SB1831 EngrossedLRB101 09851 RPS 54953 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 5-1, 6-6, 6-6.5, 8-1, and 8-5 and by adding
6Sections 6-5.5 and 6-6.6 as follows:
 
7    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
8    Sec. 5-1. Licenses issued by the Illinois Liquor Control
9Commission shall be of the following classes:
10    (a) Manufacturer's license - Class 1. Distiller, Class 2.
11Rectifier, Class 3. Brewer, Class 4. First Class Wine
12Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
13First Class Winemaker, Class 7. Second Class Winemaker, Class
148. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1510. Class 1 Brewer, Class 11. Class 2 Brewer,
16    (b) Distributor's license,
17    (c) Importing Distributor's license,
18    (d) Retailer's license,
19    (e) Special Event Retailer's license (not-for-profit),
20    (f) Railroad license,
21    (g) Boat license,
22    (h) Non-Beverage User's license,
23    (i) Wine-maker's premises license,

 

 

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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 tasting permit,
11    (t) Brewer warehouse permit.
12    No person, firm, partnership, corporation, or other legal
13business entity that is engaged in the manufacturing of wine
14may concurrently obtain and hold a wine-maker's license and a
15wine manufacturer's license.
16    (a) A manufacturer's license shall allow the manufacture,
17importation in bulk, storage, distribution and sale of
18alcoholic liquor to persons without the State, as may be
19permitted by law and to licensees in this State as follows:
20    Class 1. A Distiller may make sales and deliveries of
21alcoholic liquor to distillers, rectifiers, importing
22distributors, distributors and non-beverage users and to no
23other licensees.
24    Class 2. A Rectifier, who is not a distiller, as defined
25herein, may make sales and deliveries of alcoholic liquor to
26rectifiers, importing distributors, distributors, retailers

 

 

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

 

 

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1permitted by law. A person who, prior to June 1, 2008 (the
2effective date of Public Act 95-634), is a holder of a
3second-class wine-maker's license and annually produces more
4than 25,000 gallons of its own wine and who distributes its
5wine to licensed retailers shall cease this practice on or
6before July 1, 2008 in compliance with Public Act 95-634.
7    Class 8. A limited wine-manufacturer may make sales and
8deliveries not to exceed 40,000 gallons of wine per year to
9distributors, and to non-licensees in accordance with the
10provisions of this Act.
11    Class 9. A craft distiller license shall allow the
12manufacture of up to 100,000 gallons of spirits by distillation
13per year and the storage of such spirits. If a craft distiller
14licensee, including a craft distiller licensee who holds more
15than one craft distiller license, is not affiliated with any
16other manufacturer of spirits, then the craft distiller
17licensee may sell such spirits to distributors in this State
18and up to 2,500 gallons of such spirits to non-licensees to the
19extent permitted by any exemption approved by the Commission
20pursuant to Section 6-4 of this Act. A craft distiller license
21holder may store such spirits at a non-contiguous licensed
22location, but at no time shall a craft distiller license holder
23directly or indirectly produce in the aggregate more than
24100,000 gallons of spirits per year.
25    A craft distiller licensee may hold more than one craft
26distiller's license. However, a craft distiller that holds more

 

 

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1than one craft distiller license shall not manufacture, in the
2aggregate, more than 100,000 gallons of spirits by distillation
3per year and shall not sell, in the aggregate, more than 2,500
4gallons of such spirits to non-licensees in accordance with an
5exemption approved by the State Commission pursuant to Section
66-4 of this Act.
7    Any craft distiller licensed under this Act who on July 28,
82010 (the effective date of Public Act 96-1367) was licensed as
9a distiller and manufactured no more spirits than permitted by
10this Section shall not be required to pay the initial licensing
11fee.
12    Class 10. A class 1 brewer license, which may only be
13issued to a licensed brewer or licensed non-resident dealer,
14shall allow the manufacture of up to 930,000 gallons of beer
15per year provided that the class 1 brewer licensee does not
16manufacture more than a combined 930,000 gallons of beer per
17year and is not a member of or affiliated with, directly or
18indirectly, a manufacturer that produces more than 930,000
19gallons of beer per year or any other alcoholic liquor. A class
201 brewer licensee may make sales and deliveries to importing
21distributors and distributors and to retail licensees in
22accordance with the conditions set forth in paragraph (18) of
23subsection (a) of Section 3-12 of this Act. If the State
24Commission provides prior approval, a class 1 brewer may
25annually transfer up to 930,000 gallons of beer manufactured by
26that class 1 brewer to the premises of a licensed class 1

 

 

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1brewer wholly owned and operated by the same licensee.
2    Class 11. A class 2 brewer license, which may only be
3issued to a licensed brewer or licensed non-resident dealer,
4shall allow the manufacture of up to 3,720,000 gallons of beer
5per year provided that the class 2 brewer licensee does not
6manufacture more than a combined 3,720,000 gallons of beer per
7year and is not a member of or affiliated with, directly or
8indirectly, a manufacturer that produces more than 3,720,000
9gallons of beer per year or any other alcoholic liquor. A class
102 brewer licensee may make sales and deliveries to importing
11distributors and distributors, but shall not make sales or
12deliveries to any other licensee. If the State Commission
13provides prior approval, a class 2 brewer licensee may annually
14transfer up to 3,720,000 gallons of beer manufactured by that
15class 2 brewer licensee to the premises of a licensed class 2
16brewer wholly owned and operated by the same licensee.
17    A class 2 brewer may transfer beer to a brew pub wholly
18owned and operated by the class 2 brewer subject to the
19following limitations and restrictions: (i) the transfer shall
20not annually exceed more than 31,000 gallons; (ii) the annual
21amount transferred shall reduce the brew pub's annual permitted
22production limit; (iii) all beer transferred shall be subject
23to Article VIII of this Act; (iv) a written record shall be
24maintained by the brewer and brew pub specifying the amount,
25date of delivery, and receipt of the product by the brew pub;
26and (v) the brew pub shall be located no farther than 80 miles

 

 

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

 

 

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

 

 

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

 

 

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1event retailer licensee for resale to the extent permitted
2under subsection (e).
3    (e) A special event retailer's license (not-for-profit)
4shall permit the licensee to purchase alcoholic liquors from an
5Illinois licensed distributor (unless the licensee purchases
6less than $500 of alcoholic liquors for the special event, in
7which case the licensee may purchase the alcoholic liquors from
8a licensed retailer) and shall allow the licensee to sell and
9offer for sale, at retail, alcoholic liquors for use or
10consumption, but not for resale in any form and only at the
11location and on the specific dates designated for the special
12event in the license. An applicant for a special event retailer
13license must (i) furnish with the application: (A) a resale
14number issued under Section 2c of the Retailers' Occupation Tax
15Act or evidence that the applicant is registered under Section
162a of the Retailers' Occupation Tax Act, (B) a current, valid
17exemption identification number issued under Section 1g of the
18Retailers' Occupation Tax Act, and a certification to the
19Commission that the purchase of alcoholic liquors will be a
20tax-exempt purchase, or (C) a statement that the applicant is
21not registered under Section 2a of the Retailers' Occupation
22Tax Act, does not hold a resale number under Section 2c of the
23Retailers' Occupation Tax Act, and does not hold an exemption
24number under Section 1g of the Retailers' Occupation Tax Act,
25in which event the Commission shall set forth on the special
26event retailer's license a statement to that effect; (ii)

