Full Text of SB0297 102nd General Assembly
SB0297eng 102ND GENERAL ASSEMBLY |
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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 1-3.03, 3-12, 5-1, and 6-4 as follows:
| 6 | | (235 ILCS 5/1-3.03) (from Ch. 43, par. 95.03)
| 7 | | Sec. 1-3.03.
"Wine" means any alcoholic beverage obtained
| 8 | | by the fermentation
of the natural contents of fruits, or | 9 | | vegetables , or honey , containing sugar,
including mead and | 10 | | such beverages when fortified by the addition of alcohol or
| 11 | | spirits, as above defined.
| 12 | | (Source: P.A. 82-783.)
| 13 | | (235 ILCS 5/3-12)
| 14 | | Sec. 3-12. Powers and duties of State Commission.
| 15 | | (a) The State Commission shall have the following powers, | 16 | | functions, and
duties:
| 17 | | (1) To receive applications and to issue licenses to | 18 | | manufacturers,
foreign importers, importing distributors, | 19 | | distributors, non-resident dealers,
on premise consumption | 20 | | retailers, off premise sale retailers, special event
| 21 | | retailer licensees, special use permit licenses, auction | 22 | | liquor licenses, brew
pubs, caterer retailers, |
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| 1 | | non-beverage users, railroads, including owners and
| 2 | | lessees of sleeping, dining and cafe cars, airplanes, | 3 | | boats, brokers, and wine
maker's premises licensees in | 4 | | accordance with the provisions of this Act, and
to suspend | 5 | | or revoke such licenses upon the State Commission's | 6 | | determination,
upon notice after hearing, that a licensee | 7 | | has violated any provision of this
Act or any rule or | 8 | | regulation issued pursuant thereto and in effect for 30 | 9 | | days
prior to such violation. Except in the case of an | 10 | | action taken pursuant to a
violation of Section 6-3, 6-5, | 11 | | or 6-9, any action by the State Commission to
suspend or | 12 | | revoke a licensee's license may be limited to the license | 13 | | for the
specific premises where the violation occurred.
An | 14 | | action for a violation of this Act shall be commenced by | 15 | | the State Commission within 2 years after the date the | 16 | | State Commission becomes aware of the violation.
| 17 | | In lieu of suspending or revoking a license, the | 18 | | commission may impose
a fine, upon the State Commission's | 19 | | determination and notice after hearing,
that a licensee | 20 | | has violated any provision of this Act or any rule or
| 21 | | regulation issued pursuant thereto and in effect for 30 | 22 | | days prior to such
violation. | 23 | | For the purpose of this paragraph (1), when | 24 | | determining multiple violations for the sale of alcohol to | 25 | | a person under the age of 21, a second or subsequent | 26 | | violation for the sale of alcohol to a person under the age |
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| 1 | | of 21 shall only be considered if it was committed within 5 | 2 | | years after the date when a prior violation for the sale of | 3 | | alcohol to a person under the age of 21 was committed. | 4 | | The fine imposed under this paragraph may not exceed | 5 | | $500 for each
violation. Each day that the activity, which | 6 | | gave rise to the original fine,
continues is a separate | 7 | | violation. The maximum fine that may be levied against
any | 8 | | licensee, for the period of the license, shall not exceed | 9 | | $20,000.
The maximum penalty that may be imposed on a | 10 | | licensee for selling a bottle of
alcoholic liquor with a | 11 | | foreign object in it or serving from a bottle of
alcoholic | 12 | | liquor with a foreign object in it shall be the | 13 | | destruction of that
bottle of alcoholic liquor for the | 14 | | first 10 bottles so sold or served from by
the licensee. | 15 | | For the eleventh bottle of alcoholic liquor and for each | 16 | | third
bottle thereafter sold or served from by the | 17 | | licensee with a foreign object in
it, the maximum penalty | 18 | | that may be imposed on the licensee is the destruction
of | 19 | | the bottle of alcoholic liquor and a fine of up to $50.
| 20 | | Any notice issued by the State Commission to a | 21 | | licensee for a violation of this Act or any notice with | 22 | | respect to settlement or offer in compromise shall include | 23 | | the field report, photographs, and any other supporting | 24 | | documentation necessary to reasonably inform the licensee | 25 | | of the nature and extent of the violation or the conduct | 26 | | alleged to have occurred. The failure to include such |
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| 1 | | required documentation shall result in the dismissal of | 2 | | the action. | 3 | | (2) To adopt such rules and regulations consistent | 4 | | with the
provisions of this Act which shall be necessary | 5 | | to carry on its
functions and duties to the end that the | 6 | | health, safety and welfare of
the People of the State of | 7 | | Illinois shall be protected and temperance in
the | 8 | | consumption of alcoholic liquors shall be fostered and | 9 | | promoted and
to distribute copies of such rules and | 10 | | regulations to all licensees
affected thereby.
| 11 | | (3) To call upon other administrative departments of | 12 | | the State,
county and municipal governments, county and | 13 | | city police departments and
upon prosecuting officers for | 14 | | such information and assistance as it
deems necessary in | 15 | | the performance of its duties.
| 16 | | (4) To recommend to local commissioners rules and | 17 | | regulations, not
inconsistent with the law, for the | 18 | | distribution and sale of alcoholic
liquors throughout the | 19 | | State.
| 20 | | (5) To inspect, or cause to be inspected, any
premises | 21 | | in this State
where alcoholic liquors are manufactured, | 22 | | distributed, warehoused, or
sold. Nothing in this Act
| 23 | | authorizes an agent of the State Commission to inspect | 24 | | private
areas within the premises without reasonable | 25 | | suspicion or a warrant
during an inspection. "Private | 26 | | areas" include, but are not limited to, safes, personal |
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| 1 | | property, and closed desks.
| 2 | | (5.1) Upon receipt of a complaint or upon having | 3 | | knowledge that any person
is engaged in business as a | 4 | | manufacturer, importing distributor, distributor,
or | 5 | | retailer without a license or valid license, to conduct an | 6 | | investigation. If, after conducting an investigation, the | 7 | | State Commission is satisfied that the alleged conduct | 8 | | occurred or is occurring, it may issue a cease and desist | 9 | | notice as provided in this Act, impose civil penalties as | 10 | | provided in this Act, notify the local liquor
authority, | 11 | | or file a complaint with the State's Attorney's Office of | 12 | | the county
where the incident occurred or the Attorney | 13 | | General.
| 14 | | (5.2) Upon receipt of a complaint or upon having | 15 | | knowledge that any person is shipping alcoholic
liquor
| 16 | | into this State from a point outside of this State if the | 17 | | shipment is in
violation of this Act, to conduct an | 18 | | investigation. If, after conducting an investigation, the | 19 | | State Commission is satisfied that the alleged conduct | 20 | | occurred or is occurring, it may issue a cease and desist | 21 | | notice as provided in this Act, impose civil penalties as | 22 | | provided in this Act, notify the foreign jurisdiction, or | 23 | | file a complaint with the State's Attorney's Office of the | 24 | | county where the incident occurred or the Attorney | 25 | | General.
| 26 | | (5.3) To receive complaints from licensees, local |
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| 1 | | officials, law
enforcement agencies, organizations, and | 2 | | persons stating that any licensee has
been or is violating | 3 | | any provision of this Act or the rules and regulations
| 4 | | issued pursuant to this Act. Such complaints shall be in | 5 | | writing, signed and
sworn to by the person making the | 6 | | complaint, and shall state with specificity
the facts in | 7 | | relation to the alleged violation. If the State Commission | 8 | | has
reasonable grounds to believe that the complaint | 9 | | substantially alleges a
violation of this Act or rules and | 10 | | regulations adopted pursuant to this Act, it
shall conduct | 11 | | an investigation. If, after conducting an investigation, | 12 | | the
State Commission is satisfied that the alleged | 13 | | violation did occur, it shall proceed
with disciplinary | 14 | | action against the licensee as provided in this Act.
| 15 | | (5.4) To make arrests and issue notices of civil | 16 | | violations where necessary for the enforcement of this | 17 | | Act. | 18 | | (5.5) To investigate any and all unlicensed activity. | 19 | | (5.6) To impose civil penalties or fines to any person | 20 | | who, without holding a valid license, engages in conduct | 21 | | that requires a license pursuant to this Act, in an amount | 22 | | not to exceed $20,000 for each offense as determined by | 23 | | the State Commission. A civil penalty shall be assessed by | 24 | | the State Commission after a hearing is held in accordance | 25 | | with the provisions set forth in this Act regarding the | 26 | | provision of a hearing for the revocation or suspension of |
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| 1 | | a license. | 2 | | (6) To hear and determine appeals from orders of a | 3 | | local commission
in accordance with the provisions of this | 4 | | Act, as hereinafter set forth.
Hearings under this | 5 | | subsection shall be held in Springfield or Chicago,
at | 6 | | whichever location is the more convenient for the majority | 7 | | of persons
who are parties to the hearing.
| 8 | | (7) The State Commission shall establish uniform | 9 | | systems of accounts to be
kept by all retail licensees | 10 | | having more than 4 employees, and for this
purpose the | 11 | | State Commission may classify all retail licensees having | 12 | | more
than 4 employees and establish a uniform system of | 13 | | accounts for each
class and prescribe the manner in which | 14 | | such accounts shall be kept.
The State Commission may also | 15 | | prescribe the forms of accounts to be kept by
all retail | 16 | | licensees having more than 4 employees, including , but not
| 17 | | limited to , accounts of earnings and expenses and any | 18 | | distribution,
payment, or other distribution of earnings | 19 | | or assets, and any other
forms, records , and memoranda | 20 | | which in the judgment of the commission may
be necessary | 21 | | or appropriate to carry out any of the provisions of this
| 22 | | Act, including , but not limited to , such forms, records , | 23 | | and memoranda as
will readily and accurately disclose at | 24 | | all times the beneficial
ownership of such retail licensed | 25 | | business. The accounts, forms,
records , and memoranda | 26 | | shall be available at all reasonable times for
inspection |
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| 1 | | by authorized representatives of the State Commission or | 2 | | by
any local liquor control commissioner or his or her | 3 | | authorized representative.
