SB2970 EngrossedLRB100 18875 RPS 34119 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 3-12, 5-1, and 6-4 as follows:
 
6    (235 ILCS 5/3-12)
7    Sec. 3-12. Powers and duties of State Commission.
8    (a) The State commission shall have the following powers,
9functions, and duties:
10        (1) To receive applications and to issue licenses to
11    manufacturers, foreign importers, importing distributors,
12    distributors, non-resident dealers, on premise consumption
13    retailers, off premise sale retailers, special event
14    retailer licensees, special use permit licenses, auction
15    liquor licenses, brew pubs, caterer retailers,
16    non-beverage users, railroads, including owners and
17    lessees of sleeping, dining and cafe cars, airplanes,
18    boats, brokers, and wine maker's premises licensees in
19    accordance with the provisions of this Act, and to suspend
20    or revoke such licenses upon the State commission's
21    determination, upon notice after hearing, that a licensee
22    has violated any provision of this Act or any rule or
23    regulation issued pursuant thereto and in effect for 30

 

 

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1    days prior to such violation. Except in the case of an
2    action taken pursuant to a violation of Section 6-3, 6-5,
3    or 6-9, any action by the State Commission to suspend or
4    revoke a licensee's license may be limited to the license
5    for the specific premises where the violation occurred. An
6    action for a violation of this Act shall be commenced by
7    the State Commission within 2 years after the date the
8    State Commission becomes aware of the violation.
9        In lieu of suspending or revoking a license, the
10    commission may impose a fine, upon the State commission's
11    determination and notice after hearing, that a licensee has
12    violated any provision of this Act or any rule or
13    regulation issued pursuant thereto and in effect for 30
14    days prior to such violation.
15        For the purpose of this paragraph (1), when determining
16    multiple violations for the sale of alcohol to a person
17    under the age of 21, a second or subsequent violation for
18    the sale of alcohol to a person under the age of 21 shall
19    only be considered if it was committed within 5 years after
20    the date when a prior violation for the sale of alcohol to
21    a person under the age of 21 was committed.
22        The fine imposed under this paragraph may not exceed
23    $500 for each violation. Each day that the activity, which
24    gave rise to the original fine, continues is a separate
25    violation. The maximum fine that may be levied against any
26    licensee, for the period of the license, shall not exceed

 

 

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1    $20,000. The maximum penalty that may be imposed on a
2    licensee for selling a bottle of alcoholic liquor with a
3    foreign object in it or serving from a bottle of alcoholic
4    liquor with a foreign object in it shall be the destruction
5    of that bottle of alcoholic liquor for the first 10 bottles
6    so sold or served from by the licensee. For the eleventh
7    bottle of alcoholic liquor and for each third bottle
8    thereafter sold or served from by the licensee with a
9    foreign object in it, the maximum penalty that may be
10    imposed on the licensee is the destruction of the bottle of
11    alcoholic liquor and a fine of up to $50.
12        Any notice issued by the State Commission to a licensee
13    for a violation of this Act or any notice with respect to
14    settlement or offer in compromise shall include the field
15    report, photographs, and any other supporting
16    documentation necessary to reasonably inform the licensee
17    of the nature and extent of the violation or the conduct
18    alleged to have occurred.
19        (2) To adopt such rules and regulations consistent with
20    the provisions of this Act which shall be necessary to
21    carry on its functions and duties to the end that the
22    health, safety and welfare of the People of the State of
23    Illinois shall be protected and temperance in the
24    consumption of alcoholic liquors shall be fostered and
25    promoted and to distribute copies of such rules and
26    regulations to all licensees affected thereby.

 

 

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1        (3) To call upon other administrative departments of
2    the State, county and municipal governments, county and
3    city police departments and upon prosecuting officers for
4    such information and assistance as it deems necessary in
5    the performance of its duties.
6        (4) To recommend to local commissioners rules and
7    regulations, not inconsistent with the law, for the
8    distribution and sale of alcoholic liquors throughout the
9    State.
10        (5) To inspect, or cause to be inspected, any premises
11    in this State where alcoholic liquors are manufactured,
12    distributed, warehoused, or sold. Nothing in this Act
13    authorizes an agent of the Commission to inspect private
14    areas within the premises without reasonable suspicion or a
15    warrant during an inspection. "Private areas" include, but
16    are not limited to, safes, personal property, and closed
17    desks.
18        (5.1) Upon receipt of a complaint or upon having
19    knowledge that any person is engaged in business as a
20    manufacturer, importing distributor, distributor, or
21    retailer without a license or valid license, to notify the
22    local liquor authority, file a complaint with the State's
23    Attorney's Office of the county where the incident
24    occurred, or initiate an investigation with the
25    appropriate law enforcement officials.
26        (5.2) To issue a cease and desist notice to persons

 

 

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1    shipping alcoholic liquor into this State from a point
2    outside of this State if the shipment is in violation of
3    this Act.
4        (5.3) To receive complaints from licensees, local
5    officials, law enforcement agencies, organizations, and
6    persons stating that any licensee has been or is violating
7    any provision of this Act or the rules and regulations
8    issued pursuant to this Act. Such complaints shall be in
9    writing, signed and sworn to by the person making the
10    complaint, and shall state with specificity the facts in
11    relation to the alleged violation. If the Commission has
12    reasonable grounds to believe that the complaint
13    substantially alleges a violation of this Act or rules and
14    regulations adopted pursuant to this Act, it shall conduct
15    an investigation. If, after conducting an investigation,
16    the Commission is satisfied that the alleged violation did
17    occur, it shall proceed with disciplinary action against
18    the licensee as provided in this Act.
19        (6) To hear and determine appeals from orders of a
20    local commission in accordance with the provisions of this
21    Act, as hereinafter set forth. Hearings under this
22    subsection shall be held in Springfield or Chicago, at
23    whichever location is the more convenient for the majority
24    of persons who are parties to the hearing.
25        (7) The commission shall establish uniform systems of
26    accounts to be kept by all retail licensees having more

