Rep. Michael J. Zalewski

Filed: 3/26/2019

 

 


 

 


 
10100HB2674ham002LRB101 07837 RPS 58674 a

1
AMENDMENT TO HOUSE BILL 2674

2    AMENDMENT NO. ______. Amend House Bill 2674 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 1-3.40, 3-12, 5-1, 5-3, 6-4, and 6-31 as
6follows:
 
7    (235 ILCS 5/1-3.40)
8    Sec. 1-3.40. Manufacturer class license holder.
9"Manufacturer class license holder" means any holder of a
10Manufacturer's license as provided in Section 5-1 of this Act.
11The Manufacturer's licenses are: a Class 1. Distiller, a Class
122. Rectifier, a Class 3. Brewer, a Class 4. First Class Wine
13Manufacturer, a Class 5. Second Class Wine Manufacturer, a
14Class 6. First Class Winemaker, a Class 7. Second Class
15Winemaker, a Class 8. Limited Wine Manufacturer, a Class 9.
16Class 1 Craft Distiller, a Class 10. Class 2 Craft Distiller,

 

 

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1and a Class 11. Class 1 Brewer 10. Craft Brewer and any future
2Manufacturer's licenses established by law.
3(Source: P.A. 99-282, eff. 8-5-15; 99-642, eff. 7-28-16.)
 
4    (235 ILCS 5/3-12)
5    Sec. 3-12. Powers and duties of State Commission.
6    (a) The State Commission shall have the following powers,
7functions, and duties:
8        (1) To receive applications and to issue licenses to
9    manufacturers, foreign importers, importing distributors,
10    distributors, non-resident dealers, on premise consumption
11    retailers, off premise sale retailers, special event
12    retailer licensees, special use permit licenses, auction
13    liquor licenses, brew pubs, caterer retailers,
14    non-beverage users, railroads, including owners and
15    lessees of sleeping, dining and cafe cars, airplanes,
16    boats, brokers, and wine maker's premises licensees in
17    accordance with the provisions of this Act, and to suspend
18    or revoke such licenses upon the State Commission's
19    determination, upon notice after hearing, that a licensee
20    has violated any provision of this Act or any rule or
21    regulation issued pursuant thereto and in effect for 30
22    days prior to such violation. Except in the case of an
23    action taken pursuant to a violation of Section 6-3, 6-5,
24    or 6-9, any action by the State Commission to suspend or
25    revoke a licensee's license may be limited to the license

 

 

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1    for the specific premises where the violation occurred. An
2    action for a violation of this Act shall be commenced by
3    the State Commission within 2 years after the date the
4    State Commission becomes aware of the violation.
5        In lieu of suspending or revoking a license, the
6    commission may impose a fine, upon the State Commission's
7    determination and notice after hearing, that a licensee has
8    violated any provision of this Act or any rule or
9    regulation issued pursuant thereto and in effect for 30
10    days prior to such violation.
11        For the purpose of this paragraph (1), when determining
12    multiple violations for the sale of alcohol to a person
13    under the age of 21, a second or subsequent violation for
14    the sale of alcohol to a person under the age of 21 shall
15    only be considered if it was committed within 5 years after
16    the date when a prior violation for the sale of alcohol to
17    a person under the age of 21 was committed.
18        The fine imposed under this paragraph may not exceed
19    $500 for each violation. Each day that the activity, which
20    gave rise to the original fine, continues is a separate
21    violation. The maximum fine that may be levied against any
22    licensee, for the period of the license, shall not exceed
23    $20,000. The maximum penalty that may be imposed on a
24    licensee for selling a bottle of alcoholic liquor with a
25    foreign object in it or serving from a bottle of alcoholic
26    liquor with a foreign object in it shall be the destruction

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    areas of overserving consumers and illegal underage
2    purchasing and consumption of alcoholic beverages.
3        (11.1) To license persons providing education and
4    training to alcohol beverage sellers and servers for
5    mandatory and non-mandatory training under the Beverage
6    Alcohol Sellers and Servers Education and Training
7    (BASSET) programs and to develop and administer a public
8    awareness program in Illinois to reduce or eliminate the
9    illegal purchase and consumption of alcoholic beverage
10    products by persons under the age of 21. Application for a
11    license shall be made on forms provided by the State
12    Commission.
13        (12) To develop and maintain a repository of license
14    and regulatory information.
15        (13) (Blank).
16        (14) On or before April 30, 2008 and every 2 years
17    thereafter, the Commission shall present a written report
18    to the Governor and the General Assembly that shall be
19    based on a study of the impact of Public Act 95-634 on the
20    business of soliciting, selling, and shipping wine from
21    inside and outside of this State directly to residents of
22    this State. As part of its report, the Commission shall
23    provide all of the following information:
24            (A) The amount of State excise and sales tax
25        revenues generated.
26            (B) The amount of licensing fees received.

 

 

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

 

 

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

 

 

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1    compliance with State revenue and liquor laws; (2) is not a
2    member of any affiliated group that produces more than
3    25,000 gallons of wine per annum or produces any other
4    alcoholic liquor; (3) will not annually produce for sale
5    more than 25,000 gallons of wine; and (4) will not annually
6    sell more than 5,000 gallons of its wine to retail
7    licensees.
8        (D) A self-distribution exemption holder shall
9    annually certify to the Commission its production of wine
10    in the previous 12 months and its anticipated production
11    and sales for the next 12 months. The Commission may fine,
12    suspend, or revoke a self-distribution exemption after a
13    hearing if it finds that the exemption holder has made a
14    material misrepresentation in its application, violated a
15    revenue or liquor law of Illinois, exceeded production of
16    25,000 gallons of wine in any calendar year, or become part
17    of an affiliated group producing more than 25,000 gallons
18    of wine or any other alcoholic liquor.
19        (E) Except in hearings for violations of this Act or
20    Public Act 95-634 or a bona fide investigation by duly
21    sworn law enforcement officials, the Commission, or its
22    agents, the Commission shall maintain the production and
23    sales information of a self-distribution exemption holder
24    as confidential and shall not release such information to
25    any person.
26        (F) The Commission shall issue regulations governing

 

 

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1    self-distribution exemptions consistent with this Section
2    and this Act.
3        (G) Nothing in this paragraph subsection (17) shall
4    prohibit a self-distribution exemption holder from
5    entering into or simultaneously having a distribution
6    agreement with a licensed Illinois distributor.
7        (H) It is the intent of this paragraph subsection (17)
8    to promote and continue orderly markets. The General
9    Assembly finds that in order to preserve Illinois'
10    regulatory distribution system it is necessary to create an
11    exception for smaller makers of wine as their wines are
12    frequently adjusted in varietals, mixes, vintages, and
13    taste to find and create market niches sometimes too small
14    for distributor or importing distributor business
15    strategies. Limited self-distribution rights will afford
16    and allow smaller makers of wine access to the marketplace
17    in order to develop a customer base without impairing the
18    integrity of the 3-tier system.
19        (18)(A) A class 1 brewer licensee, who must also be
20    either a licensed brewer or licensed non-resident dealer
21    and annually manufacture less than 930,000 gallons of beer,
22    may make application to the State Commission for a
23    self-distribution exemption to allow the sale of not more
24    than 232,500 gallons of the exemption holder's beer per
25    year to retail licensees and to brewers, class 1 brewers,
26    and class 2 brewers that, pursuant to subsection (e) of

 

 

