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92nd General Assembly

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Public Act 92-0378

HB0269 Enrolled                                LRB9202700LDpr

    AN ACT in relation to alcoholic liquor.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.  The Liquor Control Act of 1934 is amended by
changing Sections 1-3.12, 3-12, 5-1, 5-3, and 6-2 as follows:

    (235 ILCS 5/1-3.12) (from Ch. 43, par. 95.12)
    Sec. 1-3.12.  "Wine-maker" means a person engaged in  the
making  of  less  than  50,000 gallons of wine annually other
than a person issued a Second Class wine-maker's license.
(Source: P.A. 89-218, eff. 1-1-96.)

    (235 ILCS 5/3-12) (from Ch. 43, par. 108)
    Sec. 3-12.  Powers and duties of State Commission.
    (a)  The  State  commission  shall  have  the   following
powers, functions and duties:
         (1)  To  receive  applications and to issue licenses
    to   manufacturers,    foreign    importers,    importing
    distributors,   distributors,  non-resident  dealers,  on
    premise   consumption   retailers,   off   premise   sale
    retailers, special event retailer licensees, special  use
    permit  licenses,  auction  liquor  licenses,  brew pubs,
    caterer   retailers,   non-beverage   users,   railroads,
    including owners and lessees of sleeping, dining and cafe
    cars,  airplanes,  boats,  brokers,  and   wine   maker's
    premises   retail   licensees   in  accordance  with  the
    provisions of this Act, and to  suspend  or  revoke  such
    licenses  upon the State commission's determination, upon
    notice after hearing, that a licensee  has  violated  any
    provision  of  this  Act or any rule or regulation issued
    pursuant thereto and in effect for 30 days prior to  such
    violation.
         In  lieu  of  suspending  or revoking a license, the
    commission may impose a fine, upon the State commission's
    determination and notice after hearing, that  a  licensee
    has  violated  any  provision  of this Act or any rule or
    regulation issued pursuant thereto and in effect  for  30
    days  prior  to  such  violation.  The fine imposed under
    this paragraph may not exceed $500  for  each  violation.
    Each  day  that  the  activity,  which  gave  rise to the
    original fine, continues is a  separate  violation.   The
    maximum fine that may be levied against any licensee, for
    the  period of the license, shall not exceed $20,000. The
    maximum penalty that may be imposed  on  a  licensee  for
    selling  a  bottle  of  alcoholic  liquor  with a foreign
    object in it or serving from a bottle of alcoholic liquor
    with a foreign object in it shall be the  destruction  of
    that  bottle of alcoholic liquor for the first 10 bottles
    so sold or served from by the licensee.  For the eleventh
    bottle of alcoholic liquor  and  for  each  third  bottle
    thereafter  sold  or  served  from by the licensee with a
    foreign object in it, the maximum  penalty  that  may  be
    imposed  on the licensee is the destruction of the bottle
    of alcoholic liquor and a fine of up to $50.
         (2)  To adopt such rules and regulations  consistent
    with  the provisions of this Act which shall be necessary
    to carry on its functions and duties to the end that  the
    health,  safety and welfare of the People of the State of
    Illinois  shall  be  protected  and  temperance  in   the
    consumption  of  alcoholic  liquors shall be fostered and
    promoted and to  distribute  copies  of  such  rules  and
    regulations to all licensees affected thereby.
         (3)  To  call  upon other administrative departments
    of the State, county and  municipal  governments,  county
    and city police departments and upon prosecuting officers
    for such information and assistance as it deems necessary
    in the performance of its duties.
         (4)  To  recommend  to local commissioners rules and
    regulations, not  inconsistent  with  the  law,  for  the
    distribution and sale of alcoholic liquors throughout the
    State.
         (5)  To  inspect,  or  cause  to  be  inspected, any
    premises  in  this  State  where  alcoholic  liquors  are
    manufactured, distributed, warehoused, or sold.
         (5.1)  Upon receipt of a complaint  or  upon  having
    knowledge  that  any  person  is engaged in business as a
    manufacturer,  importing  distributor,  distributor,   or
    retailer  without  a  license or valid license, to notify
    the local liquor authority, file  a  complaint  with  the
    State's   Attorney's  Office  of  the  county  where  the
    incident occurred, or initiate an investigation with  the
    appropriate law enforcement officials.
         (5.2)  To issue a cease and desist notice to persons
    shipping  alcoholic  liquor  into this State from a point
    outside of this State if the shipment is in violation  of
    this Act.
         (5.3)  To  receive  complaints from licensees, local
    officials, law enforcement agencies,  organizations,  and
    persons   stating  that  any  licensee  has  been  or  is
    violating any provision of this  Act  or  the  rules  and
    regulations issued pursuant to this Act.  Such complaints
    shall  be  in  writing, signed and sworn to by the person
    making the complaint, and shall  state  with  specificity
    the  facts  in relation to the alleged violation.  If the
    Commission has reasonable grounds  to  believe  that  the
    complaint  substantially  alleges a violation of this Act
    or rules and regulations adopted pursuant to this Act, it
    shall conduct an investigation.  If, after conducting  an
    investigation,  the  Commission  is  satisfied  that  the
    alleged  violation  did  occur,  it  shall  proceed  with
    disciplinary  action  against the licensee as provided in
    this Act.
