Illinois General Assembly - Full Text of SB2989
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Full Text of SB2989  99th General Assembly

SB2989ham001 99TH GENERAL ASSEMBLY

Rep. Jay Hoffman

Filed: 5/24/2016

 

 


 

 


 
09900SB2989ham001LRB099 20595 RPS 48938 a

1
AMENDMENT TO SENATE BILL 2989

2    AMENDMENT NO. ______. Amend Senate Bill 2989 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, 5-3, 6-29.1, and 10-1 as follows:
 
6    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
7    Sec. 5-1. Licenses issued by the Illinois Liquor Control
8Commission shall be of the following classes:
9    (a) Manufacturer's license - Class 1. Distiller, Class 2.
10Rectifier, Class 3. Brewer, Class 4. First Class Wine
11Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
12First Class Winemaker, Class 7. Second Class Winemaker, Class
138. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1410. Class 1 Brewer, Class 11. Class 2 Brewer,
15    (b) Distributor's license,
16    (c) Importing Distributor's license,

 

 

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

 

 

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

 

 

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1Act 95-634 this amendatory Act of the 95th General Assembly.
2    Class 7. A second-class wine-maker's license shall allow
3the manufacture of between 50,000 and 150,000 gallons of wine
4per year, and the storage and sale of such wine to distributors
5in this State and to persons without the State, as may be
6permitted by law. A person who, prior to June 1, 2008 (the
7effective date of Public Act 95-634) this amendatory Act of the
895th General Assembly, is a holder of a second-class
9wine-maker's license and annually produces more than 25,000
10gallons of its own wine and who distributes its wine to
11licensed retailers shall cease this practice on or before July
121, 2008 in compliance with Public Act 95-634 this amendatory
13Act of the 95th General Assembly.
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 30,000 gallons of spirits by distillation
20for one year after March 1, 2013 (the effective date of Public
21Act 97-1166) this amendatory Act of the 97th General Assembly
22and up to 35,000 gallons of spirits by distillation per year
23thereafter and the storage of such spirits. If a craft
24distiller licensee is not affiliated with any other
25manufacturer, then the craft distiller licensee may sell such
26spirits to distributors in this State and up to 2,500 gallons

 

 

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1of such spirits to non-licensees to the extent permitted by any
2exemption approved by the Commission pursuant to Section 6-4 of
3this Act.
4    Any craft distiller licensed under this Act who on July 28,
52010 (the effective date of Public Act 96-1367) this amendatory
6Act of the 96th General Assembly was licensed as a distiller
7and manufactured no more spirits than permitted by this Section
8shall not be required to pay the initial licensing fee.
9    Class 10. A class 1 brewer license, which may only be
10issued to a licensed brewer or licensed non-resident dealer,
11shall allow the manufacture of up to 930,000 gallons of beer
12per year provided that the class 1 brewer licensee does not
13manufacture more than a combined 930,000 gallons of beer per
14year and is not a member of or affiliated with, directly or
15indirectly, a manufacturer that produces more than 930,000
16gallons of beer per year or any other alcoholic liquor. A class
171 brewer licensee may make sales and deliveries to importing
18distributors and distributors and to retail licensees in
19accordance with the conditions set forth in paragraph (18) of
20subsection (a) of Section 3-12 of this Act.
21    Class 11. A class 2 brewer license, which may only be
22issued to a licensed brewer or licensed non-resident dealer,
23shall allow the manufacture of up to 3,720,000 gallons of beer
24per year provided that the class 2 brewer licensee does not
25manufacture more than a combined 3,720,000 gallons of beer per
26year and is not a member of or affiliated with, directly or

 

 

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1indirectly, a manufacturer that produces more than 3,720,000
2gallons of beer per year or any other alcoholic liquor. A class
32 brewer licensee may make sales and deliveries to importing
4distributors and distributors, but shall not make sales or
5deliveries to any other licensee. If the State Commission
6provides prior approval, a class 2 brewer licensee may annually
7transfer up to 3,720,000 gallons of beer manufactured by that
8class 2 brewer licensee to the premises of a licensed class 2
9brewer wholly owned and operated by the same licensee.
10    (a-1) A manufacturer which is licensed in this State to
11make sales or deliveries of alcoholic liquor to licensed
12distributors or importing distributors and which enlists
13agents, representatives, or individuals acting on its behalf
14who contact licensed retailers on a regular and continual basis
15in this State must register those agents, representatives, or
16persons acting on its behalf with the State Commission.
17    Registration of agents, representatives, or persons acting
18on behalf of a manufacturer is fulfilled by submitting a form
19to the Commission. The form shall be developed by the
20Commission and shall include the name and address of the
21applicant, the name and address of the manufacturer he or she
22represents, the territory or areas assigned to sell to or
23discuss pricing terms of alcoholic liquor, and any other
24questions deemed appropriate and necessary. All statements in
25the forms required to be made by law or by rule shall be deemed
26material, and any person who knowingly misstates any material

