103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2399

 

Introduced 2/15/2023, by Rep. Daniel Didech

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 140/7.5
235 ILCS 5/1-3.45 new
235 ILCS 5/3-12
235 ILCS 5/5-1  from Ch. 43, par. 115
235 ILCS 5/5-8 new
235 ILCS 5/6-29  from Ch. 43, par. 144e
235 ILCS 5/7-3.5 new
235 ILCS 5/7-15 new

    Amends the Liquor Control Act of 1934. Provides for the registration of third-party providers that ship wine to residents of this State on behalf of winery shippers. With regard to third-party providers, sets forth provisions concerning registration applications; recordkeeping; reporting; and suspending, revoking, or refusing to issue or renew a registration. Provides that a carrier may not deliver to a consumer a package known by the carrier to contain wine unless the consignor is a licensed winery shipper or registered third-party provider and the carrier has verified that license or registration for the current license period. Requires winery shippers, third-party providers, and carriers to file with the Illinois Liquor Control Commission a monthly report containing specified information concerning wine shipments. Provides that the State Commission may suspend, revoke, or refuse to issue or renew a license to manufacture, distribute, or sell alcoholic liquor issued by the State Commission if the State Commission finds, after notice and an opportunity for an evidentiary hearing, that the person holding the license has shipped alcoholic liquor into another state in violation of that state's law. Makes other changes. Amends the Freedom of Information Act to make a conforming change.


LRB103 28782 RPS 55167 b

 

 

A BILL FOR

 

HB2399LRB103 28782 RPS 55167 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 Freedom of Information Act is amended by
5changing Section 7.5 as follows:
 
6    (5 ILCS 140/7.5)
7    Sec. 7.5. Statutory exemptions. To the extent provided for
8by the statutes referenced below, the following shall be
9exempt from inspection and copying:
10        (a) All information determined to be confidential
11    under Section 4002 of the Technology Advancement and
12    Development Act.
13        (b) Library circulation and order records identifying
14    library users with specific materials under the Library
15    Records Confidentiality Act.
16        (c) Applications, related documents, and medical
17    records received by the Experimental Organ Transplantation
18    Procedures Board and any and all documents or other
19    records prepared by the Experimental Organ Transplantation
20    Procedures Board or its staff relating to applications it
21    has received.
22        (d) Information and records held by the Department of
23    Public Health and its authorized representatives relating

 

 

HB2399- 2 -LRB103 28782 RPS 55167 b

1    to known or suspected cases of sexually transmissible
2    disease or any information the disclosure of which is
3    restricted under the Illinois Sexually Transmissible
4    Disease Control Act.
5        (e) Information the disclosure of which is exempted
6    under Section 30 of the Radon Industry Licensing Act.
7        (f) Firm performance evaluations under Section 55 of
8    the Architectural, Engineering, and Land Surveying
9    Qualifications Based Selection Act.
10        (g) Information the disclosure of which is restricted
11    and exempted under Section 50 of the Illinois Prepaid
12    Tuition Act.
13        (h) Information the disclosure of which is exempted
14    under the State Officials and Employees Ethics Act, and
15    records of any lawfully created State or local inspector
16    general's office that would be exempt if created or
17    obtained by an Executive Inspector General's office under
18    that Act.
19        (i) Information contained in a local emergency energy
20    plan submitted to a municipality in accordance with a
21    local emergency energy plan ordinance that is adopted
22    under Section 11-21.5-5 of the Illinois Municipal Code.
23        (j) Information and data concerning the distribution
24    of surcharge moneys collected and remitted by carriers
25    under the Emergency Telephone System Act.
26        (k) Law enforcement officer identification information

 

 

HB2399- 3 -LRB103 28782 RPS 55167 b

1    or driver identification information compiled by a law
2    enforcement agency or the Department of Transportation
3    under Section 11-212 of the Illinois Vehicle Code.
4        (l) Records and information provided to a residential
5    health care facility resident sexual assault and death
6    review team or the Executive Council under the Abuse
7    Prevention Review Team Act.
8        (m) Information provided to the predatory lending
9    database created pursuant to Article 3 of the Residential
10    Real Property Disclosure Act, except to the extent
11    authorized under that Article.
12        (n) Defense budgets and petitions for certification of
13    compensation and expenses for court appointed trial
14    counsel as provided under Sections 10 and 15 of the
15    Capital Crimes Litigation Act. This subsection (n) shall
16    apply until the conclusion of the trial of the case, even
17    if the prosecution chooses not to pursue the death penalty
18    prior to trial or sentencing.
19        (o) Information that is prohibited from being
20    disclosed under Section 4 of the Illinois Health and
21    Hazardous Substances Registry Act.
22        (p) Security portions of system safety program plans,
23    investigation reports, surveys, schedules, lists, data, or
24    information compiled, collected, or prepared by or for the
25    Department of Transportation under Sections 2705-300 and
26    2705-616 of the Department of Transportation Law of the

 

 

HB2399- 4 -LRB103 28782 RPS 55167 b

1    Civil Administrative Code of Illinois, the Regional
2    Transportation Authority under Section 2.11 of the
3    Regional Transportation Authority Act, or the St. Clair
4    County Transit District under the Bi-State Transit Safety
5    Act.
6        (q) Information prohibited from being disclosed by the
7    Personnel Record Review Act.
8        (r) Information prohibited from being disclosed by the
9    Illinois School Student Records Act.
10        (s) Information the disclosure of which is restricted
11    under Section 5-108 of the Public Utilities Act.
12        (t) All identified or deidentified health information
13    in the form of health data or medical records contained
14    in, stored in, submitted to, transferred by, or released
15    from the Illinois Health Information Exchange, and
16    identified or deidentified health information in the form
17    of health data and medical records of the Illinois Health
18    Information Exchange in the possession of the Illinois
19    Health Information Exchange Office due to its
20    administration of the Illinois Health Information
21    Exchange. The terms "identified" and "deidentified" shall
22    be given the same meaning as in the Health Insurance
23    Portability and Accountability Act of 1996, Public Law
24    104-191, or any subsequent amendments thereto, and any
25    regulations promulgated thereunder.
26        (u) Records and information provided to an independent

 

 

HB2399- 5 -LRB103 28782 RPS 55167 b

1    team of experts under the Developmental Disability and
2    Mental Health Safety Act (also known as Brian's Law).
3        (v) Names and information of people who have applied
4    for or received Firearm Owner's Identification Cards under
5    the Firearm Owners Identification Card Act or applied for
6    or received a concealed carry license under the Firearm
7    Concealed Carry Act, unless otherwise authorized by the
8    Firearm Concealed Carry Act; and databases under the
9    Firearm Concealed Carry Act, records of the Concealed
10    Carry Licensing Review Board under the Firearm Concealed
11    Carry Act, and law enforcement agency objections under the
12    Firearm Concealed Carry Act.
13        (v-5) Records of the Firearm Owner's Identification
14    Card Review Board that are exempted from disclosure under
15    Section 10 of the Firearm Owners Identification Card Act.
16        (w) Personally identifiable information which is
17    exempted from disclosure under subsection (g) of Section
18    19.1 of the Toll Highway Act.
19        (x) Information which is exempted from disclosure
20    under Section 5-1014.3 of the Counties Code or Section
21    8-11-21 of the Illinois Municipal Code.
22        (y) Confidential information under the Adult
23    Protective Services Act and its predecessor enabling
24    statute, the Elder Abuse and Neglect Act, including
25    information about the identity and administrative finding
26    against any caregiver of a verified and substantiated

 

 

HB2399- 6 -LRB103 28782 RPS 55167 b

1    decision of abuse, neglect, or financial exploitation of
2    an eligible adult maintained in the Registry established
3    under Section 7.5 of the Adult Protective Services Act.
4        (z) Records and information provided to a fatality
5    review team or the Illinois Fatality Review Team Advisory
6    Council under Section 15 of the Adult Protective Services
7    Act.
8        (aa) Information which is exempted from disclosure
9    under Section 2.37 of the Wildlife Code.
10        (bb) Information which is or was prohibited from
11    disclosure by the Juvenile Court Act of 1987.
12        (cc) Recordings made under the Law Enforcement
13    Officer-Worn Body Camera Act, except to the extent
14    authorized under that Act.
15        (dd) Information that is prohibited from being
16    disclosed under Section 45 of the Condominium and Common
17    Interest Community Ombudsperson Act.
18        (ee) Information that is exempted from disclosure
19    under Section 30.1 of the Pharmacy Practice Act.
20        (ff) Information that is exempted from disclosure
21    under the Revised Uniform Unclaimed Property Act.
22        (gg) Information that is prohibited from being
23    disclosed under Section 7-603.5 of the Illinois Vehicle
24    Code.
25        (hh) Records that are exempt from disclosure under
26    Section 1A-16.7 of the Election Code.