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1    Section 6-4 of this Act, sell beer, cider, or both beer and
2    cider to non-licensees at their breweries.
3        (B) In the application, which shall be sworn under
4    penalty of perjury, the class 1 brewer licensee shall state
5    (1) the date it was established; (2) its volume of beer
6    manufactured and sold for each year since its
7    establishment; (3) its efforts to establish distributor
8    relationships; (4) that a self-distribution exemption is
9    necessary to facilitate the marketing of its beer; and (5)
10    that it will comply with the alcoholic beverage and revenue
11    laws of the United States, this State, and any other state
12    where it is licensed.
13        (C) Any application submitted shall be posted on the
14    State Commission's website at least 45 days prior to action
15    by the State Commission. The State Commission shall approve
16    the application for a self-distribution exemption if the
17    class 1 brewer licensee: (1) is in compliance with the
18    State, revenue, and alcoholic beverage laws; (2) is not a
19    member of any affiliated group that manufactures more than
20    930,000 gallons of beer per annum or produces any other
21    alcoholic beverages; (3) shall not annually manufacture
22    for sale more than 930,000 gallons of beer; (4) shall not
23    annually sell more than 232,500 gallons of its beer to
24    retail licensees or to brewers, class 1 brewers, and class
25    2 brewers that, pursuant to subsection (e) of Section 6-4
26    of this Act, sell beer, cider, or both beer and cider to

 

 

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1    non-licensees at their breweries; and (5) has relinquished
2    any brew pub license held by the licensee, including any
3    ownership interest it held in the licensed brew pub.
4        (D) A self-distribution exemption holder shall
5    annually certify to the State Commission its manufacture of
6    beer during the previous 12 months and its anticipated
7    manufacture and sales of beer for the next 12 months. The
8    State Commission may fine, suspend, or revoke a
9    self-distribution exemption after a hearing if it finds
10    that the exemption holder has made a material
11    misrepresentation in its application, violated a revenue
12    or alcoholic beverage law of Illinois, exceeded the
13    manufacture of 930,000 gallons of beer in any calendar year
14    or became part of an affiliated group manufacturing more
15    than 930,000 gallons of beer or any other alcoholic
16    beverage.
17        (E) The State Commission shall issue rules and
18    regulations governing self-distribution exemptions
19    consistent with this Act.
20        (F) Nothing in this paragraph (18) shall prohibit a
21    self-distribution exemption holder from entering into or
22    simultaneously having a distribution agreement with a
23    licensed Illinois importing distributor or a distributor.
24    If a self-distribution exemption holder enters into a
25    distribution agreement and has assigned distribution
26    rights to an importing distributor or distributor, then the

 

 

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1    self-distribution exemption holder's distribution rights
2    in the assigned territories shall cease in a reasonable
3    time not to exceed 60 days.
4        (G) It is the intent of this paragraph (18) to promote
5    and continue orderly markets. The General Assembly finds
6    that in order to preserve Illinois' regulatory
7    distribution system, it is necessary to create an exception
8    for smaller manufacturers in order to afford and allow such
9    smaller manufacturers of beer access to the marketplace in
10    order to develop a customer base without impairing the
11    integrity of the 3-tier system.
12        (19)(A) A class 1 craft distiller licensee may make
13    application to the State Commission for a
14    self-distribution exemption to allow the sale of not more
15    than 5,000 gallons of the exemption holder's spirits to
16    retail licensees per year.
17        (B) In the application, which shall be sworn under
18    penalty of perjury, the class 1 craft distiller licensee
19    shall state (1) the date it was established; (2) its volume
20    of spirits manufactured and sold for each year since its
21    establishment; (3) its efforts to establish distributor
22    relationships; (4) that a self-distribution exemption is
23    necessary to facilitate the marketing of its spirits; and
24    (5) that it will comply with the alcoholic beverage and
25    revenue laws of the United States, this State, and any
26    other state where it is licensed.

 

 

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1        (C) Any application submitted shall be posted on the
2    State Commission's website at least 45 days prior to action
3    by the State Commission. The State Commission shall approve
4    the application for a self-distribution exemption if the
5    applicant: (1) is in compliance with State revenue and
6    alcoholic beverage laws; (2) is not a member of any
7    affiliated group that produces more than 50,000 gallons of
8    spirits per annum or produces any other alcoholic liquor;
9    (3) does not annually manufacture for sale more than 50,000
10    gallons of spirits; and (4) does not annually sell more
11    than 5,000 gallons of its spirits to retail licensees.
12        (D) A self-distribution exemption holder shall
13    annually certify to the State Commission its manufacture of
14    spirits during the previous 12 months and its anticipated
15    manufacture and sales of spirits for the next 12 months.
16    The State Commission may fine, suspend, or revoke a
17    self-distribution exemption after a hearing if it finds
18    that the exemption holder has made a material
19    misrepresentation in its application, violated a revenue
20    or alcoholic beverage law of Illinois, exceeded the
21    manufacture of 50,000 gallons of spirits in any calendar
22    year, or has become part of an affiliated group
23    manufacturing more than 50,000 gallons of spirits or any
24    other alcoholic beverage.
25        (E) The State Commission shall adopt rules governing
26    self-distribution exemptions consistent with this Act.

 

 

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1        (F) Nothing in this paragraph (19) shall prohibit a
2    self-distribution exemption holder from entering into or
3    simultaneously having a distribution agreement with a
4    licensed Illinois importing distributor or a distributor.
5        (G) It is the intent of this paragraph (19) to promote
6    and continue orderly markets. The General Assembly finds
7    that in order to preserve Illinois' regulatory
8    distribution system, it is necessary to create an exception
9    for smaller manufacturers in order to afford and allow such
10    smaller manufacturers of spirits access to the marketplace
11    in order to develop a customer base without impairing the
12    integrity of the 3-tier system.
13    (b) On or before April 30, 1999, the Commission shall
14present a written report to the Governor and the General
15Assembly that shall be based on a study of the impact of Public
16Act 90-739 on the business of soliciting, selling, and shipping
17alcoholic liquor from outside of this State directly to
18residents of this State.
19    As part of its report, the Commission shall provide the
20following information:
21        (i) the amount of State excise and sales tax revenues
22    generated as a result of Public Act 90-739;
23        (ii) the amount of licensing fees received as a result
24    of Public Act 90-739;
25        (iii) the number of reported violations, the number of
26    cease and desist notices issued by the Commission, the

 

 

10100HB2674ham002- 19 -LRB101 07837 RPS 58674 a

1    number of notices of violations issued to the Department of
2    Revenue, and the number of notices and complaints of
3    violations to law enforcement officials.
4(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
5100-134, eff. 8-18-17; 100-201, eff. 8-18-17; 100-816, eff.
68-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. 8-23-18;
7revised 10-24-18.)
 
8    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
9    Sec. 5-1. Licenses issued by the Illinois Liquor Control
10Commission shall be of the following classes:
11    (a) Manufacturer's license - Class 1. Distiller, Class 2.
12Rectifier, Class 3. Brewer, Class 4. First Class Wine
13Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
14First Class Winemaker, Class 7. Second Class Winemaker, Class
158. Limited Wine Manufacturer, Class 9. Class 1 Craft Distiller,
16Class 10. Class 2 Craft Distiller, Class 11. Class 1 Brewer,
17Class 12 11. Class 2 Brewer,
18    (b) Distributor's license,
19    (c) Importing Distributor's license,
20    (d) Retailer's license,
21    (e) Special Event Retailer's license (not-for-profit),
22    (f) Railroad license,
23    (g) Boat license,
24    (h) Non-Beverage User's license,
25    (i) Wine-maker's premises license,

 

 

10100HB2674ham002- 20 -LRB101 07837 RPS 58674 a

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

 

 

