HB3610 EngrossedLRB101 08863 RPS 53953 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Section 5-1 as follows:
 
6    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
7    Sec. 5-1. Licenses issued by the Illinois Liquor Control
8Commission shall be of the following classes:
9    (a) Manufacturer's license - Class 1. Distiller, Class 2.
10Rectifier, Class 3. Brewer, Class 4. First Class Wine
11Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
12First Class Winemaker, Class 7. Second Class Winemaker, Class
138. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1410. Class 1 Brewer, Class 11. Class 2 Brewer,
15    (b) Distributor's license,
16    (c) Importing Distributor's license,
17    (d) Retailer's license,
18    (e) Special Event Retailer's license (not-for-profit),
19    (f) Railroad license,
20    (g) Boat license,
21    (h) Non-Beverage User's license,
22    (i) Wine-maker's premises license,
23    (j) Airplane license,

 

 

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

 

 

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

 

 

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1effective date of Public Act 95-634), is a holder of a
2second-class wine-maker's license and annually produces more
3than 25,000 gallons of its own wine and who distributes its
4wine to licensed retailers shall cease this practice on or
5before July 1, 2008 in compliance with Public Act 95-634.
6    Class 8. A limited wine-manufacturer may make sales and
7deliveries not to exceed 40,000 gallons of wine per year to
8distributors, and to non-licensees in accordance with the
9provisions of this Act.
10    Class 9. A craft distiller license shall allow the
11manufacture of up to 100,000 gallons of spirits by distillation
12per year and the storage of such spirits. If a craft distiller
13licensee, including a craft distiller licensee who holds more
14than one craft distiller license, is not affiliated with any
15other manufacturer of spirits, then the craft distiller
16licensee may sell such spirits to distributors in this State
17and up to 2,500 gallons of such spirits to non-licensees to the
18extent permitted by any exemption approved by the Commission
19pursuant to Section 6-4 of this Act. A craft distiller license
20holder may store such spirits at a non-contiguous licensed
21location, but at no time shall a craft distiller license holder
22directly or indirectly produce in the aggregate more than
23100,000 gallons of spirits per year.
24    A craft distiller licensee may hold more than one craft
25distiller's license. However, a craft distiller that holds more
26than one craft distiller license shall not manufacture, in the

 

 

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1aggregate, more than 100,000 gallons of spirits by distillation
2per year and shall not sell, in the aggregate, more than 2,500
3gallons of such spirits to non-licensees in accordance with an
4exemption approved by the State Commission pursuant to Section
56-4 of this Act.
6    Any craft distiller licensed under this Act who on July 28,
72010 (the effective date of Public Act 96-1367) was licensed as
8a distiller and manufactured no more spirits than permitted by
9this Section shall not be required to pay the initial licensing
10fee.
11    Class 10. A class 1 brewer license, which may only be
12issued to a licensed brewer or licensed non-resident dealer,
13shall allow the manufacture of up to 930,000 gallons of beer
14per year provided that the class 1 brewer licensee does not
15manufacture more than a combined 930,000 gallons of beer per
16year and is not a member of or affiliated with, directly or
17indirectly, a manufacturer that produces more than 930,000
18gallons of beer per year or any other alcoholic liquor. A class
191 brewer licensee may make sales and deliveries to importing
20distributors and distributors and to retail licensees in
21accordance with the conditions set forth in paragraph (18) of
22subsection (a) of Section 3-12 of this Act. If the State
23Commission provides prior approval, a class 1 brewer may
24annually transfer up to 930,000 gallons of beer manufactured by
25that class 1 brewer to the premises of a licensed class 1
26brewer wholly owned and operated by the same licensee.

 

 

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1    Class 11. A class 2 brewer license, which may only be
2issued to a licensed brewer or licensed non-resident dealer,
3shall allow the manufacture of up to 3,720,000 gallons of beer
4per year provided that the class 2 brewer licensee does not
5manufacture more than a combined 3,720,000 gallons of beer per
6year and is not a member of or affiliated with, directly or
7indirectly, a manufacturer that produces more than 3,720,000
8gallons of beer per year or any other alcoholic liquor. A class
92 brewer licensee may make sales and deliveries to importing
10distributors and distributors, but shall not make sales or
11deliveries to any other licensee. If the State Commission
12provides prior approval, a class 2 brewer licensee may annually
13transfer up to 3,720,000 gallons of beer manufactured by that
14class 2 brewer licensee to the premises of a licensed class 2
15brewer wholly owned and operated by the same licensee.
16    A class 2 brewer may transfer beer to a brew pub wholly
17owned and operated by the class 2 brewer subject to the
18following limitations and restrictions: (i) the transfer shall
19not annually exceed more than 31,000 gallons; (ii) the annual
20amount transferred shall reduce the brew pub's annual permitted
21production limit; (iii) all beer transferred shall be subject
22to Article VIII of this Act; (iv) a written record shall be
23maintained by the brewer and brew pub specifying the amount,
24date of delivery, and receipt of the product by the brew pub;
25and (v) the brew pub shall be located no farther than 80 miles
26from the class 2 brewer's licensed location.

