SB1831 EnrolledLRB101 09851 RPS 54953 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 Sections 5-1, 6-6, 6-6.5, 8-1, and 8-5 and by adding
6Sections 6-5.5 and 6-6.6 as follows:
 
7    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
8    Sec. 5-1. Licenses issued by the Illinois Liquor Control
9Commission shall be of the following classes:
10    (a) Manufacturer's license - Class 1. Distiller, Class 2.
11Rectifier, Class 3. Brewer, Class 4. First Class Wine
12Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
13First Class Winemaker, Class 7. Second Class Winemaker, Class
148. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1510. Class 1 Brewer, Class 11. Class 2 Brewer,
16    (b) Distributor's license,
17    (c) Importing Distributor's license,
18    (d) Retailer's license,
19    (e) Special Event Retailer's license (not-for-profit),
20    (f) Railroad license,
21    (g) Boat license,
22    (h) Non-Beverage User's license,
23    (i) Wine-maker's premises license,

 

 

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

 

 

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

 

 

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1permitted by law. A person who, prior to June 1, 2008 (the
2effective date of Public Act 95-634), is a holder of a
3second-class wine-maker's license and annually produces more
4than 25,000 gallons of its own wine and who distributes its
5wine to licensed retailers shall cease this practice on or
6before July 1, 2008 in compliance with Public Act 95-634.
7    Class 8. A limited wine-manufacturer may make sales and
8deliveries not to exceed 40,000 gallons of wine per year to
9distributors, and to non-licensees in accordance with the
10provisions of this Act.
11    Class 9. A craft distiller license shall allow the
12manufacture of up to 100,000 gallons of spirits by distillation
13per year and the storage of such spirits. If a craft distiller
14licensee, including a craft distiller licensee who holds more
15than one craft distiller license, is not affiliated with any
16other manufacturer of spirits, then the craft distiller
17licensee may sell such spirits to distributors in this State
18and up to 2,500 gallons of such spirits to non-licensees to the
19extent permitted by any exemption approved by the Commission
20pursuant to Section 6-4 of this Act. A craft distiller license
21holder may store such spirits at a non-contiguous licensed
22location, but at no time shall a craft distiller license holder
23directly or indirectly produce in the aggregate more than
24100,000 gallons 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

 

 

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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 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

 

 

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1brewer wholly owned and operated by the same licensee.
2    Class 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

 

 

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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

 

 

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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,

 

 

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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

 

 

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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)

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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,

 

 

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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. A caterer retailer license shall allow the holder,
22a distributor, or an importing distributor to transfer any
23inventory to and from the holder's retail premises and shall
24allow the holder to purchase alcoholic liquor from a
25distributor or importing distributor to be delivered directly
26to an off-site event.

 

 

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1    Nothing in this Act prohibits a distributor or importing
2distributor from offering credit or a refund for unused,
3salable beer to a holder of a caterer retailer license or a
4caterer retailer licensee from accepting a credit or refund for
5unused, salable beer, in the event an act of God is the sole
6reason an off-site event is cancelled and if: (i) the holder of
7a caterer retailer license has not transferred alcoholic liquor
8from its caterer retailer premises to an off-site location;
9(ii) the distributor or importing distributor offers the credit
10or refund for the unused, salable beer that it delivered to the
11off-site premises and not for any unused, salable beer that the
12distributor or importing distributor delivered to the caterer
13retailer's premises; and (iii) the unused, salable beer would
14likely spoil if transferred to the caterer retailer's premises.
15A caterer retailer license shall allow the holder to transfer
16any inventory from any off-site location to its caterer
17retailer premises at the conclusion of an off-site event or
18engage a distributor or importing distributor to transfer any
19inventory from any off-site location to its caterer retailer
20premises at the conclusion of an off-site event, provided that
21the distributor or importing distributor issues bona fide
22charges to the caterer retailer licensee for fuel, labor, and
23delivery and the distributor or importing distributor collects
24payment from the caterer retailer licensee prior to the
25distributor or importing distributor transferring inventory to
26the caterer retailer premises.

 

 

SB1831 Enrolled- 21 -LRB101 09851 RPS 54953 b

1    For purposes of this subsection (o), an "act of God" means
2an unforeseeable event, such as a rain or snow storm, hail, a
3flood, or a similar event, that is the sole cause of the
4cancellation of an off-site, outdoor event.
5    (p) An auction liquor license shall allow the licensee to
6sell and offer for sale at auction wine and spirits for use or
7consumption, or for resale by an Illinois liquor licensee in
8accordance with provisions of this Act. An auction liquor
9license will be issued to a person and it will permit the
10auction liquor licensee to hold the auction anywhere in the
11State. An auction liquor license must be obtained for each
12auction at least 14 days in advance of the auction date.
13    (q) A special use permit license shall allow an Illinois
14licensed retailer to transfer a portion of its alcoholic liquor
15inventory from its retail licensed premises to the premises
16specified in the license hereby created; to purchase alcoholic
17liquor from a distributor or importing distributor to be
18delivered directly to the location specified in the license
19hereby created; , and to sell or offer for sale at retail, only
20in the premises specified in the license hereby created, the
21transferred or delivered alcoholic liquor for use or
22consumption, but not for resale in any form. A special use
23permit license may be granted for the following time periods:
24one day or less; 2 or more days to a maximum of 15 days per
25location in any 12-month period. An applicant for the special
26use permit license must also submit with the application proof

 

 

SB1831 Enrolled- 22 -LRB101 09851 RPS 54953 b

1satisfactory to the State Commission that the applicant will
2provide dram shop liability insurance to the maximum limits and
3have local authority approval.
4    A special use permit license shall allow the holder to
5transfer any inventory from the holder's special use premises
6to its retail premises at the conclusion of the special use
7event or engage a distributor or importing distributor to
8transfer any inventory from the holder's special use premises
9to its retail premises at the conclusion of an off-site event,
10provided that the distributor or importing distributor issues
11bona fide charges to the special use permit licensee for fuel,
12labor, and delivery and the distributor or importing
13distributor collects payment from the retail licensee prior to
14the distributor or importing distributor transferring
15inventory to the retail premises.
16    Nothing in this Act prohibits a distributor or importing
17distributor from offering credit or a refund for unused,
18salable beer to a special use permit licensee or a special use
19permit licensee from accepting a credit or refund for unused,
20salable beer at the conclusion of the event specified in the
21license if: (i) the holder of the special use permit license
22has not transferred alcoholic liquor from its retail licensed
23premises to the premises specified in the special use permit
24license; (ii) the distributor or importing distributor offers
25the credit or refund for the unused, salable beer that it
26delivered to the premises specified in the special use permit

 

 

SB1831 Enrolled- 23 -LRB101 09851 RPS 54953 b

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

 

 