 

 

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1        (ii) Information which is exempted from disclosure
2    under Section 2505-800 of the Department of Revenue Law of
3    the Civil Administrative Code of Illinois.
4        (jj) Information and reports that are required to be
5    submitted to the Department of Labor by registering day
6    and temporary labor service agencies but are exempt from
7    disclosure under subsection (a-1) of Section 45 of the Day
8    and Temporary Labor Services Act.
9        (kk) Information prohibited from disclosure under the
10    Seizure and Forfeiture Reporting Act.
11        (ll) Information the disclosure of which is restricted
12    and exempted under Section 5-30.8 of the Illinois Public
13    Aid Code.
14        (mm) Records that are exempt from disclosure under
15    Section 4.2 of the Crime Victims Compensation Act.
16        (nn) Information that is exempt from disclosure under
17    Section 70 of the Higher Education Student Assistance Act.
18        (oo) Communications, notes, records, and reports
19    arising out of a peer support counseling session
20    prohibited from disclosure under the First Responders
21    Suicide Prevention Act.
22        (pp) Names and all identifying information relating to
23    an employee of an emergency services provider or law
24    enforcement agency under the First Responders Suicide
25    Prevention Act.
26        (qq) Information and records held by the Department of

 

 

HB2399- 8 -LRB103 28782 RPS 55167 b

1    Public Health and its authorized representatives collected
2    under the Reproductive Health Act.
3        (rr) Information that is exempt from disclosure under
4    the Cannabis Regulation and Tax Act.
5        (ss) Data reported by an employer to the Department of
6    Human Rights pursuant to Section 2-108 of the Illinois
7    Human Rights Act.
8        (tt) Recordings made under the Children's Advocacy
9    Center Act, except to the extent authorized under that
10    Act.
11        (uu) Information that is exempt from disclosure under
12    Section 50 of the Sexual Assault Evidence Submission Act.
13        (vv) Information that is exempt from disclosure under
14    subsections (f) and (j) of Section 5-36 of the Illinois
15    Public Aid Code.
16        (ww) Information that is exempt from disclosure under
17    Section 16.8 of the State Treasurer Act.
18        (xx) Information that is exempt from disclosure or
19    information that shall not be made public under the
20    Illinois Insurance Code.
21        (yy) Information prohibited from being disclosed under
22    the Illinois Educational Labor Relations Act.
23        (zz) Information prohibited from being disclosed under
24    the Illinois Public Labor Relations Act.
25        (aaa) Information prohibited from being disclosed
26    under Section 1-167 of the Illinois Pension Code.

 

 

HB2399- 9 -LRB103 28782 RPS 55167 b

1        (bbb) Information that is prohibited from disclosure
2    by the Illinois Police Training Act and the Illinois State
3    Police Act.
4        (ccc) Records exempt from disclosure under Section
5    2605-304 of the Illinois State Police Law of the Civil
6    Administrative Code of Illinois.
7        (ddd) Information prohibited from being disclosed
8    under Section 35 of the Address Confidentiality for
9    Victims of Domestic Violence, Sexual Assault, Human
10    Trafficking, or Stalking Act.
11        (eee) Information prohibited from being disclosed
12    under subsection (b) of Section 75 of the Domestic
13    Violence Fatality Review Act.
14        (fff) Images from cameras under the Expressway Camera
15    Act. This subsection (fff) is inoperative on and after
16    July 1, 2023.
17        (ggg) Information prohibited from disclosure under
18    paragraph (3) of subsection (a) of Section 14 of the Nurse
19    Agency Licensing Act.
20        (hhh) Information submitted to the Illinois Department
21    of State Police in an affidavit or application for an
22    assault weapon endorsement, assault weapon attachment
23    endorsement, .50 caliber rifle endorsement, or .50 caliber
24    cartridge endorsement under the Firearm Owners
25    Identification Card Act.
26        (iii) Information prohibited from being disclosed

 

 

HB2399- 10 -LRB103 28782 RPS 55167 b

1    under Section 6-28 of the Liquor Control Act of 1934.
2(Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19;
3101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff.
41-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452,
5eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19;
6101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff.
71-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237,
8eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21;
9102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff.
107-1-22; 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; revised
112-13-23.)
 
12    Section 10. The Liquor Control Act of 1934 is amended by
13changing Sections 3-12, 5-1, and 6-29 and by adding Sections
141-3.45, 5-8, 7-3.5, and 7-15 as follows:
 
15    (235 ILCS 5/1-3.45 new)
16    Sec. 1-3.45. Third-party provider. "Third-party provider"
17means any entity that provides fulfillment house services,
18including warehousing, packaging, distribution, order
19processing, or shipment of wine, but not the sale of wine, on
20behalf of a winery shipper.
 
21    (235 ILCS 5/3-12)
22    Sec. 3-12. Powers and duties of State Commission.
23    (a) The State Commission shall have the following powers,

 

 

HB2399- 11 -LRB103 28782 RPS 55167 b

1functions, and duties:
2        (1) To receive applications, to register third-party
3    providers, and to issue licenses to manufacturers, foreign
4    importers, importing distributors, distributors,
5    non-resident dealers, on premise consumption retailers,
6    off premise sale retailers, special event retailer
7    licensees, special use permit licenses, auction liquor
8    licenses, brew pubs, caterer retailers, non-beverage
9    users, railroads, including owners and lessees of
10    sleeping, dining and cafe cars, airplanes, boats, brokers,
11    and wine maker's premises licensees in accordance with the
12    provisions of this Act, and to suspend or revoke such
13    licenses and registrations upon the State Commission's
14    determination, upon notice after hearing, that a licensee
15    or registrant has violated any provision of this Act or
16    any rule or regulation issued pursuant thereto and in
17    effect for 30 days prior to such violation. Except in the
18    case of an action taken pursuant to a violation of Section
19    6-3, 6-5, or 6-9, any action by the State Commission to
20    suspend or revoke a licensee's license or a registrant's
21    registration may be limited to the license or registration
22    for the specific premises where the violation occurred. An
23    action for a violation of this Act shall be commenced by
24    the State Commission within 2 years after the date the
25    State Commission becomes aware of the violation.
26        In lieu of suspending or revoking a license or

 

 

HB2399- 12 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 13 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 14 -LRB103 28782 RPS 55167 b

1    regulations, not inconsistent with the law, for the
2    distribution and sale of alcoholic liquors throughout the
3    State.
4        (5) To inspect, or cause to be inspected, any premises
5    in this State where alcoholic liquors are manufactured,
6    distributed, warehoused, or sold. Nothing in this Act
7    authorizes an agent of the State Commission to inspect
8    private areas within the premises without reasonable
9    suspicion or a warrant during an inspection. "Private
10    areas" include, but are not limited to, safes, personal
11    property, and closed desks.
12        (5.1) Upon receipt of a complaint or upon having
13    knowledge that any person is engaged in business as a
14    manufacturer, importing distributor, distributor, or
15    retailer without a license or valid license or as a
16    third-party provider without registering with the State
17    Commission, to conduct an investigation. If, after
18    conducting an investigation, the State Commission is
19    satisfied that the alleged conduct occurred or is
20    occurring, it may issue a cease and desist notice as
21    provided in this Act, impose civil penalties as provided
22    in this Act, notify the local liquor authority, or file a
23    complaint with the State's Attorney's Office of the county
24    where the incident occurred or the Attorney General.
25        (5.2) Upon receipt of a complaint or upon having
26    knowledge that any person is shipping alcoholic liquor

