State of Illinois
92nd General Assembly
Legislation

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[ House Amendment 001 ]


92_HB5684

 
                                               LRB9214032LDtm

 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 premises 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        No person, firm, partnership, corporation, or other legal
31    business  entity that is engaged in the manufacturing of wine
 
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 1    may concurrently obtain and hold a wine-maker's license and a
 2    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  up  to  50,000  gallons   of   wine   to
23    manufacturers,  importing  distributors and distributors, and
24    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 up to 50,000 gallons of wine per year, and
31    the  storage  and  sale  of  such wine to distributors in the
32    State and to persons without the State, as may  be  permitted
33    by  law.   A first-class wine-maker's license shall allow the
34    sale of no more than 5,000 gallons of the licensee's wine  to
 
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 1    retailers.    The  State  Commission  shall  issue  only  one
 2    first-class  wine-maker's  license  to  any   person,   firm,
 3    partnership, corporation, or other legal business entity that
 4    is  engaged in the making of less than 50,000 gallons of wine
 5    annually that applies for a first-class wine-maker's license.
 6    No  subsidiary  or  affiliate  thereof,  nor   any   officer,
 7    associate,  member, partner, representative, employee, agent,
 8    or shareholder  may  be  issued  an  additional  wine-maker's
 9    license by the State Commission.
10        Class  7. A second-class wine-maker's license shall allow
11    the manufacture of between 50,000 and 100,000 gallons of wine
12    per  year,  and  the  storage  and  sale  of  such  wine   to
13    distributors  in this State and to persons without the State,
14    as may be permitted  by  law.   A  second-class  wine-maker's
15    license  shall  allow the sale of no more than 10,000 gallons
16    of the licensee's  wine  directly  to  retailers.  The  State
17    Commission  shall  issue  only  one second-class wine-maker's
18    license to any person,  firm,  partnership,  corporation,  or
19    other  legal business entity that is engaged in the making of
20    less than 100,000 gallons of wine annually that applies for a
21    second-class  wine-maker's   license.    No   subsidiary   or
22    affiliate   thereof,   or  any  officer,  associate,  member,
23    partner, representative, employee, agent, or shareholder  may
24    be  issued  an  additional  wine-maker's license by the State
25    Commission.
26        Class 8. A limited wine-manufacturer may make  sales  and
27    deliveries  not  to exceed 40,000 gallons of wine per year to
28    distributors, and to non-licensees  in  accordance  with  the
29    provisions of this Act.
30        (a-1)  A  manufacturer which is licensed in this State to
31    make sales  or  deliveries  of  alcoholic  liquor  and  which
32    enlists agents, representatives, or individuals acting on its
33    behalf  who  contact  licensed  retailers  on  a  regular and
34    continual basis in this State  must  register  those  agents,
 
                            -4-                LRB9214032LDtm
 1    representatives,  or  persons  acting  on its behalf with the
 2    State Commission.
 3        Registration  of  agents,  representatives,  or   persons
 4    acting on behalf of a manufacturer is fulfilled by submitting
 5    a form to the Commission.  The form shall be developed by the
 6    Commission  and  shall  include  the  name and address of the
 7    applicant, the name and address of the manufacturer he or she
 8    represents, the territory or areas assigned  to  sell  to  or
 9    discuss  pricing  terms  of  alcoholic  liquor, and any other
10    questions deemed appropriate and necessary. All statements in
11    the forms required to be made by law  or  by  rule  shall  be
12    deemed  material,  and any person who knowingly misstates any
13    material fact under oath in an application  is  guilty  of  a
14    Class   B   misdemeanor.    Fraud,  misrepresentation,  false
15    statements, misleading statements, evasions,  or  suppression
16    of  material  facts  in  the  securing  of a registration are
17    grounds for suspension or revocation of the registration.
18        (b)  A distributor's license shall  allow  the  wholesale
19    purchase  and  storage  of  alcoholic  liquors  and  sale  of
20    alcoholic  liquors  to licensees in this State and to persons
21    without the State, as may be permitted by law.
22        (c)  An importing distributor's license may be issued  to
23    and  held  by  those only who are duly licensed distributors,
24    upon  the  filing  of  an  application  by  a  duly  licensed
25    distributor, with the Commission and  the  Commission  shall,
26    without  the  payment  of  any  fee,  immediately  issue such
27    importing distributor's license to the applicant, which shall
28    allow the importation of alcoholic  liquor  by  the  licensee
29    into  this  State from any point in the United States outside
30    this State, and the purchase of alcoholic liquor in  barrels,
31    casks  or  other  bulk  containers  and  the bottling of such
32    alcoholic liquors before resale thereof, but all  bottles  or
33    containers  so  filled  shall be sealed, labeled, stamped and
34    otherwise made to  comply  with  all  provisions,  rules  and
 