         (6)  To hear and determine appeals from orders of  a
    local  commission  in  accordance  with the provisions of
    this Act, as hereinafter set forth. Hearings  under  this
    subsection  shall  be  held in Springfield or Chicago, at
    whichever  location  is  the  more  convenient  for   the
    majority of persons who are parties to the hearing.
         (7)  The  commission shall establish uniform systems
    of accounts to be kept by  all  retail  licensees  having
    more   than   4  employees,  and  for  this  purpose  the
    commission may classify all retail licensees having  more
    than  4  employees  and  establish  a  uniform  system of
    accounts for each class and prescribe the manner in which
    such accounts shall be  kept.  The  commission  may  also
    prescribe  the forms of accounts to be kept by all retail
    licensees having more than 4 employees, including but not
    limited to accounts of  earnings  and  expenses  and  any
    distribution,  payment, or other distribution of earnings
    or assets, and any other  forms,  records  and  memoranda
    which  in the judgment of the commission may be necessary
    or appropriate to carry out any of the provisions of this
    Act, including but not limited to such forms, records and
    memoranda as will readily and accurately disclose at  all
    times  the  beneficial  ownership of such retail licensed
    business.  The accounts,  forms,  records  and  memoranda
    shall be available at all reasonable times for inspection
    by  authorized representatives of the State commission or
    by any local liquor control commissioner or  his  or  her
    authorized representative. The commission, may, from time
    to time, alter, amend or repeal, in whole or in part, any
    uniform  system  of  accounts,  or the form and manner of
    keeping accounts.
         (8)  In the conduct of any hearing authorized to  be
    held  by  the  commission,  to  examine,  or  cause to be
    examined, under oath, any licensee,  and  to  examine  or
    cause  to  be  examined  the  books  and  records of such
    licensee; to hear testimony and take proof  material  for
    its information in the discharge of its duties hereunder;
    to  administer or cause to be administered oaths; and for
    any such  purpose  to  issue  subpoena  or  subpoenas  to
    require the attendance of witnesses and the production of
    books,  which  shall  be  effective  in  any part of this
    State.
         Any Circuit Court may by order duly entered, require
    the  attendance  of  witnesses  and  the  production   of
    relevant books subpoenaed by the State commission and the
    court  may  compel  obedience to its order by proceedings
    for contempt.
         (9)  To investigate the administration  of  laws  in
    relation  to  alcoholic  liquors in this and other states
    and any foreign countries, and to recommend from time  to
    time  to  the  Governor  and  through  him  or her to the
    legislature of this State, such amendments to  this  Act,
    if  any,  as  it may think desirable and as will serve to
    further the general broad purposes contained  in  Section
    1-2 hereof.
         (10)  To adopt such rules and regulations consistent
    with  the provisions of this Act which shall be necessary
    for the control, sale or disposition of alcoholic  liquor
    damaged as a result of an accident, wreck, flood, fire or
    other similar occurrence.
         (11)  To   develop   industry  educational  programs
    related to responsible serving and selling,  particularly
    in   the  areas  of  overserving  consumers  and  illegal
    underage  purchasing   and   consumption   of   alcoholic
    beverages.
         (11.1)  To  license  persons providing education and
    training to alcohol beverage sellers  and  servers  under
    the  Beverage  Alcohol  Sellers and Servers Education and
    Training (BASSET) programs and to develop and  administer
    a  public  awareness  program  in  Illinois  to reduce or
    eliminate  the  illegal  purchase  and   consumption   of
    alcoholic  beverage  products by persons under the age of
    21.  Application for a license shall  be  made  on  forms
    provided by the State Commission.
         (12)  To   develop  and  maintain  a  repository  of
    license and regulatory information.
         (13)  On or before January 15, 1994, the  Commission
    shall  issue a written report to the Governor and General
    Assembly that is to be based on a comprehensive study  of
    the  impact on and implications for the State of Illinois
    of Section 1926 of the Federal ADAMHA Reorganization  Act
    of  1992  (Public Law 102-321).  This study shall address
    the extent to which Illinois currently complies with  the
    provisions  of  P.L.  102-321  and  the rules promulgated
    pursuant thereto.
         As part of its report, the Commission shall  provide
    the following essential information:
              (i)  the   number  of  retail  distributors  of
         tobacco products, by type and  geographic  area,  in
         the State;
              (ii)  the  number  of  reported  citations  and
         successful  convictions,  categorized  by  type  and
         location of retail distributor, for violation of the
         Sale  of  Tobacco  to  Minors  Act and the Smokeless
         Tobacco Limitation Act;
              (iii)  the  extent  and  nature  of   organized
         educational  and  governmental  activities  that are
         intended to promote, encourage or  otherwise  secure
         compliance  with any Illinois laws that prohibit the
         sale or distribution of tobacco products to  minors;
         and
              (iv)  the  level  of access and availability of
         tobacco products to individuals under the age of 18.
    To  obtain  the  data  necessary  to  comply   with   the
provisions  of  P.L.  102-321  and  the  requirements of this
report, the  Commission  shall  conduct  random,  unannounced
inspections    of   a   geographically   and   scientifically
representative  sample  of   the   State's   retail   tobacco
distributors.