 

 

HB2399- 15 -LRB103 28782 RPS 55167 b

1    into this State from a point outside of this State if the
2    shipment is in violation of this Act, to conduct an
3    investigation. If, after conducting an investigation, the
4    State Commission is satisfied that the alleged conduct
5    occurred or is occurring, it may issue a cease and desist
6    notice as provided in this Act, impose civil penalties as
7    provided in this Act, notify the foreign jurisdiction, or
8    file a complaint with the State's Attorney's Office of the
9    county where the incident occurred or the Attorney
10    General.
11        (5.3) To receive complaints from licensees,
12    registrants, local officials, law enforcement agencies,
13    organizations, and persons stating that any licensee or
14    registrant has been or is violating any provision of this
15    Act or the rules and regulations issued pursuant to this
16    Act. Such complaints shall be in writing, signed and sworn
17    to by the person making the complaint, and shall state
18    with specificity the facts in relation to the alleged
19    violation. If the State Commission has reasonable grounds
20    to believe that the complaint substantially alleges a
21    violation of this Act or rules and regulations adopted
22    pursuant to this Act, it shall conduct an investigation.
23    If, after conducting an investigation, the State
24    Commission is satisfied that the alleged violation did
25    occur, it shall proceed with disciplinary action against
26    the licensee or registrant as provided in this Act.

 

 

HB2399- 16 -LRB103 28782 RPS 55167 b

1        (5.4) To make arrests and issue notices of civil
2    violations where necessary for the enforcement of this
3    Act.
4        (5.5) To investigate any and all unlicensed or
5    unregistered activity.
6        (5.6) To impose civil penalties or fines to any person
7    who, without holding a valid license or registration,
8    engages in conduct that requires a license or registration
9    pursuant to this Act, in an amount not to exceed $20,000
10    for each offense as determined by the State Commission. A
11    civil penalty shall be assessed by the State Commission
12    after a hearing is held in accordance with the provisions
13    set forth in this Act regarding the provision of a hearing
14    for the revocation or suspension of a license or
15    registration.
16        (6) To hear and determine appeals from orders of a
17    local commission in accordance with the provisions of this
18    Act, as hereinafter set forth. Hearings under this
19    subsection shall be held in Springfield or Chicago, at
20    whichever location is the more convenient for the majority
21    of persons who are parties to the hearing.
22        (7) The State Commission shall establish uniform
23    systems of accounts to be kept by all retail licensees
24    having more than 4 employees, and for this purpose the
25    State Commission may classify all retail licensees having
26    more than 4 employees and establish a uniform system of

 

 

HB2399- 17 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 18 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 19 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 20 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 21 -LRB103 28782 RPS 55167 b

1    notifying any appropriate law enforcement agency, submit
2    notices of complaints or violations of Sections 6-29 and
3    6-29.1 by persons who do not hold a winery shipper's
4    license under this Act to the Illinois Attorney General
5    and to the U.S. Department of Treasury's Alcohol and
6    Tobacco Tax and Trade Bureau.
7        (17)(A) A person licensed to make wine under the laws
8    of another state who has a winery shipper's license under
9    this Act and annually produces less than 25,000 gallons of
10    wine or a person who has a first-class or second-class
11    wine manufacturer's license, a first-class or second-class
12    wine-maker's license, or a limited wine manufacturer's
13    license under this Act and annually produces less than
14    25,000 gallons of wine may make application to the
15    Commission for a self-distribution exemption to allow the
16    sale of not more than 5,000 gallons of the exemption
17    holder's wine to retail licensees per year and to sell
18    cider, mead, or both cider and mead to brewers, class 1
19    brewers, class 2 brewers, and class 3 brewers that,
20    pursuant to subsection (e) of Section 6-4 of this Act,
21    sell beer, cider, mead, or any combination thereof to
22    non-licensees at their breweries.
23        (B) In the application, which shall be sworn under
24    penalty of perjury, such person shall state (1) the date
25    it was established; (2) its volume of production and sales
26    for each year since its establishment; (3) its efforts to

 

 

HB2399- 22 -LRB103 28782 RPS 55167 b

1    establish distributor relationships; (4) that a
2    self-distribution exemption is necessary to facilitate the
3    marketing of its wine; and (5) that it will comply with the
4    liquor and revenue laws of the United States, this State,
5    and any other state where it is licensed.
6        (C) The State Commission shall approve the application
7    for a self-distribution exemption if such person: (1) is
8    in compliance with State revenue and liquor laws; (2) is
9    not a member of any affiliated group that produces
10    directly or indirectly more than 25,000 gallons of wine
11    per annum, 930,000 gallons of beer per annum, or 50,000
12    gallons of spirits per annum; (3) will not annually
13    produce for sale more than 25,000 gallons of wine, 930,000
14    gallons of beer, or 50,000 gallons of spirits; and (4)
15    will not annually sell more than 5,000 gallons of its wine
16    to retail licensees.
17        (D) A self-distribution exemption holder shall
18    annually certify to the State Commission its production of
19    wine in the previous 12 months and its anticipated
20    production and sales for the next 12 months. The State
21    Commission may fine, suspend, or revoke a
22    self-distribution exemption after a hearing if it finds
23    that the exemption holder has made a material
24    misrepresentation in its application, violated a revenue
25    or liquor law of Illinois, exceeded production of 25,000
26    gallons of wine, 930,000 gallons of beer, or 50,000

 

 

HB2399- 23 -LRB103 28782 RPS 55167 b

1    gallons of spirits in any calendar year, or become part of
2    an affiliated group producing more than 25,000 gallons of
3    wine, 930,000 gallons of beer, or 50,000 gallons of
4    spirits.
5        (E) Except in hearings for violations of this Act or
6    Public Act 95-634 or a bona fide investigation by duly
7    sworn law enforcement officials, the State Commission, or
8    its agents, the State Commission shall maintain the
9    production and sales information of a self-distribution
10    exemption holder as confidential and shall not release
11    such information to any person.
12        (F) The State Commission shall issue regulations
13    governing self-distribution exemptions consistent with
14    this Section and this Act.
15        (G) Nothing in this paragraph (17) shall prohibit a
16    self-distribution exemption holder from entering into or
17    simultaneously having a distribution agreement with a
18    licensed Illinois distributor.
19        (H) It is the intent of this paragraph (17) to promote
20    and continue orderly markets. The General Assembly finds
21    that, in order to preserve Illinois' regulatory
22    distribution system, it is necessary to create an
23    exception for smaller makers of wine as their wines are
24    frequently adjusted in varietals, mixes, vintages, and
25    taste to find and create market niches sometimes too small
26    for distributor or importing distributor business

 

 

HB2399- 24 -LRB103 28782 RPS 55167 b

1    strategies. Limited self-distribution rights will afford
2    and allow smaller makers of wine access to the marketplace
3    in order to develop a customer base without impairing the
4    integrity of the 3-tier system.
5        (18)(A) A class 1 brewer licensee, who must also be
6    either a licensed brewer or licensed non-resident dealer
7    and annually manufacture less than 930,000 gallons of
8    beer, may make application to the State Commission for a
9    self-distribution exemption to allow the sale of not more
10    than 232,500 gallons per year of the exemption holder's
11    beer to retail licensees and to brewers, class 1 brewers,
12    and class 2 brewers that, pursuant to subsection (e) of
13    Section 6-4 of this Act, sell beer, cider, mead, or any
14    combination thereof to non-licensees at their breweries.
15        (B) In the application, which shall be sworn under
16    penalty of perjury, the class 1 brewer licensee shall
17    state (1) the date it was established; (2) its volume of
18    beer manufactured and sold for each year since its
19    establishment; (3) its efforts to establish distributor
20    relationships; (4) that a self-distribution exemption is
21    necessary to facilitate the marketing of its beer; and (5)
22    that it will comply with the alcoholic beverage and
23    revenue laws of the United States, this State, and any
24    other state where it is licensed.
25        (C) Any application submitted shall be posted on the
26    State Commission's website at least 45 days prior to