                            -5-                LRB9214032LDtm
 1    regulations  governing  manufacturers  in the preparation and
 2    bottling of alcoholic liquors.  The  importing  distributor's
 3    license  shall  permit  such  licensee  to purchase alcoholic
 4    liquor  from  Illinois  licensed  non-resident  dealers   and
 5    foreign importers only.
 6        (d)  A  retailer's  license  shall  allow the licensee to
 7    sell and offer for sale  at  retail,  only  in  the  premises
 8    specified  in  such  license,  alcoholic  liquor  for  use or
 9    consumption, but not for resale in any  form:  Provided  that
10    any retail license issued to a manufacturer shall only permit
11    such  manufacturer  to  sell  beer  at retail on the premises
12    actually occupied by such manufacturer.
13        After January  1,  1995  there  shall  be  2  classes  of
14    licenses issued under a retailers license.
15             (1)  A  "retailers  on  premise consumption license"
16        shall allow the licensee to sell and offer  for  sale  at
17        retail,  only  on  the premises specified in the license,
18        alcoholic liquor for use or consumption on  the  premises
19        or  on  and  off  the premises, but not for resale in any
20        form.
21             (2)  An "off premise sale license" shall  allow  the
22        licensee  to sell, or offer for sale at retail, alcoholic
23        liquor intended only for off premise consumption and  not
24        for resale in any form.
25        Notwithstanding  any  other  provision of this subsection
26    (d), a retail  licensee  may  sell  alcoholic  liquors  to  a
27    special  event  retailer  licensee  for  resale to the extent
28    permitted under subsection (e).
29        (e)  A special event retailer's license  (not-for-profit)
30    shall  permit the licensee to purchase alcoholic liquors from
31    an  Illinois  licensed   distributor  (unless  the   licensee
32    purchases less than $500 of alcoholic liquors for the special
33    event,  in which case the licensee may purchase the alcoholic
34    liquors  from  a  licensed  retailer)  and  shall  allow  the
 
                            -6-                LRB9214032LDtm
 1    licensee to sell and offer for  sale,  at  retail,  alcoholic
 2    liquors  for  use  or  consumption, but not for resale in any
 3    form and only at the  location  and  on  the  specific  dates
 4    designated   for  the  special  event  in  the  license.   An
 5    applicant for a  special  event  retailer  license  must  (i)
 6    furnish  with  the  application:   (A) a resale number issued
 7    under Section 2c of the  Retailers'  Occupation  Tax  Act  or
 8    evidence that the applicant is registered under Section 2a of
 9    the  Retailers'  Occupation  Tax  Act,  (B)  a current, valid
10    exemption identification number issued under  Section  1g  of
11    the Retailers' Occupation Tax Act, and a certification to the
12    Commission  that  the purchase of alcoholic liquors will be a
13    tax-exempt purchase, or (C) a statement that the applicant is
14    not registered under Section 2a of the Retailers'  Occupation
15    Tax  Act,  does  not hold a resale number under Section 2c of
16    the Retailers' Occupation Tax  Act,  and  does  not  hold  an
17    exemption   number   under   Section  1g  of  the  Retailers'
18    Occupation Tax Act, in which event the Commission  shall  set
19    forth  on the special event retailer's license a statement to
20    that  effect;  (ii)  submit  with   the   application   proof
21    satisfactory  to the State Commission that the applicant will
22    provide dram shop liability insurance in the maximum  limits;
23    and  (iii)  show  proof  satisfactory to the State Commission
24    that the applicant has obtained local authority approval.
25        (f)  A railroad license  shall  permit  the  licensee  to
26    import  alcoholic  liquors  into this State from any point in
27    the United States  outside  this  State  and  to  store  such
28    alcoholic  liquors in this State; to make wholesale purchases
29    of alcoholic liquors  directly  from  manufacturers,  foreign
30    importers,   distributors  and  importing  distributors  from
31    within or outside this State; and  to  store  such  alcoholic
32    liquors  in this State; provided that the above powers may be
33    exercised only in connection with the  importation,  purchase
34    or  storage of alcoholic liquors to be sold or dispensed on a
 
