Illinois General Assembly - Full Text of HB3237
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Full Text of HB3237  99th General Assembly

HB3237enr 99TH GENERAL ASSEMBLY

  
  
  

 


 
HB3237 EnrolledLRB099 07830 RPS 27965 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 1-3.33, 1-3.38, 3-12, 5-1, 5-3, 6-4, 6-5,
66-6, and 6-36 and by adding Section 1-3.40 as follows:
 
7    (235 ILCS 5/1-3.33)
8    Sec. 1-3.33. "Brew Pub" means a person who manufactures no
9more than 155,000 gallons of beer per year only at a designated
10licensed premises to make sales to importing distributors,
11distributors, and to non-licensees for use and consumption
12only, who stores beer at the designated premises, and who is
13allowed to sell at retail from the licensed premises, provided
14that a brew pub licensee shall not sell for off-premises
15consumption more than 155,000 50,000 gallons per year. A person
16who holds a brew pub license may simultaneously hold a craft
17brewer license if he or she otherwise qualifies for the craft
18brewer license and the craft brewer license is for a location
19separate from the brew pub's licensed premises.
20(Source: P.A. 97-5, eff. 6-1-11.)
 
21    (235 ILCS 5/1-3.38)
22    Sec. 1-3.38. Class 1 brewer. "Class 1 Craft brewer" means a

 

 

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1person who is a holder of a licensed brewer license or licensed
2non-resident dealer license who manufactures up to 930,000
3gallons of beer per year and who may make sales and deliveries
4to importing distributors and distributors and to retail
5licensees in accordance with the conditions set forth in
6paragraph (18) of subsection (a) of Section 3-12 of this Act.
7(Source: P.A. 97-5, eff. 6-1-11; 98-401, eff. 8-16-13.)
 
8    (235 ILCS 5/1-3.40 new)
9    Sec. 1-3.40. Class 2 brewer. "Class 2 brewer" means a
10person who is a holder of a brewer license or non-resident
11dealer license who manufactures up to 3,720,000 gallons of beer
12per year for sale to a licensed importing distributor or
13distributor.
 
14    (235 ILCS 5/3-12)
15    (Text of Section before amendment by P.A. 98-939)
16    Sec. 3-12. Powers and duties of State Commission.
17    (a) The State commission shall have the following powers,
18functions, and duties:
19        (1) To receive applications and to issue licenses to
20    manufacturers, foreign importers, importing distributors,
21    distributors, non-resident dealers, on premise consumption
22    retailers, off premise sale retailers, special event
23    retailer licensees, special use permit licenses, auction
24    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.
14        In lieu of suspending or revoking a license, the
15    commission may impose a fine, upon the State commission's
16    determination and notice after hearing, that a licensee has
17    violated any provision of this Act or any rule or
18    regulation issued pursuant thereto and in effect for 30
19    days prior to such violation.
20        For the purpose of this paragraph (1), when determining
21    multiple violations for the sale of alcohol to a person
22    under the age of 21, a second or subsequent violation for
23    the sale of alcohol to a person under the age of 21 shall
24    only be considered if it was committed within 5 years after
25    the date when a prior violation for the sale of alcohol to
26    a person under the age of 21 was committed.

 

 

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1        The fine imposed under this paragraph may not exceed
2    $500 for each violation. Each day that the activity, which
3    gave rise to the original fine, continues is a separate
4    violation. The maximum fine that may be levied against any
5    licensee, for the period of the license, shall not exceed
6    $20,000. The maximum penalty that may be imposed on a
7    licensee for selling a bottle of alcoholic liquor with a
8    foreign object in it or serving from a bottle of alcoholic
9    liquor with a foreign object in it shall be the destruction
10    of that bottle of alcoholic liquor for the first 10 bottles
11    so sold or served from by the licensee. For the eleventh
12    bottle of alcoholic liquor and for each third bottle
13    thereafter sold or served from by the licensee with a
14    foreign object in it, the maximum penalty that may be
15    imposed on the licensee is the destruction of the bottle of
16    alcoholic liquor and a fine of up to $50.
17        (2) To adopt such rules and regulations consistent with
18    the provisions of this Act which shall be necessary to
19    carry on its functions and duties to the end that the
20    health, safety and welfare of the People of the State of
21    Illinois shall be protected and temperance in the
22    consumption of alcoholic liquors shall be fostered and
23    promoted and to distribute copies of such rules and
24    regulations to all licensees affected thereby.
25        (3) To call upon other administrative departments of
26    the State, county and municipal governments, county and

 

 

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1    city police departments and upon prosecuting officers for
2    such information and assistance as it deems necessary in
3    the performance of its duties.
4        (4) To recommend to local commissioners rules and
5    regulations, not inconsistent with the law, for the
6    distribution and sale of alcoholic liquors throughout the
7    State.
8        (5) To inspect, or cause to be inspected, any premises
9    in this State where alcoholic liquors are manufactured,
10    distributed, warehoused, or sold. Nothing in this Act
11    authorizes an agent of the Commission to inspect private
12    areas within the premises without reasonable suspicion or a
13    warrant during an inspection. "Private areas" include, but
14    are not limited to, safes, personal property, and closed
15    desks.
16        (5.1) Upon receipt of a complaint or upon having
17    knowledge that any person is engaged in business as a
18    manufacturer, importing distributor, distributor, or
19    retailer without a license or valid license, to notify the
20    local liquor authority, file a complaint with the State's
21    Attorney's Office of the county where the incident
22    occurred, or initiate an investigation with the
23    appropriate law enforcement officials.
24        (5.2) To issue a cease and desist notice to persons
25    shipping alcoholic liquor into this State from a point
26    outside of this State if the shipment is in violation of

 

 

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

 

 

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

 

 

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1    to be examined the books and records of such licensee; to
2    hear testimony and take proof material for its information
3    in the discharge of its duties hereunder; to administer or
4    cause to be administered oaths; for any such purpose to
5    issue subpoena or subpoenas to require the attendance of
6    witnesses and the production of books, which shall be
7    effective in any part of this State, and to adopt rules to
8    implement its powers under this paragraph (8).
9        Any Circuit Court may by order duly entered, require
10    the attendance of witnesses and the production of relevant
11    books subpoenaed by the State commission and the court may
12    compel obedience to its order by proceedings for contempt.
13        (9) To investigate the administration of laws in
14    relation to alcoholic liquors in this and other states and
15    any foreign countries, and to recommend from time to time
16    to the Governor and through him or her to the legislature
17    of this State, such amendments to this Act, if any, as it
18    may think desirable and as will serve to further the
19    general broad purposes contained in Section 1-2 hereof.
20        (10) To adopt such rules and regulations consistent
21    with the provisions of this Act which shall be necessary
22    for the control, sale or disposition of alcoholic liquor
23    damaged as a result of an accident, wreck, flood, fire or
24    other similar occurrence.
25        (11) To develop industry educational programs related
26    to responsible serving and selling, particularly in the

 

 

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1    areas of overserving consumers and illegal underage
2    purchasing and consumption of alcoholic beverages.
3        (11.1) To license persons providing education and
4    training to alcohol beverage sellers and servers under the
5    Beverage Alcohol Sellers and Servers Education and
6    Training (BASSET) programs and to develop and administer a
7    public awareness program in Illinois to reduce or eliminate
8    the illegal purchase and consumption of alcoholic beverage
9    products by persons under the age of 21. Application for a
10    license shall be made on forms provided by the State
11    Commission.
12        (12) To develop and maintain a repository of license
13    and regulatory information.
14        (13) On or before January 15, 1994, the Commission
15    shall issue a written report to the Governor and General
16    Assembly that is to be based on a comprehensive study of
17    the impact on and implications for the State of Illinois of
18    Section 1926 of the Federal ADAMHA Reorganization Act of
19    1992 (Public Law 102-321). This study shall address the
20    extent to which Illinois currently complies with the
21    provisions of P.L. 102-321 and the rules promulgated
22    pursuant thereto.
23        As part of its report, the Commission shall provide the
24    following essential information:
25            (i) the number of retail distributors of tobacco
26        products, by type and geographic area, in the State;

 

 

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

 

 

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1    Services to conduct unannounced investigations of Illinois
2    tobacco vendors to determine compliance with federal laws
3    relating to the illegal sale of cigarettes and smokeless
4    tobacco products to persons under the age of 18.
5        (14) On or before April 30, 2008 and every 2 years
6    thereafter, the Commission shall present a written report
7    to the Governor and the General Assembly that shall be
8    based on a study of the impact of this amendatory Act of
9    the 95th General Assembly on the business of soliciting,
10    selling, and shipping wine from inside and outside of this
11    State directly to residents of this State. As part of its
12    report, the Commission shall provide all of the following
13    information:
14            (A) The amount of State excise and sales tax
15        revenues generated.
16            (B) The amount of licensing fees received.
17            (C) The number of cases of wine shipped from inside
18        and outside of this State directly to residents of this
19        State.
20            (D) The number of alcohol compliance operations
21        conducted.
22            (E) The number of winery shipper's licenses
23        issued.
24            (F) The number of each of the following: reported
25        violations; cease and desist notices issued by the
26        Commission; notices of violations issued by the

 

 