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1manufactured on the premises or, with the approval of the
2Commission, beer manufactured on another brew pub licensed
3premises that is wholly owned and operated by the same licensee
4to importing distributors, distributors, and to non-licensees
5for use and consumption, (iii) store the beer upon the
6premises, (iv) sell and offer for sale at retail from the
7licensed premises for off-premises consumption no more than
8155,000 gallons per year so long as such sales are only made
9in-person, (v) sell and offer for sale at retail for use and
10consumption on the premises specified in the license any form
11of alcoholic liquor purchased from a licensed distributor or
12importing distributor, and (vi) with the prior approval of the
13Commission, annually transfer no more than 155,000 gallons of
14beer manufactured on the premises to a licensed brew pub wholly
15owned and operated by the same licensee.
16    A brew pub licensee shall not under any circumstance sell
17or offer for sale beer manufactured by the brew pub licensee to
18retail licensees.
19    A person who holds a class 2 brewer license may
20simultaneously hold a brew pub license if the class 2 brewer
21(i) does not, under any circumstance, sell or offer for sale
22beer manufactured by the class 2 brewer to retail licensees;
23(ii) does not hold more than 3 brew pub licenses in this State;
24(iii) does not manufacture more than a combined 3,720,000
25gallons of beer per year, including the beer manufactured at
26the brew pub; and (iv) is not a member of or affiliated with,

 

 

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1directly or indirectly, a manufacturer that produces more than
23,720,000 gallons of beer per year or any other alcoholic
3liquor.
4    Notwithstanding any other provision of this Act, a licensed
5brewer, class 2 brewer, or non-resident dealer who before July
61, 2015 manufactured less than 3,720,000 gallons of beer per
7year and held a brew pub license on or before July 1, 2015 may
8(i) continue to qualify for and hold that brew pub license for
9the licensed premises and (ii) manufacture more than 3,720,000
10gallons of beer per year and continue to qualify for and hold
11that brew pub license if that brewer, class 2 brewer, or
12non-resident dealer does not simultaneously hold a class 1
13brewer license and is not a member of or affiliated with,
14directly or indirectly, a manufacturer that produces more than
153,720,000 gallons of beer per year or that produces any other
16alcoholic liquor.
17    (o) A caterer retailer license shall allow the holder to
18serve alcoholic liquors as an incidental part of a food service
19that serves prepared meals which excludes the serving of snacks
20as the primary meal, either on or off-site whether licensed or
21unlicensed. A caterer retailer license shall allow the holder,
22a distributor, or an importing distributor to transfer any
23inventory to and from the holder's retail premises and shall
24allow the holder to purchase alcoholic liquor from a
25distributor or importing distributor to be delivered directly
26to an off-site event.

 

 

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1    Nothing in this Act prohibits a distributor or importing
2distributor from offering credit or a refund for unused,
3salable beer to a holder of a caterer retailer license or a
4caterer retailer licensee from accepting a credit or refund for
5unused, salable beer, in the event an act of God is the sole
6reason an off-site event is cancelled and if: (i) the holder of
7a caterer retailer license has not transferred alcoholic liquor
8from its caterer retailer premises to an off-site location;
9(ii) the distributor or importing distributor offers the credit
10or refund for the unused, salable beer that it delivered to the
11off-site premises and not for any unused, salable beer that the
12distributor or importing distributor delivered to the caterer
13retailer's premises; and (iii) the unused, salable beer would
14likely spoil if transferred to the caterer retailer's premises.
15A caterer retailer license shall allow the holder, a
16distributor, or an importing distributor to transfer any
17inventory from any off-site location to its caterer retailer
18premises at the conclusion of an off-site event.
19    For purposes of this subsection (o), an "act of God" means
20an unforeseeable event, such as a rain or snow storm, hail, a
21flood, or a similar event, that is the sole cause of the
22cancellation of an off-site, outdoor event.
23    (p) An auction liquor license shall allow the licensee to
24sell and offer for sale at auction wine and spirits for use or
25consumption, or for resale by an Illinois liquor licensee in
26accordance with provisions of this Act. An auction liquor

 

 

SB1831 Engrossed- 21 -LRB101 09851 RPS 54953 b

1license will be issued to a person and it will permit the
2auction liquor licensee to hold the auction anywhere in the
3State. An auction liquor license must be obtained for each
4auction at least 14 days in advance of the auction date.
5    (q) A special use permit license shall allow an Illinois
6licensed retailer to transfer a portion of its alcoholic liquor
7inventory from its retail licensed premises to the premises
8specified in the license hereby created; to purchase alcoholic
9liquor from a distributor or importing distributor to be
10delivered directly to the location specified in the license
11hereby created; , and to sell or offer for sale at retail, only
12in the premises specified in the license hereby created, the
13transferred or delivered alcoholic liquor for use or
14consumption, but not for resale in any form. A special use
15permit license may be granted for the following time periods:
16one day or less; 2 or more days to a maximum of 15 days per
17location in any 12-month period. An applicant for the special
18use permit license must also submit with the application proof
19satisfactory to the State Commission that the applicant will
20provide dram shop liability insurance to the maximum limits and
21have local authority approval.
22    A special use permit license shall allow the holder, a
23distributor, or an importing distributor to transfer any
24inventory from the holder's special use premises to its retail
25premises at the conclusion of the special use event.
26    Nothing in this Act prohibits a distributor or importing

 

 

SB1831 Engrossed- 22 -LRB101 09851 RPS 54953 b

1distributor from offering credit or a refund for unused,
2salable beer to a special use permit licensee or a special use
3permit licensee from accepting a credit or refund for unused,
4salable beer at the conclusion of the event specified in the
5license if: (i) the holder of the special use permit license
6has not transferred alcoholic liquor from its retail licensed
7premises to the premises specified in the special use permit
8license; (ii) the distributor or importing distributor offers
9the credit or refund for the unused, salable beer that it
10delivered to the premises specified in the special use permit
11license and not for any unused, salable beer that the
12distributor or importing distributor delivered to the
13retailer's premises; and (iii) the unused, salable beer would
14likely spoil if transferred to the retailer premises.
15    (r) A winery shipper's license shall allow a person with a
16first-class or second-class wine manufacturer's license, a
17first-class or second-class wine-maker's license, or a limited
18wine manufacturer's license or who is licensed to make wine
19under the laws of another state to ship wine made by that
20licensee directly to a resident of this State who is 21 years
21of age or older for that resident's personal use and not for
22resale. Prior to receiving a winery shipper's license, an
23applicant for the license must provide the Commission with a
24true copy of its current license in any state in which it is
25licensed as a manufacturer of wine. An applicant for a winery
26shipper's license must also complete an application form that

 

 

SB1831 Engrossed- 23 -LRB101 09851 RPS 54953 b

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

 

 

SB1831 Engrossed- 24 -LRB101 09851 RPS 54953 b

1renewal, that he or she only ships wine, either directly or
2indirectly through a third-party provider, from the licensee's
3own production.
4    Except for a common carrier, a third-party provider
5shipping wine on behalf of a winery shipper's license holder is
6the agent of the winery shipper's license holder and, as such,
7a winery shipper's license holder is responsible for the acts
8and omissions of the third-party provider acting on behalf of
9the license holder. A third-party provider, except for a common
10carrier, that engages in shipping wine into Illinois on behalf
11of a winery shipper's license holder shall consent to the
12jurisdiction of the State Commission and the State. Any
13third-party, except for a common carrier, holding such an
14appointment shall, by February 1 of each calendar year and upon
15request by the State Commission or the Department of Revenue,
16file with the State Commission a statement detailing each
17shipment made to an Illinois resident. The statement shall
18include the name and address of the third-party provider filing
19the statement, the time period covered by the statement, and
20the following information:
21        (1) the name, address, and license number of the winery
22    shipper on whose behalf the shipment was made;
23        (2) the quantity of the products delivered; and
24        (3) the date and address of the shipment.
25If the Department of Revenue or the State Commission requests a
26statement under this paragraph, the third-party provider must

 

 

