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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 -2- LRB9212731LDtm 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 -3- LRB9212731LDtm 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.)