 

 

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1    than 4 employees, and for this purpose the commission may
2    classify all retail licensees having more than 4 employees
3    and establish a uniform system of accounts for each class
4    and prescribe the manner in which such accounts shall be
5    kept. The commission may also prescribe the forms of
6    accounts to be kept by all retail licensees having more
7    than 4 employees, including but not limited to accounts of
8    earnings and expenses and any distribution, payment, or
9    other distribution of earnings or assets, and any other
10    forms, records and memoranda which in the judgment of the
11    commission may be necessary or appropriate to carry out any
12    of the provisions of this Act, including but not limited to
13    such forms, records and memoranda as will readily and
14    accurately disclose at all times the beneficial ownership
15    of such retail licensed business. The accounts, forms,
16    records and memoranda shall be available at all reasonable
17    times for inspection by authorized representatives of the
18    State commission or by any local liquor control
19    commissioner or his or her authorized representative. The
20    commission, may, from time to time, alter, amend or repeal,
21    in whole or in part, any uniform system of accounts, or the
22    form and manner of keeping accounts.
23        (8) In the conduct of any hearing authorized to be held
24    by the commission, to appoint, at the commission's
25    discretion, hearing officers to conduct hearings involving
26    complex issues or issues that will require a protracted

 

 

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1    period of time to resolve, to examine, or cause to be
2    examined, under oath, any licensee, and to examine or cause
3    to be examined the books and records of such licensee; to
4    hear testimony and take proof material for its information
5    in the discharge of its duties hereunder; to administer or
6    cause to be administered oaths; for any such purpose to
7    issue subpoena or subpoenas to require the attendance of
8    witnesses and the production of books, which shall be
9    effective in any part of this State, and to adopt rules to
10    implement its powers under this paragraph (8).
11        Any Circuit Court may by order duly entered, require
12    the attendance of witnesses and the production of relevant
13    books subpoenaed by the State commission and the court may
14    compel obedience to its order by proceedings for contempt.
15        (9) To investigate the administration of laws in
16    relation to alcoholic liquors in this and other states and
17    any foreign countries, and to recommend from time to time
18    to the Governor and through him or her to the legislature
19    of this State, such amendments to this Act, if any, as it
20    may think desirable and as will serve to further the
21    general broad purposes contained in Section 1-2 hereof.
22        (10) To adopt such rules and regulations consistent
23    with the provisions of this Act which shall be necessary
24    for the control, sale or disposition of alcoholic liquor
25    damaged as a result of an accident, wreck, flood, fire or
26    other similar occurrence.

 

 

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1        (11) To develop industry educational programs related
2    to responsible serving and selling, particularly in the
3    areas of overserving consumers and illegal underage
4    purchasing and consumption of alcoholic beverages.
5        (11.1) To license persons providing education and
6    training to alcohol beverage sellers and servers for
7    mandatory and non-mandatory training under the Beverage
8    Alcohol Sellers and Servers Education and Training
9    (BASSET) programs and to develop and administer a public
10    awareness program in Illinois to reduce or eliminate the
11    illegal purchase and consumption of alcoholic beverage
12    products by persons under the age of 21. Application for a
13    license shall be made on forms provided by the State
14    Commission.
15        (12) To develop and maintain a repository of license
16    and regulatory information.
17        (13) On or before January 15, 1994, the Commission
18    shall issue a written report to the Governor and General
19    Assembly that is to be based on a comprehensive study of
20    the impact on and implications for the State of Illinois of
21    Section 1926 of the federal ADAMHA Reorganization Act of
22    1992 (Public Law 102-321). This study shall address the
23    extent to which Illinois currently complies with the
24    provisions of P.L. 102-321 and the rules promulgated
25    pursuant thereto.
26        As part of its report, the Commission shall provide the

 

 

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1    following essential information:
2            (i) the number of retail distributors of tobacco
3        products, by type and geographic area, in the State;
4            (ii) the number of reported citations and
5        successful convictions, categorized by type and
6        location of retail distributor, for violation of the
7        Prevention of Tobacco Use by Minors and Sale and
8        Distribution of Tobacco Products Act and the Smokeless
9        Tobacco Limitation Act;
10            (iii) the extent and nature of organized
11        educational and governmental activities that are
12        intended to promote, encourage or otherwise secure
13        compliance with any Illinois laws that prohibit the
14        sale or distribution of tobacco products to minors; and
15            (iv) the level of access and availability of
16        tobacco products to individuals under the age of 18.
17        To obtain the data necessary to comply with the
18    provisions of P.L. 102-321 and the requirements of this
19    report, the Commission shall conduct random, unannounced
20    inspections of a geographically and scientifically
21    representative sample of the State's retail tobacco
22    distributors.
23        The Commission shall consult with the Department of
24    Public Health, the Department of Human Services, the
25    Illinois State Police and any other executive branch
26    agency, and private organizations that may have

 

 

