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92_HB1001eng HB1001 Engrossed LRB9201634LDprB 1 AN ACT in relation to alcoholic liquor. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Liquor Control Act of 1934 is amended by 5 changing Sections 5-1 and 6-9 as follows: 6 (235 ILCS 5/5-1) (from Ch. 43, par. 115) 7 Sec. 5-1. Licenses issued by the Illinois Liquor Control 8 Commission shall be of the following classes: 9 (a) Manufacturer's license - Class 1. Distiller, Class 10 2. Rectifier, Class 3. Brewer, Class 4. First Class Wine 11 Manufacturer, Class 5. Second Class Wine Manufacturer, 12 Class 6. First Class Winemaker, Class 7. Second Class 13 Winemaker, Class 8. Limited Wine Manufacturer, 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 retail license, 22 (j) Airplane license, 23 (k) Foreign importer's license, 24 (l) Broker's license, 25 (m) Non-resident dealer's license, 26 (n) Brew Pub license, 27 (o) Auction liquor license, 28 (p) Caterer retailer license, 29 (q) Special use permit license. 30 Nothing in this provision, nor in any subsequent 31 provision of this Act shall be interpreted as forbidding an HB1001 Engrossed -2- LRB9201634LDprB 1 individual or firm from concurrently obtaining and holding a 2 Winemaker's and a Wine manufacturer's license. 3 (a) A manufacturer's license shall allow the 4 manufacture, importation in bulk, storage, distribution and 5 sale of alcoholic liquor to persons without the State, as may 6 be permitted by law and to licensees in this State as 7 follows: 8 Class 1. A Distiller may make sales and deliveries of 9 alcoholic liquor to distillers, rectifiers, importing 10 distributors, distributors and non-beverage users and to no 11 other licensees. 12 Class 2. A Rectifier, who is not a distiller, as defined 13 herein, may make sales and deliveries of alcoholic liquor to 14 rectifiers, importing distributors, distributors, retailers 15 and non-beverage users and to no other licensees. 16 Class 3. A Brewer may make sales and deliveries of beer 17 to importing distributors, distributors, and to 18 non-licensees, and to retailers provided the brewer obtains 19 an importing distributor's license or distributor's license 20 in accordance with the provisions of this Act. 21 Class 4. A first class wine-manufacturer may make sales 22 and deliveries of between 40,000 and 50,000 gallons of wine 23 to manufacturers, importing distributors and distributors, 24 and to no other licensees. 25 Class 5. A second class Wine manufacturer may make sales 26 and deliveries of more than 50,000 gallons of wine to 27 manufacturers, importing distributors and distributors and to 28 no other licensees. 29 Class 6. A first-class wine-maker's license shall allow 30 the manufacture of less than 20,000 gallons of wine per year, 31 and the storage and sale of such wine to distributors and 32 retailers in the State and to persons without the State, as 33 may be permitted by law. 34 Class 7. A second-class wine-maker's license shall allow HB1001 Engrossed -3- LRB9201634LDprB 1 the manufacture of up to 50,000 gallons of wine per year, and 2 the storage and sale of such wine to distributors in this 3 State and to persons without the State, as may be permitted 4 by law. A second-class wine-maker's license shall allow the 5 sale of no more than 10,000 gallons of the licensee's wine 6 directly to retailers. 7 Class 8. A limited wine-manufacturer may make sales and 8 deliveries not to exceed 40,000 gallons of wine per year to 9 distributors, and to non-licensees in accordance with the 10 provisions of this Act. 11 (a-1) A manufacturer which is licensed in this State to 12 make sales or deliveries of alcoholic liquor and which 13 enlists agents, representatives, or individuals acting on its 14 behalf who contact licensed retailers on a regular and 15 continual basis in this State must register those agents, 16 representatives, or persons acting on its behalf with the 17 State Commission. 18 Registration of agents, representatives, or persons 19 acting on behalf of a manufacturer is fulfilled by submitting 20 a form to the Commission. The form shall be developed by the 21 Commission and shall include the name and address of the 22 applicant, the name and address of the manufacturer he or she 23 represents, the territory or areas assigned to sell to or 24 discuss pricing terms of alcoholic liquor, and any other 25 questions deemed appropriate and necessary. All statements 26 in the forms required to be made by law or by rule shall be 27 deemed material, and any person who knowingly misstates any 28 material fact under oath in an application is guilty of a 29 Class B misdemeanor. Fraud, misrepresentation, false 30 statements, misleading statements, evasions, or suppression 31 of material facts in the securing of a registration are 32 grounds for suspension or revocation of the registration. 