State of Illinois
90th General Assembly
Legislation

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90_SB0407

      235 ILCS 5/4-1            from Ch. 43, par. 110
      235 ILCS 5/5-1            from Ch. 43, par. 115
      235 ILCS 5/6-31 new
          Amends the Liquor Control Act of 1934.  Provides  that  a
      retailer's licensee who regularly and primarily takes orders,
      solicits  sales,  or  makes sales of alcoholic liquor through
      telephone or mail orders and delivers that  alcoholic  liquor
      to a location outside the jurisdiction of the local licensing
      authority  shall  maintain  records and file reports with the
      State Commission.  Effective immediately.
                                                     LRB9002501LDdv
                                               LRB9002501LDdv
 1        AN ACT to  amend  the  Liquor  Control  Act  of  1934  by
 2    changing Sections 4-1 and 5-1 and adding Section 6-31.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Liquor Control Act of 1934 is amended  by
 6    changing  Sections  4-1  and  5-1  and adding Section 6-31 as
 7    follows:
 8        (235 ILCS 5/4-1) (from Ch. 43, par. 110)
 9        Sec. 4-1.  In every city, village or  incorporated  town,
10    the  city  council or president and board of trustees, and in
11    counties in respect of territory outside the  limits  of  any
12    such  city,  village  or  incorporated  town the county board
13    shall have the power by general ordinance  or  resolution  to
14    determine  the  number,  kind and classification of licenses,
15    for sale at retail of alcoholic liquor not inconsistent  with
16    this Act and the amount of the local licensee fees to be paid
17    for  the  various  kinds  of  licenses  to be issued in their
18    political subdivision, except those issued  to  the  specific
19    non-beverage  users exempt from payment of license fees under
20    Section 5-3 which shall be  issued  without  payment  of  any
21    local  license  fees,  and the manner of distribution of such
22    fees after their collection;  to  regulate  or  prohibit  the
23    presence  of  persons  under the age of 21 on the premises of
24    licensed  retail  establishments   of   various   kinds   and
25    classifications  where  alcoholic  liquor  is  drawn, poured,
26    mixed or otherwise served for consumption on the premises; to
27    prohibit any minor  from  drawing,  pouring,  or  mixing  any
28    alcoholic  liquor  as an employee of any retail licensee; and
29    to prohibit any minor from at any time attending any bar  and
30    from  drawing,  pouring or mixing any alcoholic liquor in any
31    licensed retail  premises;  and  to  establish  such  further
                            -2-                LRB9002501LDdv
 1    regulations   and  restrictions  upon  the  issuance  of  and
 2    operations under local licenses not inconsistent with law  as
 3    the  public  good and convenience may require; and to provide
 4    penalties for the violation of regulations and  restrictions,
 5    including  those made by county boards, relative to operation
 6    under local licenses; provided, however, that in the exercise
 7    of any of the powers granted in this Section, the issuance of
 8    such licenses shall not  be  prohibited  except  for  reasons
 9    specifically  enumerated  in  Sections  6-2,  6-11, 6-12, and
10    6-25, and 6-31 of this Act.
11        However, in any municipality with a population  exceeding
12    1,000,000  that has adopted the form of government authorized
13    under "An Act concerning cities, villages,  and  incorporated
14    towns,  and  to  repeal  certain Acts herein named", approved
15    August 15, 1941, as amended, no person shall be  granted  any
16    license  or  privilege  to sell alcoholic liquors between the
17    hours of two o'clock a.m. and seven o'clock a.m. on week days
18    nor between the  hours  of  three  o'clock  a.m.  and  twelve
19    o'clock noon on Sundays unless such person has given at least
20    14  days  prior written notice to the alderman of the ward in
21    which such person's licensed premises are located stating his
22    intention to make application for such license  or  privilege
23    and unless evidence confirming service of such written notice
24    is  included  in  such  application. Any license or privilege
25    granted in violation of this  paragraph  shall  be  null  and
26    void.
27    (Source: P.A. 85-156.)