SB1831 Engrossed- 25 -LRB101 09851 RPS 54953 b

1provide that statement no later than 30 days after the request
2is made. Any books, records, supporting papers, and documents
3containing information and data relating to a statement under
4this paragraph shall be kept and preserved for a period of 3
5years, unless their destruction sooner is authorized, in
6writing, by the Director of Revenue, and shall be open and
7available to inspection by the Director of Revenue or the State
8Commission or any duly authorized officer, agent, or employee
9of the State Commission or the Department of Revenue, at all
10times during business hours of the day. Any person who violates
11any provision of this paragraph or any rule of the State
12Commission for the administration and enforcement of the
13provisions of this paragraph is guilty of a Class C
14misdemeanor. In case of a continuing violation, each day's
15continuance thereof shall be a separate and distinct offense.
16    The State Commission shall adopt rules as soon as
17practicable to implement the requirements of Public Act 99-904
18and shall adopt rules prohibiting any such third-party
19appointment of a third-party provider, except for a common
20carrier, that has been deemed by the State Commission to have
21violated the provisions of this Act with regard to any winery
22shipper licensee.
23    A winery shipper licensee must pay to the Department of
24Revenue the State liquor gallonage tax under Section 8-1 for
25all wine that is sold by the licensee and shipped to a person
26in this State. For the purposes of Section 8-1, a winery

 

 

SB1831 Engrossed- 26 -LRB101 09851 RPS 54953 b

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

 

 

SB1831 Engrossed- 27 -LRB101 09851 RPS 54953 b

1warehousing, packaging, distribution, order processing, or
2shipment of wine, but not the sale of wine, on behalf of a
3licensed winery shipper.
4    (s) A craft distiller tasting permit license shall allow an
5Illinois licensed craft distiller to transfer a portion of its
6alcoholic liquor inventory from its craft distiller licensed
7premises to the premises specified in the license hereby
8created and to conduct a sampling, only in the premises
9specified in the license hereby created, of the transferred
10alcoholic liquor in accordance with subsection (c) of Section
116-31 of this Act. The transferred alcoholic liquor may not be
12sold or resold in any form. An applicant for the craft
13distiller tasting permit license must also submit with the
14application proof satisfactory to the State Commission that the
15applicant will provide dram shop liability insurance to the
16maximum limits and have local authority approval.
17    A brewer warehouse permit may be issued to the holder of a
18class 1 brewer license or a class 2 brewer license. If the
19holder of the permit is a class 1 brewer licensee, the brewer
20warehouse permit shall allow the holder to store or warehouse
21up to 930,000 gallons of tax-determined beer manufactured by
22the holder of the permit at the premises specified on the
23permit. If the holder of the permit is a class 2 brewer
24licensee, the brewer warehouse permit shall allow the holder to
25store or warehouse up to 3,720,000 gallons of tax-determined
26beer manufactured by the holder of the permit at the premises

 

 

SB1831 Engrossed- 28 -LRB101 09851 RPS 54953 b

1specified on the permit. Sales to non-licensees are prohibited
2at the premises specified in the brewer 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 5/6-5.5 new)
9    Sec. 6-5.5. Consignment sales prohibited; retailer
10returns.
11    (a) In this Section, "retailer" means a retailer, special
12event retailer, special use permit licensee, caterer retailer,
13or brew pub.
14    (b) It is unlawful for a manufacturer with
15self-distribution privileges, importing distributor, or
16distributor to sell, offer for sale, or contract to sell to any
17retailer, or for any such retailer to purchase, offer to
18purchase, or contract to purchase any products:
19        (1) on consignment or conditional sale, pursuant to
20    which the retailer has no obligation to pay for the product
21    until sold;
22        (2) with the privilege of return unless expressly
23    authorized in this Act;
24        (3) on any basis other than a bona fide sale; or
25        (4) if any part of the sale involves, directly or

 

 

SB1831 Engrossed- 29 -LRB101 09851 RPS 54953 b

1    indirectly, the acquisition by the retailer of other
2    products from a manufacturer with self-distribution
3    privileges, importing distributor, or distributor, or an
4    agreement to acquire other products from the manufacturer
5    with self-distribution privileges, importing distributor,
6    or distributor.
7    (c) Transactions involving the bona fide return of products
8for ordinary and usual commercial reasons arising after the
9product has been sold are not prohibited.
10    (d) Unless there is a bona fide business reason for
11replacement of an alcoholic liquor product when delivered, the
12alcoholic liquor product may not be replaced free of charge to
13a retailer. Replacement of an alcoholic liquor product damaged
14while in a retailer's possession constitutes the providing of
15something of value and is a violation of Sections 6-4, 6-5, and
166-6 of this Act. A manufacturer with self-distribution
17privileges, importing distributor, or distributor is not
18required to accept the return of products for the reasons
19stated in items (1) through (7) of subsection (f).
20        (1) A manufacturer with self-distribution privileges,
21    importing distributor, or distributor may not accept the
22    return of alcoholic liquor products as breakage if the
23    product was damaged after delivery and while in the
24    possession of the retailer. The manufacturer with
25    self-distribution privileges, importing distributor, or
26    distributor may replace damaged cartons, packaging, or

 

 

SB1831 Engrossed- 30 -LRB101 09851 RPS 54953 b

1    carrying containers of alcoholic liquor at any time.
2        (2) Alcoholic liquor products or other compensation
3    shall not be furnished to a retailer for product breakage
4    that occurs as a result of handling by the retailer or its
5    agents, employees, or customers.
6        (3) If an alcoholic liquor product has been damaged
7    prior to or at the time of actual delivery, the product may
8    only be exchanged for an equal quantity of identical
9    product or returned for credit. If an identical product is
10    unavailable, a similar type of product, including a
11    similarly priced product, may be exchanged.
12        (4) If an alcoholic liquor product has been damaged
13    prior to or at the time of actual delivery, the product may
14    be exchanged no later than 15 days after delivery under the
15    following conditions:
16            (A) If the pre-delivery damage is visible at the
17        time of delivery, the retailer must identify the
18        damaged product immediately.
19            (B) If the damage is latent and not visible at the
20        time of delivery, the retailer must notify the
21        manufacturer with self-distribution privileges,
22        importing distributor, or distributor of the
23        pre-delivery damage within 15 days after delivery, or
24        the date of invoice, whichever is later.
25    (e) It is unlawful to sell, offer to sell, or contract to
26sell alcoholic liquor products with the privilege of return for

 

 

SB1831 Engrossed- 31 -LRB101 09851 RPS 54953 b

1any reason, other than those considered to be ordinary and
2usual commercial reasons, arising after the product has been
3sold. A manufacturer with self-distribution privileges,
4importing distributor, or distributor is under no obligation to
5accept a return or make an exchange for any product. A
6manufacturer with self-distribution privileges, importing
7distributor, or distributor that elects to make an authorized
8exchange of a product or return of a product for cash or credit
9does so at its sole discretion and must maintain proper books
10and records of the transaction in accordance with 11 Ill. Adm.
11Code 100.130.
12    (f) Ordinary and usual commercial reasons for the return of
13alcoholic liquor products are limited to the following:
14        (1) Defective products. Products that are unmarketable
15    because of product deterioration, leaking containers,
16    damaged labels, or missing or mutilated tamper evident
17    closures may be exchanged for an equal quantity of
18    identical or similar products, including similarly priced
19    products, or credit against outstanding indebtedness.
20        (2) Error in products delivered. Any discrepancy
21    between products ordered and products delivered may be
22    corrected, within 15 days after the date of delivery or
23    date of invoice, whichever is later, by exchange of the
24    products delivered for those that were ordered or by a
25    return for credit against outstanding indebtedness.
26        (3) Products that may no longer be lawfully sold.