10100HB2674ham002- 21 -LRB101 07837 RPS 58674 a

1herein, may make sales and deliveries of alcoholic liquor to
2rectifiers, importing distributors, distributors, retailers
3and non-beverage users and to no other licensees.
4    Class 3. A Brewer may make sales and deliveries of beer to
5importing distributors and distributors and may make sales as
6authorized under subsection (e) of Section 6-4 of this Act.
7    Class 4. A first class wine-manufacturer may make sales and
8deliveries of up to 50,000 gallons of wine to manufacturers,
9importing distributors and distributors, and to no other
10licensees.
11    Class 5. A second class Wine manufacturer may make sales
12and deliveries of more than 50,000 gallons of wine to
13manufacturers, importing distributors and distributors and to
14no other licensees.
15    Class 6. A first-class wine-maker's license shall allow the
16manufacture of up to 50,000 gallons of wine per year, and the
17storage and sale of such wine to distributors in the State and
18to persons without the State, as may be permitted by law. A
19person who, prior to June 1, 2008 (the effective date of Public
20Act 95-634), is a holder of a first-class wine-maker's license
21and annually produces more than 25,000 gallons of its own wine
22and who distributes its wine to licensed retailers shall cease
23this practice on or before July 1, 2008 in compliance with
24Public Act 95-634.
25    Class 7. A second-class wine-maker's license shall allow
26the manufacture of between 50,000 and 150,000 gallons of wine

 

 

10100HB2674ham002- 22 -LRB101 07837 RPS 58674 a

1per year, and the storage and sale of such wine to distributors
2in this State and to persons without the State, as may be
3permitted by law. A person who, prior to June 1, 2008 (the
4effective date of Public Act 95-634), is a holder of a
5second-class wine-maker's license and annually produces more
6than 25,000 gallons of its own wine and who distributes its
7wine to licensed retailers shall cease this practice on or
8before July 1, 2008 in compliance with Public Act 95-634.
9    Class 8. A limited wine-manufacturer may make sales and
10deliveries not to exceed 40,000 gallons of wine per year to
11distributors, and to non-licensees in accordance with the
12provisions of this Act.
13    Class 9. A class 1 craft distiller license, which may only
14be issued to a licensed distiller or licensed non-resident
15dealer, shall allow the manufacture of up to 50,000 gallons of
16spirits per year provided that the class 1 craft distiller
17licensee does not manufacture more than a combined 50,000
18gallons of spirits per year and is not a member of or
19affiliated with, directly or indirectly, a manufacturer that
20produces more than 50,000 gallons of spirits per year or any
21other alcoholic liquor. A class 1 craft distiller licensee may
22make sales and deliveries to importing distributors and
23distributors and to retail licensees in accordance with the
24conditions set forth in paragraph (19) of subsection (a) of
25Section 3-12 of this Act.
26    A class 1 craft distiller licensee may sell up to 5,000

 

 

10100HB2674ham002- 23 -LRB101 07837 RPS 58674 a

1gallons of such spirits to non-licensees to the extent
2permitted by any exemption approved by the State Commission
3pursuant to Section 6-4 of this Act. A class 1 craft distiller
4license holder may store such spirits at a non-contiguous
5licensed location, but at no time shall a class 1 craft
6distiller license holder directly or indirectly produce in the
7aggregate more than 50,000 gallons of spirits per year.
8    A class 1 craft distiller licensee may hold more than one
9class 1 craft distiller's license. However, a class 1 craft
10distiller that holds more than one class 1 craft distiller
11license shall not manufacture, in the aggregate, more than
1250,000 gallons of spirits by distillation per year and shall
13not sell, in the aggregate, more than 5,000 gallons of such
14spirits to non-licensees in accordance with an exemption
15approved by the State Commission pursuant to Section 6-4 of
16this Act.
17    Class 10. A class 2 craft distiller license, which may only
18be issued to a licensed distiller or licensed non-resident
19dealer, shall allow the manufacture of up to 100,000 gallons of
20spirits per year provided that the class 2 craft distiller
21licensee does not manufacture more than a combined 100,000
22gallons of spirits per year and is not a member of or
23affiliated with, directly or indirectly, a manufacturer that
24produces more than 100,000 gallons of spirits per year or any
25other alcoholic liquor. A class 2 craft distiller licensee may
26make sales and deliveries to importing distributors and

 

 

10100HB2674ham002- 24 -LRB101 07837 RPS 58674 a

1distributors, but shall not make sales or deliveries to any
2other licensee. If the State Commission provides prior
3approval, a class 2 craft distiller licensee may annually
4transfer up to 100,000 gallons of spirits manufactured by that
5class 2 craft distiller licensee to the premises of a licensed
6class 2 craft distiller wholly owned and operated by the same
7licensee. A class 2 craft distiller may transfer spirits to a
8distilling pub wholly owned and operated by the class 2 craft
9distiller subject to the following limitations and
10restrictions: (i) the transfer shall not annually exceed more
11than 5,000 gallons; (ii) the annual amount transferred shall
12reduce the distilling pub's annual permitted production limit;
13(iii) all spirits transferred shall be subject to Article VIII
14of this Act; (iv) a written record shall be maintained by the
15distiller and distilling pub specifying the amount, date of
16delivery, and receipt of the product by the distilling pub; and
17(v) the distilling pub shall be located no farther than 80
18miles from the class 2 craft distiller's licensed location.
19    A class 2 craft distiller shall, prior to transferring
20spirits to a distilling pub wholly owned by the class 2 craft
21distiller, furnish a written notice to the State Commission of
22intent to transfer spirits setting forth the name and address
23of the distilling pub and shall annually submit to the State
24Commission a verified report identifying the total gallons of
25spirits transferred to the distilling pub wholly owned by the
26class 2 craft distiller.

 

 

10100HB2674ham002- 25 -LRB101 07837 RPS 58674 a

1    A class 2 craft distiller license holder may store such
2spirits at a non-contiguous licensed location, but at no time
3shall a class 2 craft distiller license holder directly or
4indirectly produce in the aggregate more than 100,000 gallons
5of spirits per year.
6A craft distiller license shall allow the manufacture of up to
7100,000 gallons of spirits by distillation per year and the
8storage of such spirits. If a craft distiller licensee,
9including a craft distiller licensee who holds more than one
10craft distiller license, is not affiliated with any other
11manufacturer of spirits, then the craft distiller licensee may
12sell such spirits to distributors in this State and up to 2,500
13gallons of such spirits to non-licensees to the extent
14permitted by any exemption approved by the Commission pursuant
15to Section 6-4 of this Act. A craft distiller license holder
16may store such spirits at a non-contiguous licensed location,
17but at no time shall a craft distiller license holder directly
18or indirectly produce in the aggregate more than 100,000
19gallons of spirits per year.
20    A craft distiller licensee may hold more than one craft
21distiller's license. However, a craft distiller that holds more
22than one craft distiller license shall not manufacture, in the
23aggregate, more than 100,000 gallons of spirits by distillation
24per year and shall not sell, in the aggregate, more than 2,500
25gallons of such spirits to non-licensees in accordance with an
26exemption approved by the State Commission pursuant to Section

 

 

10100HB2674ham002- 26 -LRB101 07837 RPS 58674 a

16-4 of this Act.
2    Any craft distiller licensed under this Act who on July 28,
32010 (the effective date of Public Act 96-1367) was licensed as
4a distiller and manufactured no more spirits than permitted by
5this Section shall not be required to pay the initial licensing
6fee.
7    Class 11 10. A class 1 brewer license, which may only be
8issued to a licensed brewer or licensed non-resident dealer,
9shall allow the manufacture of up to 930,000 gallons of beer
10per year provided that the class 1 brewer licensee does not
11manufacture more than a combined 930,000 gallons of beer per
12year and is not a member of or affiliated with, directly or
13indirectly, a manufacturer that produces more than 930,000
14gallons of beer per year or any other alcoholic liquor. A class
151 brewer licensee may make sales and deliveries to importing
16distributors and distributors and to retail licensees in
17accordance with the conditions set forth in paragraph (18) of
18subsection (a) of Section 3-12 of this Act. If the State
19Commission provides prior approval, a class 1 brewer may
20annually transfer up to 930,000 gallons of beer manufactured by
21that class 1 brewer to the premises of a licensed class 1
22brewer wholly owned and operated by the same licensee.
23    Class 12 11. A class 2 brewer license, which may only be
24issued to a licensed brewer or licensed non-resident dealer,
25shall allow the manufacture of up to 3,720,000 gallons of beer
26per year provided that the class 2 brewer licensee does not

