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91_SB0781
LRB9106047LDmb
1 AN ACT to amend the Liquor Control Act of 1934 by
2 changing Section 6-4.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Liquor Control Act of 1934 is amended by
6 changing Section 6-4 as follows:
7 (235 ILCS 5/6-4) (from Ch. 43, par. 121)
8 Sec. 6-4. (a) No person licensed by any licensing
9 authority as a distiller, or a wine manufacturer, or any
10 subsidiary or affiliate thereof, or any officer, associate,
11 member, partner, representative, employee, agent or
12 shareholder owning more than 5% of the outstanding shares of
13 such person shall be issued an importing distributor's or
14 distributor's license, nor shall any person licensed by any
15 licensing authority as an importing distributor, distributor
16 or retailer, or any subsidiary or affiliate thereof, or any
17 officer or associate, member, partner, representative,
18 employee, agent or shareholder owning more than 5% of the
19 outstanding shares of such person be issued a distiller's
20 license or a wine manufacturer's license; and no person or
21 persons licensed as a distiller by any licensing authority
22 shall have any interest, directly or indirectly, with such
23 distributor or importing distributor.
24 However, an importing distributor or distributor, which
25 on January 1, 1985 is owned by a brewer, or any subsidiary or
26 affiliate thereof or any officer, associate, member, partner,
27 representative, employee, agent or shareholder owning more
28 than 5% of the outstanding shares of the importing
29 distributor or distributor referred to in this paragraph, may
30 own or acquire an ownership interest of more than 5% of the
31 outstanding shares of a wine manufacturer and be issued a
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1 wine manufacturer's license by any licensing authority.
2 (b) The foregoing provisions shall not apply to any
3 person licensed by any licensing authority as a distiller or
4 wine manufacturer, or to any subsidiary or affiliate of any
5 distiller or wine manufacturer who shall have been heretofore
6 licensed by the State Commission as either an importing
7 distributor or distributor during the annual licensing period
8 expiring June 30, 1947, and shall actually have made sales
9 regularly to retailers.
10 (c) Provided, however, that in such instances where a
11 distributor's or importing distributor's license has been
12 issued to any distiller or wine manufacturer or to any
13 subsidiary or affiliate of any distiller or wine manufacturer
14 who has, during the licensing period ending June 30, 1947,
15 sold or distributed as such licensed distributor or importing
16 distributor alcoholic liquors and wines to retailers, such
17 distiller or wine manufacturer or any subsidiary or affiliate
18 of any distiller or wine manufacturer holding such
19 distributor's or importing distributor's license may continue
20 to sell or distribute to retailers such alcoholic liquors and
21 wines which are manufactured, distilled, processed or
22 marketed by distillers and wine manufacturers whose products
23 it sold or distributed to retailers during the whole or any
24 part of its licensing periods; and such additional brands and
25 additional products may be added to the line of such
26 distributor or importing distributor, provided, that such
27 brands and such products were not sold or distributed by any
28 distributor or importing distributor licensed by the State
29 Commission during the licensing period ending June 30, 1947,
30 but can not sell or distribute to retailers any other
31 alcoholic liquors or wines.
32 (d) It shall be unlawful for any distiller licensed
33 anywhere to have any stock ownership or interest in any
34 distributor's or importing distributor's license wherein any
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1 other person has an interest therein who is not a distiller
2 and does not own more than 5% of any stock in any distillery.
3 Nothing herein contained shall apply to such distillers or
4 their subsidiaries or affiliates, who had a distributor's or
5 importing distributor's license during the licensing period
6 ending June 30, 1947, which license was owned in whole by
7 such distiller, or subsidiaries or affiliates of such
8 distiller.
9 (e) Any person having been licensed as a manufacturer
10 shall be permitted to receive one retailer's license for the
11 premises in which he actually conducts such business,
12 permitting the sale of beer only on such premises, but no
13 such person shall be entitled to more than one retailer's
14 license in any event, and, other than a manufacturer of beer
15 as stated above, no manufacturer or distributor or importing
16 distributor, excluding airplane licensees exercising powers
17 provided in paragraph (i) of Section 5-1 of this Act, or any
18 subsidiary or affiliate thereof, or any officer, associate,
19 member, partner, representative, employee or agent, or
20 shareholder shall be issued a retailer's license, nor shall
21 any person having a retailer's license, excluding airplane
22 licensees exercising powers provided in paragraph (i) of
23 Section 5-1 of this Act, or any subsidiary or affiliate
24 thereof, or any officer, associate, member, partner,
25 representative or agent, or shareholder be issued a
26 manufacturer's license, importing distributor's license.
27 (f) However, the foregoing prohibitions against any
28 person licensed as a distiller or wine manufacturer being
29 issued a retailer's license shall not apply:
30 (i) to any hotel, motel or restaurant whose principal
31 business is not the sale of alcoholic liquors if said
32 retailer's sales of any alcoholic liquors manufactured, sold,
33 distributed or controlled, directly or indirectly, by any
34 affiliate, subsidiary, officer, associate, member, partner,
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1 representative, employee, agent or shareholder owning more
2 than 5% of the outstanding shares of such person does not
3 exceed 10% of the total alcoholic liquor sales of said retail
4 licensee; and
5 (ii) where the Commission determines, having considered
6 the public welfare, the economic impact upon the State and
7 the entirety of the facts and circumstances involved, that
8 the purpose and intent of this Section would not be violated
9 by granting an exemption.
