101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3610

 

Introduced , by Rep. Will Guzzardi

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/5-1  from Ch. 43, par. 115

    Amends the Liquor Control Act of 1934. Provides that a brew pub license shall allow the licensee to manufacture up to 155,000 gallons of beer per year through a written agreement with a brewer, class 1 brewer, class 2 brewer, or brew pub and to make sales of the beer manufactured through a written agreement with a brewer, class 1 brewer, class 2 brewer, or brew pub. Provides that brew pubs wholly owned and operated by the same licensee may combine each location's production limit of 155,000 gallons of beer per year and allocate the aggregate total between the wholly owned, operated, and licensed locations. Effective immediately.


LRB101 08863 RPS 53953 b

 

 

A BILL FOR

 

HB3610LRB101 08863 RPS 53953 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Section 5-1 as follows:
 
6    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
7    Sec. 5-1. Licenses issued by the Illinois Liquor Control
8Commission shall be of the following classes:
9    (a) Manufacturer's license - Class 1. Distiller, Class 2.
10Rectifier, Class 3. Brewer, Class 4. First Class Wine
11Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
12First Class Winemaker, Class 7. Second Class Winemaker, Class
138. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1410. Class 1 Brewer, Class 11. Class 2 Brewer,
15    (b) Distributor's license,
16    (c) Importing Distributor's license,
17    (d) Retailer's license,
18    (e) Special Event Retailer's license (not-for-profit),
19    (f) Railroad license,
20    (g) Boat license,
21    (h) Non-Beverage User's license,
22    (i) Wine-maker's premises license,
23    (j) Airplane license,

 

 

HB3610- 2 -LRB101 08863 RPS 53953 b

1    (k) Foreign importer's license,
2    (l) Broker's license,
3    (m) Non-resident dealer's license,
4    (n) Brew Pub license,
5    (o) Auction liquor license,
6    (p) Caterer retailer license,
7    (q) Special use permit license,
8    (r) Winery shipper's license,
9    (s) Craft distiller tasting permit,
10    (t) Brewer warehouse permit.
11    No person, firm, partnership, corporation, or other legal
12business entity that is engaged in the manufacturing of wine
13may concurrently obtain and hold a wine-maker's license and a
14wine manufacturer's license.
15    (a) A manufacturer's license shall allow the manufacture,
16importation in bulk, storage, distribution and sale of
17alcoholic liquor to persons without the State, as may be
18permitted by law and to licensees in this State as follows:
19    Class 1. A Distiller may make sales and deliveries of
20alcoholic liquor to distillers, rectifiers, importing
21distributors, distributors and non-beverage users and to no
22other licensees.
23    Class 2. A Rectifier, who is not a distiller, as defined
24herein, may make sales and deliveries of alcoholic liquor to
25rectifiers, importing distributors, distributors, retailers
26and non-beverage users and to no other licensees.

 

 

HB3610- 3 -LRB101 08863 RPS 53953 b

1    Class 3. A Brewer may make sales and deliveries of beer to
2importing distributors and distributors and may make sales as
3authorized under subsection (e) of Section 6-4 of this Act.
4    Class 4. A first class wine-manufacturer may make sales and
5deliveries of up to 50,000 gallons of wine to manufacturers,
6importing distributors and distributors, and to no other
7licensees.
8    Class 5. A second class Wine manufacturer may make sales
9and deliveries of more than 50,000 gallons of wine to
10manufacturers, importing distributors and distributors and to
11no other licensees.
12    Class 6. A first-class wine-maker's license shall allow the
13manufacture of up to 50,000 gallons of wine per year, and the
14storage and sale of such wine to distributors in the State and
15to persons without the State, as may be permitted by law. A
16person who, prior to June 1, 2008 (the effective date of Public
17Act 95-634), is a holder of a first-class wine-maker's license
18and annually produces more than 25,000 gallons of its own wine
19and who distributes its wine to licensed retailers shall cease
20this practice on or before July 1, 2008 in compliance with
21Public Act 95-634.
22    Class 7. A second-class wine-maker's license shall allow
23the manufacture of between 50,000 and 150,000 gallons of wine
24per year, and the storage and sale of such wine to distributors
25in this State and to persons without the State, as may be
26permitted by law. A person who, prior to June 1, 2008 (the

 

 