SB1831 Enrolled- 24 -LRB101 09851 RPS 54953 b

1the Department of Revenue and the Commission to conduct audits
2for the purpose of ensuring compliance with Public Act 95-634,
3and an acknowledgement that the wine manufacturer is in
4compliance with Section 6-2 of this Act. Any third party,
5except for a common carrier, authorized to ship wine on behalf
6of a first-class or second-class wine manufacturer's licensee,
7a first-class or second-class wine-maker's licensee, a limited
8wine manufacturer's licensee, or a person who is licensed to
9make wine under the laws of another state shall also be
10disclosed by the winery shipper's licensee, and a copy of the
11written appointment of the third-party wine provider, except
12for a common carrier, to the wine manufacturer shall be filed
13with the State Commission as a supplement to the winery
14shipper's license application or any renewal thereof. The
15winery shipper's license holder shall affirm under penalty of
16perjury, as part of the winery shipper's license application or
17renewal, that he or she only ships wine, either directly or
18indirectly through a third-party provider, from the licensee's
19own production.
20    Except for a common carrier, a third-party provider
21shipping wine on behalf of a winery shipper's license holder is
22the agent of the winery shipper's license holder and, as such,
23a winery shipper's license holder is responsible for the acts
24and omissions of the third-party provider acting on behalf of
25the license holder. A third-party provider, except for a common
26carrier, that engages in shipping wine into Illinois on behalf

 

 

SB1831 Enrolled- 25 -LRB101 09851 RPS 54953 b

1of a winery shipper's license holder shall consent to the
2jurisdiction of the State Commission and the State. Any
3third-party, except for a common carrier, holding such an
4appointment shall, by February 1 of each calendar year and upon
5request by the State Commission or the Department of Revenue,
6file with the State Commission a statement detailing each
7shipment made to an Illinois resident. The statement shall
8include the name and address of the third-party provider filing
9the statement, the time period covered by the statement, and
10the following information:
11        (1) the name, address, and license number of the winery
12    shipper on whose behalf the shipment was made;
13        (2) the quantity of the products delivered; and
14        (3) the date and address of the shipment.
15If the Department of Revenue or the State Commission requests a
16statement under this paragraph, the third-party provider must
17provide that statement no later than 30 days after the request
18is made. Any books, records, supporting papers, and documents
19containing information and data relating to a statement under
20this paragraph shall be kept and preserved for a period of 3
21years, unless their destruction sooner is authorized, in
22writing, by the Director of Revenue, and shall be open and
23available to inspection by the Director of Revenue or the State
24Commission or any duly authorized officer, agent, or employee
25of the State Commission or the Department of Revenue, at all
26times during business hours of the day. Any person who violates

 

 

SB1831 Enrolled- 26 -LRB101 09851 RPS 54953 b

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

 

 

SB1831 Enrolled- 27 -LRB101 09851 RPS 54953 b

1to properly register and remit tax under the Use Tax Act or the
2Retailers' Occupation Tax Act for all wine that is sold by the
3winery shipper and shipped to persons in this State, the winery
4shipper's license shall be revoked in accordance with the
5provisions of Article VII of this Act.
6    A winery shipper licensee must collect, maintain, and
7submit to the Commission on a semi-annual basis the total
8number of cases per resident of wine shipped to residents of
9this State. A winery shipper licensed under this subsection (r)
10must comply with the requirements of Section 6-29 of this Act.
11    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
12Section 3-12, the State Commission may receive, respond to, and
13investigate any complaint and impose any of the remedies
14specified in paragraph (1) of subsection (a) of Section 3-12.
15    As used in this subsection, "third-party provider" means
16any entity that provides fulfillment house services, including
17warehousing, packaging, distribution, order processing, or
18shipment of wine, but not the sale of wine, on behalf of a
19licensed winery shipper.
20    (s) A craft distiller tasting permit license shall allow an
21Illinois licensed craft distiller to transfer a portion of its
22alcoholic liquor inventory from its craft distiller licensed
23premises to the premises specified in the license hereby
24created and to conduct a sampling, only in the premises
25specified in the license hereby created, of the transferred
26alcoholic liquor in accordance with subsection (c) of Section

 

 

SB1831 Enrolled- 28 -LRB101 09851 RPS 54953 b

16-31 of this Act. The transferred alcoholic liquor may not be
2sold or resold in any form. An applicant for the craft
3distiller tasting permit license must also submit with the
4application proof satisfactory to the State Commission that the
5applicant will provide dram shop liability insurance to the
6maximum limits and have local authority approval.
7    A brewer warehouse permit may be issued to the holder of a
8class 1 brewer license or a class 2 brewer license. If the
9holder of the permit is a class 1 brewer licensee, the brewer
10warehouse permit shall allow the holder to store or warehouse
11up to 930,000 gallons of tax-determined beer manufactured by
12the holder of the permit at the premises specified on the
13permit. If the holder of the permit is a class 2 brewer
14licensee, the brewer warehouse permit shall allow the holder to
15store or warehouse up to 3,720,000 gallons of tax-determined
16beer manufactured by the holder of the permit at the premises
17specified on the permit. Sales to non-licensees are prohibited
18at the premises specified in the brewer warehouse permit.
19(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
2099-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
211-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
22eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
23revised 10-2-18.)
 
24    (235 ILCS 5/6-5.5 new)
25    Sec. 6-5.5. Consignment sales prohibited; retailer

 

 

SB1831 Enrolled- 29 -LRB101 09851 RPS 54953 b

1returns.
2    (a) In this Section, "retailer" means a retailer, special
3event retailer, special use permit licensee, caterer retailer,
4or brew pub.
5    (b) It is unlawful for a manufacturer with
6self-distribution privileges, importing distributor, or
7distributor to sell, offer for sale, or contract to sell to any
8retailer, or for any such retailer to purchase, offer to
9purchase, or contract to purchase any products:
10        (1) on consignment or conditional sale, pursuant to
11    which the retailer has no obligation to pay for the product
12    until sold;
13        (2) with the privilege of return unless expressly
14    authorized in this Act;
15        (3) on any basis other than a bona fide sale; or
16        (4) if any part of the sale involves, directly or
17    indirectly, the acquisition by the retailer of other
18    products from a manufacturer with self-distribution
19    privileges, importing distributor, or distributor, or an
20    agreement to acquire other products from the manufacturer
21    with self-distribution privileges, importing distributor,
22    or distributor.
23    (c) Transactions involving the bona fide return of products
24for ordinary and usual commercial reasons arising after the
25product has been sold are not prohibited.
26    (d) Unless there is a bona fide business reason for

 

 

SB1831 Enrolled- 30 -LRB101 09851 RPS 54953 b

1replacement of an alcoholic liquor product when delivered, the
2alcoholic liquor product may not be replaced free of charge to
3a retailer. Replacement of an alcoholic liquor product damaged
4while in a retailer's possession constitutes the providing of
5something of value and is a violation of Sections 6-4, 6-5, and
66-6 of this Act. A manufacturer with self-distribution
7privileges, importing distributor, or distributor is not
8required to accept the return of products for the reasons
9stated in items (1) through (7) of subsection (f).
10        (1) A manufacturer with self-distribution privileges,
11    importing distributor, or distributor may not accept the
12    return of alcoholic liquor products as breakage if the
13    product was damaged after delivery and while in the
14    possession of the retailer. The manufacturer with
15    self-distribution privileges, importing distributor, or
16    distributor may replace damaged cartons, packaging, or
17    carrying containers of alcoholic liquor at any time.
18        (2) Alcoholic liquor products or other compensation
19    shall not be furnished to a retailer for product breakage
20    that occurs as a result of handling by the retailer or its
21    agents, employees, or customers.
22        (3) If an alcoholic liquor product has been damaged
23    prior to or at the time of actual delivery, the product may
24    only be exchanged for an equal quantity of identical
25    product or returned for credit. If an identical product is
26    unavailable, a similar type of product, including a