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1        Commission and to the Department of Revenue; and
2        notices and complaints of violations to law
3        enforcement officials, including, without limitation,
4        the Illinois Attorney General and the U.S. Department
5        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
6        (15) As a means to reduce the underage consumption of
7    alcoholic liquors, the Commission shall conduct alcohol
8    compliance operations to investigate whether businesses
9    that are soliciting, selling, and shipping wine from inside
10    or outside of this State directly to residents of this
11    State are licensed by this State or are selling or
12    attempting to sell wine to persons under 21 years of age in
13    violation of this Act.
14        (16) The Commission shall, in addition to notifying any
15    appropriate law enforcement agency, submit notices of
16    complaints or violations of Sections 6-29 and 6-29.1 by
17    persons who do not hold a winery shipper's license under
18    this amendatory Act to the Illinois Attorney General and to
19    the U.S. Department of Treasury's Alcohol and Tobacco Tax
20    and Trade Bureau.
21        (17) (A) A person licensed to make wine under the laws
22    of another state who has a winery shipper's license under
23    this amendatory Act and annually produces less than 25,000
24    gallons of wine or a person who has a first-class or
25    second-class wine manufacturer's license, a first-class or
26    second-class wine-maker's license, or a limited wine

 

 

HB3237 Enrolled- 13 -LRB099 07830 RPS 27965 b

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

 

 

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1        annually certify to the Commission its production of
2        wine in the previous 12 months and its anticipated
3        production and sales for the next 12 months. The
4        Commission may fine, suspend, or revoke a
5        self-distribution exemption after a hearing if it
6        finds that the exemption holder has made a material
7        misrepresentation in its application, violated a
8        revenue or liquor law of Illinois, exceeded production
9        of 25,000 gallons of wine in any calendar year, or
10        become part of an affiliated group producing more than
11        25,000 gallons of wine or any other alcoholic liquor.
12            (E) Except in hearings for violations of this Act
13        or amendatory Act or a bona fide investigation by duly
14        sworn law enforcement officials, the Commission, or
15        its agents, the Commission shall maintain the
16        production and sales information of a
17        self-distribution exemption holder as confidential and
18        shall not release such information to any person.
19            (F) The Commission shall issue regulations
20        governing self-distribution exemptions consistent with
21        this Section and this Act.
22            (G) Nothing in this subsection (17) shall prohibit
23        a self-distribution exemption holder from entering
24        into or simultaneously having a distribution agreement
25        with a licensed Illinois distributor.
26            (H) It is the intent of this subsection (17) to

 

 

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1        promote and continue orderly markets. The General
2        Assembly finds that in order to preserve Illinois'
3        regulatory distribution system it is necessary to
4        create an exception for smaller makers of wine as their
5        wines are frequently adjusted in varietals, mixes,
6        vintages, and taste to find and create market niches
7        sometimes too small for distributor or importing
8        distributor business strategies. Limited
9        self-distribution rights will afford and allow smaller
10        makers of wine access to the marketplace in order to
11        develop a customer base without impairing the
12        integrity of the 3-tier system.
13        (18) (A) A class 1 craft brewer licensee, who must also
14    be either a licensed brewer or licensed non-resident dealer
15    and annually manufacture less than 930,000 gallons of beer,
16    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 of the exemption holder's beer to
19    retail licensees per year.
20            (B) In the application, which shall be sworn under
21        penalty of perjury, the class 1 craft brewer licensee
22        shall state (1) the date it was established; (2) its
23        volume of beer manufactured and sold for each year
24        since its establishment; (3) its efforts to establish
25        distributor relationships; (4) that a
26        self-distribution exemption is necessary to facilitate

 

 

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1        the marketing of its beer; and (5) that it will comply
2        with the alcoholic beverage and revenue laws of the
3        United States, this State, and any other state where it
4        is licensed.
5            (C) Any application submitted shall be posted on
6        the State Commission's website at least 45 days prior
7        to action by the State Commission. The State Commission
8        shall approve the application for a self-distribution
9        exemption if the class 1 craft brewer licensee: (1) is
10        in compliance with the State, revenue, and alcoholic
11        beverage laws; (2) is not a member of any affiliated
12        group that manufacturers more than 930,000 gallons of
13        beer per annum or produces any other alcoholic
14        beverages; (3) shall not annually manufacture for sale
15        more than 930,000 gallons of beer; and (4) shall not
16        annually sell more than 232,500 gallons of its beer to
17        retail licensees; and (5) has relinquished any brew pub
18        license held by the licensee, including any ownership
19        interest held in the licensed brew pub.
20            (D) A self-distribution exemption holder shall
21        annually certify to the State Commission its
22        manufacture of beer during the previous 12 months and
23        its anticipated manufacture and sales of beer for the
24        next 12 months. The State Commission may fine, suspend,
25        or revoke a self-distribution exemption after a
26        hearing if it finds that the exemption holder has made

 

 

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1        a material misrepresentation in its application,
2        violated a revenue or alcoholic beverage law of
3        Illinois, exceeded the manufacture of 930,000 gallons
4        of beer in any calendar year or became part of an
5        affiliated group manufacturing more than 930,000
6        gallons of beer or any other alcoholic beverage.
7            (E) The State Commission shall issue rules and
8        regulations governing self-distribution exemptions
9        consistent with this Act.
10            (F) Nothing in this paragraph (18) shall prohibit a
11        self-distribution exemption holder from entering into
12        or simultaneously having a distribution agreement with
13        a licensed Illinois importing distributor or a
14        distributor. If a self-distribution exemption holder
15        enters into a distribution agreement and has assigned
16        distribution rights to an importing distributor or
17        distributor, then the self-distribution exemption
18        holder's distribution rights in the assigned
19        territories shall cease in a reasonable time not to
20        exceed 60 days.
21            (G) It is the intent of this paragraph (18) to
22        promote and continue orderly markets. The General
23        Assembly finds that in order to preserve Illinois'
24        regulatory distribution system, it is necessary to
25        create an exception for smaller manufacturers in order
26        to afford and allow such smaller manufacturers of beer

 

 

HB3237 Enrolled- 18 -LRB099 07830 RPS 27965 b

1        access to the marketplace in order to develop a
2        customer base without impairing the integrity of the
3        3-tier system.
4    (b) On or before April 30, 1999, the Commission shall
5present a written report to the Governor and the General
6Assembly that shall be based on a study of the impact of this
7amendatory Act of 1998 on the business of soliciting, selling,
8and shipping alcoholic liquor from outside of this State
9directly to residents of this State.
10    As part of its report, the Commission shall provide the
11following information:
12        (i) the amount of State excise and sales tax revenues
13    generated as a result of this amendatory Act of 1998;
14        (ii) the amount of licensing fees received as a result
15    of this amendatory Act of 1998;
16        (iii) the number of reported violations, the number of
17    cease and desist notices issued by the Commission, the
18    number of notices of violations issued to the Department of
19    Revenue, and the number of notices and complaints of
20    violations to law enforcement officials.
21(Source: P.A. 97-5, eff. 6-1-11; 98-401, eff. 8-16-13; 98-941,
22eff. 1-1-15.)
 
23    (Text of Section after amendment by P.A. 98-939)
24    Sec. 3-12. Powers and duties of State Commission.
25    (a) The State commission shall have the following powers,

 

 

HB3237 Enrolled- 19 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 20 -LRB099 07830 RPS 27965 b

1        For the purpose of this paragraph (1), when determining
2    multiple violations for the sale of alcohol to a person
3    under the age of 21, a second or subsequent violation for
4    the sale of alcohol to a person under the age of 21 shall
5    only be considered if it was committed within 5 years after
6    the date when a prior violation for the sale of alcohol to
7    a person under the age of 21 was committed.
8        The fine imposed under this paragraph may not exceed
9    $500 for each violation. Each day that the activity, which
10    gave rise to the original fine, continues is a separate
11    violation. The maximum fine that may be levied against any
12    licensee, for the period of the license, shall not exceed
13    $20,000. The maximum penalty that may be imposed on a
14    licensee for selling a bottle of alcoholic liquor with a
15    foreign object in it or serving from a bottle of alcoholic
16    liquor with a foreign object in it shall be the destruction
17    of that bottle of alcoholic liquor for the first 10 bottles
18    so sold or served from by the licensee. For the eleventh
19    bottle of alcoholic liquor and for each third bottle
20    thereafter sold or served from by the licensee with a
21    foreign object in it, the maximum penalty that may be
22    imposed on the licensee is the destruction of the bottle of
23    alcoholic liquor and a fine of up to $50.
24        (2) To adopt such rules and regulations consistent with
25    the provisions of this Act which shall be necessary to
26    carry on its functions and duties to the end that the

 

 

HB3237 Enrolled- 21 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 22 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 23 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 24 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 25 -LRB099 07830 RPS 27965 b

1        (10) To adopt such rules and regulations consistent
2    with the provisions of this Act which shall be necessary
3    for the control, sale or disposition of alcoholic liquor
4    damaged as a result of an accident, wreck, flood, fire or
5    other similar occurrence.
6        (11) To develop industry educational programs related
7    to responsible serving and selling, particularly in the
8    areas of overserving consumers and illegal underage
9    purchasing and consumption of alcoholic beverages.
10        (11.1) To license persons providing education and
11    training to alcohol beverage sellers and servers for
12    mandatory and non-mandatory training under the Beverage
13    Alcohol Sellers and Servers Education and Training
14    (BASSET) programs and to develop and administer a public
15    awareness program in Illinois to reduce or eliminate the
16    illegal purchase and consumption of alcoholic beverage
17    products by persons under the age of 21. Application for a
18    license shall be made on forms provided by the State
19    Commission.
20        (12) To develop and maintain a repository of license
21    and regulatory information.
22        (13) On or before January 15, 1994, the Commission
23    shall issue a written report to the Governor and General
24    Assembly that is to be based on a comprehensive study of
25    the impact on and implications for the State of Illinois of
26    Section 1926 of the Federal ADAMHA Reorganization Act of