 

 

10100HB2674ham002- 27 -LRB101 07837 RPS 58674 a

1manufacture more than a combined 3,720,000 gallons of beer per
2year and is not a member of or affiliated with, directly or
3indirectly, a manufacturer that produces more than 3,720,000
4gallons of beer per year or any other alcoholic liquor. A class
52 brewer licensee may make sales and deliveries to importing
6distributors and distributors, but shall not make sales or
7deliveries to any other licensee. If the State Commission
8provides prior approval, a class 2 brewer licensee may annually
9transfer up to 3,720,000 gallons of beer manufactured by that
10class 2 brewer licensee to the premises of a licensed class 2
11brewer wholly owned and operated by the same licensee.
12    A class 2 brewer may transfer beer to a brew pub wholly
13owned and operated by the class 2 brewer subject to the
14following limitations and restrictions: (i) the transfer shall
15not annually exceed more than 31,000 gallons; (ii) the annual
16amount transferred shall reduce the brew pub's annual permitted
17production limit; (iii) all beer transferred shall be subject
18to Article VIII of this Act; (iv) a written record shall be
19maintained by the brewer and brew pub specifying the amount,
20date of delivery, and receipt of the product by the brew pub;
21and (v) the brew pub shall be located no farther than 80 miles
22from the class 2 brewer's licensed location.
23    A class 2 brewer shall, prior to transferring beer to a
24brew pub wholly owned by the class 2 brewer, furnish a written
25notice to the State Commission of intent to transfer beer
26setting forth the name and address of the brew pub and shall

 

 

10100HB2674ham002- 28 -LRB101 07837 RPS 58674 a

1annually submit to the State Commission a verified report
2identifying the total gallons of beer transferred to the brew
3pub wholly owned by the class 2 brewer.
4    (a-1) A manufacturer which is licensed in this State to
5make sales or deliveries of alcoholic liquor to licensed
6distributors or importing distributors and which enlists
7agents, representatives, or individuals acting on its behalf
8who contact licensed retailers on a regular and continual basis
9in this State must register those agents, representatives, or
10persons acting on its behalf with the State Commission.
11    Registration of agents, representatives, or persons acting
12on behalf of a manufacturer is fulfilled by submitting a form
13to the Commission. The form shall be developed by the
14Commission and shall include the name and address of the
15applicant, the name and address of the manufacturer he or she
16represents, the territory or areas assigned to sell to or
17discuss pricing terms of alcoholic liquor, and any other
18questions deemed appropriate and necessary. All statements in
19the forms required to be made by law or by rule shall be deemed
20material, and any person who knowingly misstates any material
21fact under oath in an application is guilty of a Class B
22misdemeanor. Fraud, misrepresentation, false statements,
23misleading statements, evasions, or suppression of material
24facts in the securing of a registration are grounds for
25suspension or revocation of the registration. The State
26Commission shall post a list of registered agents on the

 

 

10100HB2674ham002- 29 -LRB101 07837 RPS 58674 a

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

 

 

10100HB2674ham002- 30 -LRB101 07837 RPS 58674 a

1dealers and foreign importers only. No person licensed as an
2importing distributor shall be granted a non-resident dealer's
3license.
4    (d) A retailer's license shall allow the licensee to sell
5and offer for sale at retail, only in the premises specified in
6the license, alcoholic liquor for use or consumption, but not
7for resale in any form. Nothing in Public Act 95-634 shall
8deny, limit, remove, or restrict the ability of a holder of a
9retailer's license to transfer, deliver, or ship alcoholic
10liquor to the purchaser for use or consumption subject to any
11applicable local law or ordinance. Any retail license issued to
12a manufacturer shall only permit the manufacturer to sell beer
13at retail on the premises actually occupied by the
14manufacturer. For the purpose of further describing the type of
15business conducted at a retail licensed premises, a retailer's
16licensee may be designated by the State Commission as (i) an on
17premise consumption retailer, (ii) an off premise sale
18retailer, or (iii) a combined on premise consumption and off
19premise sale retailer.
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

 

 

10100HB2674ham002- 31 -LRB101 07837 RPS 58674 a

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.

 

 

10100HB2674ham002- 32 -LRB101 07837 RPS 58674 a

1    Nothing in this Act prohibits an Illinois licensed
2distributor from offering credit or a refund for unused,
3salable alcoholic liquors to a holder of a special event
4retailer's license or from the special event retailer's
5licensee from accepting the credit or refund of alcoholic
6liquors at the conclusion of the event specified in the
7license.
8    (f) A railroad license shall permit the licensee to import
9alcoholic liquors into this State from any point in the United
10States outside this State and to store such alcoholic liquors
11in this State; to make wholesale purchases of alcoholic liquors
12directly from manufacturers, foreign importers, distributors
13and importing distributors from within or outside this State;
14and to store such alcoholic liquors in this State; provided
15that the above powers may be exercised only in connection with
16the importation, purchase or storage of alcoholic liquors to be
17sold or dispensed on a club, buffet, lounge or dining car
18operated on an electric, gas or steam railway in this State;
19and provided further, that railroad licensees exercising the
20above powers shall be subject to all provisions of Article VIII
21of this Act as applied to importing distributors. A railroad
22license shall also permit the licensee to sell or dispense
23alcoholic liquors on any club, buffet, lounge or dining car
24operated on an electric, gas or steam railway regularly
25operated by a common carrier in this State, but shall not
26permit the sale for resale of any alcoholic liquors to any

 

 

10100HB2674ham002- 33 -LRB101 07837 RPS 58674 a

1licensee within this State. A license shall be obtained for
2each car in which such sales are made.
3    (g) A boat license shall allow the sale of alcoholic liquor
4in individual drinks, on any passenger boat regularly operated
5as a common carrier on navigable waters in this State or on any
6riverboat operated under the Riverboat Gambling Act, which boat
7or riverboat maintains a public dining room or restaurant
8thereon.
9    (h) A non-beverage user's license shall allow the licensee
10to purchase alcoholic liquor from a licensed manufacturer or
11importing distributor, without the imposition of any tax upon
12the business of such licensed manufacturer or importing
13distributor as to such alcoholic liquor to be used by such
14licensee solely for the non-beverage purposes set forth in
15subsection (a) of Section 8-1 of this Act, and such licenses
16shall be divided and classified and shall permit the purchase,
17possession and use of limited and stated quantities of
18alcoholic liquor as follows:
19Class 1, not to exceed ......................... 500 gallons
20Class 2, not to exceed ....................... 1,000 gallons
21Class 3, not to exceed ....................... 5,000 gallons
22Class 4, not to exceed ...................... 10,000 gallons
23Class 5, not to exceed ....................... 50,000 gallons
24    (i) A wine-maker's premises license shall allow a licensee
25that concurrently holds a first-class wine-maker's license to
26sell and offer for sale at retail in the premises specified in

 

 