 

 

SB1831 Enrolled- 31 -LRB101 09851 RPS 54953 b

1    similarly priced product, may be exchanged.
2        (4) If an alcoholic liquor product has been damaged
3    prior to or at the time of actual delivery, the product may
4    be exchanged no later than 15 days after delivery under the
5    following conditions:
6            (A) If the pre-delivery damage is visible at the
7        time of delivery, the retailer must identify the
8        damaged product immediately.
9            (B) If the damage is latent and not visible at the
10        time of delivery, the retailer must notify the
11        manufacturer with self-distribution privileges,
12        importing distributor, or distributor of the
13        pre-delivery damage within 15 days after delivery, or
14        the date of invoice, whichever is later.
15    (e) It is unlawful to sell, offer to sell, or contract to
16sell alcoholic liquor products with the privilege of return for
17any reason, other than those considered to be ordinary and
18usual commercial reasons, arising after the product has been
19sold. A manufacturer with self-distribution privileges,
20importing distributor, or distributor is under no obligation to
21accept a return or make an exchange for any product. A
22manufacturer with self-distribution privileges, importing
23distributor, or distributor that elects to make an authorized
24exchange of a product or return of a product for cash or credit
25does so at its sole discretion and must maintain proper books
26and records of the transaction in accordance with 11 Ill. Adm.

 

 

SB1831 Enrolled- 32 -LRB101 09851 RPS 54953 b

1Code 100.130.
2    (f) Ordinary and usual commercial reasons for the return of
3alcoholic liquor products are limited to the following:
4        (1) Defective products. Products that are unmarketable
5    because of product deterioration, leaking containers,
6    damaged labels, or missing or mutilated tamper evident
7    closures may be exchanged for an equal quantity of
8    identical or similar products, including similarly priced
9    products, or credit against outstanding indebtedness.
10        (2) Error in products delivered. Any discrepancy
11    between products ordered and products delivered may be
12    corrected, within 15 days after the date of delivery or
13    date of invoice, whichever is later, by exchange of the
14    products delivered for those that were ordered or by a
15    return for credit against outstanding indebtedness.
16        (3) Products that may no longer be lawfully sold.
17    Products that may no longer be lawfully sold may be
18    returned for credit against outstanding indebtedness. This
19    includes situations in which, due to a change in regulation
20    or administrative procedure over which a retailer has no
21    control, a particular size or brand is no longer permitted
22    to be sold.
23        (4) Termination of business. Products on hand at the
24    time a retailer terminates operations may be returned for
25    cash or credit against outstanding indebtedness. This does
26    not include a temporary seasonal shutdown.

 

 

SB1831 Enrolled- 33 -LRB101 09851 RPS 54953 b

1        (5) Change in products. A retailer's inventory of a
2    product that has been changed in formula, proof, label, or
3    container may be exchanged for equal quantities of the new
4    version of that product.
5        (6) Discontinued products. If a manufacturer,
6    non-resident dealer, foreign importer, or importing
7    distributor discontinues the production or importation of
8    a product, a retailer may return its inventory of that
9    product for cash or credit against outstanding
10    indebtedness.
11        (7) Seasonal dealers. Manufacturers with
12    self-distribution privileges, importing distributors, or
13    distributors may accept the return of product from
14    retailers who are only open a portion of the year if the
15    products are likely to spoil during the off-season. These
16    returns shall be for cash or credit against outstanding
17    indebtedness.
18    (g) Without limitation, the following are not considered
19ordinary and commercial reasons to justify a return of an
20alcoholic liquor product:
21        (1) Overstocked and slow-moving alcoholic liquor
22    products. The return or exchange of a product because it is
23    overstocked or slow moving does not constitute a return for
24    ordinary and usual commercial reasons.
25        (2) Seasonal alcoholic liquor products. The return for
26    cash or credit or exchange of wine or spirits for which

 

 

SB1831 Enrolled- 34 -LRB101 09851 RPS 54953 b

1    there is only a limited or seasonal demand, such as holiday
2    decanters and certain distinctive bottles, does not
3    constitute a return for ordinary and usual commercial
4    reasons. Nothing in this item (2) prohibits the exchange of
5    seasonal beer products for similarly priced beer products.
6    (h) Nothing in this Section prohibits a manufacturer with
7self-distribution privileges, importing distributor, or
8distributor from accepting the return of beer from a retailer
9if the beer is near or beyond its freshness date, code date,
10pull date, or other similar date marking the deterioration or
11freshness of the beer if:
12        (1) the brewer has policies and procedures in place
13    that specify the date the retailer must pull the product;
14        (2) the brewer's freshness return or exchange policies
15    and procedures are readily verifiable and consistently
16    followed by the brewer; and
17        (3) the container has identifying markings that
18    correspond with this date.
19    Returns under this subsection may be accepted in return for
20credit against indebtedness or equal amounts of the same or
21similar beer, including a similarly priced product.
22    For purposes of this Section, beer is near code on any date
23on or before the freshness or code date not to exceed 30 days
24prior to the freshness or code date. If near-code beer is
25returned, a manufacturer with self-distribution privileges,
26importing distributor, or distributor may sell near-code beer

 

 

SB1831 Enrolled- 35 -LRB101 09851 RPS 54953 b

1to another retailer who may reasonably sell the beer on or
2before the expiration of the freshness or code date. No beer
3shall be returned as near-code prior to 30 days of the
4freshness or code date.
5    It is a violation of this Section for a retailer to hold
6beer for the purpose of returning beer as out of code.
 