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1    information relevant to this report.
2        The Commission may contract with the Food and Drug
3    Administration of the U.S. Department of Health and Human
4    Services to conduct unannounced investigations of Illinois
5    tobacco vendors to determine compliance with federal laws
6    relating to the illegal sale of cigarettes and smokeless
7    tobacco products to persons under the age of 18.
8        (14) On or before April 30, 2008 and every 2 years
9    thereafter, the Commission shall present a written report
10    to the Governor and the General Assembly that shall be
11    based on a study of the impact of Public Act 95-634 on the
12    business of soliciting, selling, and shipping wine from
13    inside and outside of this State directly to residents of
14    this State. As part of its report, the Commission shall
15    provide all of the following information:
16            (A) The amount of State excise and sales tax
17        revenues generated.
18            (B) The amount of licensing fees received.
19            (C) The number of cases of wine shipped from inside
20        and outside of this State directly to residents of this
21        State.
22            (D) The number of alcohol compliance operations
23        conducted.
24            (E) The number of winery shipper's licenses
25        issued.
26            (F) The number of each of the following: reported

 

 

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1        violations; cease and desist notices issued by the
2        Commission; notices of violations issued by the
3        Commission and to the Department of Revenue; and
4        notices and complaints of violations to law
5        enforcement officials, including, without limitation,
6        the Illinois Attorney General and the U.S. Department
7        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
8        (15) As a means to reduce the underage consumption of
9    alcoholic liquors, the Commission shall conduct alcohol
10    compliance operations to investigate whether businesses
11    that are soliciting, selling, and shipping wine from inside
12    or outside of this State directly to residents of this
13    State are licensed by this State or are selling or
14    attempting to sell wine to persons under 21 years of age in
15    violation of this Act.
16        (16) The Commission shall, in addition to notifying any
17    appropriate law enforcement agency, submit notices of
18    complaints or violations of Sections 6-29 and 6-29.1 by
19    persons who do not hold a winery shipper's license under
20    this Act to the Illinois Attorney General and to the U.S.
21    Department of Treasury's Alcohol and Tobacco Tax and Trade
22    Bureau.
23        (17)(A) A person licensed to make wine under the laws
24    of another state who has a winery shipper's license under
25    this Act and annually produces less than 25,000 gallons of
26    wine or a person who has a first-class or second-class wine

 

 

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1    manufacturer's license, a first-class or second-class
2    wine-maker's license, or a limited wine manufacturer's
3    license under this Act and annually produces less than
4    25,000 gallons of wine may make application to the
5    Commission for a self-distribution exemption to allow the
6    sale of not more than 5,000 gallons of the exemption
7    holder's wine to retail licensees per year.
8        (B) In the application, which shall be sworn under
9    penalty of perjury, such person shall state (1) the date it
10    was established; (2) its volume of production and sales for
11    each year since its establishment; (3) its efforts to
12    establish distributor relationships; (4) that a
13    self-distribution exemption is necessary to facilitate the
14    marketing of its wine; and (5) that it will comply with the
15    liquor and revenue laws of the United States, this State,
16    and any other state where it is licensed.
17        (C) The Commission shall approve the application for a
18    self-distribution exemption if such person: (1) is in
19    compliance with State revenue and liquor laws; (2) is not a
20    member of any affiliated group that produces more than
21    25,000 gallons of wine per annum or produces any other
22    alcoholic liquor; (3) will not annually produce for sale
23    more than 25,000 gallons of wine; and (4) will not annually
24    sell more than 5,000 gallons of its wine to retail
25    licensees.
26        (D) A self-distribution exemption holder shall

 

 

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1    annually certify to the Commission its production of wine
2    in the previous 12 months and its anticipated production
3    and sales for the next 12 months. The Commission may fine,
4    suspend, or revoke a self-distribution exemption after a
5    hearing if it finds that the exemption holder has made a
6    material misrepresentation in its application, violated a
7    revenue or liquor law of Illinois, exceeded production of
8    25,000 gallons of wine in any calendar year, or become part
9    of an affiliated group producing more than 25,000 gallons
10    of wine or any other alcoholic liquor.
11        (E) Except in hearings for violations of this Act or
12    Public Act 95-634 or a bona fide investigation by duly
13    sworn law enforcement officials, the Commission, or its
14    agents, the Commission shall maintain the production and
15    sales information of a self-distribution exemption holder
16    as confidential and shall not release such information to
17    any person.
18        (F) The Commission shall issue regulations governing
19    self-distribution exemptions consistent with this Section
20    and this Act.
21        (G) Nothing in this subsection (17) shall prohibit a
22    self-distribution exemption holder from entering into or
23    simultaneously having a distribution agreement with a
24    licensed Illinois distributor.
25        (H) It is the intent of this subsection (17) to promote
26    and continue orderly markets. The General Assembly finds

 

 

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1    that in order to preserve Illinois' regulatory
2    distribution system it is necessary to create an exception
3    for smaller makers of wine as their wines are frequently
4    adjusted in varietals, mixes, vintages, and taste to find
5    and create market niches sometimes too small for
6    distributor or importing distributor business strategies.
7    Limited self-distribution rights will afford and allow
8    smaller makers of wine access to the marketplace in order
9    to develop a customer base without impairing the integrity
10    of the 3-tier system.
11        (18)(A) A class 1 brewer licensee, who must also be
12    either a licensed brewer or licensed non-resident dealer
13    and annually manufacture less than 930,000 gallons of beer,
14    may make application to the State Commission for a
15    self-distribution exemption to allow the sale of not more
16    than 232,500 gallons of the exemption holder's beer per
17    year to retail licensees and to brewers, class 1 brewers,
18    and class 2 brewers that, pursuant to subsection (e) of
19    Section 6-4 of this Act, sell beer, cider, or both beer and
20    cider to non-licensees at their breweries per year.
21        (B) In the application, which shall be sworn under
22    penalty of perjury, the class 1 brewer licensee shall state
23    (1) the date it was established; (2) its volume of beer
24    manufactured and sold for each year since its
25    establishment; (3) its efforts to establish distributor
26    relationships; (4) that a self-distribution exemption is

