Sen. Antonio Muñoz

Filed: 4/5/2019

 

 


 

 


 
10100SB1831sam001LRB101 09851 RPS 59098 a

1
AMENDMENT TO SENATE BILL 1831

2    AMENDMENT NO. ______. Amend Senate Bill 1831 by replacing
3everything after the enacting clause with the following:
 
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,

 

 

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

 

 

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

 

 

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1and who distributes its wine to licensed retailers shall cease
2this practice on or before July 1, 2008 in compliance with
3Public Act 95-634.
4    Class 7. A second-class wine-maker's license shall allow
5the manufacture of between 50,000 and 150,000 gallons of wine
6per year, and the storage and sale of such wine to distributors
7in this State and to persons without the State, as may be
8permitted by law. A person who, prior to June 1, 2008 (the
9effective date of Public Act 95-634), is a holder of a
10second-class wine-maker's license and annually produces more
11than 25,000 gallons of its own wine and who distributes its
12wine to licensed retailers shall cease this practice on or
13before July 1, 2008 in compliance with Public Act 95-634.
14    Class 8. A limited wine-manufacturer may make sales and
15deliveries not to exceed 40,000 gallons of wine per year to
16distributors, and to non-licensees in accordance with the
17provisions of this Act.
18    Class 9. A craft distiller license shall allow the
19manufacture of up to 100,000 gallons of spirits by distillation
20per year and the storage of such spirits. If a craft distiller
21licensee, including a craft distiller licensee who holds more
22than one craft distiller license, is not affiliated with any
23other manufacturer of spirits, then the craft distiller
24licensee may sell such spirits to distributors in this State
25and up to 2,500 gallons of such spirits to non-licensees to the
26extent permitted by any exemption approved by the Commission

 

 

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1pursuant to Section 6-4 of this Act. A craft distiller license
2holder may store such spirits at a non-contiguous licensed
3location, but at no time shall a craft distiller license holder
4directly or indirectly produce in the aggregate more than
5100,000 gallons of spirits per year.
6    A craft distiller licensee may hold more than one craft
7distiller's license. However, a craft distiller that holds more
8than one craft distiller license shall not manufacture, in the
9aggregate, more than 100,000 gallons of spirits by distillation
10per year and shall not sell, in the aggregate, more than 2,500
11gallons of such spirits to non-licensees in accordance with an
12exemption approved by the State Commission pursuant to Section
136-4 of this Act.
14    Any craft distiller licensed under this Act who on July 28,
152010 (the effective date of Public Act 96-1367) was licensed as
16a distiller and manufactured no more spirits than permitted by
17this Section shall not be required to pay the initial licensing
18fee.
19    Class 10. A class 1 brewer license, which may only be
20issued to a licensed brewer or licensed non-resident dealer,
21shall allow the manufacture of up to 930,000 gallons of beer
22per year provided that the class 1 brewer licensee does not
23manufacture more than a combined 930,000 gallons of beer per
24year and is not a member of or affiliated with, directly or
25indirectly, a manufacturer that produces more than 930,000
26gallons of beer per year or any other alcoholic liquor. A class

 

 

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11 brewer licensee may make sales and deliveries to importing
2distributors and distributors and to retail licensees in
3accordance with the conditions set forth in paragraph (18) of
4subsection (a) of Section 3-12 of this Act. If the State
5Commission provides prior approval, a class 1 brewer may
6annually transfer up to 930,000 gallons of beer manufactured by
7that class 1 brewer to the premises of a licensed class 1
8brewer wholly owned and operated by the same licensee.
9    Class 11. A class 2 brewer license, which may only be
10issued to a licensed brewer or licensed non-resident dealer,
11shall allow the manufacture of up to 3,720,000 gallons of beer
12per year provided that the class 2 brewer licensee does not
13manufacture more than a combined 3,720,000 gallons of beer per
14year and is not a member of or affiliated with, directly or
15indirectly, a manufacturer that produces more than 3,720,000
16gallons of beer per year or any other alcoholic liquor. A class
172 brewer licensee may make sales and deliveries to importing
18distributors and distributors, but shall not make sales or
19deliveries to any other licensee. If the State Commission
20provides prior approval, a class 2 brewer licensee may annually
21transfer up to 3,720,000 gallons of beer manufactured by that
22class 2 brewer licensee to the premises of a licensed class 2
23brewer wholly owned and operated by the same licensee.
24    A class 2 brewer may transfer beer to a brew pub wholly
25owned and operated by the class 2 brewer subject to the
26following limitations and restrictions: (i) the transfer shall

 

 

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1not annually exceed more than 31,000 gallons; (ii) the annual
2amount transferred shall reduce the brew pub's annual permitted
3production limit; (iii) all beer transferred shall be subject
4to Article VIII of this Act; (iv) a written record shall be
5maintained by the brewer and brew pub specifying the amount,
6date of delivery, and receipt of the product by the brew pub;
7and (v) the brew pub shall be located no farther than 80 miles
8from the class 2 brewer's licensed location.
9    A class 2 brewer shall, prior to transferring beer to a
10brew pub wholly owned by the class 2 brewer, furnish a written
11notice to the State Commission of intent to transfer beer
12setting forth the name and address of the brew pub and shall
13annually submit to the State Commission a verified report
14identifying the total gallons of beer transferred to the brew
15pub wholly owned by the class 2 brewer.
16    (a-1) A manufacturer which is licensed in this State to
17make sales or deliveries of alcoholic liquor to licensed
18distributors or importing distributors and which enlists
19agents, representatives, or individuals acting on its behalf
20who contact licensed retailers on a regular and continual basis
21in this State must register those agents, representatives, or
22persons acting on its behalf with the State Commission.
23    Registration of agents, representatives, or persons acting
24on behalf of a manufacturer is fulfilled by submitting a form
25to the Commission. The form shall be developed by the
26Commission and shall include the name and address of the

 

 

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1applicant, the name and address of the manufacturer he or she
2represents, the territory or areas assigned to sell to or
3discuss pricing terms of alcoholic liquor, and any other
4questions deemed appropriate and necessary. All statements in
5the forms required to be made by law or by rule shall be deemed
6material, and any person who knowingly misstates any material
7fact under oath in an application is guilty of a Class B
8misdemeanor. Fraud, misrepresentation, false statements,
9misleading statements, evasions, or suppression of material
10facts in the securing of a registration are grounds for
11suspension or revocation of the registration. The State
12Commission shall post a list of registered agents on the
13Commission's website.
14    (b) A distributor's license shall allow the wholesale
15purchase and storage of alcoholic liquors and sale of alcoholic
16liquors to licensees in this State and to persons without the
17State, as may be permitted by law, and the sale of beer, cider,
18or both beer and cider to brewers, class 1 brewers, and class 2
19brewers that, pursuant to subsection (e) of Section 6-4 of this
20Act, sell beer, cider, or both beer and cider to non-licensees
21at their breweries. No person licensed as a distributor shall
22be granted a non-resident dealer's license.
23    (c) An importing distributor's license may be issued to and
24held by those only who are duly licensed distributors, upon the
25filing of an application by a duly licensed distributor, with
26the Commission and the Commission shall, without the payment of

 

 

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1any fee, immediately issue such importing distributor's
2license to the applicant, which shall allow the importation of
3alcoholic liquor by the licensee into this State from any point
4in the United States outside this State, and the purchase of
5alcoholic liquor in barrels, casks or other bulk containers and
6the bottling of such alcoholic liquors before resale thereof,
7but all bottles or containers so filled shall be sealed,
8labeled, stamped and otherwise made to comply with all
9provisions, rules and regulations governing manufacturers in
10the preparation and bottling of alcoholic liquors. The
11importing distributor's license shall permit such licensee to
12purchase alcoholic liquor from Illinois licensed non-resident
13dealers and foreign importers only. No person licensed as an
14importing distributor shall be granted a non-resident dealer's
15license.
16    (d) A retailer's license shall allow the licensee to sell
17and offer for sale at retail, only in the premises specified in
18the license, alcoholic liquor for use or consumption, but not
19for resale in any form. Nothing in Public Act 95-634 shall
20deny, limit, remove, or restrict the ability of a holder of a
21retailer's license to transfer, deliver, or ship alcoholic
22liquor to the purchaser for use or consumption subject to any
23applicable local law or ordinance. Any retail license issued to
24a manufacturer shall only permit the manufacturer to sell beer
25at retail on the premises actually occupied by the
26manufacturer. For the purpose of further describing the type of