7    (235 ILCS 5/6-6)  (from Ch. 43, par. 123)
8    Sec. 6-6. Except as otherwise provided in this Act no
9manufacturer or distributor or importing distributor shall,
10directly or indirectly, sell, supply, furnish, give or pay for,
11or loan or lease, any furnishing, fixture or equipment on the
12premises of a place of business of another licensee authorized
13under this Act to sell alcoholic liquor at retail, either for
14consumption on or off the premises, nor shall he or she,
15directly or indirectly, pay for any such license, or advance,
16furnish, lend or give money for payment of such license, or
17purchase or become the owner of any note, mortgage, or other
18evidence of indebtedness of such licensee or any form of
19security therefor, nor shall such manufacturer, or
20distributor, or importing distributor, directly or indirectly,
21be interested in the ownership, conduct or operation of the
22business of any licensee authorized to sell alcoholic liquor at
23retail, nor shall any manufacturer, or distributor, or
24importing distributor be interested directly or indirectly or
25as owner or part owner of said premises or as lessee or lessor

 

 

SB1831 Enrolled- 36 -LRB101 09851 RPS 54953 b

1thereof, in any premises upon which alcoholic liquor is sold at
2retail.
3    No manufacturer or distributor or importing distributor
4shall, directly or indirectly or through a subsidiary or
5affiliate, or by any officer, director or firm of such
6manufacturer, distributor or importing distributor, furnish,
7give, lend or rent, install, repair or maintain, to or for any
8retail licensee in this State, any signs or inside advertising
9materials except as provided in this Section and Section 6-5.
10With respect to retail licensees, other than any government
11owned or operated auditorium, exhibition hall, recreation
12facility or other similar facility holding a retailer's license
13as described in Section 6-5, a manufacturer, distributor, or
14importing distributor may furnish, give, lend or rent and
15erect, install, repair and maintain to or for any retail
16licensee, for use at any one time in or about or in connection
17with a retail establishment on which the products of the
18manufacturer, distributor or importing distributor are sold,
19the following signs and inside advertising materials as
20authorized in subparts (i), (ii), (iii), and (iv):
21        (i) Permanent outside signs shall cost not more than
22    $3,000 per brand manufacturer, exclusive of erection,
23    installation, repair and maintenance costs, and permit
24    fees and shall bear only the manufacturer's name, brand
25    name, trade name, slogans, markings, trademark, or other
26    symbols commonly associated with and generally used in

 

 

SB1831 Enrolled- 37 -LRB101 09851 RPS 54953 b

1    identifying the product including, but not limited to,
2    "cold beer", "on tap", "carry out", and "packaged liquor".
3        (ii) Temporary outside signs shall include, but not be
4    limited to, banners, flags, pennants, streamers, and other
5    items of a temporary and non-permanent nature, and shall
6    cost not more than $1,000 per manufacturer. Each temporary
7    outside sign must include the manufacturer's name, brand
8    name, trade name, slogans, markings, trademark, or other
9    symbol commonly associated with and generally used in
10    identifying the product. Temporary outside signs may also
11    include, for example, the product, price, packaging, date
12    or dates of a promotion and an announcement of a retail
13    licensee's specific sponsored event, if the temporary
14    outside sign is intended to promote a product, and provided
15    that the announcement of the retail licensee's event and
16    the product promotion are held simultaneously. However,
17    temporary outside signs may not include names, slogans,
18    markings, or logos that relate to the retailer. Nothing in
19    this subpart (ii) shall prohibit a distributor or importing
20    distributor from bearing the cost of creating or printing a
21    temporary outside sign for the retail licensee's specific
22    sponsored event or from bearing the cost of creating or
23    printing a temporary sign for a retail licensee containing,
24    for example, community goodwill expressions, regional
25    sporting event announcements, or seasonal messages,
26    provided that the primary purpose of the temporary outside

 

 

SB1831 Enrolled- 38 -LRB101 09851 RPS 54953 b

1    sign is to highlight, promote, or advertise the product. In
2    addition, temporary outside signs provided by the
3    manufacturer to the distributor or importing distributor
4    may also include, for example, subject to the limitations
5    of this Section, preprinted community goodwill
6    expressions, sporting event announcements, seasonal
7    messages, and manufacturer promotional announcements.
8    However, a distributor or importing distributor shall not
9    bear the cost of such manufacturer preprinted signs.
10        (iii) Permanent inside signs, whether visible from the
11    outside or the inside of the premises, include, but are not
12    limited to: alcohol lists and menus that may include names,
13    slogans, markings, or logos that relate to the retailer;
14    neons; illuminated signs; clocks; table lamps; mirrors;
15    tap handles; decalcomanias; window painting; and window
16    trim. All neons, illuminated signs, clocks, table lamps,
17    mirrors, and tap handles are the property of the
18    manufacturer and shall be returned to the manufacturer or
19    its agent upon request. All permanent inside signs in place
20    and in use at any one time shall cost in the aggregate not
21    more than $6,000 per manufacturer. A permanent inside sign
22    must include the manufacturer's name, brand name, trade
23    name, slogans, markings, trademark, or other symbol
24    commonly associated with and generally used in identifying
25    the product. However, permanent inside signs may not
26    include names, slogans, markings, or logos that relate to

 

 

SB1831 Enrolled- 39 -LRB101 09851 RPS 54953 b

1    the retailer. For the purpose of this subpart (iii), all
2    permanent inside signs may be displayed in an adjacent
3    courtyard or patio commonly referred to as a "beer garden"
4    that is a part of the retailer's licensed premises.
5        (iv) Temporary inside signs shall include, but are not
6    limited to, lighted chalk boards, acrylic table tent
7    beverage or hors d'oeuvre list holders, banners, flags,
8    pennants, streamers, and inside advertising materials such
9    as posters, placards, bowling sheets, table tents, inserts
10    for acrylic table tent beverage or hors d'oeuvre list
11    holders, sports schedules, or similar printed or
12    illustrated materials and product displays, such as
13    display racks, bins, barrels, or similar items, the primary
14    function of which is to temporarily hold and display
15    alcoholic beverages; however, such items, for example, as
16    coasters, trays, napkins, glassware and cups shall not be
17    deemed to be inside signs or advertising materials and may
18    only be sold to retailers at fair market value, which shall
19    be no less than the cost of the item to the manufacturer,
20    distributor, or importing distributor. All temporary
21    inside signs and inside advertising materials in place and
22    in use at any one time shall cost in the aggregate not more
23    than $1,000 per manufacturer. Nothing in this subpart (iv)
24    prohibits a distributor or importing distributor from
25    paying the cost of printing or creating any temporary
26    inside banner or inserts for acrylic table tent beverage or

 

 

SB1831 Enrolled- 40 -LRB101 09851 RPS 54953 b

1    hors d'oeuvre list holders for a retail licensee, provided
2    that the primary purpose for the banner or insert is to
3    highlight, promote, or advertise the product. For the
4    purpose of this subpart (iv), all temporary inside signs
5    and inside advertising materials may be displayed in an
6    adjacent courtyard or patio commonly referred to as a "beer
7    garden" that is a part of the retailer's licensed premises.
8    The restrictions contained in this Section 6-6 do not apply
9to signs, or promotional or advertising materials furnished by
10manufacturers, distributors or importing distributors to a
11government owned or operated facility holding a retailer's
12license as described in Section 6-5.
13    No distributor or importing distributor shall directly or
14indirectly or through a subsidiary or affiliate, or by any
15officer, director or firm of such manufacturer, distributor or
16importing distributor, furnish, give, lend or rent, install,
17repair or maintain, to or for any retail licensee in this
18State, any signs or inside advertising materials described in
19subparts (i), (ii), (iii), or (iv) of this Section except as
20the agent for or on behalf of a manufacturer, provided that the
21total cost of any signs and inside advertising materials
22including but not limited to labor, erection, installation and
23permit fees shall be paid by the manufacturer whose product or
24products said signs and inside advertising materials advertise
25and except as follows:
26    A distributor or importing distributor may purchase from or