33 (b) A distributor's license shall allow the wholesale 34 purchase and storage of alcoholic liquors and sale of HB1001 Engrossed -4- LRB9201634LDprB 1 alcoholic liquors to licensees in this State and to persons 2 without the State, as may be permitted by law. 3 (c) An importing distributor's license may be issued to 4 and held by those only who are duly licensed distributors, 5 upon the filing of an application by a duly licensed 6 distributor, with the Commission and the Commission shall, 7 without the payment of any fee, immediately issue such 8 importing distributor's license to the applicant, which shall 9 allow the importation of alcoholic liquor by the licensee 10 into this State from any point in the United States outside 11 this State, and the purchase of alcoholic liquor in barrels, 12 casks or other bulk containers and the bottling of such 13 alcoholic liquors before resale thereof, but all bottles or 14 containers so filled shall be sealed, labeled, stamped and 15 otherwise made to comply with all provisions, rules and 16 regulations governing manufacturers in the preparation and 17 bottling of alcoholic liquors. The importing distributor's 18 license shall permit such licensee to purchase alcoholic 19 liquor from Illinois licensed non-resident dealers and 20 foreign importers only. 21 (d) A retailer's license shall allow the licensee to 22 sell and offer for sale at retail, only in the premises 23 specified in such license, alcoholic liquor for use or 24 consumption, but not for resale in any form: Provided that 25 any retail license issued to a manufacturer shall only permit 26 such manufacturer to sell beer at retail on the premises 27 actually occupied by such manufacturer. 28 After January 1, 1995 there shall be 2 classes of 29 licenses issued under a retailers license. 30 (1) A "retailers on premise consumption license" 31 shall allow the licensee to sell and offer for sale at 32 retail, only on the premises specified in the license, 33 alcoholic liquor for use or consumption on the premises 34 or on and off the premises, but not for resale in any HB1001 Engrossed -5- LRB9201634LDprB 1 form. 2 (2) An "off premise sale license" shall allow the 3 licensee to sell, or offer for sale at retail, alcoholic 4 liquor intended only for off premise consumption and not 5 for resale in any form. 6 Notwithstanding any other provision of this subsection 7 (d), a retail licensee may sell alcoholic liquors to a 8 special event retailer licensee for resale to the extent 9 permitted under subsection (e). 10 (e) A special event retailer's license (not-for-profit) 11 shall permit the licensee to purchase alcoholic liquors from 12 an Illinois licensed distributor (unless the licensee 13 purchases less than $500 of alcoholic liquors for the special 14 event, in which case the licensee may purchase the alcoholic 15 liquors from a licensed retailer) and shall allow the 16 licensee to sell and offer for sale, at retail, alcoholic 17 liquors for use or consumption, but not for resale in any 18 form and only at the location and on the specific dates 19 designated for the special event in the license. An 20 applicant for a special event retailer license must (i) 21 furnish with the application: (A) a resale number issued 22 under Section 2c of the Retailers' Occupation Tax Act or 23 evidence that the applicant is registered under Section 2a of 24 the Retailers' Occupation Tax Act, (B) a current, valid 25 exemption identification number issued under Section 1g of 26 the Retailers' Occupation Tax Act, and a certification to the 27 Commission that the purchase of alcoholic liquors will be a 28 tax-exempt purchase, or (C) a statement that the applicant is 29 not registered under Section 2a of the Retailers' Occupation 30 Tax Act, does not hold a resale number under Section 2c of 31 the Retailers' Occupation Tax Act, and does not hold an 32 exemption number under Section 1g of the Retailers' 33 Occupation Tax Act, in which event the Commission shall set 34 forth on the special event retailer's license a statement to HB1001 Engrossed -6- LRB9201634LDprB 1 that effect; (ii) submit with the application proof 2 satisfactory to the State Commission that the applicant will 3 provide dram shop liability insurance in the maximum limits; 4 and (iii) show proof satisfactory to the State Commission 5 that the applicant has obtained local authority approval. 