 

 

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1business conducted at a retail licensed premises, a retailer's
2licensee may be designated by the State Commission as (i) an on
3premise consumption retailer, (ii) an off premise sale
4retailer, or (iii) a combined on premise consumption and off
5premise sale retailer.
6    Notwithstanding any other provision of this subsection
7(d), a retail licensee may sell alcoholic liquors to a special
8event retailer licensee for resale to the extent permitted
9under subsection (e).
10    (e) A special event retailer's license (not-for-profit)
11shall permit the licensee to purchase alcoholic liquors from an
12Illinois licensed distributor (unless the licensee purchases
13less than $500 of alcoholic liquors for the special event, in
14which case the licensee may purchase the alcoholic liquors from
15a licensed retailer) and shall allow the licensee to sell and
16offer for sale, at retail, alcoholic liquors for use or
17consumption, but not for resale in any form and only at the
18location and on the specific dates designated for the special
19event in the license. An applicant for a special event retailer
20license must (i) furnish with the application: (A) a resale
21number issued under Section 2c of the Retailers' Occupation Tax
22Act or evidence that the applicant is registered under Section
232a of the Retailers' Occupation Tax Act, (B) a current, valid
24exemption identification number issued under Section 1g of the
25Retailers' Occupation Tax Act, and a certification to the
26Commission that the purchase of alcoholic liquors will be a

 

 

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1tax-exempt purchase, or (C) a statement that the applicant is
2not registered under Section 2a of the Retailers' Occupation
3Tax Act, does not hold a resale number under Section 2c of the
4Retailers' Occupation Tax Act, and does not hold an exemption
5number under Section 1g of the Retailers' Occupation Tax Act,
6in which event the Commission shall set forth on the special
7event retailer's license a statement to that effect; (ii)
8submit with the application proof satisfactory to the State
9Commission that the applicant will provide dram shop liability
10insurance in the maximum limits; and (iii) show proof
11satisfactory to the State Commission that the applicant has
12obtained local authority approval.
13    Nothing in this Act prohibits an Illinois licensed
14distributor from offering credit or a refund for unused,
15salable alcoholic liquors to a holder of a special event
16retailer's license or from the special event retailer's
17licensee from accepting the credit or refund of alcoholic
18liquors at the conclusion of the event specified in the
19license.
20    (f) A railroad license shall permit the licensee to import
21alcoholic liquors into this State from any point in the United
22States outside this State and to store such alcoholic liquors
23in this State; to make wholesale purchases of alcoholic liquors
24directly from manufacturers, foreign importers, distributors
25and importing distributors from within or outside this State;
26and to store such alcoholic liquors in this State; provided

 

 

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1that the above powers may be exercised only in connection with
2the importation, purchase or storage of alcoholic liquors to be
3sold or dispensed on a club, buffet, lounge or dining car
4operated on an electric, gas or steam railway in this State;
5and provided further, that railroad licensees exercising the
6above powers shall be subject to all provisions of Article VIII
7of this Act as applied to importing distributors. A railroad
8license shall also permit the licensee to sell or dispense
9alcoholic liquors on any club, buffet, lounge or dining car
10operated on an electric, gas or steam railway regularly
11operated by a common carrier in this State, but shall not
12permit the sale for resale of any alcoholic liquors to any
13licensee within this State. A license shall be obtained for
14each car in which such sales are made.
15    (g) A boat license shall allow the sale of alcoholic liquor
16in individual drinks, on any passenger boat regularly operated
17as a common carrier on navigable waters in this State or on any
18riverboat operated under the Riverboat Gambling Act, which boat
19or riverboat maintains a public dining room or restaurant
20thereon.
21    (h) A non-beverage user's license shall allow the licensee
22to purchase alcoholic liquor from a licensed manufacturer or
23importing distributor, without the imposition of any tax upon
24the business of such licensed manufacturer or importing
25distributor as to such alcoholic liquor to be used by such
26licensee solely for the non-beverage purposes set forth in

 

 

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1subsection (a) of Section 8-1 of this Act, and such licenses
2shall be divided and classified and shall permit the purchase,
3possession and use of limited and stated quantities of
4alcoholic liquor as follows:
5Class 1, not to exceed ......................... 500 gallons
6Class 2, not to exceed ....................... 1,000 gallons
7Class 3, not to exceed ....................... 5,000 gallons
8Class 4, not to exceed ...................... 10,000 gallons
9Class 5, not to exceed ....................... 50,000 gallons
10    (i) A wine-maker's premises license shall allow a licensee
11that concurrently holds a first-class wine-maker's license to
12sell and offer for sale at retail in the premises specified in
13such license not more than 50,000 gallons of the first-class
14wine-maker's wine that is made at the first-class wine-maker's
15licensed premises per year for use or consumption, but not for
16resale in any form. A wine-maker's premises license shall allow
17a licensee who concurrently holds a second-class wine-maker's
18license to sell and offer for sale at retail in the premises
19specified in such license up to 100,000 gallons of the
20second-class wine-maker's wine that is made at the second-class
21wine-maker's licensed premises per year for use or consumption
22but not for resale in any form. A wine-maker's premises license
23shall allow a licensee that concurrently holds a first-class
24wine-maker's license or a second-class wine-maker's license to
25sell and offer for sale at retail at the premises specified in
26the wine-maker's premises license, for use or consumption but

 

 

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1not for resale in any form, any beer, wine, and spirits
2purchased from a licensed distributor. Upon approval from the
3State Commission, a wine-maker's premises license shall allow
4the licensee to sell and offer for sale at (i) the wine-maker's
5licensed premises and (ii) at up to 2 additional locations for
6use and consumption and not for resale. Each location shall
7require additional licensing per location as specified in
8Section 5-3 of this Act. A wine-maker's premises licensee shall
9secure liquor liability insurance coverage in an amount at
10least equal to the maximum liability amounts set forth in
11subsection (a) of Section 6-21 of this Act.
12    (j) An airplane license shall permit the licensee to import
13alcoholic liquors into this State from any point in the United
14States outside this State and to store such alcoholic liquors
15in this State; to make wholesale purchases of alcoholic liquors
16directly from manufacturers, foreign importers, distributors
17and importing distributors from within or outside this State;
18and to store such alcoholic liquors in this State; provided
19that the above powers may be exercised only in connection with
20the importation, purchase or storage of alcoholic liquors to be
21sold or dispensed on an airplane; and provided further, that
22airplane licensees exercising the above powers shall be subject
23to all provisions of Article VIII of this Act as applied to
24importing distributors. An airplane licensee shall also permit
25the sale or dispensing of alcoholic liquors on any passenger
26airplane regularly operated by a common carrier in this State,

 

 

