Sen. Donne E. Trotter

Filed: 4/11/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 754

2    AMENDMENT NO. ______. Amend Senate Bill 754 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 1-3.33, 3-12, 5-1, and 5-3 and by adding
6Section 1-3.38 as follows:
 
7    (235 ILCS 5/1-3.33)
8    Sec. 1-3.33. "Brew Pub" means a person who manufactures
9beer only at a designated premises to make sales to importing
10distributors, distributors, and to non-licensees for use and
11consumption only, who stores beer at the designated premises,
12and who is allowed to sell at retail from the licensed
13premises, provided that a brew pub licensee shall not sell for
14off-premises consumption more than 50,000 gallons per year. A
15person who holds a brew pub license may simultaneously hold a
16craft brewer license if he or she otherwise qualifies for the

 

 

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1craft brewer license and the craft brewer license is for a
2location separate from the brew pub's licensed premises.
3(Source: P.A. 90-432, eff. 1-1-98.)
 
4    (235 ILCS 5/1-3.38 new)
5    Sec. 1-3.38. "Craft brewer" means a licensed brewer or
6licensed non-resident dealer who manufactures up to 465,000
7gallons of beer per year and who may make sales and deliveries
8to importing distributors and distributors and to retail
9licensees in accordance with the conditions set forth in
10paragraph (18) of subsection (a) of Section 3-12 of this Act.
 
11    (235 ILCS 5/3-12)
12    Sec. 3-12. Powers and duties of State Commission.
13    (a) The State commission shall have the following powers,
14functions and duties:
15        (1) To receive applications and to issue licenses to
16    manufacturers, foreign importers, importing distributors,
17    distributors, non-resident dealers, on premise consumption
18    retailers, off premise sale retailers, special event
19    retailer licensees, special use permit licenses, auction
20    liquor licenses, brew pubs, caterer retailers,
21    non-beverage users, railroads, including owners and
22    lessees of sleeping, dining and cafe cars, airplanes,
23    boats, brokers, and wine maker's premises licensees in
24    accordance with the provisions of this Act, and to suspend

 

 

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1    or revoke such licenses upon the State commission's
2    determination, upon notice after hearing, that a licensee
3    has violated any provision of this Act or any rule or
4    regulation issued pursuant thereto and in effect for 30
5    days prior to such violation. Except in the case of an
6    action taken pursuant to a violation of Section 6-3, 6-5,
7    or 6-9, any action by the State Commission to suspend or
8    revoke a licensee's license may be limited to the license
9    for the specific premises where the violation occurred.
10        In lieu of suspending or revoking a license, the
11    commission may impose a fine, upon the State commission's
12    determination and notice after hearing, that a licensee has
13    violated any provision of this Act or any rule or
14    regulation issued pursuant thereto and in effect for 30
15    days prior to such violation. The fine imposed under this
16    paragraph may not exceed $500 for each violation. Each day
17    that the activity, which gave rise to the original fine,
18    continues is a separate violation. The maximum fine that
19    may be levied against any licensee, for the period of the
20    license, shall not exceed $20,000. The maximum penalty that
21    may be imposed on a licensee for selling a bottle of
22    alcoholic liquor with a foreign object in it or serving
23    from a bottle of alcoholic liquor with a foreign object in
24    it shall be the destruction of that bottle of alcoholic
25    liquor for the first 10 bottles so sold or served from by
26    the licensee. For the eleventh bottle of alcoholic liquor

 

 

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1    and for each third bottle thereafter sold or served from by
2    the licensee with a foreign object in it, the maximum
3    penalty that may be imposed on the licensee is the
4    destruction of the bottle of alcoholic liquor and a fine of
5    up to $50.
6        (2) To adopt such rules and regulations consistent with
7    the provisions of this Act which shall be necessary to
8    carry on its functions and duties to the end that the
9    health, safety and welfare of the People of the State of
10    Illinois shall be protected and temperance in the
11    consumption of alcoholic liquors shall be fostered and
12    promoted and to distribute copies of such rules and
13    regulations to all licensees affected thereby.
14        (3) To call upon other administrative departments of
15    the State, county and municipal governments, county and
16    city police departments and upon prosecuting officers for
17    such information and assistance as it deems necessary in
18    the performance of its duties.
19        (4) To recommend to local commissioners rules and
20    regulations, not inconsistent with the law, for the
21    distribution and sale of alcoholic liquors throughout the
22    State.
23        (5) To inspect, or cause to be inspected, any premises
24    in this State where alcoholic liquors are manufactured,
25    distributed, warehoused, or sold.
26        (5.1) Upon receipt of a complaint or upon having

 

 

