Rep. Michael J. Zalewski

Filed: 4/3/2019

 

 


 

 


 
10100HB2675ham001LRB101 07840 RPS 58994 a

1
AMENDMENT TO HOUSE BILL 2675

2    AMENDMENT NO. ______. Amend House Bill 2675 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 1-3.40, 3-12, 5-1, 5-3, 6-4, and 6-31 as
6follows:
 
7    (235 ILCS 5/1-3.40)
8    Sec. 1-3.40. Manufacturer class license holder.
9"Manufacturer class license holder" means any holder of a
10Manufacturer's license as provided in Section 5-1 of this Act.
11The Manufacturer's licenses are: a Class 1. Distiller, a Class
122. Rectifier, a Class 3. Brewer, a Class 4. First Class Wine
13Manufacturer, a Class 5. Second Class Wine Manufacturer, a
14Class 6. First Class Winemaker, a Class 7. Second Class
15Winemaker, a Class 8. Limited Wine Manufacturer, a Class 9.
16Class 1 Craft Distiller, a Class 10. Class 2 Craft Distiller,

 

 

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1and a Class 11. Class 1 Brewer, and a Class 12. Class 2 Brewer,
210. Craft Brewer and any future Manufacturer's licenses
3established by law.
4(Source: P.A. 99-282, eff. 8-5-15; 99-642, eff. 7-28-16.)
 
5    (235 ILCS 5/3-12)
6    Sec. 3-12. Powers and duties of State Commission.
7    (a) The State Commission shall have the following powers,
8functions, and duties:
9        (1) To receive applications and to issue licenses to
10    manufacturers, foreign importers, importing distributors,
11    distributors, non-resident dealers, on premise consumption
12    retailers, off premise sale retailers, special event
13    retailer licensees, special use permit licenses, auction
14    liquor licenses, brew pubs, caterer retailers,
15    non-beverage users, railroads, including owners and
16    lessees of sleeping, dining and cafe cars, airplanes,
17    boats, brokers, and wine maker's premises licensees in
18    accordance with the provisions of this Act, and to suspend
19    or revoke such licenses upon the State Commission's
20    determination, upon notice after hearing, that a licensee
21    has violated any provision of this Act or any rule or
22    regulation issued pursuant thereto and in effect for 30
23    days prior to such violation. Except in the case of an
24    action taken pursuant to a violation of Section 6-3, 6-5,
25    or 6-9, any action by the State Commission to suspend or

 

 

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1    revoke a licensee's license may be limited to the license
2    for the specific premises where the violation occurred. An
3    action for a violation of this Act shall be commenced by
4    the State Commission within 2 years after the date the
5    State Commission becomes aware of the violation.
6        In lieu of suspending or revoking a license, the
7    commission may impose a fine, upon the State Commission's
8    determination and notice after hearing, that a licensee has
9    violated any provision of this Act or any rule or
10    regulation issued pursuant thereto and in effect for 30
11    days prior to such violation.
12        For the purpose of this paragraph (1), when determining
13    multiple violations for the sale of alcohol to a person
14    under the age of 21, a second or subsequent violation for
15    the sale of alcohol to a person under the age of 21 shall
16    only be considered if it was committed within 5 years after
17    the date when a prior violation for the sale of alcohol to
18    a person under the age of 21 was committed.
19        The fine imposed under this paragraph may not exceed
20    $500 for each violation. Each day that the activity, which
21    gave rise to the original fine, continues is a separate
22    violation. The maximum fine that may be levied against any
23    licensee, for the period of the license, shall not exceed
24    $20,000. The maximum penalty that may be imposed on a
25    licensee for selling a bottle of alcoholic liquor with a
26    foreign object in it or serving from a bottle of alcoholic

 

 

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1    liquor with a foreign object in it shall be the destruction
2    of that bottle of alcoholic liquor for the first 10 bottles
3    so sold or served from by the licensee. For the eleventh
4    bottle of alcoholic liquor and for each third bottle
5    thereafter sold or served from by the licensee with a
6    foreign object in it, the maximum penalty that may be
7    imposed on the licensee is the destruction of the bottle of
8    alcoholic liquor and a fine of up to $50.
9        Any notice issued by the State Commission to a licensee
10    for a violation of this Act or any notice with respect to
11    settlement or offer in compromise shall include the field
12    report, photographs, and any other supporting
13    documentation necessary to reasonably inform the licensee
14    of the nature and extent of the violation or the conduct
15    alleged to have occurred. The failure to include such
16    required documentation shall result in the dismissal of the
17    action.
18        (2) To adopt such rules and regulations consistent with
19    the provisions of this Act which shall be necessary to
20    carry on its functions and duties to the end that the
21    health, safety and welfare of the People of the State of
22    Illinois shall be protected and temperance in the
23    consumption of alcoholic liquors shall be fostered and
24    promoted and to distribute copies of such rules and
25    regulations to all licensees affected thereby.
26        (3) To call upon other administrative departments of

 

 

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1    the State, county and municipal governments, county and
2    city police departments and upon prosecuting officers for
3    such information and assistance as it deems necessary in
4    the performance of its duties.
5        (4) To recommend to local commissioners rules and
6    regulations, not inconsistent with the law, for the
7    distribution and sale of alcoholic liquors throughout the
8    State.
9        (5) To inspect, or cause to be inspected, any premises
10    in this State where alcoholic liquors are manufactured,
11    distributed, warehoused, or sold. Nothing in this Act
12    authorizes an agent of the Commission to inspect private
13    areas within the premises without reasonable suspicion or a
14    warrant during an inspection. "Private areas" include, but
15    are not limited to, safes, personal property, and closed
16    desks.
17        (5.1) Upon receipt of a complaint or upon having
18    knowledge that any person is engaged in business as a
19    manufacturer, importing distributor, distributor, or
20    retailer without a license or valid license, to notify the
21    local liquor authority, file a complaint with the State's
22    Attorney's Office of the county where the incident
23    occurred, or initiate an investigation with the
24    appropriate law enforcement officials.
25        (5.2) To issue a cease and desist notice to persons
26    shipping alcoholic liquor into this State from a point

 

 

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1    outside of this State if the shipment is in violation of
2    this Act.
3        (5.3) To receive complaints from licensees, local
4    officials, law enforcement agencies, organizations, and
5    persons stating that any licensee has been or is violating
6    any provision of this Act or the rules and regulations
7    issued pursuant to this Act. Such complaints shall be in
8    writing, signed and sworn to by the person making the
9    complaint, and shall state with specificity the facts in
10    relation to the alleged violation. If the Commission has
11    reasonable grounds to believe that the complaint
12    substantially alleges a violation of this Act or rules and
13    regulations adopted pursuant to this Act, it shall conduct
14    an investigation. If, after conducting an investigation,
15    the Commission is satisfied that the alleged violation did
16    occur, it shall proceed with disciplinary action against
17    the licensee as provided in this Act.
18        (6) To hear and determine appeals from orders of a
19    local commission in accordance with the provisions of this
20    Act, as hereinafter set forth. Hearings under this
21    subsection shall be held in Springfield or Chicago, at
22    whichever location is the more convenient for the majority
23    of persons who are parties to the hearing.
24        (7) The commission shall establish uniform systems of
25    accounts to be kept by all retail licensees having more
26    than 4 employees, and for this purpose the commission may

 

 

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1    classify all retail licensees having more than 4 employees
2    and establish a uniform system of accounts for each class
3    and prescribe the manner in which such accounts shall be
4    kept. The commission may also prescribe the forms of
5    accounts to be kept by all retail licensees having more
6    than 4 employees, including but not limited to accounts of
7    earnings and expenses and any distribution, payment, or
8    other distribution of earnings or assets, and any other
9    forms, records and memoranda which in the judgment of the
10    commission may be necessary or appropriate to carry out any
11    of the provisions of this Act, including but not limited to
12    such forms, records and memoranda as will readily and
13    accurately disclose at all times the beneficial ownership
14    of such retail licensed business. The accounts, forms,
15    records and memoranda shall be available at all reasonable
16    times for inspection by authorized representatives of the
17    State Commission or by any local liquor control
18    commissioner or his or her authorized representative. The
19    commission, may, from time to time, alter, amend or repeal,
20    in whole or in part, any uniform system of accounts, or the
21    form and manner of keeping accounts.
22        (8) In the conduct of any hearing authorized to be held
23    by the commission, to appoint, at the commission's
24    discretion, hearing officers to conduct hearings involving
25    complex issues or issues that will require a protracted
26    period of time to resolve, to examine, or cause to be

 

 

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1    examined, under oath, any licensee, and to examine or cause
2    to be examined the books and records of such licensee; to
3    hear testimony and take proof material for its information
4    in the discharge of its duties hereunder; to administer or
5    cause to be administered oaths; for any such purpose to
6    issue subpoena or subpoenas to require the attendance of
7    witnesses and the production of books, which shall be
8    effective in any part of this State, and to adopt rules to
9    implement its powers under this paragraph (8).
10        Any circuit court may by order duly entered, require
11    the attendance of witnesses and the production of relevant
12    books subpoenaed by the State Commission and the court may
13    compel obedience to its order by proceedings for contempt.
14        (9) To investigate the administration of laws in
15    relation to alcoholic liquors in this and other states and
16    any foreign countries, and to recommend from time to time
17    to the Governor and through him or her to the legislature
18    of this State, such amendments to this Act, if any, as it
19    may think desirable and as will serve to further the
20    general broad purposes contained in Section 1-2 hereof.
21        (10) To adopt such rules and regulations consistent
22    with the provisions of this Act which shall be necessary
23    for the control, sale or disposition of alcoholic liquor
24    damaged as a result of an accident, wreck, flood, fire or
25    other similar occurrence.
26        (11) To develop industry educational programs related

 

 

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1    to responsible serving and selling, particularly in the
2    areas of overserving consumers and illegal underage
3    purchasing and consumption of alcoholic beverages.
4        (11.1) To license persons providing education and
5    training to alcohol beverage sellers and servers for
6    mandatory and non-mandatory training under the Beverage
7    Alcohol Sellers and Servers Education and Training
8    (BASSET) programs and to develop and administer a public
9    awareness program in Illinois to reduce or eliminate the
10    illegal purchase and consumption of alcoholic beverage
11    products by persons under the age of 21. Application for a
12    license shall be made on forms provided by the State
13    Commission.
14        (12) To develop and maintain a repository of license
15    and regulatory information.
16        (13) (Blank).
17        (14) On or before April 30, 2008 and every 2 years
18    thereafter, the Commission shall present a written report
19    to the Governor and the General Assembly that shall be
20    based on a study of the impact of Public Act 95-634 on the
21    business of soliciting, selling, and shipping wine from
22    inside and outside of this State directly to residents of
23    this State. As part of its report, the Commission shall
24    provide all of the following information:
25            (A) The amount of State excise and sales tax
26        revenues generated.