    The  Commission  shall  consult  with  the  Department of
Public Health, the Department of Human Services, the Illinois
State Police and  any  other  executive  branch  agency,  and
private  organizations  that may have information relevant to
this report.
    The Commission  may  contract  with  the  Food  and  Drug
Administration  of  the  U.S.  Department of Health and Human
Services to conduct unannounced  investigations  of  Illinois
tobacco  vendors  to  determine  compliance with federal laws
relating to the illegal  sale  of  cigarettes  and  smokeless
tobacco products to persons under the age of 18.
    (b)  On  or  before  April 30, 1999, the Commission shall
present a written report to  the  Governor  and  the  General
Assembly that shall be based on a study of the impact of this
amendatory  Act  of  1998  on  the  business  of  soliciting,
selling,  and  shipping alcoholic liquor from outside of this
State directly to residents of this State.
    As part of its report, the Commission shall  provide  the
following information:
         (i)  the  amount  of  State  excise  and  sales  tax
    revenues  generated as a result of this amendatory Act of
    1998;
         (ii)  the amount of licensing  fees  received  as  a
    result of this amendatory Act of 1998;
         (iii)  the number of reported violations, the number
    of cease and desist notices issued by the Commission, the
    number  of notices of violations issued to the Department
    of Revenue, and the number of notices and  complaints  of
    violations to law enforcement officials.
(Source: P.A. 90-9, eff. 7-1-97; 90-432, eff. 1-1-98; 90-655,
eff.  7-30-98;  90-739,  eff.  8-13-98; 91-553, eff. 8-14-99;
91-922, eff. 7-7-00.)

    (235 ILCS 5/5-1) (from Ch. 43, par. 115)
    Sec. 5-1.  Licenses issued by the Illinois Liquor Control
Commission shall be of the following classes:
    (a)  Manufacturer's license - Class 1.  Distiller,  Class
2.   Rectifier,  Class 3.  Brewer, Class 4.  First Class Wine
Manufacturer,  Class  5.   Second  Class  Wine  Manufacturer,
Class  6.  First  Class  Winemaker,  Class  7.  Second  Class
Winemaker, Class 8.  Limited Wine Manufacturer,
    (b)  Distributor's license,
    (c)  Importing Distributor's license,
    (d)  Retailer's license,
    (e)  Special Event Retailer's license (not-for-profit),
    (f)  Railroad license,
    (g)  Boat license,
    (h)  Non-Beverage User's license,
    (i)  Wine-maker's premises retail license,
    (j)  Airplane license,
    (k)  Foreign importer's license,
    (l)  Broker's license,
    (m)  Non-resident dealer's license,
    (n)  Brew Pub license,
    (o)  Auction liquor license,
    (p)  Caterer retailer license,
    (q)  Special use permit license.
    No person, firm, partnership, corporation, or other legal
business  entity that is engaged in the manufacturing of wine
may concurrently obtain and hold a wine-maker's license and a
wine manufacturer's license.  Nothing in this provision,  nor
in  any subsequent provision of this Act shall be interpreted
as  forbidding  an  individual  or  firm  from   concurrently
obtaining and holding a Winemaker's and a Wine manufacturer's
license.
    (a)  A    manufacturer's    license   shall   allow   the
manufacture, importation in bulk, storage,  distribution  and
sale of alcoholic liquor to persons without the State, as may
be  permitted  by  law  and  to  licensees  in  this State as
follows:
    Class 1. A Distiller may make  sales  and  deliveries  of
alcoholic   liquor   to   distillers,  rectifiers,  importing
distributors, distributors and non-beverage users and  to  no
other licensees.
    Class  2. A Rectifier, who is not a distiller, as defined
herein, may make sales and deliveries of alcoholic liquor  to
rectifiers,  importing  distributors, distributors, retailers
and non-beverage users and to no other licensees.
    Class 3. A Brewer may make sales and deliveries  of  beer
to    importing    distributors,    distributors,    and   to
non-licensees, and to retailers provided the  brewer  obtains
an  importing  distributor's license or distributor's license
in accordance with the provisions of this Act.
    Class 4. A first class wine-manufacturer may  make  sales
and  deliveries up to of between 40,000 and 50,000 gallons of
wine   to   manufacturers,   importing    distributors    and
distributors, and to no other licensees.
    Class  5. A second class Wine manufacturer may make sales
and deliveries  of  more  than  50,000  gallons  of  wine  to
manufacturers, importing distributors and distributors and to
no other licensees.
    Class  6.  A first-class wine-maker's license shall allow
the manufacture of up to 50,000 less than 20,000  gallons  of
wine  per  year,  and  the  storage  and sale of such wine to
distributors and  retailers  in  the  State  and  to  persons
without the State, as may be permitted by law.  A first-class
wine-maker's  license  shall  allow  the sale of no more than
5,000 gallons of the licensee's wine to retailers.  The State
Commission shall  issue  only  one  first-class  wine-maker's
license  to  any  person,  firm, partnership, corporation, or
other legal business entity that is engaged in the making  of
less  than 50,000 gallons of wine annually that applies for a
first-class wine-maker's license.  No subsidiary or affiliate
thereof,  nor  any  officer,  associate,   member,   partner,
representative, employee, agent, or shareholder may be issued
an additional wine-maker's license by the State Commission.