 

 

SB1831 Enrolled- 41 -LRB101 09851 RPS 54953 b

1enter into a written agreement with a manufacturer or a
2manufacturer's designated supplier and such manufacturer or
3the manufacturer's designated supplier may sell or enter into
4an agreement to sell to a distributor or importing distributor
5permitted signs and advertising materials described in
6subparts (ii), (iii), or (iv) of this Section for the purpose
7of furnishing, giving, lending, renting, installing,
8repairing, or maintaining such signs or advertising materials
9to or for any retail licensee in this State. Any purchase by a
10distributor or importing distributor from a manufacturer or a
11manufacturer's designated supplier shall be voluntary and the
12manufacturer may not require the distributor or the importing
13distributor to purchase signs or advertising materials from the
14manufacturer or the manufacturer's designated supplier.
15    A distributor or importing distributor shall be deemed the
16owner of such signs or advertising materials purchased from a
17manufacturer or a manufacturer's designated supplier.
18    The provisions of Public Act 90-373 concerning signs or
19advertising materials delivered by a manufacturer to a
20distributor or importing distributor shall apply only to signs
21or advertising materials delivered on or after August 14, 1997.
22    A manufacturer, distributor, or importing distributor may
23furnish free social media advertising to a retail licensee if
24the social media advertisement does not contain the retail
25price of any alcoholic liquor and the social media
26advertisement complies with any applicable rules or

 

 

SB1831 Enrolled- 42 -LRB101 09851 RPS 54953 b

1regulations issued by the Alcohol and Tobacco Tax and Trade
2Bureau of the United States Department of the Treasury. A
3manufacturer, distributor, or importing distributor may list
4the names of one or more unaffiliated retailers in the
5advertisement of alcoholic liquor through social media.
6Nothing in this Section shall prohibit a retailer from
7communicating with a manufacturer, distributor, or importing
8distributor on social media or sharing media on the social
9media of a manufacturer, distributor, or importing
10distributor. A retailer may request free social media
11advertising from a manufacturer, distributor, or importing
12distributor. Nothing in this Section shall prohibit a
13manufacturer, distributor, or importing distributor from
14sharing, reposting, or otherwise forwarding a social media post
15by a retail licensee, so long as the sharing, reposting, or
16forwarding of the social media post does not contain the retail
17price of any alcoholic liquor. No manufacturer, distributor, or
18importing distributor shall pay or reimburse a retailer,
19directly or indirectly, for any social media advertising
20services, except as specifically permitted in this Act. No
21retailer shall accept any payment or reimbursement, directly or
22indirectly, for any social media advertising services offered
23by a manufacturer, distributor, or importing distributor,
24except as specifically permitted in this Act. For the purposes
25of this Section, "social media" means a service, platform, or
26site where users communicate with one another and share media,

 

 

SB1831 Enrolled- 43 -LRB101 09851 RPS 54953 b

1such as pictures, videos, music, and blogs, with other users
2free of charge.
3    No person engaged in the business of manufacturing,
4importing or distributing alcoholic liquors shall, directly or
5indirectly, pay for, or advance, furnish, or lend money for the
6payment of any license for another. Any licensee who shall
7permit or assent, or be a party in any way to any violation or
8infringement of the provisions of this Section shall be deemed
9guilty of a violation of this Act, and any money loaned
10contrary to a provision of this Act shall not be recovered
11back, or any note, mortgage or other evidence of indebtedness,
12or security, or any lease or contract obtained or made contrary
13to this Act shall be unenforceable and void.
14    This Section shall not apply to airplane licensees
15exercising powers provided in paragraph (i) of Section 5-1 of
16this Act.
17(Source: P.A. 99-448, eff. 8-24-15; 100-885, eff. 8-14-18.)
 
18    (235 ILCS 5/6-6.5)
19    Sec. 6-6.5. Sanitation. A manufacturer, distributor, or
20importing distributor may sell coil cleaning services to a
21retail licensee at fair market cost.
22    A manufacturer, distributor, or importing distributor may
23sell dispensing accessories to retail licensees at a price not
24less than the cost to the manufacturer, distributor, or
25importing distributor who initially purchased them. Dispensing

 

 

SB1831 Enrolled- 44 -LRB101 09851 RPS 54953 b

1accessories include, but are not limited to, items such as
2standards, faucets, cold plates, rods, vents, taps, tap
3standards, hoses, washers, couplings, gas gauges, vent
4tongues, shanks, and check valves. A manufacturer,
5distributor, or importing distributor may service, balance, or
6inspect draft beer, wine, or distilled spirits systems at
7regular intervals and may provide labor to replace or install
8dispensing accessories.
9    Coil cleaning supplies consisting of detergents, cleaning
10chemicals, brushes, or similar type cleaning devices may be
11sold at a price not less than the cost to the manufacturer,
12distributor, or importing distributor.
13(Source: P.A. 90-432, eff. 1-1-98.)
 
14    (235 ILCS 5/6-6.6 new)
15    Sec. 6-6.6. Giving, selling, and leasing dispensing
16equipment. Notwithstanding any provision of this Act to the
17contrary, a manufacturer, distributor, or importing
18distributor may:
19        (1) give dispensing equipment free of charge to a
20    retailer, special use permit licensee, or caterer retailer
21    one time per year for a one-day period. A manufacturer,
22    distributor, or importing distributor shall not supply a
23    retailer, special use permit licensee, or caterer retailer
24    with free beer, wine, spirits, or any other item of value
25    for the same one-day period the dispensing equipment is

 

 

SB1831 Enrolled- 45 -LRB101 09851 RPS 54953 b

1    given, except as otherwise provided in this Act or the
2    Illinois Administrative Code;
3        (2) give dispensing equipment free of charge to a
4    special event retailer only for the duration of the
5    licensed special event. A manufacturer, distributor, or
6    importing distributor shall not supply a special event
7    retailer with free beer, wine, or distilled spirits for the
8    event the dispensing equipment is given, except as
9    otherwise provided in this Act or the Illinois
10    Administrative Code; or
11        (3) sell dispensing equipment to a retailer, special
12    event retailer, special use permit licensee, or caterer
13    retailer for a price that is not less than the cost to the
14    manufacturer, distributor, or importing distributor. For
15    purposes of this paragraph (3), the cost of dispensing
16    equipment is the amount that the manufacturer,
17    distributor, or importing distributor paid for the
18    dispensing equipment. If the manufacturer, distributor, or
19    importing distributor did not pay for the dispensing
20    equipment but was given the equipment, the cost of the
21    dispensing equipment is equal to (i) the amount another
22    manufacturer, distributor, or importing distributor paid
23    for the dispensing equipment, (ii) the cost of
24    manufacturing or producing the dispensing equipment, or
25    (iii) the fair market value of the dispensing equipment.
26    A manufacturer, distributor, or importing distributor may

 

 