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1    knowledge that any person is engaged in business as a
2    manufacturer, importing distributor, distributor, or
3    retailer without a license or valid license, to notify the
4    local liquor authority, file a complaint with the State's
5    Attorney's Office of the county where the incident
6    occurred, or initiate an investigation with the
7    appropriate law enforcement officials.
8        (5.2) To issue a cease and desist notice to persons
9    shipping alcoholic liquor into this State from a point
10    outside of this State if the shipment is in violation of
11    this Act.
12        (5.3) To receive complaints from licensees, local
13    officials, law enforcement agencies, organizations, and
14    persons stating that any licensee has been or is violating
15    any provision of this Act or the rules and regulations
16    issued pursuant to this Act. Such complaints shall be in
17    writing, signed and sworn to by the person making the
18    complaint, and shall state with specificity the facts in
19    relation to the alleged violation. If the Commission has
20    reasonable grounds to believe that the complaint
21    substantially alleges a violation of this Act or rules and
22    regulations adopted pursuant to this Act, it shall conduct
23    an investigation. If, after conducting an investigation,
24    the Commission is satisfied that the alleged violation did
25    occur, it shall proceed with disciplinary action against
26    the licensee as provided in this Act.

 

 

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1        (6) To hear and determine appeals from orders of a
2    local commission in accordance with the provisions of this
3    Act, as hereinafter set forth. Hearings under this
4    subsection shall be held in Springfield or Chicago, at
5    whichever location is the more convenient for the majority
6    of persons who are parties to the hearing.
7        (7) The commission shall establish uniform systems of
8    accounts to be kept by all retail licensees having more
9    than 4 employees, and for this purpose the commission may
10    classify all retail licensees having more than 4 employees
11    and establish a uniform system of accounts for each class
12    and prescribe the manner in which such accounts shall be
13    kept. The commission may also prescribe the forms of
14    accounts to be kept by all retail licensees having more
15    than 4 employees, including but not limited to accounts of
16    earnings and expenses and any distribution, payment, or
17    other distribution of earnings or assets, and any other
18    forms, records and memoranda which in the judgment of the
19    commission may be necessary or appropriate to carry out any
20    of the provisions of this Act, including but not limited to
21    such forms, records and memoranda as will readily and
22    accurately disclose at all times the beneficial ownership
23    of such retail licensed business. The accounts, forms,
24    records and memoranda shall be available at all reasonable
25    times for inspection by authorized representatives of the
26    State commission or by any local liquor control

 

 

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1    commissioner or his or her authorized representative. The
2    commission, may, from time to time, alter, amend or repeal,
3    in whole or in part, any uniform system of accounts, or the
4    form and manner of keeping accounts.
5        (8) In the conduct of any hearing authorized to be held
6    by the commission, to appoint, at the commission's
7    discretion, hearing officers to conduct hearings involving
8    complex issues or issues that will require a protracted
9    period of time to resolve, to examine, or cause to be
10    examined, under oath, any licensee, and to examine or cause
11    to be examined the books and records of such licensee; to
12    hear testimony and take proof material for its information
13    in the discharge of its duties hereunder; to administer or
14    cause to be administered oaths; for any such purpose to
15    issue subpoena or subpoenas to require the attendance of
16    witnesses and the production of books, which shall be
17    effective in any part of this State, and to adopt rules to
18    implement its powers under this paragraph (8).
19        Any Circuit Court may by order duly entered, require
20    the attendance of witnesses and the production of relevant
21    books subpoenaed by the State commission and the court may
22    compel obedience to its order by proceedings for contempt.
23        (9) To investigate the administration of laws in
24    relation to alcoholic liquors in this and other states and
25    any foreign countries, and to recommend from time to time
26    to the Governor and through him or her to the legislature

 

 

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1    of this State, such amendments to this Act, if any, as it
2    may think desirable and as will serve to further the
3    general broad purposes contained in Section 1-2 hereof.
4        (10) To adopt such rules and regulations consistent
5    with the provisions of this Act which shall be necessary
6    for the control, sale or disposition of alcoholic liquor
7    damaged as a result of an accident, wreck, flood, fire or
8    other similar occurrence.
9        (11) To develop industry educational programs related
10    to responsible serving and selling, particularly in the
11    areas of overserving consumers and illegal underage
12    purchasing and consumption of alcoholic beverages.
13        (11.1) To license persons providing education and
14    training to alcohol beverage sellers and servers under the
15    Beverage Alcohol Sellers and Servers Education and
16    Training (BASSET) programs and to develop and administer a
17    public awareness program in Illinois to reduce or eliminate
18    the illegal purchase and consumption of alcoholic beverage
19    products by persons under the age of 21. Application for a
20    license shall be made on forms provided by the State
21    Commission.
22        (12) To develop and maintain a repository of license
23    and regulatory information.
24        (13) On or before January 15, 1994, the Commission
25    shall issue a written report to the Governor and General
26    Assembly that is to be based on a comprehensive study of

 

 