6 (f) A railroad license shall permit the licensee to 7 import alcoholic liquors into this State from any point in 8 the United States outside this State and to store such 9 alcoholic liquors in this State; to make wholesale purchases 10 of alcoholic liquors directly from manufacturers, foreign 11 importers, distributors and importing distributors from 12 within or outside this State; and to store such alcoholic 13 liquors in this State; provided that the above powers may be 14 exercised only in connection with the importation, purchase 15 or storage of alcoholic liquors to be sold or dispensed on a 16 club, buffet, lounge or dining car operated on an electric, 17 gas or steam railway in this State; and provided further, 18 that railroad licensees exercising the above powers shall be 19 subject to all provisions of Article VIII of this Act as 20 applied to importing distributors. A railroad license shall 21 also permit the licensee to sell or dispense alcoholic 22 liquors on any club, buffet, lounge or dining car operated on 23 an electric, gas or steam railway regularly operated by a 24 common carrier in this State, but shall not permit the sale 25 for resale of any alcoholic liquors to any licensee within 26 this State. A license shall be obtained for each car in 27 which such sales are made. 28 (g) A boat license shall allow the sale of alcoholic 29 liquor in individual drinks, on any passenger boat regularly 30 operated as a common carrier on navigable waters in this 31 State, which boat maintains a public dining room or 32 restaurant thereon. 33 (h) A non-beverage user's license shall allow the 34 licensee to purchase alcoholic liquor from a licensed HB1001 Engrossed -7- LRB9201634LDprB 1 manufacturer or importing distributor, without the imposition 2 of any tax upon the business of such licensed manufacturer or 3 importing distributor as to such alcoholic liquor to be used 4 by such licensee solely for the non-beverage purposes set 5 forth in subsection (a) of Section 8-1 of this Act, and such 6 licenses shall be divided and classified and shall permit the 7 purchase, possession and use of limited and stated quantities 8 of alcoholic liquor as follows: 9 Class 1, not to exceed ....................... 500 gallons 10 Class 2, not to exceed ....................... 1,000 gallons 11 Class 3, not to exceed ....................... 5,000 gallons 12 Class 4, not to exceed ....................... 10,000 gallons 13 Class 5, not to exceed ....................... 50,000 gallons 14 (i) A wine-maker's retail license shall allow the 15 licensee to sell and offer for sale at retail in the premises 16 specified in such license not more than 50,000 gallons of 17 wine per year for use or consumption, but not for resale in 18 any form; this license shall be issued only to a person 19 licensed as a first-class or second-class wine-maker. A 20 wine-maker's retail licensee, upon receiving permission from 21 the Commission, may conduct business at a second location 22 that is separate from the location specified in its 23 wine-maker's retail license. One wine-maker's retail 24 license-second location may be issued to a wine-maker's 25 retail licensee allowing the licensee to sell and offer for 26 sale at retail in the premises specified in the wine-maker's 27 retail license-second location up to 50,000 gallons of wine 28 that was produced at the licensee's first location per year 29 for use and consumption and not for resale. 30 (j) An airplane license shall permit the licensee to 31 import alcoholic liquors into this State from any point in 32 the United States outside this State and to store such 33 alcoholic liquors in this State; to make wholesale purchases 34 of alcoholic liquors directly from manufacturers, foreign HB1001 Engrossed -8- LRB9201634LDprB 1 importers, distributors and importing distributors from 2 within or outside this State; and to store such alcoholic 3 liquors in this State; provided that the above powers may be 4 exercised only in connection with the importation, purchase 5 or storage of alcoholic liquors to be sold or dispensed on an 6 airplane; and provided further, that airplane licensees 7 exercising the above powers shall be subject to all 8 provisions of Article VIII of this Act as applied to 9 importing distributors. An airplane licensee shall also 10 permit the sale or dispensing of alcoholic liquors on any 11 passenger airplane regularly operated by a common carrier in 12 this State, but shall not permit the sale for resale of any 13 alcoholic liquors to any licensee within this State. A 14 single airplane license shall be required of an airline 15 company if liquor service is provided on board aircraft in 16 this State. The annual fee for such license shall be as 17 determined in Section 5-3. 