                            -7-                LRB9214032LDtm
 1    club, buffet, lounge or dining car operated on  an  electric,
 2    gas  or  steam  railway  in this State; and provided further,
 3    that railroad licensees exercising the above powers shall  be
 4    subject  to  all  provisions  of  Article VIII of this Act as
 5    applied to importing distributors.  A railroad license  shall
 6    also  permit  the  licensee  to  sell  or  dispense alcoholic
 7    liquors on any club, buffet, lounge or dining car operated on
 8    an electric, gas or steam railway  regularly  operated  by  a
 9    common  carrier  in this State, but shall not permit the sale
10    for resale of any alcoholic liquors to  any  licensee  within
11    this  State.   A  license  shall  be obtained for each car in
12    which such sales are made.
13        (g)  A boat license shall allow  the  sale  of  alcoholic
14    liquor  in individual drinks, on any passenger boat regularly
15    operated as a common carrier  on  navigable  waters  in  this
16    State,   which   boat  maintains  a  public  dining  room  or
17    restaurant thereon.
18        (h)  A  non-beverage  user's  license  shall  allow   the
19    licensee   to  purchase  alcoholic  liquor  from  a  licensed
20    manufacturer or importing distributor, without the imposition
21    of any tax upon the business of such licensed manufacturer or
22    importing distributor as to such alcoholic liquor to be  used
23    by  such  licensee  solely  for the non-beverage purposes set
24    forth in subsection (a) of Section 8-1 of this Act, and  such
25    licenses shall be divided and classified and shall permit the
26    purchase, possession and use of limited and stated quantities
27    of alcoholic liquor as follows:
28    Class 1, not to exceed .......................    500 gallons
29    Class 2, not to exceed .......................  1,000 gallons
30    Class 3, not to exceed .......................  5,000 gallons
31    Class 4, not to exceed ....................... 10,000 gallons
32    Class 5, not to exceed ....................... 50,000 gallons
33        (i)  A   wine-maker's  premises  license  shall  allow  a
34    licensee that concurrently holds a  first-class  wine-maker's
 
                            -8-                LRB9214032LDtm
 1    license  to sell and offer for sale at retail in the premises
 2    specified in such license not more than 50,000 gallons of the
 3    first-class wine-maker's wine that is made at the first-class
 4    wine-maker's  licensed  premises  per   year   for   use   or
 5    consumption,  but not for resale in any form.  A wine-maker's
 6    premises license shall  allow  a  licensee  who  concurrently
 7    holds  a  second-class wine-maker's license to sell and offer
 8    for sale at retail in the premises specified in such  license
 9    up  to  100,000 gallons of the second-class wine-maker's wine
10    that  is  made  at  the  second-class  wine-maker's  licensed
11    premises per year for use or consumption but not  for  resale
12    in  any  form.   Upon  approval  from the State Commission, a
13    wine-maker's premises license shall  allow  the  licensee  to
14    sell  and  offer  for  sale  at (i) the wine-maker's licensed
15    premises and (ii) at up to 2 additional locations for use and
16    consumption and not for resale.  Each location shall  require
17    additional licensing per location as specified in Section 5-3
18    of this Act.
19        (j)  An  airplane  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 an
29    airplane;  and  provided  further,  that  airplane  licensees
30    exercising  the  above  powers  shall  be  subject   to   all
31    provisions  of  Article  VIII  of  this  Act  as  applied  to
32    importing  distributors.   An  airplane  licensee  shall also
33    permit the sale or dispensing of  alcoholic  liquors  on  any
34    passenger  airplane regularly operated by a common carrier in
 