28        (235 ILCS 5/5-1) (from Ch. 43, par. 115)
29        Sec. 5-1.  Licenses issued by the Illinois Liquor Control
30    Commission shall be of the following classes:
31        (a)  Manufacturer's  license  - Class 1. Distiller, Class
32    2.  Rectifier, Class 3.  Brewer, Class 4.  First  Class  Wine
33    Manufacturer,   Class  5.   Second  Class  Wine Manufacturer,
                            -3-                LRB9002501LDdv
 1    Class  6.  First  Class  Winemaker,  Class  7.  Second  Class
 2    Winemaker, Class 8.  Limited Wine Manufacturer,
 3        (b)  Distributor's license,
 4        (c)  Importing Distributor's license,
 5        (d)  Retailer's license,
 6        (e)  Special Event Retailer's license (not-for-profit),
 7        (f)  Railroad license,
 8        (g)  Boat license,
 9        (h)  Non-Beverage User's license,
10        (i)  Wine-maker's retail license,
11        (j)  Airplane license,
12        (k)  Foreign importer's license,
13        (l)  Broker's license,
14        (m)  Non-resident dealer's license,
15        (n)  Brew Pub license,
16        (o)  Auction liquor license,
17        (p)  Caterer retailer license,
18        (q)  Special use permit license.
19        Nothing  in  this  provision,  nor  in   any   subsequent
20    provision  of  this Act shall be interpreted as forbidding an
21    individual or firm from concurrently obtaining and holding  a
22    Winemaker's and a Wine manufacturer's license.
23        (a)  A    manufacturer's    license   shall   allow   the
24    manufacture, importation in bulk, storage,  distribution  and
25    sale of alcoholic liquor to persons without the State, as may
26    be  permitted  by  law  and  to  licensees  in  this State as
27    follows:
28        Class 1. A Distiller may make  sales  and  deliveries  of
29    alcoholic   liquor   to   distillers,  rectifiers,  importing
30    distributors, distributors and non-beverage users and  to  no
31    other licensees.
32        Class  2. A Rectifier, who is not a distiller, as defined
33    herein, may make sales and deliveries of alcoholic liquor  to
34    rectifiers,  importing  distributors, distributors, retailers
                            -4-                LRB9002501LDdv
 1    and non-beverage users and to no other licensees.
 2        Class 3. A Brewer may make sales and deliveries  of  beer
 3    to    importing    distributors,    distributors,    and   to
 4    non-licensees, and to retailers provided the  brewer  obtains
 5    an  importing  distributor's license or distributor's license
 6    in accordance with the provisions of this Act.
 7        Class 4. A first class wine-manufacturer may  make  sales
 8    and  deliveries  of between 40,000 and 50,000 gallons of wine
 9    to manufacturers, importing  distributors  and  distributors,
10    and to no other licensees.
11        Class  5. A second class Wine manufacturer may make sales
12    and deliveries  of  more  than  50,000  gallons  of  wine  to
13    manufacturers, importing distributors and distributors and to
14    no other licensees.
15        Class  6.  A first-class wine-maker's license shall allow
16    the manufacture of less than 20,000 gallons of wine per year,
17    and the storage and sale of such  wine  to  distributors  and
18    retailers  in  the State and to persons without the State, as
19    may be permitted by law.
20        Class 7. A second-class wine-maker's license shall  allow
21    the manufacture of up to 50,000 gallons of wine per year, and
22    the  storage  and  sale  of such wine to distributors in this
23    State and to persons without the State, as may  be  permitted
24    by  law.  A second-class wine-maker's license shall allow the
25    sale of no more than 10,000 gallons of  the  licensee's  wine
26    directly to retailers.
27        Class  8.  A limited wine-manufacturer may make sales and
28    deliveries not to exceed 40,000 gallons of wine per  year  to
29    distributors,  and  to  non-licensees  in accordance with the
30    provisions of this Act.