    Class  7. A second-class wine-maker's license shall allow
the manufacture of between up to 50,000 and  100,000  gallons
of  wine  per  year, and the storage and sale of such wine to
distributors in this State and to persons without the  State,
as  may  be  permitted  by  law.  A second-class wine-maker's
license shall allow the sale of no more than  10,000  gallons
of  the  licensee's  wine  directly  to retailers.  The State
Commission shall issue  only  one  second-class  wine-maker's
license  to  any  person,  firm, partnership, corporation, or
other legal business entity that is engaged in the making  of
less than 100,000 gallons of wine annually that applies for a
second-class   wine-maker's   license.    No   subsidiary  or
affiliate  thereof,  or  any  officer,   associate,   member,
partner,  representative, employee, agent, or shareholder may
be issued an additional wine-maker's  license  by  the  State
Commission.
    Class  8.  A limited wine-manufacturer may make sales and
deliveries not to exceed 40,000 gallons of wine per  year  to
distributors,  and  to  non-licensees  in accordance with the
provisions of this Act.
    (a-1)  A manufacturer which is licensed in this State  to
make  sales  or  deliveries  of  alcoholic  liquor  and which
enlists agents, representatives, or individuals acting on its
behalf who  contact  licensed  retailers  on  a  regular  and
continual  basis  in  this  State must register those agents,
representatives, or persons acting on  its  behalf  with  the
State Commission.
    Registration   of  agents,  representatives,  or  persons
acting on behalf of a manufacturer is fulfilled by submitting
a form to the Commission.  The form shall be developed by the
Commission and shall include the  name  and  address  of  the
applicant, the name and address of the manufacturer he or she
represents,  the  territory  or  areas assigned to sell to or
discuss pricing terms of  alcoholic  liquor,  and  any  other
questions  deemed  appropriate and necessary.  All statements
in the forms required to be made by law or by rule  shall  be
deemed  material,  and any person who knowingly misstates any
material fact under oath in an application  is  guilty  of  a
Class   B   misdemeanor.    Fraud,  misrepresentation,  false
statements, misleading statements, evasions,  or  suppression
of  material  facts  in  the  securing  of a registration are
grounds for suspension or revocation of the registration.
    (b)  A distributor's license shall  allow  the  wholesale
purchase  and  storage  of  alcoholic  liquors  and  sale  of
alcoholic  liquors  to licensees in this State and to persons
without the State, as may be permitted by law.
    (c)  An importing distributor's license may be issued  to
and  held  by  those only who are duly licensed distributors,
upon  the  filing  of  an  application  by  a  duly  licensed
distributor, with the Commission and  the  Commission  shall,
without  the  payment  of  any  fee,  immediately  issue such
importing distributor's license to the applicant, which shall
allow the importation of alcoholic  liquor  by  the  licensee
into  this  State from any point in the United States outside
this State, and the purchase of alcoholic liquor in  barrels,
casks  or  other  bulk  containers  and  the bottling of such
alcoholic liquors before resale thereof, but all  bottles  or
containers  so  filled  shall be sealed, labeled, stamped and
otherwise made to  comply  with  all  provisions,  rules  and
regulations  governing  manufacturers  in the preparation and
bottling of alcoholic liquors.  The  importing  distributor's
license  shall  permit  such  licensee  to purchase alcoholic
liquor  from  Illinois  licensed  non-resident  dealers   and
foreign importers only.
    (d)  A  retailer's  license  shall  allow the licensee to
sell and offer for sale  at  retail,  only  in  the  premises
specified  in  such  license,  alcoholic  liquor  for  use or
consumption, but not for resale in any  form:  Provided  that
any retail license issued to a manufacturer shall only permit
such  manufacturer  to  sell  beer  at retail on the premises
actually occupied by such manufacturer.
    After January  1,  1995  there  shall  be  2  classes  of
licenses issued under a retailers license.
         (1)  A  "retailers  on  premise consumption license"
    shall allow the licensee to sell and offer  for  sale  at
    retail,  only  on  the premises specified in the license,
    alcoholic liquor for use or consumption on  the  premises
    or  on  and  off  the premises, but not for resale in any
    form.
         (2)  An "off premise sale license" shall  allow  the
    licensee  to sell, or offer for sale at retail, alcoholic
    liquor intended only for off premise consumption and  not
    for resale in any form.
    Notwithstanding  any  other  provision of this subsection
(d), a retail  licensee  may  sell  alcoholic  liquors  to  a
special  event  retailer  licensee  for  resale to the extent
permitted under subsection (e).