10100HB2674ham002- 34 -LRB101 07837 RPS 58674 a

1such license not more than 50,000 gallons of the first-class
2wine-maker's wine that is made at the first-class wine-maker's
3licensed premises per year for use or consumption, but not for
4resale in any form. A wine-maker's premises license shall allow
5a licensee who concurrently holds a second-class wine-maker's
6license to sell and offer for sale at retail in the premises
7specified in such license up to 100,000 gallons of the
8second-class wine-maker's wine that is made at the second-class
9wine-maker's licensed premises per year for use or consumption
10but not for resale in any form. A wine-maker's premises license
11shall allow a licensee that concurrently holds a first-class
12wine-maker's license or a second-class wine-maker's license to
13sell and offer for sale at retail at the premises specified in
14the wine-maker's premises license, for use or consumption but
15not for resale in any form, any beer, wine, and spirits
16purchased from a licensed distributor. Upon approval from the
17State Commission, a wine-maker's premises license shall allow
18the licensee to sell and offer for sale at (i) the wine-maker's
19licensed premises and (ii) at up to 2 additional locations for
20use and consumption and not for resale. Each location shall
21require additional licensing per location as specified in
22Section 5-3 of this Act. A wine-maker's premises licensee shall
23secure liquor liability insurance coverage in an amount at
24least equal to the maximum liability amounts set forth in
25subsection (a) of Section 6-21 of this Act.
26    (j) An airplane license shall permit the licensee to import

 

 

10100HB2674ham002- 35 -LRB101 07837 RPS 58674 a

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

 

 

10100HB2674ham002- 36 -LRB101 07837 RPS 58674 a

1brand of alcoholic liquor that it proposes to sell to Illinois
2licensees during the license period, (ii) the foreign importer
3complies with all of the provisions of Section 6-9 of this Act
4with respect to registration of such Illinois licensees as may
5be granted the right to sell such brands at wholesale, and
6(iii) the foreign importer complies with the provisions of
7Sections 6-5 and 6-6 of this Act to the same extent that these
8provisions apply to manufacturers.
9    (l) (i) A broker's license shall be required of all persons
10who solicit orders for, offer to sell or offer to supply
11alcoholic liquor to retailers in the State of Illinois, or who
12offer to retailers to ship or cause to be shipped or to make
13contact with distillers, rectifiers, brewers or manufacturers
14or any other party within or without the State of Illinois in
15order that alcoholic liquors be shipped to a distributor,
16importing distributor or foreign importer, whether such
17solicitation or offer is consummated within or without the
18State of Illinois.
19    No holder of a retailer's license issued by the Illinois
20Liquor Control Commission shall purchase or receive any
21alcoholic liquor, the order for which was solicited or offered
22for sale to such retailer by a broker unless the broker is the
23holder of a valid broker's license.
24    The broker shall, upon the acceptance by a retailer of the
25broker's solicitation of an order or offer to sell or supply or
26deliver or have delivered alcoholic liquors, promptly forward

 

 

10100HB2674ham002- 37 -LRB101 07837 RPS 58674 a

1to the Illinois Liquor Control Commission a notification of
2said transaction in such form as the Commission may by
3regulations prescribe.
4    (ii) A broker's license shall be required of a person
5within this State, other than a retail licensee, who, for a fee
6or commission, promotes, solicits, or accepts orders for
7alcoholic liquor, for use or consumption and not for resale, to
8be shipped from this State and delivered to residents outside
9of this State by an express company, common carrier, or
10contract carrier. This Section does not apply to any person who
11promotes, solicits, or accepts orders for wine as specifically
12authorized in Section 6-29 of this Act.
13    A broker's license under this subsection (l) shall not
14entitle the holder to buy or sell any alcoholic liquors for his
15own account or to take or deliver title to such alcoholic
16liquors.
17    This subsection (l) shall not apply to distributors,
18employees of distributors, or employees of a manufacturer who
19has registered the trademark, brand or name of the alcoholic
20liquor pursuant to Section 6-9 of this Act, and who regularly
21sells such alcoholic liquor in the State of Illinois only to
22its registrants thereunder.
23    Any agent, representative, or person subject to
24registration pursuant to subsection (a-1) of this Section shall
25not be eligible to receive a broker's license.
26    (m) A non-resident dealer's license shall permit such

 

 

10100HB2674ham002- 38 -LRB101 07837 RPS 58674 a

1licensee to ship into and warehouse alcoholic liquor into this
2State from any point outside of this State, and to sell such
3alcoholic liquor to Illinois licensed foreign importers and
4importing distributors and to no one else in this State;
5provided that (i) said non-resident dealer shall register with
6the Illinois Liquor Control Commission each and every brand of
7alcoholic liquor which it proposes to sell to Illinois
8licensees during the license period, (ii) it shall comply with
9all of the provisions of Section 6-9 hereof with respect to
10registration of such Illinois licensees as may be granted the
11right to sell such brands at wholesale by duly filing such
12registration statement, thereby authorizing the non-resident
13dealer to proceed to sell such brands at wholesale, and (iii)
14the non-resident dealer shall comply with the provisions of
15Sections 6-5 and 6-6 of this Act to the same extent that these
16provisions apply to manufacturers. No person licensed as a
17non-resident dealer shall be granted a distributor's or
18importing distributor's license.
19    (n) A brew pub license shall allow the licensee to only (i)
20manufacture up to 155,000 gallons of beer per year only on the
21premises specified in the license, (ii) make sales of the beer
22manufactured on the premises or, with the approval of the
23Commission, beer manufactured on another brew pub licensed
24premises that is wholly owned and operated by the same licensee
25to importing distributors, distributors, and to non-licensees
26for use and consumption, (iii) store the beer upon the

 

 

10100HB2674ham002- 39 -LRB101 07837 RPS 58674 a

1premises, (iv) sell and offer for sale at retail from the
2licensed premises for off-premises consumption no more than
3155,000 gallons per year so long as such sales are only made
4in-person, (v) sell and offer for sale at retail for use and
5consumption on the premises specified in the license any form
6of alcoholic liquor purchased from a licensed distributor or
7importing distributor, and (vi) with the prior approval of the
8Commission, annually transfer no more than 155,000 gallons of
9beer manufactured on the premises to a licensed brew pub wholly
10owned and operated by the same licensee.
11    A brew pub licensee shall not under any circumstance sell
12or offer for sale beer manufactured by the brew pub licensee to
13retail licensees.
14    A person who holds a class 2 brewer license may
15simultaneously hold a brew pub license if the class 2 brewer
16(i) does not, under any circumstance, sell or offer for sale
17beer manufactured by the class 2 brewer to retail licensees;
18(ii) does not hold more than 3 brew pub licenses in this State;
19(iii) does not manufacture more than a combined 3,720,000
20gallons of beer per year, including the beer manufactured at
21the brew pub; and (iv) 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 any other alcoholic
24liquor.
25    Notwithstanding any other provision of this Act, a licensed
26brewer, class 2 brewer, or non-resident dealer who before July

 

 

10100HB2674ham002- 40 -LRB101 07837 RPS 58674 a

11, 2015 manufactured less than 3,720,000 gallons of beer per
2year and held a brew pub license on or before July 1, 2015 may
3(i) continue to qualify for and hold that brew pub license for
4the licensed premises and (ii) manufacture more than 3,720,000
5gallons of beer per year and continue to qualify for and hold
6that brew pub license if that brewer, class 2 brewer, or
7non-resident dealer does not simultaneously hold a class 1
8brewer license and 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 that produces any other
11alcoholic liquor.
12    (o) A caterer retailer license shall allow the holder to
13serve alcoholic liquors as an incidental part of a food service
14that serves prepared meals which excludes the serving of snacks
15as the primary meal, either on or off-site whether licensed or
16unlicensed.
17    (p) An auction liquor license shall allow the licensee to
18sell and offer for sale at auction wine and spirits for use or
19consumption, or for resale by an Illinois liquor licensee in
20accordance with provisions of this Act. An auction liquor
21license will be issued to a person and it will permit the
22auction liquor licensee to hold the auction anywhere in the
23State. An auction liquor license must be obtained for each
24auction at least 14 days in advance of the auction date.
25    (q) A special use permit license shall allow an Illinois
26licensed retailer to transfer a portion of its alcoholic liquor