 

 

HB2399- 25 -LRB103 28782 RPS 55167 b

1    action by the State Commission. The State Commission shall
2    approve the application for a self-distribution exemption
3    if the class 1 brewer licensee: (1) is in compliance with
4    the State, revenue, and alcoholic beverage laws; (2) is
5    not a member of any affiliated group that manufactures,
6    directly or indirectly, more than 930,000 gallons of beer
7    per annum, 25,000 gallons of wine per annum, or 50,000
8    gallons of spirits per annum; (3) shall not annually
9    manufacture for sale more than 930,000 gallons of beer,
10    25,000 gallons of wine, or 50,000 gallons of spirits; (4)
11    shall not annually sell more than 232,500 gallons of its
12    beer to retail licensees and class 3 brewers and to
13    brewers, class 1 brewers, and class 2 brewers that,
14    pursuant to subsection (e) of Section 6-4 of this Act,
15    sell beer, cider, mead, or any combination thereof to
16    non-licensees at their breweries; and (5) has relinquished
17    any brew pub license held by the licensee, including any
18    ownership interest it held in the licensed brew pub.
19        (D) A self-distribution exemption holder shall
20    annually certify to the State Commission its manufacture
21    of beer during the previous 12 months and its anticipated
22    manufacture and sales of beer for the next 12 months. The
23    State Commission may fine, suspend, or revoke a
24    self-distribution exemption after a hearing if it finds
25    that the exemption holder has made a material
26    misrepresentation in its application, violated a revenue

 

 

HB2399- 26 -LRB103 28782 RPS 55167 b

1    or alcoholic beverage law of Illinois, exceeded the
2    manufacture of 930,000 gallons of beer, 25,000 gallons of
3    wine, or 50,000 gallons of spirits in any calendar year or
4    became part of an affiliated group manufacturing more than
5    930,000 gallons of beer, 25,000 gallons of wine, or 50,000
6    gallons of spirits.
7        (E) The State Commission shall issue rules and
8    regulations governing self-distribution exemptions
9    consistent with this Act.
10        (F) Nothing in this paragraph (18) shall prohibit a
11    self-distribution exemption holder from entering into or
12    simultaneously having a distribution agreement with a
13    licensed Illinois importing distributor or a distributor.
14    If a self-distribution exemption holder enters into a
15    distribution agreement and has assigned distribution
16    rights to an importing distributor or distributor, then
17    the self-distribution exemption holder's distribution
18    rights in the assigned territories shall cease in a
19    reasonable time not to exceed 60 days.
20        (G) It is the intent of this paragraph (18) to promote
21    and continue orderly markets. The General Assembly finds
22    that in order to preserve Illinois' regulatory
23    distribution system, it is necessary to create an
24    exception for smaller manufacturers in order to afford and
25    allow such smaller manufacturers of beer access to the
26    marketplace in order to develop a customer base without

 

 

HB2399- 27 -LRB103 28782 RPS 55167 b

1    impairing the integrity of the 3-tier system.
2        (19)(A) A class 1 craft distiller licensee or a
3    non-resident dealer who manufactures less than 50,000
4    gallons of distilled spirits per year may make application
5    to the State Commission for a self-distribution exemption
6    to allow the sale of not more than 5,000 gallons of the
7    exemption holder's spirits to retail licensees per year.
8        (B) In the application, which shall be sworn under
9    penalty of perjury, the class 1 craft distiller licensee
10    or non-resident dealer shall state (1) the date it was
11    established; (2) its volume of spirits manufactured and
12    sold for each year since its establishment; (3) its
13    efforts to establish distributor relationships; (4) that a
14    self-distribution exemption is necessary to facilitate the
15    marketing of its spirits; and (5) that it will comply with
16    the alcoholic beverage and revenue laws of the United
17    States, this State, and any other state where it is
18    licensed.
19        (C) Any application submitted shall be posted on the
20    State Commission's website at least 45 days prior to
21    action by the State Commission. The State Commission shall
22    approve the application for a self-distribution exemption
23    if the applicant: (1) is in compliance with State revenue
24    and alcoholic beverage laws; (2) is not a member of any
25    affiliated group that produces more than 50,000 gallons of
26    spirits per annum, 930,000 gallons of beer per annum, or

 

 

HB2399- 28 -LRB103 28782 RPS 55167 b

1    25,000 gallons of wine per annum; (3) does not annually
2    manufacture for sale more than 50,000 gallons of spirits,
3    930,000 gallons of beer, or 25,000 gallons of wine; and
4    (4) does not annually sell more than 5,000 gallons of its
5    spirits to retail licensees.
6        (D) A self-distribution exemption holder shall
7    annually certify to the State Commission its manufacture
8    of spirits during the previous 12 months and its
9    anticipated manufacture and sales of spirits for the next
10    12 months. The State Commission may fine, suspend, or
11    revoke a self-distribution exemption after a hearing if it
12    finds that the exemption holder has made a material
13    misrepresentation in its application, violated a revenue
14    or alcoholic beverage law of Illinois, exceeded the
15    manufacture of 50,000 gallons of spirits, 930,000 gallons
16    of beer, or 25,000 gallons of wine in any calendar year, or
17    has become part of an affiliated group manufacturing more
18    than 50,000 gallons of spirits, 930,000 gallons of beer,
19    or 25,000 gallons of wine.
20        (E) The State Commission shall adopt rules governing
21    self-distribution exemptions consistent with this Act.
22        (F) Nothing in this paragraph (19) shall prohibit a
23    self-distribution exemption holder from entering into or
24    simultaneously having a distribution agreement with a
25    licensed Illinois importing distributor or a distributor.
26        (G) It is the intent of this paragraph (19) to promote

 

 

HB2399- 29 -LRB103 28782 RPS 55167 b

1    and continue orderly markets. The General Assembly finds
2    that in order to preserve Illinois' regulatory
3    distribution system, it is necessary to create an
4    exception for smaller manufacturers in order to afford and
5    allow such smaller manufacturers of spirits access to the
6    marketplace in order to develop a customer base without
7    impairing the integrity of the 3-tier system.
8        (20)(A) A class 3 brewer licensee who must manufacture
9    less than 465,000 gallons of beer in the aggregate and not
10    more than 155,000 gallons at any single brewery premises
11    may make application to the State Commission for a
12    self-distribution exemption to allow the sale of not more
13    than 6,200 gallons of beer from each in-state or
14    out-of-state class 3 brewery premises, which shall not
15    exceed 18,600 gallons annually in the aggregate, that is
16    manufactured at a wholly owned class 3 brewer's in-state
17    or out-of-state licensed premises to retail licensees and
18    class 3 brewers and to brewers, class 1 brewers, class 2
19    brewers that, pursuant to subsection (e) of Section 6-4,
20    sell beer, cider, or both beer and cider to non-licensees
21    at their licensed breweries.
22        (B) In the application, which shall be sworn under
23    penalty of perjury, the class 3 brewer licensee shall
24    state:
25            (1) the date it was established;
26            (2) its volume of beer manufactured and sold for

 

 