SB1831 Enrolled- 46 -LRB101 09851 RPS 54953 b

1also enter into a written lease for the fair market value of
2the dispensing equipment to retailers, special event
3retailers, special use permit licensees, or caterer retailers.
4The manufacturer, distributor, or importing distributor shall
5invoice and collect the sale price or payment for the entire
6lease period from the retailer, special event retailer, special
7use permit licensee, or caterer retailer within 30 days of the
8date of the invoice or from the date the lease is executed. The
9term of any lease for dispensing equipment shall not exceed 180
10days in the aggregate in one calendar year, and no lease shall
11be renewed automatically. There shall be a lapse of 90
12consecutive days before the beginning of a new lease term.
13    At the direction of the manufacturer, distributor, or
14importing distributor, the retailer, special event retailer,
15special use permit licensee, or caterer retailer shall return
16the equipment or the manufacturer, distributor, or importing
17distributor shall retrieve the dispensing equipment at the
18termination of the lease.
19    In this Section, "dispensing equipment" means any portable
20or temporary unit the primary purpose of which is to pour
21alcoholic liquor or to maintain the alcoholic liquor in a
22consumable state. "Dispensing equipment" includes courtesy
23wagons, beer wagons, beer trailers, ice bins, draft coolers,
24coil boxes, portable bars, and kiosks. "Dispensing equipment"
25does not include permanent tap systems, permanent
26refrigeration systems, or any other built-in or physically

 

 

SB1831 Enrolled- 47 -LRB101 09851 RPS 54953 b

1attached fixture of the retailer, special event retailer,
2special use permit licensee, or caterer retailer.
3    In this Section, "fair market value" for the purposes of
4leasing dispensing equipment means (i) the cost of depreciation
5of the dispensing equipment to the manufacturer, distributor,
6or importing distributor for the same period of the lease or
7(ii) the cost of depreciation the manufacturer, distributor, or
8importing distributor would have incurred based upon the market
9value of the dispensing equipment if the manufacturer,
10distributor, or importing distributor did not pay for the
11dispensing equipment or if the dispensing equipment is fully
12depreciated.
 
13    (235 ILCS 5/8-1)
14    Sec. 8-1. A tax is imposed upon the privilege of engaging
15in business as a manufacturer or as an importing distributor of
16alcoholic liquor other than beer at the rate of $0.185 per
17gallon until September 1, 2009 and $0.231 per gallon beginning
18September 1, 2009 for cider containing not less than 0.5%
19alcohol by volume nor more than 7% alcohol by volume, $0.73 per
20gallon until September 1, 2009 and $1.39 per gallon beginning
21September 1, 2009 for wine other than cider containing less
22than 7% alcohol by volume, and $4.50 per gallon until September
231, 2009 and $8.55 per gallon beginning September 1, 2009 on
24alcohol and spirits manufactured and sold or used by such
25manufacturer, or as agent for any other person, or sold or used

 

 

SB1831 Enrolled- 48 -LRB101 09851 RPS 54953 b

1by such importing distributor, or as agent for any other
2person. A tax is imposed upon the privilege of engaging in
3business as a manufacturer of beer or as an importing
4distributor of beer at the rate of $0.185 per gallon until
5September 1, 2009 and $0.231 per gallon beginning September 1,
62009 on all beer, regardless of alcohol by volume, manufactured
7and sold or used by such manufacturer, or as agent for any
8other person, or sold or used by such importing distributor, or
9as agent for any other person. Any brewer manufacturing beer in
10this State shall be entitled to and given a credit or refund of
1175% of the tax imposed on each gallon of beer up to 4.9 million
12gallons per year in any given calendar year for tax paid or
13payable on beer produced and sold in the State of Illinois.
14    For purposes of this Section, "beer" means beer, ale,
15porter, stout, and other similar fermented beverages of any
16name or description containing one-half of one percent or more
17of alcohol by volume, brewed or produced from malt, wholly or
18in part, or from any substitute for malt.
19    For the purpose of this Section, "cider" means any
20alcoholic beverage obtained by the alcohol fermentation of the
21juice of apples or pears including, but not limited to,
22flavored, sparkling, or carbonated cider.
23    The credit or refund created by this Act shall apply to all
24beer taxes in the calendar years 1982 through 1986.
25    The increases made by this amendatory Act of the 91st
26General Assembly in the rates of taxes imposed under this

 

 

SB1831 Enrolled- 49 -LRB101 09851 RPS 54953 b

1Section shall apply beginning on July 1, 1999.
2    A tax at the rate of 1¢ per gallon on beer and 48¢ per
3gallon on alcohol and spirits is also imposed upon the
4privilege of engaging in business as a retailer or as a
5distributor who is not also an importing distributor with
6respect to all beer and all alcohol and spirits owned or
7possessed by such retailer or distributor when this amendatory
8Act of 1969 becomes effective, and with respect to which the
9additional tax imposed by this amendatory Act upon
10manufacturers and importing distributors does not apply.
11Retailers and distributors who are subject to the additional
12tax imposed by this paragraph of this Section shall be required
13to inventory such alcoholic liquor and to pay this additional
14tax in a manner prescribed by the Department.
15    The provisions of this Section shall be construed to apply
16to any importing distributor engaging in business in this
17State, whether licensed or not.
18    However, such tax is not imposed upon any such business as
19to any alcoholic liquor shipped outside Illinois by an Illinois
20licensed manufacturer or importing distributor, nor as to any
21alcoholic liquor delivered in Illinois by an Illinois licensed
22manufacturer or importing distributor to a purchaser for
23immediate transportation by the purchaser to another state into
24which the purchaser has a legal right, under the laws of such
25state, to import such alcoholic liquor, nor as to any alcoholic
26liquor other than beer sold by one Illinois licensed

 

 

SB1831 Enrolled- 50 -LRB101 09851 RPS 54953 b

1manufacturer or importing distributor to another Illinois
2licensed manufacturer or importing distributor to the extent to
3which the sale of alcoholic liquor other than beer by one
4Illinois licensed manufacturer or importing distributor to
5another Illinois licensed manufacturer or importing
6distributor is authorized by the licensing provisions of this
7Act, nor to alcoholic liquor whether manufactured in or
8imported into this State when sold to a "non-beverage user"
9licensed by the State for use in the manufacture of any of the
10following when they are unfit for beverage purposes:
11    Patent and proprietary medicines and medicinal,
12antiseptic, culinary and toilet preparations;
13    Flavoring extracts and syrups and food products;
14    Scientific, industrial and chemical products, excepting
15denatured alcohol;
16    Or for scientific, chemical, experimental or mechanical
17purposes;
18    Nor is the tax imposed upon the privilege of engaging in
19any business in interstate commerce or otherwise, which
20business may not, under the Constitution and Statutes of the
21United States, be made the subject of taxation by this State.
22    The tax herein imposed shall be in addition to all other
23occupation or privilege taxes imposed by the State of Illinois
24or political subdivision thereof.
25    If any alcoholic liquor manufactured in or imported into
26this State is sold to a licensed manufacturer or importing

 

 