The commission , may, from time | 4 | | to time, alter, amend , or repeal, in whole
or in part, any | 5 | | uniform system of accounts, or the form and manner of
| 6 | | keeping accounts.
| 7 | | (8) In the conduct of any hearing authorized to be | 8 | | held by the State Commission, to appoint, at the | 9 | | commission's discretion, hearing officers
to conduct | 10 | | hearings involving complex issues or issues that will | 11 | | require a
protracted period of time to resolve, to | 12 | | examine, or cause to be examined,
under oath, any | 13 | | licensee, and to examine or cause to be examined the books | 14 | | and
records
of such licensee; to hear testimony and take | 15 | | proof material for its
information in the discharge of its | 16 | | duties hereunder; to administer or
cause to be | 17 | | administered oaths; for any such purpose to issue
subpoena | 18 | | or subpoenas to require the attendance of witnesses and | 19 | | the
production of books, which shall be effective in any | 20 | | part of this State, and
to adopt rules to implement its | 21 | | powers under this paragraph (8).
| 22 | | Any circuit court may , by order duly entered,
require | 23 | | the attendance of witnesses and the production of relevant | 24 | | books
subpoenaed by the State Commission and the court may | 25 | | compel
obedience to its order by proceedings for contempt.
| 26 | | (9) To investigate the administration of laws in |
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| 1 | | relation to
alcoholic liquors in this and other states and | 2 | | any foreign countries,
and to recommend from time to time | 3 | | to the Governor and through him or
her to the legislature | 4 | | of this State, such amendments to this Act, if any, as
it | 5 | | may think desirable and as will serve to further the | 6 | | general broad
purposes contained in Section 1-2 hereof.
| 7 | | (10) To adopt such rules and regulations consistent | 8 | | with the
provisions of this Act which shall be necessary | 9 | | for the control, sale , or
disposition of alcoholic liquor | 10 | | damaged as a result of an accident, wreck,
flood, fire , or | 11 | | other similar occurrence.
| 12 | | (11) To develop industry educational programs related | 13 | | to responsible
serving and selling, particularly in the | 14 | | areas of overserving consumers and
illegal underage | 15 | | purchasing and consumption of alcoholic beverages.
| 16 | | (11.1) To license persons providing education and | 17 | | training to alcohol
beverage sellers and servers for | 18 | | mandatory and non-mandatory training under the
Beverage | 19 | | Alcohol Sellers and Servers
Education and Training | 20 | | (BASSET) programs and to develop and administer a public
| 21 | | awareness program in Illinois to reduce or eliminate the | 22 | | illegal purchase and
consumption of alcoholic beverage | 23 | | products by persons under the age of 21.
Application for a | 24 | | license shall be made on forms provided by the State
| 25 | | Commission.
| 26 | | (12) To develop and maintain a repository of license |
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| 1 | | and regulatory
information.
| 2 | | (13) (Blank).
| 3 | | (14) On or before April 30, 2008 and every 2 years
| 4 | | thereafter, the State Commission shall present a written
| 5 | | report to the Governor and the General Assembly that shall
| 6 | | be based on a study of the impact of Public Act 95-634 on | 7 | | the business of soliciting,
selling, and shipping wine | 8 | | from inside and outside of this
State directly to | 9 | | residents of this State. As part of its
report, the State | 10 | | Commission shall provide all of the
following information: | 11 | | (A) The amount of State excise and sales tax
| 12 | | revenues generated. | 13 | | (B) The amount of licensing fees received. | 14 | | (C) The number of cases of wine shipped from | 15 | | inside
and outside of this State directly to residents | 16 | | of this
State. | 17 | | (D) The number of alcohol compliance operations
| 18 | | conducted. | 19 | | (E) The number of winery shipper's licenses
| 20 | | issued. | 21 | | (F) The number of each of the following: reported
| 22 | | violations; cease and desist notices issued by the
| 23 | | Commission; notices of violations issued by
the | 24 | | Commission and to the Department of Revenue;
and | 25 | | notices and complaints of violations to law
| 26 | | enforcement officials, including, without limitation,
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| 1 | | the Illinois Attorney General and the U.S. Department
| 2 | | of Treasury's Alcohol and Tobacco Tax and Trade | 3 | | Bureau. | 4 | | (15) As a means to reduce the underage consumption of
| 5 | | alcoholic liquors, the State Commission shall conduct
| 6 | | alcohol compliance operations to investigate whether
| 7 | | businesses that are soliciting, selling, and shipping wine
| 8 | | from inside or outside of this State directly to residents
| 9 | | of this State are licensed by this State or are selling or
| 10 | | attempting to sell wine to persons under 21 years of age in
| 11 | | violation of this Act. | 12 | | (16) The State Commission shall, in addition to
| 13 | | notifying any appropriate law enforcement agency, submit
| 14 | | notices of complaints or violations of Sections 6-29 and
| 15 | | 6-29.1 by persons who do not hold a winery shipper's
| 16 | | license under this Act to the Illinois Attorney General | 17 | | and
to the U.S. Department of Treasury's Alcohol and | 18 | | Tobacco Tax and Trade Bureau. | 19 | | (17)(A) A person licensed to make wine under the laws | 20 | | of another state who has a winery shipper's license under | 21 | | this Act and annually produces less than 25,000 gallons of | 22 | | wine or a person who has a first-class or second-class | 23 | | wine manufacturer's license, a first-class or second-class | 24 | | wine-maker's license, or a limited wine manufacturer's | 25 | | license under this Act and annually produces less than | 26 | | 25,000 gallons of wine may make application to the |
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| 1 | | Commission for a self-distribution exemption to allow the | 2 | | sale of not more than 5,000 gallons of the exemption | 3 | | holder's wine to retail licensees per year and to sell | 4 | | cider, mead, or both cider and mead to brewers, class 1 | 5 | | brewers, and class 2 brewers that pursuant to subsection | 6 | | (e) of Section 6-4 of this Act sell beer, cider, mead, or | 7 | | any combination thereof to non-licensees at their | 8 | | breweries . | 9 | | (B) In the application, which shall be sworn under | 10 | | penalty of perjury, such person shall state (1) the date | 11 | | it was established; (2) its volume of production and sales | 12 | | for each year since its establishment; (3) its efforts to | 13 | | establish distributor relationships; (4) that a | 14 | | self-distribution exemption is necessary to facilitate the | 15 | | marketing of its wine; and (5) that it will comply with the | 16 | | liquor and revenue laws of the United States, this State, | 17 | | and any other state where it is licensed. | 18 | | (C) The State Commission shall approve the application | 19 | | for a self-distribution exemption if such person: (1) is | 20 | | in compliance with State revenue and liquor laws; (2) is | 21 | | not a member of any affiliated group that produces more | 22 | | than 25,000 gallons of wine per annum or produces any | 23 | | other alcoholic liquor; (3) will not annually produce for | 24 | | sale more than 25,000 gallons of wine; and (4) will not | 25 | | annually sell more than 5,000 gallons of its wine to | 26 | | retail licensees. |
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| 1 | | (D) A self-distribution exemption holder shall | 2 | | annually certify to the State Commission its production of | 3 | | wine in the previous 12 months and its anticipated | 4 | | production and sales for the next 12 months. The State | 5 | | Commission may fine, suspend, or revoke a | 6 | | self-distribution exemption after a hearing if it finds | 7 | | that the exemption holder has made a material | 8 | | misrepresentation in its application, violated a revenue | 9 | | or liquor law of Illinois, exceeded production of 25,000 | 10 | | gallons of wine in any calendar year, or become part of an | 11 | | affiliated group producing more than 25,000 gallons of | 12 | | wine or any other alcoholic liquor. | 13 | | (E) Except in hearings for violations of this Act or | 14 | | Public Act 95-634 or a bona fide investigation by duly | 15 | | sworn law enforcement officials, the State Commission, or | 16 | | its agents, the State Commission shall maintain the | 17 | | production and sales information of a self-distribution | 18 | | exemption holder as confidential and shall not release | 19 | | such information to any person. | 20 | | (F) The State Commission shall issue regulations | 21 | | governing self-distribution exemptions consistent with | 22 | | this Section and this Act. | 23 | | (G) Nothing in this paragraph (17) shall prohibit a | 24 | | self-distribution exemption holder from entering into or | 25 | | simultaneously having a distribution agreement with a | 26 | | licensed Illinois distributor. |
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| 1 | | (H) It is the intent of this paragraph (17) to promote | 2 | | and continue orderly markets. The General Assembly finds | 3 | | that , in order to preserve Illinois' regulatory | 4 | | distribution system , it is necessary to create an | 5 | | exception for smaller makers of wine as their wines are | 6 | | frequently adjusted in varietals, mixes, vintages, and | 7 | | taste to find and create market niches sometimes too small | 8 | | for distributor or importing distributor business | 9 | | strategies. Limited self-distribution rights will afford | 10 | | and allow smaller makers of wine access to the marketplace | 11 | | in order to develop a customer base without impairing the | 12 | | integrity of the 3-tier system.
