State of Illinois
92nd General Assembly
Legislation

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92_SB1301

 
                                               LRB9207120LDpr

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

19        Section  99.  Effective date.  This Act takes effect upon
20    becoming law.

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