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1    the impact on and implications for the State of Illinois of
2    Section 1926 of the Federal ADAMHA Reorganization Act of
3    1992 (Public Law 102-321). This study shall address the
4    extent to which Illinois currently complies with the
5    provisions of P.L. 102-321 and the rules promulgated
6    pursuant thereto.
7        As part of its report, the Commission shall provide the
8    following essential information:
9            (i) the number of retail distributors of tobacco
10        products, by type and geographic area, in the State;
11            (ii) the number of reported citations and
12        successful convictions, categorized by type and
13        location of retail distributor, for violation of the
14        Prevention of Tobacco Use by Minors and Sale and
15        Distribution of Tobacco Products Act and the Smokeless
16        Tobacco Limitation Act;
17            (iii) the extent and nature of organized
18        educational and governmental activities that are
19        intended to promote, encourage or otherwise secure
20        compliance with any Illinois laws that prohibit the
21        sale or distribution of tobacco products to minors; and
22            (iv) the level of access and availability of
23        tobacco products to individuals under the age of 18.
24        To obtain the data necessary to comply with the
25    provisions of P.L. 102-321 and the requirements of this
26    report, the Commission shall conduct random, unannounced

 

 

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1    inspections of a geographically and scientifically
2    representative sample of the State's retail tobacco
3    distributors.
4        The Commission shall consult with the Department of
5    Public Health, the Department of Human Services, the
6    Illinois State Police and any other executive branch
7    agency, and private organizations that may have
8    information relevant to this report.
9        The Commission may contract with the Food and Drug
10    Administration of the U.S. Department of Health and Human
11    Services to conduct unannounced investigations of Illinois
12    tobacco vendors to determine compliance with federal laws
13    relating to the illegal sale of cigarettes and smokeless
14    tobacco products to persons under the age of 18.
15        (14) On or before April 30, 2008 and every 2 years
16    thereafter, the Commission shall present a written report
17    to the Governor and the General Assembly that shall be
18    based on a study of the impact of this amendatory Act of
19    the 95th General Assembly on the business of soliciting,
20    selling, and shipping wine from inside and outside of this
21    State directly to residents of this State. As part of its
22    report, the Commission shall provide all of the following
23    information:
24            (A) The amount of State excise and sales tax
25        revenues generated.
26            (B) The amount of licensing fees received.

 

 

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1            (C) The number of cases of wine shipped from inside
2        and outside of this State directly to residents of this
3        State.
4            (D) The number of alcohol compliance operations
5        conducted.
6            (E) The number of winery shipper's licenses
7        issued.
8            (F) The number of each of the following: reported
9        violations; cease and desist notices issued by the
10        Commission; notices of violations issued by the
11        Commission and to the Department of Revenue; and
12        notices and complaints of violations to law
13        enforcement officials, including, without limitation,
14        the Illinois Attorney General and the U.S. Department
15        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
16        (15) As a means to reduce the underage consumption of
17    alcoholic liquors, the Commission shall conduct alcohol
18    compliance operations to investigate whether businesses
19    that are soliciting, selling, and shipping wine from inside
20    or outside of this State directly to residents of this
21    State are licensed by this State or are selling or
22    attempting to sell wine to persons under 21 years of age in
23    violation of this Act.
24        (16) The Commission shall, in addition to notifying any
25    appropriate law enforcement agency, submit notices of
26    complaints or violations of Sections 6-29 and 6-29.1 by

 

 

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

 

 

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

 

 

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1        self-distribution exemption holder as confidential and
2        shall not release such information to any person.
3            (F) The Commission shall issue regulations
4        governing self-distribution exemptions consistent with
5        this Section and this Act.
6            (G) Nothing in this subsection (17) shall prohibit
7        a self-distribution exemption holder from entering
8        into or simultaneously having a distribution agreement
9        with a licensed Illinois distributor.
10            (H) It is the intent of this subsection (17) to
11        promote and continue orderly markets. The General
12        Assembly finds that in order to preserve Illinois'
13        regulatory distribution system it is necessary to
14        create an exception for smaller makers of wine as their
15        wines are frequently adjusted in varietals, mixes,
16        vintages, and taste to find and create market niches
17        sometimes too small for distributor or importing
18        distributor business strategies. Limited
19        self-distribution rights will afford and allow smaller
20        makers of wine access to the marketplace in order to
21        develop a customer base without impairing the
22        integrity of the 3-tier system.
23        (18)(A) A craft brewer licensee, who must also be
24    either a licensed brewer or licensed non-resident dealer
25    and annually manufacture less than 465,000 gallons of beer,
26    may make application to the Commission for a

 

 

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1    self-distribution exemption to allow the sale of not more
2    than 232,500 gallons of the exemption holder's beer to
3    retail licensees per year.
4            (B) In the application, which shall be sworn under
5        penalty of perjury, the craft brewer licensee shall
6        state (1) the date it was established; (2) its volume
7        of beer manufactured and sold for each year since its
8        establishment; (3) its efforts to establish
9        distributor relationships; (4) that a
10        self-distribution exemption is necessary to facilitate
11        the marketing of its beer; and (5) that it will comply
12        with the alcoholic beverage and revenue laws of the
13        United States, this State, and any other state where it
14        is licensed.
15            (C) Any application submitted shall be posted on
16        the Commission's website at least 45 days prior to
17        action by the Commission. The Commission shall approve
18        the application for a self-distribution exemption if
19        the craft brewer licensee: (1) is in compliance with
20        the State, revenue, and alcoholic beverage laws; (2) is
21        not a member of any affiliated group that manufacturers
22        more than 465,000 gallons of beer per annum or produces
23        any other alcoholic beverages; (3) shall not annually
24        manufacture for sale more than 465,000 gallons of beer;
25        and (4) shall not annually sell more than 232,500
26        gallons of its beer to retail licensees.