 

 

HB3237 Enrolled- 26 -LRB099 07830 RPS 27965 b

1    1992 (Public Law 102-321). This study shall address the
2    extent to which Illinois currently complies with the
3    provisions of P.L. 102-321 and the rules promulgated
4    pursuant thereto.
5        As part of its report, the Commission shall provide the
6    following essential information:
7            (i) the number of retail distributors of tobacco
8        products, by type and geographic area, in the State;
9            (ii) the number of reported citations and
10        successful convictions, categorized by type and
11        location of retail distributor, for violation of the
12        Prevention of Tobacco Use by Minors and Sale and
13        Distribution of Tobacco Products Act and the Smokeless
14        Tobacco Limitation Act;
15            (iii) the extent and nature of organized
16        educational and governmental activities that are
17        intended to promote, encourage or otherwise secure
18        compliance with any Illinois laws that prohibit the
19        sale or distribution of tobacco products to minors; and
20            (iv) the level of access and availability of
21        tobacco products to individuals under the age of 18.
22        To obtain the data necessary to comply with the
23    provisions of P.L. 102-321 and the requirements of this
24    report, the Commission shall conduct random, unannounced
25    inspections of a geographically and scientifically
26    representative sample of the State's retail tobacco

 

 

HB3237 Enrolled- 27 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 28 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 29 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 30 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 31 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 32 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 33 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 34 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 35 -LRB099 07830 RPS 27965 b

1    Revenue, and the number of notices and complaints of
2    violations to law enforcement officials.
3(Source: P.A. 97-5, eff. 6-1-11; 98-401, eff. 8-16-13; 98-939,
4eff. 7-1-15; 98-941, eff. 1-1-15; revised 10-6-14.)
 
5    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
6    Sec. 5-1. Licenses issued by the Illinois Liquor Control
7Commission shall be of the following classes:
8    (a) Manufacturer's license - Class 1. Distiller, Class 2.
9Rectifier, Class 3. Brewer, Class 4. First Class Wine
10Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
11First Class Winemaker, Class 7. Second Class Winemaker, Class
128. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1310. Class 1 Craft Brewer, Class 11. Class 2 Brewer,
14    (b) Distributor's license,
15    (c) Importing Distributor's license,
16    (d) Retailer's license,
17    (e) Special Event Retailer's license (not-for-profit),
18    (f) Railroad license,
19    (g) Boat license,
20    (h) Non-Beverage User's license,
21    (i) Wine-maker's premises license,
22    (j) Airplane license,
23    (k) Foreign importer's license,
24    (l) Broker's license,
25    (m) Non-resident dealer's license,

 

 

HB3237 Enrolled- 36 -LRB099 07830 RPS 27965 b

1    (n) Brew Pub license,
2    (o) Auction liquor license,
3    (p) Caterer retailer license,
4    (q) Special use permit license,
5    (r) Winery shipper's license.
6    No person, firm, partnership, corporation, or other legal
7business entity that is engaged in the manufacturing of wine
8may concurrently obtain and hold a wine-maker's license and a
9wine manufacturer's license.
10    (a) A manufacturer's license shall allow the manufacture,
11importation in bulk, storage, distribution and sale of
12alcoholic liquor to persons without the State, as may be
13permitted by law and to licensees in this State as follows:
14    Class 1. A Distiller may make sales and deliveries of
15alcoholic liquor to distillers, rectifiers, importing
16distributors, distributors and non-beverage users and to no
17other licensees.
18    Class 2. A Rectifier, who is not a distiller, as defined
19herein, may make sales and deliveries of alcoholic liquor to
20rectifiers, importing distributors, distributors, retailers
21and non-beverage users and to no other licensees.
22    Class 3. A Brewer may make sales and deliveries of beer to
23importing distributors and distributors and may make sales as
24authorized under subsection (e) of Section 6-4 of this Act.
25    Class 4. A first class wine-manufacturer may make sales and
26deliveries of up to 50,000 gallons of wine to manufacturers,

 

 

HB3237 Enrolled- 37 -LRB099 07830 RPS 27965 b

1importing distributors and distributors, and to no other
2licensees.
3    Class 5. A second class Wine manufacturer may make sales
4and deliveries of more than 50,000 gallons of wine to
5manufacturers, importing distributors and distributors and to
6no other licensees.
7    Class 6. A first-class wine-maker's license shall allow the
8manufacture of up to 50,000 gallons of wine per year, and the
9storage and sale of such wine to distributors in the State and
10to persons without the State, as may be permitted by law. A
11person who, prior to the effective date of this amendatory Act
12of the 95th General Assembly, is a holder of a first-class
13wine-maker's license and annually produces more than 25,000
14gallons of its own wine and who distributes its wine to
15licensed retailers shall cease this practice on or before July
161, 2008 in compliance with this amendatory Act of the 95th
17General Assembly.
18    Class 7. A second-class wine-maker's license shall allow
19the manufacture of between 50,000 and 150,000 gallons of wine
20per year, and the storage and sale of such wine to distributors
21in this State and to persons without the State, as may be
22permitted by law. A person who, prior to the effective date of
23this amendatory Act of the 95th General Assembly, is a holder
24of a second-class wine-maker's license and annually produces
25more than 25,000 gallons of its own wine and who distributes
26its wine to licensed retailers shall cease this practice on or

 

 

HB3237 Enrolled- 38 -LRB099 07830 RPS 27965 b

1before July 1, 2008 in compliance with this amendatory Act of
2the 95th General Assembly.
3    Class 8. A limited wine-manufacturer may make sales and
4deliveries not to exceed 40,000 gallons of wine per year to
5distributors, and to non-licensees in accordance with the
6provisions of this Act.
7    Class 9. A craft distiller license shall allow the
8manufacture of up to 30,000 gallons of spirits by distillation
9for one year after the effective date of this amendatory Act of
10the 97th General Assembly and up to 35,000 gallons of spirits
11by distillation per year thereafter and the storage of such
12spirits. If a craft distiller licensee is not affiliated with
13any other manufacturer, then the craft distiller licensee may
14sell such spirits to distributors in this State and up to 2,500
15gallons of such spirits to non-licensees to the extent
16permitted by any exemption approved by the Commission pursuant
17to Section 6-4 of this Act.
18    Any craft distiller licensed under this Act who on the
19effective date of this amendatory Act of the 96th General
20Assembly was licensed as a distiller and manufactured no more
21spirits than permitted by this Section shall not be required to
22pay the initial licensing fee.
23    Class 10. A class 1 brewer craft brewer's license, which
24may only be issued to a licensed brewer or licensed
25non-resident dealer, shall allow the manufacture of up to
26930,000 gallons of beer per year provided that the class 1

 

 

HB3237 Enrolled- 39 -LRB099 07830 RPS 27965 b

1brewer licensee does not manufacture more than a combined
2930,000 gallons of beer per year and is not a member of or
3affiliated with, directly or indirectly, a manufacturer that
4produces more than 930,000 gallons of beer per year or any
5other alcoholic liquor. A class 1 craft brewer licensee may
6make sales and deliveries to importing distributors and
7distributors and to retail licensees in accordance with the
8conditions set forth in paragraph (18) of subsection (a) of
9Section 3-12 of this Act.
10    Class 11. A class 2 brewer license, which may only be
11issued to a licensed brewer or licensed non-resident dealer,
12shall allow the manufacture of up to 3,720,000 gallons of beer
13per year provided that the class 2 brewer licensee does not
14manufacture more than a combined 3,720,000 gallons of beer per
15year and is not a member of or affiliated with, directly or
16indirectly, a manufacturer that produces more than 3,720,000
17gallons of beer per year or any other alcoholic liquor. A class
182 brewer licensee may make sales and deliveries to importing
19distributors and distributors, but shall not make sales or
20deliveries to any other licensee. If the State Commission
21provides prior approval, a class 2 brewer licensee may annually
22transfer up to 3,720,000 gallons of beer manufactured by that
23class 2 brewer licensee to the premises of a licensed class 2
24brewer wholly owned and operated by the same licensee.
25    (a-1) A manufacturer which is licensed in this State to
26make sales or deliveries of alcoholic liquor to licensed

 

 

HB3237 Enrolled- 40 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 41 -LRB099 07830 RPS 27965 b

1    (c) An importing distributor's license may be issued to and
2held by those only who are duly licensed distributors, upon the
3filing of an application by a duly licensed distributor, with
4the Commission and the Commission shall, without the payment of
5any fee, immediately issue such importing distributor's
6license to the applicant, which shall allow the importation of
7alcoholic liquor by the licensee into this State from any point
8in the United States outside this State, and the purchase of
9alcoholic liquor in barrels, casks or other bulk containers and
10the bottling of such alcoholic liquors before resale thereof,
11but all bottles or containers so filled shall be sealed,
12labeled, stamped and otherwise made to comply with all
13provisions, rules and regulations governing manufacturers in
14the preparation and bottling of alcoholic liquors. The
15importing distributor's license shall permit such licensee to
16purchase alcoholic liquor from Illinois licensed non-resident
17dealers and foreign importers only.
18    (d) A retailer's license shall allow the licensee to sell
19and offer for sale at retail, only in the premises specified in
20the license, alcoholic liquor for use or consumption, but not
21for resale in any form. Nothing in this amendatory Act of the
2295th General Assembly shall deny, limit, remove, or restrict
23the ability of a holder of a retailer's license to transfer,
24deliver, or ship alcoholic liquor to the purchaser for use or
25consumption subject to any applicable local law or ordinance.
26Any retail license issued to a manufacturer shall only permit

