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92_HB2356 LRB9206792LDpr 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 Section 5-1 as follows: 6 (235 ILCS 5/5-1) (from Ch. 43, par. 115) 7 Sec. 5-1. Licenses issued by the Illinois Liquor Control 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 -2- LRB9206792LDpr 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 -3- LRB9206792LDpr 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 -4- LRB9206792LDpr 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 -5- LRB9206792LDpr 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 -6- LRB9206792LDpr 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 -7- LRB9206792LDpr 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 -8- LRB9206792LDpr 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. A 24 foreign importer's licensee is subject to all provisions of 25 this Act. This amendatory Act of the 92nd General Assembly 26 is declarative of existing law. 27 (l) (i) A broker's license shall be required of all 28 persons who solicit orders for, offer to sell or offer to 29 supply alcoholic liquor to retailers in the State of 30 Illinois, or who offer to retailers to ship or cause to be 31 shipped or to make contact with distillers, rectifiers, 32 brewers or manufacturers or any other party within or without 33 the State of Illinois in order that alcoholic liquors be 34 shipped to a distributor, importing distributor or foreign -9- LRB9206792LDpr 1 importer, whether such solicitation or offer is consummated 2 within or 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 (ii) A broker's license shall be required of a person 15 within this State, other than a retail licensee, who, for a 16 fee or commission, promotes, solicits, or accepts orders for 17 alcoholic liquor, for use or consumption and not for resale, 18 to be shipped from this State and delivered to residents 19 outside of this State by an express company, common carrier, 20 or contract carrier. This Section does not apply to any 21 person who promotes, solicits, or accepts orders for wine as 22 specifically authorized in Section 6-29 of this Act. 23 A broker's license under this subsection (1) shall not 24 entitle the holder to buy or sell any alcoholic liquors for 25 his own account or to take or deliver title to such alcoholic 26 liquors. 27 This subsection (1) shall not apply to distributors, 28 employees of distributors, or employees of a manufacturer who 29 has registered the trademark, brand or name of the alcoholic 30 liquor pursuant to Section 6-9 of this Act, and who regularly 31 sells such alcoholic liquor in the State of Illinois only to 32 its registrants thereunder. 33 Any agent, representative, or person subject to 34 registration pursuant to subsection (a-1) of this Section -10- LRB9206792LDpr 1 shall not be eligible to receive a broker's license. 2 (m) A non-resident dealer's license shall permit such 3 licensee to ship into and warehouse alcoholic liquor into 4 this State from any point outside of this State, and to sell 5 such alcoholic liquor to Illinois licensed foreign importers 6 and importing distributors and to no one else in this State; 7 provided that said non-resident dealer shall register with 8 the Illinois Liquor Control Commission each and every brand 9 of alcoholic liquor which it proposes to sell to Illinois 10 licensees during the license period; and further provided 11 that it shall comply with all of the provisions of Section 12 6-9 hereof with respect to registration of such Illinois 13 licensees as may be granted the right to sell such brands at 14 wholesale. 15 (n) A brew pub license shall allow the licensee to 16 manufacture beer only on the premises specified in the 17 license, to make sales of the beer manufactured on the 18 premises to importing distributors, distributors, and to 19 non-licensees for use and consumption, to store the beer upon 20 the premises, and to sell and offer for sale at retail from 21 the licensed premises, provided that a brew pub licensee 22 shall not sell for off-premises consumption more than 50,000 23 gallons per year. 24 (o) A caterer retailer license shall allow the holder to 25 serve alcoholic liquors as an incidental part of a food 26 service that serves prepared meals which excludes the serving 27 of snacks as the primary meal, either on or off-site whether 28 licensed or unlicensed. 29 (p) An auction liquor license shall allow the licensee 30 to sell and offer for sale at auction wine and spirits for 31 use or consumption, or for resale by an Illinois liquor 32 licensee in accordance with provisions of this Act. An 33 auction liquor license will be issued to a person and it will 34 permit the auction liquor licensee to hold the auction -11- LRB9206792LDpr 1 anywhere in the State. An auction liquor license must be 2 obtained for each auction at least 14 days in advance of the 3 auction date. 4 (q) A special use permit license shall allow an Illinois 5 licensed retailer to transfer a portion of its alcoholic 6 liquor inventory from its retail licensed premises to the 7 premises specified in the license hereby created, and to sell 8 or offer for sale at retail, only in the premises specified 9 in the license hereby created, the transferred alcoholic 10 liquor for use or consumption, but not for resale in any 11 form. A special use permit license may be granted for the 12 following time periods: one day or less; 2 or more days to a 13 maximum of 15 days per location in any 12 month period. An 14 applicant for the special use permit license must also submit 15 with the application proof satisfactory to the State 16 Commission that the applicant will provide dram shop 17 liability insurance to the maximum limits and have local 18 authority approval. 19 (Source: P.A. 90-77, eff. 7-8-97; 90-432, eff. 1-1-98; 20 90-596, eff. 6-24-98; 90-655, eff. 7-30-98; 90-739, eff. 21 8-13-98; 91-357, eff. 7-29-99.) 22 Section 99. Effective date. This Act takes effect upon 23 becoming law.