 

 

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1    necessary to facilitate the marketing of its beer; and (5)
2    that it will comply with the alcoholic beverage and revenue
3    laws of the United States, this State, and any other state
4    where it is licensed.
5        (C) Any application submitted shall be posted on the
6    State Commission's website at least 45 days prior to action
7    by the State Commission. The State Commission shall approve
8    the application for a self-distribution exemption if the
9    class 1 brewer licensee: (1) is in compliance with the
10    State, revenue, and alcoholic beverage laws; (2) is not a
11    member of any affiliated group that manufactures more than
12    930,000 gallons of beer per annum or produces any other
13    alcoholic beverages; (3) shall not annually manufacture
14    for sale more than 930,000 gallons of beer; (4) shall not
15    annually sell more than 232,500 gallons of its beer to
16    retail licensees or to brewers, class 1 brewers, and class
17    2 brewers that, pursuant to subsection (e) of Section 6-4
18    of this Act, sell beer, cider, or both beer and cider to
19    non-licensees at their breweries; and (5) has relinquished
20    any brew pub license held by the licensee, including any
21    ownership interest it held in the licensed brew pub.
22        (D) A self-distribution exemption holder shall
23    annually certify to the State Commission its manufacture of
24    beer during the previous 12 months and its anticipated
25    manufacture and sales of beer for the next 12 months. The
26    State Commission may fine, suspend, or revoke a

 

 

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1    self-distribution exemption after a hearing if it finds
2    that the exemption holder has made a material
3    misrepresentation in its application, violated a revenue
4    or alcoholic beverage law of Illinois, exceeded the
5    manufacture of 930,000 gallons of beer in any calendar year
6    or became part of an affiliated group manufacturing more
7    than 930,000 gallons of beer or any other alcoholic
8    beverage.
9        (E) The State Commission shall issue rules and
10    regulations governing self-distribution exemptions
11    consistent with this Act.
12        (F) Nothing in this paragraph (18) shall prohibit a
13    self-distribution exemption holder from entering into or
14    simultaneously having a distribution agreement with a
15    licensed Illinois importing distributor or a distributor.
16    If a self-distribution exemption holder enters into a
17    distribution agreement and has assigned distribution
18    rights to an importing distributor or distributor, then the
19    self-distribution exemption holder's distribution rights
20    in the assigned territories shall cease in a reasonable
21    time not to exceed 60 days.
22        (G) It is the intent of this paragraph (18) to promote
23    and continue orderly markets. The General Assembly finds
24    that in order to preserve Illinois' regulatory
25    distribution system, it is necessary to create an exception
26    for smaller manufacturers in order to afford and allow such

 

 

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1    smaller manufacturers of beer access to the marketplace in
2    order to develop a customer base without impairing the
3    integrity of the 3-tier system.
4    (b) On or before April 30, 1999, the Commission shall
5present a written report to the Governor and the General
6Assembly that shall be based on a study of the impact of Public
7Act 90-739 on the business of soliciting, selling, and shipping
8alcoholic liquor from outside of this State directly to
9residents of this State.
10    As part of its report, the Commission shall provide the
11following information:
12        (i) the amount of State excise and sales tax revenues
13    generated as a result of Public Act 90-739;
14        (ii) the amount of licensing fees received as a result
15    of Public Act 90-739;
16        (iii) the number of reported violations, the number of
17    cease and desist notices issued by the Commission, the
18    number of notices of violations issued to the Department of
19    Revenue, and the number of notices and complaints of
20    violations to law enforcement officials.
21(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
22100-134, eff. 8-18-17; 100-201, eff. 8-18-17.)
 
23    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
24    Sec. 5-1. Licenses issued by the Illinois Liquor Control
25Commission shall be of the following classes:

 

 

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1    (a) Manufacturer's license - Class 1. Distiller, Class 2.
2Rectifier, Class 3. Brewer, Class 4. First Class Wine
3Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
4First Class Winemaker, Class 7. Second Class Winemaker, Class
58. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
610. Class 1 Brewer, Class 11. Class 2 Brewer,
7    (b) Distributor's license,
8    (c) Importing Distributor's license,
9    (d) Retailer's license,
10    (e) Special Event Retailer's license (not-for-profit),
11    (f) Railroad license,
12    (g) Boat license,
13    (h) Non-Beverage User's license,
14    (i) Wine-maker's premises license,
15    (j) Airplane license,
16    (k) Foreign importer's license,
17    (l) Broker's license,
18    (m) Non-resident dealer's license,
19    (n) Brew Pub license,
20    (o) Auction liquor license,
21    (p) Caterer retailer license,
22    (q) Special use permit license,
23    (r) Winery shipper's license,
24    (s) Craft distiller tasting permit.
25    No person, firm, partnership, corporation, or other legal
26business entity that is engaged in the manufacturing of wine

 

 

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

 

 

SB2970 Engrossed- 20 -LRB100 18875 RPS 34119 b

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

 

 