 

 

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1            (D) A self-distribution exemption holder shall
2        annually certify to the Commission its manufacture of
3        beer during the previous 12 months and its anticipated
4        manufacture and sales of beer for the next 12 months.
5        The Commission may fine, suspend, or revoke a
6        self-distribution exemption after a hearing if it
7        finds that the exemption holder has made a material
8        misrepresentation in its application, violated a
9        revenue or alcoholic beverage law of Illinois,
10        exceeded the manufacture of 465,000 gallons of beer in
11        any calendar year or became part of an affiliated group
12        manufacturing more than 465,000 gallons of beer or any
13        other alcoholic beverage.
14            (E) The Commission shall issue rules and
15        regulations governing self-distribution exemptions
16        consistent with this Act.
17            (F) Nothing in this paragraph (18) shall prohibit a
18        self-distribution exemption holder from entering into
19        or simultaneously having a distribution agreement with
20        a licensed Illinois importing distributor or a
21        distributor. If a self-distribution exemption holder
22        enters into a distribution agreement and has assigned
23        distribution rights to an importing distributor or
24        distributor, then the self-distribution exemption
25        holder's distribution rights in the assigned
26        territories shall cease in a reasonable time not to

 

 

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1        exceed 60 days.
2            (G) It is the intent of this paragraph (18) to
3        promote and continue orderly markets. The General
4        Assembly finds that in order to preserve Illinois'
5        regulatory distribution system it is necessary to
6        create an exception for smaller manufacturers in order
7        to afford and allow such smaller manufacturers of beer
8        access to the marketplace in order to develop a
9        customer base without impairing the integrity of the
10        3-tier system.
11    (b) On or before April 30, 1999, the Commission shall
12present a written report to the Governor and the General
13Assembly that shall be based on a study of the impact of this
14amendatory Act of 1998 on the business of soliciting, selling,
15and shipping alcoholic liquor from outside of this State
16directly to residents of this State.
17    As part of its report, the Commission shall provide the
18following information:
19        (i) the amount of State excise and sales tax revenues
20    generated as a result of this amendatory Act of 1998;
21        (ii) the amount of licensing fees received as a result
22    of this amendatory Act of 1998;
23        (iii) the number of reported violations, the number of
24    cease and desist notices issued by the Commission, the
25    number of notices of violations issued to the Department of
26    Revenue, and the number of notices and complaints of

 

 

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1    violations to law enforcement officials.
2(Source: P.A. 95-634, eff. 6-1-08; 96-179, eff. 8-10-09;
396-446, eff. 1-1-10; 96-1000, eff. 7-2-10.)
 
4    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
5    Sec. 5-1. Licenses issued by the Illinois Liquor Control
6Commission shall be of the following classes:
7    (a) Manufacturer's license - Class 1. Distiller, Class 2.
8Rectifier, Class 3. Brewer, Class 4. First Class Wine
9Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
10First Class Winemaker, Class 7. Second Class Winemaker, Class
118. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1210. Craft Brewer,
13    (b) Distributor's license,
14    (c) Importing Distributor's license,
15    (d) Retailer's license,
16    (e) Special Event Retailer's license (not-for-profit),
17    (f) Railroad license,
18    (g) Boat license,
19    (h) Non-Beverage User's license,
20    (i) Wine-maker's premises license,
21    (j) Airplane license,
22    (k) Foreign importer's license,
23    (l) Broker's license,
24    (m) Non-resident dealer's license,
25    (n) Brew Pub license,

 

 

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1    (o) Auction liquor license,
2    (p) Caterer retailer license,
3    (q) Special use permit license,
4    (r) Winery shipper's license.
5    No person, firm, partnership, corporation, or other legal
6business entity that is engaged in the manufacturing of wine
7may concurrently obtain and hold a wine-maker's license and a
8wine manufacturer's license.
9    (a) A manufacturer's license shall allow the manufacture,
10importation in bulk, storage, distribution and sale of
11alcoholic liquor to persons without the State, as may be
12permitted by law and to licensees in this State as follows:
13    Class 1. A Distiller may make sales and deliveries of
14alcoholic liquor to distillers, rectifiers, importing
15distributors, distributors and non-beverage users and to no
16other licensees.
17    Class 2. A Rectifier, who is not a distiller, as defined
18herein, may make sales and deliveries of alcoholic liquor to
19rectifiers, importing distributors, distributors, retailers
20and non-beverage users and to no other licensees.
21    Class 3. A Brewer may make sales and deliveries of beer to
22importing distributors and , distributors and may make sales as
23authorized under subsection (e) of Section 6-4 of this Act ,
24and to non-licensees, and to retailers provided the brewer
25obtains an importing distributor's license or distributor's
26license in accordance with the provisions of this Act.