                            -9-                LRB9214032LDtm
 1    this State, but shall not permit the sale for resale  of  any
 2    alcoholic  liquors  to  any  licensee  within  this State.  A
 3    single airplane license  shall  be  required  of  an  airline
 4    company  if  liquor  service is provided on board aircraft in
 5    this State.  The annual fee for  such  license  shall  be  as
 6    determined in Section 5-3.
 7        (k)  A  foreign  importer's  license  shall  permit  such
 8    licensee  to purchase alcoholic liquor from Illinois licensed
 9    non-resident dealers only, and  to  import  alcoholic  liquor
10    other  than  in bulk from any point outside the United States
11    and to  sell  such  alcoholic  liquor  to  Illinois  licensed
12    importing  distributors  and  to  no  one  else  in Illinois;
13    provided that the foreign importer registers with  the  State
14    Commission  every  brand of alcoholic liquor that it proposes
15    to sell to Illinois licensees during the license  period  and
16    provided  further that the foreign importer complies with all
17    of the provisions of Section 6-9 of this Act with respect  to
18    registration of such Illinois licensees as may be granted the
19    right  to sell such brands at wholesale. A foreign importer's
20    licensee is subject to  all  provisions  of  this  Act.  This
21    amendatory Act of the 92nd General Assembly is declarative of
22    existing law.
23        (l) (i)  A  broker's  license  shall  be  required of all
24    persons who solicit orders for, offer to  sell  or  offer  to
25    supply   alcoholic  liquor  to  retailers  in  the  State  of
26    Illinois, or who offer to retailers to ship or  cause  to  be
27    shipped  or  to  make  contact  with  distillers, rectifiers,
28    brewers or manufacturers or any other party within or without
29    the State of Illinois in  order  that  alcoholic  liquors  be
30    shipped  to  a  distributor, importing distributor or foreign
31    importer, whether such solicitation or offer  is  consummated
32    within or without the State of Illinois.
33        No  holder of a retailer's license issued by the Illinois
34    Liquor Control  Commission  shall  purchase  or  receive  any
 
                            -10-               LRB9214032LDtm
 1    alcoholic  liquor,  the  order  for  which  was  solicited or
 2    offered for sale to such retailer  by  a  broker  unless  the
 3    broker is the holder of a valid broker's license.
 4        The  broker  shall,  upon the acceptance by a retailer of
 5    the broker's solicitation of an order or  offer  to  sell  or
 6    supply  or  deliver  or  have  delivered  alcoholic  liquors,
 7    promptly  forward to the Illinois Liquor Control Commission a
 8    notification  of  said  transaction  in  such  form  as   the
 9    Commission may by regulations prescribe.
10        (ii)  A  broker's  license  shall be required of a person
11    within this State, other than a retail licensee, who,  for  a
12    fee  or commission, promotes, solicits, or accepts orders for
13    alcoholic liquor, for use or consumption and not for  resale,
14    to  be  shipped  from  this  State and delivered to residents
15    outside of this State by an express company, common  carrier,
16    or  contract  carrier.  This  Section  does  not apply to any
17    person who promotes, solicits, or accepts orders for wine  as
18    specifically authorized in Section 6-29 of this Act.
19        A  broker's  license  under this subsection (1) shall not
20    entitle the holder to buy or sell any alcoholic  liquors  for
21    his own account or to take or deliver title to such alcoholic
22    liquors.
23        This  subsection  (1)  shall  not  apply to distributors,
24    employees of distributors, or employees of a manufacturer who
25    has registered the trademark, brand or name of the  alcoholic
26    liquor pursuant to Section 6-9 of this Act, and who regularly
27    sells  such alcoholic liquor in the State of Illinois only to
28    its registrants thereunder.
29        Any  agent,  representative,   or   person   subject   to
30    registration  pursuant  to  subsection  (a-1) of this Section
31    shall not be eligible to receive a broker's license.
32        (m)  A non-resident dealer's license  shall  permit  such
33    licensee  to  ship  into  and warehouse alcoholic liquor into
34    this State from any point outside of this State, and to  sell
 
