Illinois General Assembly - Full Text of SB0054
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Full Text of SB0054  101st General Assembly

SB0054ham003 101ST GENERAL ASSEMBLY

Rep. Sara Feigenholtz

Filed: 5/20/2019

 

 


 

 


 
10100SB0054ham003LRB101 04781 RPS 60467 a

1
AMENDMENT TO SENATE BILL 54

2    AMENDMENT NO. ______. Amend Senate Bill 54 by replacing
3everything after the enacting clause as follows:
 
4    "Section 5. The Liquor Control Act of 1934 is amended by
5changing Section 5-1 as follows:
 
6    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
7    Sec. 5-1. Licenses issued by the Illinois Liquor Control
8Commission shall be of the following classes:
9    (a) Manufacturer's license - Class 1. Distiller, Class 2.
10Rectifier, Class 3. Brewer, Class 4. First Class Wine
11Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
12First Class Winemaker, Class 7. Second Class Winemaker, Class
138. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1410. Class 1 Brewer, Class 11. Class 2 Brewer,
15    (b) Distributor's license,
16    (c) Importing Distributor's license,

 

 

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

 

 

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1alcoholic liquor to distillers, rectifiers, importing
2distributors, distributors and non-beverage users and to no
3other licensees.
4    Class 2. A Rectifier, who is not a distiller, as defined
5herein, may make sales and deliveries of alcoholic liquor to
6rectifiers, importing distributors, distributors, retailers
7and non-beverage users and to no other licensees.
8    Class 3. A Brewer may make sales and deliveries of beer to
9importing distributors and distributors and may make sales as
10authorized under subsection (e) of Section 6-4 of this Act.
11    Class 4. A first class wine-manufacturer may make sales and
12deliveries of up to 50,000 gallons of wine to manufacturers,
13importing distributors and distributors, and to no other
14licensees.
15    Class 5. A second class Wine manufacturer may make sales
16and deliveries of more than 50,000 gallons of wine to
17manufacturers, importing distributors and distributors and to
18no other licensees.
19    Class 6. A first-class wine-maker's license shall allow the
20manufacture of up to 50,000 gallons of wine per year, and the
21storage and sale of such wine to distributors in the State and
22to persons without the State, as may be permitted by law. A
23person who, prior to June 1, 2008 (the effective date of Public
24Act 95-634), is a holder of a first-class wine-maker's license
25and annually produces more than 25,000 gallons of its own wine
26and who distributes its wine to licensed retailers shall cease

 

 

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1this practice on or before July 1, 2008 in compliance with
2Public Act 95-634.
3    Class 7. A second-class wine-maker's license shall allow
4the manufacture of between 50,000 and 150,000 gallons of wine
5per year, and the storage and sale of such wine to distributors
6in this State and to persons without the State, as may be
7permitted by law. A person who, prior to June 1, 2008 (the
8effective date of Public Act 95-634), is a holder of a
9second-class wine-maker's license and annually produces more
10than 25,000 gallons of its own wine and who distributes its
11wine to licensed retailers shall cease this practice on or
12before July 1, 2008 in compliance with Public Act 95-634.
13    Class 8. A limited wine-manufacturer may make sales and
14deliveries not to exceed 40,000 gallons of wine per year to
15distributors, and to non-licensees in accordance with the
16provisions of this Act.
17    Class 9. A craft distiller license shall allow the
18manufacture of up to 100,000 gallons of spirits by distillation
19per year and the storage of such spirits. If a craft distiller
20licensee, including a craft distiller licensee who holds more
21than one craft distiller license, is not affiliated with any
22other manufacturer of spirits, then the craft distiller
23licensee may sell such spirits to distributors in this State
24and up to 2,500 gallons of such spirits to non-licensees to the
25extent permitted by any exemption approved by the Commission
26pursuant to Section 6-4 of this Act. A craft distiller license

 

 