18 (k) A foreign importer's license shall permit such 19 licensee to purchase alcoholic liquor from Illinois licensed 20 non-resident dealers only, and to import alcoholic liquor 21 other than in bulk from any point outside the United States 22 and to sell such alcoholic liquor to Illinois licensed 23 importing distributors and to no one else in Illinois; 24 provided that the foreign importer registers with the State 25 Commission every brand of alcoholic liquor that it proposes 26 to sell to Illinois licensees during the license period and 27 provided further that the foreign importer complies with all 28 of the provisions of Section 6-9 of this Act with respect to 29 registration of such Illinois licensees as may be granted the 30 right to sell such brands at wholesale. 31 (l) (i) A broker's license shall be required of all 32 persons who solicit orders for, offer to sell or offer to 33 supply alcoholic liquor to retailers in the State of 34 Illinois, or who offer to retailers to ship or cause to be HB1001 Engrossed -9- LRB9201634LDprB 1 shipped or to make contact with distillers, rectifiers, 2 brewers or manufacturers or any other party within or without 3 the State of Illinois in order that alcoholic liquors be 4 shipped to a distributor, importing distributor or foreign 5 importer, whether such solicitation or offer is consummated 6 within or without the State of Illinois. 7 No holder of a retailer's license issued by the Illinois 8 Liquor Control Commission shall purchase or receive any 9 alcoholic liquor, the order for which was solicited or 10 offered for sale to such retailer by a broker unless the 11 broker is the holder of a valid broker's license. 12 The broker shall, upon the acceptance by a retailer of 13 the broker's solicitation of an order or offer to sell or 14 supply or deliver or have delivered alcoholic liquors, 15 promptly forward to the Illinois Liquor Control Commission a 16 notification of said transaction in such form as the 17 Commission may by regulations prescribe. 18 (ii) A broker's license shall be required of a person 19 within this State, other than a retail licensee, who, for a 20 fee or commission, promotes, solicits, or accepts orders for 21 alcoholic liquor, for use or consumption and not for resale, 22 to be shipped from this State and delivered to residents 23 outside of this State by an express company, common carrier, 24 or contract carrier. This Section does not apply to any 25 person who promotes, solicits, or accepts orders for wine as 26 specifically authorized in Section 6-29 of this Act. 27 A broker's license under this subsection (1) shall not 28 entitle the holder to buy or sell any alcoholic liquors for 29 his own account or to take or deliver title to such alcoholic 30 liquors. 31 This subsection (1) shall not apply to distributors, 32 employees of distributors, or employees of a manufacturer who 33 has registered the trademark, brand or name of the alcoholic 34 liquor pursuant to Section 6-9 of this Act, and who regularly HB1001 Engrossed -10- LRB9201634LDprB 1 sells such alcoholic liquor in the State of Illinois only to 2 its registrants thereunder. 3 Any agent, representative, or person subject to 4 registration pursuant to subsection (a-1) of this Section 5 shall not be eligible to receive a broker's license. 6 (m) A non-resident dealer's license shall permit such 7 licensee to ship into and warehouse alcoholic liquor into 8 this State from any point outside of this State, and to sell 9 such alcoholic liquor to Illinois licensed foreign importers 10 and importing distributors and to no one else in this State; 11 provided that said non-resident dealer shall register with 12 the Illinois Liquor Control Commission each and every brand 13 of alcoholic liquor which it proposes to sell to Illinois 14 licensees during the license period; and further provided 15 that it shall comply with all of the provisions of Section 16 6-9 hereof with respect to registration of such Illinois 17 licensees as may be granted the right to sell such brands at 18 wholesale. 19 (n) A brew pub license shall allow the licensee to 20 manufacture beer only on the premises specified in the 21 license, to make sales of the beer manufactured on the 22 premises to importing distributors, distributors, and to 23 non-licensees for use and consumption, to store the beer upon 24 the premises, and to sell and offer for sale at retail from 25 the licensed premises, provided that a brew pub licensee 26 shall not sell for off-premises consumption more than 50,000 27 gallons per year. 28 (o) A caterer retailer license shall allow the holder to 29 serve alcoholic liquors as an incidental part of a food 30 service that serves prepared meals which excludes the serving 31 of snacks as the primary meal, either on or off-site whether 32 licensed or unlicensed. 