 

 

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1            (B) The amount of licensing fees received.
2            (C) The number of cases of wine shipped from inside
3        and outside of this State directly to residents of this
4        State.
5            (D) The number of alcohol compliance operations
6        conducted.
7            (E) The number of winery shipper's licenses
8        issued.
9            (F) The number of each of the following: reported
10        violations; cease and desist notices issued by the
11        Commission; notices of violations issued by the
12        Commission and to the Department of Revenue; and
13        notices and complaints of violations to law
14        enforcement officials, including, without limitation,
15        the Illinois Attorney General and the U.S. Department
16        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
17        (15) As a means to reduce the underage consumption of
18    alcoholic liquors, the Commission shall conduct alcohol
19    compliance operations to investigate whether businesses
20    that are soliciting, selling, and shipping wine from inside
21    or outside of this State directly to residents of this
22    State are licensed by this State or are selling or
23    attempting to sell wine to persons under 21 years of age in
24    violation of this Act.
25        (16) The Commission shall, in addition to notifying any
26    appropriate law enforcement agency, submit notices of

 

 

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1    complaints or violations of Sections 6-29 and 6-29.1 by
2    persons who do not hold a winery shipper's license under
3    this Act to the Illinois Attorney General and to the U.S.
4    Department of Treasury's Alcohol and Tobacco Tax and Trade
5    Bureau.
6        (17)(A) A person licensed to make wine under the laws
7    of another state who has a winery shipper's license under
8    this Act and annually produces less than 25,000 gallons of
9    wine or a person who has a first-class or second-class wine
10    manufacturer's license, a first-class or second-class
11    wine-maker's license, or a limited wine manufacturer's
12    license under this Act and annually produces less than
13    25,000 gallons of wine may make application to the
14    Commission for a self-distribution exemption to allow the
15    sale of not more than 5,000 gallons of the exemption
16    holder's wine to retail licensees per year.
17        (B) In the application, which shall be sworn under
18    penalty of perjury, such person shall state (1) the date it
19    was established; (2) its volume of production and sales for
20    each year since its establishment; (3) its efforts to
21    establish distributor relationships; (4) that a
22    self-distribution exemption is necessary to facilitate the
23    marketing of its wine; and (5) that it will comply with the
24    liquor and revenue laws of the United States, this State,
25    and any other state where it is licensed.
26        (C) The Commission shall approve the application for a

 

 

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1    self-distribution exemption if such person: (1) is in
2    compliance with State revenue and liquor laws; (2) is not a
3    member of any affiliated group that produces more than
4    25,000 gallons of wine per annum or produces any other
5    alcoholic liquor; (3) will not annually produce for sale
6    more than 25,000 gallons of wine; and (4) will not annually
7    sell more than 5,000 gallons of its wine to retail
8    licensees.
9        (D) A self-distribution exemption holder shall
10    annually certify to the Commission its production of wine
11    in the previous 12 months and its anticipated production
12    and sales for the next 12 months. The Commission may fine,
13    suspend, or revoke a self-distribution exemption after a
14    hearing if it finds that the exemption holder has made a
15    material misrepresentation in its application, violated a
16    revenue or liquor law of Illinois, exceeded production of
17    25,000 gallons of wine in any calendar year, or become part
18    of an affiliated group producing more than 25,000 gallons
19    of wine or any other alcoholic liquor.
20        (E) Except in hearings for violations of this Act or
21    Public Act 95-634 or a bona fide investigation by duly
22    sworn law enforcement officials, the Commission, or its
23    agents, the Commission shall maintain the production and
24    sales information of a self-distribution exemption holder
25    as confidential and shall not release such information to
26    any person.

 

 

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1        (F) The Commission shall issue regulations governing
2    self-distribution exemptions consistent with this Section
3    and this Act.
4        (G) Nothing in this paragraph subsection (17) shall
5    prohibit a self-distribution exemption holder from
6    entering into or simultaneously having a distribution
7    agreement with a licensed Illinois distributor.
8        (H) It is the intent of this paragraph subsection (17)
9    to promote and continue orderly markets. The General
10    Assembly finds that in order to preserve Illinois'
11    regulatory distribution system it is necessary to create an
12    exception for smaller makers of wine as their wines are
13    frequently adjusted in varietals, mixes, vintages, and
14    taste to find and create market niches sometimes too small
15    for distributor or importing distributor business
16    strategies. Limited self-distribution rights will afford
17    and allow smaller makers of wine access to the marketplace
18    in order to develop a customer base without impairing the
19    integrity of the 3-tier system.
20        (18)(A) A class 1 brewer licensee, who must also be
21    either a licensed brewer or licensed non-resident dealer
22    and annually manufacture less than 930,000 gallons of beer,
23    may make application to the State Commission for a
24    self-distribution exemption to allow the sale of not more
25    than 232,500 gallons of the exemption holder's beer per
26    year to retail licensees and to brewers, class 1 brewers,

 

 

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1    and class 2 brewers that, pursuant to subsection (e) of
2    Section 6-4 of this Act, sell beer, cider, or both beer and
3    cider to non-licensees at their breweries.
4        (B) In the application, which shall be sworn under
5    penalty of perjury, the class 1 brewer licensee shall state
6    (1) the date it was established; (2) its volume of beer
7    manufactured and sold for each year since its
8    establishment; (3) its efforts to establish distributor
9    relationships; (4) that a self-distribution exemption is
10    necessary to facilitate the marketing of its beer; and (5)
11    that it will comply with the alcoholic beverage and revenue
12    laws of the United States, this State, and any other state
13    where it is licensed.
14        (C) Any application submitted shall be posted on the
15    State Commission's website at least 45 days prior to action
16    by the State Commission. The State Commission shall approve
17    the application for a self-distribution exemption if the
18    class 1 brewer licensee: (1) is in compliance with the
19    State, revenue, and alcoholic beverage laws; (2) is not a
20    member of any affiliated group that manufactures more than
21    930,000 gallons of beer per annum or produces any other
22    alcoholic beverages; (3) shall not annually manufacture
23    for sale more than 930,000 gallons of beer; (4) shall not
24    annually sell more than 232,500 gallons of its beer to
25    retail licensees or to brewers, class 1 brewers, and class
26    2 brewers that, pursuant to subsection (e) of Section 6-4

 

 

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1    of this Act, sell beer, cider, or both beer and cider to
2    non-licensees at their breweries; and (5) has relinquished
3    any brew pub license held by the licensee, including any
4    ownership interest it held in the licensed brew pub.
5        (D) A self-distribution exemption holder shall
6    annually certify to the State Commission its manufacture of
7    beer during the previous 12 months and its anticipated
8    manufacture and sales of beer for the next 12 months. The
9    State Commission may fine, suspend, or revoke a
10    self-distribution exemption after a hearing if it finds
11    that the exemption holder has made a material
12    misrepresentation in its application, violated a revenue
13    or alcoholic beverage law of Illinois, exceeded the
14    manufacture of 930,000 gallons of beer in any calendar year
15    or became part of an affiliated group manufacturing more
16    than 930,000 gallons of beer or any other alcoholic
17    beverage.
18        (E) The State Commission shall issue rules and
19    regulations governing self-distribution exemptions
20    consistent with this Act.
21        (F) Nothing in this paragraph (18) shall prohibit a
22    self-distribution exemption holder from entering into or
23    simultaneously having a distribution agreement with a
24    licensed Illinois importing distributor or a distributor.
25    If a self-distribution exemption holder enters into a
26    distribution agreement and has assigned distribution

 

 

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1    rights to an importing distributor or distributor, then the
2    self-distribution exemption holder's distribution rights
3    in the assigned territories shall cease in a reasonable
4    time not to exceed 60 days.
5        (G) It is the intent of this paragraph (18) to promote
6    and continue orderly markets. The General Assembly finds
7    that in order to preserve Illinois' regulatory
8    distribution system, it is necessary to create an exception
9    for smaller manufacturers in order to afford and allow such
10    smaller manufacturers of beer access to the marketplace in
11    order to develop a customer base without impairing the
12    integrity of the 3-tier system.
13        (19)(A) A class 1 craft distiller licensee may make
14    application to the State Commission for a
15    self-distribution exemption to allow the sale of not more
16    than 5,000 gallons, in the aggregate, per year of the
17    exemption holder's spirits to retail licensees and to class
18    1 craft distillers and class 2 craft distillers that,
19    pursuant to subsection (e) of Section 6-4, sell spirits,
20    vermouth, or both spirits and vermouth to non-licensees at
21    their distilleries.
22        (B) In the application, which shall be sworn under
23    penalty of perjury, the class 1 craft distiller licensee
24    shall state (1) the date it was established; (2) its volume
25    of spirits manufactured and sold for each year since its
26    establishment; (3) its efforts to establish distributor

 

 