 

 

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1fact under oath in an application is guilty of a Class B
2misdemeanor. Fraud, misrepresentation, false statements,
3misleading statements, evasions, or suppression of material
4facts in the securing of a registration are grounds for
5suspension or revocation of the registration. The State
6Commission shall post a list of registered agents on the
7Commission's website.
8    (b) A distributor's license shall allow the wholesale
9purchase and storage of alcoholic liquors and sale of alcoholic
10liquors to licensees in this State and to persons without the
11State, as may be permitted by law.
12    (c) An importing distributor's license may be issued to and
13held by those only who are duly licensed distributors, upon the
14filing of an application by a duly licensed distributor, with
15the Commission and the Commission shall, without the payment of
16any fee, immediately issue such importing distributor's
17license to the applicant, which shall allow the importation of
18alcoholic liquor by the licensee into this State from any point
19in the United States outside this State, and the purchase of
20alcoholic liquor in barrels, casks or other bulk containers and
21the bottling of such alcoholic liquors before resale thereof,
22but all bottles or containers so filled shall be sealed,
23labeled, stamped and otherwise made to comply with all
24provisions, rules and regulations governing manufacturers in
25the preparation and bottling of alcoholic liquors. The
26importing distributor's license shall permit such licensee to

 

 

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1purchase alcoholic liquor from Illinois licensed non-resident
2dealers and foreign importers only.
3    (d) A retailer's license shall allow the licensee to sell
4and offer for sale at retail, only in the premises specified in
5the license, alcoholic liquor for use or consumption, but not
6for resale in any form. Nothing in Public Act 95-634 this
7amendatory Act of the 95th General Assembly shall deny, limit,
8remove, or restrict the ability of a holder of a retailer's
9license to transfer, deliver, or ship alcoholic liquor to the
10purchaser for use or consumption subject to any applicable
11local law or ordinance. Any retail license issued to a
12manufacturer shall only permit the manufacturer to sell beer at
13retail on the premises actually occupied by the manufacturer.
14For the purpose of further describing the type of business
15conducted at a retail licensed premises, a retailer's licensee
16may be designated by the State Commission as (i) an on premise
17consumption retailer, (ii) an off premise sale retailer, or
18(iii) a combined on premise consumption and off premise sale
19retailer.
20    Notwithstanding any other provision of this subsection
21(d), a retail licensee may sell alcoholic liquors to a special
22event retailer licensee for resale to the extent permitted
23under subsection (e).
24    (e) A special event retailer's license (not-for-profit)
25shall permit the licensee to purchase alcoholic liquors from an
26Illinois licensed distributor (unless the licensee purchases

 

 

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1less than $500 of alcoholic liquors for the special event, in
2which case the licensee may purchase the alcoholic liquors from
3a licensed retailer) and shall allow the licensee to sell and
4offer for sale, at retail, alcoholic liquors for use or
5consumption, but not for resale in any form and only at the
6location and on the specific dates designated for the special
7event in the license. An applicant for a special event retailer
8license must (i) furnish with the application: (A) a resale
9number issued under Section 2c of the Retailers' Occupation Tax
10Act or evidence that the applicant is registered under Section
112a of the Retailers' Occupation Tax Act, (B) a current, valid
12exemption identification number issued under Section 1g of the
13Retailers' Occupation Tax Act, and a certification to the
14Commission that the purchase of alcoholic liquors will be a
15tax-exempt purchase, or (C) a statement that the applicant is
16not registered under Section 2a of the Retailers' Occupation
17Tax Act, does not hold a resale number under Section 2c of the
18Retailers' Occupation Tax Act, and does not hold an exemption
19number under Section 1g of the Retailers' Occupation Tax Act,
20in which event the Commission shall set forth on the special
21event retailer's license a statement to that effect; (ii)
22submit with the application proof satisfactory to the State
23Commission that the applicant will provide dram shop liability
24insurance in the maximum limits; and (iii) show proof
25satisfactory to the State Commission that the applicant has
26obtained local authority approval.