 

 

SB1831 Engrossed- 32 -LRB101 09851 RPS 54953 b

1    Products that may no longer be lawfully sold may be
2    returned for credit against outstanding indebtedness. This
3    includes situations in which, due to a change in regulation
4    or administrative procedure over which a retailer has no
5    control, a particular size or brand is no longer permitted
6    to be sold.
7        (4) Termination of business. Products on hand at the
8    time a retailer terminates operations may be returned for
9    cash or credit against outstanding indebtedness. This does
10    not include a temporary seasonal shutdown.
11        (5) Change in products. A retailer's inventory of a
12    product that has been changed in formula, proof, label, or
13    container may be exchanged for equal quantities of the new
14    version of that product.
15        (6) Discontinued products. If a manufacturer,
16    non-resident dealer, foreign importer, or importing
17    distributor discontinues the production or importation of
18    a product, a retailer may return its inventory of that
19    product for cash or credit against outstanding
20    indebtedness.
21        (7) Seasonal dealers. Manufacturers with
22    self-distribution privileges, importing distributors, or
23    distributors may accept the return of product from
24    retailers who are only open a portion of the year if the
25    products are likely to spoil during the off-season. These
26    returns shall be for cash or credit against outstanding

 

 

SB1831 Engrossed- 33 -LRB101 09851 RPS 54953 b

1    indebtedness.
2    (g) Without limitation, the following are not considered
3ordinary and commercial reasons to justify a return of an
4alcoholic liquor product:
5        (1) Overstocked and slow-moving alcoholic liquor
6    products. The return or exchange of a product because it is
7    overstocked or slow moving does not constitute a return for
8    ordinary and usual commercial reasons.
9        (2) Seasonal alcoholic liquor products. The return for
10    cash or credit or exchange of wine or spirits for which
11    there is only a limited or seasonal demand, such as holiday
12    decanters and certain distinctive bottles, does not
13    constitute a return for ordinary and usual commercial
14    reasons. Nothing in this item (2) prohibits the exchange of
15    seasonal beer products for similarly priced beer products.
16    (h) Nothing in this Section prohibits a manufacturer with
17self-distribution privileges, importing distributor, or
18distributor from accepting the return of beer from a retailer
19if the beer is near or beyond its freshness date, code date,
20pull date, or other similar date marking the deterioration or
21freshness of the beer if:
22        (1) the brewer has policies and procedures in place
23    that specify the date the retailer must pull the product;
24        (2) the brewer's freshness return or exchange policies
25    and procedures are readily verifiable and consistently
26    followed by the brewer; and

 

 

SB1831 Engrossed- 34 -LRB101 09851 RPS 54953 b

1        (3) the container has identifying markings that
2    correspond with this date.
3    Returns under this subsection may be accepted in return for
4credit against indebtedness or equal amounts of the same or
5similar beer, including a similarly priced product.
6    For purposes of this Section, beer is near code on any date
7on or before the freshness or code date not to exceed 30 days
8prior to the freshness or code date. If near-code beer is
9returned, a manufacturer with self-distribution privileges,
10importing distributor, or distributor may sell near-code beer
11to another retailer who may reasonably sell the beer on or
12before the expiration of the freshness or code date. No beer
13shall be returned as near-code prior to 30 days of the
14freshness or code date.
15    It is a violation of this Section for a retailer to hold
16beer for the purpose of returning beer as out of code.
 
17    (235 ILCS 5/6-6)  (from Ch. 43, par. 123)
18    Sec. 6-6. Except as otherwise provided in this Act no
19manufacturer or distributor or importing distributor shall,
20directly or indirectly, sell, supply, furnish, give or pay for,
21or loan or lease, any furnishing, fixture or equipment on the
22premises of a place of business of another licensee authorized
23under this Act to sell alcoholic liquor at retail, either for
24consumption on or off the premises, nor shall he or she,
25directly or indirectly, pay for any such license, or advance,

 

 

SB1831 Engrossed- 35 -LRB101 09851 RPS 54953 b

1furnish, lend or give money for payment of such license, or
2purchase or become the owner of any note, mortgage, or other
3evidence of indebtedness of such licensee or any form of
4security therefor, nor shall such manufacturer, or
5distributor, or importing distributor, directly or indirectly,
6be interested in the ownership, conduct or operation of the
7business of any licensee authorized to sell alcoholic liquor at
8retail, nor shall any manufacturer, or distributor, or
9importing distributor be interested directly or indirectly or
10as owner or part owner of said premises or as lessee or lessor
11thereof, in any premises upon which alcoholic liquor is sold at
12retail.
13    No manufacturer or distributor or importing distributor
14shall, directly or indirectly or through a subsidiary or
15affiliate, or by any officer, director or firm of such
16manufacturer, distributor or importing distributor, furnish,
17give, lend or rent, install, repair or maintain, to or for any
18retail licensee in this State, any signs or inside advertising
19materials except as provided in this Section and Section 6-5.
20With respect to retail licensees, other than any government
21owned or operated auditorium, exhibition hall, recreation
22facility or other similar facility holding a retailer's license
23as described in Section 6-5, a manufacturer, distributor, or
24importing distributor may furnish, give, lend or rent and
25erect, install, repair and maintain to or for any retail
26licensee, for use at any one time in or about or in connection

 

 

SB1831 Engrossed- 36 -LRB101 09851 RPS 54953 b

1with a retail establishment on which the products of the
2manufacturer, distributor or importing distributor are sold,
3the following signs and inside advertising materials as
4authorized in subparts (i), (ii), (iii), and (iv):
5        (i) Permanent outside signs shall cost not more than
6    $3,000 per brand manufacturer, exclusive of erection,
7    installation, repair and maintenance costs, and permit
8    fees and shall bear only the manufacturer's name, brand
9    name, trade name, slogans, markings, trademark, or other
10    symbols commonly associated with and generally used in
11    identifying the product including, but not limited to,
12    "cold beer", "on tap", "carry out", and "packaged liquor".
13        (ii) Temporary outside signs shall include, but not be
14    limited to, banners, flags, pennants, streamers, and other
15    items of a temporary and non-permanent nature, and shall
16    cost not more than $1,000 per manufacturer. Each temporary
17    outside sign must include the manufacturer's name, brand
18    name, trade name, slogans, markings, trademark, or other
19    symbol commonly associated with and generally used in
20    identifying the product. Temporary outside signs may also
21    include, for example, the product, price, packaging, date
22    or dates of a promotion and an announcement of a retail
23    licensee's specific sponsored event, if the temporary
24    outside sign is intended to promote a product, and provided
25    that the announcement of the retail licensee's event and
26    the product promotion are held simultaneously. However,

 

 

SB1831 Engrossed- 37 -LRB101 09851 RPS 54953 b

1    temporary outside signs may not include names, slogans,
2    markings, or logos that relate to the retailer. Nothing in
3    this subpart (ii) shall prohibit a distributor or importing
4    distributor from bearing the cost of creating or printing a
5    temporary outside sign for the retail licensee's specific
6    sponsored event or from bearing the cost of creating or
7    printing a temporary sign for a retail licensee containing,
8    for example, community goodwill expressions, regional
9    sporting event announcements, or seasonal messages,
10    provided that the primary purpose of the temporary outside
11    sign is to highlight, promote, or advertise the product. In
12    addition, temporary outside signs provided by the
13    manufacturer to the distributor or importing distributor
14    may also include, for example, subject to the limitations
15    of this Section, preprinted community goodwill
16    expressions, sporting event announcements, seasonal
17    messages, and manufacturer promotional announcements.
18    However, a distributor or importing distributor shall not
19    bear the cost of such manufacturer preprinted signs.
20        (iii) Permanent inside signs, whether visible from the
21    outside or the inside of the premises, include, but are not
22    limited to: alcohol lists and menus that may include names,
23    slogans, markings, or logos that relate to the retailer;
24    neons; illuminated signs; clocks; table lamps; mirrors;
25    tap handles; decalcomanias; window painting; and window
26    trim. All neons, illuminated signs, clocks, table lamps,

 

 