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1but shall not permit the sale for resale of any alcoholic
2liquors to any licensee within this State. A single airplane
3license shall be required of an airline company if liquor
4service is provided on board aircraft in this State. The annual
5fee for such license shall be as determined in Section 5-3.
6    (k) A foreign importer's license shall permit such licensee
7to purchase alcoholic liquor from Illinois licensed
8non-resident dealers only, and to import alcoholic liquor other
9than in bulk from any point outside the United States and to
10sell such alcoholic liquor to Illinois licensed importing
11distributors and to no one else in Illinois; provided that (i)
12the foreign importer registers with the State Commission every
13brand of alcoholic liquor that it proposes to sell to Illinois
14licensees during the license period, (ii) the foreign importer
15complies with all of the provisions of Section 6-9 of this Act
16with respect to registration of such Illinois licensees as may
17be granted the right to sell such brands at wholesale, and
18(iii) the foreign importer complies with the provisions of
19Sections 6-5 and 6-6 of this Act to the same extent that these
20provisions apply to manufacturers.
21    (l) (i) A broker's license shall be required of all persons
22who solicit orders for, offer to sell or offer to supply
23alcoholic liquor to retailers in the State of Illinois, or who
24offer to retailers to ship or cause to be shipped or to make
25contact with distillers, rectifiers, brewers or manufacturers
26or any other party within or without the State of Illinois in

 

 

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1order that alcoholic liquors be shipped to a distributor,
2importing distributor or foreign importer, whether such
3solicitation or offer is consummated within or without the
4State of Illinois.
5    No holder of a retailer's license issued by the Illinois
6Liquor Control Commission shall purchase or receive any
7alcoholic liquor, the order for which was solicited or offered
8for sale to such retailer by a broker unless the broker is the
9holder of a valid broker's license.
10    The broker shall, upon the acceptance by a retailer of the
11broker's solicitation of an order or offer to sell or supply or
12deliver or have delivered alcoholic liquors, promptly forward
13to the Illinois Liquor Control Commission a notification of
14said transaction in such form as the Commission may by
15regulations prescribe.
16    (ii) A broker's license shall be required of a person
17within this State, other than a retail licensee, who, for a fee
18or commission, promotes, solicits, or accepts orders for
19alcoholic liquor, for use or consumption and not for resale, to
20be shipped from this State and delivered to residents outside
21of this State by an express company, common carrier, or
22contract carrier. This Section does not apply to any person who
23promotes, solicits, or accepts orders for wine as specifically
24authorized in Section 6-29 of this Act.
25    A broker's license under this subsection (l) shall not
26entitle the holder to buy or sell any alcoholic liquors for his

 

 

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1own account or to take or deliver title to such alcoholic
2liquors.
3    This subsection (l) shall not apply to distributors,
4employees of distributors, or employees of a manufacturer who
5has registered the trademark, brand or name of the alcoholic
6liquor pursuant to Section 6-9 of this Act, and who regularly
7sells such alcoholic liquor in the State of Illinois only to
8its registrants thereunder.
9    Any agent, representative, or person subject to
10registration pursuant to subsection (a-1) of this Section shall
11not be eligible to receive a broker's license.
12    (m) A non-resident dealer's license shall permit such
13licensee to ship into and warehouse alcoholic liquor into this
14State from any point outside of this State, and to sell such
15alcoholic liquor to Illinois licensed foreign importers and
16importing distributors and to no one else in this State;
17provided that (i) said non-resident dealer shall register with
18the Illinois Liquor Control Commission each and every brand of
19alcoholic liquor which it proposes to sell to Illinois
20licensees during the license period, (ii) it shall comply with
21all of the provisions of Section 6-9 hereof with respect to
22registration of such Illinois licensees as may be granted the
23right to sell such brands at wholesale by duly filing such
24registration statement, thereby authorizing the non-resident
25dealer to proceed to sell such brands at wholesale, and (iii)
26the non-resident dealer shall comply with the provisions of

 

 

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1Sections 6-5 and 6-6 of this Act to the same extent that these
2provisions apply to manufacturers. No person licensed as a
3non-resident dealer shall be granted a distributor's or
4importing distributor's license.
5    (n) A brew pub license shall allow the licensee to only (i)
6manufacture up to 155,000 gallons of beer per year only on the
7premises specified in the license, (ii) make sales of the beer
8manufactured on the premises or, with the approval of the
9Commission, beer manufactured on another brew pub licensed
10premises that is wholly owned and operated by the same licensee
11to importing distributors, distributors, and to non-licensees
12for use and consumption, (iii) store the beer upon the
13premises, (iv) sell and offer for sale at retail from the
14licensed premises for off-premises consumption no more than
15155,000 gallons per year so long as such sales are only made
16in-person, (v) sell and offer for sale at retail for use and
17consumption on the premises specified in the license any form
18of alcoholic liquor purchased from a licensed distributor or
19importing distributor, and (vi) with the prior approval of the
20Commission, annually transfer no more than 155,000 gallons of
21beer manufactured on the premises to a licensed brew pub wholly
22owned and operated by the same licensee.
23    A brew pub licensee shall not under any circumstance sell
24or offer for sale beer manufactured by the brew pub licensee to
25retail licensees.
26    A person who holds a class 2 brewer license may

 

 

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

 

 

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1as the primary meal, either on or off-site whether licensed or
2unlicensed. A caterer retailer license shall allow the holder,
3a distributor, or an importing distributor to transfer any
4inventory to and from the holder's retail premises and shall
5allow the holder to purchase alcoholic liquor from a
6distributor or importing distributor to be delivered directly
7to an off-site event.
8    Nothing in this Act prohibits a distributor or importing
9distributor from offering credit or a refund for unused,
10salable beer to a holder of a caterer retailer license or a
11caterer retailer licensee from accepting a credit or refund for
12unused, salable beer, in the event an act of God is the sole
13reason an off-site event is cancelled and if: (i) the holder of
14a caterer retailer license has not transferred alcoholic liquor
15from its caterer retailer premises to an off-site location;
16(ii) the distributor or importing distributor offers the credit
17or refund for the unused, salable beer that it delivered to the
18off-site premises and not for any unused, salable beer that the
19distributor or importing distributor delivered to the caterer
20retailer's premises; and (iii) the unused, salable beer would
21likely spoil if transferred to the caterer retailer's premises.
22A caterer retailer license shall allow the holder, a
23distributor, or an importing distributor to transfer any
24inventory from any off-site location to its caterer retailer
25premises at the conclusion of an off-site event.
26    For purposes of this subsection (o), an "act of God" means

 

 

10100SB1831sam001- 21 -LRB101 09851 RPS 59098 a

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

 

 

10100SB1831sam001- 22 -LRB101 09851 RPS 59098 a

1provide dram shop liability insurance to the maximum limits and
2have local authority approval.
3    A special use permit license shall allow the holder, a
4distributor, or an importing distributor to transfer any
5inventory from the holder's special use premises to its retail
6premises at the conclusion of the special use event.
7    Nothing in this Act prohibits a distributor or importing
8distributor from offering credit or a refund for unused,
9salable beer to a special use permit licensee or a special use
10permit licensee from accepting a credit or refund for unused,
11salable beer at the conclusion of the event specified in the
12license if: (i) the holder of the special use permit license
13has not transferred alcoholic liquor from its retail licensed
14premises to the premises specified in the special use permit
15license; (ii) the distributor or importing distributor offers
16the credit or refund for the unused, salable beer that it
17delivered to the premises specified in the special use permit
18license and not for any unused, salable beer that the
19distributor or importing distributor delivered to the
20retailer's premises; and (iii) the unused, salable beer would
21likely spoil if transferred to the retailer premises.
22    (r) A winery shipper's license shall allow a person with a
23first-class or second-class wine manufacturer's license, a
24first-class or second-class wine-maker's license, or a limited
25wine manufacturer's license or who is licensed to make wine
26under the laws of another state to ship wine made by that

 

 

10100SB1831sam001- 23 -LRB101 09851 RPS 59098 a

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

 

 

10100SB1831sam001- 24 -LRB101 09851 RPS 59098 a

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

 

 

10100SB1831sam001- 25 -LRB101 09851 RPS 59098 a

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

 

 

10100SB1831sam001- 26 -LRB101 09851 RPS 59098 a

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

 

 