 

 

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1    (f) A railroad license shall permit the licensee to import
2alcoholic liquors into this State from any point in the United
3States outside this State and to store such alcoholic liquors
4in this State; to make wholesale purchases of alcoholic liquors
5directly from manufacturers, foreign importers, distributors
6and importing distributors from within or outside this State;
7and to store such alcoholic liquors in this State; provided
8that the above powers may be exercised only in connection with
9the importation, purchase or storage of alcoholic liquors to be
10sold or dispensed on a club, buffet, lounge or dining car
11operated on an electric, gas or steam railway in this State;
12and provided further, that railroad licensees exercising the
13above powers shall be subject to all provisions of Article VIII
14of this Act as applied to importing distributors. A railroad
15license shall also permit the licensee to sell or dispense
16alcoholic liquors on any club, buffet, lounge or dining car
17operated on an electric, gas or steam railway regularly
18operated by a common carrier in this State, but shall not
19permit the sale for resale of any alcoholic liquors to any
20licensee within this State. A license shall be obtained for
21each car in which such sales are made.
22    (g) A boat license shall allow the sale of alcoholic liquor
23in individual drinks, on any passenger boat regularly operated
24as a common carrier on navigable waters in this State or on any
25riverboat operated under the Riverboat Gambling Act, which boat
26or riverboat maintains a public dining room or restaurant

 

 

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1thereon.
2    (h) A non-beverage user's license shall allow the licensee
3to purchase alcoholic liquor from a licensed manufacturer or
4importing distributor, without the imposition of any tax upon
5the business of such licensed manufacturer or importing
6distributor as to such alcoholic liquor to be used by such
7licensee solely for the non-beverage purposes set forth in
8subsection (a) of Section 8-1 of this Act, and such licenses
9shall be divided and classified and shall permit the purchase,
10possession and use of limited and stated quantities of
11alcoholic liquor as follows:
12Class 1, not to exceed ......................... 500 gallons
13Class 2, not to exceed ....................... 1,000 gallons
14Class 3, not to exceed ....................... 5,000 gallons
15Class 4, not to exceed ...................... 10,000 gallons
16Class 5, not to exceed ....................... 50,000 gallons
17    (i) A wine-maker's premises license shall allow a licensee
18that concurrently holds a first-class wine-maker's license to
19sell and offer for sale at retail in the premises specified in
20such license not more than 50,000 gallons of the first-class
21wine-maker's wine that is made at the first-class wine-maker's
22licensed premises per year for use or consumption, but not for
23resale in any form. A wine-maker's premises license shall allow
24a licensee who concurrently holds a second-class wine-maker's
25license to sell and offer for sale at retail in the premises
26specified in such license up to 100,000 gallons of the

 

 

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

 

 

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1the importation, purchase or storage of alcoholic liquors to be
2sold or dispensed on an airplane; and provided further, that
3airplane licensees exercising the above powers shall be subject
4to all provisions of Article VIII of this Act as applied to
5importing distributors. An airplane licensee shall also permit
6the sale or dispensing of alcoholic liquors on any passenger
7airplane regularly operated by a common carrier in this State,
8but shall not permit the sale for resale of any alcoholic
9liquors to any licensee within this State. A single airplane
10license shall be required of an airline company if liquor
11service is provided on board aircraft in this State. The annual
12fee for such license shall be as determined in Section 5-3.
13    (k) A foreign importer's license shall permit such licensee
14to purchase alcoholic liquor from Illinois licensed
15non-resident dealers only, and to import alcoholic liquor other
16than in bulk from any point outside the United States and to
17sell such alcoholic liquor to Illinois licensed importing
18distributors and to no one else in Illinois; provided that (i)
19the foreign importer registers with the State Commission every
20brand of alcoholic liquor that it proposes to sell to Illinois
21licensees during the license period, (ii) the foreign importer
22complies with all of the provisions of Section 6-9 of this Act
23with respect to registration of such Illinois licensees as may
24be granted the right to sell such brands at wholesale, and
25(iii) the foreign importer complies with the provisions of
26Sections 6-5 and 6-6 of this Act to the same extent that these

 

 