31        (a-1)  A manufacturer which is licensed in this State  to
32    make  sales  or  deliveries  of  alcoholic  liquor  and which
33    enlists agents, representatives, or individuals acting on its
34    behalf who  contact  licensed  retailers  on  a  regular  and
                            -5-                LRB9002501LDdv
 1    continual  basis  in  this  State must register those agents,
 2    representatives, or persons acting on  its  behalf  with  the
 3    State Commission.
 4        Registration   of  agents,  representatives,  or  persons
 5    acting on behalf of a manufacturer is fulfilled by submitting
 6    a form to the Commission.  The form shall be developed by the
 7    Commission and shall include the  name  and  address  of  the
 8    applicant, the name and address of the manufacturer he or she
 9    represents,  the  territory  or  areas assigned to sell to or
10    discuss pricing terms of  alcoholic  liquor,  and  any  other
11    questions  deemed  appropriate and necessary.  All statements
12    in the forms required to be made by law or by rule  shall  be
13    deemed  material,  and any person who knowingly misstates any
14    material fact under oath in an application  is  guilty  of  a
15    Class   B   misdemeanor.    Fraud,  misrepresentation,  false
16    statements, misleading statements, evasions,  or  suppression
17    of  material  facts  in  the  securing  of a registration are
18    grounds for suspension or revocation of the registration.
19        (b)  A distributor's license shall  allow  the  wholesale
20    purchase  and  storage  of  alcoholic  liquors  and  sale  of
21    alcoholic  liquors  to licensees in this State and to persons
22    without the State, as may be permitted by law.
23        (c)  An importing distributor's license may be issued  to
24    and  held  by  those only who are duly licensed distributors,
25    upon  the  filing  of  an  application  by  a  duly  licensed
26    distributor, with the Commission and  the  Commission  shall,
27    without  the  payment  of  any  fee,  immediately  issue such
28    importing distributor's license to the applicant, which shall
29    allow the importation of alcoholic  liquor  by  the  licensee
30    into  this  State from any point in the United States outside
31    this State, and the purchase of alcoholic liquor in  barrels,
32    casks  or  other  bulk  containers  and  the bottling of such
33    alcoholic liquors before resale thereof, but all  bottles  or
34    containers  so  filled  shall be sealed, labeled, stamped and
                            -6-                LRB9002501LDdv
 1    otherwise made to  comply  with  all  provisions,  rules  and
 2    regulations  governing  manufacturers  in the preparation and
 3    bottling of alcoholic liquors.  The  importing  distributor's
 4    license  shall  permit  such  licensee  to purchase alcoholic
 5    liquor  from  Illinois  licensed  non-resident  dealers   and
 6    foreign importers only.
 7        (d)  A  retailer's  license  shall  allow the licensee to
 8    sell and offer for sale  at  retail,  only  in  the  premises
 9    specified  in  such  license,  alcoholic  liquor  for  use or
10    consumption, but not for resale in any  form:  Provided  that
11    any retail license issued to a manufacturer shall only permit
12    such  manufacturer  to  sell  beer  at retail on the premises
13    actually occupied by such manufacturer.
14        After January  1,  1995  there  shall  be  2  classes  of
15    licenses issued under a retailers license.
16             (1)  A  "retailers  on  premise consumption license"
17        shall allow the licensee to sell and offer  for  sale  at
18        retail,  only  on  the premises specified in the license,
19        alcoholic liquor for use or consumption on  the  premises
20        or  on  and  off  the premises, but not for resale in any
21        form, provided that if the retail licensee regularly  and
22        primarily  makes sales and deliveries of alcoholic liquor
23        pursuant to telephonic or mail requests  or  orders,  the
24        retail  licensee  shall  comply  with  the  provisions of
25        Section 6-31.
26             (2)  An "off premise sale license" shall  allow  the
27        licensee  to sell, or offer for sale at retail, alcoholic
28        liquor intended only for off premise consumption and  not
29        for  resale  in  any  form,  provided  that if the retail
30        licensee regularly and primarily takes  orders,  solicits
31        sales,  or  makes  sales  of alcoholic liquor pursuant to
32        telephonic or mail order requests,  the  retail  licensee
33        shall comply with the provisions of Section 6-31.