HB3610- 4 -LRB101 08863 RPS 53953 b

1effective date of Public Act 95-634), is a holder of a
2second-class wine-maker's license and annually produces more
3than 25,000 gallons of its own wine and who distributes its
4wine to licensed retailers shall cease this practice on or
5before July 1, 2008 in compliance with Public Act 95-634.
6    Class 8. A limited wine-manufacturer may make sales and
7deliveries not to exceed 40,000 gallons of wine per year to
8distributors, and to non-licensees in accordance with the
9provisions of this Act.
10    Class 9. A craft distiller license shall allow the
11manufacture of up to 100,000 gallons of spirits by distillation
12per year and the storage of such spirits. If a craft distiller
13licensee, including a craft distiller licensee who holds more
14than one craft distiller license, is not affiliated with any
15other manufacturer of spirits, then the craft distiller
16licensee may sell such spirits to distributors in this State
17and up to 2,500 gallons of such spirits to non-licensees to the
18extent permitted by any exemption approved by the Commission
19pursuant to Section 6-4 of this Act. A craft distiller license
20holder may store such spirits at a non-contiguous licensed
21location, but at no time shall a craft distiller license holder
22directly or indirectly produce in the aggregate more than
23100,000 gallons of spirits per year.
24    A craft distiller licensee may hold more than one craft
25distiller's license. However, a craft distiller that holds more
26than one craft distiller license shall not manufacture, in the

 

 

HB3610- 5 -LRB101 08863 RPS 53953 b

1aggregate, more than 100,000 gallons of spirits by distillation
2per year and shall not sell, in the aggregate, more than 2,500
3gallons of such spirits to non-licensees in accordance with an
4exemption approved by the State Commission pursuant to Section
56-4 of this Act.
6    Any craft distiller licensed under this Act who on July 28,
72010 (the effective date of Public Act 96-1367) was licensed as
8a distiller and manufactured no more spirits than permitted by
9this Section shall not be required to pay the initial licensing
10fee.
11    Class 10. A class 1 brewer license, which may only be
12issued to a licensed brewer or licensed non-resident dealer,
13shall allow the manufacture of up to 930,000 gallons of beer
14per year provided that the class 1 brewer licensee does not
15manufacture more than a combined 930,000 gallons of beer per
16year and is not a member of or affiliated with, directly or
17indirectly, a manufacturer that produces more than 930,000
18gallons of beer per year or any other alcoholic liquor. A class
191 brewer licensee may make sales and deliveries to importing
20distributors and distributors and to retail licensees in
21accordance with the conditions set forth in paragraph (18) of
22subsection (a) of Section 3-12 of this Act. If the State
23Commission provides prior approval, a class 1 brewer may
24annually transfer up to 930,000 gallons of beer manufactured by
25that class 1 brewer to the premises of a licensed class 1
26brewer wholly owned and operated by the same licensee.

 

 

HB3610- 6 -LRB101 08863 RPS 53953 b

1    Class 11. A class 2 brewer license, which may only be
2issued to a licensed brewer or licensed non-resident dealer,
3shall allow the manufacture of up to 3,720,000 gallons of beer
4per year provided that the class 2 brewer licensee does not
5manufacture more than a combined 3,720,000 gallons of beer per
6year and is not a member of or affiliated with, directly or
7indirectly, a manufacturer that produces more than 3,720,000
8gallons of beer per year or any other alcoholic liquor. A class
92 brewer licensee may make sales and deliveries to importing
10distributors and distributors, but shall not make sales or
11deliveries to any other licensee. If the State Commission
12provides prior approval, a class 2 brewer licensee may annually
13transfer up to 3,720,000 gallons of beer manufactured by that
14class 2 brewer licensee to the premises of a licensed class 2
15brewer wholly owned and operated by the same licensee.
16    A class 2 brewer may transfer beer to a brew pub wholly
17owned and operated by the class 2 brewer subject to the
18following limitations and restrictions: (i) the transfer shall
19not annually exceed more than 31,000 gallons; (ii) the annual
20amount transferred shall reduce the brew pub's annual permitted
21production limit; (iii) all beer transferred shall be subject
22to Article VIII of this Act; (iv) a written record shall be
23maintained by the brewer and brew pub specifying the amount,
24date of delivery, and receipt of the product by the brew pub;
25and (v) the brew pub shall be located no farther than 80 miles
26from the class 2 brewer's licensed location.