 

 

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

 

 

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

 

 

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1provisions, rules and regulations governing manufacturers in
2the preparation and bottling of alcoholic liquors. The
3importing distributor's license shall permit such licensee to
4purchase alcoholic liquor from Illinois licensed non-resident
5dealers and foreign importers only. No person licensed as an
6importing distributor shall be granted a non-resident dealer's
7license.
8    (d) A retailer's license shall allow the licensee to sell
9and offer for sale at retail, only in the premises specified in
10the license, alcoholic liquor for use or consumption, but not
11for resale in any form. Nothing in Public Act 95-634 shall
12deny, limit, remove, or restrict the ability of a holder of a
13retailer's license to transfer, deliver, or ship alcoholic
14liquor to the purchaser for use or consumption subject to any
15applicable local law or ordinance. Any retail license issued to
16a manufacturer shall only permit the manufacturer to sell beer
17at retail on the premises actually occupied by the
18manufacturer. For the purpose of further describing the type of
19business conducted at a retail licensed premises, a retailer's
20licensee may be designated by the State Commission as (i) an on
21premise consumption retailer, (ii) an off premise sale
22retailer, or (iii) a combined on premise consumption and off
23premise sale retailer.
24    Notwithstanding any other provision of this subsection
25(d), a retail licensee may sell alcoholic liquors to a special
26event retailer licensee for resale to the extent permitted

 

 

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1under subsection (e).
2    (e) A special event retailer's license (not-for-profit)
3shall permit the licensee to purchase alcoholic liquors from an
4Illinois licensed distributor (unless the licensee purchases
5less than $500 of alcoholic liquors for the special event, in
6which case the licensee may purchase the alcoholic liquors from
7a licensed retailer) and shall allow the licensee to sell and
8offer for sale, at retail, alcoholic liquors for use or
9consumption, but not for resale in any form and only at the
10location and on the specific dates designated for the special
11event in the license. An applicant for a special event retailer
12license must (i) furnish with the application: (A) a resale
13number issued under Section 2c of the Retailers' Occupation Tax
14Act or evidence that the applicant is registered under Section
152a of the Retailers' Occupation Tax Act, (B) a current, valid
16exemption identification number issued under Section 1g of the
17Retailers' Occupation Tax Act, and a certification to the
18Commission that the purchase of alcoholic liquors will be a
19tax-exempt purchase, or (C) a statement that the applicant is
20not registered under Section 2a of the Retailers' Occupation
21Tax Act, does not hold a resale number under Section 2c of the
22Retailers' Occupation Tax Act, and does not hold an exemption
23number under Section 1g of the Retailers' Occupation Tax Act,
24in which event the Commission shall set forth on the special
25event retailer's license a statement to that effect; (ii)
26submit with the application proof satisfactory to the State

 

 

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1Commission that the applicant will provide dram shop liability
2insurance in the maximum limits; and (iii) show proof
3satisfactory to the State Commission that the applicant has
4obtained local authority approval.
5    Nothing in this Act prohibits an Illinois licensed
6distributor from offering credit or a refund for unused,
7salable alcoholic liquors to a holder of a special event
8retailer's license or from the special event retailer's
9licensee from accepting the credit or refund of alcoholic
10liquors at the conclusion of the event specified in the
11license.
12    (f) A railroad license shall permit the licensee to import
13alcoholic liquors into this State from any point in the United
14States outside this State and to store such alcoholic liquors
15in this State; to make wholesale purchases of alcoholic liquors
16directly from manufacturers, foreign importers, distributors
17and importing distributors from within or outside this State;
18and to store such alcoholic liquors in this State; provided
19that the above powers may be exercised only in connection with
20the importation, purchase or storage of alcoholic liquors to be
21sold or dispensed on a club, buffet, lounge or dining car
22operated on an electric, gas or steam railway in this State;
23and provided further, that railroad licensees exercising the
24above powers shall be subject to all provisions of Article VIII
25of this Act as applied to importing distributors. A railroad
26license shall also permit the licensee to sell or dispense