34        Notwithstanding  any  other  provision of this subsection
                            -7-                LRB9002501LDdv
 1    (d), a retail  licensee  may  sell  alcoholic  liquors  to  a
 2    special  event  retailer  licensee  for  resale to the extent
 3    permitted under subsection (e).
 4        (e)  A special event retailer's license  (not-for-profit)
 5    shall  permit the licensee to purchase alcoholic liquors from
 6    an  Illinois  licensed   distributor  (unless  the   licensee
 7    purchases less than $500 of alcoholic liquors for the special
 8    event,  in which case the licensee may purchase the alcoholic
 9    liquors  from  a  licensed  retailer)  and  shall  allow  the
10    licensee to sell and offer for  sale,  at  retail,  alcoholic
11    liquors  for  use  or  consumption, but not for resale in any
12    form and only at the  location  and  on  the  specific  dates
13    designated   for  the  special  event  in  the  license.   An
14    applicant for a special  event  retailer  license  must  also
15    submit  with  the application proof satisfactory to the State
16    Commission  that  the  applicant  will  provide   dram   shop
17    liability  insurance  in  the  maximum  limits and have local
18    authority approval.
19        (f)  A railroad license  shall  permit  the  licensee  to
20    import  alcoholic  liquors  into this State from any point in
21    the United States  outside  this  State  and  to  store  such
22    alcoholic  liquors in this State; to make wholesale purchases
23    of alcoholic liquors  directly  from  manufacturers,  foreign
24    importers,   distributors  and  importing  distributors  from
25    within or outside this State; and  to  store  such  alcoholic
26    liquors  in this State; provided that the above powers may be
27    exercised only in connection with the  importation,  purchase
28    or  storage of alcoholic liquors to be sold or dispensed on a
29    club, buffet, lounge or dining car operated on  an  electric,
30    gas  or  steam  railway  in this State; and provided further,
31    that railroad licensees exercising the above powers shall  be
32    subject  to  all  provisions  of  Article VIII of this Act as
33    applied to importing distributors.  A railroad license  shall
34    also  permit  the  licensee  to  sell  or  dispense alcoholic
                            -8-                LRB9002501LDdv
 1    liquors on any club, buffet, lounge or dining car operated on
 2    an electric, gas or steam railway  regularly  operated  by  a
 3    common  carrier  in this State, but shall not permit the sale
 4    for resale of any alcoholic liquors to  any  licensee  within
 5    this  State.   A  license  shall  be obtained for each car in
 6    which such sales are made.
 7        (g)  A boat license shall allow  the  sale  of  alcoholic
 8    liquor  in individual drinks, on any passenger boat regularly
 9    operated as a common carrier  on  navigable  waters  in  this
10    State,   which   boat  maintains  a  public  dining  room  or
11    restaurant thereon.
12        (h)  A  non-beverage  user's  license  shall  allow   the
13    licensee   to  purchase  alcoholic  liquor  from  a  licensed
14    manufacturer or importing distributor, without the imposition
15    of any tax upon the business of such licensed manufacturer or
16    importing distributor as to such alcoholic liquor to be  used
17    by  such  licensee  solely  for the non-beverage purposes set
18    forth in subsection (a) of Section 8-1 of this Act, and  such
19    licenses shall be divided and classified and shall permit the
20    purchase, possession and use of limited and stated quantities
21    of alcoholic liquor as follows:
22    Class 1, not to exceed .......................    500 gallons
23    Class 2, not to exceed .......................  1,000 gallons
24    Class 3, not to exceed .......................  5,000 gallons
25    Class 4, not to exceed ....................... 10,000 gallons
26    Class 5, not to exceed ....................... 50,000 gallons
27        (i)  A   wine-maker's  retail  license  shall  allow  the
28    licensee to sell and offer for sale at retail in the premises
29    specified in such license not more  than  50,000  gallons  of
30    wine  per  year for use or consumption, but not for resale in
31    any form; this license shall  be  issued  only  to  a  person
32    licensed as a first-class or second-class wine-maker.