| 13 | | (18)(A) A class 1 brewer licensee, who must also be | 14 | | either a licensed brewer or licensed non-resident dealer | 15 | | and annually manufacture less than 930,000 gallons of | 16 | | beer, may make application to the State Commission for a | 17 | | self-distribution exemption to allow the sale of not more | 18 | | than 232,500 gallons per year of the exemption holder's | 19 | | beer per year to retail licensees and to brewers, class 1 | 20 | | brewers, and class 2 brewers that, pursuant to subsection | 21 | | (e) of Section 6-4 of this Act, sell beer, cider, mead, or | 22 | | any combination thereof or both beer and cider to | 23 | | non-licensees at their breweries. | 24 | | (B) In the application, which shall be sworn under | 25 | | penalty of perjury, the class 1 brewer licensee shall | 26 | | state (1) the date it was established; (2) its volume of |
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| 1 | | beer manufactured and sold for each year since its | 2 | | establishment; (3) its efforts to establish distributor | 3 | | relationships; (4) that a self-distribution exemption is | 4 | | necessary to facilitate the marketing of its beer; and (5) | 5 | | that it will comply with the alcoholic beverage and | 6 | | revenue laws of the United States, this State, and any | 7 | | other state where it is licensed. | 8 | | (C) Any application submitted shall be posted on the | 9 | | State Commission's website at least 45 days prior to | 10 | | action by the State Commission. The State Commission shall | 11 | | approve the application for a self-distribution exemption | 12 | | if the class 1 brewer licensee: (1) is in compliance with | 13 | | the State, revenue, and alcoholic beverage laws; (2) is | 14 | | not a member of any affiliated group that manufactures | 15 | | more than 930,000 gallons of beer per annum or produces | 16 | | any other alcoholic beverages; (3) shall not annually | 17 | | manufacture for sale more than 930,000 gallons of beer; | 18 | | (4) shall not annually sell more than 232,500 gallons of | 19 | | its beer to retail licensees or to brewers, class 1 | 20 | | brewers, and class 2 brewers that, pursuant to subsection | 21 | | (e) of Section 6-4 of this Act, sell beer, cider, mead, or | 22 | | any combination thereof or both beer and cider to | 23 | | non-licensees at their breweries; and (5) has relinquished | 24 | | any brew pub license held by the licensee, including any | 25 | | ownership interest it held in the licensed brew pub. | 26 | | (D) A self-distribution exemption holder shall |
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| 1 | | annually certify to the State Commission its manufacture | 2 | | of beer during the previous 12 months and its anticipated | 3 | | manufacture and sales of beer for the next 12 months. The | 4 | | State Commission may fine, suspend, or revoke a | 5 | | self-distribution exemption after a hearing if it finds | 6 | | that the exemption holder has made a material | 7 | | misrepresentation in its application, violated a revenue | 8 | | or alcoholic beverage law of Illinois, exceeded the | 9 | | manufacture of 930,000 gallons of beer in any calendar | 10 | | year or became part of an affiliated group manufacturing | 11 | | more than 930,000 gallons of beer or any other alcoholic | 12 | | beverage. | 13 | | (E) The State Commission shall issue rules and | 14 | | regulations governing self-distribution exemptions | 15 | | consistent with this Act. | 16 | | (F) Nothing in this paragraph (18) shall prohibit a | 17 | | self-distribution exemption holder from entering into or | 18 | | simultaneously having a distribution agreement with a | 19 | | licensed Illinois importing distributor or a distributor. | 20 | | If a self-distribution exemption holder enters into a | 21 | | distribution agreement and has assigned distribution | 22 | | rights to an importing distributor or distributor, then | 23 | | the self-distribution exemption holder's distribution | 24 | | rights in the assigned territories shall cease in a | 25 | | reasonable time not to exceed 60 days. | 26 | | (G) It is the intent of this paragraph (18) to promote |
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| 1 | | and continue orderly markets. The General Assembly finds | 2 | | that in order to preserve Illinois' regulatory | 3 | | distribution system, it is necessary to create an | 4 | | exception for smaller manufacturers in order to afford and | 5 | | allow such smaller manufacturers of beer access to the | 6 | | marketplace in order to develop a customer base without | 7 | | impairing the integrity of the 3-tier system. | 8 | | (19)(A) A class 1 craft distiller licensee or a | 9 | | non-resident dealer who manufactures less than 50,000 | 10 | | gallons of distilled spirits per year may make application | 11 | | to the State Commission for a self-distribution exemption | 12 | | to allow the sale of not more
than 5,000 gallons of the | 13 | | exemption holder's spirits to retail licensees per year. | 14 | | (B) In the application, which shall be sworn under | 15 | | penalty of perjury, the class 1 craft distiller licensee | 16 | | or non-resident dealer shall state (1) the date it was | 17 | | established; (2) its volume of spirits manufactured and | 18 | | sold for each year since its establishment; (3) its | 19 | | efforts to establish distributor relationships; (4) that a | 20 | | self-distribution exemption is necessary to facilitate the | 21 | | marketing of its spirits; and (5) that it will comply with | 22 | | the alcoholic beverage and revenue laws of the United | 23 | | States, this State, and any other state where it is | 24 | | licensed. | 25 | | (C) Any application submitted shall be posted on the | 26 | | State Commission's website at least 45 days prior to |
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| 1 | | action by the State Commission. The State Commission shall | 2 | | approve the application for a self-distribution exemption | 3 | | if the applicant: (1) is in compliance with State revenue | 4 | | and alcoholic beverage laws; (2) is not a member of any | 5 | | affiliated group that produces more than 50,000 gallons of | 6 | | spirits per annum or produces any other alcoholic liquor; | 7 | | (3) does not annually manufacture for sale more than | 8 | | 50,000 gallons of spirits; and (4) does not annually sell | 9 | | more than 5,000 gallons of its spirits to retail | 10 | | licensees. | 11 | | (D) A self-distribution exemption holder shall | 12 | | annually certify to the State Commission its manufacture | 13 | | of spirits during the previous 12 months and its | 14 | | anticipated manufacture and sales of spirits for the next | 15 | | 12 months. The State Commission may fine, suspend, or | 16 | | revoke a self-distribution exemption after a hearing if it | 17 | | finds that the exemption holder has made a material | 18 | | misrepresentation in its application, violated a revenue | 19 | | or alcoholic beverage law of Illinois, exceeded the | 20 | | manufacture of 50,000 gallons of spirits in any calendar | 21 | | year, or has become part of an affiliated group | 22 | | manufacturing more than 50,000 gallons of spirits or any | 23 | | other alcoholic beverage. | 24 | | (E) The State Commission shall adopt rules governing | 25 | | self-distribution exemptions consistent with this Act. | 26 | | (F) Nothing in this paragraph (19) shall prohibit a |
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| 1 | | self-distribution exemption holder from entering into or | 2 | | simultaneously having a distribution agreement with a | 3 | | licensed Illinois importing distributor or a distributor. | 4 | | (G) It is the intent of this paragraph (19) to promote | 5 | | and continue orderly markets. The General Assembly finds | 6 | | that in order to preserve Illinois' regulatory | 7 | | distribution system, it is necessary to create an | 8 | | exception for smaller manufacturers in order to afford and | 9 | | allow such smaller manufacturers of spirits access to the | 10 | | marketplace in order to develop a customer base without | 11 | | impairing the
integrity of the 3-tier system. | 12 | | (b) On or before April 30, 1999, the Commission shall | 13 | | present a written
report to the Governor and the General | 14 | | Assembly that shall be based on a study
of the impact of Public | 15 | | Act 90-739 on the business of soliciting,
selling, and | 16 | | shipping
alcoholic liquor from outside of this State directly | 17 | | to residents of this
State.
| 18 | | As part of its report, the Commission shall provide the | 19 | | following
information:
| 20 | | (i) the amount of State excise and sales tax revenues | 21 | | generated as a
result of Public Act 90-739;
| 22 | | (ii) the amount of licensing fees received as a result | 23 | | of Public Act 90-739;
| 24 | | (iii) the number of reported violations, the number of | 25 | | cease and desist
notices issued by the Commission, the | 26 | | number of notices of violations issued
to the Department |
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| 1 | | of Revenue, and the number of notices and complaints of
| 2 | | violations to law enforcement officials.
| 3 | | (Source: P.A. 100-134, eff. 8-18-17; 100-201, eff. 8-18-17; | 4 | | 100-816, eff. 8-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. | 5 | | 8-23-18; 101-37, eff. 7-3-19; 101-81, eff. 7-12-19; 101-482, | 6 | | eff. 8-23-19; revised 9-20-19.) | 7 | | (235 ILCS 5/5-1) (from Ch. 43, par. 115) | 8 | | Sec. 5-1. Licenses issued by the Illinois Liquor Control | 9 | | Commission
shall be of the following classes: | 10 | | (a) Manufacturer's license - Class 1.
Distiller, Class 2. | 11 | | Rectifier, Class 3. Brewer, Class 4. First Class Wine
| 12 | | Manufacturer, Class 5. Second Class Wine Manufacturer, Class | 13 | | 6. First Class Winemaker, Class 7. Second Class Winemaker, | 14 | | Class 8.
Limited Wine Manufacturer, Class 9. Craft Distiller, | 15 | | Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft | 16 | | Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer, | 17 | | (b) Distributor's license, | 18 | | (c) Importing Distributor's license, | 19 | | (d) Retailer's license, | 20 | | (e) Special Event Retailer's license (not-for-profit), | 21 | | (f) Railroad license, | 22 | | (g) Boat license, | 23 | | (h) Non-Beverage User's license, | 24 | | (i) Wine-maker's premises license, | 25 | | (j) Airplane license, |
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| 1 | | (k) Foreign importer's license, | 2 | | (l) Broker's license, | 3 | | (m) Non-resident dealer's
license, | 4 | | (n) Brew Pub license, | 5 | | (o) Auction liquor license, | 6 | | (p) Caterer retailer license, | 7 | | (q) Special use permit license, | 8 | | (r) Winery shipper's license, | 9 | | (s) Craft distiller tasting permit, | 10 | | (t) Brewer warehouse permit, | 11 | | (u) Distilling pub license, | 12 | | (v) Craft distiller warehouse permit. | 13 | | No
person, firm, partnership, corporation, or other legal | 14 | | business entity that is
engaged in the manufacturing of wine | 15 | | may concurrently obtain and hold a
wine-maker's license and a | 16 | | wine manufacturer's license. | 17 | | (a) A manufacturer's license shall allow the manufacture,
| 18 | | importation in bulk, storage, distribution and sale of | 19 | | alcoholic liquor
to persons without the State, as may be | 20 | | permitted by law and to licensees
in this State as follows: | 21 | | Class 1. A Distiller may make sales and deliveries of | 22 | | alcoholic liquor to
distillers, rectifiers, importing | 23 | | distributors, distributors and
non-beverage users and to no | 24 | | other licensees. | 25 | | Class 2. A Rectifier, who is not a distiller, as defined | 26 | | herein, may make
sales and deliveries of alcoholic liquor to |
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| 1 | | rectifiers, importing distributors,
distributors, retailers | 2 | | and non-beverage users and to no other licensees. | 3 | | Class 3. A Brewer may make sales and deliveries of beer to | 4 | | importing
distributors and distributors and may make sales as | 5 | | authorized under subsection (e) of Section 6-4 of this Act. | 6 | | Class 4. A first class wine-manufacturer may make sales | 7 | | and deliveries of
up to 50,000 gallons of wine to | 8 | | manufacturers,
importing
distributors and distributors, and to | 9 | | no other licensees. | 10 | | Class 5. A second class Wine manufacturer may make sales | 11 | | and deliveries
of more than 50,000 gallons of wine to | 12 | | manufacturers, importing distributors
and distributors and to | 13 | | no other licensees. | 14 | | Class 6. A first-class wine-maker's license shall allow | 15 | | the manufacture
of up to 50,000 gallons of wine per year, and | 16 | | the
storage
and sale of such
wine to distributors in the State | 17 | | and to persons without the
State, as may be permitted by law. A | 18 | | person who, prior to June 1, 2008 (the effective date of Public | 19 | | Act 95-634), is a holder of a first-class wine-maker's license | 20 | | and annually produces more than 25,000 gallons of its own wine | 21 | | and who distributes its wine to licensed retailers shall cease | 22 | | this practice on or before July 1, 2008 in compliance with | 23 | | Public Act 95-634. | 24 | | Class 7. A second-class wine-maker's license shall allow | 25 | | the manufacture
of between 50,000 and 150,000 gallons of wine | 26 | | per year, and
the
storage and sale of such wine
to distributors |
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| 1 | | in this State and to persons without the State, as may be
| 2 | | permitted by law. A person who, prior to June 1, 2008 (the | 3 | | effective date of Public Act 95-634), is a holder of a | 4 | | second-class wine-maker's license and annually produces more | 5 | | than 25,000 gallons of its own wine and who distributes its | 6 | | wine to licensed retailers shall cease this practice on or | 7 | | before July 1, 2008 in compliance with Public Act 95-634. | 8 | | Class 8. A limited wine-manufacturer may make sales and | 9 | | deliveries not to
exceed 40,000 gallons of wine per year to | 10 | | distributors, and to