 

 

HB3237 Enrolled- 42 -LRB099 07830 RPS 27965 b

1the manufacturer to sell beer at retail on the premises
2actually occupied by the manufacturer. For the purpose of
3further describing the type of business conducted at a retail
4licensed premises, a retailer's licensee may be designated by
5the State Commission as (i) an on premise consumption retailer,
6(ii) an off premise sale retailer, or (iii) a combined on
7premise consumption and off premise sale retailer.
8    Notwithstanding any other provision of this subsection
9(d), a retail licensee may sell alcoholic liquors to a special
10event retailer licensee for resale to the extent permitted
11under subsection (e).
12    (e) A special event retailer's license (not-for-profit)
13shall permit the licensee to purchase alcoholic liquors from an
14Illinois licensed distributor (unless the licensee purchases
15less than $500 of alcoholic liquors for the special event, in
16which case the licensee may purchase the alcoholic liquors from
17a licensed retailer) and shall allow the licensee to sell and
18offer for sale, at retail, alcoholic liquors for use or
19consumption, but not for resale in any form and only at the
20location and on the specific dates designated for the special
21event in the license. An applicant for a special event retailer
22license must (i) furnish with the application: (A) a resale
23number issued under Section 2c of the Retailers' Occupation Tax
24Act or evidence that the applicant is registered under Section
252a of the Retailers' Occupation Tax Act, (B) a current, valid
26exemption identification number issued under Section 1g of the

 

 

HB3237 Enrolled- 43 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 44 -LRB099 07830 RPS 27965 b

1above powers shall be subject to all provisions of Article VIII
2of this Act as applied to importing distributors. A railroad
3license shall also permit the licensee to sell or dispense
4alcoholic liquors on any club, buffet, lounge or dining car
5operated on an electric, gas or steam railway regularly
6operated by a common carrier in this State, but shall not
7permit the sale for resale of any alcoholic liquors to any
8licensee within this State. A license shall be obtained for
9each car in which such sales are made.
10    (g) A boat license shall allow the sale of alcoholic liquor
11in individual drinks, on any passenger boat regularly operated
12as a common carrier on navigable waters in this State or on any
13riverboat operated under the Riverboat Gambling Act, which boat
14or riverboat maintains a public dining room or restaurant
15thereon.
16    (h) A non-beverage user's license shall allow the licensee
17to purchase alcoholic liquor from a licensed manufacturer or
18importing distributor, without the imposition of any tax upon
19the business of such licensed manufacturer or importing
20distributor as to such alcoholic liquor to be used by such
21licensee solely for the non-beverage purposes set forth in
22subsection (a) of Section 8-1 of this Act, and such licenses
23shall be divided and classified and shall permit the purchase,
24possession and use of limited and stated quantities of
25alcoholic liquor as follows:
26Class 1, not to exceed ......................... 500 gallons

 

 

HB3237 Enrolled- 45 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 46 -LRB099 07830 RPS 27965 b

1use and consumption and not for resale. Each location shall
2require additional licensing per location as specified in
3Section 5-3 of this Act. A wine-maker's premises licensee shall
4secure liquor liability insurance coverage in an amount at
5least equal to the maximum liability amounts set forth in
6subsection (a) of Section 6-21 of this Act.
7    (j) An airplane license shall permit the licensee to import
8alcoholic liquors into this State from any point in the United
9States outside this State and to store such alcoholic liquors
10in this State; to make wholesale purchases of alcoholic liquors
11directly from manufacturers, foreign importers, distributors
12and importing distributors from within or outside this State;
13and to store such alcoholic liquors in this State; provided
14that the above powers may be exercised only in connection with
15the importation, purchase or storage of alcoholic liquors to be
16sold or dispensed on an airplane; and provided further, that
17airplane licensees exercising the above powers shall be subject
18to all provisions of Article VIII of this Act as applied to
19importing distributors. An airplane licensee shall also permit
20the sale or dispensing of alcoholic liquors on any passenger
21airplane regularly operated by a common carrier in this State,
22but shall not permit the sale for resale of any alcoholic
23liquors to any licensee within this State. A single airplane
24license shall be required of an airline company if liquor
25service is provided on board aircraft in this State. The annual
26fee for such license shall be as determined in Section 5-3.

 

 

HB3237 Enrolled- 47 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 48 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 49 -LRB099 07830 RPS 27965 b

1liquor pursuant to Section 6-9 of this Act, and who regularly
2sells such alcoholic liquor in the State of Illinois only to
3its registrants thereunder.
4    Any agent, representative, or person subject to
5registration pursuant to subsection (a-1) of this Section shall
6not be eligible to receive a broker's license.
7    (m) A non-resident dealer's license shall permit such
8licensee to ship into and warehouse alcoholic liquor into this
9State from any point outside of this State, and to sell such
10alcoholic liquor to Illinois licensed foreign importers and
11importing distributors and to no one else in this State;
12provided that (i) said non-resident dealer shall register with
13the Illinois Liquor Control Commission each and every brand of
14alcoholic liquor which it proposes to sell to Illinois
15licensees during the license period, (ii) it shall comply with
16all of the provisions of Section 6-9 hereof with respect to
17registration of such Illinois licensees as may be granted the
18right to sell such brands at wholesale, and (iii) the
19non-resident dealer shall comply with the provisions of
20Sections 6-5 and 6-6 of this Act to the same extent that these
21provisions apply to manufacturers.
22    (n) A brew pub license shall allow the licensee to only (i)
23to manufacture up to 155,000 gallons of beer per year only on
24the premises specified in the license, (ii) to make sales of
25the beer manufactured on the premises or, with the approval of
26the Commission, beer manufactured on another brew pub licensed

 

 

HB3237 Enrolled- 50 -LRB099 07830 RPS 27965 b

1premises that is wholly substantially owned and operated by the
2same licensee to importing distributors, distributors, and to
3non-licensees for use and consumption, (iii) to store the beer
4upon the premises, and (iv) to sell and offer for sale at
5retail from the licensed premises, provided that a brew pub
6licensee shall not sell for off-premises consumption no more
7than 155,000 50,000 gallons per year so long as such sales are
8only made in-person, (v) sell and offer for sale at retail for
9use and consumption on the premises specified in the license
10any form of alcoholic liquor purchased from a licensed
11distributor or importing distributor, and (vi) with the prior
12approval of the Commission, annually transfer no more than
13155,000 gallons of beer manufactured on the premises to a
14licensed brew pub wholly owned and operated by the same
15licensee.
16    A brew pub licensee shall not under any circumstance sell
17or offer for sale beer manufactured by the brew pub licensee to
18retail licensees.
19    A person who holds a class 2 brewer license may
20simultaneously hold a brew pub license if the class 2 brewer
21(i) does not, under any circumstance, sell or offer for sale
22beer manufactured by the class 2 brewer to retail licensees;
23(ii) does not hold more than 3 brew pub licenses in this State;
24(iii) does not manufacture more than a combined 3,720,000
25gallons of beer per year, including the beer manufactured at
26the brew pub; and (iv) is not a member of or affiliated with,

 

 

HB3237 Enrolled- 51 -LRB099 07830 RPS 27965 b

1directly or indirectly, a manufacturer that produces more than
23,720,000 gallons of beer per year or any other alcoholic
3liquor.
4    Notwithstanding any other provision of this Act, a licensed
5brewer, class 2 brewer, or non-resident dealer who before July
61, 2015 manufactured less than than 3,720,000 gallons of beer
7per year and held a brew pub license on or before July 1, 2015
8may (i) continue to qualify for and hold that brew pub license
9for the licensed premises and (ii) manufacture more than
103,720,000 gallons of beer per year and continue to qualify for
11and hold that brew pub license if that brewer, class 2 brewer,
12or non-resident dealer does not simultaneously hold a class 1
13brewer license and is not a member of or affiliated with,
14directly or indirectly, a manufacturer that produces more than
153,720,000 gallons of beer per year or that produces any other
16alcoholic liquor.
17     A person who holds a brew pub license may simultaneously
18hold a craft brewer license if he or she otherwise qualifies
19for the craft brewer license and the craft brewer license is
20for a location separate from the brew pub's licensed premises.
21A brew pub license shall permit a person who has received prior
22approval from the Commission to annually transfer no more than
23a total of 50,000 gallons of beer manufactured on premises to
24all other licensed brew pubs that are substantially owned and
25operated by the same person.
26    (o) A caterer retailer license shall allow the holder to

 

 

HB3237 Enrolled- 52 -LRB099 07830 RPS 27965 b

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

 

 

