 | | A craft distiller license holder shall not deliver any | 15 | | alcoholic liquor to any non-licensee off the licensed premises. | 16 | | A craft distiller shall affirm in its annual craft distiller's | 17 | | license application that it does not produce more than 100,000 | 18 | | gallons of distilled spirits annually and that the craft | 19 | | distiller does not sell more than 2,500 gallons of spirits to | 20 | | non-licensees for on or off-premises consumption. In the | 21 | | application, which shall be sworn under penalty of perjury, the | 22 | | craft distiller shall state the volume of production and sales | 23 | | for each year since the craft distiller's establishment. | 24 | | (f) (Blank).
| 25 | | (g) Notwithstanding any of the foregoing prohibitions, a | 26 | | limited wine
manufacturer may sell at retail at its |
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| 1 | | manufacturing site for on or off
premises consumption and may | 2 | | sell to distributors. A limited wine manufacturer licensee
| 3 | | shall secure liquor liability insurance coverage in an amount
| 4 | | at least equal to the maximum liability amounts set forth in
| 5 | | subsection (a) of Section 6-21 of this Act.
| 6 | | (h) The changes made to this Section by Public Act 99-47 | 7 | | shall not diminish or impair the rights of any person, whether | 8 | | a distiller, wine manufacturer, agent, or affiliate thereof, | 9 | | who requested in writing and submitted documentation to the | 10 | | State Commission on or before February 18, 2015 to be approved | 11 | | for a retail license pursuant to what has heretofore been | 12 | | subsection (f); provided that, on or before that date, the | 13 | | State Commission considered the intent of that person to apply | 14 | | for the retail license under that subsection and, by recorded | 15 | | vote, the State Commission approved a resolution indicating | 16 | | that such a license application could be lawfully approved upon | 17 | | that person duly filing a formal application for a retail | 18 | | license and if that person, within 90 days of the State | 19 | | Commission appearance and recorded vote, first filed an | 20 | | application with the appropriate local commission, which | 21 | | application was subsequently approved by the appropriate local | 22 | | commission prior to consideration by the State Commission of | 23 | | that person's application for a retail license. It is further | 24 | | provided that the State Commission may approve the person's | 25 | | application for a retail license or renewals of such license if | 26 | | such person continues to diligently adhere to all |
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| 1 | | representations made in writing to the State Commission on or | 2 | | before February 18, 2015, or thereafter, or in the affidavit | 3 | | filed by that person with the State Commission to support the | 4 | | issuance of a retail license and to abide by all applicable | 5 | | laws and duly adopted rules. | 6 | | (Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15; | 7 | | 99-642, eff. 7-28-16; 99-902, eff. 8-26-16; revised 10-25-16.)
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.
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