 

 

10100HB2674ham002- 41 -LRB101 07837 RPS 58674 a

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

 

 

10100HB2674ham002- 42 -LRB101 07837 RPS 58674 a

1applicant for a winery shipper's license intends to ship wine,
2including the name and address of any third party, except for a
3common carrier, authorized to ship wine on behalf of the
4manufacturer. The application form shall include an
5acknowledgement consenting to the jurisdiction of the
6Commission, the Illinois Department of Revenue, and the courts
7of this State concerning the enforcement of this Act and any
8related laws, rules, and regulations, including authorizing
9the Department of Revenue and the Commission to conduct audits
10for the purpose of ensuring compliance with Public Act 95-634,
11and an acknowledgement that the wine manufacturer is in
12compliance with Section 6-2 of this Act. Any third party,
13except for a common carrier, authorized to ship wine on behalf
14of a first-class or second-class wine manufacturer's licensee,
15a first-class or second-class wine-maker's licensee, a limited
16wine manufacturer's licensee, or a person who is licensed to
17make wine under the laws of another state shall also be
18disclosed by the winery shipper's licensee, and a copy of the
19written appointment of the third-party wine provider, except
20for a common carrier, to the wine manufacturer shall be filed
21with the State Commission as a supplement to the winery
22shipper's license application or any renewal thereof. The
23winery shipper's license holder shall affirm under penalty of
24perjury, as part of the winery shipper's license application or
25renewal, that he or she only ships wine, either directly or
26indirectly through a third-party provider, from the licensee's

 

 

10100HB2674ham002- 43 -LRB101 07837 RPS 58674 a

1own production.
2    Except for a common carrier, a third-party provider
3shipping wine on behalf of a winery shipper's license holder is
4the agent of the winery shipper's license holder and, as such,
5a winery shipper's license holder is responsible for the acts
6and omissions of the third-party provider acting on behalf of
7the license holder. A third-party provider, except for a common
8carrier, that engages in shipping wine into Illinois on behalf
9of a winery shipper's license holder shall consent to the
10jurisdiction of the State Commission and the State. Any
11third-party, except for a common carrier, holding such an
12appointment shall, by February 1 of each calendar year and upon
13request by the State Commission or the Department of Revenue,
14file with the State Commission a statement detailing each
15shipment made to an Illinois resident. The statement shall
16include the name and address of the third-party provider filing
17the statement, the time period covered by the statement, and
18the following information:
19        (1) the name, address, and license number of the winery
20    shipper on whose behalf the shipment was made;
21        (2) the quantity of the products delivered; and
22        (3) the date and address of the shipment.
23If the Department of Revenue or the State Commission requests a
24statement under this paragraph, the third-party provider must
25provide that statement no later than 30 days after the request
26is made. Any books, records, supporting papers, and documents

 

 

10100HB2674ham002- 44 -LRB101 07837 RPS 58674 a

1containing information and data relating to a statement under
2this paragraph shall be kept and preserved for a period of 3
3years, unless their destruction sooner is authorized, in
4writing, by the Director of Revenue, and shall be open and
5available to inspection by the Director of Revenue or the State
6Commission or any duly authorized officer, agent, or employee
7of the State Commission or the Department of Revenue, at all
8times during business hours of the day. Any person who violates
9any provision of this paragraph or any rule of the State
10Commission for the administration and enforcement of the
11provisions of this paragraph is guilty of a Class C
12misdemeanor. In case of a continuing violation, each day's
13continuance thereof shall be a separate and distinct offense.
14    The State Commission shall adopt rules as soon as
15practicable to implement the requirements of Public Act 99-904
16and shall adopt rules prohibiting any such third-party
17appointment of a third-party provider, except for a common
18carrier, that has been deemed by the State Commission to have
19violated the provisions of this Act with regard to any winery
20shipper licensee.
21    A winery shipper licensee must pay to the Department of
22Revenue the State liquor gallonage tax under Section 8-1 for
23all wine that is sold by the licensee and shipped to a person
24in this State. For the purposes of Section 8-1, a winery
25shipper licensee shall be taxed in the same manner as a
26manufacturer of wine. A licensee who is not otherwise required

 

 

10100HB2674ham002- 45 -LRB101 07837 RPS 58674 a

1to register under the Retailers' Occupation Tax Act must
2register under the Use Tax Act to collect and remit use tax to
3the Department of Revenue for all gallons of wine that are sold
4by the licensee and shipped to persons in this State. If a
5licensee fails to remit the tax imposed under this Act in
6accordance with the provisions of Article VIII of this Act, the
7winery shipper's license shall be revoked in accordance with
8the provisions of Article VII of this Act. If a licensee fails
9to properly register and remit tax under the Use Tax Act or the
10Retailers' Occupation Tax Act for all wine that is sold by the
11winery shipper and shipped to persons in this State, the winery
12shipper's license shall be revoked in accordance with the
13provisions of Article VII of this Act.
14    A winery shipper licensee must collect, maintain, and
15submit to the Commission on a semi-annual basis the total
16number of cases per resident of wine shipped to residents of
17this State. A winery shipper licensed under this subsection (r)
18must comply with the requirements of Section 6-29 of this Act.
19    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
20Section 3-12, the State Commission may receive, respond to, and
21investigate any complaint and impose any of the remedies
22specified in paragraph (1) of subsection (a) of Section 3-12.
23    As used in this subsection, "third-party provider" means
24any entity that provides fulfillment house services, including
25warehousing, packaging, distribution, order processing, or
26shipment of wine, but not the sale of wine, on behalf of a

 

 

10100HB2674ham002- 46 -LRB101 07837 RPS 58674 a

1licensed winery shipper.
2    (s) A craft distiller premises tasting permit license shall
3allow an Illinois licensed class 1 craft distiller (i) to
4transfer a portion of its alcoholic liquor inventory from its
5craft distiller licensed premises to the premises specified in
6the license hereby created, (ii) to sell and offer for sale at
7retail, but not for resale in any form, up to 5,000 gallons of
8the transferred alcoholic liquor to the extent permitted by any
9exemption approved by the State Commission pursuant to Section
106-4, and (iii) to sell and offer for sale at retail for use and
11consumption on the premises specified in the license vermouth
12liquor purchased from a licensed distributor or importing
13distributor. Upon approval from the State Commission, a class 1
14craft distiller premises permit license shall allow the
15licensee to sell and offer for sale at (i) the class 1 craft
16distiller's licensed premises and (ii) up to one additional
17location for use and consumption on the premises and not for
18resale. Each location shall require additional licensing per
19location as specified in Section 5-3 of this Act. and to
20conduct a sampling, only in the premises specified in the
21license hereby created, of the transferred alcoholic liquor in
22accordance with subsection (c) of Section 6-31 of this Act. The
23transferred alcoholic liquor may not be sold or resold in any
24form. An applicant for the craft distiller premises tasting
25permit license must also submit with the application proof
26satisfactory to the State Commission that the applicant will

 

 

10100HB2674ham002- 47 -LRB101 07837 RPS 58674 a

1provide dram shop liability insurance to the maximum limits and
2have local authority approval.
3    (t) A brewer warehouse permit may be issued to the holder
4of a class 1 brewer license or a class 2 brewer license. If the
5holder of the permit is a class 1 brewer licensee, the brewer
6warehouse permit shall allow the holder to store or warehouse
7up to 930,000 gallons of tax-determined beer manufactured by
8the holder of the permit at the premises specified on the
9permit. If the holder of the permit is a class 2 brewer
10licensee, the brewer warehouse permit shall allow the holder to
11store or warehouse up to 3,720,000 gallons of tax-determined
12beer manufactured by the holder of the permit at the premises
13specified on the permit. Sales to non-licensees are prohibited
14at the premises specified in the brewer warehouse permit.
15    (u) A distilling pub license shall allow the licensee to
16only (i) manufacture up to 5,000 gallons of spirits per year
17only on the premises specified in the license, (ii) make sales
18of the spirits manufactured on the premises or, with the
19approval of the State Commission, spirits manufactured on
20another distilling pub licensed premises that is wholly owned
21and operated by the same licensee to importing distributors and
22distributors and to non-licensees for use and consumption,
23(iii) store the spirits upon the premises, (iv) sell and offer
24for sale at retail from the licensed premises for off-premises
25consumption no more than 5,000 gallons per year so long as such
26sales are only made in-person, (v) sell and offer for sale at