 

 

HB3610- 7 -LRB101 08863 RPS 53953 b

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

 

 

HB3610- 8 -LRB101 08863 RPS 53953 b

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

 

 

HB3610- 9 -LRB101 08863 RPS 53953 b

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

 

 

HB3610- 10 -LRB101 08863 RPS 53953 b

1under subsection (e).
2    (e) A special event retailer's license (not-for-profit)
3shall permit the licensee to purchase alcoholic liquors from an
4Illinois licensed distributor (unless the licensee purchases
5less than $500 of alcoholic liquors for the special event, in
6which case the licensee may purchase the alcoholic liquors from
7a licensed retailer) and shall allow the licensee to sell and
8offer for sale, at retail, alcoholic liquors for use or
9consumption, but not for resale in any form and only at the
10location and on the specific dates designated for the special
11event in the license. An applicant for a special event retailer
12license must (i) furnish with the application: (A) a resale
13number issued under Section 2c of the Retailers' Occupation Tax
14Act or evidence that the applicant is registered under Section
152a of the Retailers' Occupation Tax Act, (B) a current, valid
16exemption identification number issued under Section 1g of the
17Retailers' Occupation Tax Act, and a certification to the
18Commission that the purchase of alcoholic liquors will be a
19tax-exempt purchase, or (C) a statement that the applicant is
20not registered under Section 2a of the Retailers' Occupation
21Tax Act, does not hold a resale number under Section 2c of the
22Retailers' Occupation Tax Act, and does not hold an exemption
23number under Section 1g of the Retailers' Occupation Tax Act,
24in which event the Commission shall set forth on the special
25event retailer's license a statement to that effect; (ii)
26submit with the application proof satisfactory to the State

 

 

HB3610- 11 -LRB101 08863 RPS 53953 b

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

 

 

HB3610- 12 -LRB101 08863 RPS 53953 b

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

 

 

HB3610- 13 -LRB101 08863 RPS 53953 b

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

 

 

HB3610- 14 -LRB101 08863 RPS 53953 b

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

 

 

HB3610- 15 -LRB101 08863 RPS 53953 b

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

 

 

HB3610- 16 -LRB101 08863 RPS 53953 b

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

 

 

HB3610- 17 -LRB101 08863 RPS 53953 b

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

 

 

HB3610- 18 -LRB101 08863 RPS 53953 b

1brew pub, (ii) make sales of the beer manufactured on the
2premises or through a written agreement with a brewer, class 1
3brewer, class 2 brewer, or brew pub or, with the approval of
4the Commission, beer manufactured on another brew pub licensed
5premises that is wholly owned and operated by the same licensee
6to importing distributors, distributors, and to non-licensees
7for use and consumption, (iii) store the beer upon the
8premises, (iv) sell and offer for sale at retail from the
9licensed premises for off-premises consumption no more than
10155,000 gallons per year so long as such sales are only made
11in-person, (v) sell and offer for sale at retail for use and
12consumption on the premises specified in the license any form
13of alcoholic liquor purchased from a licensed distributor or
14importing distributor, and (vi) with the prior approval of the
15Commission, annually transfer no more than 155,000 gallons of
16beer manufactured on the premises to a licensed brew pub wholly
17owned and operated by the same licensee, and (vii)
18notwithstanding item (i) of this subsection, brew pubs wholly
19owned and operated by the same licensee may combine each
20location's production limit of 155,000 gallons of beer per year
21and allocate the aggregate total between the wholly owned,
22operated, and licensed locations.
23    A brew pub licensee shall not under any circumstance sell
24or offer for sale beer manufactured by the brew pub licensee to
25retail licensees.
26    A person who holds a class 2 brewer license may

 

 

HB3610- 19 -LRB101 08863 RPS 53953 b

1simultaneously hold a brew pub license if the class 2 brewer
2(i) does not, under any circumstance, sell or offer for sale
3beer manufactured by the class 2 brewer to retail licensees;
4(ii) does not hold more than 3 brew pub licenses in this State;
5(iii) does not manufacture more than a combined 3,720,000
6gallons of beer per year, including the beer manufactured at
7the brew pub; and (iv) is not a member of or affiliated with,
8directly or indirectly, a manufacturer that produces more than
93,720,000 gallons of beer per year or any other alcoholic
10liquor.
11    Notwithstanding any other provision of this Act, a licensed
12brewer, class 2 brewer, or non-resident dealer who before July
131, 2015 manufactured less than 3,720,000 gallons of beer per
14year and held a brew pub license on or before July 1, 2015 may
15(i) continue to qualify for and hold that brew pub license for
16the licensed premises and (ii) manufacture more than 3,720,000
17gallons of beer per year and continue to qualify for and hold
18that brew pub license if that brewer, class 2 brewer, or
19non-resident dealer does not simultaneously hold a class 1
20brewer license and is not a member of or affiliated with,
21directly or indirectly, a manufacturer that produces more than
223,720,000 gallons of beer per year or that produces any other
23alcoholic liquor.
24    (o) A caterer retailer license shall allow the holder to
25serve alcoholic liquors as an incidental part of a food service
26that serves prepared meals which excludes the serving of snacks

