State of Illinois
92nd General Assembly
Legislation

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92_SB1944

 
                                               LRB9212731LDtm

 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-                LRB9212731LDtm
 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-                LRB9212731LDtm
 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        For the  purpose  of  compliance  with  a  local  license
26    limitation  or  local  ordinance  that  limits a retailers on
27    premise consumption licensee to the sale of alcoholic  liquor
28    other than spirits, a distilled spirit  that is (1) made from
29    a blend of grains, rice, and sweet potatoes, (2) contains not
30    more  than  24%  alcohol, and (3) is commonly known as "soju"
31    shall be considered wine rather than spirits.
32        Notwithstanding any other provision  of  this  subsection
33    (d),  a  retail  licensee  may  sell  alcoholic  liquors to a
34    special event retailer licensee  for  resale  to  the  extent
 
                            -6-                LRB9212731LDtm
 1    permitted under subsection (e).
 2        (e)  A  special event retailer's license (not-for-profit)
 3    shall permit the licensee to purchase alcoholic liquors  from
 4    an   Illinois  licensed   distributor  (unless  the  licensee
 5    purchases less than $500 of alcoholic liquors for the special
 6    event, in which case the licensee may purchase the  alcoholic
 7    liquors  from  a  licensed  retailer)  and  shall  allow  the
 8    licensee  to  sell  and  offer for sale, at retail, alcoholic
 9    liquors for use or consumption, but not  for  resale  in  any
10    form  and  only  at  the  location  and on the specific dates
11    designated  for  the  special  event  in  the  license.    An
12    applicant  for  a  special  event  retailer  license must (i)
13    furnish with the application:  (A)  a  resale  number  issued
14    under  Section  2c  of  the  Retailers' Occupation Tax Act or
15    evidence that the applicant is registered under Section 2a of
16    the Retailers' Occupation  Tax  Act,  (B)  a  current,  valid
17    exemption  identification  number  issued under Section 1g of
18    the Retailers' Occupation Tax Act, and a certification to the
19    Commission that the purchase of alcoholic liquors will  be  a
20    tax-exempt purchase, or (C) a statement that the applicant is
21    not  registered under Section 2a of the Retailers' Occupation
22    Tax Act, does not hold a resale number under  Section  2c  of
23    the  Retailers'  Occupation  Tax  Act,  and  does not hold an
24    exemption  number  under  Section  1g   of   the   Retailers'
25    Occupation  Tax  Act, in which event the Commission shall set
26    forth on the special event retailer's license a statement  to
27    that   effect;   (ii)   submit  with  the  application  proof
28    satisfactory to the State Commission that the applicant  will
29    provide  dram shop liability insurance in the maximum limits;
30    and (iii) show proof satisfactory  to  the  State  Commission
31    that the applicant has obtained local authority approval.
32        (f)  A  railroad  license  shall  permit  the licensee to
33    import alcoholic liquors into this State from  any  point  in
34    the  United  States  outside  this  State  and  to store such
 
                            -7-                LRB9212731LDtm
 1    alcoholic liquors in this State; to make wholesale  purchases
 2    of  alcoholic  liquors  directly  from manufacturers, foreign
 3    importers,  distributors  and  importing  distributors   from
 4    within  or  outside  this  State; and to store such alcoholic
 5    liquors in this State; provided that the above powers may  be
 6    exercised  only  in connection with the importation, purchase
 7    or storage of alcoholic liquors to be sold or dispensed on  a
 8    club,  buffet,  lounge or dining car operated on an electric,
 9    gas or steam railway in this  State;  and  provided  further,
10    that  railroad licensees exercising the above powers shall be
11    subject to all provisions of Article  VIII  of  this  Act  as
12    applied  to importing distributors.  A railroad license shall
13    also permit  the  licensee  to  sell  or  dispense  alcoholic
14    liquors on any club, buffet, lounge or dining car operated on
15    an  electric,  gas  or  steam railway regularly operated by a
16    common carrier in this State, but shall not permit  the  sale
17    for  resale  of  any alcoholic liquors to any licensee within
18    this State.  A license shall be  obtained  for  each  car  in
19    which such sales are made.
20        (g)  A  boat  license  shall  allow the sale of alcoholic
21    liquor in individual drinks, on any passenger boat  regularly
22    operated  as  a  common  carrier  on navigable waters in this
23    State,  which  boat  maintains  a  public  dining   room   or
24    restaurant thereon.
25        (h)  A   non-beverage  user's  license  shall  allow  the
26    licensee  to  purchase  alcoholic  liquor  from  a   licensed
27    manufacturer or importing distributor, without the imposition
28    of any tax upon the business of such licensed manufacturer or
29    importing  distributor as to such alcoholic liquor to be used
30    by such licensee solely for  the  non-beverage  purposes  set
31    forth  in subsection (a) of Section 8-1 of this Act, and such
32    licenses shall be divided and classified and shall permit the
33    purchase, possession and use of limited and stated quantities
34    of alcoholic liquor as follows:
 