10100SB1831sam001- 27 -LRB101 09851 RPS 59098 a

1must comply with the requirements of Section 6-29 of this Act.
2    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
3Section 3-12, the State Commission may receive, respond to, and
4investigate any complaint and impose any of the remedies
5specified in paragraph (1) of subsection (a) of Section 3-12.
6    As used in this subsection, "third-party provider" means
7any entity that provides fulfillment house services, including
8warehousing, packaging, distribution, order processing, or
9shipment of wine, but not the sale of wine, on behalf of a
10licensed winery shipper.
11    (s) A craft distiller tasting permit license shall allow an
12Illinois licensed craft distiller to transfer a portion of its
13alcoholic liquor inventory from its craft distiller licensed
14premises to the premises specified in the license hereby
15created and to conduct a sampling, only in the premises
16specified in the license hereby created, of the transferred
17alcoholic liquor in accordance with subsection (c) of Section
186-31 of this Act. The transferred alcoholic liquor may not be
19sold or resold in any form. An applicant for the craft
20distiller tasting permit license must also submit with the
21application proof satisfactory to the State Commission that the
22applicant will provide dram shop liability insurance to the
23maximum limits and have local authority approval.
24    A brewer warehouse permit may be issued to the holder of a
25class 1 brewer license or a class 2 brewer license. If the
26holder of the permit is a class 1 brewer licensee, the brewer

 

 

10100SB1831sam001- 28 -LRB101 09851 RPS 59098 a

1warehouse permit shall allow the holder to store or warehouse
2up to 930,000 gallons of tax-determined beer manufactured by
3the holder of the permit at the premises specified on the
4permit. If the holder of the permit is a class 2 brewer
5licensee, the brewer warehouse permit shall allow the holder to
6store or warehouse up to 3,720,000 gallons of tax-determined
7beer manufactured by the holder of the permit at the premises
8specified on the permit. Sales to non-licensees are prohibited
9at the premises specified in the brewer warehouse permit.
10(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
1199-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
121-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
13eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
14revised 10-2-18.)
 
15    (235 ILCS 5/6-5.5 new)
16    Sec. 6-5.5. Consignment sales prohibited; retailer
17returns.
18    (a) In this Section, "retailer" means a retailer, special
19event retailer, special use permit licensee, caterer retailer,
20or brew pub.
21    (b) It is unlawful for a manufacturer with
22self-distribution privileges, importing distributor, or
23distributor to sell, offer for sale, or contract to sell to any
24retailer, or for any such retailer to purchase, offer to
25purchase, or contract to purchase any products:

 

 

10100SB1831sam001- 29 -LRB101 09851 RPS 59098 a

1        (1) on consignment or conditional sale, pursuant to
2    which the retailer has no obligation to pay for the product
3    until sold;
4        (2) with the privilege of return unless expressly
5    authorized in this Act;
6        (3) on any basis other than a bona fide sale; or
7        (4) if any part of the sale involves, directly or
8    indirectly, the acquisition by the retailer of other
9    products from a manufacturer with self-distribution
10    privileges, importing distributor, or distributor, or an
11    agreement to acquire other products from the manufacturer
12    with self-distribution privileges, importing distributor,
13    or distributor.
14    (c) Transactions involving the bona fide return of products
15for ordinary and usual commercial reasons arising after the
16product has been sold are not prohibited.
17    (d) Unless there is a bona fide business reason for
18replacement of an alcoholic liquor product when delivered, the
19alcoholic liquor product may not be replaced free of charge to
20a retailer. Replacement of an alcoholic liquor product damaged
21while in a retailer's possession constitutes the providing of
22something of value and is a violation of Sections 6-4, 6-5, and
236-6 of this Act. A manufacturer with self-distribution
24privileges, importing distributor, or distributor is not
25required to accept the return of products for the reasons
26stated in items (1) through (7) of subsection (f).

 

 

10100SB1831sam001- 30 -LRB101 09851 RPS 59098 a

1        (1) A manufacturer with self-distribution privileges,
2    importing distributor, or distributor may not accept the
3    return of alcoholic liquor products as breakage if the
4    product was damaged after delivery and while in the
5    possession of the retailer. The manufacturer with
6    self-distribution privileges, importing distributor, or
7    distributor may replace damaged cartons, packaging, or
8    carrying containers of alcoholic liquor at any time.
9        (2) Alcoholic liquor products or other compensation
10    shall not be furnished to a retailer for product breakage
11    that occurs as a result of handling by the retailer or its
12    agents, employees, or customers.
13        (3) If an alcoholic liquor product has been damaged
14    prior to or at the time of actual delivery, the product may
15    only be exchanged for an equal quantity of identical
16    product or returned for credit. If an identical product is
17    unavailable, a similar type of product, including a
18    similarly priced product, may be exchanged.
19        (4) If an alcoholic liquor product has been damaged
20    prior to or at the time of actual delivery, the product may
21    be exchanged no later than 15 days after delivery under the
22    following conditions:
23            (A) If the pre-delivery damage is visible at the
24        time of delivery, the retailer must identify the
25        damaged product immediately.
26            (B) If the damage is latent and not visible at the

 

 

10100SB1831sam001- 31 -LRB101 09851 RPS 59098 a

1        time of delivery, the retailer must notify the
2        manufacturer with self-distribution privileges,
3        importing distributor, or distributor of the
4        pre-delivery damage within 15 days after delivery, or
5        the date of invoice, whichever is later.
6    (e) It is unlawful to sell, offer to sell, or contract to
7sell alcoholic liquor products with the privilege of return for
8any reason, other than those considered to be ordinary and
9usual commercial reasons, arising after the product has been
10sold. A manufacturer with self-distribution privileges,
11importing distributor, or distributor is under no obligation to
12accept a return or make an exchange for any product. A
13manufacturer with self-distribution privileges, importing
14distributor, or distributor that elects to make an authorized
15exchange of a product or return of a product for cash or credit
16does so at its sole discretion and must maintain proper books
17and records of the transaction in accordance with 11 Ill. Adm.
18Code 100.130.
19    (f) Ordinary and usual commercial reasons for the return of
20alcoholic liquor products are limited to the following:
21        (1) Defective products. Products that are unmarketable
22    because of product deterioration, leaking containers,
23    damaged labels, or missing or mutilated tamper evident
24    closures may be exchanged for an equal quantity of
25    identical or similar products, including similarly priced
26    products, or credit against outstanding indebtedness.

 

 

10100SB1831sam001- 32 -LRB101 09851 RPS 59098 a

1        (2) Error in products delivered. Any discrepancy
2    between products ordered and products delivered may be
3    corrected, within 15 days after the date of delivery or
4    date of invoice, whichever is later, by exchange of the
5    products delivered for those that were ordered or by a
6    return for credit against outstanding indebtedness.
7        (3) Products that may no longer be lawfully sold.
8    Products that may no longer be lawfully sold may be
9    returned for credit against outstanding indebtedness. This
10    includes situations in which, due to a change in regulation
11    or administrative procedure over which a retailer has no
12    control, a particular size or brand is no longer permitted
13    to be sold.
14        (4) Termination of business. Products on hand at the
15    time a retailer terminates operations may be returned for
16    cash or credit against outstanding indebtedness. This does
17    not include a temporary seasonal shutdown.
18        (5) Change in products. A retailer's inventory of a
19    product that has been changed in formula, proof, label, or
20    container may be exchanged for equal quantities of the new
21    version of that product.
22        (6) Discontinued products. If a manufacturer,
23    non-resident dealer, foreign importer, or importing
24    distributor discontinues the production or importation of
25    a product, a retailer may return its inventory of that
26    product for cash or credit against outstanding

 

 