HB3237 Enrolled- 53 -LRB099 07830 RPS 27965 b

1    (r) A winery shipper's license shall allow a person with a
2first-class or second-class wine manufacturer's license, a
3first-class or second-class wine-maker's license, or a limited
4wine manufacturer's license or who is licensed to make wine
5under the laws of another state to ship wine made by that
6licensee directly to a resident of this State who is 21 years
7of age or older for that resident's personal use and not for
8resale. Prior to receiving a winery shipper's license, an
9applicant for the license must provide the Commission with a
10true copy of its current license in any state in which it is
11licensed as a manufacturer of wine. An applicant for a winery
12shipper's license must also complete an application form that
13provides any other information the Commission deems necessary.
14The application form shall include an acknowledgement
15consenting to the jurisdiction of the Commission, the Illinois
16Department of Revenue, and the courts of this State concerning
17the enforcement of this Act and any related laws, rules, and
18regulations, including authorizing the Department of Revenue
19and the Commission to conduct audits for the purpose of
20ensuring compliance with this amendatory Act.
21    A winery shipper licensee must pay to the Department of
22Revenue the State liquor gallonage tax under Section 8-1 for
23all wine that is sold by the licensee and shipped to a person
24in this State. For the purposes of Section 8-1, a winery
25shipper licensee shall be taxed in the same manner as a
26manufacturer of wine. A licensee who is not otherwise required

 

 

HB3237 Enrolled- 54 -LRB099 07830 RPS 27965 b

1to register under the Retailers' Occupation Tax Act must
2register under the Use Tax Act to collect and remit use tax to
3the Department of Revenue for all gallons of wine that are sold
4by the licensee and shipped to persons in this State. If a
5licensee fails to remit the tax imposed under this Act in
6accordance with the provisions of Article VIII of this Act, the
7winery shipper's license shall be revoked in accordance with
8the provisions of Article VII of this Act. If a licensee fails
9to properly register and remit tax under the Use Tax Act or the
10Retailers' Occupation Tax Act for all wine that is sold by the
11winery shipper and shipped to persons in this State, the winery
12shipper's license shall be revoked in accordance with the
13provisions of Article VII of this Act.
14    A winery shipper licensee must collect, maintain, and
15submit to the Commission on a semi-annual basis the total
16number of cases per resident of wine shipped to residents of
17this State. A winery shipper licensed under this subsection (r)
18must comply with the requirements of Section 6-29 of this
19amendatory Act.
20    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
21Section 3-12, the State Commission may receive, respond to, and
22investigate any complaint and impose any of the remedies
23specified in paragraph (1) of subsection (a) of Section 3-12.
24(Source: P.A. 97-5, eff. 6-1-11; 97-455, eff. 8-19-11; 97-813,
25eff. 7-13-12; 97-1166, eff. 3-1-13; 98-394, eff. 8-16-13;
2698-401, eff. 8-16-13; 98-756, eff. 7-16-14.)
 

 

 

HB3237 Enrolled- 55 -LRB099 07830 RPS 27965 b

1    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
2    Sec. 5-3. License fees. Except as otherwise provided
3herein, at the time application is made to the State Commission
4for a license of any class, the applicant shall pay to the
5State Commission the fee hereinafter provided for the kind of
6license applied for.
7    The fee for licenses issued by the State Commission shall
8be as follows:
9    For a manufacturer's license:
10    Class 1. Distiller .............................$3,600
11    Class 2. Rectifier .............................3,600
12    Class 3. Brewer ................................900
13    Class 4. First-class Wine Manufacturer .........600
14    Class 5. Second-class
15        Wine Manufacturer ..........................1,200
16    Class 6. First-class wine-maker ................600
17    Class 7. Second-class wine-maker ...............1200
18    Class 8. Limited Wine Manufacturer..............120
19    Class 9. Craft Distiller........................ 1,800
20    Class 10. Class 1 Craft Brewer...................25
21    Class 11. Class 2 Brewer........................ 25
22    For a Brew Pub License .........................1,050
23    For a caterer retailer's license................200
24    For a foreign importer's license ...............25
25    For an importing distributor's license .........25

 

 

HB3237 Enrolled- 56 -LRB099 07830 RPS 27965 b

1    For a distributor's license ....................270
2    For a non-resident dealer's license
3        (500,000 gallons or over) ..................270
4    For a non-resident dealer's license
5        (under 500,000 gallons) ....................90
6    For a wine-maker's premises license ............100
7    For a winery shipper's license
8        (under 250,000 gallons).....................150
9    For a winery shipper's license
10        (250,000 or over, but under 500,000 gallons).500
11    For a winery shipper's license
12        (500,000 gallons or over)...................1,000
13    For a wine-maker's premises license,
14        second location ............................350
15    For a wine-maker's premises license,
16        third location .............................350
17    For a retailer's license .......................500
18    For a special event retailer's license,
19        (not-for-profit) ...........................25
20    For a special use permit license,
21        one day only ...............................50
22        2 days or more .............................100
23    For a railroad license .........................60
24    For a boat license .............................180
25    For an airplane license, times the
26        licensee's maximum number of aircraft

 

 

HB3237 Enrolled- 57 -LRB099 07830 RPS 27965 b

1        in flight, serving liquor over the
2        State at any given time, which either
3        originate, terminate, or make
4        an intermediate stop in the State ..........60
5    For a non-beverage user's license:
6        Class 1 ....................................24
7        Class 2 ....................................60
8        Class 3 ....................................120
9        Class 4 ....................................240
10        Class 5 ....................................600
11    For a broker's license .........................600
12    For an auction liquor license ..................50
13    For a homebrewer special event permit........... 25
14    Fees collected under this Section shall be paid into the
15Dram Shop Fund. On and after July 1, 2003, of the funds
16received for a retailer's license, in addition to the first
17$175, an additional $75 shall be paid into the Dram Shop Fund,
18and $250 shall be paid into the General Revenue Fund. Beginning
19June 30, 1990 and on June 30 of each subsequent year through
20June 29, 2003, any balance over $5,000,000 remaining in the
21Dram Shop Fund shall be credited to State liquor licensees and
22applied against their fees for State liquor licenses for the
23following year. The amount credited to each licensee shall be a
24proportion of the balance in the Dram Fund that is the same as
25the proportion of the license fee paid by the licensee under
26this Section for the period in which the balance was

 

 

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1accumulated to the aggregate fees paid by all licensees during
2that period.
3    No fee shall be paid for licenses issued by the State
4Commission to the following non-beverage users:
5        (a) Hospitals, sanitariums, or clinics when their use
6    of alcoholic liquor is exclusively medicinal, mechanical
7    or scientific.
8        (b) Universities, colleges of learning or schools when
9    their use of alcoholic liquor is exclusively medicinal,
10    mechanical or scientific.
11        (c) Laboratories when their use is exclusively for the
12    purpose of scientific research.
13(Source: P.A. 97-5, eff. 6-1-11; 98-55, eff. 7-5-13.)
 
14    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
15    Sec. 6-4. (a) No person licensed by any licensing authority
16as a distiller, or a wine manufacturer, or any subsidiary or
17affiliate thereof, or any officer, associate, member, partner,
18representative, employee, agent or shareholder owning more
19than 5% of the outstanding shares of such person shall be
20issued an importing distributor's or distributor's license,
21nor shall any person licensed by any licensing authority as an
22importing distributor, distributor or retailer, or any
23subsidiary or affiliate thereof, or any officer or associate,
24member, partner, representative, employee, agent or
25shareholder owning more than 5% of the outstanding shares of

 

 

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

 

 

HB3237 Enrolled- 60 -LRB099 07830 RPS 27965 b

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

 

 

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

 

 

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1    A person who holds a class 1 or class 2 brewer license and
2is authorized by this Section to sell beer to non-licensees
3shall not sell beer to non-licensees from more than 3 total
4brewer or commonly owned brew pub licensed locations in this
5State. The class 1 or class 2 brewer shall designate to the
6State Commission the brewer or brew pub locations from which it
7will sell beer to non-licensees.
8    A person licensed as a craft distiller not affiliated with
9any other person manufacturing spirits may be authorized by the
10Commission to sell up to 2,500 gallons of spirits produced by
11the person to non-licensees for on or off-premises consumption
12for the premises in which he or she actually conducts business
13permitting only the retail sale of spirits manufactured at such
14premises. Such sales shall be limited to on-premises, in-person
15sales only, for lawful consumption on or off premises, and such
16authorization shall be considered a privilege granted by the
17craft distiller license. A craft distiller licensed for retail
18sale shall secure liquor liability insurance coverage in an
19amount at least equal to the maximum liability amounts set
20forth in subsection (a) of Section 6-21 of this Act.
21    (f) However, the foregoing prohibitions against any person
22licensed as a distiller or wine manufacturer being issued a
23retailer's license shall not apply:
24        (i) to any hotel, motel or restaurant whose principal
25    business is not the sale of alcoholic liquors if said
26    retailer's sales of any alcoholic liquors manufactured,

 

 

HB3237 Enrolled- 63 -LRB099 07830 RPS 27965 b

1    sold, distributed or controlled, directly or indirectly,
2    by any affiliate, subsidiary, officer, associate, member,
3    partner, representative, employee, agent or shareholder
4    owning more than 5% of the outstanding shares of such
5    person does not exceed 10% of the total alcoholic liquor
6    sales of said retail licensee; and
7        (ii) where the Commission determines, having
8    considered the public welfare, the economic impact upon the
9    State and the entirety of the facts and circumstances
10    involved, that the purpose and intent of this Section would
11    not be violated by granting an exemption.
12    (g) Notwithstanding any of the foregoing prohibitions, a
13limited wine manufacturer may sell at retail at its
14manufacturing site for on or off premises consumption and may
15sell to distributors. A limited wine manufacturer licensee
16shall secure liquor liability insurance coverage in an amount
17at least equal to the maximum liability amounts set forth in
18subsection (a) of Section 6-21 of this Act.
19(Source: P.A. 96-1367, eff. 7-28-10; 97-606, eff. 8-26-11;
2097-1166, eff. 3-1-13.)
 