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1    relationships; (4) that a self-distribution exemption is
2    necessary to facilitate the marketing of its spirits; and
3    (5) that it will comply with the alcoholic beverage and
4    revenue laws of the United States, this State, and any
5    other state where it is licensed.
6        (C) Any application submitted shall be posted on the
7    State Commission's website at least 45 days prior to action
8    by the State Commission. The State Commission shall approve
9    the application for a self-distribution exemption if the
10    applicant: (1) is in compliance with State revenue and
11    alcoholic beverage laws; (2) is not a member of any
12    affiliated group that produces more than 50,000 gallons of
13    spirits per annum or produces any other alcoholic liquor;
14    (3) does not annually manufacture for sale more than 50,000
15    gallons of spirits; and (4) does not annually sell more
16    than 5,000 gallons of its spirits to retail licensees.
17        (D) A self-distribution exemption holder shall
18    annually certify to the State Commission its manufacture of
19    spirits during the previous 12 months and its anticipated
20    manufacture and sales of spirits for the next 12 months.
21    The State Commission may fine, suspend, or revoke a
22    self-distribution exemption after a hearing if it finds
23    that the exemption holder has made a material
24    misrepresentation in its application, violated a revenue
25    or alcoholic beverage law of Illinois, exceeded the
26    manufacture of 50,000 gallons of spirits in any calendar

 

 

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1    year, or has become part of an affiliated group
2    manufacturing more than 50,000 gallons of spirits or any
3    other alcoholic beverage.
4        (E) The State Commission shall adopt rules governing
5    self-distribution exemptions consistent with this Act.
6        (F) Nothing in this paragraph (19) shall prohibit a
7    self-distribution exemption holder from entering into or
8    simultaneously having a distribution agreement with a
9    licensed Illinois importing distributor or a distributor.
10        (G) It is the intent of this paragraph (19) to promote
11    and continue orderly markets. The General Assembly finds
12    that in order to preserve Illinois' regulatory
13    distribution system, it is necessary to create an exception
14    for smaller manufacturers in order to afford and allow such
15    smaller manufacturers of spirits access to the marketplace
16    in order to develop a customer base without impairing the
17    integrity of the 3-tier system.
18    (b) On or before April 30, 1999, the Commission shall
19present a written report to the Governor and the General
20Assembly that shall be based on a study of the impact of Public
21Act 90-739 on the business of soliciting, selling, and shipping
22alcoholic liquor from outside of this State directly to
23residents of this State.
24    As part of its report, the Commission shall provide the
25following information:
26        (i) the amount of State excise and sales tax revenues

 

 

10100HB2675ham001- 19 -LRB101 07840 RPS 58994 a

1    generated as a result of Public Act 90-739;
2        (ii) the amount of licensing fees received as a result
3    of Public Act 90-739;
4        (iii) the number of reported violations, the number of
5    cease and desist notices issued by the Commission, the
6    number of notices of violations issued to the Department of
7    Revenue, and the number of notices and complaints of
8    violations to law enforcement officials.
9(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
10100-134, eff. 8-18-17; 100-201, eff. 8-18-17; 100-816, eff.
118-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. 8-23-18;
12revised 10-24-18.)
 
13    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
14    Sec. 5-1. Licenses issued by the Illinois Liquor Control
15Commission shall be of the following classes:
16    (a) Manufacturer's license - Class 1. Distiller, Class 2.
17Rectifier, Class 3. Brewer, Class 4. First Class Wine
18Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
19First Class Winemaker, Class 7. Second Class Winemaker, Class
208. Limited Wine Manufacturer, Class 9. Class 1 Craft Distiller,
21Class 10. Class 2 Craft Distiller, Class 11. Class 1 Brewer,
22Class 12 11. Class 2 Brewer,
23    (b) Distributor's license,
24    (c) Importing Distributor's license,
25    (d) Retailer's license,

 

 

10100HB2675ham001- 20 -LRB101 07840 RPS 58994 a

1    (e) Special Event Retailer's license (not-for-profit),
2    (f) Railroad license,
3    (g) Boat license,
4    (h) Non-Beverage User's license,
5    (i) Wine-maker's premises license,
6    (j) Airplane license,
7    (k) Foreign importer's license,
8    (l) Broker's license,
9    (m) Non-resident dealer's license,
10    (n) Brew Pub license,
11    (o) Auction liquor license,
12    (p) Caterer retailer license,
13    (q) Special use permit license,
14    (r) Winery shipper's license,
15    (s) Craft distiller tasting permit,
16    (t) Brewer warehouse permit, .
17    (u) Distilling pub license,
18    (v) Craft distiller warehouse permit.
19    No person, firm, partnership, corporation, or other legal
20business entity that is engaged in the manufacturing of wine
21may concurrently obtain and hold a wine-maker's license and a
22wine manufacturer's license.
23    (a) A manufacturer's license shall allow the manufacture,
24importation in bulk, storage, distribution and sale of
25alcoholic liquor to persons without the State, as may be
26permitted by law and to licensees in this State as follows:

 

 

10100HB2675ham001- 21 -LRB101 07840 RPS 58994 a

1    Class 1. A Distiller may make sales and deliveries of
2alcoholic liquor to distillers, rectifiers, importing
3distributors, distributors and non-beverage users and to no
4other licensees.
5    Class 2. A Rectifier, who is not a distiller, as defined
6herein, may make sales and deliveries of alcoholic liquor to
7rectifiers, importing distributors, distributors, retailers
8and non-beverage users and to no other licensees.
9    Class 3. A Brewer may make sales and deliveries of beer to
10importing distributors and distributors and may make sales as
11authorized under subsection (e) of Section 6-4 of this Act.
12    Class 4. A first class wine-manufacturer may make sales and
13deliveries of up to 50,000 gallons of wine to manufacturers,
14importing distributors and distributors, and to no other
15licensees.
16    Class 5. A second class Wine manufacturer may make sales
17and deliveries of more than 50,000 gallons of wine to
18manufacturers, importing distributors and distributors and to
19no other licensees.
20    Class 6. A first-class wine-maker's license shall allow the
21manufacture of up to 50,000 gallons of wine per year, and the
22storage and sale of such wine to distributors in the State and
23to persons without the State, as may be permitted by law. A
24person who, prior to June 1, 2008 (the effective date of Public
25Act 95-634), is a holder of a first-class wine-maker's license
26and annually produces more than 25,000 gallons of its own wine

 

 

10100HB2675ham001- 22 -LRB101 07840 RPS 58994 a

1and who distributes its wine to licensed retailers shall cease
2this practice on or before July 1, 2008 in compliance with
3Public Act 95-634.
4    Class 7. A second-class wine-maker's license shall allow
5the manufacture of between 50,000 and 150,000 gallons of wine
6per year, and the storage and sale of such wine to distributors
7in this State and to persons without the State, as may be
8permitted by law. A person who, prior to June 1, 2008 (the
9effective date of Public Act 95-634), is a holder of a
10second-class wine-maker's license and annually produces more
11than 25,000 gallons of its own wine and who distributes its
12wine to licensed retailers shall cease this practice on or
13before July 1, 2008 in compliance with Public Act 95-634.
14    Class 8. A limited wine-manufacturer may make sales and
15deliveries not to exceed 40,000 gallons of wine per year to
16distributors, and to non-licensees in accordance with the
17provisions of this Act.
18    Class 9. A class 1 craft distiller license, which may only
19be issued to a licensed distiller or licensed non-resident
20dealer, shall allow the manufacture of up to 50,000 gallons of
21spirits per year provided that the class 1 craft distiller
22licensee does not manufacture more than a combined 50,000
23gallons of spirits per year and is not a member of or
24affiliated with, directly or indirectly, a manufacturer that
25produces more than 50,000 gallons of spirits per year or any
26other alcoholic liquor. A class 1 craft distiller licensee may

 

 

10100HB2675ham001- 23 -LRB101 07840 RPS 58994 a

1make sales and deliveries to importing distributors and
2distributors and to retail licensees in accordance with the
3conditions set forth in paragraph (19) of subsection (a) of
4Section 3-12 of this Act.
5    A class 1 craft distiller licensee may sell up to 5,000
6gallons of such spirits to non-licensees to the extent
7permitted by any exemption approved by the State Commission
8pursuant to Section 6-4 of this Act. A class 1 craft distiller
9license holder may store such spirits at a non-contiguous
10licensed location, but at no time shall a class 1 craft
11distiller license holder directly or indirectly produce in the
12aggregate more than 50,000 gallons of spirits per year.
13    A class 1 craft distiller licensee may hold more than one
14class 1 craft distiller's license. However, a class 1 craft
15distiller that holds more than one class 1 craft distiller
16license shall not manufacture, in the aggregate, more than
1750,000 gallons of spirits by distillation per year and shall
18not sell, in the aggregate, more than 5,000 gallons of such
19spirits to non-licensees in accordance with an exemption
20approved by the State Commission pursuant to Section 6-4 of
21this Act.
22    Class 10. A class 2 craft distiller license, which may only
23be issued to a licensed distiller or licensed non-resident
24dealer, shall allow the manufacture of up to 100,000 gallons of
25spirits per year provided that the class 2 craft distiller
26licensee does not manufacture more than a combined 100,000

 

 

10100HB2675ham001- 24 -LRB101 07840 RPS 58994 a

1gallons of spirits per year and is not a member of or
2affiliated with, directly or indirectly, a manufacturer that
3produces more than 100,000 gallons of spirits per year or any
4other alcoholic liquor. A class 2 craft distiller licensee may
5make sales and deliveries to importing distributors and
6distributors, but shall not make sales or deliveries to any
7other licensee. If the State Commission provides prior
8approval, a class 2 craft distiller licensee may annually
9transfer up to 100,000 gallons of spirits manufactured by that
10class 2 craft distiller licensee to the premises of a licensed
11class 2 craft distiller wholly owned and operated by the same
12licensee. A class 2 craft distiller may transfer spirits to a
13distilling pub wholly owned and operated by the class 2 craft
14distiller subject to the following limitations and
15restrictions: (i) the transfer shall not annually exceed more
16than 5,000 gallons; (ii) the annual amount transferred shall
17reduce the distilling pub's annual permitted production limit;
18(iii) all spirits transferred shall be subject to Article VIII
19of this Act; (iv) a written record shall be maintained by the
20distiller and distilling pub specifying the amount, date of
21delivery, and receipt of the product by the distilling pub; and
22(v) the distilling pub shall be located no farther than 80
23miles from the class 2 craft distiller's licensed location.
24    A class 2 craft distiller shall, prior to transferring
25spirits to a distilling pub wholly owned by the class 2 craft
26distiller, furnish a written notice to the State Commission of