HB2399- 30 -LRB103 28782 RPS 55167 b

1        each year since its establishment;
2            (3) its efforts to establish distributor
3        relationships;
4            (4) that a self-distribution exemption is
5        necessary to facilitate the marketing of its beer; and
6            (5) that it will comply with the alcoholic
7        beverage and revenue laws of the United States, this
8        State, and any other state where it is licensed.
9        (C) Any application submitted shall be posted on the
10    State Commission's website at least 45 days before action
11    by the State Commission. The State Commission shall
12    approve the application for a self-distribution exemption
13    if the class 3 brewer licensee: (1) is in compliance with
14    the State, revenue, and alcoholic beverage laws; (2) is
15    not a member of any affiliated group that manufacturers,
16    directly or indirectly, more than 465,000 gallons of beer
17    per annum; (3) shall not annually manufacture for sale
18    more than 465,000 gallons of beer or more than 155,000
19    gallons at any single brewery premises; and (4) shall not
20    annually sell more than 6,200 gallons of beer from each
21    in-state or out-of-state class 3 brewery premises, and
22    shall not exceed 18,600 gallons annually in the aggregate,
23    to retail licensees and class 3 brewers and to brewers,
24    class 1 brewers, and class 2 brewers that, pursuant to
25    subsection (e) of Section 6-4 of this Act, sell beer,
26    cider, or both beer and cider to non-licensees at their

 

 

HB2399- 31 -LRB103 28782 RPS 55167 b

1    breweries.
2        (D) A self-distribution exemption holder shall
3    annually certify to the State Commission its manufacture
4    of beer during the previous 12 months and its anticipated
5    manufacture and sales of beer for the next 12 months. The
6    State Commission may fine, suspend, or revoke a
7    self-distribution exemption after a hearing if it finds
8    that the exemption holder has made a material
9    misrepresentation in its application, violated a revenue
10    or alcoholic beverage law of Illinois, exceeded the
11    manufacture of 465,000 gallons of beer in any calendar
12    year or became part of an affiliated group manufacturing
13    more than 465,000 gallons of beer, or exceeded the sale to
14    retail licensees, brewers, class 1 brewers, class 2
15    brewers, and class 3 brewers of 6,200 gallons per brewery
16    location or 18,600 gallons in the aggregate.
17        (E) The State Commission may adopt rules governing
18    self-distribution exemptions consistent with this Act.
19        (F) Nothing in this paragraph shall prohibit a
20    self-distribution exemption holder from entering into or
21    simultaneously having a distribution agreement with a
22    licensed Illinois importing distributor or a distributor.
23    If a self-distribution exemption holder enters into a
24    distribution agreement and has assigned distribution
25    rights to an importing distributor or distributor, then
26    the self-distribution exemption holder's distribution

 

 

HB2399- 32 -LRB103 28782 RPS 55167 b

1    rights in the assigned territories shall cease in a
2    reasonable time not to exceed 60 days.
3        (G) It is the intent of this paragraph to promote and
4    continue orderly markets. The General Assembly finds that
5    in order to preserve Illinois' regulatory distribution
6    system, it is necessary to create an exception for smaller
7    manufacturers in order to afford and allow such smaller
8    manufacturers of beer access to the marketplace in order
9    to develop a customer base without impairing the integrity
10    of the 3-tier system.
11    (b) On or before April 30, 1999, the Commission shall
12present a written report to the Governor and the General
13Assembly that shall be based on a study of the impact of Public
14Act 90-739 on the business of soliciting, selling, and
15shipping alcoholic liquor from outside of this State directly
16to residents of this State.
17    As part of its report, the Commission shall provide the
18following information:
19        (i) the amount of State excise and sales tax revenues
20    generated as a result of Public Act 90-739;
21        (ii) the amount of licensing fees received as a result
22    of Public Act 90-739;
23        (iii) the number of reported violations, the number of
24    cease and desist notices issued by the Commission, the
25    number of notices of violations issued to the Department
26    of Revenue, and the number of notices and complaints of

 

 

HB2399- 33 -LRB103 28782 RPS 55167 b

1    violations to law enforcement officials.
2(Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19;
3101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff.
48-20-21; 102-813, eff. 5-13-22.)
 
5    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
6    Sec. 5-1. Licenses issued by the Illinois Liquor Control
7Commission shall be of the following classes:
8    (a) Manufacturer's license - Class 1. Distiller, Class 2.
9Rectifier, Class 3. Brewer, Class 4. First Class Wine
10Manufacturer, Class 5. Second Class Wine Manufacturer, Class
116. First Class Winemaker, Class 7. Second Class Winemaker,
12Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
13Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
14Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
15Class 14. Class 3 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,
24    (j) Airplane license,
25    (k) Foreign importer's license,

 

 

HB2399- 34 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 35 -LRB103 28782 RPS 55167 b

1rectifiers, importing distributors, distributors, retailers
2and non-beverage users and to no other licensees.
3    Class 3. A Brewer may make sales and deliveries of beer to
4importing distributors and distributors and may make sales as
5authorized under subsection (e) of Section 6-4 of this Act,
6including any alcoholic liquor that subsection (e) of Section
76-4 authorizes a brewer to sell in its original package only to
8a non-licensee for pick-up by a non-licensee either within the
9interior of the brewery premises or at outside of the brewery
10premises at a curb-side or parking lot adjacent to the brewery
11premises, subject to any local ordinance.
12    Class 4. A first class wine-manufacturer may make sales
13and deliveries of up to 50,000 gallons of wine to
14manufacturers, importing distributors and distributors, and to
15no other licensees. If a first-class wine-manufacturer
16manufactures beer, it shall also obtain and shall only be
17eligible for, in addition to any current license, a class 1
18brewer license, shall not manufacture more than 930,000
19gallons of beer per year, and shall not be a member of or
20affiliated with, directly or indirectly, a manufacturer that
21produces more than 930,000 gallons of beer per year. If the
22first-class wine-manufacturer manufactures spirits, it shall
23also obtain and shall only be eligible for, in addition to any
24current license, a class 1 craft distiller license, shall not
25manufacture more than 50,000 gallons of spirits per year, and
26shall not be a member of or affiliated with, directly or

 

 

HB2399- 36 -LRB103 28782 RPS 55167 b

1indirectly, a manufacturer that produces more than 50,000
2gallons of spirits per year. A first-class wine-manufacturer
3shall be permitted to sell wine manufactured at the
4first-class wine-manufacturer premises to non-licensees.
5    Class 5. A second class Wine manufacturer may make sales
6and deliveries of more than 50,000 gallons of wine to
7manufacturers, importing distributors and distributors and to
8no other licensees.
9    Class 6. A first-class wine-maker's license shall allow
10the manufacture of up to 50,000 gallons of wine per year, and
11the storage and sale of such wine to distributors in the State
12and to persons without the State, as may be permitted by law. A
13person who, prior to June 1, 2008 (the effective date of Public
14Act 95-634), is a holder of a first-class wine-maker's license
15and annually produces more than 25,000 gallons of its own wine
16and who distributes its wine to licensed retailers shall cease
17this practice on or before July 1, 2008 in compliance with
18Public Act 95-634. If a first-class wine-maker manufactures
19beer, it shall also obtain and shall only be eligible for, in
20addition to any current license, a class 1 brewer license,
21shall not manufacture more than 930,000 gallons of beer per
22year, and shall not be a member of or affiliated with, directly
23or indirectly, a manufacturer that produces more than 930,000
24gallons of beer per year. If the first-class wine-maker
25manufactures spirits, it shall also obtain and shall only be
26eligible for, in addition to any current license, a class 1

 

 