 

 

HB3610- 20 -LRB101 08863 RPS 53953 b

1as the primary meal, either on or off-site whether licensed or
2unlicensed.
3    (p) An auction liquor license shall allow the licensee to
4sell and offer for sale at auction wine and spirits for use or
5consumption, or for resale by an Illinois liquor licensee in
6accordance with provisions of this Act. An auction liquor
7license will be issued to a person and it will permit the
8auction liquor licensee to hold the auction anywhere in the
9State. An auction liquor license must be obtained for each
10auction at least 14 days in advance of the auction date.
11    (q) A special use permit license shall allow an Illinois
12licensed retailer to transfer a portion of its alcoholic liquor
13inventory from its retail licensed premises to the premises
14specified in the license hereby created, and to sell or offer
15for sale at retail, only in the premises specified in the
16license hereby created, the transferred alcoholic liquor for
17use or consumption, but not for resale in any form. A special
18use permit license may be granted for the following time
19periods: one day or less; 2 or more days to a maximum of 15 days
20per location in any 12-month period. An applicant for the
21special use permit license must also submit with the
22application proof satisfactory to the State Commission that the
23applicant will provide dram shop liability insurance to the
24maximum limits and have local authority approval.
25    (r) A winery shipper's license shall allow a person with a
26first-class or second-class wine manufacturer's license, a

 

 

HB3610- 21 -LRB101 08863 RPS 53953 b

1first-class or second-class wine-maker's license, or a limited
2wine manufacturer's license or who is licensed to make wine
3under the laws of another state to ship wine made by that
4licensee directly to a resident of this State who is 21 years
5of age or older for that resident's personal use and not for
6resale. Prior to receiving a winery shipper's license, an
7applicant for the license must provide the Commission with a
8true copy of its current license in any state in which it is
9licensed as a manufacturer of wine. An applicant for a winery
10shipper's license must also complete an application form that
11provides any other information the Commission deems necessary.
12The application form shall include all addresses from which the
13applicant for a winery shipper's license intends to ship wine,
14including the name and address of any third party, except for a
15common carrier, authorized to ship wine on behalf of the
16manufacturer. The application form shall include an
17acknowledgement consenting to the jurisdiction of the
18Commission, the Illinois Department of Revenue, and the courts
19of this State concerning the enforcement of this Act and any
20related laws, rules, and regulations, including authorizing
21the Department of Revenue and the Commission to conduct audits
22for the purpose of ensuring compliance with Public Act 95-634,
23and an acknowledgement that the wine manufacturer is in
24compliance with Section 6-2 of this Act. Any third party,
25except for a common carrier, authorized to ship wine on behalf
26of a first-class or second-class wine manufacturer's licensee,

 

 

HB3610- 22 -LRB101 08863 RPS 53953 b

1a first-class or second-class wine-maker's licensee, a limited
2wine manufacturer's licensee, or a person who is licensed to
3make wine under the laws of another state shall also be
4disclosed by the winery shipper's licensee, and a copy of the
5written appointment of the third-party wine provider, except
6for a common carrier, to the wine manufacturer shall be filed
7with the State Commission as a supplement to the winery
8shipper's license application or any renewal thereof. The
9winery shipper's license holder shall affirm under penalty of
10perjury, as part of the winery shipper's license application or
11renewal, that he or she only ships wine, either directly or
12indirectly through a third-party provider, from the licensee's
13own production.
14    Except for a common carrier, a third-party provider
15shipping wine on behalf of a winery shipper's license holder is
16the agent of the winery shipper's license holder and, as such,
17a winery shipper's license holder is responsible for the acts
18and omissions of the third-party provider acting on behalf of
19the license holder. A third-party provider, except for a common
20carrier, that engages in shipping wine into Illinois on behalf
21of a winery shipper's license holder shall consent to the
22jurisdiction of the State Commission and the State. Any
23third-party, except for a common carrier, holding such an
24appointment shall, by February 1 of each calendar year and upon
25request by the State Commission or the Department of Revenue,
26file with the State Commission a statement detailing each

 

 