SB2970 Engrossed- 21 -LRB100 18875 RPS 34119 b

1licensee, including a craft distiller licensee who holds more
2than one craft distiller license, is not affiliated with any
3other manufacturer of spirits, then the craft distiller
4licensee may sell such spirits to distributors in this State
5and up to 2,500 gallons of such spirits to non-licensees to the
6extent permitted by any exemption approved by the Commission
7pursuant to Section 6-4 of this Act. A craft distiller license
8holder may store such spirits at a non-contiguous licensed
9location, but at no time shall a craft distiller license holder
10directly or indirectly produce in the aggregate more than
11100,000 gallons of spirits per year.
12    A craft distiller licensee may hold more than one craft
13distiller's license. However, a craft distiller that holds more
14than one craft distiller license shall not manufacture, in the
15aggregate, more than 100,000 gallons of spirits by distillation
16per year and shall not sell, in the aggregate, more than 2,500
17gallons of such spirits to non-licensees in accordance with an
18exemption approved by the State Commission pursuant to Section
196-4 of this Act.
20    Any craft distiller licensed under this Act who on July 28,
212010 (the effective date of Public Act 96-1367) was licensed as
22a distiller and manufactured no more spirits than permitted by
23this Section shall not be required to pay the initial licensing
24fee.
25    Class 10. A class 1 brewer license, which may only be
26issued to a licensed brewer or licensed non-resident dealer,

 

 

SB2970 Engrossed- 22 -LRB100 18875 RPS 34119 b

1shall allow the manufacture of up to 930,000 gallons of beer
2per year provided that the class 1 brewer licensee does not
3manufacture more than a combined 930,000 gallons of beer per
4year and is not a member of or affiliated with, directly or
5indirectly, a manufacturer that produces more than 930,000
6gallons of beer per year or any other alcoholic liquor. A class
71 brewer licensee may make sales and deliveries to importing
8distributors and distributors and to retail licensees in
9accordance with the conditions set forth in paragraph (18) of
10subsection (a) of Section 3-12 of this Act.
11    Class 11. A class 2 brewer license, which may only be
12issued to a licensed brewer or licensed non-resident dealer,
13shall allow the manufacture of up to 3,720,000 gallons of beer
14per year provided that the class 2 brewer licensee does not
15manufacture more than a combined 3,720,000 gallons of beer per
16year and is not a member of or affiliated with, directly or
17indirectly, a manufacturer that produces more than 3,720,000
18gallons of beer per year or any other alcoholic liquor. A class
192 brewer licensee may make sales and deliveries to importing
20distributors and distributors, but shall not make sales or
21deliveries to any other licensee. If the State Commission
22provides prior approval, a class 2 brewer licensee may annually
23transfer up to 3,720,000 gallons of beer manufactured by that
24class 2 brewer licensee to the premises of a licensed class 2
25brewer wholly owned and operated by the same licensee.
26    (a-1) A manufacturer which is licensed in this State to

 

 

SB2970 Engrossed- 23 -LRB100 18875 RPS 34119 b

1make sales or deliveries of alcoholic liquor to licensed
2distributors or importing distributors and which enlists
3agents, representatives, or individuals acting on its behalf
4who contact licensed retailers on a regular and continual basis
5in this State must register those agents, representatives, or
6persons acting on its behalf with the State Commission.
7    Registration of agents, representatives, or persons acting
8on behalf of a manufacturer is fulfilled by submitting a form
9to the Commission. The form shall be developed by the
10Commission and shall include the name and address of the
11applicant, the name and address of the manufacturer he or she
12represents, the territory or areas assigned to sell to or
13discuss pricing terms of alcoholic liquor, and any other
14questions deemed appropriate and necessary. All statements in
15the forms required to be made by law or by rule shall be deemed
16material, and any person who knowingly misstates any material
17fact under oath in an application is guilty of a Class B
18misdemeanor. Fraud, misrepresentation, false statements,
19misleading statements, evasions, or suppression of material
20facts in the securing of a registration are grounds for
21suspension or revocation of the registration. The State
22Commission shall post a list of registered agents on the
23Commission's website.
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

 

 

SB2970 Engrossed- 24 -LRB100 18875 RPS 34119 b

1State, as may be permitted by law, and the sale of beer, cider,
2or both beer and cider to brewers, class 1 brewers, and class 2
3brewers that, pursuant to subsection (e) of Section 6-4 of this
4Act, sell beer, cider, or both beer and cider to non-licensees
5at their breweries. No person licensed as a distributor shall
6be granted a non-resident dealer's license.
7    (c) An importing distributor's license may be issued to and
8held by those only who are duly licensed distributors, upon the
9filing of an application by a duly licensed distributor, with
10the Commission and the Commission shall, without the payment of
11any fee, immediately issue such importing distributor's
12license to the applicant, which shall allow the importation of
13alcoholic liquor by the licensee into this State from any point
14in the United States outside this State, and the purchase of
15alcoholic liquor in barrels, casks or other bulk containers and
16the bottling of such alcoholic liquors before resale thereof,
17but all bottles or containers so filled shall be sealed,
18labeled, stamped and otherwise made to comply with all
19provisions, rules and regulations governing manufacturers in
20the preparation and bottling of alcoholic liquors. The
21importing distributor's license shall permit such licensee to
22purchase alcoholic liquor from Illinois licensed non-resident
23dealers and foreign importers only. No person licensed as an
24importing distributor shall be granted a non-resident dealer's
25license.
26    (d) A retailer's license shall allow the licensee to sell

 

 