 

 

10100HB2675ham001- 25 -LRB101 07840 RPS 58994 a

1intent to transfer spirits setting forth the name and address
2of the distilling pub and shall annually submit to the State
3Commission a verified report identifying the total gallons of
4spirits transferred to the distilling pub wholly owned by the
5class 2 craft distiller.
6    A class 2 craft distiller license holder may store such
7spirits at a non-contiguous licensed location, but at no time
8shall a class 2 craft distiller license holder directly or
9indirectly produce in the aggregate more than 100,000 gallons
10of spirits per year.
11A craft distiller license shall allow the manufacture of up to
12100,000 gallons of spirits by distillation per year and the
13storage of such spirits. If a craft distiller licensee,
14including a craft distiller licensee who holds more than one
15craft distiller license, is not affiliated with any other
16manufacturer of spirits, then the craft distiller licensee may
17sell such spirits to distributors in this State and up to 2,500
18gallons of such spirits to non-licensees to the extent
19permitted by any exemption approved by the Commission pursuant
20to Section 6-4 of this Act. A craft distiller license holder
21may store such spirits at a non-contiguous licensed location,
22but at no time shall a craft distiller license holder directly
23or indirectly produce in the aggregate more than 100,000
24gallons of spirits per year.
25    A craft distiller licensee may hold more than one craft
26distiller's license. However, a craft distiller that holds more

 

 

10100HB2675ham001- 26 -LRB101 07840 RPS 58994 a

1than one craft distiller license shall not manufacture, in the
2aggregate, more than 100,000 gallons of spirits by distillation
3per year and shall not sell, in the aggregate, more than 2,500
4gallons of such spirits to non-licensees in accordance with an
5exemption approved by the State Commission pursuant to Section
66-4 of this Act.
7    Any craft distiller licensed under this Act who on July 28,
82010 (the effective date of Public Act 96-1367) was licensed as
9a distiller and manufactured no more spirits than permitted by
10this Section shall not be required to pay the initial licensing
11fee.
12    Class 11 10. A class 1 brewer license, which may only be
13issued to a licensed brewer or licensed non-resident dealer,
14shall allow the manufacture of up to 930,000 gallons of beer
15per year provided that the class 1 brewer licensee does not
16manufacture more than a combined 930,000 gallons of beer per
17year and is not a member of or affiliated with, directly or
18indirectly, a manufacturer that produces more than 930,000
19gallons of beer per year or any other alcoholic liquor. A class
201 brewer licensee may make sales and deliveries to importing
21distributors and distributors and to retail licensees in
22accordance with the conditions set forth in paragraph (18) of
23subsection (a) of Section 3-12 of this Act. If the State
24Commission provides prior approval, a class 1 brewer may
25annually transfer up to 930,000 gallons of beer manufactured by
26that class 1 brewer to the premises of a licensed class 1

 

 

10100HB2675ham001- 27 -LRB101 07840 RPS 58994 a

1brewer wholly owned and operated by the same licensee.
2    Class 12 11. A class 2 brewer license, which may only be
3issued to a licensed brewer or licensed non-resident dealer,
4shall allow the manufacture of up to 3,720,000 gallons of beer
5per year provided that the class 2 brewer licensee does not
6manufacture more than a combined 3,720,000 gallons of beer per
7year and is not a member of or affiliated with, directly or
8indirectly, a manufacturer that produces more than 3,720,000
9gallons of beer per year or any other alcoholic liquor. A class
102 brewer licensee may make sales and deliveries to importing
11distributors and distributors, but shall not make sales or
12deliveries to any other licensee. If the State Commission
13provides prior approval, a class 2 brewer licensee may annually
14transfer up to 3,720,000 gallons of beer manufactured by that
15class 2 brewer licensee to the premises of a licensed class 2
16brewer wholly owned and operated by the same licensee.
17    A class 2 brewer may transfer beer to a brew pub wholly
18owned and operated by the class 2 brewer subject to the
19following limitations and restrictions: (i) the transfer shall
20not annually exceed more than 31,000 gallons; (ii) the annual
21amount transferred shall reduce the brew pub's annual permitted
22production limit; (iii) all beer transferred shall be subject
23to Article VIII of this Act; (iv) a written record shall be
24maintained by the brewer and brew pub specifying the amount,
25date of delivery, and receipt of the product by the brew pub;
26and (v) the brew pub shall be located no farther than 80 miles

 

 

10100HB2675ham001- 28 -LRB101 07840 RPS 58994 a

1from the class 2 brewer's licensed location.
2    A class 2 brewer shall, prior to transferring beer to a
3brew pub wholly owned by the class 2 brewer, furnish a written
4notice to the State Commission of intent to transfer beer
5setting forth the name and address of the brew pub and shall
6annually submit to the State Commission a verified report
7identifying the total gallons of beer transferred to the brew
8pub wholly owned by the class 2 brewer.
9    (a-1) A manufacturer which is licensed in this State to
10make sales or deliveries of alcoholic liquor to licensed
11distributors or importing distributors and which enlists
12agents, representatives, or individuals acting on its behalf
13who contact licensed retailers on a regular and continual basis
14in this State must register those agents, representatives, or
15persons acting on its behalf with the State Commission.
16    Registration of agents, representatives, or persons acting
17on behalf of a manufacturer is fulfilled by submitting a form
18to the Commission. The form shall be developed by the
19Commission and shall include the name and address of the
20applicant, the name and address of the manufacturer he or she
21represents, the territory or areas assigned to sell to or
22discuss pricing terms of alcoholic liquor, and any other
23questions deemed appropriate and necessary. All statements in
24the forms required to be made by law or by rule shall be deemed
25material, and any person who knowingly misstates any material
26fact under oath in an application is guilty of a Class B

 

 

10100HB2675ham001- 29 -LRB101 07840 RPS 58994 a

1misdemeanor. Fraud, misrepresentation, false statements,
2misleading statements, evasions, or suppression of material
3facts in the securing of a registration are grounds for
4suspension or revocation of the registration. The State
5Commission shall post a list of registered agents on the
6Commission's website.
7    (b) A distributor's license shall allow the wholesale
8purchase and storage of alcoholic liquors and sale of alcoholic
9liquors to licensees in this State and to persons without the
10State, as may be permitted by law, and the sale of beer, cider,
11or both beer and cider to brewers, class 1 brewers, and class 2
12brewers that, pursuant to subsection (e) of Section 6-4 of this
13Act, sell beer, cider, or both beer and cider to non-licensees
14at their breweries. No person licensed as a distributor shall
15be granted a non-resident dealer's license.
16    (c) An importing distributor's license may be issued to and
17held by those only who are duly licensed distributors, upon the
18filing of an application by a duly licensed distributor, with
19the Commission and the Commission shall, without the payment of
20any fee, immediately issue such importing distributor's
21license to the applicant, which shall allow the importation of
22alcoholic liquor by the licensee into this State from any point
23in the United States outside this State, and the purchase of
24alcoholic liquor in barrels, casks or other bulk containers and
25the bottling of such alcoholic liquors before resale thereof,
26but all bottles or containers so filled shall be sealed,

 

 

10100HB2675ham001- 30 -LRB101 07840 RPS 58994 a

1labeled, stamped and otherwise made to comply with all
2provisions, rules and regulations governing manufacturers in
3the preparation and bottling of alcoholic liquors. The
4importing distributor's license shall permit such licensee to
5purchase alcoholic liquor from Illinois licensed non-resident
6dealers and foreign importers only. No person licensed as an
7importing distributor shall be granted a non-resident dealer's
8license.
9    (d) A retailer's license shall allow the licensee to sell
10and offer for sale at retail, only in the premises specified in
11the license, alcoholic liquor for use or consumption, but not
12for resale in any form. Nothing in Public Act 95-634 shall
13deny, limit, remove, or restrict the ability of a holder of a
14retailer's license to transfer, deliver, or ship alcoholic
15liquor to the purchaser for use or consumption subject to any
16applicable local law or ordinance. Any retail license issued to
17a manufacturer shall only permit the manufacturer to sell beer
18at retail on the premises actually occupied by the
19manufacturer. For the purpose of further describing the type of
20business conducted at a retail licensed premises, a retailer's
21licensee may be designated by the State Commission as (i) an on
22premise consumption retailer, (ii) an off premise sale
23retailer, or (iii) a combined on premise consumption and off
24premise sale retailer.
25    Notwithstanding any other provision of this subsection
26(d), a retail licensee may sell alcoholic liquors to a special

 

 

10100HB2675ham001- 31 -LRB101 07840 RPS 58994 a

1event retailer licensee for resale to the extent permitted
2under subsection (e).
3    (e) A special event retailer's license (not-for-profit)
4shall permit the licensee to purchase alcoholic liquors from an
5Illinois licensed distributor (unless the licensee purchases
6less than $500 of alcoholic liquors for the special event, in
7which case the licensee may purchase the alcoholic liquors from
8a licensed retailer) and shall allow the licensee to sell and
9offer for sale, at retail, alcoholic liquors for use or
10consumption, but not for resale in any form and only at the
11location and on the specific dates designated for the special
12event in the license. An applicant for a special event retailer
13license must (i) furnish with the application: (A) a resale
14number issued under Section 2c of the Retailers' Occupation Tax
15Act or evidence that the applicant is registered under Section
162a of the Retailers' Occupation Tax Act, (B) a current, valid
17exemption identification number issued under Section 1g of the
18Retailers' Occupation Tax Act, and a certification to the
19Commission that the purchase of alcoholic liquors will be a
20tax-exempt purchase, or (C) a statement that the applicant is
21not registered under Section 2a of the Retailers' Occupation
22Tax Act, does not hold a resale number under Section 2c of the
23Retailers' Occupation Tax Act, and does not hold an exemption
24number under Section 1g of the Retailers' Occupation Tax Act,
25in which event the Commission shall set forth on the special
26event retailer's license a statement to that effect; (ii)