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1provisions apply to manufacturers.
2    (l) (i) A broker's license shall be required of all persons
3who solicit orders for, offer to sell or offer to supply
4alcoholic liquor to retailers in the State of Illinois, or who
5offer to retailers to ship or cause to be shipped or to make
6contact with distillers, rectifiers, brewers or manufacturers
7or any other party within or without the State of Illinois in
8order that alcoholic liquors be shipped to a distributor,
9importing distributor or foreign importer, whether such
10solicitation or offer is consummated within or without the
11State of Illinois.
12    No holder of a retailer's license issued by the Illinois
13Liquor Control Commission shall purchase or receive any
14alcoholic liquor, the order for which was solicited or offered
15for sale to such retailer by a broker unless the broker is the
16holder of a valid broker's license.
17    The broker shall, upon the acceptance by a retailer of the
18broker's solicitation of an order or offer to sell or supply or
19deliver or have delivered alcoholic liquors, promptly forward
20to the Illinois Liquor Control Commission a notification of
21said transaction in such form as the Commission may by
22regulations prescribe.
23    (ii) A broker's license shall be required of a person
24within this State, other than a retail licensee, who, for a fee
25or commission, promotes, solicits, or accepts orders for
26alcoholic liquor, for use or consumption and not for resale, to

 

 

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1be shipped from this State and delivered to residents outside
2of this State by an express company, common carrier, or
3contract carrier. This Section does not apply to any person who
4promotes, solicits, or accepts orders for wine as specifically
5authorized in Section 6-29 of this Act.
6    A broker's license under this subsection (l) shall not
7entitle the holder to buy or sell any alcoholic liquors for his
8own account or to take or deliver title to such alcoholic
9liquors.
10    This subsection (l) shall not apply to distributors,
11employees of distributors, or employees of a manufacturer who
12has registered the trademark, brand or name of the alcoholic
13liquor pursuant to Section 6-9 of this Act, and who regularly
14sells such alcoholic liquor in the State of Illinois only to
15its registrants thereunder.
16    Any agent, representative, or person subject to
17registration pursuant to subsection (a-1) of this Section shall
18not be eligible to receive a broker's license.
19    (m) A non-resident dealer's license shall permit such
20licensee to ship into and warehouse alcoholic liquor into this
21State from any point outside of this State, and to sell such
22alcoholic liquor to Illinois licensed foreign importers and
23importing distributors and to no one else in this State;
24provided that (i) said non-resident dealer shall register with
25the Illinois Liquor Control Commission each and every brand of
26alcoholic liquor which it proposes to sell to Illinois

 

 

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1licensees during the license period, (ii) it shall comply with
2all of the provisions of Section 6-9 hereof with respect to
3registration of such Illinois licensees as may be granted the
4right to sell such brands at wholesale, and (iii) the
5non-resident dealer shall comply with the provisions of
6Sections 6-5 and 6-6 of this Act to the same extent that these
7provisions apply to manufacturers.
8    (n) A brew pub license shall allow the licensee to only (i)
9manufacture up to 155,000 gallons of beer per year only on the
10premises specified in the license, (ii) make sales of the beer
11manufactured on the premises or, with the approval of the
12Commission, beer manufactured on another brew pub licensed
13premises that is wholly owned and operated by the same licensee
14to importing distributors, distributors, and to non-licensees
15for use and consumption, (iii) store the beer upon the
16premises, (iv) sell and offer for sale at retail from the
17licensed premises for off-premises consumption no more than
18155,000 gallons per year so long as such sales are only made
19in-person, (v) sell and offer for sale at retail for use and
20consumption on the premises specified in the license any form
21of alcoholic liquor purchased from a licensed distributor or
22importing distributor, and (vi) with the prior approval of the
23Commission, annually transfer no more than 155,000 gallons of
24beer manufactured on the premises to a licensed brew pub wholly
25owned and operated by the same licensee.
26    A brew pub licensee shall not under any circumstance sell

 

 

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1or offer for sale beer manufactured by the brew pub licensee to
2retail licensees.
3    A person who holds a class 2 brewer license may
4simultaneously hold a brew pub license if the class 2 brewer
5(i) does not, under any circumstance, sell or offer for sale
6beer manufactured by the class 2 brewer to retail licensees;
7(ii) does not hold more than 3 brew pub licenses in this State;
8(iii) does not manufacture more than a combined 3,720,000
9gallons of beer per year, including the beer manufactured at
10the brew pub; and (iv) is not a member of or affiliated with,
11directly or indirectly, a manufacturer that produces more than
123,720,000 gallons of beer per year or any other alcoholic
13liquor.
14    Notwithstanding any other provision of this Act, a licensed
15brewer, class 2 brewer, or non-resident dealer who before July
161, 2015 manufactured less than than 3,720,000 gallons of beer
17per year and held a brew pub license on or before July 1, 2015
18may (i) continue to qualify for and hold that brew pub license
19for the licensed premises and (ii) manufacture more than
203,720,000 gallons of beer per year and continue to qualify for
21and hold that brew pub license if that brewer, class 2 brewer,
22or non-resident dealer does not simultaneously hold a class 1
23brewer license and is not a member of or affiliated with,
24directly or indirectly, a manufacturer that produces more than
253,720,000 gallons of beer per year or that produces any other
26alcoholic liquor.