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1distributor by a licensed manufacturer or importing
2distributor to be used solely as an ingredient in the
3manufacture of any beverage for human consumption, the tax
4imposed upon such purchasing manufacturer or importing
5distributor shall be reduced by the amount of the taxes which
6have been paid by the selling manufacturer or importing
7distributor under this Act as to such alcoholic liquor so used
8to the Department of Revenue.
9    If any person received any alcoholic liquors from a
10manufacturer or importing distributor, with respect to which
11alcoholic liquors no tax is imposed under this Article, and
12such alcoholic liquor shall thereafter be disposed of in such
13manner or under such circumstances as may cause the same to
14become the base for the tax imposed by this Article, such
15person shall make the same reports and returns, pay the same
16taxes and be subject to all other provisions of this Article
17relating to manufacturers and importing distributors.
18    Nothing in this Article shall be construed to require the
19payment to the Department of the taxes imposed by this Article
20more than once with respect to any quantity of alcoholic liquor
21sold or used within this State.
22    No tax is imposed by this Act on sales of alcoholic liquor
23by Illinois licensed foreign importers to Illinois licensed
24importing distributors.
25    All of the proceeds of the additional tax imposed by Public
26Act 96-34 shall be deposited by the Department into the Capital

 

 

SB1831 Enrolled- 52 -LRB101 09851 RPS 54953 b

1Projects Fund. The remainder of the tax imposed by this Act
2shall be deposited by the Department into the General Revenue
3Fund.
4    A manufacturer of beer that imports or transfers beer into
5this State must comply with the provisions of this Section with
6regard to the beer imported into this State.
7    The provisions of this Section 8-1 are severable under
8Section 1.31 of the Statute on Statutes.
9(Source: P.A. 100-885, eff. 8-14-18.)
 
10    (235 ILCS 5/8-5)  (from Ch. 43, par. 163a)
11    (Text of Section before amendment by P.A. 100-1050)
12    Sec. 8-5. As soon as practicable after any return is filed,
13the Department shall examine such return and shall correct such
14return according to its best judgment and information, which
15return so corrected by the Department shall be prima facie
16correct and shall be prima facie evidence of the correctness of
17the amount of tax due, as shown therein. Instead of requiring
18the licensee to file an amended return, the Department may
19simply notify the licensee of the correction or corrections it
20has made. Proof of such correction by the Department, or of the
21determination of the amount of tax due as provided in Sections
228-4 and 8-10, may be made at any hearing before the Department
23or in any legal proceeding by a reproduced copy of the
24Department's record relating thereto in the name of the
25Department under the certificate of the Director of Revenue.

 

 

SB1831 Enrolled- 53 -LRB101 09851 RPS 54953 b

1Such reproduced copy shall, without further proof, be admitted
2into evidence before the Department or in any legal proceeding
3and shall be prima facie proof of the correctness of the amount
4of tax due, as shown therein. If the return so corrected by the
5Department discloses the sale or use, by a licensed
6manufacturer or importing distributor, of alcoholic liquors as
7to which the tax provided for in this Article should have been
8paid, but has not been paid, in excess of the alcoholic liquors
9reported as being taxable by the licensee, and as to which the
10proper tax was paid the Department shall notify the licensee
11that it shall issue the taxpayer a notice of tax liability for
12the amount of tax claimed by the Department to be due, together
13with penalties at the rates prescribed by Sections 3-3, 3-5 and
143-6 of the Uniform Penalty and Interest Act, which amount of
15tax shall be equivalent to the amount of tax which, at the
16prescribed rate per gallon, should have been paid with respect
17to the alcoholic liquors disposed of in excess of those
18reported as being taxable. No earlier than 90 days after the
19due date of the return, the Department may compare filed
20returns, or any amendments thereto, against reports of sales of
21alcoholic liquor submitted to the Department by other
22manufacturers and distributors. If a return or amended return
23is corrected by the Department because the return or amended
24return failed to disclose the purchase of alcoholic liquor from
25manufacturers or distributors on which the tax provided for in
26this Article should have been paid, but has not been paid, the

 

 

SB1831 Enrolled- 54 -LRB101 09851 RPS 54953 b

1Department shall issue the taxpayer a notice of tax liability
2for the amount of tax claimed by the Department to be due,
3together with penalties at the rates prescribed by Sections
43-3, 3-5, and 3-6 of the Uniform Penalty and Interest Act. In a
5case where no return has been filed, the Department shall
6determine the amount of tax due according to its best judgment
7and information and shall issue the taxpayer a notice of tax
8liability for the amount of tax claimed by the Department to be
9due as herein provided together with penalties at the rates
10prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform Penalty
11and Interest Act. If, in administering the provisions of this
12Act, a comparison of a licensee's return or returns with the
13books, records and physical inventories of such licensee
14discloses a deficiency which cannot be allocated by the
15Department to a particular month or months, the Department
16shall issue the taxpayer a notice of tax liability for the
17amount of tax claimed by the Department to be due for a given
18period, but without any obligation upon the Department to
19allocate such deficiency to any particular month or months,
20together with penalties at the rates prescribed by Sections
213-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, which
22amount of tax shall be equivalent to the amount of tax which,
23at the prescribed rate per gallon, should have been paid with
24respect to the alcoholic liquors disposed of in excess of those
25reported being taxable, with the tax thereon having been paid
26under which circumstances the aforesaid notice of tax liability

 

 

SB1831 Enrolled- 55 -LRB101 09851 RPS 54953 b

1shall be prima facie correct and shall be prima facie evidence
2of the correctness of the amount of tax due as shown therein;
3and proof of such correctness may be made in accordance with,
4and the admissibility of a reproduced copy of such notice of
5the Department's notice of tax liability shall be governed by,
6all the provisions of this Act applicable to corrected returns.
7    If the licensee dies or becomes a person under legal
8disability at any time before the Department issues its notice
9of tax liability, such notice shall be issued to the
10administrator, executor or other legal representative, as
11such, of the deceased or licensee who is under legal
12disability.
13    If such licensee or legal representative, within 60 days
14after such notice of tax liability, files a protest to such
15notice of tax liability and requests a hearing thereon, the
16Department shall give at least 7 days' notice to such licensee
17or legal representative, as the case may be, of the time and
18place fixed for such hearing and shall hold a hearing in
19conformity with the provisions of this Act, and pursuant
20thereto shall issue a final assessment to such licensee or
21legal representative for the amount found to be due as a result
22of such hearing.
23    If a protest to the notice of tax liability and a request
24for a hearing thereon is not filed within 60 days after such
25notice of tax liability, such notice of tax liability shall
26become final without the necessity of a final assessment being

 

 

SB1831 Enrolled- 56 -LRB101 09851 RPS 54953 b

1issued and shall be deemed to be a final assessment.
2    In case of failure to pay the tax, or any portion thereof,
3or any penalty provided for herein, when due, the Department
4may recover the amount of such tax, or portion thereof, or
5penalty in a civil action; or if the licensee dies or becomes a
6person under legal disability, by filing a claim therefor
7against his or her estate; provided that no such claim shall be
8filed against the estate of any deceased or of the licensee who
9is under legal disability for any tax or penalty or portion
10thereof except in the manner prescribed and within the time
11limited by the Probate Act of 1975, as amended.
12    The collection of any such tax and penalty, or either, by
13any means provided for herein, shall not be a bar to any
14prosecution under this Act.
15    In addition to any other penalty provided for in this
16Article, all provisions of the Uniform Penalty and Interest Act
17that are not inconsistent with this Act apply any licensee who
18fails to pay any tax within the time required by this Article
19shall be subject to assessment of penalties and interest at
20rates set forth in the Uniform Penalty and Interest Act.
21(Source: P.A. 87-205; 87-879.)
 