 

 

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1    Class 4. A first class wine-manufacturer may make sales and
2deliveries of up to 50,000 gallons of wine to manufacturers,
3importing distributors and distributors, and to no other
4licensees.
5    Class 5. A second class Wine manufacturer may make sales
6and deliveries of more than 50,000 gallons of wine to
7manufacturers, importing distributors and distributors and to
8no other licensees.
9    Class 6. A first-class wine-maker's license shall allow the
10manufacture of up to 50,000 gallons of wine per year, and the
11storage and sale of such wine to distributors in the State and
12to persons without the State, as may be permitted by law. A
13person who, prior to the effective date of this amendatory Act
14of the 95th General Assembly, is a holder of a first-class
15wine-maker's license and annually produces more than 25,000
16gallons of its own wine and who distributes its wine to
17licensed retailers shall cease this practice on or before July
181, 2008 in compliance with this amendatory Act of the 95th
19General Assembly.
20    Class 7. A second-class wine-maker's license shall allow
21the manufacture of between 50,000 and 150,000 gallons of wine
22per year, and the storage and sale of such wine to distributors
23in this State and to persons without the State, as may be
24permitted by law. A person who, prior to the effective date of
25this amendatory Act of the 95th General Assembly, is a holder
26of a second-class wine-maker's license and annually produces

 

 

09700SB0754sam001- 21 -LRB097 04475 ASK 54390 a

1more than 25,000 gallons of its own wine and who distributes
2its wine to licensed retailers shall cease this practice on or
3before July 1, 2008 in compliance with this amendatory Act of
4the 95th General Assembly.
5    Class 8. A limited wine-manufacturer may make sales and
6deliveries not to exceed 40,000 gallons of wine per year to
7distributors, and to non-licensees in accordance with the
8provisions of this Act.
9    Class 9. A craft distiller license shall allow the
10manufacture of up to 5,000 gallons of spirits by distillation
11per year and the storage of such spirits. If a craft distiller
12licensee is not affiliated with any other manufacturer, then
13the craft distiller licensee may sell such spirits to
14distributors in this State and non-licensees to the extent
15permitted by any exemption approved by the Commission pursuant
16to Section 6-4 of this Act.
17    Any craft distiller licensed under this Act who on the
18effective date of this amendatory Act of the 96th General
19Assembly was licensed as a distiller and manufactured no more
20spirits than permitted by this Section shall not be required to
21pay the initial licensing fee.
22    Class 10. A craft brewer's license, which may only be
23issued to a licensed brewer or licensed non-resident dealer,
24shall allow the manufacture of up to 465,000 gallons of beer
25per year. A craft brewer licensee may make sales and deliveries
26to importing distributors and distributors and to retail

 

 

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1licensees in accordance with the conditions set forth in
2paragraph (18) of subsection (a) of Section 3-12 of this Act.
3    (a-1) A manufacturer which is licensed in this State to
4make sales or deliveries of alcoholic liquor and which enlists
5agents, representatives, or individuals acting on its behalf
6who contact licensed retailers on a regular and continual basis
7in this State must register those agents, representatives, or
8persons acting on its behalf with the State Commission.
9    Registration of agents, representatives, or persons acting
10on behalf of a manufacturer is fulfilled by submitting a form
11to the Commission. The form shall be developed by the
12Commission and shall include the name and address of the
13applicant, the name and address of the manufacturer he or she
14represents, the territory or areas assigned to sell to or
15discuss pricing terms of alcoholic liquor, and any other
16questions deemed appropriate and necessary. All statements in
17the forms required to be made by law or by rule shall be deemed
18material, and any person who knowingly misstates any material
19fact under oath in an application is guilty of a Class B
20misdemeanor. Fraud, misrepresentation, false statements,
21misleading statements, evasions, or suppression of material
22facts in the securing of a registration are grounds for
23suspension or revocation of the registration.
24    (b) A distributor's license shall allow the wholesale
25purchase and storage of alcoholic liquors and sale of alcoholic
26liquors to licensees in this State and to persons without the

 

 