33        (j)  An  airplane  license  shall  permit the licensee to
34    import alcoholic liquors into this State from  any  point  in
                            -9-                LRB9002501LDdv
 1    the  United  States  outside  this  State  and  to store such
 2    alcoholic liquors in this State; to make wholesale  purchases
 3    of  alcoholic  liquors  directly  from manufacturers, foreign
 4    importers,  distributors  and  importing  distributors   from
 5    within  or  outside  this  State; and to store such alcoholic
 6    liquors in this State; provided that the above powers may  be
 7    exercised  only  in connection with the importation, purchase
 8    or storage of alcoholic liquors to be sold or dispensed on an
 9    airplane;  and  provided  further,  that  airplane  licensees
10    exercising  the  above  powers  shall  be  subject   to   all
11    provisions  of  Article  VIII  of  this  Act  as  applied  to
12    importing  distributors.   An  airplane  licensee  shall also
13    permit the sale or dispensing of  alcoholic  liquors  on  any
14    passenger  airplane regularly operated by a common carrier in
15    this State, but shall not permit the sale for resale  of  any
16    alcoholic  liquors  to  any  licensee  within  this State.  A
17    single airplane license  shall  be  required  of  an  airline
18    company  if  liquor  service is provided on board aircraft in
19    this State.  The annual fee for  such  license  shall  be  as
20    determined in Section 5-3.
21        (k)  A  foreign  importer's  license  shall  permit  such
22    licensee  to purchase alcoholic liquor from Illinois licensed
23    non-resident dealers only, and  to  import  alcoholic  liquor
24    other  than  in bulk from any point outside the United States
25    and to  sell  such  alcoholic  liquor  to  Illinois  licensed
26    importing distributors and to no one else in Illinois.
27        (l)  A  broker's license shall be required of all brokers
28    who solicit orders for, offer to  sell  or  offer  to  supply
29    alcoholic  liquor  to  retailers in the State of Illinois, or
30    who offer to retailers to ship or cause to be shipped  or  to
31    make   contact   with   distillers,  rectifiers,  brewers  or
32    manufacturers or any other party within or without the  State
33    of  Illinois  in order that alcoholic liquors be shipped to a
34    distributor,  importing  distributor  or  foreign   importer,
                            -10-               LRB9002501LDdv
 1    whether  such  solicitation or offer is consummated within or
 2    without the State of Illinois.
 3        No holder of a retailer's license issued by the  Illinois
 4    Liquor  Control  Commission  shall  purchase  or  receive any
 5    alcoholic liquor,  the  order  for  which  was  solicited  or
 6    offered  for  sale  to  such  retailer by a broker unless the
 7    broker is the holder of a valid broker's license.
 8        The broker shall, upon the acceptance by  a  retailer  of
 9    the  broker's  solicitation  of  an order or offer to sell or
10    supply  or  deliver  or  have  delivered  alcoholic  liquors,
11    promptly forward to the Illinois Liquor Control Commission  a
12    notification   of  said  transaction  in  such  form  as  the
13    Commission may by regulations prescribe.
14        Such license shall not entitle the holder to buy or  sell
15    any  alcoholic  liquors  for  his  own  account or to take or
16    deliver title to such alcoholic liquors.
17        This  subsection  shall  not   apply   to   distributors,
18    employees of distributors, or employees of a manufacturer who
19    has  registered the trademark, brand or name of the alcoholic
20    liquor pursuant to Section 6-9 of this Act, and who regularly
21    sells such alcoholic liquor in the State of Illinois only  to
22    its registrants thereunder.
23        Any   agent,   representative,   or   person  subject  to
24    registration pursuant to subsection  (a-1)  of  this  Section
25    shall not be eligible to receive a broker's license.