33 (p) An auction liquor license shall allow the licensee 34 to sell and offer for sale at auction wine and spirits for HB1001 Engrossed -11- LRB9201634LDprB 1 use or consumption, or for resale by an Illinois liquor 2 licensee in accordance with provisions of this Act. An 3 auction liquor license will be issued to a person and it will 4 permit the auction liquor licensee to hold the auction 5 anywhere in the State. An auction liquor license must be 6 obtained for each auction at least 14 days in advance of the 7 auction date. 8 (q) A special use permit license shall allow an Illinois 9 licensed retailer to transfer a portion of its alcoholic 10 liquor inventory from its retail licensed premises to the 11 premises specified in the license hereby created, and to sell 12 or offer for sale at retail, only in the premises specified 13 in the license hereby created, the transferred alcoholic 14 liquor for use or consumption, but not for resale in any 15 form. A special use permit license may be granted for the 16 following time periods: one day or less; 2 or more days to a 17 maximum of 15 days per location in any 12 month period. An 18 applicant for the special use permit license must also submit 19 with the application proof satisfactory to the State 20 Commission that the applicant will provide dram shop 21 liability insurance to the maximum limits and have local 22 authority approval. 23 (Source: P.A. 90-77, eff. 7-8-97; 90-432, eff. 1-1-98; 24 90-596, eff. 6-24-98; 90-655, eff. 7-30-98; 90-739, eff. 25 8-13-98; 91-357, eff. 7-29-99.) 26 (235 ILCS 5/6-9) (from Ch. 43, par. 126) 27 Sec. 6-9. Registration of trade marks; sale within 28 geographical area; delivery to authorized persons. The 29 Legislature hereby finds and declares that for purposes of 30 ensuring the preservation and enhancement of interbrand 31 competition in the alcoholic liquor industry within the 32 State, ensuring that importation and distribution of 33 alcoholic liquor in the State will be subject to thorough and HB1001 Engrossed -12- LRB9201634LDprB 1 inexpensive monitoring by the State, reducing the importation 2 of illicit or untaxed alcoholic liquor into the State, 3 excluding misbranded alcoholic liquor products from the 4 State, providing incentives to distributors to service and 5 sell to larger numbers of retail licensees in the geographic 6 area where such distributors are engaged in business, and 7 reducing the amount of spoiled and overaged alcoholic liquor 8 products sold to consumers, it is necessary to restrict the 9 purchase of alcoholic liquors at wholesale in the State to 10 those persons selected by the manufacturer, distributor, 11 importing distributor or foreign importer who owns or 12 controls the trade mark, brand or name of the alcoholic 13 liquor products sold to such persons, and to restrict the 14 geographic area or areas within which such persons sell such 15 alcoholic liquor at wholesale, as provided in this Section. 16 Each manufacturer, non-resident dealer, distributor, 17 importing distributor, or foreign importer who owns or 18 controls the trade mark, brand or name of any alcoholic 19 liquor shall register with the State Commission, in the 20 Chicago office, on or before the effective date, the name of 21 each person to whom such manufacturer, non-resident dealer, 22 distributor, importing distributor, or foreign importer 23 grants the right to sell at wholesale in this State any such 24 alcoholic liquor, specifying the particular trade mark, brand 25 or name of alcoholic liquor as to which such right is 26 granted, the geographical area or areas for which such right 27 is granted and the period of time for which such rights are 28 granted to such person. Each manufacturer, non-resident 29 dealer, distributor or importing distributor, or foreign 30 importer who is required to register under this Section must 31 furnish a copy of the registration statement at the time of 32 appointment to the person who has been granted the right to 33 sell alcoholic liquor at wholesale. However, if a person who 34 has been appointed the right to sell alcoholic liquor at HB1001 Engrossed -13- LRB9201634LDprB 1 wholesale does not receive a copy of the registration 2 statement as required under this Section, such person may 3 file a registration statement with the State Commission, 4 provided that the person furnishes a copy of that 5 registration statement to the manufacturer, non-resident 6 dealer, distributor, importing distributor, or foreign 7 importer within 30 days of filing the registration statement. 