09700SB0754sam001- 23 -LRB097 04475 ASK 54390 a

1State, as may be permitted by law.
2    (c) An importing distributor's license may be issued to and
3held by those only who are duly licensed distributors, upon the
4filing of an application by a duly licensed distributor, with
5the Commission and the Commission shall, without the payment of
6any fee, immediately issue such importing distributor's
7license to the applicant, which shall allow the importation of
8alcoholic liquor by the licensee into this State from any point
9in the United States outside this State, and the purchase of
10alcoholic liquor in barrels, casks or other bulk containers and
11the bottling of such alcoholic liquors before resale thereof,
12but all bottles or containers so filled shall be sealed,
13labeled, stamped and otherwise made to comply with all
14provisions, rules and regulations governing manufacturers in
15the preparation and bottling of alcoholic liquors. The
16importing distributor's license shall permit such licensee to
17purchase alcoholic liquor from Illinois licensed non-resident
18dealers and foreign importers only.
19    (d) A retailer's license shall allow the licensee to sell
20and offer for sale at retail, only in the premises specified in
21the license, alcoholic liquor for use or consumption, but not
22for resale in any form. Nothing in this amendatory Act of the
2395th General Assembly shall deny, limit, remove, or restrict
24the ability of a holder of a retailer's license to transfer,
25deliver, or ship alcoholic liquor to the purchaser for use or
26consumption subject to any applicable local law or ordinance.

 

 

09700SB0754sam001- 24 -LRB097 04475 ASK 54390 a

1Any retail license issued to a manufacturer shall only permit
2the manufacturer to sell beer at retail on the premises
3actually occupied by the manufacturer. For the purpose of
4further describing the type of business conducted at a retail
5licensed premises, a retailer's licensee may be designated by
6the State Commission as (i) an on premise consumption retailer,
7(ii) an off premise sale retailer, or (iii) a combined on
8premise consumption and off premise sale retailer.
9    Notwithstanding any other provision of this subsection
10(d), a retail licensee may sell alcoholic liquors to a special
11event retailer licensee for resale to the extent permitted
12under subsection (e).
13    (e) A special event retailer's license (not-for-profit)
14shall permit the licensee to purchase alcoholic liquors from an
15Illinois licensed distributor (unless the licensee purchases
16less than $500 of alcoholic liquors for the special event, in
17which case the licensee may purchase the alcoholic liquors from
18a licensed retailer) and shall allow the licensee to sell and
19offer for sale, at retail, alcoholic liquors for use or
20consumption, but not for resale in any form and only at the
21location and on the specific dates designated for the special
22event in the license. An applicant for a special event retailer
23license must (i) furnish with the application: (A) a resale
24number issued under Section 2c of the Retailers' Occupation Tax
25Act or evidence that the applicant is registered under Section
262a of the Retailers' Occupation Tax Act, (B) a current, valid

 

 

09700SB0754sam001- 25 -LRB097 04475 ASK 54390 a

1exemption identification number issued under Section 1g of the
2Retailers' Occupation Tax Act, and a certification to the
3Commission that the purchase of alcoholic liquors will be a
4tax-exempt purchase, or (C) a statement that the applicant is
5not registered under Section 2a of the Retailers' Occupation
6Tax Act, does not hold a resale number under Section 2c of the
7Retailers' Occupation Tax Act, and does not hold an exemption
8number under Section 1g of the Retailers' Occupation Tax Act,
9in which event the Commission shall set forth on the special
10event retailer's license a statement to that effect; (ii)
11submit with the application proof satisfactory to the State
12Commission that the applicant will provide dram shop liability
13insurance in the maximum limits; and (iii) show proof
14satisfactory to the State Commission that the applicant has
15obtained local authority approval.
16    (f) A railroad license shall permit the licensee to import
17alcoholic liquors into this State from any point in the United
18States outside this State and to store such alcoholic liquors
19in this State; to make wholesale purchases of alcoholic liquors
20directly from manufacturers, foreign importers, distributors
21and importing distributors from within or outside this State;
22and to store such alcoholic liquors in this State; provided
23that the above powers may be exercised only in connection with
24the importation, purchase or storage of alcoholic liquors to be
25sold or dispensed on a club, buffet, lounge or dining car
26operated on an electric, gas or steam railway in this State;

 

 

09700SB0754sam001- 26 -LRB097 04475 ASK 54390 a

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

 

 

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1Class 1, not to exceed ......................... 500 gallons
2Class 2, not to exceed ....................... 1,000 gallons
3Class 3, not to exceed ....................... 5,000 gallons
4Class 4, not to exceed ...................... 10,000 gallons
5Class 5, not to exceed ....................... 50,000 gallons
6    (i) A wine-maker's premises license shall allow a licensee
7that concurrently holds a first-class wine-maker's license to
8sell and offer for sale at retail in the premises specified in
9such license not more than 50,000 gallons of the first-class
10wine-maker's wine that is made at the first-class wine-maker's
11licensed premises per year for use or consumption, but not for
12resale in any form. A wine-maker's premises license shall allow
13a licensee who concurrently holds a second-class wine-maker's
14license to sell and offer for sale at retail in the premises
15specified in such license up to 100,000 gallons of the
16second-class wine-maker's wine that is made at the second-class
17wine-maker's licensed premises per year for use or consumption
18but not for resale in any form. A wine-maker's premises license
19shall allow a licensee that concurrently holds a first-class
20wine-maker's license or a second-class wine-maker's license to
21sell and offer for sale at retail at the premises specified in
22the wine-maker's premises license, for use or consumption but
23not for resale in any form, any beer, wine, and spirits
24purchased from a licensed distributor. Upon approval from the
25State Commission, a wine-maker's premises license shall allow
26the licensee to sell and offer for sale at (i) the wine-maker's