10100SB1831sam001- 33 -LRB101 09851 RPS 59098 a

1    indebtedness.
2        (7) Seasonal dealers. Manufacturers with
3    self-distribution privileges, importing distributors, or
4    distributors may accept the return of product from
5    retailers who are only open a portion of the year if the
6    products are likely to spoil during the off-season. These
7    returns shall be for cash or credit against outstanding
8    indebtedness.
9    (g) Without limitation, the following are not considered
10ordinary and commercial reasons to justify a return of an
11alcoholic liquor product:
12        (1) Overstocked and slow-moving alcoholic liquor
13    products. The return or exchange of a product because it is
14    overstocked or slow moving does not constitute a return for
15    ordinary and usual commercial reasons.
16        (2) Seasonal alcoholic liquor products. The return for
17    cash or credit or exchange of wine or spirits for which
18    there is only a limited or seasonal demand, such as holiday
19    decanters and certain distinctive bottles, does not
20    constitute a return for ordinary and usual commercial
21    reasons. Nothing in this item (2) prohibits the exchange of
22    seasonal beer products for similarly priced beer products.
23    (h) Nothing in this Section prohibits a manufacturer with
24self-distribution privileges, importing distributor, or
25distributor from accepting the return of beer from a retailer
26if the beer is near or beyond its freshness date, code date,

 

 

10100SB1831sam001- 34 -LRB101 09851 RPS 59098 a

1pull date, or other similar date marking the deterioration or
2freshness of the beer if:
3        (1) the brewer has policies and procedures in place
4    that specify the date the retailer must pull the product;
5        (2) the brewer's freshness return or exchange policies
6    and procedures are readily verifiable and consistently
7    followed by the brewer; and
8        (3) the container has identifying markings that
9    correspond with this date.
10    Returns under this subsection may be accepted in return for
11credit against indebtedness or equal amounts of the same or
12similar beer, including a similarly priced product.
13    For purposes of this Section, beer is near code on any date
14on or before the freshness or code date not to exceed 30 days
15prior to the freshness or code date. If near-code beer is
16returned, a manufacturer with self-distribution privileges,
17importing distributor, or distributor may sell near-code beer
18to another retailer who may reasonably sell the beer on or
19before the expiration of the freshness or code date. No beer
20shall be returned as near-code prior to 30 days of the
21freshness or code date.
22    It is a violation of this Section for a retailer to hold
23beer for the purpose of returning beer as out of code.
 
24    (235 ILCS 5/6-6)  (from Ch. 43, par. 123)
25    Sec. 6-6. Except as otherwise provided in this Act no

 

 

10100SB1831sam001- 35 -LRB101 09851 RPS 59098 a

1manufacturer or distributor or importing distributor shall,
2directly or indirectly, sell, supply, furnish, give or pay for,
3or loan or lease, any furnishing, fixture or equipment on the
4premises of a place of business of another licensee authorized
5under this Act to sell alcoholic liquor at retail, either for
6consumption on or off the premises, nor shall he or she,
7directly or indirectly, pay for any such license, or advance,
8furnish, lend or give money for payment of such license, or
9purchase or become the owner of any note, mortgage, or other
10evidence of indebtedness of such licensee or any form of
11security therefor, nor shall such manufacturer, or
12distributor, or importing distributor, directly or indirectly,
13be interested in the ownership, conduct or operation of the
14business of any licensee authorized to sell alcoholic liquor at
15retail, nor shall any manufacturer, or distributor, or
16importing distributor be interested directly or indirectly or
17as owner or part owner of said premises or as lessee or lessor
18thereof, in any premises upon which alcoholic liquor is sold at
19retail.
20    No manufacturer or distributor or importing distributor
21shall, directly or indirectly or through a subsidiary or
22affiliate, or by any officer, director or firm of such
23manufacturer, distributor or importing distributor, furnish,
24give, lend or rent, install, repair or maintain, to or for any
25retail licensee in this State, any signs or inside advertising
26materials except as provided in this Section and Section 6-5.

 

 

10100SB1831sam001- 36 -LRB101 09851 RPS 59098 a

1With respect to retail licensees, other than any government
2owned or operated auditorium, exhibition hall, recreation
3facility or other similar facility holding a retailer's license
4as described in Section 6-5, a manufacturer, distributor, or
5importing distributor may furnish, give, lend or rent and
6erect, install, repair and maintain to or for any retail
7licensee, for use at any one time in or about or in connection
8with a retail establishment on which the products of the
9manufacturer, distributor or importing distributor are sold,
10the following signs and inside advertising materials as
11authorized in subparts (i), (ii), (iii), and (iv):
12        (i) Permanent outside signs shall cost not more than
13    $3,000 per brand manufacturer, exclusive of erection,
14    installation, repair and maintenance costs, and permit
15    fees and shall bear only the manufacturer's name, brand
16    name, trade name, slogans, markings, trademark, or other
17    symbols commonly associated with and generally used in
18    identifying the product including, but not limited to,
19    "cold beer", "on tap", "carry out", and "packaged liquor".
20        (ii) Temporary outside signs shall include, but not be
21    limited to, banners, flags, pennants, streamers, and other
22    items of a temporary and non-permanent nature, and shall
23    cost not more than $1,000 per manufacturer. Each temporary
24    outside sign must include the manufacturer's name, brand
25    name, trade name, slogans, markings, trademark, or other
26    symbol commonly associated with and generally used in

 

 

10100SB1831sam001- 37 -LRB101 09851 RPS 59098 a

1    identifying the product. Temporary outside signs may also
2    include, for example, the product, price, packaging, date
3    or dates of a promotion and an announcement of a retail
4    licensee's specific sponsored event, if the temporary
5    outside sign is intended to promote a product, and provided
6    that the announcement of the retail licensee's event and
7    the product promotion are held simultaneously. However,
8    temporary outside signs may not include names, slogans,
9    markings, or logos that relate to the retailer. Nothing in
10    this subpart (ii) shall prohibit a distributor or importing
11    distributor from bearing the cost of creating or printing a
12    temporary outside sign for the retail licensee's specific
13    sponsored event or from bearing the cost of creating or
14    printing a temporary sign for a retail licensee containing,
15    for example, community goodwill expressions, regional
16    sporting event announcements, or seasonal messages,
17    provided that the primary purpose of the temporary outside
18    sign is to highlight, promote, or advertise the product. In
19    addition, temporary outside signs provided by the
20    manufacturer to the distributor or importing distributor
21    may also include, for example, subject to the limitations
22    of this Section, preprinted community goodwill
23    expressions, sporting event announcements, seasonal
24    messages, and manufacturer promotional announcements.
25    However, a distributor or importing distributor shall not
26    bear the cost of such manufacturer preprinted signs.

 

 

10100SB1831sam001- 38 -LRB101 09851 RPS 59098 a

1        (iii) Permanent inside signs, whether visible from the
2    outside or the inside of the premises, include, but are not
3    limited to: alcohol lists and menus that may include names,
4    slogans, markings, or logos that relate to the retailer;
5    neons; illuminated signs; clocks; table lamps; mirrors;
6    tap handles; decalcomanias; window painting; and window
7    trim. All neons, illuminated signs, clocks, table lamps,
8    mirrors, and tap handles are the property of the
9    manufacturer and shall be returned to the manufacturer or
10    its agent upon request. All permanent inside signs in place
11    and in use at any one time shall cost in the aggregate not
12    more than $6,000 per manufacturer. A permanent inside sign
13    must include the manufacturer's name, brand name, trade
14    name, slogans, markings, trademark, or other symbol
15    commonly associated with and generally used in identifying
16    the product. However, permanent inside signs may not
17    include names, slogans, markings, or logos that relate to
18    the retailer. For the purpose of this subpart (iii), all
19    permanent inside signs may be displayed in an adjacent
20    courtyard or patio commonly referred to as a "beer garden"
21    that is a part of the retailer's licensed premises.
22        (iv) Temporary inside signs shall include, but are not
23    limited to, lighted chalk boards, acrylic table tent
24    beverage or hors d'oeuvre list holders, banners, flags,
25    pennants, streamers, and inside advertising materials such
26    as posters, placards, bowling sheets, table tents, inserts