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1holder may store such spirits at a non-contiguous licensed
2location, but at no time shall a craft distiller license holder
3directly or indirectly produce in the aggregate more than
4100,000 gallons of spirits per year.
5    A craft distiller licensee may hold more than one craft
6distiller's license. However, a craft distiller that holds more
7than one craft distiller license shall not manufacture, in the
8aggregate, more than 100,000 gallons of spirits by distillation
9per year and shall not sell, in the aggregate, more than 2,500
10gallons of such spirits to non-licensees in accordance with an
11exemption approved by the State Commission pursuant to Section
126-4 of this Act.
13    Any craft distiller licensed under this Act who on July 28,
142010 (the effective date of Public Act 96-1367) was licensed as
15a distiller and manufactured no more spirits than permitted by
16this Section shall not be required to pay the initial licensing
17fee.
18    Class 10. A class 1 brewer license, which may only be
19issued to a licensed brewer or licensed non-resident dealer,
20shall allow the manufacture of up to 930,000 gallons of beer
21per year provided that the class 1 brewer licensee does not
22manufacture more than a combined 930,000 gallons of beer per
23year and is not a member of or affiliated with, directly or
24indirectly, a manufacturer that produces more than 930,000
25gallons of beer per year or any other alcoholic liquor. A class
261 brewer licensee may make sales and deliveries to importing

 

 

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1distributors and distributors and to retail licensees in
2accordance with the conditions set forth in paragraph (18) of
3subsection (a) of Section 3-12 of this Act. If the State
4Commission provides prior approval, a class 1 brewer may
5annually transfer up to 930,000 gallons of beer manufactured by
6that class 1 brewer to the premises of a licensed class 1
7brewer wholly owned and operated by the same licensee.
8    Class 11. A class 2 brewer license, which may only be
9issued to a licensed brewer or licensed non-resident dealer,
10shall allow the manufacture of up to 3,720,000 gallons of beer
11per year provided that the class 2 brewer licensee does not
12manufacture more than a combined 3,720,000 gallons of beer per
13year and is not a member of or affiliated with, directly or
14indirectly, a manufacturer that produces more than 3,720,000
15gallons of beer per year or any other alcoholic liquor. A class
162 brewer licensee may make sales and deliveries to importing
17distributors and distributors, but shall not make sales or
18deliveries to any other licensee. If the State Commission
19provides prior approval, a class 2 brewer licensee may annually
20transfer up to 3,720,000 gallons of beer manufactured by that
21class 2 brewer licensee to the premises of a licensed class 2
22brewer wholly owned and operated by the same licensee.
23    A class 2 brewer may transfer beer to a brew pub wholly
24owned and operated by the class 2 brewer subject to the
25following limitations and restrictions: (i) the transfer shall
26not annually exceed more than 31,000 gallons; (ii) the annual

 

 

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1amount transferred shall reduce the brew pub's annual permitted
2production limit; (iii) all beer transferred shall be subject
3to Article VIII of this Act; (iv) a written record shall be
4maintained by the brewer and brew pub specifying the amount,
5date of delivery, and receipt of the product by the brew pub;
6and (v) the brew pub shall be located no farther than 80 miles
7from the class 2 brewer's licensed location.
8    A class 2 brewer shall, prior to transferring beer to a
9brew pub wholly owned by the class 2 brewer, furnish a written
10notice to the State Commission of intent to transfer beer
11setting forth the name and address of the brew pub and shall
12annually submit to the State Commission a verified report
13identifying the total gallons of beer transferred to the brew
14pub wholly owned by the class 2 brewer.
15    (a-1) A manufacturer which is licensed in this State to
16make sales or deliveries of alcoholic liquor to licensed
17distributors or importing distributors and which enlists
18agents, representatives, or individuals acting on its behalf
19who contact licensed retailers on a regular and continual basis
20in this State must register those agents, representatives, or
21persons acting on its behalf with the State Commission.
22    Registration of agents, representatives, or persons acting
23on behalf of a manufacturer is fulfilled by submitting a form
24to the Commission. The form shall be developed by the
25Commission and shall include the name and address of the
26applicant, the name and address of the manufacturer he or she

 

 

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

 

 

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1license to the applicant, which shall allow the importation of
2alcoholic liquor by the licensee into this State from any point
3in the United States outside this State, and the purchase of
4alcoholic liquor in barrels, casks or other bulk containers and
5the bottling of such alcoholic liquors before resale thereof,
6but all bottles or containers so filled shall be sealed,
7labeled, stamped and otherwise made to comply with all
8provisions, rules and regulations governing manufacturers in
9the preparation and bottling of alcoholic liquors. The
10importing distributor's license shall permit such licensee to
11purchase alcoholic liquor from Illinois licensed non-resident
12dealers and foreign importers only. No person licensed as an
13importing distributor shall be granted a non-resident dealer's
14license.
15    (d) A retailer's license shall allow the licensee to sell
16and offer for sale at retail, only in the premises specified in
17the license, alcoholic liquor for use or consumption, but not
18for resale in any form. Except as provided in Section 6-16 or
196-29, nothing in this Act Nothing in Public Act 95-634 shall
20deny, limit, remove, or restrict the ability of a holder of a
21retailer's license, issued by the State Commission, or its
22employee or agent to transfer, deliver, or ship alcoholic
23liquor to any lawful the purchaser for use or consumption
24subject to any applicable local law or ordinance. Any retail
25license issued to a manufacturer shall only permit the
26manufacturer to sell beer at retail on the premises actually