non-licensees in accordance with the | 11 | | provisions of this Act. | 12 | | Class 9. A craft distiller license, which may only be held | 13 | | by a class 1 craft distiller licensee or class 2 craft | 14 | | distiller licensee but not held by both a class 1 craft | 15 | | distiller licensee and a class 2 craft distiller licensee, | 16 | | shall grant all rights conveyed by either: (i) a class 1 craft | 17 | | distiller license if the craft distiller holds a class 1 craft | 18 | | distiller license; or (ii) a class 2 craft distiller licensee | 19 | | if the craft distiller holds a class 2 craft distiller | 20 | | license. | 21 | | Class 10. A class 1 craft distiller license, which may | 22 | | only be issued to a licensed craft distiller or licensed | 23 | | non-resident dealer, shall allow the manufacture of up to | 24 | | 50,000 gallons of spirits per year provided that the class 1 | 25 | | craft distiller licensee does not manufacture more than a | 26 | | combined 50,000 gallons of spirits per year and is not a member |
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| 1 | | of or affiliated with, directly or indirectly, a manufacturer | 2 | | that produces more than 50,000 gallons of spirits per year or | 3 | | any other alcoholic liquor. A class 1 craft distiller licensee | 4 | | may make sales and deliveries to importing distributors and | 5 | | distributors and to retail licensees in accordance with the | 6 | | conditions set forth in paragraph (19) of subsection (a) of | 7 | | Section 3-12 of this Act. However, the aggregate amount of | 8 | | spirits sold to non-licensees and sold or delivered to retail | 9 | | licensees may not exceed 5,000 gallons per year. | 10 | | A class 1 craft distiller licensee may sell up to 5,000 | 11 | | gallons of such spirits to non-licensees to the extent | 12 | | permitted by any exemption approved by the State Commission | 13 | | pursuant to Section 6-4 of this Act. A class 1 craft distiller | 14 | | license holder may store such spirits at a non-contiguous | 15 | | licensed location, but at no time shall a class 1 craft | 16 | | distiller license holder directly or indirectly produce in the | 17 | | aggregate more than 50,000 gallons of spirits per year. | 18 | | A class 1 craft distiller licensee may hold more than one | 19 | | class 1 craft distiller's license. However, a class 1 craft | 20 | | distiller that holds more than one class 1 craft distiller | 21 | | license shall not manufacture, in the aggregate, more than | 22 | | 50,000 gallons of spirits by distillation per year and shall | 23 | | not sell, in the aggregate, more than 5,000 gallons of such | 24 | | spirits to non-licensees in accordance with an exemption | 25 | | approved by the State Commission pursuant to Section 6-4 of | 26 | | this Act. |
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| 1 | | Class 11. A class 2 craft distiller license, which may | 2 | | only be issued to a licensed craft distiller or licensed | 3 | | non-resident dealer, shall allow the manufacture of up to | 4 | | 100,000 gallons of spirits per year provided that the class 2 | 5 | | craft distiller licensee does not manufacture more than a | 6 | | combined 100,000 gallons of spirits per year and is not a | 7 | | member of or affiliated with, directly or indirectly, a | 8 | | manufacturer that produces more than 100,000 gallons of | 9 | | spirits per year or any other alcoholic liquor. A class 2 craft | 10 | | distiller licensee may make sales and deliveries to importing | 11 | | distributors and distributors, but shall not make sales or | 12 | | deliveries to any other licensee. If the State Commission | 13 | | provides prior approval, a class 2 craft distiller licensee | 14 | | may annually transfer up to 100,000 gallons of spirits | 15 | | manufactured by that class 2 craft distiller licensee to the | 16 | | premises of a licensed class 2 craft distiller wholly owned | 17 | | and operated by the same licensee. A class 2 craft distiller | 18 | | may transfer spirits to a distilling pub wholly owned and | 19 | | operated by the class 2 craft distiller subject to the | 20 | | following limitations and restrictions: (i) the transfer shall | 21 | | not annually exceed more than 5,000 gallons; (ii) the annual | 22 | | amount transferred shall reduce the distilling pub's annual | 23 | | permitted production limit; (iii) all spirits transferred | 24 | | shall be subject to Article VIII of this Act; (iv) a written | 25 | | record shall be maintained by the distiller and distilling pub | 26 | | specifying the amount, date of delivery, and receipt of the |
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| 1 | | product by the distilling pub; and (v) the distilling pub | 2 | | shall be located no farther than 80 miles from the class 2 | 3 | | craft distiller's licensed location. | 4 | | A class 2 craft distiller shall, prior to transferring | 5 | | spirits to a distilling pub wholly owned by the class 2 craft | 6 | | distiller, furnish a written notice to the State Commission of | 7 | | intent to transfer spirits setting forth the name and address | 8 | | of the distilling pub and shall annually submit to the State | 9 | | Commission a verified report identifying the total gallons of | 10 | | spirits transferred to the distilling pub wholly owned by the | 11 | | class 2 craft distiller. | 12 | | A class 2 craft distiller license holder may store such | 13 | | spirits at a non-contiguous licensed location, but at no time | 14 | | shall a class 2 craft distiller license holder directly or | 15 | | indirectly produce in the aggregate more than 100,000 gallons | 16 | | of spirits per year. | 17 | | Class 12. A class 1 brewer license, which may only be | 18 | | issued to a licensed brewer or licensed non-resident dealer, | 19 | | shall allow the manufacture of up to 930,000 gallons of beer | 20 | | per year provided that the class 1 brewer licensee does not | 21 | | manufacture more than a combined 930,000 gallons of beer per | 22 | | year and is not a member of or affiliated with, directly or | 23 | | indirectly, a manufacturer that produces more than 930,000 | 24 | | gallons of beer per year or any other alcoholic liquor. A class | 25 | | 1 brewer licensee may make sales and deliveries to importing | 26 | | distributors and distributors and to retail licensees in |
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| 1 | | accordance with the conditions set forth in paragraph (18) of | 2 | | subsection (a) of Section 3-12 of this Act. If the State | 3 | | Commission provides prior approval, a class 1 brewer may | 4 | | annually transfer up to 930,000 gallons of beer manufactured | 5 | | by that class 1 brewer to the premises of a licensed class 1 | 6 | | brewer wholly owned and operated by the same licensee. | 7 | | Class 13. A class 2 brewer license, which may only be | 8 | | issued to a licensed brewer or licensed non-resident dealer, | 9 | | shall allow the manufacture of up to 3,720,000 gallons of beer | 10 | | per year provided that the class 2 brewer licensee does not | 11 | | manufacture more than a combined 3,720,000 gallons of beer per | 12 | | year and is not a member of or affiliated with, directly or | 13 | | indirectly, a manufacturer that produces more than 3,720,000 | 14 | | gallons of beer per year or any other alcoholic liquor. A class | 15 | | 2 brewer licensee may make sales and deliveries to importing | 16 | | distributors and distributors, but shall not make sales or | 17 | | deliveries to any other licensee. If the State Commission | 18 | | provides prior approval, a class 2 brewer licensee may | 19 | | annually transfer up to 3,720,000 gallons of beer manufactured | 20 | | by that class 2 brewer licensee to the premises of a licensed | 21 | | class 2 brewer wholly owned and operated by the same licensee. | 22 | | A class 2 brewer may transfer beer to a brew pub wholly | 23 | | owned and operated by the class 2 brewer subject to the | 24 | | following limitations and restrictions: (i) the transfer shall | 25 | | not annually exceed more than 31,000 gallons; (ii) the annual | 26 | | amount transferred shall reduce the brew pub's annual |
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| 1 | | permitted production limit; (iii) all beer transferred shall | 2 | | be subject to Article VIII of this Act; (iv) a written record | 3 | | shall be maintained by the brewer and brew pub specifying the | 4 | | amount, date of delivery, and receipt of the product by the | 5 | | brew pub; and (v) the brew pub shall be located no farther than | 6 | | 80 miles from the class 2 brewer's licensed location. | 7 | | A class 2 brewer shall, prior to transferring beer to a | 8 | | brew pub wholly owned by the class 2 brewer, furnish a written | 9 | | notice to the State Commission of intent to transfer beer | 10 | | setting forth the name and address of the brew pub and shall | 11 | | annually submit to the State Commission a verified report | 12 | | identifying the total gallons of beer transferred to the brew | 13 | | pub wholly owned by the class 2 brewer. | 14 | | (a-1) A manufacturer which is licensed in this State to | 15 | | make sales or
deliveries of alcoholic liquor to licensed | 16 | | distributors or importing distributors and which enlists | 17 | | agents, representatives, or
individuals acting on its behalf | 18 | | who contact licensed retailers on a regular
and continual | 19 | | basis in this State must register those agents, | 20 | | representatives,
or persons acting on its behalf with the | 21 | | State Commission. | 22 | | Registration of agents, representatives, or persons acting | 23 | | on behalf of a
manufacturer is fulfilled by submitting a form | 24 | | to the Commission. The form
shall be developed by the | 25 | | Commission and shall include the name and address of
the | 26 | | applicant, the name and address of the manufacturer he or she |
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| 1 | | represents,
the territory or areas assigned to sell to or | 2 | | discuss pricing terms of
alcoholic liquor, and any other | 3 | | questions deemed appropriate and necessary.
All statements in | 4 | | the forms required to be made by law or by rule shall be
deemed | 5 | | material, and any person who knowingly misstates any material | 6 | | fact under
oath in an application is guilty of a Class B | 7 | | misdemeanor. Fraud,
misrepresentation, false statements, | 8 | | misleading statements, evasions, or
suppression of material | 9 | | facts in the securing of a registration are grounds for
| 10 | | suspension or revocation of the registration. The State | 11 | | Commission shall post a list of registered agents on the | 12 | | Commission's website. | 13 | | (b) A distributor's license shall allow (i) the wholesale | 14 | | purchase and storage
of alcoholic liquors and sale of | 15 | | alcoholic liquors to licensees in this State and to persons | 16 | | without the State, as may be permitted by law; (ii) the sale of | 17 | | beer, cider, mead, or any combination thereof or both beer and | 18 | | cider to brewers, class 1 brewers, and class 2 brewers that, | 19 | | pursuant to subsection (e) of Section 6-4 of this Act, sell | 20 | | beer, cider, mead, or any combination thereof or both beer and | 21 | | cider to non-licensees at their breweries; and (iii) the sale | 22 | | of vermouth to class 1 craft distillers and class 2 craft | 23 | | distillers that, pursuant to subsection (e) of Section 6-4 of | 24 | | this Act, sell spirits, vermouth, or both spirits and vermouth | 25 | | to non-licensees at their distilleries. No person licensed as | 26 | | a distributor shall be granted a non-resident dealer's |
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| 1 | | license. | 2 | | (c) An importing distributor's license may be issued to | 3 | | and held by
those only who are duly licensed distributors, | 4 | | upon the filing of an
application by a duly licensed | 5 | | distributor, with the Commission and
the Commission shall, | 6 | | without the
payment of any fee, immediately issue such | 7 | | importing distributor's
license to the applicant, which shall | 8 | | allow the importation of alcoholic
liquor by the licensee into | 9 | | this State from any point in the United
States outside this | 10 | | State, and the purchase of alcoholic liquor in
barrels, casks | 11 | | or other bulk containers and the bottling of such
alcoholic | 12 | | liquors before resale thereof, but all bottles or containers
| 13 | | so filled shall be sealed, labeled, stamped and otherwise made | 14 | | to comply
with all provisions, rules and regulations governing | 15 | | manufacturers in
the preparation and bottling of alcoholic | 16 | | liquors. The importing
distributor's license shall permit such | 17 | | licensee to purchase alcoholic
liquor from Illinois licensed | 18 | | non-resident dealers and foreign importers only. No person | 19 | | licensed as an importing distributor shall be granted a | 20 | | non-resident dealer's license. | 21 | | (d) A retailer's license shall allow the licensee to sell | 22 | | and offer
for sale at retail, only in the premises specified in | 23 | | the license,
alcoholic liquor for use or consumption, but not | 24 | | for resale in any form. Nothing in Public Act 95-634 shall | 25 | | deny, limit, remove, or restrict the ability of a holder of a | 26 | | retailer's license to transfer, deliver, or ship alcoholic |
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| 1 | | liquor to the purchaser for use or consumption subject to any | 2 | | applicable local law or ordinance. Any retail license issued | 3 | | to a manufacturer shall only
permit the manufacturer to sell | 4 | | beer at retail on the premises actually
occupied by the | 5 | | manufacturer. For the purpose of further describing the type | 6 | | of business conducted at a retail licensed premises, a | 7 | | retailer's licensee may be designated by the State Commission | 8 | | as (i) an on premise consumption retailer, (ii) an off premise | 9 | | sale retailer, or (iii) a combined on premise consumption and | 10 | | off premise sale retailer.