 

 

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

 

 

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

 

 

09900SB2989ham001- 20 -LRB099 20595 RPS 48938 a

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

 

 

09900SB2989ham001- 21 -LRB099 20595 RPS 48938 a

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

 

 

09900SB2989ham001- 22 -LRB099 20595 RPS 48938 a

1winery shipper and shipped to persons in this State, the winery
2shipper's license shall be revoked in accordance with the
3provisions of Article VII of this Act.
4    A winery shipper licensee must collect, maintain, and
5submit to the Commission on a semi-annual basis the total
6number of cases per resident of wine shipped to residents of
7this State. A winery shipper licensed under this subsection (r)
8must comply with the requirements of Section 6-29 of this
9amendatory Act.
10    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
11Section 3-12, the State Commission may receive, respond to, and
12investigate any complaint and impose any of the remedies
13specified in paragraph (1) of subsection (a) of Section 3-12.
14(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
1598-756, eff. 7-16-14; 99-448, eff. 8-24-15; revised 10-27-15.)
 
16    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
17    Sec. 5-3. License fees. Except as otherwise provided
18herein, at the time application is made to the State Commission
19for a license of any class, the applicant shall pay to the
20State Commission the fee hereinafter provided for the kind of
21license applied for.
22    The fee for licenses issued by the State Commission shall
23be as follows:
24    For a manufacturer's license:
25OnlineInitial

 

 

09900SB2989ham001- 23 -LRB099 20595 RPS 48938 a

1renewallicense
2 or
3 non-online
4 renewal
5
6    Class 1. Distiller .................$4,000$5,000 $3,600
7    Class 2. Rectifier .................4,000 5,000 3,600
8    Class 3. Brewer ....................1,200 1,500 900
9    Class 4. First-class Wine
10        Manufacturer ...................750900 600
11    Class 5. Second-class
12        Wine Manufacturer ..............1,500 1,750 1,200
13    Class 6. First-class wine-maker ....750 900 600
14    Class 7. Second-class wine-maker ...1,500 1,750 1200
15    Class 8. Limited Wine Manufacturer..250 350 120
16    Class 9. Craft Distiller............ 2,000 2,500 1,800
17    Class 10. Class 1 Brewer............50 75 25
18    Class 11. Class 2 Brewer............ 75 100 25
19    For a Brew Pub License..............1,2001,500 1,050
20    For a caterer retailer's license....350 500 200
21    For a foreign importer's license ...25 25
22    For an importing distributor's
23        license.........................2525
24    For a distributor's license
25        (11,250,000 gallons
26        or over)........................1,4502,200

 

 

09900SB2989ham001- 24 -LRB099 20595 RPS 48938 a

1    For a distributor's license
2        (over 4,500,000 gallons,
3        but under 11,250,000 gallons)... 9501,450
4    For a distributor's license
5        (4,500,000 gallons or under.....300450
6    For a distributor's license ......... 270
7    For a non-resident dealer's license
8        (500,000 gallons or over) ......1,200 1,500 270
9    For a non-resident dealer's license
10        (under 500,000 gallons) ........250 350 90
11    For a wine-maker's premises license .250 500 100
12    For a winery shipper's license
13        (under 250,000 gallons).........200 350 150
14    For a winery shipper's license
15        (250,000 or over, but
16        under 500,000 gallons)..........7501,000 500
17    For a winery shipper's license
18        (500,000 gallons or over).......1,200 1,500 1,000
19    For a wine-maker's premises license,
20        second location ................500 1,000 350
21    For a wine-maker's premises license,
22        third location .................5001,000 350
23    For a retailer's license ...........600 750 500
24    For a special event retailer's
25        license, (not-for-profit) ......25 25
26    For a special use permit license,

 

 