 

 

10100SB1831sam001- 39 -LRB101 09851 RPS 59098 a

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

 

 

10100SB1831sam001- 40 -LRB101 09851 RPS 59098 a

1manufacturers, distributors or importing distributors to a
2government owned or operated facility holding a retailer's
3license as described in Section 6-5.
4    No distributor or importing distributor shall directly or
5indirectly or through a subsidiary or affiliate, or by any
6officer, director or firm of such manufacturer, distributor or
7importing distributor, furnish, give, lend or rent, install,
8repair or maintain, to or for any retail licensee in this
9State, any signs or inside advertising materials described in
10subparts (i), (ii), (iii), or (iv) of this Section except as
11the agent for or on behalf of a manufacturer, provided that the
12total cost of any signs and inside advertising materials
13including but not limited to labor, erection, installation and
14permit fees shall be paid by the manufacturer whose product or
15products said signs and inside advertising materials advertise
16and except as follows:
17    A distributor or importing distributor may purchase from or
18enter into a written agreement with a manufacturer or a
19manufacturer's designated supplier and such manufacturer or
20the manufacturer's designated supplier may sell or enter into
21an agreement to sell to a distributor or importing distributor
22permitted signs and advertising materials described in
23subparts (ii), (iii), or (iv) of this Section for the purpose
24of furnishing, giving, lending, renting, installing,
25repairing, or maintaining such signs or advertising materials
26to or for any retail licensee in this State. Any purchase by a

 

 

10100SB1831sam001- 41 -LRB101 09851 RPS 59098 a

1distributor or importing distributor from a manufacturer or a
2manufacturer's designated supplier shall be voluntary and the
3manufacturer may not require the distributor or the importing
4distributor to purchase signs or advertising materials from the
5manufacturer or the manufacturer's designated supplier.
6    A distributor or importing distributor shall be deemed the
7owner of such signs or advertising materials purchased from a
8manufacturer or a manufacturer's designated supplier.
9    The provisions of Public Act 90-373 concerning signs or
10advertising materials delivered by a manufacturer to a
11distributor or importing distributor shall apply only to signs
12or advertising materials delivered on or after August 14, 1997.
13    A manufacturer, distributor, or importing distributor may
14furnish free social media advertising to a retail licensee if
15the social media advertisement does not contain the retail
16price of any alcoholic liquor and the social media
17advertisement complies with any applicable rules or
18regulations issued by the Alcohol and Tobacco Tax and Trade
19Bureau of the United States Department of the Treasury. A
20manufacturer, distributor, or importing distributor may list
21the names of one or more unaffiliated retailers in the
22advertisement of alcoholic liquor through social media.
23Nothing in this Section shall prohibit a retailer from
24communicating with a manufacturer, distributor, or importing
25distributor on social media or sharing media on the social
26media of a manufacturer, distributor, or importing

 

 

10100SB1831sam001- 42 -LRB101 09851 RPS 59098 a

1distributor. A retailer may request free social media
2advertising from a manufacturer, distributor, or importing
3distributor. Nothing in this Section shall prohibit a
4manufacturer, distributor, or importing distributor from
5sharing, reposting, or otherwise forwarding a social media post
6by a retail licensee, so long as the sharing, reposting, or
7forwarding of the social media post does not contain the retail
8price of any alcoholic liquor. No manufacturer, distributor, or
9importing distributor shall pay or reimburse a retailer,
10directly or indirectly, for any social media advertising
11services, except as specifically permitted in this Act. No
12retailer shall accept any payment or reimbursement, directly or
13indirectly, for any social media advertising services offered
14by a manufacturer, distributor, or importing distributor,
15except as specifically permitted in this Act. For the purposes
16of this Section, "social media" means a service, platform, or
17site where users communicate with one another and share media,
18such as pictures, videos, music, and blogs, with other users
19free of charge.
20    No person engaged in the business of manufacturing,
21importing or distributing alcoholic liquors shall, directly or
22indirectly, pay for, or advance, furnish, or lend money for the
23payment of any license for another. Any licensee who shall
24permit or assent, or be a party in any way to any violation or
25infringement of the provisions of this Section shall be deemed
26guilty of a violation of this Act, and any money loaned

 

 

10100SB1831sam001- 43 -LRB101 09851 RPS 59098 a

1contrary to a provision of this Act shall not be recovered
2back, or any note, mortgage or other evidence of indebtedness,
3or security, or any lease or contract obtained or made contrary
4to this Act shall be unenforceable and void.
5    This Section shall not apply to airplane licensees
6exercising powers provided in paragraph (i) of Section 5-1 of
7this Act.
8(Source: P.A. 99-448, eff. 8-24-15; 100-885, eff. 8-14-18.)
 
9    (235 ILCS 5/6-6.5)
10    Sec. 6-6.5. Sanitation. A manufacturer, distributor, or
11importing distributor may sell coil cleaning services to a
12retail licensee at fair market cost.
13    A manufacturer, distributor, or importing distributor may
14sell dispensing accessories to retail licensees at a price not
15less than the cost to the manufacturer, distributor, or
16importing distributor who initially purchased them. Dispensing
17accessories include, but are not limited to, items such as
18standards, faucets, cold plates, rods, vents, taps, tap
19standards, hoses, washers, couplings, gas gauges, vent
20tongues, shanks, and check valves. A manufacturer,
21distributor, or importing distributor may service, balance, or
22inspect draft beer, wine, or distilled spirits systems at
23regular intervals and may provide labor to replace or install
24dispensing accessories.
25    Coil cleaning supplies consisting of detergents, cleaning

 

 

10100SB1831sam001- 44 -LRB101 09851 RPS 59098 a

1chemicals, brushes, or similar type cleaning devices may be
2sold at a price not less than the cost to the manufacturer,
3distributor, or importing distributor.
4    A distributor or importing distributor shall not sell or
5give coil cleaning services to a retailer, special use permit
6licensee, caterer retailer, or brew pub.
7(Source: P.A. 90-432, eff. 1-1-98.)
 
8    (235 ILCS 5/6-6.6 new)
9    Sec. 6-6.6. Giving, selling, and leasing dispensing
10equipment. Notwithstanding any provision of this Act to the
11contrary, a manufacturer, distributor, or importing
12distributor may:
13        (1) give dispensing equipment free of charge to a
14    retailer, special use permit licensee, or caterer retailer
15    one time per year for a one-day period. A manufacturer,
16    distributor, or importing distributor shall not supply a
17    retailer, special use permit licensee, or caterer retailer
18    with free beer, wine, spirits, or any other item of value
19    for the same one-day period the dispensing equipment is
20    given, except as otherwise provided in this Act or the
21    Illinois Administrative Code;
22        (2) give dispensing equipment free of charge to a
23    special event retailer only for the duration of the
24    licensed special event. A manufacturer, distributor, or
25    importing distributor shall not supply a special event

 

 

10100SB1831sam001- 45 -LRB101 09851 RPS 59098 a

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

 

 

10100SB1831sam001- 46 -LRB101 09851 RPS 59098 a

1use permit licensee, or caterer retailer within 30 days of the
2date of the invoice or from the date the lease is executed. The
3term of any lease for dispensing equipment shall not exceed 180
4days and no 180-day lease shall be renewed automatically. Upon
5expiration of a 180-day lease, there shall be a lapse of 30
6consecutive days before the beginning of a new lease term.
7    Notwithstanding any provision of this Section to the
8contrary, a manufacturer, distributor, or importing
9distributor may also enter into a written lease for the fair
10market value of the dispensing equipment to retailers, special
11event retailers, special use permit licensees, or caterer
12retailers that sell alcoholic liquor at concert venues,
13stadiums, convention or conference centers, theaters or music
14venues where the primary purpose of the venue is to host live
15entertainment, and State and county fairs, for which the term
16of the lease shall correspond with the entire season or
17calendar of games, concerts, conferences, or other events of a
18similar nature. At the direction of the manufacturer,
19distributor, or importing distributor, the retailer, special
20event retailer, special use permit licensee, or caterer
21retailer shall return the equipment or the manufacturer,
22distributor, or importing distributor shall retrieve the
23dispensing equipment at the termination of the lease.
24    In this Section, "dispensing equipment" means any portable
25or temporary unit the primary purpose of which is to pour
26alcoholic liquor or to maintain the alcoholic liquor in a