21    (235 ILCS 5/6-5)  (from Ch. 43, par. 122)
22    Sec. 6-5. Except as otherwise provided in this Section, it
23is unlawful for any person having a retailer's license or any
24officer, associate, member, representative or agent of such
25licensee to accept, receive or borrow money, or anything else

 

 

HB3237 Enrolled- 64 -LRB099 07830 RPS 27965 b

1of value, or accept or receive credit (other than merchandising
2credit in the ordinary course of business for a period not to
3exceed 30 days) directly or indirectly from any manufacturer,
4importing distributor or distributor of alcoholic liquor, or
5from any person connected with or in any way representing, or
6from any member of the family of, such manufacturer, importing
7distributor, distributor or wholesaler, or from any
8stockholders in any corporation engaged in manufacturing,
9distributing or wholesaling of such liquor, or from any
10officer, manager, agent or representative of said
11manufacturer. Except as provided below, it is unlawful for any
12manufacturer or distributor or importing distributor to give or
13lend money or anything of value, or otherwise loan or extend
14credit (except such merchandising credit) directly or
15indirectly to any retail licensee or to the manager,
16representative, agent, officer or director of such licensee. A
17manufacturer, distributor or importing distributor may furnish
18free advertising, posters, signs, brochures, hand-outs, or
19other promotional devices or materials to any unit of
20government owning or operating any auditorium, exhibition
21hall, recreation facility or other similar facility holding a
22retailer's license, provided that the primary purpose of such
23promotional devices or materials is to promote public events
24being held at such facility. A unit of government owning or
25operating such a facility holding a retailer's license may
26accept such promotional devices or materials designed

 

 

HB3237 Enrolled- 65 -LRB099 07830 RPS 27965 b

1primarily to promote public events held at the facility. No
2retail licensee delinquent beyond the 30 day period specified
3in this Section shall solicit, accept or receive credit,
4purchase or acquire alcoholic liquors, directly or indirectly
5from any other licensee, and no manufacturer, distributor or
6importing distributor shall knowingly grant or extend credit,
7sell, furnish or supply alcoholic liquors to any such
8delinquent retail licensee; provided that the purchase price of
9all beer sold to a retail licensee shall be paid by the retail
10licensee in cash on or before delivery of the beer, and unless
11the purchase price payable by a retail licensee for beer sold
12to him in returnable bottles shall expressly include a charge
13for the bottles and cases, the retail licensee shall, on or
14before delivery of such beer, pay the seller in cash a deposit
15in an amount not less than the deposit required to be paid by
16the distributor to the brewer; but where the brewer sells
17direct to the retailer, the deposit shall be an amount no less
18than that required by the brewer from his own distributors; and
19provided further, that in no instance shall this deposit be
20less than 50 cents for each case of beer in pint or smaller
21bottles and 60 cents for each case of beer in quart or
22half-gallon bottles; and provided further, that the purchase
23price of all beer sold to an importing distributor or
24distributor shall be paid by such importing distributor or
25distributor in cash on or before the 15th day (Sundays and
26holidays excepted) after delivery of such beer to such

 

 

HB3237 Enrolled- 66 -LRB099 07830 RPS 27965 b

1purchaser; and unless the purchase price payable by such
2importing distributor or distributor for beer sold in
3returnable bottles and cases shall expressly include a charge
4for the bottles and cases, such importing distributor or
5distributor shall, on or before the 15th day (Sundays and
6holidays excepted) after delivery of such beer to such
7purchaser, pay the seller in cash a required amount as a
8deposit to assure the return of such bottles and cases. Nothing
9herein contained shall prohibit any licensee from crediting or
10refunding to a purchaser the actual amount of money paid for
11bottles, cases, kegs or barrels returned by the purchaser to
12the seller or paid by the purchaser as a deposit on bottles,
13cases, kegs or barrels, when such containers or packages are
14returned to the seller. Nothing herein contained shall prohibit
15any manufacturer, importing distributor or distributor from
16extending usual and customary credit for alcoholic liquor sold
17to customers or purchasers who live in or maintain places of
18business outside of this State when such alcoholic liquor is
19actually transported and delivered to such points outside of
20this State.
21    A manufacturer, distributor, or importing distributor may
22furnish free social media advertising to a retail licensee if
23the social media advertisement does not contain the retail
24price of any alcoholic liquor and the social media
25advertisement complies with any applicable rules or
26regulations issued by the Alcohol and Tobacco Tax and Trade

 

 

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1Bureau of the United States Department of the Treasury. A
2manufacturer, distributor, or importing distributor may list
3the names of one or more unaffiliated retailers in the
4advertisement of alcoholic liquor through social media.
5Nothing in this Section shall prohibit a retailer from
6communicating with a manufacturer, distributor, or importing
7distributor on social media or sharing media on the social
8media of a manufacturer, distributor, or importing
9distributor. A retailer may request free social media
10advertising from a manufacturer, distributor, or importing
11distributor. Nothing in this Section shall prohibit a
12manufacturer, distributor, or importing distributor from
13sharing, reposting, or otherwise forwarding a social media post
14by a retail licensee, so long as the sharing, reposting, or
15forwarding of the social media post does not contain the retail
16price of any alcoholic liquor. No manufacturer, distributor, or
17importing distributor shall pay or reimburse a retailer,
18directly or indirectly, for any social media advertising
19services, except as specifically permitted in this Act. No
20retailer shall accept any payment or reimbursement, directly or
21indirectly, for any social media advertising services offered
22by a manufacturer, distributor, or importing distributor,
23except as specifically permitted in this Act. For the purposes
24of this Section, "social media" means a service, platform, or
25site where users communicate with one another and share media,
26such as pictures, videos, music, and blogs, with other users

 

 

HB3237 Enrolled- 68 -LRB099 07830 RPS 27965 b

1free of charge.
2    No right of action shall exist for the collection of any
3claim based upon credit extended to a distributor, importing
4distributor or retail licensee contrary to the provisions of
5this Section.
6    Every manufacturer, importing distributor and distributor
7shall submit or cause to be submitted, to the State Commission,
8in triplicate, not later than Thursday of each calendar week, a
9verified written list of the names and respective addresses of
10each retail licensee purchasing spirits or wine from such
11manufacturer, importing distributor or distributor who, on the
12first business day of that calendar week, was delinquent beyond
13the above mentioned permissible merchandising credit period of
1430 days; or, if such is the fact, a verified written statement
15that no retail licensee purchasing spirits or wine was then
16delinquent beyond such permissible merchandising credit period
17of 30 days.
18    Every manufacturer, importing distributor and distributor
19shall submit or cause to be submitted, to the State Commission,
20in triplicate, a verified written list of the names and
21respective addresses of each previously reported delinquent
22retail licensee who has cured such delinquency by payment,
23which list shall be submitted not later than the close of the
24second full business day following the day such delinquency was
25so cured.
26    Such written verified reports required to be submitted by

 

 

HB3237 Enrolled- 69 -LRB099 07830 RPS 27965 b

1this Section shall be posted by the State Commission in each of
2its offices in places available for public inspection not later
3than the day following receipt thereof by the Commission. The
4reports so posted shall constitute notice to every
5manufacturer, importing distributor and distributor of the
6information contained therein. Actual notice to manufacturers,
7importing distributors and distributors of the information
8contained in any such posted reports, however received, shall
9also constitute notice of such information.
10    The 30 day merchandising credit period allowed by this
11Section shall commence with the day immediately following the
12date of invoice and shall include all successive days including
13Sundays and holidays to and including the 30th successive day.
14    In addition to other methods allowed by law, payment by
15check during the period for which merchandising credit may be
16extended under the provisions of this Section shall be
17considered payment. All checks received in payment for
18alcoholic liquor shall be promptly deposited for collection. A
19post dated check or a check dishonored on presentation for
20payment shall not be deemed payment.
21    A retail licensee shall not be deemed to be delinquent in
22payment for any alleged sale to him of alcoholic liquor when
23there exists a bona fide dispute between such retailer and a
24manufacturer, importing distributor or distributor with
25respect to the amount of indebtedness existing because of such
26alleged sale.

 

 

HB3237 Enrolled- 70 -LRB099 07830 RPS 27965 b

1    A delinquent retail licensee who engages in the retail
2liquor business at 2 or more locations shall be deemed to be
3delinquent with respect to each such location.
4    The license of any person who violates any provision of
5this Section shall be subject to suspension or revocation in
6the manner provided by this Act.
7    If any part or provision of this Article or the application
8thereof to any person or circumstances shall be adjudged
9invalid by a court of competent jurisdiction, such judgment
10shall be confined by its operation to the controversy in which
11it was mentioned and shall not affect or invalidate the
12remainder of this Article or the application thereof to any
13other person or circumstance and to this and the provisions of
14this Article are declared severable.
15(Source: P.A. 83-762.)
 