 

 

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1occupied by the manufacturer. For the purpose of further
2describing the type of business conducted at a retail licensed
3premises, a retailer's licensee may be designated by the State
4Commission as (i) an on premise consumption retailer, (ii) an
5off premise sale retailer, or (iii) a combined on premise
6consumption and off premise sale retailer.
7    Licensed retailers may transfer, deliver, or ship
8alcoholic liquor liquors to consumers through the following
9methods:
10        (1) retail curbside pickup by the consumer;
11        (2) by an owner, officer, director, shareholder, or
12    employee of the licensed retailer; or
13        (3) by common carrier, third-party contractor,
14    independent contractor, or agent with whom the licensed
15    retailer has contracted to make deliveries of alcoholic
16    liquors.
17    Any person making a delivery of alcoholic liquors shall
18ensure that (1) the recipient demonstrates, upon delivery, that
19he or she is at least 21 years of age, and the party making the
20delivery verifies the age of the recipient by adequate written
21evidence of age and identity consistent with subsection (a) of
22Section 6-16 of this Act; (2) deliveries are not made to a
23consumer who is visibly intoxicated; (3) deliveries are made
24within the State of Illinois; and (4) if the person making the
25delivery is a third-party contractor or agent with whom a
26licensed retailer has contracted to make deliveries, he or she

 

 

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1does not warehouse or otherwise maintain an inventory of
2alcoholic liquors.
3    A unit of local government shall not prohibit or regulate
4the ability of a consumer to order or receive unopened original
5packaged alcoholic liquors by licensed retailers that are
6located outside the unit of local government's boundaries.
7However, a unit of local government may regulate delivery
8within its boundaries by retailers that are physically located
9within the unit of local government's boundaries.
10    For the purposes of this subsection and except as otherwise
11provided in this subsection, sales through electronic, online,
12telephone, or other means, such as third-party applications or
13other software connecting recipients and licensed retailers,
14shall be treated as sales by the retailer if the alcoholic
15liquors delivered to the recipient are made available from the
16inventory of the licensed retailer.
17    If a license issued by the State Commission is restricted
18to sales that are made in person, this subsection does not
19permit the holder of that license to deliver or ship any
20alcoholic liquor from its premises.
21    Except for a municipality with a population of more than
221,000,000 inhabitants, a home rule unit may not regulate (i)
23the delivery of or (ii) the ordering or receiving for delivery
24by consumers of alcoholic liquors in a manner inconsistent with
25this subsection. This paragraph is a limitation under
26subsection (i) of Section 6 of Article VII of the Illinois

 

 

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1Constitution on the concurrent exercise by home rule units of
2powers and functions exercised by the State.
3    Notwithstanding any other provision of this subsection
4(d), a retail licensee may sell alcoholic liquors to a special
5event retailer licensee for resale to the extent permitted
6under subsection (e).
7    (e) A special event retailer's license (not-for-profit)
8shall permit the licensee to purchase alcoholic liquors from an
9Illinois licensed distributor (unless the licensee purchases
10less than $500 of alcoholic liquors for the special event, in
11which case the licensee may purchase the alcoholic liquors from
12a licensed retailer) and shall allow the licensee to sell and
13offer for sale, at retail, alcoholic liquors for use or
14consumption, but not for resale in any form and only at the
15location and on the specific dates designated for the special
16event in the license. An applicant for a special event retailer
17license must (i) furnish with the application: (A) a resale
18number issued under Section 2c of the Retailers' Occupation Tax
19Act or evidence that the applicant is registered under Section
202a of the Retailers' Occupation Tax Act, (B) a current, valid
21exemption identification number issued under Section 1g of the
22Retailers' Occupation Tax Act, and a certification to the
23Commission that the purchase of alcoholic liquors will be a
24tax-exempt purchase, or (C) a statement that the applicant is
25not registered under Section 2a of the Retailers' Occupation
26Tax Act, does not hold a resale number under Section 2c of the

 

 