SB1831 Engrossed- 38 -LRB101 09851 RPS 54953 b

1    mirrors, and tap handles are the property of the
2    manufacturer and shall be returned to the manufacturer or
3    its agent upon request. All permanent inside signs in place
4    and in use at any one time shall cost in the aggregate not
5    more than $6,000 per manufacturer. A permanent inside sign
6    must include the manufacturer's name, brand name, trade
7    name, slogans, markings, trademark, or other symbol
8    commonly associated with and generally used in identifying
9    the product. However, permanent inside signs may not
10    include names, slogans, markings, or logos that relate to
11    the retailer. For the purpose of this subpart (iii), all
12    permanent inside signs may be displayed in an adjacent
13    courtyard or patio commonly referred to as a "beer garden"
14    that is a part of the retailer's licensed premises.
15        (iv) Temporary inside signs shall include, but are not
16    limited to, lighted chalk boards, acrylic table tent
17    beverage or hors d'oeuvre list holders, banners, flags,
18    pennants, streamers, and inside advertising materials such
19    as posters, placards, bowling sheets, table tents, inserts
20    for acrylic table tent beverage or hors d'oeuvre list
21    holders, sports schedules, or similar printed or
22    illustrated materials and product displays, such as
23    display racks, bins, barrels, or similar items, the primary
24    function of which is to temporarily hold and display
25    alcoholic beverages; however, such items, for example, as
26    coasters, trays, napkins, glassware and cups shall not be

 

 

SB1831 Engrossed- 39 -LRB101 09851 RPS 54953 b

1    deemed to be inside signs or advertising materials and may
2    only be sold to retailers at fair market value, which shall
3    be no less than the cost of the item to the manufacturer,
4    distributor, or importing distributor. All temporary
5    inside signs and inside advertising materials in place and
6    in use at any one time shall cost in the aggregate not more
7    than $1,000 per manufacturer. Nothing in this subpart (iv)
8    prohibits a distributor or importing distributor from
9    paying the cost of printing or creating any temporary
10    inside banner or inserts for acrylic table tent beverage or
11    hors d'oeuvre list holders for a retail licensee, provided
12    that the primary purpose for the banner or insert is to
13    highlight, promote, or advertise the product. For the
14    purpose of this subpart (iv), all temporary inside signs
15    and inside advertising materials may be displayed in an
16    adjacent courtyard or patio commonly referred to as a "beer
17    garden" that is a part of the retailer's licensed premises.
18    The restrictions contained in this Section 6-6 do not apply
19to signs, or promotional or advertising materials furnished by
20manufacturers, distributors or importing distributors to a
21government owned or operated facility holding a retailer's
22license as described in Section 6-5.
23    No distributor or importing distributor shall directly or
24indirectly or through a subsidiary or affiliate, or by any
25officer, director or firm of such manufacturer, distributor or
26importing distributor, furnish, give, lend or rent, install,

 

 

SB1831 Engrossed- 40 -LRB101 09851 RPS 54953 b

1repair or maintain, to or for any retail licensee in this
2State, any signs or inside advertising materials described in
3subparts (i), (ii), (iii), or (iv) of this Section except as
4the agent for or on behalf of a manufacturer, provided that the
5total cost of any signs and inside advertising materials
6including but not limited to labor, erection, installation and
7permit fees shall be paid by the manufacturer whose product or
8products said signs and inside advertising materials advertise
9and except as follows:
10    A distributor or importing distributor may purchase from or
11enter into a written agreement with a manufacturer or a
12manufacturer's designated supplier and such manufacturer or
13the manufacturer's designated supplier may sell or enter into
14an agreement to sell to a distributor or importing distributor
15permitted signs and advertising materials described in
16subparts (ii), (iii), or (iv) of this Section for the purpose
17of furnishing, giving, lending, renting, installing,
18repairing, or maintaining such signs or advertising materials
19to or for any retail licensee in this State. Any purchase by a
20distributor or importing distributor from a manufacturer or a
21manufacturer's designated supplier shall be voluntary and the
22manufacturer may not require the distributor or the importing
23distributor to purchase signs or advertising materials from the
24manufacturer or the manufacturer's designated supplier.
25    A distributor or importing distributor shall be deemed the
26owner of such signs or advertising materials purchased from a

 

 

SB1831 Engrossed- 41 -LRB101 09851 RPS 54953 b

1manufacturer or a manufacturer's designated supplier.
2    The provisions of Public Act 90-373 concerning signs or
3advertising materials delivered by a manufacturer to a
4distributor or importing distributor shall apply only to signs
5or advertising materials delivered on or after August 14, 1997.
6    A manufacturer, distributor, or importing distributor may
7furnish free social media advertising to a retail licensee if
8the social media advertisement does not contain the retail
9price of any alcoholic liquor and the social media
10advertisement complies with any applicable rules or
11regulations issued by the Alcohol and Tobacco Tax and Trade
12Bureau of the United States Department of the Treasury. A
13manufacturer, distributor, or importing distributor may list
14the names of one or more unaffiliated retailers in the
15advertisement of alcoholic liquor through social media.
16Nothing in this Section shall prohibit a retailer from
17communicating with a manufacturer, distributor, or importing
18distributor on social media or sharing media on the social
19media of a manufacturer, distributor, or importing
20distributor. A retailer may request free social media
21advertising from a manufacturer, distributor, or importing
22distributor. Nothing in this Section shall prohibit a
23manufacturer, distributor, or importing distributor from
24sharing, reposting, or otherwise forwarding a social media post
25by a retail licensee, so long as the sharing, reposting, or
26forwarding of the social media post does not contain the retail

 

 

SB1831 Engrossed- 42 -LRB101 09851 RPS 54953 b

1price of any alcoholic liquor. No manufacturer, distributor, or
2importing distributor shall pay or reimburse a retailer,
3directly or indirectly, for any social media advertising
4services, except as specifically permitted in this Act. No
5retailer shall accept any payment or reimbursement, directly or
6indirectly, for any social media advertising services offered
7by a manufacturer, distributor, or importing distributor,
8except as specifically permitted in this Act. For the purposes
9of this Section, "social media" means a service, platform, or
10site where users communicate with one another and share media,
11such as pictures, videos, music, and blogs, with other users
12free of charge.
13    No person engaged in the business of manufacturing,
14importing or distributing alcoholic liquors shall, directly or
15indirectly, pay for, or advance, furnish, or lend money for the
16payment of any license for another. Any licensee who shall
17permit or assent, or be a party in any way to any violation or
18infringement of the provisions of this Section shall be deemed
19guilty of a violation of this Act, and any money loaned
20contrary to a provision of this Act shall not be recovered
21back, or any note, mortgage or other evidence of indebtedness,
22or security, or any lease or contract obtained or made contrary
23to this Act shall be unenforceable and void.
24    This Section shall not apply to airplane licensees
25exercising powers provided in paragraph (i) of Section 5-1 of
26this Act.

 

 

SB1831 Engrossed- 43 -LRB101 09851 RPS 54953 b

1(Source: P.A. 99-448, eff. 8-24-15; 100-885, eff. 8-14-18.)
 
2    (235 ILCS 5/6-6.5)
3    Sec. 6-6.5. Sanitation. A manufacturer, distributor, or
4importing distributor may sell coil cleaning services to a
5retail licensee at fair market cost.
6    A manufacturer, distributor, or importing distributor may
7sell dispensing accessories to retail licensees at a price not
8less than the cost to the manufacturer, distributor, or
9importing distributor who initially purchased them. Dispensing
10accessories include, but are not limited to, items such as
11standards, faucets, cold plates, rods, vents, taps, tap
12standards, hoses, washers, couplings, gas gauges, vent
13tongues, shanks, and check valves. A manufacturer,
14distributor, or importing distributor may service, balance, or
15inspect draft beer, wine, or distilled spirits systems at
16regular intervals and may provide labor to replace or install
17dispensing accessories.
18    Coil cleaning supplies consisting of detergents, cleaning
19chemicals, brushes, or similar type cleaning devices may be
20sold at a price not less than the cost to the manufacturer,
21distributor, or importing distributor.
22    A distributor or importing distributor shall not sell or
23give coil cleaning services to a retailer, special use permit
24licensee, caterer retailer, or brew pub.
25(Source: P.A. 90-432, eff. 1-1-98.)
 