22    (Text of Section after amendment by P.A. 100-1050)
23    Sec. 8-5. As soon as practicable after any return is filed
24but not before 90 days after the return is filed, or any
25amendments to that return, whichever is later, the Department

 

 

SB1831 Enrolled- 57 -LRB101 09851 RPS 54953 b

1shall examine such return or amended return and shall correct
2such return according to its best judgment and information,
3which return so corrected by the Department shall be prima
4facie correct and shall be prima facie evidence of the
5correctness of the amount of tax due, as shown therein. Instead
6of requiring the licensee to file an amended return, the
7Department may simply notify the licensee of the correction or
8corrections it has made. Proof of such correction by the
9Department, or of the determination of the amount of tax due as
10provided in Sections 8-4 and 8-10, may be made at any hearing
11before the Department or in any legal proceeding by a
12reproduced copy of the Department's record relating thereto in
13the name of the Department under the certificate of the
14Director of Revenue. Such reproduced copy shall, without
15further proof, be admitted into evidence before the Department
16or in any legal proceeding and shall be prima facie proof of
17the correctness of the amount of tax due, as shown therein. If
18the return so corrected by the Department discloses the sale or
19use, by a licensed manufacturer or importing distributor, of
20alcoholic liquors as to which the tax provided for in this
21Article should have been paid, but has not been paid, in excess
22of the alcoholic liquors reported as being taxable by the
23licensee, and as to which the proper tax was paid the
24Department shall notify the licensee that it shall issue the
25taxpayer a notice of tax liability for the amount of tax
26claimed by the Department to be due, together with penalties at

 

 

SB1831 Enrolled- 58 -LRB101 09851 RPS 54953 b

1the rates prescribed by Sections 3-3, 3-5 and 3-6 of the
2Uniform Penalty and Interest Act, which amount of tax shall be
3equivalent to the amount of tax which, at the prescribed rate
4per gallon, should have been paid with respect to the alcoholic
5liquors disposed of in excess of those reported as being
6taxable. No earlier than 90 days after the due date of the
7return, the Department may compare filed returns, or any
8amendments thereto, against reports of sales of alcoholic
9liquor submitted to the Department by other manufacturers and
10distributors. If a return or amended return is corrected by the
11Department because the return or amended return failed to
12disclose the purchase of alcoholic liquor from manufacturers or
13distributors on which the tax provided for in this Article
14should have been paid, but has not been paid, the Department
15shall issue the taxpayer a notice of tax liability for the
16amount of tax claimed by the Department to be due, together
17with penalties at the rates prescribed by Sections 3-3, 3-5,
18and 3-6 of the Uniform Penalty and Interest Act. In a case
19where no return has been filed, the Department shall determine
20the amount of tax due according to its best judgment and
21information and shall issue the taxpayer a notice of tax
22liability for the amount of tax claimed by the Department to be
23due as herein provided together with penalties at the rates
24prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform Penalty
25and Interest Act. If, in administering the provisions of this
26Act, a comparison of a licensee's return or returns with the

 

 

SB1831 Enrolled- 59 -LRB101 09851 RPS 54953 b

1books, records and physical inventories of such licensee
2discloses a deficiency which cannot be allocated by the
3Department to a particular month or months, the Department
4shall issue the taxpayer a notice of tax liability for the
5amount of tax claimed by the Department to be due for a given
6period, but without any obligation upon the Department to
7allocate such deficiency to any particular month or months,
8together with penalties at the rates prescribed by Sections
93-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, which
10amount of tax shall be equivalent to the amount of tax which,
11at the prescribed rate per gallon, should have been paid with
12respect to the alcoholic liquors disposed of in excess of those
13reported being taxable, with the tax thereon having been paid
14under which circumstances the aforesaid notice of tax liability
15shall be prima facie correct and shall be prima facie evidence
16of the correctness of the amount of tax due as shown therein;
17and proof of such correctness may be made in accordance with,
18and the admissibility of a reproduced copy of such notice of
19the Department's notice of tax liability shall be governed by,
20all the provisions of this Act applicable to corrected returns.
21    If the licensee dies or becomes a person under legal
22disability at any time before the Department issues its notice
23of tax liability, such notice shall be issued to the
24administrator, executor or other legal representative, as
25such, of the deceased or licensee who is under legal
26disability.

 

 

SB1831 Enrolled- 60 -LRB101 09851 RPS 54953 b

1    If such licensee or legal representative, within 60 days
2after such notice of tax liability, files a protest to such
3notice of tax liability and requests a hearing thereon, the
4Department shall give at least 7 days' notice to such licensee
5or legal representative, as the case may be, of the time and
6place fixed for such hearing and shall hold a hearing in
7conformity with the provisions of this Act, and pursuant
8thereto shall issue a final assessment to such licensee or
9legal representative for the amount found to be due as a result
10of such hearing.
11    If a protest to the notice of tax liability and a request
12for a hearing thereon is not filed within 60 days after such
13notice of tax liability, such notice of tax liability shall
14become final without the necessity of a final assessment being
15issued and shall be deemed to be a final assessment.
16    In case of failure to pay the tax, or any portion thereof,
17or any penalty provided for herein, when due, the Department
18may recover the amount of such tax, or portion thereof, or
19penalty in a civil action; or if the licensee dies or becomes a
20person under legal disability, by filing a claim therefor
21against his or her estate; provided that no such claim shall be
22filed against the estate of any deceased or of the licensee who
23is under legal disability for any tax or penalty or portion
24thereof except in the manner prescribed and within the time
25limited by the Probate Act of 1975, as amended.
26    The collection of any such tax and penalty, or either, by

 

 

SB1831 Enrolled- 61 -LRB101 09851 RPS 54953 b

1any means provided for herein, shall not be a bar to any
2prosecution under this Act.
3    In addition to any other penalty provided for in this
4Article, all provisions of the Uniform Penalty and Interest Act
5that are not inconsistent with this Act apply any licensee who
6fails to pay any tax within the time required by this Article
7shall be subject to assessment of penalties and interest at
8rates set forth in the Uniform Penalty and Interest Act.
9(Source: P.A. 100-1050, eff. 7-1-19.)
 
10    Section 95. No acceleration or delay. Where this Act makes
11changes in a statute that is represented in this Act by text
12that is not yet or no longer in effect (for example, a Section
13represented by multiple versions), the use of that text does
14not accelerate or delay the taking effect of (i) the changes
15made by this Act or (ii) provisions derived from any other
16Public Act.
 
17    Section 999. Effective date. This Act takes effect upon
18becoming law.