8 The registration statement shall state: 9 (1) the name of the person appointed; 10 (2) the name of the manufacturer, non-resident dealer, 11 distributor, importing distributor, or foreign importer from 12 whom the person received the right to sell alcoholic liquor; 13 (3) the particular trade mark, brand, or name of 14 alcoholic liquor as to which the right to sell at wholesale 15 is granted; and 16 (4) the geographical areas for which the right to sell 17 at wholesale is granted. 18 Such manufacturer, non-resident dealer, distributor, 19 importing distributor, or foreign importer may grant the 20 right to sell at wholesale any trade mark, brand or name of 21 any alcoholic liquor in any geographical area to more than 22 one person. If the registration is received after the 23 effective date, the Commission shall treat the date the 24 registration was received in the Chicago office as the 25 effective date. Such registration shall be made on a form 26 prescribed by the State Commission and the State Commission 27 may require such registration to be on a form provided by it. 28 No such registration shall be madeby any other personin 29 any other manner than as is provided in this Section and only 30 those persons registered by the manufacturer, non-resident 31 dealer, distributor, importing distributor or foreign 32 importer, shall have the right to sell at wholesale in this 33 State, the brand of alcoholic liquor specified on the 34 registration form. HB1001 Engrossed -14- LRB9201634LDprB 1 However, a licensed Illinois distributor who has not been 2 registered to sell a brand of alcoholic liquor, but for a 3 period of 2 years prior to November 8, 1979 has been engaged 4 in the purchase of a brand for resale from a licensed 5 Illinois distributor who has the right to sell that brand at 6 wholesale, may continue to purchase and resell the brand at 7 wholesale, and may purchase from the same distributor and 8 resell at wholesale any new brands of the same manufacturer, 9 provided that: 10 (1) Within 60 days after November 8, 1979 he 11 identifies the brand which he so purchased to the State 12 Commission and the Commission within 30 days thereafter 13 verifies that the purchases have occurred; 14 (2) Thereafter, he notifies the State Commission in 15 writing of any brands of the same manufacturer which he 16 wishes to purchase from the same distributor that were 17 not available for distribution on or before November 8, 18 1979, and that the Commission within 30 days of such 19 notification verifies that the brand is a new brand of 20 the same manufacturer, and that the same licensed 21 Illinois distributor has the right to sell the new brand 22 at wholesale; 23 (3) His licensed business address is within the 24 geographical area for which the licensed Illinois 25 distributor from whom the purchases are made has the 26 right to sell said brand or brands of alcoholic liquor; 27 and 28 (4) His sales are made within the geographical area 29 for which the licensed Illinois distributor from whom the 30 purchases are made has the right to sell the brand or 31 brands of alcoholic liquor and only to retail licensees 32 whose licensed premises are located within the 33 aforementioned geographical area. 34 No person to whom such right is granted shall sell at HB1001 Engrossed -15- LRB9201634LDprB 1 wholesale in this State any alcoholic liquor bearing such 2 trade mark, brand or name outside of the geographical area 3 for which such person holds such selling right, as registered 4 with the State Commission, nor shall he sell such alcoholic 5 liquor within such geographical area to a retail licensee if 6 the premises specified in such retailer's license are located 7 outside such geographical area. Any licensed Illinois 8 distributor who has not been granted the right to sell any 9 alcoholic liquor at wholesale and is purchasing alcoholic 10 liquor from a person who has been granted the right to sell 11 at wholesale may sell and deliver only to retail licensees 12 whose licensed premises are within the same geographical area 13 as the person who has been granted the right to sell at 14 wholesale. 15 No manufacturer, importing distributor, distributor, 16 non-resident dealer, or foreign importer shall sell or 17 deliver any package containing alcoholic liquor manufactured 18 or distributed by him for resale, unless the person to whom 19 such package is sold or delivered is authorized to receive 20 such package in accordance with the provisions of this Act. 21 (Source: P.A. 89-250, eff. 1-1-96; 90-596, eff. 6-24-98.)