 

 

10100HB2675ham001- 32 -LRB101 07840 RPS 58994 a

1submit with the application proof satisfactory to the State
2Commission that the applicant will provide dram shop liability
3insurance in the maximum limits; and (iii) show proof
4satisfactory to the State Commission that the applicant has
5obtained local authority approval.
6    Nothing in this Act prohibits an Illinois licensed
7distributor from offering credit or a refund for unused,
8salable alcoholic liquors to a holder of a special event
9retailer's license or from the special event retailer's
10licensee from accepting the credit or refund of alcoholic
11liquors at the conclusion of the event specified in the
12license.
13    (f) A railroad license shall permit the licensee to import
14alcoholic liquors into this State from any point in the United
15States outside this State and to store such alcoholic liquors
16in this State; to make wholesale purchases of alcoholic liquors
17directly from manufacturers, foreign importers, distributors
18and importing distributors from within or outside this State;
19and to store such alcoholic liquors in this State; provided
20that the above powers may be exercised only in connection with
21the importation, purchase or storage of alcoholic liquors to be
22sold or dispensed on a club, buffet, lounge or dining car
23operated on an electric, gas or steam railway in this State;
24and provided further, that railroad licensees exercising the
25above powers shall be subject to all provisions of Article VIII
26of this Act as applied to importing distributors. A railroad

 

 

10100HB2675ham001- 33 -LRB101 07840 RPS 58994 a

1license shall also permit the licensee to sell or dispense
2alcoholic liquors on any club, buffet, lounge or dining car
3operated on an electric, gas or steam railway regularly
4operated by a common carrier in this State, but shall not
5permit the sale for resale of any alcoholic liquors to any
6licensee within this State. A license shall be obtained for
7each car in which such sales are made.
8    (g) A boat license shall allow the sale of alcoholic liquor
9in individual drinks, on any passenger boat regularly operated
10as a common carrier on navigable waters in this State or on any
11riverboat operated under the Riverboat Gambling Act, which boat
12or riverboat maintains a public dining room or restaurant
13thereon.
14    (h) A non-beverage user's license shall allow the licensee
15to purchase alcoholic liquor from a licensed manufacturer or
16importing distributor, without the imposition of any tax upon
17the business of such licensed manufacturer or importing
18distributor as to such alcoholic liquor to be used by such
19licensee solely for the non-beverage purposes set forth in
20subsection (a) of Section 8-1 of this Act, and such licenses
21shall be divided and classified and shall permit the purchase,
22possession and use of limited and stated quantities of
23alcoholic liquor as follows:
24Class 1, not to exceed ......................... 500 gallons
25Class 2, not to exceed ....................... 1,000 gallons
26Class 3, not to exceed ....................... 5,000 gallons

 

 

10100HB2675ham001- 34 -LRB101 07840 RPS 58994 a

1Class 4, not to exceed ...................... 10,000 gallons
2Class 5, not to exceed ....................... 50,000 gallons
3    (i) A wine-maker's premises license shall allow a licensee
4that concurrently holds a first-class wine-maker's license to
5sell and offer for sale at retail in the premises specified in
6such license not more than 50,000 gallons of the first-class
7wine-maker's wine that is made at the first-class wine-maker's
8licensed premises per year for use or consumption, but not for
9resale in any form. A wine-maker's premises license shall allow
10a licensee who concurrently holds a second-class wine-maker's
11license to sell and offer for sale at retail in the premises
12specified in such license up to 100,000 gallons of the
13second-class wine-maker's wine that is made at the second-class
14wine-maker's licensed premises per year for use or consumption
15but not for resale in any form. A wine-maker's premises license
16shall allow a licensee that concurrently holds a first-class
17wine-maker's license or a second-class wine-maker's license to
18sell and offer for sale at retail at the premises specified in
19the wine-maker's premises license, for use or consumption but
20not for resale in any form, any beer, wine, and spirits
21purchased from a licensed distributor. Upon approval from the
22State Commission, a wine-maker's premises license shall allow
23the licensee to sell and offer for sale at (i) the wine-maker's
24licensed premises and (ii) at up to 2 additional locations for
25use and consumption and not for resale. Each location shall
26require additional licensing per location as specified in

 

 

10100HB2675ham001- 35 -LRB101 07840 RPS 58994 a

1Section 5-3 of this Act. A wine-maker's premises licensee shall
2secure liquor liability insurance coverage in an amount at
3least equal to the maximum liability amounts set forth in
4subsection (a) of Section 6-21 of this Act.
5    (j) An airplane license shall permit the licensee to import
6alcoholic liquors into this State from any point in the United
7States outside this State and to store such alcoholic liquors
8in this State; to make wholesale purchases of alcoholic liquors
9directly from manufacturers, foreign importers, distributors
10and importing distributors from within or outside this State;
11and to store such alcoholic liquors in this State; provided
12that the above powers may be exercised only in connection with
13the importation, purchase or storage of alcoholic liquors to be
14sold or dispensed on an airplane; and provided further, that
15airplane licensees exercising the above powers shall be subject
16to all provisions of Article VIII of this Act as applied to
17importing distributors. An airplane licensee shall also permit
18the sale or dispensing of alcoholic liquors on any passenger
19airplane regularly operated by a common carrier in this State,
20but shall not permit the sale for resale of any alcoholic
21liquors to any licensee within this State. A single airplane
22license shall be required of an airline company if liquor
23service is provided on board aircraft in this State. The annual
24fee for such license shall be as determined in Section 5-3.
25    (k) A foreign importer's license shall permit such licensee
26to purchase alcoholic liquor from Illinois licensed

 

 

10100HB2675ham001- 36 -LRB101 07840 RPS 58994 a

1non-resident dealers only, and to import alcoholic liquor other
2than in bulk from any point outside the United States and to
3sell such alcoholic liquor to Illinois licensed importing
4distributors and to no one else in Illinois; provided that (i)
5the foreign importer registers with the State Commission every
6brand of alcoholic liquor that it proposes to sell to Illinois
7licensees during the license period, (ii) the foreign importer
8complies with all of the provisions of Section 6-9 of this Act
9with respect to registration of such Illinois licensees as may
10be granted the right to sell such brands at wholesale, and
11(iii) the foreign importer complies with the provisions of
12Sections 6-5 and 6-6 of this Act to the same extent that these
13provisions apply to manufacturers.
14    (l) (i) A broker's license shall be required of all persons
15who solicit orders for, offer to sell or offer to supply
16alcoholic liquor to retailers in the State of Illinois, or who
17offer to retailers to ship or cause to be shipped or to make
18contact with distillers, rectifiers, brewers or manufacturers
19or any other party within or without the State of Illinois in
20order that alcoholic liquors be shipped to a distributor,
21importing distributor or foreign importer, whether such
22solicitation or offer is consummated within or without the
23State of Illinois.
24    No holder of a retailer's license issued by the Illinois
25Liquor Control Commission shall purchase or receive any
26alcoholic liquor, the order for which was solicited or offered

 

 

10100HB2675ham001- 37 -LRB101 07840 RPS 58994 a

1for sale to such retailer by a broker unless the broker is the
2holder of a valid broker's license.
3    The broker shall, upon the acceptance by a retailer of the
4broker's solicitation of an order or offer to sell or supply or
5deliver or have delivered alcoholic liquors, promptly forward
6to the Illinois Liquor Control Commission a notification of
7said transaction in such form as the Commission may by
8regulations prescribe.
9    (ii) A broker's license shall be required of a person
10within this State, other than a retail licensee, who, for a fee
11or commission, promotes, solicits, or accepts orders for
12alcoholic liquor, for use or consumption and not for resale, to
13be shipped from this State and delivered to residents outside
14of this State by an express company, common carrier, or
15contract carrier. This Section does not apply to any person who
16promotes, solicits, or accepts orders for wine as specifically
17authorized in Section 6-29 of this Act.
18    A broker's license under this subsection (l) shall not
19entitle the holder to buy or sell any alcoholic liquors for his
20own account or to take or deliver title to such alcoholic
21liquors.
22    This subsection (l) shall not apply to distributors,
23employees of distributors, or employees of a manufacturer who
24has registered the trademark, brand or name of the alcoholic
25liquor pursuant to Section 6-9 of this Act, and who regularly
26sells such alcoholic liquor in the State of Illinois only to

 

 

10100HB2675ham001- 38 -LRB101 07840 RPS 58994 a

1its registrants thereunder.
2    Any agent, representative, or person subject to
3registration pursuant to subsection (a-1) of this Section shall
4not be eligible to receive a broker's license.
5    (m) A non-resident dealer's license shall permit such
6licensee to ship into and warehouse alcoholic liquor into this
7State from any point outside of this State, and to sell such
8alcoholic liquor to Illinois licensed foreign importers and
9importing distributors and to no one else in this State;
10provided that (i) said non-resident dealer shall register with
11the Illinois Liquor Control Commission each and every brand of
12alcoholic liquor which it proposes to sell to Illinois
13licensees during the license period, (ii) it shall comply with
14all of the provisions of Section 6-9 hereof with respect to
15registration of such Illinois licensees as may be granted the
16right to sell such brands at wholesale by duly filing such
17registration statement, thereby authorizing the non-resident
18dealer to proceed to sell such brands at wholesale, and (iii)
19the non-resident dealer shall comply with the provisions of
20Sections 6-5 and 6-6 of this Act to the same extent that these
21provisions apply to manufacturers. No person licensed as a
22non-resident dealer shall be granted a distributor's or
23importing distributor's license.
24    (n) A brew pub license shall allow the licensee to only (i)
25manufacture up to 155,000 gallons of beer per year only on the
26premises specified in the license, (ii) make sales of the beer