10 (g) Notwithstanding any of the foregoing prohibitions, a
11 limited wine manufacturer may sell at retail at its
12 manufacturing site for on or off premises consumption and may
13 sell to distributors.
14 (h) No person licensed by any licensing authority as a
15 brewer, manufacturer, non-resident dealer, or foreign
16 importer of beer, any subsidiary or affiliate thereof, or any
17 officer, associate, member, partner, representative,
18 employee, agent, or shareholder owning more than 5% of the
19 outstanding shares of such person shall be issued an
20 importing distributor's or distributor's license, nor shall
21 any person licensed by any licensing authority as an
22 importing distributor, distributor, or retailer, any
23 subsidiary or affiliate thereof, or any officer or associate,
24 member, partner, representative, employee, agent, or
25 shareholder owning more than 5% of the outstanding shares of
26 such person be issued a brewer's, manufacturer's,
27 non-resident dealer's, or foreign importer of beer license;
28 and no person licensed as a brewer, manufacturer,
29 non-resident dealer, or foreign importer of beer by any
30 licensing authority shall have any interest, directly or
31 indirectly, with such distributor or importing distributor.
32 If the Commission determines, having considered a written
33 request filed by a brewer, manufacturer, non-resident dealer,
34 or foreign importer of beer and the entirety of the facts and
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1 circumstances involved, that an emergency exists concerning
2 the continuation of beer distribution, the brewer,
3 manufacturer, non-resident dealer, or foreign importer of
4 beer in a designated territory previously serviced by a
5 distributor or importing distributor, the State Commission
6 may grant the brewer, manufacturer, non-resident dealer, or
7 foreign importer of beer a limited distributor's or importing
8 distributor's license for the territory for a period of 12
9 months. In the event the Commission determines an emergency
10 continues to exist, having considered the written request
11 filed by the brewer, manufacturer, non-resident dealer, or
12 foreign importer of beer, the State Commission may grant the
13 brewer, manufacturer, non-resident dealer, or foreign
14 importer of beer an extension of the limited distributor's or
15 importing distributor's license for the territory for up to 2
16 additional 6 month periods. Each 6 month period requires the
17 approval of the Commission.
18 In such instances where a distributor's and importing
19 distributor's license has been issued to any brewer,
20 manufacturer, non-resident dealer, or foreign importer of
21 beer or to any subsidiary or affiliate of any brewer,
22 manufacturer, non-resident dealer, or foreign importer of
23 beer who has, during the licensing period ending January 1,
24 1999, sold or distributed as such licensed distributor and
25 importing distributor beer to retailers, such brewer,
26 manufacturer, non-resident dealer, or foreign importer of
27 beer holding such distributor's and importing distributor's
28 license may continue to sell or distribute to retailers
29 within the geographic territory it is currently servicing in
30 accordance with Section 6-9 such beers that are manufactured,
31 brewed, processed, or marketed by brewers, manufacturers,
32 non-resident dealers, or foreign importers of beer whose
33 products it sold or distributed to retailers during the whole
34 or any part of its licensing periods, and such additional
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1 brands and additional products may be added to the line of
2 such distributor and importing distributor, provided, that
3 such brands and products were not sold or distributed by any
4 distributor and importing distributor licensed by the state
5 Commission during the licensing period ending January 1,
6 1999, but cannot sell or distribute to retailers any other
7 beer or malt beverage products.
8 (i) Notwithstanding the foregoing provisions of
9 subsection (h), any person licensed by a licensing authority
10 as a brewer, manufacturer, non-resident dealer, or foreign
11 importer of beer, or any subsidiary or affiliate of any
12 brewer, manufacturer, non-resident dealer, or foreign
13 importer of beer may financially assist a proposed owner or
14 owners in acquiring ownership of a distributorship through
15 participation in a financing arrangement in which the brewer,
16 manufacturer, non-resident dealer, or foreign importer of
17 beer, or its subsidiary or affiliate is a lender to or holder
18 of a security interest in the business of the proposed owner
19 or owners seeking to acquire ownership of the
20 distributorship. Such financial arrangements may exist for no
21 longer than 8 years from their creation and shall not be
22 extended or renewed by means of a transfer of full ownership
23 to any brewer, manufacturer, non-resident dealer, or foreign
24 importer of beer, or its subsidiary or affiliate, followed by
25 the creation of a new financial arrangement or by any other
26 means. In any such arrangement for financial assistance, the
27 federal basic permit and distributor's license issued by the
28 Commission shall be issued in the name of the distributor and
29 not in the name of a brewer, manufacturer, non-resident
30 dealer, or foreign importer of beer, or its subsidiary or
31 affiliate. If, after the creation of a financial arrangement
32 pursuant to this subsection (i), the brewer, manufacturer,
33 non-resident dealer, or foreign importer of beer, or its
34 subsidiary or affiliate acquires title to the distributorship
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1 that was the subject of the arrangement, the brewer,
2 manufacturer, non-resident dealer, or foreign importer of
3 beer, or its subsidiary or affiliate, shall divest itself of
4 the distributorship within 180 days and the distributorship
5 shall be ineligible for financing for 20 years thereafter.
6 (Source: P.A. 86-858.)
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.