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1Retailers' Occupation Tax Act, and does not hold an exemption
2number under Section 1g of the Retailers' Occupation Tax Act,
3in which event the Commission shall set forth on the special
4event retailer's license a statement to that effect; (ii)
5submit with the application proof satisfactory to the State
6Commission that the applicant will provide dram shop liability
7insurance in the maximum limits; and (iii) show proof
8satisfactory to the State Commission that the applicant has
9obtained local authority approval.
10    Nothing in this Act prohibits an Illinois licensed
11distributor from offering credit or a refund for unused,
12salable alcoholic liquors to a holder of a special event
13retailer's license or from the special event retailer's
14licensee from accepting the credit or refund of alcoholic
15liquors at the conclusion of the event specified in the
16license.
17    (f) A railroad license shall permit the licensee to import
18alcoholic liquors into this State from any point in the United
19States outside this State and to store such alcoholic liquors
20in this State; to make wholesale purchases of alcoholic liquors
21directly from manufacturers, foreign importers, distributors
22and importing distributors from within or outside this State;
23and to store such alcoholic liquors in this State; provided
24that the above powers may be exercised only in connection with
25the importation, purchase or storage of alcoholic liquors to be
26sold or dispensed on a club, buffet, lounge or dining car

 

 

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

 

 

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1alcoholic liquor as follows:
2Class 1, not to exceed ......................... 500 gallons
3Class 2, not to exceed ....................... 1,000 gallons
4Class 3, not to exceed ....................... 5,000 gallons
5Class 4, not to exceed ...................... 10,000 gallons
6Class 5, not to exceed ....................... 50,000 gallons
7    (i) A wine-maker's premises license shall allow a licensee
8that concurrently holds a first-class wine-maker's license to
9sell and offer for sale at retail in the premises specified in
10such license not more than 50,000 gallons of the first-class
11wine-maker's wine that is made at the first-class wine-maker's
12licensed premises per year for use or consumption, but not for
13resale in any form. A wine-maker's premises license shall allow
14a licensee who concurrently holds a second-class wine-maker's
15license to sell and offer for sale at retail in the premises
16specified in such license up to 100,000 gallons of the
17second-class wine-maker's wine that is made at the second-class
18wine-maker's licensed premises per year for use or consumption
19but not for resale in any form. A wine-maker's premises license
20shall allow a licensee that concurrently holds a first-class
21wine-maker's license or a second-class wine-maker's license to
22sell and offer for sale at retail at the premises specified in
23the wine-maker's premises license, for use or consumption but
24not for resale in any form, any beer, wine, and spirits
25purchased from a licensed distributor. Upon approval from the
26State Commission, a wine-maker's premises license shall allow

 

 

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1the licensee to sell and offer for sale at (i) the wine-maker's
2licensed premises and (ii) at up to 2 additional locations for
3use and consumption and not for resale. Each location shall
4require additional licensing per location as specified in
5Section 5-3 of this Act. A wine-maker's premises licensee shall
6secure liquor liability insurance coverage in an amount at
7least equal to the maximum liability amounts set forth in
8subsection (a) of Section 6-21 of this Act.
9    (j) An airplane 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 an airplane; and provided further, that
19airplane licensees exercising the above powers shall be subject
20to all provisions of Article VIII of this Act as applied to
21importing distributors. An airplane licensee shall also permit
22the sale or dispensing of alcoholic liquors on any passenger
23airplane regularly operated by a common carrier in this State,
24but shall not permit the sale for resale of any alcoholic
25liquors to any licensee within this State. A single airplane
26license shall be required of an airline company if liquor

 

 

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1service is provided on board aircraft in this State. The annual
2fee for such license shall be as determined in Section 5-3.
3    (k) A foreign importer's license shall permit such licensee
4to purchase alcoholic liquor from Illinois licensed
5non-resident dealers only, and to import alcoholic liquor other
6than in bulk from any point outside the United States and to
7sell such alcoholic liquor to Illinois licensed importing
8distributors and to no one else in Illinois; provided that (i)
9the foreign importer registers with the State Commission every
10brand of alcoholic liquor that it proposes to sell to Illinois
11licensees during the license period, (ii) the foreign importer
12complies with all of the provisions of Section 6-9 of this Act
13with respect to registration of such Illinois licensees as may
14be granted the right to sell such brands at wholesale, and
15(iii) the foreign importer complies with the provisions of
16Sections 6-5 and 6-6 of this Act to the same extent that these
17provisions apply to manufacturers.
18    (l) (i) A broker's license shall be required of all persons
19who solicit orders for, offer to sell or offer to supply
20alcoholic liquor to retailers in the State of Illinois, or who
21offer to retailers to ship or cause to be shipped or to make
22contact with distillers, rectifiers, brewers or manufacturers
23or any other party within or without the State of Illinois in
24order that alcoholic liquors be shipped to a distributor,
25importing distributor or foreign importer, whether such
26solicitation or offer is consummated within or without the