| 11 | | Notwithstanding any other provision of this subsection | 12 | | (d), a retail
licensee may sell alcoholic liquors to a special | 13 | | event retailer licensee for
resale to the extent permitted | 14 | | under subsection (e). | 15 | | (e) A special event retailer's license (not-for-profit) | 16 | | shall permit the
licensee to purchase alcoholic liquors from | 17 | | an Illinois licensed distributor
(unless the licensee | 18 | | purchases less than $500 of alcoholic liquors for the
special | 19 | | event, in which case the licensee may purchase the alcoholic | 20 | | liquors
from a licensed retailer) and shall allow the licensee | 21 | | to sell and offer for
sale, at retail, alcoholic liquors for | 22 | | use or consumption, but not for resale
in any form and only at | 23 | | the location and on the specific dates designated for
the | 24 | | special event in the license. An applicant for a special event | 25 | | retailer
license must
(i) furnish with the application: (A) a | 26 | | resale number issued under Section
2c of the Retailers' |
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| 1 | | Occupation Tax Act or evidence that the applicant is
| 2 | | registered under Section 2a of the Retailers' Occupation Tax | 3 | | Act, (B) a
current, valid exemption identification
number | 4 | | issued under Section 1g of the Retailers' Occupation Tax Act, | 5 | | and a
certification to the Commission that the purchase of | 6 | | alcoholic liquors will be
a tax-exempt purchase, or (C) a | 7 | | statement that the applicant is not registered
under Section | 8 | | 2a of the Retailers' Occupation Tax Act, does not hold a resale
| 9 | | number under Section 2c of the Retailers' Occupation Tax Act, | 10 | | and does not
hold an exemption number under Section 1g of the | 11 | | Retailers' Occupation Tax
Act, in which event the Commission | 12 | | shall set forth on the special event
retailer's license a | 13 | | statement to that effect; (ii) submit with the application | 14 | | proof satisfactory to
the State Commission that the applicant | 15 | | will provide dram shop liability
insurance in the maximum | 16 | | limits; and (iii) show proof satisfactory to the
State | 17 | | Commission that the applicant has obtained local authority
| 18 | | approval. | 19 | | Nothing in this Act prohibits an Illinois licensed | 20 | | distributor from offering credit or a refund for unused, | 21 | | salable alcoholic liquors to a holder of a special event | 22 | | retailer's license or the special event retailer's licensee | 23 | | from accepting the credit or refund of alcoholic liquors at | 24 | | the conclusion of the event specified in the license. | 25 | | (f) A railroad license shall permit the licensee to import | 26 | | alcoholic
liquors into this State from any point in the United |
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| 1 | | States outside this
State and to store such alcoholic liquors | 2 | | in this State; to make wholesale
purchases of alcoholic | 3 | | liquors directly from manufacturers, foreign
importers, | 4 | | distributors and importing distributors from within or outside
| 5 | | this State; and to store such alcoholic liquors in this State; | 6 | | provided
that the above powers may be exercised only in | 7 | | connection with the
importation, purchase or storage of | 8 | | alcoholic liquors to be sold or
dispensed on a club, buffet, | 9 | | lounge or dining car operated on an electric,
gas or steam | 10 | | railway in this State; and provided further, that railroad
| 11 | | licensees exercising the above powers shall be subject to all | 12 | | provisions of
Article VIII of this Act as applied to importing | 13 | | distributors. A railroad
license shall also permit the | 14 | | licensee to sell or dispense alcoholic
liquors on any club, | 15 | | buffet, lounge or dining car operated on an electric,
gas or | 16 | | steam railway regularly operated by a common carrier in this | 17 | | State,
but shall not permit the sale for resale of any | 18 | | alcoholic liquors to any
licensee within this State. A license | 19 | | shall be obtained for each car in which
such sales are made. | 20 | | (g) A boat license shall allow the sale of alcoholic | 21 | | liquor in
individual drinks, on any passenger boat regularly | 22 | | operated as a common
carrier on navigable waters in this State | 23 | | or on any riverboat operated
under
the Illinois Gambling Act, | 24 | | which boat or riverboat maintains a public
dining room or | 25 | | restaurant thereon. | 26 | | (h) A non-beverage user's license shall allow the licensee |
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| 1 | | to
purchase alcoholic liquor from a licensed manufacturer or | 2 | | importing
distributor, without the imposition of any tax upon | 3 | | the business of such
licensed manufacturer or importing | 4 | | distributor as to such alcoholic
liquor to be used by such | 5 | | licensee solely for the non-beverage purposes
set forth in | 6 | | subsection (a) of Section 8-1 of this Act, and
such licenses | 7 | | shall be divided and classified and shall permit the
purchase, | 8 | | possession and use of limited and stated quantities of
| 9 | | alcoholic liquor as follows: | 10 | | Class 1, not to exceed ......................... 500 gallons
| 11 | | Class 2, not to exceed ....................... 1,000 gallons
| 12 | | Class 3, not to exceed ....................... 5,000 gallons
| 13 | | Class 4, not to exceed ...................... 10,000 gallons
| 14 | | Class 5, not to exceed ....................... 50,000 gallons | 15 | | (i) A wine-maker's premises license shall allow a
licensee | 16 | | that concurrently holds a first-class wine-maker's license to | 17 | | sell
and offer for sale at retail in the premises specified in | 18 | | such license
not more than 50,000 gallons of the first-class | 19 | | wine-maker's wine that is
made at the first-class wine-maker's | 20 | | licensed premises per year for use or
consumption, but not for | 21 | | resale in any form. A wine-maker's premises
license shall | 22 | | allow a licensee who concurrently holds a second-class
| 23 | | wine-maker's license to sell and offer for sale at retail in | 24 | | the premises
specified in such license up to 100,000 gallons | 25 | | of the
second-class wine-maker's wine that is made at the | 26 | | second-class wine-maker's
licensed premises per year
for use |
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| 1 | | or consumption but not for resale in any form. A wine-maker's | 2 | | premises license shall allow a
licensee that concurrently | 3 | | holds a first-class wine-maker's license or a second-class
| 4 | | wine-maker's license to sell
and offer for sale at retail at | 5 | | the premises specified in the wine-maker's premises license, | 6 | | for use or consumption but not for resale in any form, any | 7 | | beer, wine, and spirits purchased from a licensed distributor. | 8 | | Upon approval from the
State Commission, a wine-maker's | 9 | | premises license
shall allow the licensee to sell and offer | 10 | | for sale at (i) the wine-maker's
licensed premises and (ii) at | 11 | | up to 2 additional locations for use and
consumption and not | 12 | | for resale. Each location shall require additional
licensing | 13 | | per location as specified in Section 5-3 of this Act. A | 14 | | wine-maker's premises licensee shall
secure liquor liability | 15 | | insurance coverage in an amount at
least equal to the maximum | 16 | | liability amounts set forth in
subsection (a) of Section 6-21 | 17 | | of this Act.
| 18 | | (j) An airplane license shall permit the licensee to | 19 | | import
alcoholic liquors into this State from any point in the | 20 | | United States
outside this State and to store such alcoholic | 21 | | liquors in this State; to
make wholesale purchases of | 22 | | alcoholic liquors directly from
manufacturers, foreign | 23 | | importers, distributors and importing
distributors from within | 24 | | or outside this State; and to store such
alcoholic liquors in | 25 | | this State; provided that the above powers may be
exercised | 26 | | only in connection with the importation, purchase or storage
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| 1 | | of alcoholic liquors to be sold or dispensed on an airplane; | 2 | | and
provided further, that airplane licensees exercising the | 3 | | above powers
shall be subject to all provisions of Article | 4 | | VIII of this Act as
applied to importing distributors. An | 5 | | airplane licensee shall also
permit the sale or dispensing of | 6 | | alcoholic liquors on any passenger
airplane regularly operated | 7 | | by a common carrier in this State, but shall
not permit the | 8 | | sale for resale of any alcoholic liquors to any licensee
| 9 | | within this State. A single airplane license shall be required | 10 | | of an
airline company if liquor service is provided on board | 11 | | aircraft in this
State. The annual fee for such license shall | 12 | | be as determined in
Section 5-3. | 13 | | (k) A foreign importer's license shall permit such | 14 | | licensee to purchase
alcoholic liquor from Illinois licensed | 15 | | non-resident dealers only, and to
import alcoholic liquor | 16 | | other than in bulk from any point outside the
United States and | 17 | | to sell such alcoholic liquor to Illinois licensed
importing | 18 | | distributors and to no one else in Illinois;
provided that (i) | 19 | | the foreign importer registers with the State Commission
every
| 20 | | brand of
alcoholic liquor that it proposes to sell to Illinois | 21 | | licensees during the
license period, (ii) the foreign importer | 22 | | complies with all of the provisions
of Section
6-9 of this Act | 23 | | with respect to registration of such Illinois licensees as may
| 24 | | be granted the
right to sell such brands at wholesale, and | 25 | | (iii) the foreign importer complies with the provisions of | 26 | | Sections 6-5 and 6-6 of this Act to the same extent that these |
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| 1 | | provisions apply to manufacturers. | 2 | | (l) (i) A broker's license shall be required of all | 3 | | persons
who solicit
orders for, offer to sell or offer to | 4 | | supply alcoholic liquor to
retailers in the State of Illinois, | 5 | | or who offer to retailers to ship or
cause to be shipped or to | 6 | | make contact with distillers, craft distillers, rectifiers,
| 7 | | brewers or manufacturers or any other party within or without | 8 | | the State
of Illinois in order that alcoholic liquors be | 9 | | shipped to a distributor,
importing distributor or foreign | 10 | | importer, whether such solicitation or
offer is consummated | 11 | | within or without the State of Illinois. | 12 | | No holder of a retailer's license issued by the Illinois | 13 | | Liquor
Control Commission shall purchase or receive any | 14 | | alcoholic liquor, the
order for which was solicited or offered | 15 | | for sale to such retailer by a
broker unless the broker is the | 16 | | holder of a valid broker's license. | 17 | | The broker shall, upon the acceptance by a retailer of the | 18 | | broker's
solicitation of an order or offer to sell or supply or | 19 | | deliver or have
delivered alcoholic liquors, promptly forward | 20 | | to the Illinois Liquor
Control Commission a notification of | 21 | | said transaction in such form as
the Commission may by | 22 | | regulations prescribe. | 23 | | (ii) A broker's license shall be required of
a person | 24 | | within this State, other than a retail licensee,
who, for a fee | 25 | | or commission, promotes, solicits, or accepts orders for
| 26 | | alcoholic liquor, for use or consumption and not for
resale, |
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| 1 | | to be shipped from this State and delivered to residents | 2 | | outside of
this State by an express company, common carrier, | 3 | | or contract carrier.