HB2399- 37 -LRB103 28782 RPS 55167 b

1craft distiller license, shall not manufacture more than
250,000 gallons of spirits per year, and shall not be a member
3of or affiliated with, directly or indirectly, a manufacturer
4that produces more than 50,000 gallons of spirits per year. A
5first-class wine-maker holding a class 1 brewer license or a
6class 1 craft distiller license shall not be eligible for a
7wine-maker's premises license but shall be permitted to sell
8wine manufactured at the first-class wine-maker premises to
9non-licensees.
10    Class 7. A second-class wine-maker's license shall allow
11the manufacture of up to 150,000 gallons of wine per year, and
12the storage and sale of such wine to distributors in this State
13and to persons without the State, as may be permitted by law. A
14person who, prior to June 1, 2008 (the effective date of Public
15Act 95-634), is a holder of a second-class wine-maker's
16license and annually produces more than 25,000 gallons of its
17own wine and who distributes its wine to licensed retailers
18shall cease this practice on or before July 1, 2008 in
19compliance with Public Act 95-634. If a second-class
20wine-maker manufactures beer, it shall also obtain and shall
21only be eligible for, in addition to any current license, a
22class 2 brewer license, shall not manufacture more than
233,720,000 gallons of beer per year, and shall not be a member
24of or affiliated with, directly or indirectly, a manufacturer
25that produces more than 3,720,000 gallons of beer per year. If
26a second-class wine-maker manufactures spirits, it shall also

 

 

HB2399- 38 -LRB103 28782 RPS 55167 b

1obtain and shall only be eligible for, in addition to any
2current license, a class 2 craft distiller license, shall not
3manufacture more than 100,000 gallons of spirits per year, and
4shall not be a member of or affiliated with, directly or
5indirectly, a manufacturer that produces more than 100,000
6gallons of spirits per year.
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, which may only be held
12by a class 1 craft distiller licensee or class 2 craft
13distiller licensee but not held by both a class 1 craft
14distiller licensee and a class 2 craft distiller licensee,
15shall grant all rights conveyed by either: (i) a class 1 craft
16distiller license if the craft distiller holds a class 1 craft
17distiller license; or (ii) a class 2 craft distiller licensee
18if the craft distiller holds a class 2 craft distiller
19license.
20    Class 10. A class 1 craft distiller license, which may
21only be issued to a licensed craft distiller or licensed
22non-resident dealer, shall allow the manufacture of up to
2350,000 gallons of spirits per year provided that the class 1
24craft distiller licensee does not manufacture more than a
25combined 50,000 gallons of spirits per year and is not a member
26of or affiliated with, directly or indirectly, a manufacturer

 

 

HB2399- 39 -LRB103 28782 RPS 55167 b

1that produces more than 50,000 gallons of spirits per year. If
2a class 1 craft distiller manufactures beer, it shall also
3obtain and shall only be eligible for, in addition to any
4current license, a class 1 brewer license, shall not
5manufacture more than 930,000 gallons of beer per year, and
6shall not be a member of or affiliated with, directly or
7indirectly, a manufacturer that produces more than 930,000
8gallons of beer per year. If a class 1 craft distiller
9manufactures wine, it shall also obtain and shall only be
10eligible for, in addition to any current license, a
11first-class wine-manufacturer license or a first-class
12wine-maker's license, shall not manufacture more than 50,000
13gallons of wine per year, and shall not be a member of or
14affiliated with, directly or indirectly, a manufacturer that
15produces more than 50,000 gallons of wine per year. A class 1
16craft distiller licensee may make sales and deliveries to
17importing distributors and distributors and to retail
18licensees in accordance with the conditions set forth in
19paragraph (19) of subsection (a) of Section 3-12 of this Act.
20However, the aggregate amount of spirits sold to non-licensees
21and sold or delivered to retail licensees may not exceed 5,000
22gallons per year.
23    A class 1 craft distiller licensee may sell up to 5,000
24gallons of such spirits to non-licensees to the extent
25permitted by any exemption approved by the State Commission
26pursuant to Section 6-4 of this Act. A class 1 craft distiller

 

 

HB2399- 40 -LRB103 28782 RPS 55167 b

1license holder may store such spirits at a non-contiguous
2licensed location, but at no time shall a class 1 craft
3distiller license holder directly or indirectly produce in the
4aggregate more than 50,000 gallons of spirits per year.
5    A class 1 craft distiller licensee may hold more than one
6class 1 craft distiller's license. However, a class 1 craft
7distiller that holds more than one class 1 craft distiller
8license shall not manufacture, in the aggregate, more than
950,000 gallons of spirits by distillation per year and shall
10not sell, in the aggregate, more than 5,000 gallons of such
11spirits to non-licensees in accordance with an exemption
12approved by the State Commission pursuant to Section 6-4 of
13this Act.
14    Class 11. A class 2 craft distiller license, which may
15only be issued to a licensed craft distiller or licensed
16non-resident dealer, shall allow the manufacture of up to
17100,000 gallons of spirits per year provided that the class 2
18craft distiller licensee does not manufacture more than a
19combined 100,000 gallons of spirits per year and is not a
20member of or affiliated with, directly or indirectly, a
21manufacturer that produces more than 100,000 gallons of
22spirits per year. If a class 2 craft distiller manufactures
23beer, it shall also obtain and shall only be eligible for, in
24addition to any current license, a class 2 brewer license,
25shall not manufacture more than 3,720,000 gallons of beer per
26year, and shall not be a member of or affiliated with, directly

 

 

HB2399- 41 -LRB103 28782 RPS 55167 b

1or indirectly, a manufacturer that produces more than
23,720,000 gallons of beer per year. If a class 2 craft
3distiller manufactures wine, it shall also obtain and shall
4only be eligible for, in addition to any current license, a
5second-class wine-maker's license, shall not manufacture more
6than 150,000 gallons of wine per year, and shall not be a
7member of or affiliated with, directly or indirectly, a
8manufacturer that produces more than 150,000 gallons of wine
9per year. A class 2 craft distiller licensee may make sales and
10deliveries to importing distributors and distributors, but
11shall not make sales or deliveries to any other licensee. If
12the State Commission provides prior approval, a class 2 craft
13distiller licensee may annually transfer up to 100,000 gallons
14of spirits manufactured by that class 2 craft distiller
15licensee to the premises of a licensed class 2 craft distiller
16wholly owned and operated by the same licensee. A class 2 craft
17distiller may transfer spirits to a distilling pub wholly
18owned and operated by the class 2 craft distiller subject to
19the following limitations and restrictions: (i) the transfer
20shall not annually exceed more than 5,000 gallons; (ii) the
21annual amount transferred shall reduce the distilling pub's
22annual permitted production limit; (iii) all spirits
23transferred shall be subject to Article VIII of this Act; (iv)
24a written record shall be maintained by the distiller and
25distilling pub specifying the amount, date of delivery, and
26receipt of the product by the distilling pub; and (v) the

 

 

HB2399- 42 -LRB103 28782 RPS 55167 b

1distilling pub shall be located no farther than 80 miles from
2the class 2 craft distiller's licensed location.
3    A class 2 craft distiller shall, prior to transferring
4spirits to a distilling pub wholly owned by the class 2 craft
5distiller, furnish a written notice to the State Commission of
6intent to transfer spirits setting forth the name and address
7of the distilling pub and shall annually submit to the State
8Commission a verified report identifying the total gallons of
9spirits transferred to the distilling pub wholly owned by the
10class 2 craft distiller.
11    A class 2 craft distiller license holder may store such
12spirits at a non-contiguous licensed location, but at no time
13shall a class 2 craft distiller license holder directly or
14indirectly produce in the aggregate more than 100,000 gallons
15of spirits per year.
16    Class 12. A class 1 brewer license, which may only be
17issued to a licensed brewer or licensed non-resident dealer,
18shall allow the manufacture of up to 930,000 gallons of beer
19per year provided that the class 1 brewer licensee does not
20manufacture more than a combined 930,000 gallons of beer per
21year and is not a member of or affiliated with, directly or
22indirectly, a manufacturer that produces more than 930,000
23gallons of beer per year. If a class 1 brewer manufactures
24spirits, it shall also obtain and shall only be eligible for,
25in addition to any current license, a class 1 craft distiller
26license, shall not manufacture more than 50,000 gallons of

 

 