 

 

09700SB0754sam001- 28 -LRB097 04475 ASK 54390 a

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

 

 

09700SB0754sam001- 29 -LRB097 04475 ASK 54390 a

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

 

 

09700SB0754sam001- 30 -LRB097 04475 ASK 54390 a

1    No holder of a retailer's license issued by the Illinois
2Liquor Control Commission shall purchase or receive any
3alcoholic liquor, the order for which was solicited or offered
4for sale to such retailer by a broker unless the broker is the
5holder of a valid broker's license.
6    The broker shall, upon the acceptance by a retailer of the
7broker's solicitation of an order or offer to sell or supply or
8deliver or have delivered alcoholic liquors, promptly forward
9to the Illinois Liquor Control Commission a notification of
10said transaction in such form as the Commission may by
11regulations prescribe.
12    (ii) A broker's license shall be required of a person
13within this State, other than a retail licensee, who, for a fee
14or commission, promotes, solicits, or accepts orders for
15alcoholic liquor, for use or consumption and not for resale, to
16be shipped from this State and delivered to residents outside
17of this State by an express company, common carrier, or
18contract carrier. This Section does not apply to any person who
19promotes, solicits, or accepts orders for wine as specifically
20authorized in Section 6-29 of this Act.
21    A broker's license under this subsection (l) shall not
22entitle the holder to buy or sell any alcoholic liquors for his
23own account or to take or deliver title to such alcoholic
24liquors.
25    This subsection (l) shall not apply to distributors,
26employees of distributors, or employees of a manufacturer who

 

 

09700SB0754sam001- 31 -LRB097 04475 ASK 54390 a

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

 

 

09700SB0754sam001- 32 -LRB097 04475 ASK 54390 a

1another brew pub licensed premises that is substantially owned
2and operated by the same licensee to importing distributors,
3distributors, and to non-licensees for use and consumption,
4(iii) to store the beer upon the premises, and (iv) to sell and
5offer for sale at retail from the licensed premises, provided
6that a brew pub licensee shall not sell for off-premises
7consumption more than 50,000 gallons per year. A person who
8holds a brew pub license may simultaneously hold a craft brewer
9license if he or she otherwise qualifies for the craft brewer
10license and the craft brewer license is for a location separate
11from the brew pub's licensed premises. A brew pub license shall
12permit a person who has received prior approval from the
13Commission to annually transfer no more than a total of 50,000
14gallons of beer manufactured on premises to all other licensed
15brew pubs that are substantially owned and operated by the same
16person.
17    (o) A caterer retailer license shall allow the holder to
18serve alcoholic liquors as an incidental part of a food service
19that serves prepared meals which excludes the serving of snacks
20as the primary meal, either on or off-site whether licensed or
21unlicensed.
22    (p) An auction liquor license shall allow the licensee to
23sell and offer for sale at auction wine and spirits for use or
24consumption, or for resale by an Illinois liquor licensee in
25accordance with provisions of this Act. An auction liquor
26license will be issued to a person and it will permit the

 

 

09700SB0754sam001- 33 -LRB097 04475 ASK 54390 a

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

 

 

09700SB0754sam001- 34 -LRB097 04475 ASK 54390 a

1true copy of its current license in any state in which it is
2licensed as a manufacturer of wine. An applicant for a winery
3shipper's license must also complete an application form that
4provides any other information the Commission deems necessary.
5The application form shall include an acknowledgement
6consenting to the jurisdiction of the Commission, the Illinois
7Department of Revenue, and the courts of this State concerning
8the enforcement of this Act and any related laws, rules, and
9regulations, including authorizing the Department of Revenue
10and the Commission to conduct audits for the purpose of
11ensuring compliance with this amendatory Act.
12    A winery shipper licensee must pay to the Department of
13Revenue the State liquor gallonage tax under Section 8-1 for
14all wine that is sold by the licensee and shipped to a person
15in this State. For the purposes of Section 8-1, a winery
16shipper licensee shall be taxed in the same manner as a
17manufacturer of wine. A licensee who is not otherwise required
18to register under the Retailers' Occupation Tax Act must
19register under the Use Tax Act to collect and remit use tax to
20the Department of Revenue for all gallons of wine that are sold
21by the licensee and shipped to persons in this State. If a
22licensee fails to remit the tax imposed under this Act in
23accordance with the provisions of Article VIII of this Act, the
24winery shipper's license shall be revoked in accordance with
25the provisions of Article VII of this Act. If a licensee fails
26to properly register and remit tax under the Use Tax Act or the