    (e)  A special event retailer's license  (not-for-profit)
shall  permit the licensee to purchase alcoholic liquors from
an  Illinois  licensed   distributor  (unless  the   licensee
purchases less than $500 of alcoholic liquors for the special
event,  in which case the licensee may purchase the alcoholic
liquors  from  a  licensed  retailer)  and  shall  allow  the
licensee to sell and offer for  sale,  at  retail,  alcoholic
liquors  for  use  or  consumption, but not for resale in any
form and only at the  location  and  on  the  specific  dates
designated   for  the  special  event  in  the  license.   An
applicant for a  special  event  retailer  license  must  (i)
furnish  with  the  application:   (A) a resale number issued
under Section 2c of the  Retailers'  Occupation  Tax  Act  or
evidence that the applicant is registered under Section 2a of
the  Retailers'  Occupation  Tax  Act,  (B)  a current, valid
exemption identification number issued under  Section  1g  of
the Retailers' Occupation Tax Act, and a certification to the
Commission  that  the purchase of alcoholic liquors will be a
tax-exempt purchase, or (C) a statement that the applicant is
not registered under Section 2a of the Retailers'  Occupation
Tax  Act,  does  not hold a resale number under Section 2c of
the Retailers' Occupation Tax  Act,  and  does  not  hold  an
exemption   number   under   Section  1g  of  the  Retailers'
Occupation Tax Act, in which event the Commission  shall  set
forth  on the special event retailer's license a statement to
that  effect;  (ii)  submit  with   the   application   proof
satisfactory  to the State Commission that the applicant will
provide dram shop liability insurance in the maximum  limits;
and  (iii)  show  proof  satisfactory to the State Commission
that the applicant has obtained local authority approval.
    (f)  A railroad license  shall  permit  the  licensee  to
import  alcoholic  liquors  into this State from any point in
the United States  outside  this  State  and  to  store  such
alcoholic  liquors in this State; to make wholesale purchases
of alcoholic liquors  directly  from  manufacturers,  foreign
importers,   distributors  and  importing  distributors  from
within or outside this State; and  to  store  such  alcoholic
liquors  in this State; provided that the above powers may be
exercised only in connection with the  importation,  purchase
or  storage of alcoholic liquors to be sold or dispensed on a
club, buffet, lounge or dining car operated on  an  electric,
gas  or  steam  railway  in this State; and provided further,
that railroad licensees exercising the above powers shall  be
subject  to  all  provisions  of  Article VIII of this Act as
applied to importing distributors.  A railroad license  shall
also  permit  the  licensee  to  sell  or  dispense alcoholic
liquors on any club, buffet, lounge or dining car operated on
an electric, gas or steam railway  regularly  operated  by  a
common  carrier  in this State, but shall not permit the sale
for resale of any alcoholic liquors to  any  licensee  within
this  State.   A  license  shall  be obtained for each car in
which such sales are made.
    (g)  A boat license shall allow  the  sale  of  alcoholic
liquor  in individual drinks, on any passenger boat regularly
operated as a common carrier  on  navigable  waters  in  this
State,   which   boat  maintains  a  public  dining  room  or
restaurant thereon.
    (h)  A  non-beverage  user's  license  shall  allow   the
licensee   to  purchase  alcoholic  liquor  from  a  licensed
manufacturer or importing distributor, without the imposition
of any tax upon the business of such licensed manufacturer or
importing distributor as to such alcoholic liquor to be  used
by  such  licensee  solely  for the non-beverage purposes set
forth in subsection (a) of Section 8-1 of this Act, and  such
licenses shall be divided and classified and shall permit the
purchase, possession and use of limited and stated quantities
of alcoholic liquor as follows:
Class 1, not to exceed .......................    500 gallons
Class 2, not to exceed .......................  1,000 gallons
Class 3, not to exceed .......................  5,000 gallons
Class 4, not to exceed ....................... 10,000 gallons
Class 5, not to exceed ....................... 50,000 gallons
    (i)  A wine-maker's premises retail license shall allow a
the   licensee   that   concurrently   holds   a  first-class
wine-maker's license to sell and offer for sale at retail  in
the  premises  specified in such license not more than 50,000
gallons of the first-class wine-maker's wine that is made  at
the  first-class  wine-maker's licensed premises per year for
use or consumption, but  not  for  resale  in  any  form.   A
wine-maker's  premises  license  shall  allow  a licensee who
concurrently holds a  second-class  wine-maker's  license  to
sell  and  offer for sale at retail in the premises specified
in such license up to 100,000  gallons  of  the  second-class
wine-maker's   wine   that   is   made  at  the  second-class
wine-maker's  licensed  premises  per   year   for   use   or
consumption  but  not  for resale in any form.  Upon approval
from the State Commission, a  wine-maker's  premises  license
shall  allow  the  licensee to sell and offer for sale at (i)
the wine-maker's licensed  premises  and  (ii)  at  up  to  2
additional  locations  for  use  and  consumption and not for
resale.  Each location shall require additional licensing per
location as specified in Section 5-3  of  this  Act.  ;  this
license  shall  be  issued  only  to  a  person licensed as a
first-class or second-class wine-maker. A wine-maker's retail
licensee, upon receiving permission from the Commission,  may
conduct  business  at a second location that is separate from
the location specified in its  wine-maker's  retail  license.
One wine-maker's retail license-second location may be issued
to  a  wine-maker's  retail licensee allowing the licensee to
sell and offer for sale at retail in the  premises  specified
in  the  wine-maker's  retail  license-second  location up to
50,000 gallons of wine that was produced  at  the  licensee's
first  location  per year for use and consumption and not for
resale.