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Any agent, representative, or person subject to
2registration pursuant to subsection (a-1) of this Section shall
3not be eligible to receive a broker's license.
4    (m) A non-resident dealer's license shall permit such
5licensee to ship into and warehouse alcoholic liquor into this
6State from any point outside of this State, and to sell such
7alcoholic liquor to Illinois licensed foreign importers and
8importing distributors and to no one else in this State;
9provided that (i) said non-resident dealer shall register with
10the Illinois Liquor Control Commission each and every brand of
11alcoholic liquor which it proposes to sell to Illinois
12licensees during the license period, (ii) it shall comply with
13all of the provisions of Section 6-9 hereof with respect to
14registration of such Illinois licensees as may be granted the
15right to sell such brands at wholesale by duly filing such
16registration statement, thereby authorizing the non-resident
17dealer to proceed to sell such brands at wholesale, and (iii)
18the non-resident dealer shall comply with the provisions of
19Sections 6-5 and 6-6 of this Act to the same extent that these
20provisions apply to manufacturers. No person licensed as a
21non-resident dealer shall be granted a distributor's or
22importing distributor's license.
23    (n) A brew pub license shall allow the licensee to only (i)
24manufacture up to 155,000 gallons of beer per year only on the
25premises specified in the license, (ii) make sales of the beer
26manufactured on the premises or, with the approval of the

 

 

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1Commission, beer manufactured on another brew pub licensed
2premises that is wholly owned and operated by the same licensee
3to importing distributors, distributors, and to non-licensees
4for use and consumption, (iii) store the beer upon the
5premises, (iv) sell and offer for sale at retail from the
6licensed premises for off-premises consumption no more than
7155,000 gallons per year so long as such sales are only made
8in-person, (v) sell and offer for sale at retail for use and
9consumption on the premises specified in the license any form
10of alcoholic liquor purchased from a licensed distributor or
11importing distributor, and (vi) with the prior approval of the
12Commission, annually transfer no more than 155,000 gallons of
13beer manufactured on the premises to a licensed brew pub wholly
14owned and operated by the same licensee, and (vii)
15notwithstanding item (i) of this subsection, brew pubs wholly
16owned and operated by the same licensee may combine each
17location's production limit of 155,000 gallons of beer per year
18and allocate the aggregate total between the wholly owned,
19operated, and licensed locations.
20    A brew pub licensee shall not under any circumstance sell
21or offer for sale beer manufactured by the brew pub licensee to
22retail licensees.
23    A person who holds a class 2 brewer license may
24simultaneously hold a brew pub license if the class 2 brewer
25(i) does not, under any circumstance, sell or offer for sale
26beer manufactured by the class 2 brewer to retail licensees;

 

 

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1(ii) does not hold more than 3 brew pub licenses in this State;
2(iii) does not manufacture more than a combined 3,720,000
3gallons of beer per year, including the beer manufactured at
4the brew pub; and (iv) is not a member of or affiliated with,
5directly or indirectly, a manufacturer that produces more than
63,720,000 gallons of beer per year or any other alcoholic
7liquor.
8    Notwithstanding any other provision of this Act, a licensed
9brewer, class 2 brewer, or non-resident dealer who before July
101, 2015 manufactured less than 3,720,000 gallons of beer per
11year and held a brew pub license on or before July 1, 2015 may
12(i) continue to qualify for and hold that brew pub license for
13the licensed premises and (ii) manufacture more than 3,720,000
14gallons of beer per year and continue to qualify for and hold
15that brew pub license if that brewer, class 2 brewer, or
16non-resident dealer does not simultaneously hold a class 1
17brewer license and is not a member of or affiliated with,
18directly or indirectly, a manufacturer that produces more than
193,720,000 gallons of beer per year or that produces any other
20alcoholic liquor.
21    (o) A caterer retailer license shall allow the holder to
22serve alcoholic liquors as an incidental part of a food service
23that serves prepared meals which excludes the serving of snacks
24as the primary meal, either on or off-site whether licensed or
25unlicensed.
26    (p) An auction liquor license shall allow the licensee to

 

 

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

 

 

HB3610 Engrossed- 21 -LRB101 08863 RPS 53953 b

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

 

 

HB3610 Engrossed- 22 -LRB101 08863 RPS 53953 b

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

 

 