This Section does not apply to any person | 4 | | who promotes, solicits, or accepts
orders for wine as | 5 | | specifically authorized in Section 6-29 of this Act. | 6 | | A broker's license under this subsection (l)
shall not | 7 | | entitle the holder to
buy or sell any
alcoholic liquors for his | 8 | | own account or to take or deliver title to
such alcoholic | 9 | | liquors. | 10 | | This subsection (l)
shall not apply to distributors, | 11 | | employees of
distributors, or employees of a manufacturer who | 12 | | has registered the
trademark, brand or name of the alcoholic | 13 | | liquor pursuant to Section 6-9
of this Act, and who regularly | 14 | | sells such alcoholic liquor
in the State of Illinois only to | 15 | | its registrants thereunder. | 16 | | Any agent, representative, or person subject to | 17 | | registration pursuant to
subsection (a-1) of this Section | 18 | | shall not be eligible to receive a broker's
license. | 19 | | (m) A non-resident dealer's license shall permit such | 20 | | licensee to ship
into and warehouse alcoholic liquor into this | 21 | | State from any point
outside of this State, and to sell such | 22 | | alcoholic liquor to Illinois licensed
foreign importers and | 23 | | importing distributors and to no one else in this State;
| 24 | | provided that (i) said non-resident dealer shall register with | 25 | | the Illinois Liquor
Control Commission each and every brand of | 26 | | alcoholic liquor which it proposes
to sell to Illinois |
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| 1 | | licensees during the license period, (ii) it shall comply with | 2 | | all of the provisions of Section 6-9 hereof with
respect to | 3 | | registration of such Illinois licensees as may be granted the | 4 | | right
to sell such brands at wholesale by duly filing such | 5 | | registration statement, thereby authorizing the non-resident | 6 | | dealer to proceed to sell such brands at wholesale, and (iii) | 7 | | the non-resident dealer shall comply with the provisions of | 8 | | Sections 6-5 and 6-6 of this Act to the same extent that these | 9 | | provisions apply to manufacturers. No person licensed as a | 10 | | non-resident dealer shall be granted a distributor's or | 11 | | importing distributor's license. | 12 | | (n) A brew pub license shall allow the licensee to only (i) | 13 | | manufacture up to 155,000 gallons of beer per year only
on the | 14 | | premises specified in the license, (ii) make sales of the
beer | 15 | | manufactured on the premises or, with the approval of the | 16 | | Commission, beer manufactured on another brew pub licensed | 17 | | premises that is wholly owned and operated by the same | 18 | | licensee to importing distributors, distributors,
and to | 19 | | non-licensees for use and consumption, (iii) store the beer | 20 | | upon
the premises, (iv) sell and offer for sale at retail from | 21 | | the licensed
premises for off-premises
consumption no more | 22 | | than 155,000 gallons per year so long as such sales are only | 23 | | made in-person, (v) sell and offer for sale at retail for use | 24 | | and consumption on the premises specified in the license any | 25 | | form of alcoholic liquor purchased from a licensed distributor | 26 | | or importing distributor, (vi) with the prior approval of the |
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| 1 | | Commission, annually transfer no more than 155,000 gallons of | 2 | | beer manufactured on the premises to a licensed brew pub | 3 | | wholly owned and operated by the same licensee, and (vii) | 4 | | notwithstanding item (i) of this subsection, brew pubs wholly | 5 | | owned and operated by the same licensee may combine each | 6 | | location's production limit of 155,000 gallons of beer per | 7 | | year and allocate the aggregate total between the wholly | 8 | | owned, operated, and licensed locations. | 9 | | A brew pub licensee shall not under any circumstance sell | 10 | | or offer for sale beer manufactured by the brew pub licensee to | 11 | | retail licensees. | 12 | | A person who holds a class 2 brewer license may | 13 | | simultaneously hold a brew pub license if the class 2 brewer | 14 | | (i) does not, under any circumstance, sell or offer for sale | 15 | | beer manufactured by the class 2 brewer to retail licensees; | 16 | | (ii) does not hold more than 3 brew pub licenses in this State; | 17 | | (iii) does not manufacture more than a combined 3,720,000 | 18 | | gallons of beer per year, including the beer manufactured at | 19 | | the brew pub; and (iv) is not a member of or affiliated with, | 20 | | directly or indirectly, a manufacturer that produces more than | 21 | | 3,720,000 gallons of beer per year or any other alcoholic | 22 | | liquor. | 23 | | Notwithstanding any other provision of this Act, a | 24 | | licensed brewer, class 2 brewer, or non-resident dealer who | 25 | | before July 1, 2015 manufactured less than 3,720,000 gallons | 26 | | of beer per year and held a brew pub license on or before July |
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| 1 | | 1, 2015 may (i) continue to qualify for and hold that brew pub | 2 | | license for the licensed premises and (ii) manufacture more | 3 | | than 3,720,000 gallons of beer per year and continue to | 4 | | qualify for and hold that brew pub license if that brewer, | 5 | | class 2 brewer, or non-resident dealer does not simultaneously | 6 | | hold a class 1 brewer license and is not a member of or | 7 | | affiliated with, directly or indirectly, a manufacturer that | 8 | | produces more than 3,720,000 gallons of beer per year or that | 9 | | produces any other alcoholic liquor. | 10 | | (o) A caterer retailer license shall allow the holder
to | 11 | | serve alcoholic liquors as an incidental part of a food | 12 | | service that serves
prepared meals which excludes the serving | 13 | | of snacks as
the primary meal, either on or off-site whether | 14 | | licensed or unlicensed. A caterer retailer license shall allow | 15 | | the holder, a distributor, or an importing distributor to | 16 | | transfer any inventory to and from the holder's retail | 17 | | premises and shall allow the holder to purchase alcoholic | 18 | | liquor from a distributor or importing distributor to be | 19 | | delivered directly to an off-site event. | 20 | | Nothing in this Act prohibits a distributor or importing | 21 | | distributor from offering credit or a refund for unused, | 22 | | salable beer to a holder of a caterer retailer license or a | 23 | | caterer retailer licensee from accepting a credit or refund | 24 | | for unused, salable beer, in the event an act of God is the | 25 | | sole reason an off-site event is cancelled and if: (i) the | 26 | | holder of a caterer retailer license has not transferred |
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| 1 | | alcoholic liquor from its caterer retailer premises to an | 2 | | off-site location; (ii) the distributor or importing | 3 | | distributor offers the credit or refund for the unused, | 4 | | salable beer that it delivered to the off-site premises and | 5 | | not for any unused, salable beer that the distributor or | 6 | | importing distributor delivered to the caterer retailer's | 7 | | premises; and (iii) the unused, salable beer would likely | 8 | | spoil if transferred to the caterer retailer's premises. A | 9 | | caterer retailer license shall allow the holder to transfer | 10 | | any inventory from any off-site location to its caterer | 11 | | retailer premises at the conclusion of an off-site event or | 12 | | engage a distributor or importing distributor to transfer any | 13 | | inventory from any off-site location to its caterer retailer | 14 | | premises at the conclusion of an off-site event, provided that | 15 | | the distributor or importing distributor issues bona fide | 16 | | charges to the caterer retailer licensee for fuel, labor, and | 17 | | delivery and the distributor or importing distributor collects | 18 | | payment from the caterer retailer licensee prior to the | 19 | | distributor or importing distributor transferring inventory to | 20 | | the caterer retailer premises. | 21 | | For purposes of this subsection (o), an "act of God" means | 22 | | an unforeseeable event, such as a rain or snow storm, hail, a | 23 | | flood, or a similar event, that is the sole cause of the | 24 | | cancellation of an off-site, outdoor event. | 25 | | (p) An auction liquor license shall allow the licensee to | 26 | | sell and offer
for sale at auction wine and spirits for use or |
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| 1 | | consumption, or for resale by
an Illinois liquor licensee in | 2 | | accordance with provisions of this Act. An
auction liquor | 3 | | license will be issued to a person and it will permit the
| 4 | | auction liquor licensee to hold the auction anywhere in the | 5 | | State. An auction
liquor license must be obtained for each | 6 | | auction at least 14 days in advance of
the auction date. | 7 | | (q) A special use permit license shall allow an Illinois | 8 | | licensed
retailer to transfer a portion of its alcoholic | 9 | | liquor inventory from its
retail licensed premises to the | 10 | | premises specified in the license hereby
created; to purchase | 11 | | alcoholic liquor from a distributor or importing distributor | 12 | | to be delivered directly to the location specified in the | 13 | | license hereby created; and to sell or offer for sale at | 14 | | retail, only in the premises
specified in the license hereby | 15 | | created, the transferred or delivered alcoholic liquor for
use | 16 | | or consumption, but not for resale in any form. A special use | 17 | | permit
license may be granted for the following time periods: | 18 | | one day or less; 2 or
more days to a maximum of 15 days per | 19 | | location in any 12-month period. An
applicant for the special | 20 | | use permit license must also submit with the
application proof | 21 | | satisfactory to the State Commission that the applicant will
| 22 | | provide dram shop liability insurance to the maximum limits | 23 | | and have local
authority approval. | 24 | | A special use permit license shall allow the holder to | 25 | | transfer any inventory from the holder's special use premises | 26 | | to its retail premises at the conclusion of the special use |
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| 1 | | event or engage a distributor or importing distributor to | 2 | | transfer any inventory from the holder's special use premises | 3 | | to its retail premises at the conclusion of an off-site event, | 4 | | provided that the distributor or importing distributor issues | 5 | | bona fide charges to the special use permit licensee for fuel, | 6 | | labor, and delivery and the distributor or importing | 7 | | distributor collects payment from the retail licensee prior to | 8 | | the distributor or importing distributor transferring | 9 | | inventory to the retail premises. | 10 | | Nothing in this Act prohibits a distributor or importing | 11 | | distributor from offering credit or a refund for unused, | 12 | | salable beer to a special use permit licensee or a special use | 13 | | permit licensee from accepting a credit or refund for unused, | 14 | | salable beer at the conclusion of the event specified in the | 15 | | license if: (i) the holder of the special use permit license | 16 | | has not transferred alcoholic liquor from its retail licensed | 17 | | premises to the premises specified in the special use permit | 18 | | license; (ii) the distributor or importing distributor offers | 19 | | the credit or refund for the unused, salable beer that it | 20 | | delivered to the premises specified in the special use permit | 21 | | license and not for any unused, salable beer that the | 22 | | distributor or importing distributor delivered to the | 23 | | retailer's premises; and (iii) the unused, salable beer would | 24 | | likely spoil if transferred to the retailer premises. | 25 | | (r) A winery shipper's license shall allow a person
with a | 26 | | first-class or second-class wine manufacturer's
license, a |
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| 1 | | first-class or second-class wine-maker's license,
or a limited | 2 | | wine manufacturer's license or who is licensed to
make wine | 3 | | under the laws of another state to ship wine
made by that | 4 | | licensee directly to a resident of this
State who is 21 years | 5 | | of age or older for that resident's
personal use and not for | 6 | | resale. Prior to receiving a
winery shipper's license, an | 7 | | applicant for the license must