 

 

SB1831 Engrossed- 44 -LRB101 09851 RPS 54953 b

1    (235 ILCS 5/6-6.6 new)
2    Sec. 6-6.6. Giving, selling, and leasing dispensing
3equipment. Notwithstanding any provision of this Act to the
4contrary, a manufacturer, distributor, or importing
5distributor may:
6        (1) give dispensing equipment free of charge to a
7    retailer, special use permit licensee, or caterer retailer
8    one time per year for a one-day period. A manufacturer,
9    distributor, or importing distributor shall not supply a
10    retailer, special use permit licensee, or caterer retailer
11    with free beer, wine, spirits, or any other item of value
12    for the same one-day period the dispensing equipment is
13    given, except as otherwise provided in this Act or the
14    Illinois Administrative Code;
15        (2) give dispensing equipment free of charge to a
16    special event retailer only for the duration of the
17    licensed special event. A manufacturer, distributor, or
18    importing distributor shall not supply a special event
19    retailer with free beer, wine, or distilled spirits for the
20    event the dispensing equipment is given, except as
21    otherwise provided in this Act or the Illinois
22    Administrative Code; or
23        (3) sell dispensing equipment to a retailer, special
24    event retailer, special use permit licensee, or caterer
25    retailer for a price that is not less than the cost to the

 

 

SB1831 Engrossed- 45 -LRB101 09851 RPS 54953 b

1    manufacturer, distributor, or importing distributor. For
2    purposes of this paragraph (3), the cost of dispensing
3    equipment is the amount that the manufacturer,
4    distributor, or importing distributor paid for the
5    dispensing equipment. If the manufacturer, distributor, or
6    importing distributor did not pay for the dispensing
7    equipment but was given the equipment, the cost of the
8    dispensing equipment is equal to (i) the amount another
9    manufacturer, distributor, or importing distributor paid
10    for the dispensing equipment, (ii) the cost of
11    manufacturing or producing the dispensing equipment, or
12    (iii) the fair market value of the dispensing equipment.
13    A manufacturer, distributor, or importing distributor may
14also enter into a written lease for the fair market value of
15the dispensing equipment to retailers, special event
16retailers, special use permit licensees, or caterer retailers.
17The manufacturer, distributor, or importing distributor shall
18invoice and collect the sale price or payment for the entire
19lease period from the retailer, special event retailer, special
20use permit licensee, or caterer retailer within 30 days of the
21date of the invoice or from the date the lease is executed. The
22term of any lease for dispensing equipment shall not exceed 180
23days and no 180-day lease shall be renewed automatically. Upon
24expiration of a 180-day lease, there shall be a lapse of 30
25consecutive days before the beginning of a new lease term.
26    Notwithstanding any provision of this Section to the

 

 

SB1831 Engrossed- 46 -LRB101 09851 RPS 54953 b

1contrary, a manufacturer, distributor, or importing
2distributor may also enter into a written lease for the fair
3market value of the dispensing equipment to retailers, special
4event retailers, special use permit licensees, or caterer
5retailers that sell alcoholic liquor at concert venues,
6stadiums, convention or conference centers, theaters or music
7venues where the primary purpose of the venue is to host live
8entertainment, and State and county fairs, for which the term
9of the lease shall correspond with the entire season or
10calendar of games, concerts, conferences, or other events of a
11similar nature. At the direction of the manufacturer,
12distributor, or importing distributor, the retailer, special
13event retailer, special use permit licensee, or caterer
14retailer shall return the equipment or the manufacturer,
15distributor, or importing distributor shall retrieve the
16dispensing equipment at the termination of the lease.
17    In this Section, "dispensing equipment" means any portable
18or temporary unit the primary purpose of which is to pour
19alcoholic liquor or to maintain the alcoholic liquor in a
20consumable state. "Dispensing equipment" includes courtesy
21wagons, beer wagons, beer trailers, ice bins, draft coolers,
22coil boxes, portable bars, and kiosks. "Dispensing equipment"
23does not include permanent tap systems, permanent
24refrigeration systems, or any other built-in or physically
25attached fixture of the retailer, special event retailer,
26special use permit licensee, or caterer retailer.

 

 

SB1831 Engrossed- 47 -LRB101 09851 RPS 54953 b

1    In this Section, "fair market value" for the purposes of
2leasing dispensing equipment means (i) the cost of depreciation
3of the dispensing equipment to the manufacturer, distributor,
4or importing distributor for the same period of the lease or
5(ii) the cost of depreciation the manufacturer, distributor, or
6importing distributor would have incurred based upon the market
7value of the dispensing equipment if the manufacturer,
8distributor, or importing distributor did not pay for the
9dispensing equipment.
 
10    (235 ILCS 5/8-1)
11    Sec. 8-1. A tax is imposed upon the privilege of engaging
12in business as a manufacturer or as an importing distributor of
13alcoholic liquor other than beer at the rate of $0.185 per
14gallon until September 1, 2009 and $0.231 per gallon beginning
15September 1, 2009 for cider containing not less than 0.5%
16alcohol by volume nor more than 7% alcohol by volume, $0.73 per
17gallon until September 1, 2009 and $1.39 per gallon beginning
18September 1, 2009 for wine other than cider containing less
19than 7% alcohol by volume, and $4.50 per gallon until September
201, 2009 and $8.55 per gallon beginning September 1, 2009 on
21alcohol and spirits manufactured and sold or used by such
22manufacturer, or as agent for any other person, or sold or used
23by such importing distributor, or as agent for any other
24person. A tax is imposed upon the privilege of engaging in
25business as a manufacturer of beer or as an importing

 

 

SB1831 Engrossed- 48 -LRB101 09851 RPS 54953 b

1distributor of beer at the rate of $0.185 per gallon until
2September 1, 2009 and $0.231 per gallon beginning September 1,
32009 on all beer, regardless of alcohol by volume, manufactured
4and sold or used by such manufacturer, or as agent for any
5other person, or sold or used by such importing distributor, or
6as agent for any other person. Any brewer manufacturing beer in
7this State shall be entitled to and given a credit or refund of
875% of the tax imposed on each gallon of beer up to 4.9 million
9gallons per year in any given calendar year for tax paid or
10payable on beer produced and sold in the State of Illinois.
11    For purposes of this Section, "beer" means beer, ale,
12porter, stout, and other similar fermented beverages of any
13name or description containing one-half of one percent or more
14of alcohol by volume, brewed or produced from malt, wholly or
15in part, or from any substitute for malt.
16    For the purpose of this Section, "cider" means any
17alcoholic beverage obtained by the alcohol fermentation of the
18juice of apples or pears including, but not limited to,
19flavored, sparkling, or carbonated cider.
20    The credit or refund created by this Act shall apply to all
21beer taxes in the calendar years 1982 through 1986.
22    The increases made by this amendatory Act of the 91st
23General Assembly in the rates of taxes imposed under this
24Section shall apply beginning on July 1, 1999.
25    A tax at the rate of 1¢ per gallon on beer and 48¢ per
26gallon on alcohol and spirits is also imposed upon the

 

 

SB1831 Engrossed- 49 -LRB101 09851 RPS 54953 b

1privilege of engaging in business as a retailer or as a
2distributor who is not also an importing distributor with
3respect to all beer and all alcohol and spirits owned or
4possessed by such retailer or distributor when this amendatory
5Act of 1969 becomes effective, and with respect to which the
6additional tax imposed by this amendatory Act upon
7manufacturers and importing distributors does not apply.
8Retailers and distributors who are subject to the additional
9tax imposed by this paragraph of this Section shall be required
10to inventory such alcoholic liquor and to pay this additional
11tax in a manner prescribed by the Department.
12    The provisions of this Section shall be construed to apply
13to any importing distributor engaging in business in this
14State, whether licensed or not.
15    However, such tax is not imposed upon any such business as
16to any alcoholic liquor shipped outside Illinois by an Illinois
17licensed manufacturer or importing distributor, nor as to any
18alcoholic liquor delivered in Illinois by an Illinois licensed
19manufacturer or importing distributor to a purchaser for
20immediate transportation by the purchaser to another state into
21which the purchaser has a legal right, under the laws of such
22state, to import such alcoholic liquor, nor as to any alcoholic
23liquor other than beer sold by one Illinois licensed
24manufacturer or importing distributor to another Illinois
25licensed manufacturer or importing distributor to the extent to
26which the sale of alcoholic liquor other than beer by one