 

 

10100SB1831sam001- 47 -LRB101 09851 RPS 59098 a

1consumable state. "Dispensing equipment" includes courtesy
2wagons, beer wagons, beer trailers, ice bins, draft coolers,
3coil boxes, portable bars, and kiosks. "Dispensing equipment"
4does not include permanent tap systems, permanent
5refrigeration systems, or any other built-in or physically
6attached fixture of the retailer, special event retailer,
7special use permit licensee, or caterer retailer.
8    In this Section, "fair market value" for the purposes of
9leasing dispensing equipment means (i) the cost of depreciation
10of the dispensing equipment to the manufacturer, distributor,
11or importing distributor for the same period of the lease or
12(ii) the cost of depreciation the manufacturer, distributor, or
13importing distributor would have incurred based upon the market
14value of the dispensing equipment if the manufacturer,
15distributor, or importing distributor did not pay for the
16dispensing equipment.
 
17    (235 ILCS 5/8-1)
18    Sec. 8-1. A tax is imposed upon the privilege of engaging
19in business as a manufacturer or as an importing distributor of
20alcoholic liquor other than beer at the rate of $0.185 per
21gallon until September 1, 2009 and $0.231 per gallon beginning
22September 1, 2009 for cider containing not less than 0.5%
23alcohol by volume nor more than 7% alcohol by volume, $0.73 per
24gallon until September 1, 2009 and $1.39 per gallon beginning
25September 1, 2009 for wine other than cider containing less

 

 

10100SB1831sam001- 48 -LRB101 09851 RPS 59098 a

1than 7% alcohol by volume, and $4.50 per gallon until September
21, 2009 and $8.55 per gallon beginning September 1, 2009 on
3alcohol and spirits manufactured and sold or used by such
4manufacturer, or as agent for any other person, or sold or used
5by such importing distributor, or as agent for any other
6person. A tax is imposed upon the privilege of engaging in
7business as a manufacturer of beer or as an importing
8distributor of beer at the rate of $0.185 per gallon until
9September 1, 2009 and $0.231 per gallon beginning September 1,
102009 on all beer, regardless of alcohol by volume, manufactured
11and sold or used by such manufacturer, or as agent for any
12other person, or sold or used by such importing distributor, or
13as agent for any other person. Any brewer manufacturing beer in
14this State shall be entitled to and given a credit or refund of
1575% of the tax imposed on each gallon of beer up to 4.9 million
16gallons per year in any given calendar year for tax paid or
17payable on beer produced and sold in the State of Illinois.
18    For purposes of this Section, "beer" means beer, ale,
19porter, stout, and other similar fermented beverages of any
20name or description containing one-half of one percent or more
21of alcohol by volume, brewed or produced from malt, wholly or
22in part, or from any substitute for malt.
23    For the purpose of this Section, "cider" means any
24alcoholic beverage obtained by the alcohol fermentation of the
25juice of apples or pears including, but not limited to,
26flavored, sparkling, or carbonated cider.

 

 

10100SB1831sam001- 49 -LRB101 09851 RPS 59098 a

1    The credit or refund created by this Act shall apply to all
2beer taxes in the calendar years 1982 through 1986.
3    The increases made by this amendatory Act of the 91st
4General Assembly in the rates of taxes imposed under this
5Section shall apply beginning on July 1, 1999.
6    A tax at the rate of 1¢ per gallon on beer and 48¢ per
7gallon on alcohol and spirits is also imposed upon the
8privilege of engaging in business as a retailer or as a
9distributor who is not also an importing distributor with
10respect to all beer and all alcohol and spirits owned or
11possessed by such retailer or distributor when this amendatory
12Act of 1969 becomes effective, and with respect to which the
13additional tax imposed by this amendatory Act upon
14manufacturers and importing distributors does not apply.
15Retailers and distributors who are subject to the additional
16tax imposed by this paragraph of this Section shall be required
17to inventory such alcoholic liquor and to pay this additional
18tax in a manner prescribed by the Department.
19    The provisions of this Section shall be construed to apply
20to any importing distributor engaging in business in this
21State, whether licensed or not.
22    However, such tax is not imposed upon any such business as
23to any alcoholic liquor shipped outside Illinois by an Illinois
24licensed manufacturer or importing distributor, nor as to any
25alcoholic liquor delivered in Illinois by an Illinois licensed
26manufacturer or importing distributor to a purchaser for

 

 

10100SB1831sam001- 50 -LRB101 09851 RPS 59098 a

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

 

 

10100SB1831sam001- 51 -LRB101 09851 RPS 59098 a

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

 

 

10100SB1831sam001- 52 -LRB101 09851 RPS 59098 a

1by Illinois licensed foreign importers to Illinois licensed
2importing distributors.
3    All of the proceeds of the additional tax imposed by Public
4Act 96-34 shall be deposited by the Department into the Capital
5Projects Fund. The remainder of the tax imposed by this Act
6shall be deposited by the Department into the General Revenue
7Fund.
8    A manufacturer of beer that imports or transfers beer into
9this State must comply with the provisions of this Section with
10regard to the beer imported into this State.
11    The provisions of this Section 8-1 are severable under
12Section 1.31 of the Statute on Statutes.
13(Source: P.A. 100-885, eff. 8-14-18.)
 
14    (235 ILCS 5/8-5)  (from Ch. 43, par. 163a)
15    (Text of Section before amendment by P.A. 100-1050)
16    Sec. 8-5. As soon as practicable after any return is filed,
17the Department shall examine such return and shall correct such
18return according to its best judgment and information, which
19return so corrected by the Department shall be prima facie
20correct and shall be prima facie evidence of the correctness of
21the amount of tax due, as shown therein. Instead of requiring
22the licensee to file an amended return, the Department may
23simply notify the licensee of the correction or corrections it
24has made. Proof of such correction by the Department, or of the
25determination of the amount of tax due as provided in Sections

 

 

10100SB1831sam001- 53 -LRB101 09851 RPS 59098 a

18-4 and 8-10, may be made at any hearing before the Department
2or in any legal proceeding by a reproduced copy of the
3Department's record relating thereto in the name of the
4Department under the certificate of the Director of Revenue.
5Such reproduced copy shall, without further proof, be admitted
6into evidence before the Department or in any legal proceeding
7and shall be prima facie proof of the correctness of the amount
8of tax due, as shown therein. If the return so corrected by the
9Department discloses the sale or use, by a licensed
10manufacturer or importing distributor, of alcoholic liquors as
11to which the tax provided for in this Article should have been
12paid, but has not been paid, in excess of the alcoholic liquors
13reported as being taxable by the licensee, and as to which the
14proper tax was paid the Department shall notify the licensee
15that it shall issue the taxpayer a notice of tax liability for
16the amount of tax claimed by the Department to be due, together
17with penalties at the rates prescribed by Sections 3-3, 3-5 and
183-6 of the Uniform Penalty and Interest Act, which amount of
19tax shall be equivalent to the amount of tax which, at the
20prescribed rate per gallon, should have been paid with respect
21to the alcoholic liquors disposed of in excess of those
22reported as being taxable. No earlier than 90 days after the
23due date of the return, the Department may compare filed
24returns, or any amendments thereto, against reports of sales of
25alcoholic liquor submitted to the Department by other
26manufacturers and distributors. If a return or amended return