SB2970 Engrossed- 25 -LRB100 18875 RPS 34119 b

1and offer for sale at retail, only in the premises specified in
2the license, alcoholic liquor for use or consumption, but not
3for resale in any form. Nothing in Public Act 95-634 shall
4deny, limit, remove, or restrict the ability of a holder of a
5retailer's license to transfer, deliver, or ship alcoholic
6liquor to the purchaser for use or consumption subject to any
7applicable local law or ordinance. Any retail license issued to
8a manufacturer shall only permit the manufacturer to sell beer
9at retail on the premises actually occupied by the
10manufacturer. For the purpose of further describing the type of
11business conducted at a retail licensed premises, a retailer's
12licensee may be designated by the State Commission as (i) an on
13premise consumption retailer, (ii) an off premise sale
14retailer, or (iii) a combined on premise consumption and off
15premise sale retailer.
16    Notwithstanding any other provision of this subsection
17(d), a retail licensee may sell alcoholic liquors to a special
18event retailer licensee for resale to the extent permitted
19under subsection (e).
20    (e) A special event retailer's license (not-for-profit)
21shall permit the licensee to purchase alcoholic liquors from an
22Illinois licensed distributor (unless the licensee purchases
23less than $500 of alcoholic liquors for the special event, in
24which case the licensee may purchase the alcoholic liquors from
25a licensed retailer) and shall allow the licensee to sell and
26offer for sale, at retail, alcoholic liquors for use or

 

 

SB2970 Engrossed- 26 -LRB100 18875 RPS 34119 b

1consumption, but not for resale in any form and only at the
2location and on the specific dates designated for the special
3event in the license. An applicant for a special event retailer
4license must (i) furnish with the application: (A) a resale
5number issued under Section 2c of the Retailers' Occupation Tax
6Act or evidence that the applicant is registered under Section
72a of the Retailers' Occupation Tax Act, (B) a current, valid
8exemption identification number issued under Section 1g of the
9Retailers' Occupation Tax Act, and a certification to the
10Commission that the purchase of alcoholic liquors will be a
11tax-exempt purchase, or (C) a statement that the applicant is
12not registered under Section 2a of the Retailers' Occupation
13Tax Act, does not hold a resale number under Section 2c of the
14Retailers' Occupation Tax Act, and does not hold an exemption
15number under Section 1g of the Retailers' Occupation Tax Act,
16in which event the Commission shall set forth on the special
17event retailer's license a statement to that effect; (ii)
18submit with the application proof satisfactory to the State
19Commission that the applicant will provide dram shop liability
20insurance in the maximum limits; and (iii) show proof
21satisfactory to the State Commission that the applicant has
22obtained local authority approval.
23    (f) A railroad license shall permit the licensee to import
24alcoholic liquors into this State from any point in the United
25States outside this State and to store such alcoholic liquors
26in this State; to make wholesale purchases of alcoholic liquors

 

 

SB2970 Engrossed- 27 -LRB100 18875 RPS 34119 b

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

 

 

SB2970 Engrossed- 28 -LRB100 18875 RPS 34119 b

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

 

 

SB2970 Engrossed- 29 -LRB100 18875 RPS 34119 b

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

 

 

SB2970 Engrossed- 30 -LRB100 18875 RPS 34119 b

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

 

 

SB2970 Engrossed- 31 -LRB100 18875 RPS 34119 b

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

 

 

SB2970 Engrossed- 32 -LRB100 18875 RPS 34119 b

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

 

 

SB2970 Engrossed- 33 -LRB100 18875 RPS 34119 b

1non-resident dealer shall comply with the provisions of
2Sections 6-5 and 6-6 of this Act to the same extent that these
3provisions apply to manufacturers. No person licensed as a
4non-resident dealer shall be granted a distributor's or
5importing distributor's license.
6    (n) A brew pub license shall allow the licensee to only (i)
7manufacture up to 155,000 gallons of beer per year only on the
8premises specified in the license, (ii) make sales of the beer
9manufactured on the premises or, with the approval of the
10Commission, beer manufactured on another brew pub licensed
11premises that is wholly owned and operated by the same licensee
12to importing distributors, distributors, and to non-licensees
13for use and consumption, (iii) store the beer upon the
14premises, (iv) sell and offer for sale at retail from the
15licensed premises for off-premises consumption no more than
16155,000 gallons per year so long as such sales are only made
17in-person, (v) sell and offer for sale at retail for use and
18consumption on the premises specified in the license any form
19of alcoholic liquor purchased from a licensed distributor or
20importing distributor, and (vi) with the prior approval of the
21Commission, annually transfer no more than 155,000 gallons of
22beer manufactured on the premises to a licensed brew pub wholly
23owned and operated by the same licensee.
24    A brew pub licensee shall not under any circumstance sell
25or offer for sale beer manufactured by the brew pub licensee to
26retail licensees.