 

 

10100HB2674ham002- 48 -LRB101 07837 RPS 58674 a

1retail for use and consumption on the premises specified in the
2license any form of alcoholic liquor purchased from a licensed
3distributor or importing distributor, and (vi) with the prior
4approval of the State Commission, annually transfer no more
5than 5,000 gallons of spirits manufactured on the premises to a
6licensed distilling pub wholly owned and operated by the same
7licensee.
8    A distilling pub licensee shall not under any circumstance
9sell or offer for sale spirits manufactured by the distilling
10pub licensee to retail licensees.
11    A person who holds a class 2 craft distiller license may
12simultaneously hold a distilling pub license if the class 2
13craft distiller (i) does not, under any circumstance, sell or
14offer for sale spirits manufactured by the class 2 craft
15distiller to retail licensees; (ii) does not hold more than 3
16distilling pub licenses in this State; (iii) does not
17manufacture more than a combined 100,000 gallons of spirits per
18year, including the spirits manufactured at the distilling pub;
19and (iv) is not a member of or affiliated with, directly or
20indirectly, a manufacturer that produces more than 100,000
21gallons of spirits per year or any other alcoholic liquor.
22    (v) A craft distiller warehouse permit may be issued to the
23holder of a craft distiller premises license. The craft
24distiller warehouse permit shall allow the holder to store or
25warehouse up to 500,000 gallons of spirits manufactured by the
26holder of the permit at the premises specified on the permit.

 

 

10100HB2674ham002- 49 -LRB101 07837 RPS 58674 a

1Sales to non-licensees are prohibited at the premises specified
2in the craft distiller warehouse permit.
3(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
499-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
51-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
6eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
7revised 10-2-18.)
 
8    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
9    Sec. 5-3. License fees. Except as otherwise provided
10herein, at the time application is made to the State Commission
11for a license of any class, the applicant shall pay to the
12State Commission the fee hereinafter provided for the kind of
13license applied for.
14    The fee for licenses issued by the State Commission shall
15be as follows:
16OnlineInitial
17renewallicense
18 or
19 non-online
20 renewal
21    For a manufacturer's license:
22    Class 1. Distiller .................$4,000$5,000
23    Class 2. Rectifier .................4,000 5,000
24    Class 3. Brewer ....................1,200 1,500
25    Class 4. First-class Wine

 

 

10100HB2674ham002- 50 -LRB101 07837 RPS 58674 a

1        Manufacturer ...................750900
2    Class 5. Second-class
3        Wine Manufacturer ..............1,500 1,750
4    Class 6. First-class wine-maker ....750 900
5    Class 7. Second-class wine-maker ...1,500 1,750
6    Class 8. Limited Wine
7        Manufacturer....................250350
8    Class 9. Class 1 Craft Distiller.... 50 75
9    Class 10. Class 2 Craft Distiller... 75 100
10    Class 11 10. Class 1 Brewer..........50 75
11    Class 12 11. Class 2 Brewer.......... 75 100
12    For a Brew Pub License..............1,2001,500
13    For a Distilling Pub License........ 1,200 1,500
14    For a caterer retailer's license....350 500
15    For a foreign importer's license ...25 25
16    For an importing distributor's
17        license.........................2525
18    For a distributor's license
19        (11,250,000 gallons
20        or over)........................1,4502,200
21    For a distributor's license
22        (over 4,500,000 gallons, but
23        under 11,250,000 gallons)....... 9501,450
24    For a distributor's license
25        (4,500,000 gallons or under)....300450
26    For a non-resident dealer's license

 

 

10100HB2674ham002- 51 -LRB101 07837 RPS 58674 a

1        (500,000 gallons or over) ......1,200 1,500
2    For a non-resident dealer's license
3        (under 500,000 gallons) ........250 350
4    For a wine-maker's premises
5        license ........................250500
6    For a winery shipper's license
7        (under 250,000 gallons).........200 350
8    For a winery shipper's license
9        (250,000 or over, but
10        under 500,000 gallons)..........7501,000
11    For a winery shipper's license
12        (500,000 gallons or over).......1,200 1,500
13    For a wine-maker's premises license,
14        second location ................500 1,000
15    For a wine-maker's premises license,
16        third location .................5001,000
17    For a retailer's license ...........600 750
18    For a special event retailer's
19        license, (not-for-profit) ......25 25
20    For a special use permit license,
21        one day only ...................100 150
22        2 days or more .................150 250
23    For a railroad license .............100 150
24    For a boat license .................500 1,000
25    For an airplane license, times the
26        licensee's maximum number of

 

 

10100HB2674ham002- 52 -LRB101 07837 RPS 58674 a

1        aircraft in flight, serving
2        liquor over the State at any
3        given time, which either
4        originate, terminate, or make
5        an intermediate stop in
6        the State.......................100150
7    For a non-beverage user's license:
8        Class 1 ........................2424
9        Class 2 ........................6060
10        Class 3 ........................120120
11        Class 4 ........................240240
12        Class 5 ........................600600
13    For a broker's license .............750 1,000
14    For an auction liquor license ......100 150
15    For a homebrewer special
16        event permit....................2525
17    For a craft distiller
18        premises tasting permit..........25 25
19    For a craft distiller premises
20        permit, second location.........5001,000
21    For a BASSET trainer license........ 300 350
22    For a tasting representative
23        license.........................200300
24    For a brewer warehouse permit....... 2525
25    For a craft distiller
26        warehouse permit...............25 25

 

 

10100HB2674ham002- 53 -LRB101 07837 RPS 58674 a

1    Fees collected under this Section shall be paid into the
2Dram Shop Fund. On and after July 1, 2003 and until June 30,
32016, of the funds received for a retailer's license, in
4addition to the first $175, an additional $75 shall be paid
5into the Dram Shop Fund, and $250 shall be paid into the
6General Revenue Fund. On and after June 30, 2016, one-half of
7the funds received for a retailer's license shall be paid into
8the Dram Shop Fund and one-half of the funds received for a
9retailer's license shall be paid into the General Revenue Fund.
10Beginning June 30, 1990 and on June 30 of each subsequent year
11through June 29, 2003, any balance over $5,000,000 remaining in
12the Dram Shop Fund shall be credited to State liquor licensees
13and applied against their fees for State liquor licenses for
14the following year. The amount credited to each licensee shall
15be a proportion of the balance in the Dram Fund that is the
16same as the proportion of the license fee paid by the licensee
17under this Section for the period in which the balance was
18accumulated to the aggregate fees paid by all licensees during
19that period.
20    No fee shall be paid for licenses issued by the State
21Commission to the following non-beverage users:
22        (a) Hospitals, sanitariums, or clinics when their use
23    of alcoholic liquor is exclusively medicinal, mechanical
24    or scientific.
25        (b) Universities, colleges of learning or schools when
26    their use of alcoholic liquor is exclusively medicinal,

 

 

10100HB2674ham002- 54 -LRB101 07837 RPS 58674 a

1    mechanical or scientific.
2        (c) Laboratories when their use is exclusively for the
3    purpose of scientific research.
4(Source: P.A. 99-448, eff. 8-24-15; 99-902, eff. 8-26-16;
599-904, eff. 8-26-16; 100-201, eff. 8-18-17; 100-816, eff.
68-13-18.)
 