provide the Commission with a | 8 | | true copy of its current
license in any state in which it is | 9 | | licensed as a manufacturer
of wine. An applicant for a winery | 10 | | shipper's license must
also complete an application form that | 11 | | provides any other
information the Commission deems necessary. | 12 | | The application form shall include all addresses from which | 13 | | the applicant for a winery shipper's license intends to ship | 14 | | wine, including the name and address of any third party, | 15 | | except for a common carrier, authorized to ship wine on behalf | 16 | | of the manufacturer. The
application form shall include an | 17 | | acknowledgement consenting
to the jurisdiction of the | 18 | | Commission, the Illinois
Department of Revenue, and the courts | 19 | | of this State concerning
the enforcement of this Act and any | 20 | | related laws, rules, and
regulations, including authorizing | 21 | | the Department of Revenue
and the Commission to conduct audits | 22 | | for the purpose of
ensuring compliance with Public Act 95-634, | 23 | | and an acknowledgement that the wine manufacturer is in | 24 | | compliance with Section 6-2 of this Act. Any third party, | 25 | | except for a common carrier, authorized to ship wine on behalf | 26 | | of a first-class or second-class wine manufacturer's licensee, |
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| 1 | | a first-class or second-class wine-maker's licensee, a limited | 2 | | wine manufacturer's licensee, or a person who is licensed to | 3 | | make wine under the laws of another state shall also be | 4 | | disclosed by the winery shipper's licensee, and a copy of the | 5 | | written appointment of the third-party wine provider, except | 6 | | for a common carrier, to the wine manufacturer shall be filed | 7 | | with the State Commission as a supplement to the winery | 8 | | shipper's license application or any renewal thereof. The | 9 | | winery shipper's license holder shall affirm under penalty of | 10 | | perjury, as part of the winery shipper's license application | 11 | | or renewal, that he or she only ships wine, either directly or | 12 | | indirectly through a third-party provider, from the licensee's | 13 | | own production. | 14 | | Except for a common carrier, a third-party provider | 15 | | shipping wine on behalf of a winery shipper's license holder | 16 | | is the agent of the winery shipper's license holder and, as | 17 | | such, a winery shipper's license holder is responsible for the | 18 | | acts and omissions of the third-party provider acting on | 19 | | behalf of the license holder. A third-party provider, except | 20 | | for a common carrier, that engages in shipping wine into | 21 | | Illinois on behalf of a winery shipper's license holder shall | 22 | | consent to the jurisdiction of the State Commission and the | 23 | | State. Any third-party, except for a common carrier, holding | 24 | | such an appointment shall, by February 1 of each calendar year | 25 | | and upon request by the State Commission or the Department of | 26 | | Revenue, file with the State Commission a statement detailing |
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| 1 | | each shipment made to an Illinois resident. The statement | 2 | | shall include the name and address of the third-party provider | 3 | | filing the statement, the time period covered by the | 4 | | statement, and the following information: | 5 | | (1) the name, address, and license number of the | 6 | | winery shipper on whose behalf the shipment was made; | 7 | | (2) the quantity of the products delivered; and | 8 | | (3) the date and address of the shipment. | 9 | | If the Department of Revenue or the State Commission requests | 10 | | a statement under this paragraph, the third-party provider | 11 | | must provide that statement no later than 30 days after the | 12 | | request is made. Any books, records, supporting papers, and | 13 | | documents containing information and data relating to a | 14 | | statement under this paragraph shall be kept and preserved for | 15 | | a period of 3 years, unless their destruction sooner is | 16 | | authorized, in writing, by the Director of Revenue, and shall | 17 | | be open and available to inspection by the Director of Revenue | 18 | | or the State Commission or any duly authorized officer, agent, | 19 | | or employee of the State Commission or the Department of | 20 | | Revenue, at all times during business hours of the day. Any | 21 | | person who violates any provision of this paragraph or any | 22 | | rule of the State Commission for the administration and | 23 | | enforcement of the provisions of this paragraph is guilty of a | 24 | | Class C misdemeanor. In case of a continuing violation, each | 25 | | day's continuance thereof shall be a separate and distinct | 26 | | offense. |
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| 1 | | The State Commission shall adopt rules as soon as | 2 | | practicable to implement the requirements of Public Act 99-904 | 3 | | and shall adopt rules prohibiting any such third-party | 4 | | appointment of a third-party provider, except for a common | 5 | | carrier, that has been deemed by the State Commission to have | 6 | | violated the provisions of this Act with regard to any winery | 7 | | shipper licensee. | 8 | | A winery shipper licensee must pay to the Department
of | 9 | | Revenue the State liquor gallonage tax under Section 8-1 for
| 10 | | all wine that is sold by the licensee and shipped to a person
| 11 | | in this State. For the purposes of Section 8-1, a winery
| 12 | | shipper licensee shall be taxed in the same manner as a
| 13 | | manufacturer of wine. A licensee who is not otherwise required | 14 | | to register under the Retailers' Occupation Tax Act must
| 15 | | register under the Use Tax Act to collect and remit use tax to
| 16 | | the Department of Revenue for all gallons of wine that are sold
| 17 | | by the licensee and shipped to persons in this State. If a
| 18 | | licensee fails to remit the tax imposed under this Act in
| 19 | | accordance with the provisions of Article VIII of this Act, | 20 | | the
winery shipper's license shall be revoked in accordance
| 21 | | with the provisions of Article VII of this Act. If a licensee
| 22 | | fails to properly register and remit tax under the Use Tax Act
| 23 | | or the Retailers' Occupation Tax Act for all wine that is sold
| 24 | | by the winery shipper and shipped to persons in this
State, the | 25 | | winery shipper's license shall be revoked in
accordance with | 26 | | the provisions of Article VII of this Act. |
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| 1 | | A winery shipper licensee must collect, maintain, and
| 2 | | submit to the Commission on a semi-annual basis the
total | 3 | | number of cases per resident of wine shipped to residents
of | 4 | | this State.
A winery shipper licensed under this subsection | 5 | | (r)
must comply with the requirements of Section 6-29 of this | 6 | | Act. | 7 | | Pursuant to paragraph (5.1) or (5.3) of subsection (a) of | 8 | | Section 3-12, the State Commission may receive, respond to, | 9 | | and investigate any complaint and impose any of the remedies | 10 | | specified in paragraph (1) of subsection (a) of Section 3-12. | 11 | | As used in this subsection, "third-party provider" means | 12 | | any entity that provides fulfillment house services, including | 13 | | warehousing, packaging, distribution, order processing, or | 14 | | shipment of wine, but not the sale of wine, on behalf of a | 15 | | licensed winery shipper. | 16 | | (s) A craft distiller tasting permit license shall allow | 17 | | an Illinois licensed class 1 craft distiller or class 2 craft | 18 | | distiller to transfer a portion of its alcoholic liquor | 19 | | inventory from its class 1 craft distiller or class 2 craft | 20 | | distiller licensed premises to the premises specified in the | 21 | | license hereby created and to conduct a sampling, only in the | 22 | | premises specified in the license hereby created, of the | 23 | | transferred alcoholic liquor in accordance with subsection (c) | 24 | | of Section 6-31 of this Act. The transferred alcoholic liquor | 25 | | may not be sold or resold in any form. An applicant for the | 26 | | craft distiller tasting permit license must also submit with |
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| 1 | | the application proof satisfactory to the State Commission | 2 | | that the applicant will provide dram shop liability insurance | 3 | | to the maximum limits and have local authority approval. | 4 | | (t) A brewer warehouse permit may be issued to the holder | 5 | | of a class 1 brewer license or a class 2 brewer license. If the | 6 | | holder of the permit is a class 1 brewer licensee, the brewer | 7 | | warehouse permit shall allow the holder to store or warehouse | 8 | | up to 930,000 gallons of tax-determined beer manufactured by | 9 | | the holder of the permit at the premises specified on the | 10 | | permit. If the holder of the permit is a class 2 brewer | 11 | | licensee, the brewer warehouse permit shall allow the holder | 12 | | to store or warehouse up to 3,720,000 gallons of | 13 | | tax-determined beer manufactured by the holder of the permit | 14 | | at the premises specified on the permit. Sales to | 15 | | non-licensees are prohibited at the premises specified in the | 16 | | brewer warehouse permit. | 17 | | (u) A distilling pub license shall allow the licensee to | 18 | | only (i) manufacture up to 5,000 gallons of spirits per year | 19 | | only on the premises specified in the license, (ii) make sales | 20 | | of the spirits manufactured on the premises or, with the | 21 | | approval of the State Commission, spirits manufactured on | 22 | | another distilling pub licensed premises that is wholly owned | 23 | | and operated by the same licensee to importing distributors | 24 | | and distributors and to non-licensees for use and consumption, | 25 | | (iii) store the spirits upon the premises, (iv) sell and offer | 26 | | for sale at retail from the licensed premises for off-premises |
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| 1 | | consumption no more than 5,000 gallons per year so long as such | 2 | | sales are only made in-person, (v) sell and offer for sale at | 3 | | retail for use and consumption on the premises specified in | 4 | | the license any form of alcoholic liquor purchased from a | 5 | | licensed distributor or importing distributor, and (vi) with | 6 | | the prior approval of the State Commission, annually transfer | 7 | | no more than 5,000 gallons of spirits manufactured on the | 8 | | premises to a licensed distilling pub wholly owned and | 9 | | operated by the same licensee. | 10 | | A distilling pub licensee shall not under any circumstance | 11 | | sell or offer for sale spirits manufactured by the distilling | 12 | | pub licensee to retail licensees. | 13 | | A person who holds a class 2 craft distiller license may | 14 | | simultaneously hold a distilling pub license if the class 2 | 15 | | craft distiller (i) does not, under any circumstance, sell or | 16 | | offer for sale spirits manufactured by the class 2 craft | 17 | | distiller to retail licensees; (ii) does not hold more than 3 | 18 | | distilling pub licenses in this State; (iii) does not | 19 | | manufacture more than a combined 100,000 gallons of spirits | 20 | | per year, including the spirits manufactured at the distilling | 21 | | pub; and (iv) is not a member of or affiliated with, directly | 22 | | or indirectly, a manufacturer that produces more than 100,000 | 23 | | gallons of spirits per year or any other alcoholic liquor. | 24 | | (v) A craft distiller warehouse permit may be issued to | 25 | | the holder of a class 1 craft distiller or class 2 craft | 26 | | distiller license. The craft distiller warehouse permit shall |
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| 1 | | allow the holder to store or warehouse up to 500,000 gallons of | 2 | | spirits manufactured by the holder of the permit at the | 3 | | premises specified on the permit. Sales to non-licensees are | 4 | | prohibited at the premises specified in the craft distiller | 5 | | warehouse permit. | 6 | | (Source: P.A. 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; | 7 | | 100-816, eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. | 8 | | 8-23-18; 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; 101-81, | 9 | | eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. 8-23-19; | 10 | | 101-615, eff. 12-20-19.)