    (j)  An airplane license shall  permit  the  licensee  to
import  alcoholic  liquors  into this State from any point in
the United States  outside  this  State  and  to  store  such
alcoholic  liquors in this State; to make wholesale purchases
of alcoholic liquors  directly  from  manufacturers,  foreign
importers,   distributors  and  importing  distributors  from
within or outside this State; and  to  store  such  alcoholic
liquors  in this State; provided that the above powers may be
exercised only in connection with the  importation,  purchase
or storage of alcoholic liquors to be sold or dispensed on an
airplane;  and  provided  further,  that  airplane  licensees
exercising   the   above  powers  shall  be  subject  to  all
provisions  of  Article  VIII  of  this  Act  as  applied  to
importing distributors.   An  airplane  licensee  shall  also
permit  the  sale  or  dispensing of alcoholic liquors on any
passenger airplane regularly operated by a common carrier  in
this  State,  but shall not permit the sale for resale of any
alcoholic liquors to  any  licensee  within  this  State.   A
single  airplane  license  shall  be  required  of an airline
company if liquor service is provided on  board  aircraft  in
this  State.   The  annual  fee  for such license shall be as
determined in Section 5-3.
    (k)  A  foreign  importer's  license  shall  permit  such
licensee to purchase alcoholic liquor from Illinois  licensed
non-resident  dealers  only,  and  to import alcoholic liquor
other than in bulk from any point outside the  United  States
and  to  sell  such  alcoholic  liquor  to  Illinois licensed
importing distributors and to no one else in Illinois.
    (l) (i)  A broker's license  shall  be  required  of  all
persons  who  solicit  orders  for, offer to sell or offer to
supply  alcoholic  liquor  to  retailers  in  the  State   of
Illinois,  or  who  offer to retailers to ship or cause to be
shipped or  to  make  contact  with  distillers,  rectifiers,
brewers or manufacturers or any other party within or without
the  State  of  Illinois  in  order that alcoholic liquors be
shipped to a distributor, importing  distributor  or  foreign
importer,  whether  such solicitation or offer is consummated
within or without the State of Illinois.
    No holder of a retailer's license issued by the  Illinois
Liquor  Control  Commission  shall  purchase  or  receive any
alcoholic liquor,  the  order  for  which  was  solicited  or
offered  for  sale  to  such  retailer by a broker unless the
broker is the holder of a valid broker's license.
    The broker shall, upon the acceptance by  a  retailer  of
the  broker's  solicitation  of  an order or offer to sell or
supply  or  deliver  or  have  delivered  alcoholic  liquors,
promptly forward to the Illinois Liquor Control Commission  a
notification   of  said  transaction  in  such  form  as  the
Commission may by regulations prescribe.
    (ii)  A broker's license shall be required  of  a  person
within  this  State, other than a retail licensee, who, for a
fee or commission, promotes, solicits, or accepts orders  for
alcoholic  liquor, for use or consumption and not for resale,
to be shipped from this  State  and  delivered  to  residents
outside  of this State by an express company, common carrier,
or contract carrier. This  Section  does  not  apply  to  any
person  who promotes, solicits, or accepts orders for wine as
specifically authorized in Section 6-29 of this Act.
    A broker's license under this subsection  (1)  shall  not
entitle  the  holder to buy or sell any alcoholic liquors for
his own account or to take or deliver title to such alcoholic
liquors.
    This subsection (1)  shall  not  apply  to  distributors,
employees of distributors, or employees of a manufacturer who
has  registered the trademark, brand or name of the alcoholic
liquor pursuant to Section 6-9 of this Act, and who regularly
sells such alcoholic liquor in the State of Illinois only  to
its registrants thereunder.
    Any   agent,   representative,   or   person  subject  to
registration pursuant to subsection  (a-1)  of  this  Section
shall not be eligible to receive a broker's license.
    (m)  A  non-resident  dealer's  license shall permit such
licensee to ship into and  warehouse  alcoholic  liquor  into
this  State from any point outside of this State, and to sell
such alcoholic liquor to Illinois licensed foreign  importers
and  importing distributors and to no one else in this State;
provided that said non-resident dealer  shall  register  with
the  Illinois  Liquor Control Commission each and every brand
of alcoholic liquor which it proposes  to  sell  to  Illinois
licensees  during  the  license  period; and further provided
that it shall comply with all of the  provisions  of  Section
6-9  hereof  with  respect  to  registration of such Illinois
licensees as may be granted the right to sell such brands  at
wholesale.
    (n)  A  brew  pub  license  shall  allow  the licensee to
manufacture beer  only  on  the  premises  specified  in  the
license,  to  make  sales  of  the  beer  manufactured on the
premises to  importing  distributors,  distributors,  and  to
non-licensees for use and consumption, to store the beer upon
the  premises,  and to sell and offer for sale at retail from
the licensed premises, provided  that  a  brew  pub  licensee
shall  not sell for off-premises consumption more than 50,000
gallons per year.
    (o)  A caterer retailer license shall allow the holder to
serve alcoholic liquors as  an  incidental  part  of  a  food
service that serves prepared meals which excludes the serving
of  snacks as the primary meal, either on or off-site whether
licensed or unlicensed.