16    (235 ILCS 5/6-6)  (from Ch. 43, par. 123)
17    Sec. 6-6. Except as otherwise provided in this Act no
18manufacturer or distributor or importing distributor shall,
19directly or indirectly, sell, supply, furnish, give or pay for,
20or loan or lease, any furnishing, fixture or equipment on the
21premises of a place of business of another licensee authorized
22under this Act to sell alcoholic liquor at retail, either for
23consumption on or off the premises, nor shall he or she,
24directly or indirectly, pay for any such license, or advance,
25furnish, lend or give money for payment of such license, or

 

 

HB3237 Enrolled- 71 -LRB099 07830 RPS 27965 b

1purchase or become the owner of any note, mortgage, or other
2evidence of indebtedness of such licensee or any form of
3security therefor, nor shall such manufacturer, or
4distributor, or importing distributor, directly or indirectly,
5be interested in the ownership, conduct or operation of the
6business of any licensee authorized to sell alcoholic liquor at
7retail, nor shall any manufacturer, or distributor, or
8importing distributor be interested directly or indirectly or
9as owner or part owner of said premises or as lessee or lessor
10thereof, in any premises upon which alcoholic liquor is sold at
11retail.
12    No manufacturer or distributor or importing distributor
13shall, directly or indirectly or through a subsidiary or
14affiliate, or by any officer, director or firm of such
15manufacturer, distributor or importing distributor, furnish,
16give, lend or rent, install, repair or maintain, to or for any
17retail licensee in this State, any signs or inside advertising
18materials except as provided in this Section and Section 6-5.
19With respect to retail licensees, other than any government
20owned or operated auditorium, exhibition hall, recreation
21facility or other similar facility holding a retailer's license
22as described in Section 6-5, a manufacturer, distributor, or
23importing distributor may furnish, give, lend or rent and
24erect, install, repair and maintain to or for any retail
25licensee, for use at any one time in or about or in connection
26with a retail establishment on which the products of the

 

 

HB3237 Enrolled- 72 -LRB099 07830 RPS 27965 b

1manufacturer, distributor or importing distributor are sold,
2the following signs and inside advertising materials as
3authorized in subparts (i), (ii), (iii), and (iv):
4        (i) Permanent outside signs shall be limited to one
5    outside sign, per brand, in place and in use at any one
6    time, costing not more than $893, exclusive of erection,
7    installation, repair and maintenance costs, and permit
8    fees and shall bear only the manufacturer's name, brand
9    name, trade name, slogans, markings, trademark, or other
10    symbols commonly associated with and generally used in
11    identifying the product including, but not limited to,
12    "cold beer", "on tap", "carry out", and "packaged liquor".
13        (ii) Temporary outside signs shall be limited to one
14    temporary outside sign per brand. Examples of temporary
15    outside signs are banners, flags, pennants, streamers, and
16    other items of a temporary and non-permanent nature. Each
17    temporary outside sign must include the manufacturer's
18    name, brand name, trade name, slogans, markings,
19    trademark, or other symbol commonly associated with and
20    generally used in identifying the product. Temporary
21    outside signs may also include, for example, the product,
22    price, packaging, date or dates of a promotion and an
23    announcement of a retail licensee's specific sponsored
24    event, if the temporary outside sign is intended to promote
25    a product, and provided that the announcement of the retail
26    licensee's event and the product promotion are held

 

 

HB3237 Enrolled- 73 -LRB099 07830 RPS 27965 b

1    simultaneously. However, temporary outside signs may not
2    include names, slogans, markings, or logos that relate to
3    the retailer. Nothing in this subpart (ii) shall prohibit a
4    distributor or importing distributor from bearing the cost
5    of creating or printing a temporary outside sign for the
6    retail licensee's specific sponsored event or from bearing
7    the cost of creating or printing a temporary sign for a
8    retail licensee containing, for example, community
9    goodwill expressions, regional sporting event
10    announcements, or seasonal messages, provided that the
11    primary purpose of the temporary outside sign is to
12    highlight, promote, or advertise the product. In addition,
13    temporary outside signs provided by the manufacturer to the
14    distributor or importing distributor may also include, for
15    example, subject to the limitations of this Section,
16    preprinted community goodwill expressions, sporting event
17    announcements, seasonal messages, and manufacturer
18    promotional announcements. However, a distributor or
19    importing distributor shall not bear the cost of such
20    manufacturer preprinted signs.
21        (iii) Permanent inside signs, whether visible from the
22    outside or the inside of the premises, include, but are not
23    limited to: alcohol lists and menus that may include names,
24    slogans, markings, or logos that relate to the retailer;
25    neons; illuminated signs; clocks; table lamps; mirrors;
26    tap handles; decalcomanias; window painting; and window

 

 

HB3237 Enrolled- 74 -LRB099 07830 RPS 27965 b

1    trim. All permanent inside signs in place and in use at any
2    one time shall cost in the aggregate not more than $2000
3    per manufacturer. A permanent inside sign must include the
4    manufacturer's name, brand name, trade name, slogans,
5    markings, trademark, or other symbol commonly associated
6    with and generally used in identifying the product.
7    However, permanent inside signs may not include names,
8    slogans, markings, or logos that relate to the retailer.
9    For the purpose of this subpart (iii), all permanent inside
10    signs may be displayed in an adjacent courtyard or patio
11    commonly referred to as a "beer garden" that is a part of
12    the retailer's licensed premises.
13        (iv) Temporary inside signs shall include, but are not
14    limited to, lighted chalk boards, acrylic table tent
15    beverage or hors d'oeuvre list holders, banners, flags,
16    pennants, streamers, and inside advertising materials such
17    as posters, placards, bowling sheets, table tents, inserts
18    for acrylic table tent beverage or hors d'oeuvre list
19    holders, sports schedules, or similar printed or
20    illustrated materials; however, such items, for example,
21    as coasters, trays, napkins, glassware and cups shall not
22    be deemed to be inside signs or advertising materials and
23    may only be sold to retailers. All temporary inside signs
24    and inside advertising materials in place and in use at any
25    one time shall cost in the aggregate not more than $325 per
26    manufacturer. Nothing in this subpart (iv) prohibits a

 

 

HB3237 Enrolled- 75 -LRB099 07830 RPS 27965 b

1    distributor or importing distributor from paying the cost
2    of printing or creating any temporary inside banner or
3    inserts for acrylic table tent beverage or hors d'oeuvre
4    list holders for a retail licensee, provided that the
5    primary purpose for the banner or insert is to highlight,
6    promote, or advertise the product. For the purpose of this
7    subpart (iv), all temporary inside signs and inside
8    advertising materials may be displayed in an adjacent
9    courtyard or patio commonly referred to as a "beer garden"
10    that is a part of the retailer's licensed premises.
11    A "cost adjustment factor" shall be used to periodically
12update the dollar limitations prescribed in subparts (i),
13(iii), and (iv). The Commission shall establish the adjusted
14dollar limitation on an annual basis beginning in January,
151997. The term "cost adjustment factor" means a percentage
16equal to the change in the Bureau of Labor Statistics Consumer
17Price Index or 5%, whichever is greater. The restrictions
18contained in this Section 6-6 do not apply to signs, or
19promotional or advertising materials furnished by
20manufacturers, distributors or importing distributors to a
21government owned or operated facility holding a retailer's
22license as described in Section 6-5.
23    No distributor or importing distributor shall directly or
24indirectly or through a subsidiary or affiliate, or by any
25officer, director or firm of such manufacturer, distributor or
26importing distributor, furnish, give, lend or rent, install,

 

 

HB3237 Enrolled- 76 -LRB099 07830 RPS 27965 b

1repair or maintain, to or for any retail licensee in this
2State, any signs or inside advertising materials described in
3subparts (i), (ii), (iii), or (iv) of this Section except as
4the agent for or on behalf of a manufacturer, provided that the
5total cost of any signs and inside advertising materials
6including but not limited to labor, erection, installation and
7permit fees shall be paid by the manufacturer whose product or
8products said signs and inside advertising materials advertise
9and except as follows:
10    A distributor or importing distributor may purchase from or
11enter into a written agreement with a manufacturer or a
12manufacturer's designated supplier and such manufacturer or
13the manufacturer's designated supplier may sell or enter into
14an agreement to sell to a distributor or importing distributor
15permitted signs and advertising materials described in
16subparts (ii), (iii), or (iv) of this Section for the purpose
17of furnishing, giving, lending, renting, installing,
18repairing, or maintaining such signs or advertising materials
19to or for any retail licensee in this State. Any purchase by a
20distributor or importing distributor from a manufacturer or a
21manufacturer's designated supplier shall be voluntary and the
22manufacturer may not require the distributor or the importing
23distributor to purchase signs or advertising materials from the
24manufacturer or the manufacturer's designated supplier.
25    A distributor or importing distributor shall be deemed the
26owner of such signs or advertising materials purchased from a

 

 

HB3237 Enrolled- 77 -LRB099 07830 RPS 27965 b

1manufacturer or a manufacturer's designated supplier.
2    The provisions of Public Act 90-373 concerning signs or
3advertising materials delivered by a manufacturer to a
4distributor or importing distributor shall apply only to signs
5or advertising materials delivered on or after August 14, 1997.
6    A manufacturer, distributor, or importing distributor may
7furnish free social media advertising to a retail licensee if
8the social media advertisement does not contain the retail
9price of any alcoholic liquor and the social media
10advertisement complies with any applicable rules or
11regulations issued by the Alcohol and Tobacco Tax and Trade
12Bureau of the United States Department of the Treasury. A
13manufacturer, distributor, or importing distributor may list
14the names of one or more unaffiliated retailers in the
15advertisement of alcoholic liquor through social media.
16Nothing in this Section shall prohibit a retailer from
17communicating with a manufacturer, distributor, or importing
18distributor on social media or sharing media on the social
19media of a manufacturer, distributor, or importing
20distributor. A retailer may request free social media
21advertising from a manufacturer, distributor, or importing
22distributor. Nothing in this Section shall prohibit a
23manufacturer, distributor, or importing distributor from
24sharing, reposting, or otherwise forwarding a social media post
25by a retail licensee, so long as the sharing, reposting, or
26forwarding of the social media post does not contain the retail