 

 

09700SB0754sam001- 35 -LRB097 04475 ASK 54390 a

1Retailers' Occupation Tax Act for all wine that is sold by the
2winery shipper and shipped to persons in this State, the winery
3shipper's license shall be revoked in accordance with the
4provisions of Article VII of this Act.
5    A winery shipper licensee must collect, maintain, and
6submit to the Commission on a semi-annual basis the total
7number of cases per resident of wine shipped to residents of
8this State. A winery shipper licensed under this subsection (r)
9must comply with the requirements of Section 6-29 of this
10amendatory Act.
11(Source: P.A. 95-331, eff. 8-21-07; 95-634, eff. 6-1-08;
1295-769, eff. 7-29-08; 96-1367, eff. 7-28-10.)
 
13    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
14    Sec. 5-3. License fees. Except as otherwise provided
15herein, at the time application is made to the State Commission
16for a license of any class, the applicant shall pay to the
17State Commission the fee hereinafter provided for the kind of
18license applied for.
19    The fee for licenses issued by the State Commission shall
20be as follows:
21    For a manufacturer's license:
22    Class 1. Distiller .............................$3,600
23    Class 2. Rectifier .............................3,600
24    Class 3. Brewer ................................900
25    Class 4. First-class Wine Manufacturer .........600

 

 

09700SB0754sam001- 36 -LRB097 04475 ASK 54390 a

1    Class 5. Second-class
2        Wine Manufacturer ..........................1,200
3    Class 6. First-class wine-maker ................600
4    Class 7. Second-class wine-maker ...............1200
5    Class 8. Limited Wine Manufacturer..............120
6    Class 9. Craft Distiller........................ 1,800
7    Class 10. Craft Brewer..........................25
8    For a Brew Pub License .........................1,050
9    For a caterer retailer's license................200
10    For a foreign importer's license ...............25
11    For an importing distributor's license .........25
12    For a distributor's license ....................270
13    For a non-resident dealer's license
14        (500,000 gallons or over) ..................270
15    For a non-resident dealer's license
16        (under 500,000 gallons) ....................90
17    For a wine-maker's premises license ............100
18    For a winery shipper's license
19        (under 250,000 gallons).....................150
20    For a winery shipper's license
21        (250,000 or over, but under 500,000 gallons).500
22    For a winery shipper's license
23        (500,000 gallons or over)...................1,000
24    For a wine-maker's premises license,
25        second location ............................350
26    For a wine-maker's premises license,

 

 

09700SB0754sam001- 37 -LRB097 04475 ASK 54390 a

1        third location .............................350
2    For a retailer's license .......................500
3    For a special event retailer's license,
4        (not-for-profit) ...........................25
5    For a special use permit license,
6        one day only ...............................50
7        2 days or more .............................100
8    For a railroad license .........................60
9    For a boat license .............................180
10    For an airplane license, times the
11        licensee's maximum number of aircraft
12        in flight, serving liquor over the
13        State at any given time, which either
14        originate, terminate, or make
15        an intermediate stop in the State ..........60
16    For a non-beverage user's license:
17        Class 1 ....................................24
18        Class 2 ....................................60
19        Class 3 ....................................120
20        Class 4 ....................................240
21        Class 5 ....................................600
22    For a broker's license .........................600
23    For an auction liquor license ..................50
24    Fees collected under this Section shall be paid into the
25Dram Shop Fund. On and after July 1, 2003, of the funds
26received for a retailer's license, in addition to the first

 

 

09700SB0754sam001- 38 -LRB097 04475 ASK 54390 a

1$175, an additional $75 shall be paid into the Dram Shop Fund,
2and $250 shall be paid into the General Revenue Fund. Beginning
3June 30, 1990 and on June 30 of each subsequent year through
4June 29, 2003, any balance over $5,000,000 remaining in the
5Dram Shop Fund shall be credited to State liquor licensees and
6applied against their fees for State liquor licenses for the
7following year. The amount credited to each licensee shall be a
8proportion of the balance in the Dram Fund that is the same as
9the proportion of the license fee paid by the licensee under
10this Section for the period in which the balance was
11accumulated to the aggregate fees paid by all licensees during
12that period.
13    No fee shall be paid for licenses issued by the State
14Commission to the following non-beverage users:
15        (a) Hospitals, sanitariums, or clinics when their use
16    of alcoholic liquor is exclusively medicinal, mechanical
17    or scientific.
18        (b) Universities, colleges of learning or schools when
19    their use of alcoholic liquor is exclusively medicinal,
20    mechanical or scientific.
21        (c) Laboratories when their use is exclusively for the
22    purpose of scientific research.
23(Source: P.A. 95-634, eff. 6-1-08; 96-1367, eff. 7-28-10.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.".