 

 

SB2970 Engrossed- 34 -LRB100 18875 RPS 34119 b

1    A person who holds a class 2 brewer license may
2simultaneously hold a brew pub license if the class 2 brewer
3(i) does not, under any circumstance, sell or offer for sale
4beer manufactured by the class 2 brewer to retail licensees;
5(ii) does not hold more than 3 brew pub licenses in this State;
6(iii) does not manufacture more than a combined 3,720,000
7gallons of beer per year, including the beer manufactured at
8the brew pub; and (iv) is not a member of or affiliated with,
9directly or indirectly, a manufacturer that produces more than
103,720,000 gallons of beer per year or any other alcoholic
11liquor.
12    Notwithstanding any other provision of this Act, a licensed
13brewer, class 2 brewer, or non-resident dealer who before July
141, 2015 manufactured less than 3,720,000 gallons of beer per
15year and held a brew pub license on or before July 1, 2015 may
16(i) continue to qualify for and hold that brew pub license for
17the licensed premises and (ii) manufacture more than 3,720,000
18gallons of beer per year and continue to qualify for and hold
19that brew pub license if that brewer, class 2 brewer, or
20non-resident dealer does not simultaneously hold a class 1
21brewer license and is not a member of or affiliated with,
22directly or indirectly, a manufacturer that produces more than
233,720,000 gallons of beer per year or that produces any other
24alcoholic liquor.
25    (o) A caterer retailer license shall allow the holder to
26serve alcoholic liquors as an incidental part of a food service

 

 

SB2970 Engrossed- 35 -LRB100 18875 RPS 34119 b

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

 

 

SB2970 Engrossed- 36 -LRB100 18875 RPS 34119 b

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

 

 

SB2970 Engrossed- 37 -LRB100 18875 RPS 34119 b

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

 

 

SB2970 Engrossed- 38 -LRB100 18875 RPS 34119 b

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

 

 

SB2970 Engrossed- 39 -LRB100 18875 RPS 34119 b

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

 

 

SB2970 Engrossed- 40 -LRB100 18875 RPS 34119 b

1    A winery shipper licensee must collect, maintain, and
2submit to the Commission on a semi-annual basis the total
3number of cases per resident of wine shipped to residents of
4this State. A winery shipper licensed under this subsection (r)
5must comply with the requirements of Section 6-29 of this Act.
6    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
7Section 3-12, the State Commission may receive, respond to, and
8investigate any complaint and impose any of the remedies
9specified in paragraph (1) of subsection (a) of Section 3-12.
10    As used in this subsection, "third-party provider" means
11any entity that provides fulfillment house services, including
12warehousing, packaging, distribution, order processing, or
13shipment of wine, but not the sale of wine, on behalf of a
14licensed winery shipper.
15    (s) A craft distiller tasting permit license shall allow an
16Illinois licensed craft distiller to transfer a portion of its
17alcoholic liquor inventory from its craft distiller licensed
18premises to the premises specified in the license hereby
19created and to conduct a sampling, only in the premises
20specified in the license hereby created, of the transferred
21alcoholic liquor in accordance with subsection (c) of Section
226-31 of this Act. The transferred alcoholic liquor may not be
23sold or resold in any form. An applicant for the craft
24distiller tasting 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

 

 

SB2970 Engrossed- 41 -LRB100 18875 RPS 34119 b

1maximum limits and have local authority approval.
2(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
399-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
41-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17.)
 
5    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
6    Sec. 6-4. (a) No person licensed by any licensing authority
7as a distiller, or a wine manufacturer, or any subsidiary or
8affiliate thereof, or any officer, associate, member, partner,
9representative, employee, agent or shareholder owning more
10than 5% of the outstanding shares of such person shall be
11issued an importing distributor's or distributor's license,
12nor shall any person licensed by any licensing authority as an
13importing distributor, distributor or retailer, or any
14subsidiary or affiliate thereof, or any officer or associate,
15member, partner, representative, employee, agent or
16shareholder owning more than 5% of the outstanding shares of
17such person be issued a distiller's license, a craft
18distiller's license, or a wine manufacturer's license; and no
19person or persons licensed as a distiller or craft distiller by
20any licensing authority shall have any interest, directly or
21indirectly, with such distributor or importing distributor.
22    However, an importing distributor or distributor, which on
23January 1, 1985 is owned by a brewer, or any subsidiary or
24affiliate thereof or any officer, associate, member, partner,
25representative, employee, agent or shareholder owning more

 

 

SB2970 Engrossed- 42 -LRB100 18875 RPS 34119 b

1than 5% of the outstanding shares of the importing distributor
2or distributor referred to in this paragraph, may own or
3acquire an ownership interest of more than 5% of the
4outstanding shares of a wine manufacturer and be issued a wine
5manufacturer's license by any licensing authority.
6    (b) The foregoing provisions shall not apply to any person
7licensed by any licensing authority as a distiller or wine
8manufacturer, or to any subsidiary or affiliate of any
9distiller or wine manufacturer who shall have been heretofore
10licensed by the State Commission as either an importing
11distributor or distributor during the annual licensing period
12expiring June 30, 1947, and shall actually have made sales
13regularly to retailers.
14    (c) Provided, however, that in such instances where a
15distributor's or importing distributor's license has been
16issued to any distiller or wine manufacturer or to any
17subsidiary or affiliate of any distiller or wine manufacturer
18who has, during the licensing period ending June 30, 1947, sold
19or distributed as such licensed distributor or importing
20distributor alcoholic liquors and wines to retailers, such
21distiller or wine manufacturer or any subsidiary or affiliate
22of any distiller or wine manufacturer holding such
23distributor's or importing distributor's license may continue
24to sell or distribute to retailers such alcoholic liquors and
25wines which are manufactured, distilled, processed or marketed
26by distillers and wine manufacturers whose products it sold or

 

 