HB2399- 43 -LRB103 28782 RPS 55167 b

1spirits per year, and shall not be a member of or affiliated
2with, directly or indirectly, a manufacturer that produces
3more than 50,000 gallons of spirits per year. If a class 1
4craft brewer manufactures wine, it shall also obtain and shall
5only be eligible for, in addition to any current license, a
6first-class wine-manufacturer license or a first-class
7wine-maker's license, shall not manufacture more than 50,000
8gallons of wine per year, and shall not be a member of or
9affiliated with, directly or indirectly, a manufacturer that
10produces more than 50,000 gallons of wine per year. A class 1
11brewer licensee may make sales and deliveries to importing
12distributors and distributors and to retail licensees in
13accordance with the conditions set forth in paragraph (18) of
14subsection (a) of Section 3-12 of this Act. If the State
15Commission provides prior approval, a class 1 brewer may
16annually transfer up to 930,000 gallons of beer manufactured
17by that class 1 brewer to the premises of a licensed class 1
18brewer wholly owned and operated by the same licensee.
19    Class 13. A class 2 brewer license, which may only be
20issued to a licensed brewer or licensed non-resident dealer,
21shall allow the manufacture of up to 3,720,000 gallons of beer
22per year provided that the class 2 brewer licensee does not
23manufacture more than a combined 3,720,000 gallons of beer per
24year and is not a member of or affiliated with, directly or
25indirectly, a manufacturer that produces more than 3,720,000
26gallons of beer per year. If a class 2 brewer manufactures

 

 

HB2399- 44 -LRB103 28782 RPS 55167 b

1spirits, it shall also obtain and shall only be eligible for,
2in addition to any current license, a class 2 craft distiller
3license, shall not manufacture more than 100,000 gallons of
4spirits per year, and shall not be a member of or affiliated
5with, directly or indirectly, a manufacturer that produces
6more than 100,000 gallons of spirits per year. If a class 2
7craft distiller manufactures wine, it shall also obtain and
8shall only be eligible for, in addition to any current
9license, a second-class wine-maker's license, shall not
10manufacture more than 150,000 gallons of wine per year, and
11shall not be a member of or affiliated with, directly or
12indirectly, a manufacturer that produces more than 150,000
13gallons of wine a year. A class 2 brewer licensee may make
14sales and deliveries to importing distributors and
15distributors, but shall not make sales or deliveries to any
16other licensee. If the State Commission provides prior
17approval, a class 2 brewer licensee may annually transfer up
18to 3,720,000 gallons of beer manufactured by that class 2
19brewer licensee to the premises of a licensed class 2 brewer
20wholly owned and operated by the same licensee.
21    A class 2 brewer may transfer beer to a brew pub wholly
22owned and operated by the class 2 brewer subject to the
23following limitations and restrictions: (i) the transfer shall
24not annually exceed more than 31,000 gallons; (ii) the annual
25amount transferred shall reduce the brew pub's annual
26permitted production limit; (iii) all beer transferred shall

 

 

HB2399- 45 -LRB103 28782 RPS 55167 b

1be subject to Article VIII of this Act; (iv) a written record
2shall be maintained by the brewer and brew pub specifying the
3amount, date of delivery, and receipt of the product by the
4brew pub; and (v) the brew pub shall be located no farther than
580 miles from the class 2 brewer's licensed location.
6    A class 2 brewer shall, prior to transferring beer to a
7brew pub wholly owned by the class 2 brewer, furnish a written
8notice to the State Commission of intent to transfer beer
9setting forth the name and address of the brew pub and shall
10annually submit to the State Commission a verified report
11identifying the total gallons of beer transferred to the brew
12pub wholly owned by the class 2 brewer.
13    Class 14. A class 3 brewer license, which may be issued to
14a brewer or a non-resident dealer, shall allow the manufacture
15of no more than 465,000 gallons of beer per year and no more
16than 155,000 gallons at a single brewery premises, and shall
17allow the sale of no more than 6,200 gallons of beer from each
18in-state or out-of-state class 3 brewery premises, or 18,600
19gallons in the aggregate, to retail licensees, class 1
20brewers, class 2 brewers, and class 3 brewers as long as the
21class 3 brewer licensee does not manufacture more than a
22combined 465,000 gallons of beer per year and is not a member
23of or affiliated with, directly or indirectly, a manufacturer
24that produces more than 465,000 gallons of beer per year to
25make sales to importing distributors, distributors, retail
26licensees, brewers, class 1 brewers, class 2 brewers, and

 

 

HB2399- 46 -LRB103 28782 RPS 55167 b

1class 3 brewers in accordance with the conditions set forth in
2paragraph (20) of subsection (a) of Section 3-12. If the State
3Commission provides prior approval, a class 3 brewer may
4annually transfer up to 155,000 gallons of beer manufactured
5by that class 3 brewer to the premises of a licensed class 3
6brewer wholly owned and operated by the same licensee. A class
73 brewer shall manufacture beer at the brewer's class 3
8designated licensed premises, and may sell beer as otherwise
9provided in this Act.
10    (a-1) A manufacturer which is licensed in this State to
11make sales or deliveries of alcoholic liquor to licensed
12distributors or importing distributors and which enlists
13agents, representatives, or individuals acting on its behalf
14who contact licensed retailers on a regular and continual
15basis in this State must register those agents,
16representatives, or persons acting on its behalf with the
17State Commission.
18    Registration of agents, representatives, or persons acting
19on behalf of a manufacturer is fulfilled by submitting a form
20to the Commission. The form shall be developed by the
21Commission and shall include the name and address of the
22applicant, the name and address of the manufacturer he or she
23represents, the territory or areas assigned to sell to or
24discuss pricing terms of alcoholic liquor, and any other
25questions deemed appropriate and necessary. All statements in
26the forms required to be made by law or by rule shall be deemed

 

 

HB2399- 47 -LRB103 28782 RPS 55167 b

1material, and any person who knowingly misstates any material
2fact under oath in an application is guilty of a Class B
3misdemeanor. Fraud, misrepresentation, false statements,
4misleading statements, evasions, or suppression of material
5facts in the securing of a registration are grounds for
6suspension or revocation of the registration. The State
7Commission shall post a list of registered agents on the
8Commission's website.
9    (b) A distributor's license shall allow (i) the wholesale
10purchase and storage of alcoholic liquors and sale of
11alcoholic liquors to licensees in this State and to persons
12without the State, as may be permitted by law; (ii) the sale of
13beer, cider, mead, or any combination thereof to brewers,
14class 1 brewers, and class 2 brewers that, pursuant to
15subsection (e) of Section 6-4 of this Act, sell beer, cider,
16mead, or any combination thereof to non-licensees at their
17breweries; (iii) the sale of vermouth to class 1 craft
18distillers and class 2 craft distillers that, pursuant to
19subsection (e) of Section 6-4 of this Act, sell spirits,
20vermouth, or both spirits and vermouth to non-licensees at
21their distilleries; or (iv) as otherwise provided in this Act.
22No person licensed as a distributor shall be granted a
23non-resident dealer's license.
24    (c) An importing distributor's license may be issued to
25and held by those only who are duly licensed distributors,
26upon the filing of an application by a duly licensed

 

 

HB2399- 48 -LRB103 28782 RPS 55167 b

1distributor, with the Commission and the Commission shall,
2without the payment of any fee, immediately issue such
3importing distributor's license to the applicant, which shall
4allow the importation of alcoholic liquor by the licensee into
5this State from any point in the United States outside this
6State, and the purchase of alcoholic liquor in barrels, casks
7or other bulk containers and the bottling of such alcoholic
8liquors before resale thereof, but all bottles or containers
9so filled shall be sealed, labeled, stamped and otherwise made
10to comply with all provisions, rules and regulations governing
11manufacturers in the preparation and bottling of alcoholic
12liquors. The importing distributor's license shall permit such
13licensee to purchase alcoholic liquor from Illinois licensed
14non-resident dealers and foreign importers only. No person
15licensed as an importing distributor shall be granted a
16non-resident dealer's license.
17    (d) A retailer's license shall allow the licensee to sell
18and offer for sale at retail, only in the premises specified in
19the license, alcoholic liquor for use or consumption, but not
20for resale in any form. Except as provided in Section 6-16,
216-29, or 6-29.1, nothing in this Act shall deny, limit,
22remove, or restrict the ability of a holder of a retailer's
23license to transfer or ship alcoholic liquor to the purchaser
24for use or consumption subject to any applicable local law or
25ordinance. For the purposes of this Section, "shipping" means
26the movement of alcoholic liquor from a licensed retailer to a