                            -11-               LRB9214032LDtm
 1    such  alcoholic liquor to Illinois licensed foreign importers
 2    and importing distributors and to no one else in this  State;
 3    provided  that  said  non-resident dealer shall register with
 4    the Illinois Liquor Control Commission each and  every  brand
 5    of  alcoholic  liquor  which  it proposes to sell to Illinois
 6    licensees during the license  period;  and  further  provided
 7    that  it  shall  comply with all of the provisions of Section
 8    6-9 hereof with respect  to  registration  of  such  Illinois
 9    licensees  as may be granted the right to sell such brands at
10    wholesale.
11        (n)  A brew pub  license  shall  allow  the  licensee  to
12    manufacture  beer  only  on  the  premises  specified  in the
13    license, to make  sales  of  the  beer  manufactured  on  the
14    premises  to  importing  distributors,  distributors,  and to
15    non-licensees for use and consumption, to store the beer upon
16    the premises, and to sell and offer for sale at  retail  from
17    the  licensed  premises,  provided  that  a brew pub licensee
18    shall not sell for off-premises consumption more than  50,000
19    gallons per year.
20        (o)  A caterer retailer license shall allow the holder to
21    serve  alcoholic  liquors  as  an  incidental  part of a food
22    service that serves prepared meals which excludes the serving
23    of snacks as the primary meal, either on or off-site  whether
24    licensed or unlicensed.
25        (p)  An  auction  liquor license shall allow the licensee
26    to sell and offer for sale at auction wine  and  spirits  for
27    use  or  consumption,  or  for  resale  by an Illinois liquor
28    licensee in accordance  with  provisions  of  this  Act.   An
29    auction liquor license will be issued to a person and it will
30    permit  the  auction  liquor  licensee  to  hold  the auction
31    anywhere in the State.  An auction  liquor  license  must  be
32    obtained  for each auction at least 14 days in advance of the
33    auction date.
34        (q)  A special use permit license shall allow an Illinois
 
                            -12-               LRB9214032LDtm
 1    licensed retailer to transfer  a  portion  of  its  alcoholic
 2    liquor  inventory  from  its  retail licensed premises to the
 3    premises specified in the license hereby created, and to sell
 4    or offer for sale at retail, only in the  premises  specified
 5    in  the  license  hereby  created,  the transferred alcoholic
 6    liquor for use or consumption, but  not  for  resale  in  any
 7    form.   A  special  use permit license may be granted for the
 8    following time periods: one day or less; 2 or more days to  a
 9    maximum  of  15 days per location in any 12 month period.  An
10    applicant for the special use permit license must also submit
11    with  the  application  proof  satisfactory  to   the   State
12    Commission   that   the  applicant  will  provide  dram  shop
13    liability insurance to the  maximum  limits  and  have  local
14    authority approval.
15    (Source:  P.A.  91-357,  eff.  7-29-99;  92-105, eff. 1-1-02;
16    92-378, eff. 8-16-01; revised 10-10-01.)

17        Section 99.  Effective date.  This Act takes effect  upon
18    becoming law.

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