 

 

10100HB2675ham001- 39 -LRB101 07840 RPS 58994 a

1manufactured on the premises or, with the approval of the
2Commission, beer manufactured on another brew pub licensed
3premises that is wholly owned and operated by the same licensee
4to importing distributors, distributors, and to non-licensees
5for use and consumption, (iii) store the beer upon the
6premises, (iv) sell and offer for sale at retail from the
7licensed premises for off-premises consumption no more than
8155,000 gallons per year so long as such sales are only made
9in-person, (v) sell and offer for sale at retail for use and
10consumption on the premises specified in the license any form
11of alcoholic liquor purchased from a licensed distributor or
12importing distributor, and (vi) with the prior approval of the
13Commission, annually transfer no more than 155,000 gallons of
14beer manufactured on the premises to a licensed brew pub wholly
15owned and operated by the same licensee.
16    A brew pub licensee shall not under any circumstance sell
17or offer for sale beer manufactured by the brew pub licensee to
18retail licensees.
19    A person who holds a class 2 brewer license may
20simultaneously hold a brew pub license if the class 2 brewer
21(i) does not, under any circumstance, sell or offer for sale
22beer manufactured by the class 2 brewer to retail licensees;
23(ii) does not hold more than 3 brew pub licenses in this State;
24(iii) does not manufacture more than a combined 3,720,000
25gallons of beer per year, including the beer manufactured at
26the brew pub; and (iv) is not a member of or affiliated with,

 

 

10100HB2675ham001- 40 -LRB101 07840 RPS 58994 a

1directly or indirectly, a manufacturer that produces more than
23,720,000 gallons of beer per year or any other alcoholic
3liquor.
4    Notwithstanding any other provision of this Act, a licensed
5brewer, class 2 brewer, or non-resident dealer who before July
61, 2015 manufactured less than 3,720,000 gallons of beer per
7year and held a brew pub license on or before July 1, 2015 may
8(i) continue to qualify for and hold that brew pub license for
9the licensed premises and (ii) manufacture more than 3,720,000
10gallons of beer per year and continue to qualify for and hold
11that brew pub license if that brewer, class 2 brewer, or
12non-resident dealer does not simultaneously hold a class 1
13brewer license and is not a member of or affiliated with,
14directly or indirectly, a manufacturer that produces more than
153,720,000 gallons of beer per year or that produces any other
16alcoholic liquor.
17    (o) A caterer retailer license shall allow the holder to
18serve alcoholic liquors as an incidental part of a food service
19that serves prepared meals which excludes the serving of snacks
20as the primary meal, either on or off-site whether licensed or
21unlicensed.
22    (p) An auction liquor license shall allow the licensee to
23sell and offer for sale at auction wine and spirits for use or
24consumption, or for resale by an Illinois liquor licensee in
25accordance with provisions of this Act. An auction liquor
26license will be issued to a person and it will permit the

 

 

10100HB2675ham001- 41 -LRB101 07840 RPS 58994 a

1auction liquor licensee to hold the auction anywhere in the
2State. An auction liquor license must be obtained for each
3auction at least 14 days in advance of the auction date.
4    (q) A special use permit license shall allow an Illinois
5licensed retailer to transfer a portion of its alcoholic liquor
6inventory from its retail licensed premises to the premises
7specified in the license hereby created, and to sell or offer
8for sale at retail, only in the premises specified in the
9license hereby created, the transferred alcoholic liquor for
10use or consumption, but not for resale in any form. A special
11use permit license may be granted for the following time
12periods: one day or less; 2 or more days to a maximum of 15 days
13per location in any 12-month period. An applicant for the
14special use permit license must also submit with the
15application proof satisfactory to the State Commission that the
16applicant will provide dram shop liability insurance to the
17maximum limits and have local authority approval.
18    (r) A winery shipper's license shall allow a person with a
19first-class or second-class wine manufacturer's license, a
20first-class or second-class wine-maker's license, or a limited
21wine manufacturer's license or who is licensed to make wine
22under the laws of another state to ship wine made by that
23licensee directly to a resident of this State who is 21 years
24of age or older for that resident's personal use and not for
25resale. Prior to receiving a winery shipper's license, an
26applicant for the license must provide the Commission with a

 

 

10100HB2675ham001- 42 -LRB101 07840 RPS 58994 a

1true copy of its current license in any state in which it is
2licensed as a manufacturer of wine. An applicant for a winery
3shipper's license must also complete an application form that
4provides any other information the Commission deems necessary.
5The application form shall include all addresses from which the
6applicant for a winery shipper's license intends to ship wine,
7including the name and address of any third party, except for a
8common carrier, authorized to ship wine on behalf of the
9manufacturer. The application form shall include an
10acknowledgement consenting to the jurisdiction of the
11Commission, the Illinois Department of Revenue, and the courts
12of this State concerning the enforcement of this Act and any
13related laws, rules, and regulations, including authorizing
14the Department of Revenue and the Commission to conduct audits
15for the purpose of ensuring compliance with Public Act 95-634,
16and an acknowledgement that the wine manufacturer is in
17compliance with Section 6-2 of this Act. Any third party,
18except for a common carrier, authorized to ship wine on behalf
19of a first-class or second-class wine manufacturer's licensee,
20a first-class or second-class wine-maker's licensee, a limited
21wine manufacturer's licensee, or a person who is licensed to
22make wine under the laws of another state shall also be
23disclosed by the winery shipper's licensee, and a copy of the
24written appointment of the third-party wine provider, except
25for a common carrier, to the wine manufacturer shall be filed
26with the State Commission as a supplement to the winery

 

 

10100HB2675ham001- 43 -LRB101 07840 RPS 58994 a

1shipper's license application or any renewal thereof. The
2winery shipper's license holder shall affirm under penalty of
3perjury, as part of the winery shipper's license application or
4renewal, that he or she only ships wine, either directly or
5indirectly through a third-party provider, from the licensee's
6own production.
7    Except for a common carrier, a third-party provider
8shipping wine on behalf of a winery shipper's license holder is
9the agent of the winery shipper's license holder and, as such,
10a winery shipper's license holder is responsible for the acts
11and omissions of the third-party provider acting on behalf of
12the license holder. A third-party provider, except for a common
13carrier, that engages in shipping wine into Illinois on behalf
14of a winery shipper's license holder shall consent to the
15jurisdiction of the State Commission and the State. Any
16third-party, except for a common carrier, holding such an
17appointment shall, by February 1 of each calendar year and upon
18request by the State Commission or the Department of Revenue,
19file with the State Commission a statement detailing each
20shipment made to an Illinois resident. The statement shall
21include the name and address of the third-party provider filing
22the statement, the time period covered by the statement, and
23the following information:
24        (1) the name, address, and license number of the winery
25    shipper on whose behalf the shipment was made;
26        (2) the quantity of the products delivered; and

 

 

10100HB2675ham001- 44 -LRB101 07840 RPS 58994 a

1        (3) the date and address of the shipment.
2If the Department of Revenue or the State Commission requests a
3statement under this paragraph, the third-party provider must
4provide that statement no later than 30 days after the request
5is made. Any books, records, supporting papers, and documents
6containing information and data relating to a statement under
7this paragraph shall be kept and preserved for a period of 3
8years, unless their destruction sooner is authorized, in
9writing, by the Director of Revenue, and shall be open and
10available to inspection by the Director of Revenue or the State
11Commission or any duly authorized officer, agent, or employee
12of the State Commission or the Department of Revenue, at all
13times during business hours of the day. Any person who violates
14any provision of this paragraph or any rule of the State
15Commission for the administration and enforcement of the
16provisions of this paragraph is guilty of a Class C
17misdemeanor. In case of a continuing violation, each day's
18continuance thereof shall be a separate and distinct offense.
19    The State Commission shall adopt rules as soon as
20practicable to implement the requirements of Public Act 99-904
21and shall adopt rules prohibiting any such third-party
22appointment of a third-party provider, except for a common
23carrier, that has been deemed by the State Commission to have
24violated the provisions of this Act with regard to any winery
25shipper licensee.
26    A winery shipper licensee must pay to the Department of

 

 

10100HB2675ham001- 45 -LRB101 07840 RPS 58994 a

1Revenue the State liquor gallonage tax under Section 8-1 for
2all wine that is sold by the licensee and shipped to a person
3in this State. For the purposes of Section 8-1, a winery
4shipper licensee shall be taxed in the same manner as a
5manufacturer of wine. A licensee who is not otherwise required
6to register under the Retailers' Occupation Tax Act must
7register under the Use Tax Act to collect and remit use tax to
8the Department of Revenue for all gallons of wine that are sold
9by the licensee and shipped to persons in this State. If a
10licensee fails to remit the tax imposed under this Act in
11accordance with the provisions of Article VIII of this Act, the
12winery shipper's license shall be revoked in accordance with
13the provisions of Article VII of this Act. If a licensee fails
14to properly register and remit tax under the Use Tax Act or the
15Retailers' Occupation Tax Act for all wine that is sold by the
16winery shipper and shipped to persons in this State, the winery
17shipper's license shall be revoked in accordance with the
18provisions of Article VII of this Act.
19    A winery shipper licensee must collect, maintain, and
20submit to the Commission on a semi-annual basis the total
21number of cases per resident of wine shipped to residents of
22this State. A winery shipper licensed under this subsection (r)
23must comply with the requirements of Section 6-29 of this Act.
24    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
25Section 3-12, the State Commission may receive, respond to, and
26investigate any complaint and impose any of the remedies

 

 