    (p)  An auction liquor license shall allow  the  licensee
to  sell  and  offer for sale at auction wine and spirits for
use or consumption, or  for  resale  by  an  Illinois  liquor
licensee  in  accordance  with  provisions  of  this Act.  An
auction liquor license will be issued to a person and it will
permit the  auction  liquor  licensee  to  hold  the  auction
anywhere  in  the  State.   An auction liquor license must be
obtained for each auction at least 14 days in advance of  the
auction date.
    (q)  A special use permit license shall allow an Illinois
licensed  retailer  to  transfer  a  portion of its alcoholic
liquor inventory from its retail  licensed  premises  to  the
premises specified in the license hereby created, and to sell
or  offer  for sale at retail, only in the premises specified
in the license  hereby  created,  the  transferred  alcoholic
liquor  for  use  or  consumption,  but not for resale in any
form.  A special use permit license may be  granted  for  the
following  time periods: one day or less; 2 or more days to a
maximum of 15 days per location in any 12 month  period.   An
applicant for the special use permit license must also submit
with   the   application  proof  satisfactory  to  the  State
Commission  that  the  applicant  will  provide   dram   shop
liability  insurance  to  the  maximum  limits and have local
authority approval.
(Source:  P.A.  90-77,  eff.  7-8-97;  90-432,  eff.  1-1-98;
90-596, eff. 6-24-98;  90-655,  eff.  7-30-98;  90-739,  eff.
8-13-98; 91-357, eff. 7-29-99.)

    (235 ILCS 5/5-3) (from Ch. 43, par. 118)
    Sec.  5-3.   License  fees.  Except as otherwise provided
herein,  at  the  time  application  is  made  to  the  State
Commission for a license of any class,  the  applicant  shall
pay  to the State Commission the fee hereinafter provided for
the kind of license applied for.
    The fee for licenses issued by the State Commission shall
be as follows:
    For a manufacturer's license:
    Class 1. Distiller ...........................     $3,600
    Class 2. Rectifier ...........................      3,600
    Class 3. Brewer ..............................        900
    Class 4. First-class Wine Manufacturer .......        600
    Class 5. Second-class
         Wine Manufacturer .......................      1,200
    Class 6. First-class wine-maker ..............    600 240
    Class 7. Second-class wine-maker .............   1200 480
    Class 8.  Limited Wine Manufacturer...........        120
    For a Brew Pub License .......................      1,050
    For a caterer retailer's license..............        200
    For a foreign importer's license .............         25
    For an importing distributor's license .......         25
    For a distributor's license ..................        270
    For a non-resident dealer's license
         (500,000 gallons or over) ...............        270
    For a non-resident dealer's license
         (under 500,000 gallons) .................         90
    For a wine-maker's premises retail license ...        100
    For a wine-maker's premises retail license,
         second location .........................        350
    For a wine-maker's premises license,
         third location ..........................        350
    For a retailer's license .....................        175
    For a special event retailer's license,
         (not-for-profit) ........................         25
    For a special use permit license,
         one day only ............................         50
         2 days or more ..........................        100
    For a railroad license .......................         60
    For a boat license ...........................        180
    For an airplane license, times the
         licensee's maximum number of aircraft
         in flight, serving liquor over the
         State at any given time, which either
         originate, terminate, or make
         an intermediate stop in the State .......         60
    For a non-beverage user's license:
         Class 1 .................................         24
         Class 2 .................................         60
         Class 3 .................................        120
         Class 4 .................................        240
         Class 5 .................................        600
    For a broker's license .......................        600
    For an auction liquor license ................         50
    Fees collected under this Section shall be paid into  the
Dram  Shop  Fund.   Beginning June 30, 1990 and on June 30 of
each subsequent year, any balance over  $5,000,000  remaining
in  the  Dram  Shop  Fund  shall  be credited to State liquor
licensees and applied against their  fees  for  State  liquor
licenses for the following year.  The amount credited to each
licensee  shall  be  a proportion of the  balance in the Dram
Fund that is the same as the proportion of  the  license  fee
paid  by  the  licensee  under this Section for the period in
which the balance was accumulated to the aggregate fees  paid
by all licensees during that period.
    No  fee  shall  be  paid for licenses issued by the State
Commission to the following non-beverage users:
         (a)  Hospitals, sanitariums, or clinics  when  their
    use   of   alcoholic  liquor  is  exclusively  medicinal,
    mechanical or scientific.
         (b)  Universities, colleges of learning  or  schools
    when   their  use  of  alcoholic  liquor  is  exclusively
    medicinal, mechanical or scientific.
         (c)  Laboratories when their use is exclusively  for
    the purpose of scientific research.
(Source: P.A. 90-77, eff. 7-8-97; 91-25, eff. 6-9-99; 91-357,
eff. 7-29-99.)
    (235 ILCS 5/6-2) (from Ch. 43, par. 120)
    Sec.  6-2.   Issuance  of  licenses  to  certain  persons
prohibited.