                            -8-                LRB9212731LDtm
 1    Class 1, not to exceed .......................    500 gallons
 2    Class 2, not to exceed .......................  1,000 gallons
 3    Class 3, not to exceed .......................  5,000 gallons
 4    Class 4, not to exceed ....................... 10,000 gallons
 5    Class 5, not to exceed ....................... 50,000 gallons
 6        (i)  A  wine-maker's  premises  license  shall  allow   a
 7    licensee  that  concurrently holds a first-class wine-maker's
 8    license to sell and offer for sale at retail in the  premises
 9    specified in such license not more than 50,000 gallons of the
10    first-class wine-maker's wine that is made at the first-class
11    wine-maker's   licensed   premises   per   year  for  use  or
12    consumption, but not for resale in any form.  A  wine-maker's
13    premises  license  shall  allow  a  licensee who concurrently
14    holds a second-class wine-maker's license to sell  and  offer
15    for  sale at retail in the premises specified in such license
16    up to 100,000 gallons of the second-class  wine-maker's  wine
17    that  is  made  at  the  second-class  wine-maker's  licensed
18    premises  per  year for use or consumption but not for resale
19    in any form.  Upon approval  from  the  State  Commission,  a
20    wine-maker's  premises  license  shall  allow the licensee to
21    sell and offer for sale  at  (i)  the  wine-maker's  licensed
22    premises and (ii) at up to 2 additional locations for use and
23    consumption  and not for resale.  Each location shall require
24    additional licensing per location as specified in Section 5-3
25    of this Act.
26        (j)  An airplane license shall  permit  the  licensee  to
27    import  alcoholic  liquors  into this State from any point in
28    the United States  outside  this  State  and  to  store  such
29    alcoholic  liquors in this State; to make wholesale purchases
30    of alcoholic liquors  directly  from  manufacturers,  foreign
31    importers,   distributors  and  importing  distributors  from
32    within or outside this State; and  to  store  such  alcoholic
33    liquors  in this State; provided that the above powers may be
34    exercised only in connection with the  importation,  purchase
 
                            -9-                LRB9212731LDtm
 1    or storage of alcoholic liquors to be sold or dispensed on an
 2    airplane;  and  provided  further,  that  airplane  licensees
 3    exercising   the   above  powers  shall  be  subject  to  all
 4    provisions  of  Article  VIII  of  this  Act  as  applied  to
 5    importing distributors.   An  airplane  licensee  shall  also
 6    permit  the  sale  or  dispensing of alcoholic liquors on any
 7    passenger airplane regularly operated by a common carrier  in
 8    this  State,  but shall not permit the sale for resale of any
 9    alcoholic liquors to  any  licensee  within  this  State.   A
10    single  airplane  license  shall  be  required  of an airline
11    company if liquor service is provided on  board  aircraft  in
12    this  State.   The  annual  fee  for such license shall be as
13    determined in Section 5-3.
14        (k)  A  foreign  importer's  license  shall  permit  such
15    licensee to purchase alcoholic liquor from Illinois  licensed
16    non-resident  dealers  only,  and  to import alcoholic liquor
17    other than in bulk from any point outside the  United  States
18    and  to  sell  such  alcoholic  liquor  to  Illinois licensed
19    importing distributors  and  to  no  one  else  in  Illinois;
20    provided  that  the foreign importer registers with the State
21    Commission every brand of alcoholic liquor that  it  proposes
22    to  sell  to Illinois licensees during the license period and
23    provided further that the foreign importer complies with  all
24    of  the provisions of Section 6-9 of this Act with respect to
25    registration of such Illinois licensees as may be granted the
26    right to sell such brands at wholesale.
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
 
                            -10-               LRB9212731LDtm
 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
 
                            -11-               LRB9212731LDtm
 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
 
                            -12-               LRB9212731LDtm
 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. 91-357,  eff.  7-29-99;  92-105,  eff.  1-1-02;
20    92-378, eff. 8-16-01; revised 10-10-01.)

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