10100HB2675ham001- 46 -LRB101 07840 RPS 58994 a

1specified in paragraph (1) of subsection (a) of Section 3-12.
2    As used in this subsection, "third-party provider" means
3any entity that provides fulfillment house services, including
4warehousing, packaging, distribution, order processing, or
5shipment of wine, but not the sale of wine, on behalf of a
6licensed winery shipper.
7    (s) A craft distiller tasting permit license shall allow an
8Illinois licensed class 1 craft distiller (i) to transfer a
9portion of its alcoholic liquor inventory from its craft
10distiller licensed premises to the premises specified in the
11license hereby created, (ii) to sell and offer for sale at
12retail, but not for resale in any form, up to 5,000 gallons of
13the transferred alcoholic liquor to the extent permitted by any
14exemption approved by the State Commission pursuant to Section
156-4, and (iii) to sell and offer for sale at retail for use and
16consumption on the premises specified in the license vermouth
17liquor purchased from a licensed distributor or importing
18distributor. Upon approval from the State Commission, a craft
19distiller tasting permit license shall allow the licensee to
20sell and offer for sale at the class 1 craft distiller's
21licensed premises. and to conduct a sampling, only in the
22premises specified in the license hereby created, of the
23transferred alcoholic liquor in accordance with subsection (c)
24of Section 6-31 of this Act. The transferred alcoholic liquor
25may not be sold or resold in any form. An applicant for the
26craft distiller tasting permit license must also submit with

 

 

10100HB2675ham001- 47 -LRB101 07840 RPS 58994 a

1the application proof satisfactory to the State Commission that
2the applicant will provide dram shop liability insurance to the
3maximum limits and have local authority approval.
4    (t) A brewer warehouse permit may be issued to the holder
5of a class 1 brewer license or a class 2 brewer license. If the
6holder of the permit is a class 1 brewer licensee, the brewer
7warehouse permit shall allow the holder to store or warehouse
8up to 930,000 gallons of tax-determined beer manufactured by
9the holder of the permit at the premises specified on the
10permit. If the holder of the permit is a class 2 brewer
11licensee, the brewer warehouse permit shall allow the holder to
12store or warehouse up to 3,720,000 gallons of tax-determined
13beer manufactured by the holder of the permit at the premises
14specified on the permit. Sales to non-licensees are prohibited
15at the premises specified in the brewer warehouse permit.
16    (u) A distilling pub license shall allow the licensee to
17only (i) manufacture up to 5,000 gallons of spirits per year
18only on the premises specified in the license, (ii) make sales
19of the spirits manufactured on the premises or, with the
20approval of the State Commission, spirits manufactured on
21another distilling pub licensed premises that is wholly owned
22and operated by the same licensee to importing distributors and
23distributors and to non-licensees for use and consumption,
24(iii) store the spirits upon the premises, (iv) sell and offer
25for sale at retail from the licensed premises for off-premises
26consumption no more than 5,000 gallons per year so long as such

 

 

10100HB2675ham001- 48 -LRB101 07840 RPS 58994 a

1sales are only made in-person, (v) sell and offer for sale at
2retail for use and consumption on the premises specified in the
3license any form of alcoholic liquor purchased from a licensed
4distributor or importing distributor, and (vi) with the prior
5approval of the State Commission, annually transfer no more
6than 5,000 gallons of spirits manufactured on the premises to a
7licensed distilling pub wholly owned and operated by the same
8licensee.
9    A distilling pub licensee shall not under any circumstance
10sell or offer for sale spirits manufactured by the distilling
11pub licensee to retail licensees.
12    A person who holds a class 2 craft distiller license may
13simultaneously hold a distilling pub license if the class 2
14craft distiller (i) does not, under any circumstance, sell or
15offer for sale spirits manufactured by the class 2 craft
16distiller to retail licensees; (ii) does not hold more than 3
17distilling pub licenses in this State; (iii) does not
18manufacture more than a combined 100,000 gallons of spirits per
19year, including the spirits manufactured at the distilling pub;
20and (iv) is not a member of or affiliated with, directly or
21indirectly, a manufacturer that produces more than 100,000
22gallons of spirits per year or any other alcoholic liquor.
23    (v) A craft distiller warehouse permit may be issued to the
24holder of a craft distiller premises license. The craft
25distiller warehouse permit shall allow the holder to store or
26warehouse up to 500,000 gallons of spirits manufactured by the

 

 

10100HB2675ham001- 49 -LRB101 07840 RPS 58994 a

1holder of the permit at the premises specified on the permit.
2Sales to non-licensees are prohibited at the premises specified
3in the craft distiller warehouse permit.
4(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
599-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
61-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
7eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
8revised 10-2-18.)
 
9    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
10    Sec. 5-3. License fees. Except as otherwise provided
11herein, at the time application is made to the State Commission
12for a license of any class, the applicant shall pay to the
13State Commission the fee hereinafter provided for the kind of
14license applied for.
15    The fee for licenses issued by the State Commission shall
16be as follows:
17OnlineInitial
18renewallicense
19 or
20 non-online
21 renewal
22    For a manufacturer's license:
23    Class 1. Distiller .................$4,000$5,000
24    Class 2. Rectifier .................4,000 5,000
25    Class 3. Brewer ....................1,200 1,500

 

 

10100HB2675ham001- 50 -LRB101 07840 RPS 58994 a

1    Class 4. First-class Wine
2        Manufacturer ...................750900
3    Class 5. Second-class
4        Wine Manufacturer ..............1,500 1,750
5    Class 6. First-class wine-maker ....750 900
6    Class 7. Second-class wine-maker ...1,500 1,750
7    Class 8. Limited Wine
8        Manufacturer....................250350
9    Class 9. Class 1 Craft Distiller.... 50 75
10    Class 10. Class 2 Craft Distiller... 75 100
11    Class 11 10. Class 1 Brewer..........50 75
12    Class 12 11. Class 2 Brewer.......... 75 100
13    For a Brew Pub License..............1,2001,500
14    For a Distilling Pub License........ 1,200 1,500
15    For a caterer retailer's license....350 500
16    For a foreign importer's license ...25 25
17    For an importing distributor's
18        license.........................2525
19    For a distributor's license
20        (11,250,000 gallons
21        or over)........................1,4502,200
22    For a distributor's license
23        (over 4,500,000 gallons, but
24        under 11,250,000 gallons)....... 9501,450
25    For a distributor's license
26        (4,500,000 gallons or under)....300450

 

 

10100HB2675ham001- 51 -LRB101 07840 RPS 58994 a

1    For a non-resident dealer's license
2        (500,000 gallons or over) ......1,200 1,500
3    For a non-resident dealer's license
4        (under 500,000 gallons) ........250 350
5    For a wine-maker's premises
6        license ........................250500
7    For a winery shipper's license
8        (under 250,000 gallons).........200 350
9    For a winery shipper's license
10        (250,000 or over, but
11        under 500,000 gallons)..........7501,000
12    For a winery shipper's license
13        (500,000 gallons or over).......1,200 1,500
14    For a wine-maker's premises license,
15        second location ................500 1,000
16    For a wine-maker's premises license,
17        third location .................5001,000
18    For a retailer's license ...........600 750
19    For a special event retailer's
20        license, (not-for-profit) ......25 25
21    For a special use permit license,
22        one day only ...................100 150
23        2 days or more .................150 250
24    For a railroad license .............100 150
25    For a boat license .................500 1,000
26    For an airplane license, times the

 

 

10100HB2675ham001- 52 -LRB101 07840 RPS 58994 a

1        licensee's maximum number of
2        aircraft in flight, serving
3        liquor over the State at any
4        given time, which either
5        originate, terminate, or make
6        an intermediate stop in
7        the State.......................100150
8    For a non-beverage user's license:
9        Class 1 ........................2424
10        Class 2 ........................6060
11        Class 3 ........................120120
12        Class 4 ........................240240
13        Class 5 ........................600600
14    For a broker's license .............750 1,000
15    For an auction liquor license ......100 150
16    For a homebrewer special
17        event permit....................2525
18    For a craft distiller
19        tasting permit..................25 25
20    For a BASSET trainer license........ 300 350
21    For a tasting representative
22        license.........................200300
23    For a brewer warehouse permit....... 2525
24    For a craft distiller
25        warehouse permit...............25 25
26    Fees collected under this Section shall be paid into the

 

 

10100HB2675ham001- 53 -LRB101 07840 RPS 58994 a

1Dram Shop Fund. On and after July 1, 2003 and until June 30,
22016, of the funds received for a retailer's license, in
3addition to the first $175, an additional $75 shall be paid
4into the Dram Shop Fund, and $250 shall be paid into the
5General Revenue Fund. On and after June 30, 2016, one-half of
6the funds received for a retailer's license shall be paid into
7the Dram Shop Fund and one-half of the funds received for a
8retailer's license shall be paid into the General Revenue Fund.
9Beginning June 30, 1990 and on June 30 of each subsequent year
10through June 29, 2003, any balance over $5,000,000 remaining in
11the Dram Shop Fund shall be credited to State liquor licensees
12and applied against their fees for State liquor licenses for
13the following year. The amount credited to each licensee shall
14be a proportion of the balance in the Dram Fund that is the
15same as the proportion of the license fee paid by the licensee
16under this Section for the period in which the balance was
17accumulated to the aggregate fees paid by all licensees during
18that period.
19    No fee shall be paid for licenses issued by the State
20Commission to the following non-beverage users:
21        (a) Hospitals, sanitariums, or clinics when their use
22    of alcoholic liquor is exclusively medicinal, mechanical
23    or scientific.
24        (b) Universities, colleges of learning or schools when
25    their use of alcoholic liquor is exclusively medicinal,
26    mechanical or scientific.

 

 

10100HB2675ham001- 54 -LRB101 07840 RPS 58994 a

1        (c) Laboratories when their use is exclusively for the
2    purpose of scientific research.
3(Source: P.A. 99-448, eff. 8-24-15; 99-902, eff. 8-26-16;
499-904, eff. 8-26-16; 100-201, eff. 8-18-17; 100-816, eff.
58-13-18.)
 