 

 

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1price of any alcoholic liquor. No manufacturer, distributor, or
2importing distributor shall pay or reimburse a retailer,
3directly or indirectly, for any social media advertising
4services, except as specifically permitted in this Act. No
5retailer shall accept any payment or reimbursement, directly or
6indirectly, for any social media advertising services offered
7by a manufacturer, distributor, or importing distributor,
8except as specifically permitted in this Act. For the purposes
9of this Section, "social media" means a service, platform, or
10site where users communicate with one another and share media,
11such as pictures, videos, music, and blogs, with other users
12free of charge.
13    No person engaged in the business of manufacturing,
14importing or distributing alcoholic liquors shall, directly or
15indirectly, pay for, or advance, furnish, or lend money for the
16payment of any license for another. Any licensee who shall
17permit or assent, or be a party in any way to any violation or
18infringement of the provisions of this Section shall be deemed
19guilty of a violation of this Act, and any money loaned
20contrary to a provision of this Act shall not be recovered
21back, or any note, mortgage or other evidence of indebtedness,
22or security, or any lease or contract obtained or made contrary
23to this Act shall be unenforceable and void.
24    This Section shall not apply to airplane licensees
25exercising powers provided in paragraph (i) of Section 5-1 of
26this Act.

 

 

HB3237 Enrolled- 79 -LRB099 07830 RPS 27965 b

1(Source: P.A. 98-756, eff. 7-16-14.)
 
2    (235 ILCS 5/6-36)
3    Sec. 6-36. Homemade brewed beverages.
4    (a) No license or permit is required under this Act for the
5making of homemade brewed beverages or for the possession,
6transportation, or storage of homemade brewed beverages by any
7person 21 years of age or older, if all of the following apply:
8        (1) the person who makes the homemade brewed beverages
9    receives no compensation;
10        (2) the homemade brewed beverages are is not sold or
11    offered for sale; and
12        (3) the total quantity of homemade brewed beverages
13    made, in a calendar year, by the person does not exceed 100
14    gallons if the household has only one person 21 years of
15    age or older or 200 gallons if the household has 2 or more
16    persons 21 years of age or older.
17    (b) A person who makes, possesses, transports, or stores
18homemade brewed beverages in compliance with the limitations
19specified in subsection (a) is not a brewer, class 1 craft
20brewer, class 2 brewer, wholesaler, retailer, or a manufacturer
21of beer for the purposes of this Act.
22    (c) Homemade brewed beverages made in compliance with the
23limitations specified in subsection (a) may be consumed by the
24person who made it and his or her family, neighbors, and
25friends at any private residence or other private location

 

 

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1where the possession and consumption of alcohol are is
2permissible under this Act, local ordinances, and other
3applicable law, provided that the homemade brewed beverages are
4not made available for consumption by the general public.
5    (d) Homemade brewed beverages made in compliance with the
6limitations specified in subsection (a) may be used for
7purposes of a public exhibition, demonstration, tasting, or
8sampling with sampling sizes as authorized by Section 6-31, if
9the event is held at a private residence or at a location other
10than a retail licensed premises. If the public event is not
11held at a private residence, the event organizer shall obtain a
12homebrewer special event permit for each location, and is
13subject to the provisions in subsection (a) of Section 6-21.
14Homemade brewed beverages used for purposes described in this
15subsection (d), including the submission or consumption of the
16homemade brewed beverages, are not considered sold or offered
17for sale under this Act. A public exhibition, demonstration,
18tasting, or sampling with sampling sizes as authorized by
19Section 6-31 held by a licensee on a location other than a
20retail licensed premises may require an admission charge to the
21event, but no separate or additional fee may be charged for the
22consumption of a person's homemade brewed beverages at the
23public exhibition, demonstration, tasting, or sampling with
24sampling sizes as authorized by Section 6-31. Event admission
25charges that are collected may be partially used to provide
26prizes to makers of homemade brewed beverages, but the

 

 

HB3237 Enrolled- 81 -LRB099 07830 RPS 27965 b

1admission charges may not be divided in any fashion among the
2makers of the homemade brewed beverages who participate in the
3event. Homemade brewed beverages used for purposes described in
4this subsection (d) are not considered sold or offered for sale
5under this Act if a maker of homemade brewed beverages receives
6free event admission or discounted event admission in return
7for the maker's donation of the homemade brewed beverages to an
8event specified in this subsection (d) that collects event
9admission charges; free admission or discounted admission to
10the event is not considered compensation under this Act. No
11admission fee and no charge for the consumption of a person's
12homemade brewed beverage may be collected if the public
13exhibition, demonstration, tasting, or sampling with sampling
14sizes as authorized by Section 6-31 is held at a private
15residence.
16    (e) A person who is not a licensee under this Act may at a
17private residence, and a person who is a licensee under this
18Act may on the licensed premises, conduct, sponsor, or host a
19contest, competition, or other event for the exhibition,
20demonstration, judging, tasting, or sampling of homemade
21brewed beverages made in compliance with the limitations
22specified in subsection (a), if the person does not sell the
23homemade brewed beverages and, unless the person is the brewer
24of the homemade brewed beverages, does not acquire any
25ownership interest in the homemade brewed beverages. If the
26contest, competition, exhibition, demonstration, or judging is

 

 

HB3237 Enrolled- 82 -LRB099 07830 RPS 27965 b

1not held at a private residence, the consumption of the
2homemade brewed beverages is limited to qualified judges and
3stewards as defined by a national or international beer judging
4program, who are identified by the event organizer in advance
5of the contest, competition, exhibition, demonstration, or
6judging. Homemade brewed beverages used for the purposes
7described in this subsection (e), including the submission or
8consumption of the homemade brewed beverages, are not
9considered sold or offered for sale under this Act and any
10prize awarded at a contest or competition or as a result of an
11exhibition, demonstration, or judging is not considered
12compensation under this Act. An exhibition, demonstration,
13judging, contest, or competition held by a licensee on a
14licensed premises may require an admission charge to the event,
15but no separate or additional fee may be charged for the
16consumption of a person's homemade brewed beverage at the
17exhibition, demonstration, judging, contest, or competition. A
18portion of event admission charges that are collected may be
19used to provide prizes to makers of homemade brewed beverages,
20but the admission charges may not be divided in any fashion
21among the makers of the homemade brewed beverages who
22participate in the event. Homemade brewed beverages used for
23purposes described in this subsection (e) are not considered
24sold or offered for sale under this Act if a maker of homemade
25brewed beverages receives free event admission or discounted
26event admission in return for the maker's donation of the

 

 

HB3237 Enrolled- 83 -LRB099 07830 RPS 27965 b

1homemade brewed beverages to an event specified in this
2subsection (e) that collects event admission charges; free
3admission or discounted admission to the event is not
4considered compensation under this Act. No admission fee and no
5charge for the consumption of a person's homemade brewed
6beverage may be charged if the exhibition, demonstration,
7judging, contest, or competition is held at a private
8residence. The fact that a person is acting in a manner
9authorized by this Section is not, by itself, sufficient to
10constitute a public nuisance under Section 10-7 of this Act. If
11the contest, competition, or other event is held on licensed
12premises, the licensee may allow the homemade brewed beverages
13to be stored on the premises if the homemade brewed beverages
14are clearly identified and , kept separate from any alcohol
15beverages owned by the licensee. If the contest, competition,
16or other event is held on licensed premises, other provisions
17of this Act not inconsistent with this Section apply.
18    (f) A commercial enterprise engaged primarily in selling
19supplies and equipment to the public for use by homebrewers may
20manufacture homemade brewed beverages for the purpose of
21tasting the homemade brewed beverages at the location of the
22commercial enterprise, provided that the homemade brewed
23beverages are not sold or offered for sale. Homemade brewed
24beverages provided at a commercial enterprise for tasting under
25this subsection (f) shall be in compliance with Sections 6-16,
266-21, and 6-31 of this Act. A commercial enterprise engaged

 

 

HB3237 Enrolled- 84 -LRB099 07830 RPS 27965 b

1solely in selling supplies and equipment for use by homebrewers
2shall not be required to secure a license under this Act,
3however, such commercial enterprise shall secure liquor
4liability insurance coverage in an amount at least equal to the
5maximum liability amounts set forth in subsection (a) of
6Section 6-21 of this Act.
7    (g) Homemade brewed beverages are not subject to Section
88-1 of this Act.
9(Source: P.A. 98-55, eff. 7-5-13; revised 11-26-14.)
 
10    Section 95. No acceleration or delay. Where this Act makes
11changes in a statute that is represented in this Act by text
12that is not yet or no longer in effect (for example, a Section
13represented by multiple versions), the use of that text does
14not accelerate or delay the taking effect of (i) the changes
15made by this Act or (ii) provisions derived from any other
16Public Act.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.