 

 

SB1831 Engrossed- 50 -LRB101 09851 RPS 54953 b

1Illinois licensed manufacturer or importing distributor to
2another Illinois licensed manufacturer or importing
3distributor is authorized by the licensing provisions of this
4Act, nor to alcoholic liquor whether manufactured in or
5imported into this State when sold to a "non-beverage user"
6licensed by the State for use in the manufacture of any of the
7following when they are unfit for beverage purposes:
8    Patent and proprietary medicines and medicinal,
9antiseptic, culinary and toilet preparations;
10    Flavoring extracts and syrups and food products;
11    Scientific, industrial and chemical products, excepting
12denatured alcohol;
13    Or for scientific, chemical, experimental or mechanical
14purposes;
15    Nor is the tax imposed upon the privilege of engaging in
16any business in interstate commerce or otherwise, which
17business may not, under the Constitution and Statutes of the
18United States, be made the subject of taxation by this State.
19    The tax herein imposed shall be in addition to all other
20occupation or privilege taxes imposed by the State of Illinois
21or political subdivision thereof.
22    If any alcoholic liquor manufactured in or imported into
23this State is sold to a licensed manufacturer or importing
24distributor by a licensed manufacturer or importing
25distributor to be used solely as an ingredient in the
26manufacture of any beverage for human consumption, the tax

 

 

SB1831 Engrossed- 51 -LRB101 09851 RPS 54953 b

1imposed upon such purchasing manufacturer or importing
2distributor shall be reduced by the amount of the taxes which
3have been paid by the selling manufacturer or importing
4distributor under this Act as to such alcoholic liquor so used
5to the Department of Revenue.
6    If any person received any alcoholic liquors from a
7manufacturer or importing distributor, with respect to which
8alcoholic liquors no tax is imposed under this Article, and
9such alcoholic liquor shall thereafter be disposed of in such
10manner or under such circumstances as may cause the same to
11become the base for the tax imposed by this Article, such
12person shall make the same reports and returns, pay the same
13taxes and be subject to all other provisions of this Article
14relating to manufacturers and importing distributors.
15    Nothing in this Article shall be construed to require the
16payment to the Department of the taxes imposed by this Article
17more than once with respect to any quantity of alcoholic liquor
18sold or used within this State.
19    No tax is imposed by this Act on sales of alcoholic liquor
20by Illinois licensed foreign importers to Illinois licensed
21importing distributors.
22    All of the proceeds of the additional tax imposed by Public
23Act 96-34 shall be deposited by the Department into the Capital
24Projects Fund. The remainder of the tax imposed by this Act
25shall be deposited by the Department into the General Revenue
26Fund.

 

 

SB1831 Engrossed- 52 -LRB101 09851 RPS 54953 b

1    A manufacturer of beer that imports or transfers beer into
2this State must comply with the provisions of this Section with
3regard to the beer imported into this State.
4    The provisions of this Section 8-1 are severable under
5Section 1.31 of the Statute on Statutes.
6(Source: P.A. 100-885, eff. 8-14-18.)
 
7    (235 ILCS 5/8-5)  (from Ch. 43, par. 163a)
8    (Text of Section before amendment by P.A. 100-1050)
9    Sec. 8-5. As soon as practicable after any return is filed,
10the Department shall examine such return and shall correct such
11return according to its best judgment and information, which
12return so corrected by the Department shall be prima facie
13correct and shall be prima facie evidence of the correctness of
14the amount of tax due, as shown therein. Instead of requiring
15the licensee to file an amended return, the Department may
16simply notify the licensee of the correction or corrections it
17has made. Proof of such correction by the Department, or of the
18determination of the amount of tax due as provided in Sections
198-4 and 8-10, may be made at any hearing before the Department
20or in any legal proceeding by a reproduced copy of the
21Department's record relating thereto in the name of the
22Department under the certificate of the Director of Revenue.
23Such reproduced copy shall, without further proof, be admitted
24into evidence before the Department or in any legal proceeding
25and shall be prima facie proof of the correctness of the amount

 

 

SB1831 Engrossed- 53 -LRB101 09851 RPS 54953 b

1of tax due, as shown therein. If the return so corrected by the
2Department discloses the sale or use, by a licensed
3manufacturer or importing distributor, of alcoholic liquors as
4to which the tax provided for in this Article should have been
5paid, but has not been paid, in excess of the alcoholic liquors
6reported as being taxable by the licensee, and as to which the
7proper tax was paid the Department shall notify the licensee
8that it shall issue the taxpayer a notice of tax liability for
9the amount of tax claimed by the Department to be due, together
10with penalties at the rates prescribed by Sections 3-3, 3-5 and
113-6 of the Uniform Penalty and Interest Act, which amount of
12tax shall be equivalent to the amount of tax which, at the
13prescribed rate per gallon, should have been paid with respect
14to the alcoholic liquors disposed of in excess of those
15reported as being taxable. No earlier than 90 days after the
16due date of the return, the Department may compare filed
17returns, or any amendments thereto, against reports of sales of
18alcoholic liquor submitted to the Department by other
19manufacturers and distributors. If a return or amended return
20is corrected by the Department because the return or amended
21return failed to disclose the purchase of alcoholic liquor from
22manufacturers or distributors on which the tax provided for in
23this Article should have been paid, but has not been paid, the
24Department shall issue the taxpayer a notice of tax liability
25for the amount of tax claimed by the Department to be due,
26together with penalties at the rates prescribed by Sections

 

 

SB1831 Engrossed- 54 -LRB101 09851 RPS 54953 b

13-3, 3-5, and 3-6 of the Uniform Penalty and Interest Act. In a
2case where no return has been filed, the Department shall
3determine the amount of tax due according to its best judgment
4and information and shall issue the taxpayer a notice of tax
5liability for the amount of tax claimed by the Department to be
6due as herein provided together with penalties at the rates
7prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform Penalty
8and Interest Act. If, in administering the provisions of this
9Act, a comparison of a licensee's return or returns with the
10books, records and physical inventories of such licensee
11discloses a deficiency which cannot be allocated by the
12Department to a particular month or months, the Department
13shall issue the taxpayer a notice of tax liability for the
14amount of tax claimed by the Department to be due for a given
15period, but without any obligation upon the Department to
16allocate such deficiency to any particular month or months,
17together with penalties at the rates prescribed by Sections
183-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, which
19amount of tax shall be equivalent to the amount of tax which,
20at the prescribed rate per gallon, should have been paid with
21respect to the alcoholic liquors disposed of in excess of those
22reported being taxable, with the tax thereon having been paid
23under which circumstances the aforesaid notice of tax liability
24shall be prima facie correct and shall be prima facie evidence
25of the correctness of the amount of tax due as shown therein;
26and proof of such correctness may be made in accordance with,

 

 

SB1831 Engrossed- 55 -LRB101 09851 RPS 54953 b

1and the admissibility of a reproduced copy of such notice of
2the Department's notice of tax liability shall be governed by,
3all the provisions of this Act applicable to corrected returns.
4    If the licensee dies or becomes a person under legal
5disability at any time before the Department issues its notice
6of tax liability, such notice shall be issued to the
7administrator, executor or other legal representative, as
8such, of the deceased or licensee who is under legal
9disability.
10    If such licensee or legal representative, within 60 days
11after such notice of tax liability, files a protest to such
12notice of tax liability and requests a hearing thereon, the
13Department shall give at least 7 days' notice to such licensee
14or legal representative, as the case may be, of the time and
15place fixed for such hearing and shall hold a hearing in
16conformity with the provisions of this Act, and pursuant
17thereto shall issue a final assessment to such licensee or
18legal representative for the amount found to be due as a result
19of such hearing.
20    If a protest to the notice of tax liability and a request
21for a hearing thereon is not filed within 60 days after such
22notice of tax liability, such notice of tax liability shall
23become final without the necessity of a final assessment being
24issued and shall be deemed to be a final assessment.
25    In case of failure to pay the tax, or any portion thereof,
26or any penalty provided for herein, when due, the Department