6    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
7    Sec. 6-4. (a) No person licensed by any licensing authority
8as a distiller, or a wine manufacturer, or any subsidiary or
9affiliate thereof, or any officer, associate, member, partner,
10representative, employee, agent or shareholder owning more
11than 5% of the outstanding shares of such person shall be
12issued an importing distributor's or distributor's license,
13nor shall any person licensed by any licensing authority as an
14importing distributor, distributor or retailer, or any
15subsidiary or affiliate thereof, or any officer or associate,
16member, partner, representative, employee, agent or
17shareholder owning more than 5% of the outstanding shares of
18such person be issued a distiller's license, a craft
19distiller's license, or a wine manufacturer's license; and no
20person or persons licensed as a distiller, or class 1 craft
21distiller, or class 2 craft distiller by any licensing
22authority shall have any interest, directly or indirectly, with
23such distributor or importing distributor.
24    However, an importing distributor or distributor, which on
25January 1, 1985 is owned by a brewer, or any subsidiary or

 

 

10100HB2675ham001- 55 -LRB101 07840 RPS 58994 a

1affiliate thereof or any officer, associate, member, partner,
2representative, employee, agent or shareholder owning more
3than 5% of the outstanding shares of the importing distributor
4or distributor referred to in this paragraph, may own or
5acquire an ownership interest of more than 5% of the
6outstanding shares of a wine manufacturer and be issued a wine
7manufacturer's license by any licensing authority.
8    (b) The foregoing provisions shall not apply to any person
9licensed by any licensing authority as a distiller or wine
10manufacturer, or to any subsidiary or affiliate of any
11distiller or wine manufacturer who shall have been heretofore
12licensed by the State Commission as either an importing
13distributor or distributor during the annual licensing period
14expiring June 30, 1947, and shall actually have made sales
15regularly to retailers.
16    (c) Provided, however, that in such instances where a
17distributor's or importing distributor's license has been
18issued to any distiller or wine manufacturer or to any
19subsidiary or affiliate of any distiller or wine manufacturer
20who has, during the licensing period ending June 30, 1947, sold
21or distributed as such licensed distributor or importing
22distributor alcoholic liquors and wines to retailers, such
23distiller or wine manufacturer or any subsidiary or affiliate
24of any distiller or wine manufacturer holding such
25distributor's or importing distributor's license may continue
26to sell or distribute to retailers such alcoholic liquors and

 

 

10100HB2675ham001- 56 -LRB101 07840 RPS 58994 a

1wines which are manufactured, distilled, processed or marketed
2by distillers and wine manufacturers whose products it sold or
3distributed to retailers during the whole or any part of its
4licensing periods; and such additional brands and additional
5products may be added to the line of such distributor or
6importing distributor, provided, that such brands and such
7products were not sold or distributed by any distributor or
8importing distributor licensed by the State Commission during
9the licensing period ending June 30, 1947, but can not sell or
10distribute to retailers any other alcoholic liquors or wines.
11    (d) It shall be unlawful for any distiller licensed
12anywhere to have any stock ownership or interest in any
13distributor's or importing distributor's license wherein any
14other person has an interest therein who is not a distiller and
15does not own more than 5% of any stock in any distillery.
16Nothing herein contained shall apply to such distillers or
17their subsidiaries or affiliates, who had a distributor's or
18importing distributor's license during the licensing period
19ending June 30, 1947, which license was owned in whole by such
20distiller, or subsidiaries or affiliates of such distiller.
21    (e) Any person licensed as a brewer, class 1 brewer, or
22class 2 brewer shall be permitted to sell on the licensed
23premises to non-licensees for on or off-premises consumption
24for the premises in which he or she actually conducts such
25business: (i) beer manufactured by the brewer, class 1 brewer,
26or class 2 brewer; (ii) beer manufactured by any other brewer,

 

 

10100HB2675ham001- 57 -LRB101 07840 RPS 58994 a

1class 1 brewer, or class 2 brewer; and (iii) cider. Such sales
2shall be limited to on-premises, in-person sales only, for
3lawful consumption on or off premises. Such authorization shall
4be considered a privilege granted by the brewer license and,
5other than a manufacturer of beer as stated above, no
6manufacturer or distributor or importing distributor,
7excluding airplane licensees exercising powers provided in
8paragraph (i) of Section 5-1 of this Act, or any subsidiary or
9affiliate thereof, or any officer, associate, member, partner,
10representative, employee or agent, or shareholder shall be
11issued a retailer's license, nor shall any person having a
12retailer's license, excluding airplane licensees exercising
13powers provided in paragraph (i) of Section 5-1 of this Act, or
14any subsidiary or affiliate thereof, or any officer, associate,
15member, partner, representative or agent, or shareholder be
16issued a manufacturer's license or importing distributor's
17license.
18    A manufacturer of beer that imports or transfers beer into
19this State must comply with Sections 6-8 and 8-1 of this Act.
20    A person who holds a class 1 or class 2 brewer license and
21is authorized by this Section to sell beer to non-licensees
22shall not sell beer to non-licensees from more than 3 total
23brewer or commonly owned brew pub licensed locations in this
24State. The class 1 or class 2 brewer shall designate to the
25State Commission the brewer or brew pub locations from which it
26will sell beer to non-licensees.

 

 

10100HB2675ham001- 58 -LRB101 07840 RPS 58994 a

1    A person licensed as a class 1 craft distiller or a class 2
2craft distiller, including a person who holds more than one
3class 1 craft distiller or class 2 craft distiller license, not
4affiliated with any other person manufacturing spirits shall
5may be authorized by the State Commission to sell on the
6licensed premises to non-licensees for on-premises or
7off-premises consumption for the premises in which he or she
8actually conducts such business: (1) up to 5,000 2,500 gallons
9of spirits produced by the class 1 craft distiller or class 2
10craft distiller; (2) spirits manufactured by any other class 1
11craft distiller or class 2 craft distiller; and (3) vermouth
12person to non-licensees for on or off-premises consumption for
13the premises in which he or she actually conducts business
14permitting only the retail sale of spirits manufactured at such
15premises. Such sales shall be limited to on-premises, in-person
16sales only, for lawful consumption on or off premises, and such
17authorization shall be considered a privilege granted by the
18class 1 craft distiller or class 2 craft distiller license. A
19class 1 craft distiller or class 2 craft distiller licensed for
20retail sale shall secure liquor liability insurance coverage in
21an amount at least equal to the maximum liability amounts set
22forth in subsection (a) of Section 6-21 of this Act.
23    A class 1 or class 2 craft distiller license holder shall
24not deliver any alcoholic liquor to any non-licensee off the
25licensed premises. A class 1 craft distiller or class 2 craft
26distiller shall affirm in its annual craft distiller's license

 

 

10100HB2675ham001- 59 -LRB101 07840 RPS 58994 a

1application that it does not produce more than 100,000 gallons
2of distilled spirits or 50,000 gallons of distilled spirits,
3whichever is applicable, annually and that the craft distiller
4does not sell more than 5,000 2,500 gallons of spirits to
5non-licensees for on or off-premises consumption. In the
6application, which shall be sworn under penalty of perjury, the
7class 1 craft distiller or class 2 craft distiller shall state
8the volume of production and sales for each year since the
9class 1 craft distiller's or class 2 craft distiller's
10establishment.
11    (f) (Blank).
12    (g) Notwithstanding any of the foregoing prohibitions, a
13limited wine manufacturer may sell at retail at its
14manufacturing site for on or off premises consumption and may
15sell to distributors. A limited wine manufacturer licensee
16shall secure liquor liability insurance coverage in an amount
17at least equal to the maximum liability amounts set forth in
18subsection (a) of Section 6-21 of this Act.
19    (h) The changes made to this Section by Public Act 99-47
20shall not diminish or impair the rights of any person, whether
21a distiller, wine manufacturer, agent, or affiliate thereof,
22who requested in writing and submitted documentation to the
23State Commission on or before February 18, 2015 to be approved
24for a retail license pursuant to what has heretofore been
25subsection (f); provided that, on or before that date, the
26State Commission considered the intent of that person to apply

 

 

10100HB2675ham001- 60 -LRB101 07840 RPS 58994 a

1for the retail license under that subsection and, by recorded
2vote, the State Commission approved a resolution indicating
3that such a license application could be lawfully approved upon
4that person duly filing a formal application for a retail
5license and if that person, within 90 days of the State
6Commission appearance and recorded vote, first filed an
7application with the appropriate local commission, which
8application was subsequently approved by the appropriate local
9commission prior to consideration by the State Commission of
10that person's application for a retail license. It is further
11provided that the State Commission may approve the person's
12application for a retail license or renewals of such license if
13such person continues to diligently adhere to all
14representations made in writing to the State Commission on or
15before February 18, 2015, or thereafter, or in the affidavit
16filed by that person with the State Commission to support the
17issuance of a retail license and to abide by all applicable
18laws and duly adopted rules.
19(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
2099-642, eff. 7-28-16; 99-902, eff. 8-26-16; 100-201, eff.
218-18-17; 100-816, eff. 8-13-18; 100-885, eff. 8-14-18; revised
2210-24-18.)
 
23    (235 ILCS 5/6-31)
24    Sec. 6-31. Product sampling.
25    (a) Retailer, distributor, importing distributor,

 

 

10100HB2675ham001- 61 -LRB101 07840 RPS 58994 a

1manufacturer and nonresident dealer licensees may conduct
2product sampling for consumption at a licensed retail location.
3Up to 3 samples, consisting of no more than (i) 1/4 ounce of
4distilled spirits, (ii) one ounce of wine, or (iii) 2 ounces of
5beer may be served to a consumer in one day.
6    (b) Notwithstanding the provisions of subsection (a), an
7on-premises retail licensee may offer for sale and serve more
8than one drink per person for sampling purposes. In any event,
9all provisions of Section 6-28 shall apply to an on-premises
10retail licensee that conducts product sampling.
11    (c)(Blank). A craft distiller tasting permit licensee may
12conduct product sampling of distilled spirits for consumption
13at the location specified in the craft distiller tasting permit
14license. Up to 3 samples, consisting of no more than 1/4 ounce
15of distilled spirits, may be served to a consumer in one day.
16(Source: P.A. 99-46, eff. 7-15-15; 99-902, eff. 8-26-16.)".