 

 

10100SB1831sam001- 54 -LRB101 09851 RPS 59098 a

1is corrected by the Department because the return or amended
2return failed to disclose the purchase of alcoholic liquor from
3manufacturers or distributors on which the tax provided for in
4this Article should have been paid, but has not been paid, the
5Department shall issue the taxpayer a notice of tax liability
6for the amount of tax claimed by the Department to be due,
7together with penalties at the rates prescribed by Sections
83-3, 3-5, and 3-6 of the Uniform Penalty and Interest Act. In a
9case where no return has been filed, the Department shall
10determine the amount of tax due according to its best judgment
11and information and shall issue the taxpayer a notice of tax
12liability for the amount of tax claimed by the Department to be
13due as herein provided together with penalties at the rates
14prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform Penalty
15and Interest Act. If, in administering the provisions of this
16Act, a comparison of a licensee's return or returns with the
17books, records and physical inventories of such licensee
18discloses a deficiency which cannot be allocated by the
19Department to a particular month or months, the Department
20shall issue the taxpayer a notice of tax liability for the
21amount of tax claimed by the Department to be due for a given
22period, but without any obligation upon the Department to
23allocate such deficiency to any particular month or months,
24together with penalties at the rates prescribed by Sections
253-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, which
26amount of tax shall be equivalent to the amount of tax which,

 

 

10100SB1831sam001- 55 -LRB101 09851 RPS 59098 a

1at the prescribed rate per gallon, should have been paid with
2respect to the alcoholic liquors disposed of in excess of those
3reported being taxable, with the tax thereon having been paid
4under which circumstances the aforesaid notice of tax liability
5shall be prima facie correct and shall be prima facie evidence
6of the correctness of the amount of tax due as shown therein;
7and proof of such correctness may be made in accordance with,
8and the admissibility of a reproduced copy of such notice of
9the Department's notice of tax liability shall be governed by,
10all the provisions of this Act applicable to corrected returns.
11    If the licensee dies or becomes a person under legal
12disability at any time before the Department issues its notice
13of tax liability, such notice shall be issued to the
14administrator, executor or other legal representative, as
15such, of the deceased or licensee who is under legal
16disability.
17    If such licensee or legal representative, within 60 days
18after such notice of tax liability, files a protest to such
19notice of tax liability and requests a hearing thereon, the
20Department shall give at least 7 days' notice to such licensee
21or legal representative, as the case may be, of the time and
22place fixed for such hearing and shall hold a hearing in
23conformity with the provisions of this Act, and pursuant
24thereto shall issue a final assessment to such licensee or
25legal representative for the amount found to be due as a result
26of such hearing.

 

 

10100SB1831sam001- 56 -LRB101 09851 RPS 59098 a

1    If a protest to the notice of tax liability and a request
2for a hearing thereon is not filed within 60 days after such
3notice of tax liability, such notice of tax liability shall
4become final without the necessity of a final assessment being
5issued and shall be deemed to be a final assessment.
6    In case of failure to pay the tax, or any portion thereof,
7or any penalty provided for herein, when due, the Department
8may recover the amount of such tax, or portion thereof, or
9penalty in a civil action; or if the licensee dies or becomes a
10person under legal disability, by filing a claim therefor
11against his or her estate; provided that no such claim shall be
12filed against the estate of any deceased or of the licensee who
13is under legal disability for any tax or penalty or portion
14thereof except in the manner prescribed and within the time
15limited by the Probate Act of 1975, as amended.
16    The collection of any such tax and penalty, or either, by
17any means provided for herein, shall not be a bar to any
18prosecution under this Act.
19    In addition to any other penalty provided for in this
20Article, all provisions of the Uniform Penalty and Interest Act
21that are not inconsistent with this Act apply any licensee who
22fails to pay any tax within the time required by this Article
23shall be subject to assessment of penalties and interest at
24rates set forth in the Uniform Penalty and Interest Act.
25(Source: P.A. 87-205; 87-879.)
 

 

 

10100SB1831sam001- 57 -LRB101 09851 RPS 59098 a

1    (Text of Section after amendment by P.A. 100-1050)
2    Sec. 8-5. As soon as practicable after any return is filed
3but not before 90 days after the return is filed, or any
4amendments to that return, whichever is later, the Department
5shall examine such return or amended return and shall correct
6such return according to its best judgment and information,
7which return so corrected by the Department shall be prima
8facie correct and shall be prima facie evidence of the
9correctness of the amount of tax due, as shown therein. Instead
10of requiring the licensee to file an amended return, the
11Department may simply notify the licensee of the correction or
12corrections it has made. Proof of such correction by the
13Department, or of the determination of the amount of tax due as
14provided in Sections 8-4 and 8-10, may be made at any hearing
15before the Department or in any legal proceeding by a
16reproduced copy of the Department's record relating thereto in
17the name of the Department under the certificate of the
18Director of Revenue. Such reproduced copy shall, without
19further proof, be admitted into evidence before the Department
20or in any legal proceeding and shall be prima facie proof of
21the correctness of the amount of tax due, as shown therein. If
22the return so corrected by the Department discloses the sale or
23use, by a licensed manufacturer or importing distributor, of
24alcoholic liquors as to which the tax provided for in this
25Article should have been paid, but has not been paid, in excess
26of the alcoholic liquors reported as being taxable by the

 

 

10100SB1831sam001- 58 -LRB101 09851 RPS 59098 a

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

 

 

10100SB1831sam001- 59 -LRB101 09851 RPS 59098 a

1due as herein provided together with penalties at the rates
2prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform Penalty
3and Interest Act. If, in administering the provisions of this
4Act, a comparison of a licensee's return or returns with the
5books, records and physical inventories of such licensee
6discloses a deficiency which cannot be allocated by the
7Department to a particular month or months, the Department
8shall issue the taxpayer a notice of tax liability for the
9amount of tax claimed by the Department to be due for a given
10period, but without any obligation upon the Department to
11allocate such deficiency to any particular month or months,
12together with penalties at the rates prescribed by Sections
133-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, which
14amount of tax shall be equivalent to the amount of tax which,
15at the prescribed rate per gallon, should have been paid with
16respect to the alcoholic liquors disposed of in excess of those
17reported being taxable, with the tax thereon having been paid
18under which circumstances the aforesaid notice of tax liability
19shall be prima facie correct and shall be prima facie evidence
20of the correctness of the amount of tax due as shown therein;
21and proof of such correctness may be made in accordance with,
22and the admissibility of a reproduced copy of such notice of
23the Department's notice of tax liability shall be governed by,
24all the provisions of this Act applicable to corrected returns.
25    If the licensee dies or becomes a person under legal
26disability at any time before the Department issues its notice

 

 

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

 

 

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1is under legal disability for any tax or penalty or portion
2thereof except in the manner prescribed and within the time
3limited by the Probate Act of 1975, as amended.
4    The collection of any such tax and penalty, or either, by
5any means provided for herein, shall not be a bar to any
6prosecution under this Act.
7    In addition to any other penalty provided for in this
8Article, all provisions of the Uniform Penalty and Interest Act
9that are not inconsistent with this Act apply any licensee who
10fails to pay any tax within the time required by this Article
11shall be subject to assessment of penalties and interest at
12rates set forth in the Uniform Penalty and Interest Act.
13(Source: P.A. 100-1050, eff. 7-1-19.)
 
14    Section 95. No acceleration or delay. Where this Act makes
15changes in a statute that is represented in this Act by text
16that is not yet or no longer in effect (for example, a Section
17represented by multiple versions), the use of that text does
18not accelerate or delay the taking effect of (i) the changes
19made by this Act or (ii) provisions derived from any other
20Public Act.".