HB3610 Engrossed- 23 -LRB101 08863 RPS 53953 b

1the following information:
2        (1) the name, address, and license number of the winery
3    shipper on whose behalf the shipment was made;
4        (2) the quantity of the products delivered; and
5        (3) the date and address of the shipment.
6If the Department of Revenue or the State Commission requests a
7statement under this paragraph, the third-party provider must
8provide that statement no later than 30 days after the request
9is made. Any books, records, supporting papers, and documents
10containing information and data relating to a statement under
11this paragraph shall be kept and preserved for a period of 3
12years, unless their destruction sooner is authorized, in
13writing, by the Director of Revenue, and shall be open and
14available to inspection by the Director of Revenue or the State
15Commission or any duly authorized officer, agent, or employee
16of the State Commission or the Department of Revenue, at all
17times during business hours of the day. Any person who violates
18any provision of this paragraph or any rule of the State
19Commission for the administration and enforcement of the
20provisions of this paragraph is guilty of a Class C
21misdemeanor. In case of a continuing violation, each day's
22continuance thereof shall be a separate and distinct offense.
23    The State Commission shall adopt rules as soon as
24practicable to implement the requirements of Public Act 99-904
25and shall adopt rules prohibiting any such third-party
26appointment of a third-party provider, except for a common

 

 

HB3610 Engrossed- 24 -LRB101 08863 RPS 53953 b

1carrier, that has been deemed by the State Commission to have
2violated the provisions of this Act with regard to any winery
3shipper licensee.
4    A winery shipper licensee must pay to the Department of
5Revenue the State liquor gallonage tax under Section 8-1 for
6all wine that is sold by the licensee and shipped to a person
7in this State. For the purposes of Section 8-1, a winery
8shipper licensee shall be taxed in the same manner as a
9manufacturer of wine. A licensee who is not otherwise required
10to register under the Retailers' Occupation Tax Act must
11register under the Use Tax Act to collect and remit use tax to
12the Department of Revenue for all gallons of wine that are sold
13by the licensee and shipped to persons in this State. If a
14licensee fails to remit the tax imposed under this Act in
15accordance with the provisions of Article VIII of this Act, the
16winery shipper's license shall be revoked in accordance with
17the provisions of Article VII of this Act. If a licensee fails
18to properly register and remit tax under the Use Tax Act or the
19Retailers' Occupation Tax Act for all wine that is sold by the
20winery shipper and shipped to persons in this State, the winery
21shipper's license shall be revoked in accordance with the
22provisions of Article VII of this Act.
23    A winery shipper licensee must collect, maintain, and
24submit to the Commission on a semi-annual basis the total
25number of cases per resident of wine shipped to residents of
26this State. A winery shipper licensed under this subsection (r)

 

 

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1must comply with the requirements of Section 6-29 of this Act.
2    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
3Section 3-12, the State Commission may receive, respond to, and
4investigate any complaint and impose any of the remedies
5specified in paragraph (1) of subsection (a) of Section 3-12.
6    As used in this subsection, "third-party provider" means
7any entity that provides fulfillment house services, including
8warehousing, packaging, distribution, order processing, or
9shipment of wine, but not the sale of wine, on behalf of a
10licensed winery shipper.
11    (s) A craft distiller tasting permit license shall allow an
12Illinois licensed craft distiller to transfer a portion of its
13alcoholic liquor inventory from its craft distiller licensed
14premises to the premises specified in the license hereby
15created and to conduct a sampling, only in the premises
16specified in the license hereby created, of the transferred
17alcoholic liquor in accordance with subsection (c) of Section
186-31 of this Act. The transferred alcoholic liquor may not be
19sold or resold in any form. An applicant for the craft
20distiller tasting permit license must also submit with the
21application proof satisfactory to the State Commission that the
22applicant will provide dram shop liability insurance to the
23maximum limits and have local authority approval.
24    A brewer warehouse permit may be issued to the holder of a
25class 1 brewer license or a class 2 brewer license. If the
26holder of the permit is a class 1 brewer licensee, the brewer

 

 

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1warehouse permit shall allow the holder to store or warehouse
2up to 930,000 gallons of tax-determined beer manufactured by
3the holder of the permit at the premises specified on the
4permit. If the holder of the permit is a class 2 brewer
5licensee, the brewer warehouse permit shall allow the holder to
6store or warehouse up to 3,720,000 gallons of tax-determined
7beer manufactured by the holder of the permit at the premises
8specified on the permit. Sales to non-licensees are prohibited
9at the premises specified in the brewer warehouse permit.
10(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
1199-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
121-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
13eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
14revised 10-2-18.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.