 

 

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1State of Illinois.
2    No holder of a retailer's license issued by the Illinois
3Liquor Control Commission shall purchase or receive any
4alcoholic liquor, the order for which was solicited or offered
5for sale to such retailer by a broker unless the broker is the
6holder of a valid broker's license.
7    The broker shall, upon the acceptance by a retailer of the
8broker's solicitation of an order or offer to sell or supply or
9deliver or have delivered alcoholic liquors, promptly forward
10to the Illinois Liquor Control Commission a notification of
11said transaction in such form as the Commission may by
12regulations prescribe.
13    (ii) A broker's license shall be required of a person
14within this State, other than a retail licensee, who, for a fee
15or commission, promotes, solicits, or accepts orders for
16alcoholic liquor, for use or consumption and not for resale, to
17be shipped from this State and delivered to residents outside
18of this State by an express company, common carrier, or
19contract carrier. This Section does not apply to any person who
20promotes, solicits, or accepts orders for wine as specifically
21authorized in Section 6-29 of this Act.
22    A broker's license under this subsection (l) shall not
23entitle the holder to buy or sell any alcoholic liquors for his
24own account or to take or deliver title to such alcoholic
25liquors.
26    This subsection (l) shall not apply to distributors,

 

 

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

 

 

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1importing distributor's license.
2    (n) A brew pub license shall allow the licensee to only (i)
3manufacture up to 155,000 gallons of beer per year only on the
4premises specified in the license, (ii) make sales of the beer
5manufactured on the premises or, with the approval of the
6Commission, beer manufactured on another brew pub licensed
7premises that is wholly owned and operated by the same licensee
8to importing distributors, distributors, and to non-licensees
9for use and consumption, (iii) store the beer upon the
10premises, (iv) sell and offer for sale at retail from the
11licensed premises for off-premises consumption no more than
12155,000 gallons per year so long as such sales are only made
13in-person, (v) sell and offer for sale at retail for use and
14consumption on the premises specified in the license any form
15of alcoholic liquor purchased from a licensed distributor or
16importing distributor, and (vi) with the prior approval of the
17Commission, annually transfer no more than 155,000 gallons of
18beer manufactured on the premises to a licensed brew pub wholly
19owned and operated by the same licensee.
20    A brew pub licensee shall not under any circumstance sell
21or offer for sale beer manufactured by the brew pub licensee to
22retail licensees.
23    A person who holds a class 2 brewer license may
24simultaneously hold a brew pub license if the class 2 brewer
25(i) does not, under any circumstance, sell or offer for sale
26beer manufactured by the class 2 brewer to retail licensees;

 

 

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1(ii) does not hold more than 3 brew pub licenses in this State;
2(iii) does not manufacture more than a combined 3,720,000
3gallons of beer per year, including the beer manufactured at
4the brew pub; and (iv) is not a member of or affiliated with,
5directly or indirectly, a manufacturer that produces more than
63,720,000 gallons of beer per year or any other alcoholic
7liquor.
8    Notwithstanding any other provision of this Act, a licensed
9brewer, class 2 brewer, or non-resident dealer who before July
101, 2015 manufactured less than 3,720,000 gallons of beer per
11year and held a brew pub license on or before July 1, 2015 may
12(i) continue to qualify for and hold that brew pub license for
13the licensed premises and (ii) manufacture more than 3,720,000
14gallons of beer per year and continue to qualify for and hold
15that brew pub license if that brewer, class 2 brewer, or
16non-resident dealer does not simultaneously hold a class 1
17brewer license and is not a member of or affiliated with,
18directly or indirectly, a manufacturer that produces more than
193,720,000 gallons of beer per year or that produces any other
20alcoholic liquor.
21    (o) A caterer retailer license shall allow the holder to
22serve alcoholic liquors as an incidental part of a food service
23that serves prepared meals which excludes the serving of snacks
24as the primary meal, either on or off-site whether licensed or
25unlicensed.
26    (p) An auction liquor license shall allow the licensee to

 

 

10100SB0054ham003- 22 -LRB101 04781 RPS 60467 a

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

 

 

10100SB0054ham003- 23 -LRB101 04781 RPS 60467 a

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

 

 