09900SB2989ham001- 25 -LRB099 20595 RPS 48938 a

1        one day only ...................100 150 50
2        2 days or more .................150 250 100
3    For a railroad license .............100 150 60
4    For a boat license .................500 1,000 180
5    For an airplane license, times the
6        licensee's maximum number of
7        aircraft in flight, serving
8        liquor over the State at any
9        given time, which either
10        originate, terminate, or make
11        an intermediate stop in
12        the State.......................100150 60
13    For a non-beverage user's license:
14        Class 1 ........................2424
15        Class 2 ........................6060
16        Class 3 ........................120120
17        Class 4 ........................240240
18        Class 5 ........................600600
19    For a broker's license .............750 1,000 600
20    For an auction liquor license ......100 150 50
21    For a homebrewer special
22        event permit....................2525
23    For a BASSET trainer license........ 300 350
24    For a tasting representative
25        license.........................200300
26    Fees collected under this Section shall be paid into the

 

 

09900SB2989ham001- 26 -LRB099 20595 RPS 48938 a

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

 

 

09900SB2989ham001- 27 -LRB099 20595 RPS 48938 a

1        (c) Laboratories when their use is exclusively for the
2    purpose of scientific research.
3(Source: P.A. 98-55, eff. 7-5-13; 99-448, eff. 8-24-15.)
 
4    (235 ILCS 5/6-29.1)
5    Sec. 6-29.1. Direct shipments of alcoholic liquor.
6    (a) The General Assembly makes the following findings:
7        (1) The General Assembly of Illinois, having reviewed
8    this Act in light of the United States Supreme Court's 2005
9    decision in Granholm v. Heald, has determined to conform
10    that law to the constitutional principles enunciated by the
11    Court in a manner that best preserves the temperance,
12    revenue, and orderly distribution values of this Act.
13        (2) Minimizing automobile accidents and fatalities,
14    domestic violence, health problems, loss of productivity,
15    unemployment, and other social problems associated with
16    dependency and improvident use of alcoholic beverages
17    remains the policy of Illinois.
18        (3) To the maximum extent constitutionally feasible,
19    Illinois desires to collect sufficient revenue from excise
20    and use taxes on alcoholic beverages for the purpose of
21    responding to such social problems.
22        (4) Combined with family education and individual
23    discipline, retail validation of age, and assessment of the
24    capacity of the consumer remains the best pre-sale social
25    protection against the problems associated with the abuse

 

 

09900SB2989ham001- 28 -LRB099 20595 RPS 48938 a

1    of alcoholic liquor.
2        (5) Therefore, the paramount purpose of this
3    amendatory Act is to continue to carefully limit direct
4    shipment sales of wine produced by makers of wine and to
5    continue to prohibit such direct shipment sales for spirits
6    and beer.
7    For these reasons, the Commission shall establish a system
8to notify the out-of-state trade of this prohibition and to
9detect violations. The Commission shall request the Attorney
10General to extradite any offender.
11    (b) Pursuant to the Twenty-First Amendment of the United
12States Constitution allowing states to regulate the
13distribution and sale of alcoholic liquor and pursuant to the
14federal Webb-Kenyon Act declaring that alcoholic liquor
15shipped in interstate commerce must comply with state laws, the
16General Assembly hereby finds and declares that selling
17alcoholic liquor from a point outside this State through
18various direct marketing means, such as catalogs, newspapers,
19mailers, and the Internet, directly to residents of this State
20poses a serious threat to the State's efforts to prevent youths
21from accessing alcoholic liquor; to State revenue collections;
22and to the economy of this State.
23    Any person manufacturing, distributing, or selling
24alcoholic liquor who knowingly ships or transports or causes
25the shipping or transportation of any alcoholic liquor from a
26point outside this State to a person in this State who does not

 

 

09900SB2989ham001- 29 -LRB099 20595 RPS 48938 a

1hold a manufacturer's, distributor's, importing distributor's,
2or non-resident dealer's license issued by the Liquor Control
3Commission, other than a shipment of sacramental wine to a bona
4fide religious organization, a shipment authorized by Section
56-29, subparagraph (17) of Section 3-12, or any other shipment
6authorized by this Act, is in violation of this Act.
7    The Commission, upon determining, after investigation,
8that a person has violated this Section, shall give notice to
9the person by certified mail to cease and desist all shipments
10of alcoholic liquor into this State and to withdraw from this
11State within 5 working days after receipt of the notice all
12shipments of alcoholic liquor then in transit. A person who
13violates the cease and desist notice is subject to the
14applicable penalties in subsection (a) of Section 10-1 of this
15Act.
16    Whenever the Commission has reason to believe that a person
17has failed to comply with the Commission notice under this
18Section, it shall notify the Department of Revenue and file a
19complaint with the State's Attorney of the county where the
20alcoholic liquor was delivered or with appropriate law
21enforcement officials.
22    Failure to comply with the notice issued by the Commission
23under this Section constitutes a business offense for which the
24person shall be fined not more than $1,000 for a first offense,
25not more than $5,000 for a second offense, and not more than
26$10,000 for a third or subsequent offense. Each shipment of