 

 

SB1831 Engrossed- 56 -LRB101 09851 RPS 54953 b

1may recover the amount of such tax, or portion thereof, or
2penalty in a civil action; or if the licensee dies or becomes a
3person under legal disability, by filing a claim therefor
4against his or her estate; provided that no such claim shall be
5filed against the estate of any deceased or of the licensee who
6is under legal disability for any tax or penalty or portion
7thereof except in the manner prescribed and within the time
8limited by the Probate Act of 1975, as amended.
9    The collection of any such tax and penalty, or either, by
10any means provided for herein, shall not be a bar to any
11prosecution under this Act.
12    In addition to any other penalty provided for in this
13Article, all provisions of the Uniform Penalty and Interest Act
14that are not inconsistent with this Act apply any licensee who
15fails to pay any tax within the time required by this Article
16shall be subject to assessment of penalties and interest at
17rates set forth in the Uniform Penalty and Interest Act.
18(Source: P.A. 87-205; 87-879.)
 
19    (Text of Section after amendment by P.A. 100-1050)
20    Sec. 8-5. As soon as practicable after any return is filed
21but not before 90 days after the return is filed, or any
22amendments to that return, whichever is later, the Department
23shall examine such return or amended return and shall correct
24such return according to its best judgment and information,
25which return so corrected by the Department shall be prima

 

 

SB1831 Engrossed- 57 -LRB101 09851 RPS 54953 b

1facie correct and shall be prima facie evidence of the
2correctness of the amount of tax due, as shown therein. Instead
3of requiring the licensee to file an amended return, the
4Department may simply notify the licensee of the correction or
5corrections it has made. Proof of such correction by the
6Department, or of the determination of the amount of tax due as
7provided in Sections 8-4 and 8-10, may be made at any hearing
8before the Department or in any legal proceeding by a
9reproduced copy of the Department's record relating thereto in
10the name of the Department under the certificate of the
11Director of Revenue. Such reproduced copy shall, without
12further proof, be admitted into evidence before the Department
13or in any legal proceeding and shall be prima facie proof of
14the correctness of the amount of tax due, as shown therein. If
15the return so corrected by the Department discloses the sale or
16use, by a licensed manufacturer or importing distributor, of
17alcoholic liquors as to which the tax provided for in this
18Article should have been paid, but has not been paid, in excess
19of the alcoholic liquors reported as being taxable by the
20licensee, and as to which the proper tax was paid the
21Department shall notify the licensee that it shall issue the
22taxpayer a notice of tax liability for the amount of tax
23claimed by the Department to be due, together with penalties at
24the rates prescribed by Sections 3-3, 3-5 and 3-6 of the
25Uniform Penalty and Interest Act, which amount of tax shall be
26equivalent to the amount of tax which, at the prescribed rate

 

 

SB1831 Engrossed- 58 -LRB101 09851 RPS 54953 b

1per gallon, should have been paid with respect to the alcoholic
2liquors disposed of in excess of those reported as being
3taxable. No earlier than 90 days after the due date of the
4return, the Department may compare filed returns, or any
5amendments thereto, against reports of sales of alcoholic
6liquor submitted to the Department by other manufacturers and
7distributors. If a return or amended return is corrected by the
8Department because the return or amended return failed to
9disclose the purchase of alcoholic liquor from manufacturers or
10distributors on which the tax provided for in this Article
11should have been paid, but has not been paid, the Department
12shall issue the taxpayer a notice of tax liability for the
13amount of tax claimed by the Department to be due, together
14with penalties at the rates prescribed by Sections 3-3, 3-5,
15and 3-6 of the Uniform Penalty and Interest Act. In a case
16where no return has been filed, the Department shall determine
17the amount of tax due according to its best judgment and
18information and shall issue the taxpayer a notice of tax
19liability for the amount of tax claimed by the Department to be
20due as herein provided together with penalties at the rates
21prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform Penalty
22and Interest Act. If, in administering the provisions of this
23Act, a comparison of a licensee's return or returns with the
24books, records and physical inventories of such licensee
25discloses a deficiency which cannot be allocated by the
26Department to a particular month or months, the Department

 

 

SB1831 Engrossed- 59 -LRB101 09851 RPS 54953 b

1shall issue the taxpayer a notice of tax liability for the
2amount of tax claimed by the Department to be due for a given
3period, but without any obligation upon the Department to
4allocate such deficiency to any particular month or months,
5together with penalties at the rates prescribed by Sections
63-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, which
7amount of tax shall be equivalent to the amount of tax which,
8at the prescribed rate per gallon, should have been paid with
9respect to the alcoholic liquors disposed of in excess of those
10reported being taxable, with the tax thereon having been paid
11under which circumstances the aforesaid notice of tax liability
12shall be prima facie correct and shall be prima facie evidence
13of the correctness of the amount of tax due as shown therein;
14and proof of such correctness may be made in accordance with,
15and the admissibility of a reproduced copy of such notice of
16the Department's notice of tax liability shall be governed by,
17all the provisions of this Act applicable to corrected returns.
18    If the licensee dies or becomes a person under legal
19disability at any time before the Department issues its notice
20of tax liability, such notice shall be issued to the
21administrator, executor or other legal representative, as
22such, of the deceased or licensee who is under legal
23disability.
24    If such licensee or legal representative, within 60 days
25after such notice of tax liability, files a protest to such
26notice of tax liability and requests a hearing thereon, the

 

 

SB1831 Engrossed- 60 -LRB101 09851 RPS 54953 b

1Department shall give at least 7 days' notice to such licensee
2or legal representative, as the case may be, of the time and
3place fixed for such hearing and shall hold a hearing in
4conformity with the provisions of this Act, and pursuant
5thereto shall issue a final assessment to such licensee or
6legal representative for the amount found to be due as a result
7of such hearing.
8    If a protest to the notice of tax liability and a request
9for a hearing thereon is not filed within 60 days after such
10notice of tax liability, such notice of tax liability shall
11become final without the necessity of a final assessment being
12issued and shall be deemed to be a final assessment.
13    In case of failure to pay the tax, or any portion thereof,
14or any penalty provided for herein, when due, the Department
15may recover the amount of such tax, or portion thereof, or
16penalty in a civil action; or if the licensee dies or becomes a
17person under legal disability, by filing a claim therefor
18against his or her estate; provided that no such claim shall be
19filed against the estate of any deceased or of the licensee who
20is under legal disability for any tax or penalty or portion
21thereof except in the manner prescribed and within the time
22limited by the Probate Act of 1975, as amended.
23    The collection of any such tax and penalty, or either, by
24any means provided for herein, shall not be a bar to any
25prosecution under this Act.
26    In addition to any other penalty provided for in this

 

 

SB1831 Engrossed- 61 -LRB101 09851 RPS 54953 b

1Article, all provisions of the Uniform Penalty and Interest Act
2that are not inconsistent with this Act apply any licensee who
3fails to pay any tax within the time required by this Article
4shall be subject to assessment of penalties and interest at
5rates set forth in the Uniform Penalty and Interest Act.
6(Source: P.A. 100-1050, eff. 7-1-19.)
 
7    Section 95. No acceleration or delay. Where this Act makes
8changes in a statute that is represented in this Act by text
9that is not yet or no longer in effect (for example, a Section
10represented by multiple versions), the use of that text does
11not accelerate or delay the taking effect of (i) the changes
12made by this Act or (ii) provisions derived from any other
13Public Act.