    (a)  Except  as  otherwise provided in subsection (b), no
license of any kind issued by the  State  Commission  or  any
local commission shall be issued to:
         (1)  A  person  who  is  not a resident of any city,
    village or county in which the premises  covered  by  the
    license  are  located; except in case of railroad or boat
    licenses.;
         (2)  A person who  is  not  of  good  character  and
    reputation in the community in which he resides.;
         (3)  A  person  who  is  not a citizen of the United
    States.;
         (4)  A person who has been  convicted  of  a  felony
    under  any  Federal  or  State law, unless the Commission
    determines  that  such  person  has   been   sufficiently
    rehabilitated   to   warrant   the   public  trust  after
    considering  matters   set   forth   in   such   person's
    application  and  the  Commission's  investigation.   The
    burden  of proof of sufficient rehabilitation shall be on
    the applicant.;
         (5)  A person who has been convicted  of  being  the
    keeper or is keeping a house of ill fame.;
         (6)  A person who has been convicted of pandering or
    other   crime  or  misdemeanor  opposed  to  decency  and
    morality.;
         (7)  A person whose license issued  under  this  Act
    has been revoked for cause.;
         (8)  A  person  who  at  the time of application for
    renewal of any license  issued  hereunder  would  not  be
    eligible for such license upon a first application.;
         (9)  A  copartnership,  if  any  general partnership
    thereof, or any limited partnership thereof, owning  more
    than 5% of the aggregate limited partner interest in such
    copartnership  would not be eligible to receive a license
    hereunder for any reason other than residence within  the
    political  subdivision,  unless  residency is required by
    local ordinance.;
         (10)  A corporation,  if  any  officer,  manager  or
    director  thereof,  or    any stockholder or stockholders
    owning in the aggregate more than 5% of the stock of such
    corporation, would not be eligible to receive  a  license
    hereunder  for  any  reason  other  than  citizenship and
    residence within the political subdivision.;
         (10a)  A corporation unless it  is  incorporated  in
    Illinois,  or unless it is a foreign corporation which is
    qualified under the Business Corporation Act of  1983  to
    transact business in Illinois.;
         (11)  A  person whose place of business is conducted
    by a  manager  or  agent  unless  the  manager  or  agent
    possesses   the   same  qualifications  required  by  the
    licensee.;
         (12)  A person who has been convicted of a violation
    of any Federal or State law concerning  the  manufacture,
    possession or sale of alcoholic liquor, subsequent to the
    passage  of  this Act or has forfeited his bond to appear
    in court to answer charges for any such violation.;
         (13)  A person who does  not  beneficially  own  the
    premises  for which a license is sought, or does not have
    a lease thereon for the full period for which the license
    is to be issued.;
         (14)  Any law enforcing public  official,  including
    members  of  local liquor control commissions, any mayor,
    alderman, or member of the city  council  or  commission,
    any  president  of  the  village  board  of trustees, any
    member of a village board of trustees, or  any  president
    or  member  of a county board; and no such official shall
    be interested  directly  in  the  manufacture,  sale,  or
    distribution  of  alcoholic liquor, except that a license
    may be granted to such official in relation  to  premises
    that  which  are not located within the territory subject
    to the jurisdiction of that official if the  issuance  of
    such  license  is  approved  by  the State Liquor Control
    Commission and except that a license may be granted, in a
    city or village with a population of 50,000 or  less,  to
    any  alderman,  member  of a city council, or member of a
    village board of trustees in relation  to  premises  that
    are   located   within   the  territory  subject  to  the
    jurisdiction  of  that  official  if  (i)  the  sale   of
    alcoholic liquor pursuant to the license is incidental to
    the  selling of food, (ii) the issuance of the license is
    approved by the State Commission, (iii) the  issuance  of
    the  license  is  in accordance with all applicable local
    ordinances in effect where the premises are located,  and
    (iv)  the  official  granted  a  license does not vote on
    alcoholic liquor  issues  pending  before  the  board  or
    council to which the license holder is elected.;
         (15)  A  person who is not a beneficial owner of the
    business to be operated by the licensee.;
         (16)  A person who has been convicted of a  gambling
    offense  as  proscribed  by  any  of  subsections (a) (3)
    through (a) (11) of Section 28-1 of, or as proscribed  by
    Section  28-1.1 or 28-3 of, the Criminal Code of 1961, or
    as proscribed  by  a  statute  replaced  by  any  of  the
    aforesaid statutory provisions.;
         (17)  A  person or entity to whom a federal wagering
    stamp has been issued by the federal  government,  unless
    the  person  or entity is eligible to be issued a license
    under the Raffles Act or the Illinois Pull Tabs  and  Jar
    Games Act.
    (b)  A  criminal  conviction  of  a  corporation  is  not
grounds  for  the  denial,  suspension,  or  revocation  of a
license applied  for  or  held  by  the  corporation  if  the
criminal  conviction was not the result of a violation of any
federal or State law concerning the  manufacture,  possession
or  sale  of  alcoholic  liquor,  the offense that led to the
conviction did not  result  in  any  financial  gain  to  the
corporation   and   the   corporation   has   terminated  its
relationship  with  each  director,  officer,  employee,   or
controlling shareholder whose actions directly contributed to
the  conviction  of  the  corporation.  The  Commission shall
determine if all provisions of this subsection (b) have  been
met  before  any  action  on  the  corporation's  license  is
initiated.
(Source: P.A. 88-652, eff. 9-16-94; 89-250, eff. 1-1-96.)

    Section  99.  Effective  date. This Act takes effect upon
becoming law.
    Passed in the General Assembly May 23, 2001.
    Approved August 16, 2001.

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