 

 

09900SB2989ham001- 30 -LRB099 20595 RPS 48938 a

1alcoholic liquor delivered in violation of the cease and desist
2notice shall constitute a separate offense.
3(Source: P.A. 95-634, eff. 6-1-08.)
 
4    (235 ILCS 5/10-1)  (from Ch. 43, par. 183)
5    Sec. 10-1. Violations; penalties. Whereas a substantial
6threat to the sound and careful control, regulation, and
7taxation of the manufacture, sale, and distribution of
8alcoholic liquors exists by virtue of individuals who
9manufacture, import, distribute, or sell alcoholic liquors
10within the State without having first obtained a valid license
11to do so, and whereas such threat is especially serious along
12the borders of this State, and whereas such threat requires
13immediate correction by this Act, by active investigation and
14prosecution by law enforcement officials and prosecutors, and
15by prompt and strict enforcement through the courts of this
16State to punish violators and to deter such conduct in the
17future:
18    (a) Any person who manufactures, imports for distribution
19or use, transports from outside this State into this State, or
20distributes or sells 108 liters (28.53 gallons) or more of
21wine, 45 liters (11.88 gallons) or more of distilled spirits,
22or 118 liters (31.17 gallons) or more of beer alcoholic liquor
23at any place within the State without having first obtained a
24valid license to do so under the provisions of this Act shall
25be guilty of a business offense and fined not more than $1,000

 

 

09900SB2989ham001- 31 -LRB099 20595 RPS 48938 a

1for the first such offense and shall be guilty of a Class 4
2felony for each subsequent offense. However, any person who was
3duly licensed under this Act and whose license expired within
430 days prior to a violation shall be guilty of a business
5offense and fined not more than $1,000 for the first such
6offense and shall be guilty of a Class 4 felony for each
7subsequent offense.
8    Any person who manufactures, imports for distribution,
9transports from outside this State into this State for sale or
10resale in this State, or distributes or sells less than 108
11liters (28.53 gallons) of wine, less than 45 liters (11.88
12gallons) of distilled spirits, or less than 118 liters (31.17
13gallons) of beer at any place within the State without having
14first obtained a valid license to do so under the provisions of
15this Act shall be guilty of a business offense and fined not
16more than $1,000 for the first such offense and shall be guilty
17of a Class 4 felony for each subsequent offense. This
18subsection does not apply to a motor carrier or freight
19forwarder, as defined in Section 13102 of Title 49 of the
20United States Code, or an air carrier, as defined in Section
2140102 of Title 49 of the United States Code.
22    Any person who both has been issued an initial cease and
23desist notice from the State Commission and for compensation
24ships alcoholic liquor into this State without a license
25authorized by Section 5-1 issued by the State Commission or in
26violation of that license is guilty of a Class 4 felony for

 

 

09900SB2989ham001- 32 -LRB099 20595 RPS 48938 a

1each offense.
2    (b) (1) Any retailer, licensed in this State, who knowingly
3causes to furnish, give, sell, or otherwise being within the
4State, any alcoholic liquor destined to be used, distributed,
5consumed or sold in another state, unless such alcoholic liquor
6was received in this State by a duly licensed distributor, or
7importing distributors shall have his license suspended for 7
8days for the first offense and for the second offense, shall
9have his license revoked by the Commission.
10    (2) In the event the Commission receives a certified copy
11of a final order from a foreign jurisdiction that an Illinois
12retail licensee has been found to have violated that foreign
13jurisdiction's laws, rules, or regulations concerning the
14importation of alcoholic liquor into that foreign
15jurisdiction, the violation may be grounds for the Commission
16to revoke, suspend, or refuse to issue or renew a license, to
17impose a fine, or to take any additional action provided by
18this Act with respect to the Illinois retail license or
19licensee. Any such action on the part of the Commission shall
20be in accordance with this Act and implementing rules.
21    For the purposes of paragraph (2): (i) "foreign
22jurisdiction" means a state, territory, or possession of the
23United States, the District of Columbia, or the Commonwealth of
24Puerto Rico, and (ii) "final order" means an order or judgment
25of a court or administrative body that determines the rights of
26the parties respecting the subject matter of the proceeding,