| 11 | | (235 ILCS 5/6-4) (from Ch. 43, par. 121)
| 12 | | Sec. 6-4. (a) No person licensed by any licensing | 13 | | authority as a
distiller, or a wine manufacturer, or any | 14 | | subsidiary or affiliate
thereof, or any officer, associate, | 15 | | member, partner, representative,
employee, agent or | 16 | | shareholder owning more than 5% of the outstanding
shares of | 17 | | such person shall be issued an importing distributor's or
| 18 | | distributor's license, nor shall any person licensed by any | 19 | | licensing
authority as an importing distributor, distributor | 20 | | or retailer, or any
subsidiary or affiliate thereof, or any | 21 | | officer or associate, member,
partner, representative, | 22 | | employee, agent or shareholder owning more than
5% of the | 23 | | outstanding shares of such person be issued a distiller's
| 24 | | license, a craft distiller's license, or a wine manufacturer's | 25 | | license; and no person or persons
licensed as a distiller, |
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| 1 | | craft distiller, class 1 craft distiller, or class 2 craft | 2 | | distiller by any licensing authority shall have any
interest, | 3 | | directly or indirectly, with such distributor or importing
| 4 | | distributor.
| 5 | | However, an importing distributor or distributor, which on | 6 | | January
1, 1985 is owned by a brewer, or any subsidiary or | 7 | | affiliate thereof or any
officer, associate, member, partner, | 8 | | representative, employee, agent or
shareholder owning more | 9 | | than 5% of the outstanding shares of the importing
distributor | 10 | | or distributor referred to in this paragraph, may own or
| 11 | | acquire an ownership interest of more than 5% of the | 12 | | outstanding shares of
a wine manufacturer and be issued a wine
| 13 | | manufacturer's license by any licensing authority.
| 14 | | (b) The foregoing provisions shall not apply to any person | 15 | | licensed
by any licensing authority as a distiller or wine | 16 | | manufacturer, or to
any subsidiary or affiliate of any | 17 | | distiller or wine manufacturer who
shall have been heretofore | 18 | | licensed by the State Commission as either an
importing | 19 | | distributor or distributor during the annual licensing period
| 20 | | expiring June 30, 1947, and shall actually have made sales | 21 | | regularly to
retailers.
| 22 | | (c) Provided, however, that in such instances where a | 23 | | distributor's
or importing distributor's license has been | 24 | | issued to any distiller or
wine manufacturer or to any | 25 | | subsidiary or affiliate of any distiller or
wine manufacturer | 26 | | who has, during the licensing period ending June 30,
1947, |
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| 1 | | sold or distributed as such licensed distributor or importing
| 2 | | distributor alcoholic liquors and wines to retailers, such | 3 | | distiller or
wine manufacturer or any subsidiary or affiliate | 4 | | of any distiller or
wine manufacturer holding such | 5 | | distributor's or importing distributor's
license may continue | 6 | | to sell or distribute to retailers such alcoholic
liquors and | 7 | | wines which are manufactured, distilled, processed or
marketed | 8 | | by distillers and wine manufacturers whose products it sold or
| 9 | | distributed to retailers during the whole or any part of its | 10 | | licensing
periods; and such additional brands and additional | 11 | | products may be added
to the line of such distributor or | 12 | | importing distributor, provided, that
such brands and such | 13 | | products were not sold or distributed by any
distributor or | 14 | | importing distributor licensed by the State Commission
during | 15 | | the licensing period ending June 30, 1947, but can not sell or
| 16 | | distribute to retailers any other alcoholic liquors or wines.
| 17 | | (d) It shall be unlawful for any distiller licensed | 18 | | anywhere to have
any stock ownership or interest in any | 19 | | distributor's or importing
distributor's license wherein any | 20 | | other person has an interest therein
who is not a distiller and | 21 | | does not own more than 5% of any stock in any
distillery. | 22 | | Nothing herein contained shall apply to such distillers or
| 23 | | their subsidiaries or affiliates, who had a distributor's or | 24 | | importing
distributor's license during the licensing period | 25 | | ending June 30, 1947,
which license was owned in whole by such | 26 | | distiller, or subsidiaries or
affiliates of such distiller.
|
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| 1 | | (e) Any person licensed as a brewer, class 1 brewer, or | 2 | | class 2 brewer shall be
permitted to sell on the licensed | 3 | | premises to non-licensees for on or off-premises consumption | 4 | | for the premises in which he
or she actually conducts such | 5 | | business: (i) beer manufactured by the brewer, class 1 brewer, | 6 | | or class 2 brewer; (ii) beer manufactured by any other brewer, | 7 | | class 1 brewer, or class 2 brewer; and (iii) cider or mead . | 8 | | Such sales shall be limited to on-premises, in-person sales | 9 | | only, for lawful consumption on or off premises. Such | 10 | | authorization shall be considered a privilege granted by the | 11 | | brewer license and, other than a manufacturer of beer
as | 12 | | stated above, no manufacturer or distributor or importing
| 13 | | distributor, excluding airplane licensees exercising powers | 14 | | provided in
paragraph (i) of Section 5-1 of this Act, or any | 15 | | subsidiary or affiliate
thereof, or any officer,
associate, | 16 | | member, partner, representative, employee or agent, or
| 17 | | shareholder shall be issued a retailer's license, nor shall | 18 | | any person
having a retailer's license, excluding airplane | 19 | | licensees exercising powers
provided in paragraph (i) of | 20 | | Section 5-1 of this
Act, or any subsidiary or affiliate | 21 | | thereof, or
any officer, associate, member, partner, | 22 | | representative or agent, or
shareholder be issued a | 23 | | manufacturer's license or importing distributor's
license.
| 24 | | A manufacturer of beer that imports or transfers beer into | 25 | | this State must comply with Sections 6-8 and 8-1 of this Act. | 26 | | A person who holds a class 1 or class 2 brewer license and |
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| 1 | | is authorized by this Section to sell beer to non-licensees | 2 | | shall not sell beer to non-licensees from more than 3 total | 3 | | brewer or commonly owned brew pub licensed locations in this | 4 | | State. The class 1 or class 2 brewer shall designate to the | 5 | | State Commission the brewer or brew pub locations from which | 6 | | it will sell beer to non-licensees. | 7 | | A person licensed as a class 1 craft distiller or a class 2 | 8 | | craft distiller, including a person who holds more than one | 9 | | class 1 craft distiller or class 2 craft distiller license, | 10 | | not affiliated with any other person manufacturing spirits may | 11 | | be authorized by the State Commission to sell (1) up to 5,000 | 12 | | gallons of spirits produced by the person to non-licensees for | 13 | | on or off-premises consumption for the premises in which he or | 14 | | she actually conducts business permitting only the retail sale | 15 | | of spirits manufactured at such premises and (2) vermouth | 16 | | purchased through a licensed distributor for on-premises | 17 | | consumption. Such sales shall be limited to on-premises, | 18 | | in-person sales only, for lawful consumption on or off | 19 | | premises, and such authorization shall be considered a | 20 | | privilege granted by the class 1 craft distiller or class 2 | 21 | | craft distiller license. A class 1 craft distiller or class 2 | 22 | | craft distiller licensed for retail sale shall secure liquor | 23 | | liability insurance coverage in an amount at least equal to | 24 | | the maximum liability amounts set forth in subsection (a) of | 25 | | Section 6-21 of this Act. | 26 | | A class 1 craft distiller or class 2 craft distiller |
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| 1 | | license holder shall not deliver any alcoholic liquor to any | 2 | | non-licensee off the licensed premises. A class 1 craft | 3 | | distiller or class 2 craft distiller shall affirm in its | 4 | | annual license application that it does not produce more than | 5 | | 50,000 or 100,000 gallons of distilled spirits annually, | 6 | | whichever is applicable, and that the craft distiller does not | 7 | | sell more than 5,000 gallons of spirits to non-licensees for | 8 | | on or off-premises consumption. In the application, which | 9 | | shall be sworn under penalty of perjury, the class 1 craft | 10 | | distiller or class 2 craft distiller shall state the volume of | 11 | | production and sales for each year since the class 1 craft | 12 | | distiller's or class 2 craft distiller's establishment. | 13 | | A person who holds a class 1 craft distiller or class 2 | 14 | | craft distiller license and is authorized by this Section to | 15 | | sell spirits to non-licensees shall not sell spirits to | 16 | | non-licensees from more than 3 total distillery or commonly | 17 | | owned distilling pub licensed locations in this State. The | 18 | | class 1 craft distiller or class 2 craft distiller shall | 19 | | designate to the State Commission the distillery or distilling | 20 | | pub locations from which it will sell spirits to | 21 | | non-licensees. | 22 | | (f) (Blank).
| 23 | | (g) Notwithstanding any of the foregoing prohibitions, a | 24 | | limited wine
manufacturer may sell at retail at its | 25 | | manufacturing site for on or off
premises consumption and may | 26 | | sell to distributors. A limited wine manufacturer licensee
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| 1 | | shall secure liquor liability insurance coverage in an amount
| 2 | | at least equal to the maximum liability amounts set forth in
| 3 | | subsection (a) of Section 6-21 of this Act.
| 4 | | (h) The changes made to this Section by Public Act 99-47 | 5 | | shall not diminish or impair the rights of any person, whether | 6 | | a distiller, wine manufacturer, agent, or affiliate thereof, | 7 | | who requested in writing and submitted documentation to the | 8 | | State Commission on or before February 18, 2015 to be approved | 9 | | for a retail license pursuant to what has heretofore been | 10 | | subsection (f); provided that, on or before that date, the | 11 | | State Commission considered the intent of that person to apply | 12 | | for the retail license under that subsection and, by recorded | 13 | | vote, the State Commission approved a resolution indicating | 14 | | that such a license application could be lawfully approved | 15 | | upon that person duly filing a formal application for a retail | 16 | | license and if that person, within 90 days of the State | 17 | | Commission appearance and recorded vote, first filed an | 18 | | application with the appropriate local commission, which | 19 | | application was subsequently approved by the appropriate local | 20 | | commission prior to consideration by the State Commission of | 21 | | that person's application for a retail license. It is further | 22 | | provided that the State Commission may approve the person's | 23 | | application for a retail license or renewals of such license | 24 | | if such person continues to diligently adhere to all | 25 | | representations made in writing to the State Commission on or | 26 | | before February 18, 2015, or thereafter, or in the affidavit |
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| 1 | | filed by that person with the State Commission to support the | 2 | | issuance of a retail license and to abide by all applicable | 3 | | laws and duly adopted rules. | 4 | | (Source: P.A. 100-201, eff. 8-18-17; 100-816, eff. 8-13-18; | 5 | | 100-885, eff. 8-14-18; 101-81, eff. 7-12-19; 101-482, eff. | 6 | | 8-23-19; 101-615, eff. 12-20-19.)
| 7 | | Section 99. Effective date. This Act takes effect upon | 8 | | becoming law.
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