SB2970 Engrossed- 43 -LRB100 18875 RPS 34119 b

1distributed to retailers during the whole or any part of its
2licensing periods; and such additional brands and additional
3products may be added to the line of such distributor or
4importing distributor, provided, that such brands and such
5products were not sold or distributed by any distributor or
6importing distributor licensed by the State Commission during
7the licensing period ending June 30, 1947, but can not sell or
8distribute to retailers any other alcoholic liquors or wines.
9    (d) It shall be unlawful for any distiller licensed
10anywhere to have any stock ownership or interest in any
11distributor's or importing distributor's license wherein any
12other person has an interest therein who is not a distiller and
13does not own more than 5% of any stock in any distillery.
14Nothing herein contained shall apply to such distillers or
15their subsidiaries or affiliates, who had a distributor's or
16importing distributor's license during the licensing period
17ending June 30, 1947, which license was owned in whole by such
18distiller, or subsidiaries or affiliates of such distiller.
19    (e) Any person licensed as a brewer, class 1 brewer, or
20class 2 brewer shall be permitted to sell on the licensed
21premises to non-licensees for on or off-premises consumption
22for the premises in which he or she actually conducts such
23business: (i) beer manufactured by the brewer, class 1 brewer,
24or class 2 brewer; (ii) beer manufactured by any other brewer,
25class 1 brewer, or class 2 brewer; and (iii) cider. Such sales
26shall be limited to on-premises, in-person sales only, for

 

 

SB2970 Engrossed- 44 -LRB100 18875 RPS 34119 b

1lawful consumption on or off premises. Such authorization shall
2be considered a privilege granted by the brewer license and,
3other than a manufacturer of beer as stated above, no
4manufacturer or distributor or importing distributor,
5excluding airplane licensees exercising powers provided in
6paragraph (i) of Section 5-1 of this Act, or any subsidiary or
7affiliate thereof, or any officer, associate, member, partner,
8representative, employee or agent, or shareholder shall be
9issued a retailer's license, nor shall any person having a
10retailer's license, excluding airplane licensees exercising
11powers provided in paragraph (i) of Section 5-1 of this Act, or
12any subsidiary or affiliate thereof, or any officer, associate,
13member, partner, representative or agent, or shareholder be
14issued a manufacturer's license or importing distributor's
15license.
16    A person who holds a class 1 or class 2 brewer license and
17is authorized by this Section to sell beer to non-licensees
18shall not sell beer to non-licensees from more than 3 total
19brewer or commonly owned brew pub licensed locations in this
20State. The class 1 or class 2 brewer shall designate to the
21State Commission the brewer or brew pub locations from which it
22will sell beer to non-licensees.
23    A person licensed as a craft distiller, including a person
24who holds more than one craft distiller license, not affiliated
25with any other person manufacturing spirits may be authorized
26by the Commission to sell up to 2,500 gallons of spirits

 

 

SB2970 Engrossed- 45 -LRB100 18875 RPS 34119 b

1produced by the person to non-licensees for on or off-premises
2consumption for the premises in which he or she actually
3conducts business permitting only the retail sale of spirits
4manufactured at such premises. Such sales shall be limited to
5on-premises, in-person sales only, for lawful consumption on or
6off premises, and such authorization shall be considered a
7privilege granted by the craft distiller license. A craft
8distiller licensed for retail sale shall secure liquor
9liability insurance coverage in an amount at least equal to the
10maximum liability amounts set forth in subsection (a) of
11Section 6-21 of this Act.
12    A craft distiller license holder shall not deliver any
13alcoholic liquor to any non-licensee off the licensed premises.
14A craft distiller shall affirm in its annual craft distiller's
15license application that it does not produce more than 100,000
16gallons of distilled spirits annually and that the craft
17distiller does not sell more than 2,500 gallons of spirits to
18non-licensees for on or off-premises consumption. In the
19application, which shall be sworn under penalty of perjury, the
20craft distiller shall state the volume of production and sales
21for each year since the craft distiller's establishment.
22    (f) (Blank).
23    (g) Notwithstanding any of the foregoing prohibitions, a
24limited wine manufacturer may sell at retail at its
25manufacturing site for on or off premises consumption and may
26sell to distributors. A limited wine manufacturer licensee

 

 

SB2970 Engrossed- 46 -LRB100 18875 RPS 34119 b

1shall secure liquor liability insurance coverage in an amount
2at least equal to the maximum liability amounts set forth in
3subsection (a) of Section 6-21 of this Act.
4    (h) The changes made to this Section by Public Act 99-47
5shall not diminish or impair the rights of any person, whether
6a distiller, wine manufacturer, agent, or affiliate thereof,
7who requested in writing and submitted documentation to the
8State Commission on or before February 18, 2015 to be approved
9for a retail license pursuant to what has heretofore been
10subsection (f); provided that, on or before that date, the
11State Commission considered the intent of that person to apply
12for the retail license under that subsection and, by recorded
13vote, the State Commission approved a resolution indicating
14that such a license application could be lawfully approved upon
15that person duly filing a formal application for a retail
16license and if that person, within 90 days of the State
17Commission appearance and recorded vote, first filed an
18application with the appropriate local commission, which
19application was subsequently approved by the appropriate local
20commission prior to consideration by the State Commission of
21that person's application for a retail license. It is further
22provided that the State Commission may approve the person's
23application for a retail license or renewals of such license if
24such person continues to diligently adhere to all
25representations made in writing to the State Commission on or
26before February 18, 2015, or thereafter, or in the affidavit

 

 

SB2970 Engrossed- 47 -LRB100 18875 RPS 34119 b

1filed by that person with the State Commission to support the
2issuance of a retail license and to abide by all applicable
3laws and duly adopted rules.
4(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
599-642, eff. 7-28-16; 99-902, eff. 8-26-16; 100-201, eff.
68-18-17.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.