 

 

09900SB2989ham001- 33 -LRB099 20595 RPS 48938 a

1that remains in full force and effect, and from which no appeal
2can be taken.
3    (c) Any person who shall make any false statement or
4otherwise violates any of the provisions of this Act in
5obtaining any license hereunder, or who having obtained a
6license hereunder shall violate any of the provisions of this
7Act with respect to the manufacture, possession, distribution
8or sale of alcoholic liquor, or with respect to the maintenance
9of the licensed premises, or shall violate any other provision
10of this Act, shall for a first offense be guilty of a petty
11offense and fined not more than $500, and for a second or
12subsequent offense shall be guilty of a Class B misdemeanor.
13    (c-5) Any owner of an establishment that serves alcohol on
14its premises, if more than 50% of the establishment's gross
15receipts within the prior 3 months is from the sale of alcohol,
16who knowingly fails to prohibit concealed firearms on its
17premises or who knowingly makes a false statement or record to
18avoid the prohibition of concealed firearms on its premises
19under the Firearm Concealed Carry Act shall be guilty of a
20business offense with a fine up to $5,000.
21    (d) Each day any person engages in business as a
22manufacturer, foreign importer, importing distributor,
23distributor or retailer in violation of the provisions of this
24Act shall constitute a separate offense.
25    (e) Any person, under the age of 21 years who, for the
26purpose of buying, accepting or receiving alcoholic liquor from

 

 

09900SB2989ham001- 34 -LRB099 20595 RPS 48938 a

1a licensee, represents that he is 21 years of age or over shall
2be guilty of a Class A misdemeanor.
3    (f) In addition to the penalties herein provided, any
4person licensed as a wine-maker in either class who
5manufactures more wine than authorized by his license shall be
6guilty of a business offense and shall be fined $1 for each
7gallon so manufactured.
8    (g) A person shall be exempt from prosecution for a
9violation of this Act if he is a peace officer in the
10enforcement of the criminal laws and such activity is approved
11in writing by one of the following:
12        (1) In all counties, the respective State's Attorney;
13        (2) The Director of State Police under Section 2605-10,
14    2605-15, 2605-75, 2605-100, 2605-105, 2605-110, 2605-115,
15    2605-120, 2605-130, 2605-140, 2605-190, 2605-200,
16    2605-205, 2605-210, 2605-215, 2605-250, 2605-275,
17    2605-300, 2605-305, 2605-315, 2605-325, 2605-335,
18    2605-340, 2605-350, 2605-355, 2605-360, 2605-365,
19    2605-375, 2605-390, 2605-400, 2605-405, 2605-420,
20    2605-430, 2605-435, 2605-500, 2605-525, or 2605-550 of the
21    Department of State Police Law (20 ILCS 2605/2605-10,
22    2605/2605-15, 2605/2605-75, 2605/2605-100, 2605/2605-105,
23    2605/2605-110, 2605/2605-115, 2605/2605-120,
24    2605/2605-130, 2605/2605-140, 2605/2605-190,
25    2605/2605-200, 2605/2605-205, 2605/2605-210,
26    2605/2605-215, 2605/2605-250, 2605/2605-275,

 

 

09900SB2989ham001- 35 -LRB099 20595 RPS 48938 a

1    2605/2605-300, 2605/2605-305, 2605/2605-315,
2    2605/2605-325, 2605/2605-335, 2605/2605-340,
3    2605/2605-350, 2605/2605-355, 2605/2605-360,
4    2605/2605-365, 2605/2605-375, 2605/2605-390,
5    2605/2605-400, 2605/2605-405, 2605/2605-420,
6    2605/2605-430, 2605/2605-435, 2605/2605-500,
7    2605/2605-525, or 2605/2605-550); or
8        (3) In cities over 1,000,000, the Superintendent of
9    Police.
10(Source: P.A. 98-63, eff. 7-9-13.)
 
11    Section 99. Effective date. This Act takes effect January
121, 2017, except that the changes to Section 5-3 of the Liquor
13Control Act of 1934 take effect upon becoming law.".