7    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
8    Sec. 6-4. (a) No person licensed by any licensing authority
9as a distiller, or a wine manufacturer, or any subsidiary or
10affiliate thereof, or any officer, associate, member, partner,
11representative, employee, agent or shareholder owning more
12than 5% of the outstanding shares of such person shall be
13issued an importing distributor's or distributor's license,
14nor shall any person licensed by any licensing authority as an
15importing distributor, distributor or retailer, or any
16subsidiary or affiliate thereof, or any officer or associate,
17member, partner, representative, employee, agent or
18shareholder owning more than 5% of the outstanding shares of
19such person be issued a distiller's license, a craft
20distiller's license, or a wine manufacturer's license; and no
21person or persons licensed as a distiller, or class 1 craft
22distiller, or class 2 craft distiller by any licensing
23authority shall have any interest, directly or indirectly, with
24such distributor or importing distributor.
25    However, an importing distributor or distributor, which on

 

 

10100HB2674ham002- 55 -LRB101 07837 RPS 58674 a

1January 1, 1985 is owned by a brewer, or any subsidiary or
2affiliate thereof or any officer, associate, member, partner,
3representative, employee, agent or shareholder owning more
4than 5% of the outstanding shares of the importing distributor
5or distributor referred to in this paragraph, may own or
6acquire an ownership interest of more than 5% of the
7outstanding shares of a wine manufacturer and be issued a wine
8manufacturer's license by any licensing authority.
9    (b) The foregoing provisions shall not apply to any person
10licensed by any licensing authority as a distiller or wine
11manufacturer, or to any subsidiary or affiliate of any
12distiller or wine manufacturer who shall have been heretofore
13licensed by the State Commission as either an importing
14distributor or distributor during the annual licensing period
15expiring June 30, 1947, and shall actually have made sales
16regularly to retailers.
17    (c) Provided, however, that in such instances where a
18distributor's or importing distributor's license has been
19issued to any distiller or wine manufacturer or to any
20subsidiary or affiliate of any distiller or wine manufacturer
21who has, during the licensing period ending June 30, 1947, sold
22or distributed as such licensed distributor or importing
23distributor alcoholic liquors and wines to retailers, such
24distiller or wine manufacturer or any subsidiary or affiliate
25of any distiller or wine manufacturer holding such
26distributor's or importing distributor's license may continue

 

 

10100HB2674ham002- 56 -LRB101 07837 RPS 58674 a

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

 

 

10100HB2674ham002- 57 -LRB101 07837 RPS 58674 a

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

 

 

10100HB2674ham002- 58 -LRB101 07837 RPS 58674 a

1will sell beer to non-licensees.
2    A person licensed as a class 1 craft distiller or a class 2
3craft distiller, including a person who holds more than one
4class 1 craft distiller or class 2 craft distiller license, not
5affiliated with any other person manufacturing spirits shall be
6permitted may be authorized by the Commission to sell up to
75,000 2,500 gallons of spirits produced by the person to
8non-licensees on the licensed premises for on-premises on or
9off-premises consumption for the premises in which he or she
10actually conducts business permitting only the retail sale of
11spirits manufactured at such premises. A person licensed as a
12class 1 craft distiller shall also be permitted to sell
13vermouth on the licensed premises for on-premises consumption
14for the premises in which he or she actually conducts business
15permitting only the retail sale of spirits manufactured at the
16premises. Such sales shall be limited to on-premises, in-person
17sales only, for lawful consumption on or off premises, and such
18authorization shall be considered a privilege granted by the
19class 1 craft distiller or class 2 craft distiller license. A
20craft distiller licensed for retail sale shall secure liquor
21liability insurance coverage in an amount at least equal to the
22maximum liability amounts set forth in subsection (a) of
23Section 6-21 of this Act.
24    A class 1 or class 2 craft distiller license holder shall
25not deliver any alcoholic liquor to any non-licensee off the
26licensed premises. A class 1 craft distiller or class 2 craft

 

 

10100HB2674ham002- 59 -LRB101 07837 RPS 58674 a

1distiller shall affirm in its annual craft distiller's license
2application that it does not produce more than 100,000 gallons
3of distilled spirits or 50,000 gallons of distilled spirits,
4whichever is applicable, annually and that the craft distiller
5does not sell more than 5,000 2,500 gallons of spirits to
6non-licensees for on or off-premises consumption. In the
7application, which shall be sworn under penalty of perjury, the
8class 1 craft distiller or class 2 craft distiller shall state
9the volume of production and sales for each year since the
10class 1 craft distiller's or class 2 craft distiller's
11establishment.
12    (f) (Blank).
13    (g) Notwithstanding any of the foregoing prohibitions, a
14limited wine manufacturer may sell at retail at its
15manufacturing site for on or off premises consumption and may
16sell to distributors. A limited wine manufacturer licensee
17shall secure liquor liability insurance coverage in an amount
18at least equal to the maximum liability amounts set forth in
19subsection (a) of Section 6-21 of this Act.
20    (h) The changes made to this Section by Public Act 99-47
21shall not diminish or impair the rights of any person, whether
22a distiller, wine manufacturer, agent, or affiliate thereof,
23who requested in writing and submitted documentation to the
24State Commission on or before February 18, 2015 to be approved
25for a retail license pursuant to what has heretofore been
26subsection (f); provided that, on or before that date, the

 

 

10100HB2674ham002- 60 -LRB101 07837 RPS 58674 a

1State Commission considered the intent of that person to apply
2for the retail license under that subsection and, by recorded
3vote, the State Commission approved a resolution indicating
4that such a license application could be lawfully approved upon
5that person duly filing a formal application for a retail
6license and if that person, within 90 days of the State
7Commission appearance and recorded vote, first filed an
8application with the appropriate local commission, which
9application was subsequently approved by the appropriate local
10commission prior to consideration by the State Commission of
11that person's application for a retail license. It is further
12provided that the State Commission may approve the person's
13application for a retail license or renewals of such license if
14such person continues to diligently adhere to all
15representations made in writing to the State Commission on or
16before February 18, 2015, or thereafter, or in the affidavit
17filed by that person with the State Commission to support the
18issuance of a retail license and to abide by all applicable
19laws and duly adopted rules.
20(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
2199-642, eff. 7-28-16; 99-902, eff. 8-26-16; 100-201, eff.
228-18-17; 100-816, eff. 8-13-18; 100-885, eff. 8-14-18; revised
2310-24-18.)
 
24    (235 ILCS 5/6-31)
25    Sec. 6-31. Product sampling.

 

 

10100HB2674ham002- 61 -LRB101 07837 RPS 58674 a

1    (a) Retailer, distributor, importing distributor,
2manufacturer and nonresident dealer licensees may conduct
3product sampling for consumption at a licensed retail location.
4Up to 3 samples, consisting of no more than (i) 1/4 ounce of
5distilled spirits, (ii) one ounce of wine, or (iii) 2 ounces of
6beer may be served to a consumer in one day.
7    (b) Notwithstanding the provisions of subsection (a), an
8on-premises retail licensee may offer for sale and serve more
9than one drink per person for sampling purposes. In any event,
10all provisions of Section 6-28 shall apply to an on-premises
11retail licensee that conducts product sampling.
12    (c)(Blank). A craft distiller tasting permit licensee may
13conduct product sampling of distilled spirits for consumption
14at the location specified in the craft distiller tasting permit
15license. Up to 3 samples, consisting of no more than 1/4 ounce
16of distilled spirits, may be served to a consumer in one day.
17(Source: P.A. 99-46, eff. 7-15-15; 99-902, eff. 8-26-16.)".