HB3610- 23 -LRB101 08863 RPS 53953 b

1shipment made to an Illinois resident. The statement shall
2include the name and address of the third-party provider filing
3the statement, the time period covered by the statement, and
4the following information:
5        (1) the name, address, and license number of the winery
6    shipper on whose behalf the shipment was made;
7        (2) the quantity of the products delivered; and
8        (3) the date and address of the shipment.
9If the Department of Revenue or the State Commission requests a
10statement under this paragraph, the third-party provider must
11provide that statement no later than 30 days after the request
12is made. Any books, records, supporting papers, and documents
13containing information and data relating to a statement under
14this paragraph shall be kept and preserved for a period of 3
15years, unless their destruction sooner is authorized, in
16writing, by the Director of Revenue, and shall be open and
17available to inspection by the Director of Revenue or the State
18Commission or any duly authorized officer, agent, or employee
19of the State Commission or the Department of Revenue, at all
20times during business hours of the day. Any person who violates
21any provision of this paragraph or any rule of the State
22Commission for the administration and enforcement of the
23provisions of this paragraph is guilty of a Class C
24misdemeanor. In case of a continuing violation, each day's
25continuance thereof shall be a separate and distinct offense.
26    The State Commission shall adopt rules as soon as

 

 

HB3610- 24 -LRB101 08863 RPS 53953 b

1practicable to implement the requirements of Public Act 99-904
2and shall adopt rules prohibiting any such third-party
3appointment of a third-party provider, except for a common
4carrier, that has been deemed by the State Commission to have
5violated the provisions of this Act with regard to any winery
6shipper licensee.
7    A winery shipper licensee must pay to the Department of
8Revenue the State liquor gallonage tax under Section 8-1 for
9all wine that is sold by the licensee and shipped to a person
10in this State. For the purposes of Section 8-1, a winery
11shipper licensee shall be taxed in the same manner as a
12manufacturer of wine. A licensee who is not otherwise required
13to register under the Retailers' Occupation Tax Act must
14register under the Use Tax Act to collect and remit use tax to
15the Department of Revenue for all gallons of wine that are sold
16by the licensee and shipped to persons in this State. If a
17licensee fails to remit the tax imposed under this Act in
18accordance with the provisions of Article VIII of this Act, the
19winery shipper's license shall be revoked in accordance with
20the provisions of Article VII of this Act. If a licensee fails
21to properly register and remit tax under the Use Tax Act or the
22Retailers' Occupation Tax Act for all wine that is sold by the
23winery shipper and shipped to persons in this State, the winery
24shipper's license shall be revoked in accordance with the
25provisions of Article VII of this Act.
26    A winery shipper licensee must collect, maintain, and

 

 

HB3610- 25 -LRB101 08863 RPS 53953 b

1submit to the Commission on a semi-annual basis the total
2number of cases per resident of wine shipped to residents of
3this State. A winery shipper licensed under this subsection (r)
4must comply with the requirements of Section 6-29 of this Act.
5    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
6Section 3-12, the State Commission may receive, respond to, and
7investigate any complaint and impose any of the remedies
8specified in paragraph (1) of subsection (a) of Section 3-12.
9    As used in this subsection, "third-party provider" means
10any entity that provides fulfillment house services, including
11warehousing, packaging, distribution, order processing, or
12shipment of wine, but not the sale of wine, on behalf of a
13licensed winery shipper.
14    (s) A craft distiller tasting permit license shall allow an
15Illinois licensed craft distiller to transfer a portion of its
16alcoholic liquor inventory from its craft distiller licensed
17premises to the premises specified in the license hereby
18created and to conduct a sampling, only in the premises
19specified in the license hereby created, of the transferred
20alcoholic liquor in accordance with subsection (c) of Section
216-31 of this Act. The transferred alcoholic liquor may not be
22sold or resold in any form. An applicant for the craft
23distiller tasting permit license must also submit with the
24application proof satisfactory to the State Commission that the
25applicant will provide dram shop liability insurance to the
26maximum limits and have local authority approval.

 

 

HB3610- 26 -LRB101 08863 RPS 53953 b

1    A brewer warehouse permit may be issued to the holder of a
2class 1 brewer license or a class 2 brewer license. If the
3holder of the permit is a class 1 brewer licensee, the brewer
4warehouse permit shall allow the holder to store or warehouse
5up to 930,000 gallons of tax-determined beer manufactured by
6the holder of the permit at the premises specified on the
7permit. If the holder of the permit is a class 2 brewer
8licensee, the brewer warehouse permit shall allow the holder to
9store or warehouse up to 3,720,000 gallons of tax-determined
10beer manufactured by the holder of the permit at the premises
11specified on the permit. Sales to non-licensees are prohibited
12at the premises specified in the brewer warehouse permit.
13(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
1499-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
151-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
16eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
17revised 10-2-18.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.