26        (m)  A  non-resident  dealer's  license shall permit such
27    licensee to ship into and  warehouse  alcoholic  liquor  into
28    this  State from any point outside of this State, and to sell
29    such alcoholic liquor to Illinois licensed foreign  importers
30    and  importing distributors and to no one else in this State;
31    provided that said non-resident dealer  shall  register  with
32    the  Illinois  Liquor Control Commission each and every brand
33    of alcoholic liquor which it proposes  to  sell  to  Illinois
34    licensees  during  the  license  period; and further provided
                            -11-               LRB9002501LDdv
 1    that it shall comply with all of the  provisions  of  Section
 2    6-9  hereof  with  respect  to  registration of such Illinois
 3    licensees as may be granted the right to sell such brands  at
 4    wholesale.
 5        (n)  A  brew  pub  license  shall  allow  the licensee to
 6    manufacture beer  only  on  the  premises  specified  in  the
 7    license,  to  make  sales  of  the  beer  manufactured on the
 8    premises to  importing  distributors,  distributors,  and  to
 9    non-licensees for use and consumption, to store the beer upon
10    the premises, and to sell and offer for sale at retail.
11        (o)  A caterer retailer license shall allow the holder to
12    serve  alcoholic  liquors  as  an  incidental  part of a food
13    service that serves prepared meals which excludes the serving
14    of snacks as the primary meal, either on or off-site  whether
15    licensed or unlicensed.
16        (p)  An  auction  liquor license shall allow the licensee
17    to sell and offer for sale at auction wine  and  spirits  for
18    use  or  consumption,  or  for  resale  by an Illinois liquor
19    licensee in accordance  with  provisions  of  this  Act.   An
20    auction liquor license will be issued to a person and it will
21    permit  the  auction  liquor  licensee  to  hold  the auction
22    anywhere in the State.  An auction  liquor  license  must  be
23    obtained  for each auction at least 14 days in advance of the
24    auction date.
25        (q)  A special use permit license shall allow an Illinois
26    licensed retailer to transfer  a  portion  of  its  alcoholic
27    liquor  inventory  from  its  retail licensed premises to the
28    premises specified in the license hereby created, and to sell
29    or offer for sale at retail, only in the  premises  specified
30    in  the  license  hereby  created,  the transferred alcoholic
31    liquor for use or consumption, but  not  for  resale  in  any
32    form.   A  special  use permit license may be granted for the
33    following time periods: one day or less; 2 or more days to  a
34    maximum  of  15 days per location in any 12 month period.  An
                            -12-               LRB9002501LDdv
 1    applicant for the special use permit license must also submit
 2    with  the  application  proof  satisfactory  to   the   State
 3    Commission   that   the  applicant  will  provide  dram  shop
 4    liability insurance to the  maximum  limits  and  have  local
 5    authority approval.
 6    (Source:  P.A.  88-91;  88-303;  88-535; 88-645, eff. 9-9-94;
 7    89-45,  eff.  6-23-95;  89-218,  eff.  1-1-96;  89-626,  eff.
 8    8-9-96.)
 9        (235 ILCS 5/6-31 new)
10        Sec. 6-31.  A licensee who holds a retail license  issued
11    under  Section 5-1(d) of this Act who regularly and primarily
12    takes orders, solicits sales, or  makes  sales  of  alcoholic
13    liquor  through  telephonic  or mail orders and delivers that
14    alcoholic  liquor  from  the  licensed  premises  by   agent,
15    courier,  common  carrier,  or mail to a location outside the
16    jurisdiction of the local licensing authority shall  maintain
17    records  and  file  reports  with  the State Commission.  The
18    licensee  shall  maintain  a   ledger   listing   the   date,
19    description   of   alcoholic  liquor,  volume,  name  of  the
20    consumer,  address  where  delivered,  and  by  what   method
21    delivery  was made, identifying by name the person, agent, or
22    courier that made the delivery or, if by mail, the  name  and
23    address  of the addressee.  The licensee shall report monthly
24    on forms prescribed by the State Commission  the  information
25    required by this Section.
26        Section  99.  Effective date.  This Act takes effect upon
27    becoming law.

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