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1disclosed by the winery shipper's licensee, and a copy of the
2written appointment of the third-party wine provider, except
3for a common carrier, to the wine manufacturer shall be filed
4with the State Commission as a supplement to the winery
5shipper's license application or any renewal thereof. The
6winery shipper's license holder shall affirm under penalty of
7perjury, as part of the winery shipper's license application or
8renewal, that he or she only ships wine, either directly or
9indirectly through a third-party provider, from the licensee's
10own production.
11    Except for a common carrier, a third-party provider
12shipping wine on behalf of a winery shipper's license holder is
13the agent of the winery shipper's license holder and, as such,
14a winery shipper's license holder is responsible for the acts
15and omissions of the third-party provider acting on behalf of
16the license holder. A third-party provider, except for a common
17carrier, that engages in shipping wine into Illinois on behalf
18of a winery shipper's license holder shall consent to the
19jurisdiction of the State Commission and the State. Any
20third-party, except for a common carrier, holding such an
21appointment shall, by February 1 of each calendar year and upon
22request by the State Commission or the Department of Revenue,
23file with the State Commission a statement detailing each
24shipment made to an Illinois resident. The statement shall
25include the name and address of the third-party provider filing
26the statement, the time period covered by the statement, and

 

 

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1the following information:
2        (1) the name, address, and license number of the winery
3    shipper on whose behalf the shipment was made;
4        (2) the quantity of the products delivered; and
5        (3) the date and address of the shipment.
6If the Department of Revenue or the State Commission requests a
7statement under this paragraph, the third-party provider must
8provide that statement no later than 30 days after the request
9is made. Any books, records, supporting papers, and documents
10containing information and data relating to a statement under
11this paragraph shall be kept and preserved for a period of 3
12years, unless their destruction sooner is authorized, in
13writing, by the Director of Revenue, and shall be open and
14available to inspection by the Director of Revenue or the State
15Commission or any duly authorized officer, agent, or employee
16of the State Commission or the Department of Revenue, at all
17times during business hours of the day. Any person who violates
18any provision of this paragraph or any rule of the State
19Commission for the administration and enforcement of the
20provisions of this paragraph is guilty of a Class C
21misdemeanor. In case of a continuing violation, each day's
22continuance thereof shall be a separate and distinct offense.
23    The State Commission shall adopt rules as soon as
24practicable to implement the requirements of Public Act 99-904
25and shall adopt rules prohibiting any such third-party
26appointment of a third-party provider, except for a common

 

 

10100SB0054ham003- 26 -LRB101 04781 RPS 60467 a

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

 

 

10100SB0054ham003- 27 -LRB101 04781 RPS 60467 a

1must comply with the requirements of Section 6-29 of this Act.
2    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
3Section 3-12, the State Commission may receive, respond to, and
4investigate any complaint and impose any of the remedies
5specified in paragraph (1) of subsection (a) of Section 3-12.
6    As used in this subsection, "third-party provider" means
7any entity that provides fulfillment house services, including
8warehousing, packaging, distribution, order processing, or
9shipment of wine, but not the sale of wine, on behalf of a
10licensed winery shipper.
11    (s) A craft distiller tasting permit license shall allow an
12Illinois licensed craft distiller to transfer a portion of its
13alcoholic liquor inventory from its craft distiller licensed
14premises to the premises specified in the license hereby
15created and to conduct a sampling, only in the premises
16specified in the license hereby created, of the transferred
17alcoholic liquor in accordance with subsection (c) of Section
186-31 of this Act. The transferred alcoholic liquor may not be
19sold or resold in any form. An applicant for the craft
20distiller tasting permit license must also submit with the
21application proof satisfactory to the State Commission that the
22applicant will provide dram shop liability insurance to the
23maximum limits and have local authority approval.
24    A brewer warehouse permit may be issued to the holder of a
25class 1 brewer license or a class 2 brewer license. If the
26holder of the permit is a class 1 brewer licensee, the brewer

 

 

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1warehouse permit shall allow the holder to store or warehouse
2up to 930,000 gallons of tax-determined beer manufactured by
3the holder of the permit at the premises specified on the
4permit. If the holder of the permit is a class 2 brewer
5licensee, the brewer warehouse permit shall allow the holder to
6store or warehouse up to 3,720,000 gallons of tax-determined
7beer manufactured by the holder of the permit at the premises
8specified on the permit. Sales to non-licensees are prohibited
9at the premises specified in the brewer warehouse permit.
10(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
1199-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
121-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
13eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
14revised 10-2-18.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.".