 

 

HB2399- 49 -LRB103 28782 RPS 55167 b

1consumer via a common carrier. Except as provided in Section
26-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,
3remove, or restrict the ability of a holder of a retailer's
4license to deliver alcoholic liquor to the purchaser for use
5or consumption. The delivery shall be made only within 12
6hours from the time the alcoholic liquor leaves the licensed
7premises of the retailer for delivery. For the purposes of
8this Section, "delivery" means the movement of alcoholic
9liquor purchased from a licensed retailer to a consumer
10through the following methods:
11        (1) delivery within licensed retailer's parking lot,
12    including curbside, for pickup by the consumer;
13        (2) delivery by an owner, officer, director,
14    shareholder, or employee of the licensed retailer; or
15        (3) delivery by a third-party contractor, independent
16    contractor, or agent with whom the licensed retailer has
17    contracted to make deliveries of alcoholic liquors.
18    Under subsection (1), (2), or (3), delivery shall not
19include the use of common carriers.
20    Any retail license issued to a manufacturer shall only
21permit the manufacturer to sell beer at retail on the premises
22actually occupied by the manufacturer. For the purpose of
23further describing the type of business conducted at a retail
24licensed premises, a retailer's licensee may be designated by
25the State Commission as (i) an on premise consumption
26retailer, (ii) an off premise sale retailer, or (iii) a

 

 

HB2399- 50 -LRB103 28782 RPS 55167 b

1combined on premise consumption and off premise sale retailer.
2    Except for a municipality with a population of more than
31,000,000 inhabitants, a home rule unit may not regulate the
4delivery of alcoholic liquor inconsistent with this
5subsection. This paragraph is a limitation under subsection
6(i) of Section 6 of Article VII of the Illinois Constitution on
7the concurrent exercise by home rule units of powers and
8functions exercised by the State.
9    Notwithstanding any other provision of this subsection
10(d), a retail licensee may sell alcoholic liquors to a special
11event retailer licensee for resale to the extent permitted
12under subsection (e).
13    (e) A special event retailer's license (not-for-profit)
14shall permit the licensee to purchase alcoholic liquors from
15an Illinois licensed distributor (unless the licensee
16purchases less than $500 of alcoholic liquors for the special
17event, in which case the licensee may purchase the alcoholic
18liquors from a licensed retailer) and shall allow the licensee
19to sell and offer for sale, at retail, alcoholic liquors for
20use or consumption, but not for resale in any form and only at
21the location and on the specific dates designated for the
22special event in the license. An applicant for a special event
23retailer license must (i) furnish with the application: (A) a
24resale number issued under Section 2c of the Retailers'
25Occupation Tax Act or evidence that the applicant is
26registered under Section 2a of the Retailers' Occupation Tax

 

 

HB2399- 51 -LRB103 28782 RPS 55167 b

1Act, (B) a current, valid exemption identification number
2issued under Section 1g of the Retailers' Occupation Tax Act,
3and a certification to the Commission that the purchase of
4alcoholic liquors will be a tax-exempt purchase, or (C) a
5statement that the applicant is not registered under Section
62a of the Retailers' Occupation Tax Act, does not hold a resale
7number under Section 2c of the Retailers' Occupation Tax Act,
8and does not hold an exemption number under Section 1g of the
9Retailers' Occupation Tax Act, in which event the Commission
10shall set forth on the special event retailer's license a
11statement to that effect; (ii) submit with the application
12proof satisfactory to the State Commission that the applicant
13will provide dram shop liability insurance in the maximum
14limits; and (iii) show proof satisfactory to the State
15Commission that the applicant has obtained local authority
16approval.
17    Nothing in this Act prohibits an Illinois licensed
18distributor from offering credit or a refund for unused,
19salable alcoholic liquors to a holder of a special event
20retailer's license or the special event retailer's licensee
21from accepting the credit or refund of alcoholic liquors at
22the conclusion of the event specified in the license.
23    (f) A railroad license shall permit the licensee to import
24alcoholic liquors into this State from any point in the United
25States outside this State and to store such alcoholic liquors
26in this State; to make wholesale purchases of alcoholic

 

 

HB2399- 52 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 53 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 54 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 55 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 56 -LRB103 28782 RPS 55167 b

1Sections 6-5 and 6-6 of this Act to the same extent that these
2provisions apply to manufacturers.
3    (l) (i) A broker's license shall be required of all
4persons who solicit orders for, offer to sell or offer to
5supply alcoholic liquor to retailers in the State of Illinois,
6or who offer to retailers to ship or cause to be shipped or to
7make contact with distillers, craft distillers, rectifiers,
8brewers or manufacturers or any other party within or without
9the State of Illinois in order that alcoholic liquors be
10shipped to a distributor, importing distributor or foreign
11importer, whether such solicitation or offer is consummated
12within or without the State of Illinois.
13    No holder of a retailer's license issued by the Illinois
14Liquor Control Commission shall purchase or receive any
15alcoholic liquor, the order for which was solicited or offered
16for sale to such retailer by a broker unless the broker is the
17holder of a valid broker's license.
18    The broker shall, upon the acceptance by a retailer of the
19broker's solicitation of an order or offer to sell or supply or
20deliver or have delivered alcoholic liquors, promptly forward
21to the Illinois Liquor Control Commission a notification of
22said transaction in such form as the Commission may by
23regulations prescribe.
24    (ii) A broker's license shall be required of a person
25within this State, other than a retail licensee, who, for a fee
26or commission, promotes, solicits, or accepts orders for

 

 

HB2399- 57 -LRB103 28782 RPS 55167 b

1alcoholic liquor, for use or consumption and not for resale,
2to be shipped from this State and delivered to residents
3outside of this State by an express company, common carrier,
4or contract carrier. This Section does not apply to any person
5who promotes, solicits, or accepts orders for wine as
6specifically authorized in Section 6-29 of this Act.
7    A broker's license under this subsection (l) shall not
8entitle the holder to buy or sell any alcoholic liquors for his
9own account or to take or deliver title to such alcoholic
10liquors.
11    This subsection (l) shall not apply to distributors,
12employees of distributors, or employees of a manufacturer who
13has registered the trademark, brand or name of the alcoholic
14liquor pursuant to Section 6-9 of this Act, and who regularly
15sells such alcoholic liquor in the State of Illinois only to
16its registrants thereunder.
17    Any agent, representative, or person subject to
18registration pursuant to subsection (a-1) of this Section
19shall not be eligible to receive a broker's license.
20    (m) A non-resident dealer's license shall permit such
21licensee to ship into and warehouse alcoholic liquor into this
22State from any point outside of this State, and to sell such
23alcoholic liquor to Illinois licensed foreign importers and
24importing distributors and to no one else in this State;
25provided that (i) said non-resident dealer shall register with
26the Illinois Liquor Control Commission each and every brand of

 

 

HB2399- 58 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 59 -LRB103 28782 RPS 55167 b

1or importing distributor, (vi) with the prior approval of the
2Commission, annually transfer no more than 155,000 gallons of
3beer manufactured on the premises to a licensed brew pub
4wholly owned and operated by the same licensee, and (vii)
5notwithstanding item (i) of this subsection, brew pubs wholly
6owned and operated by the same licensee may combine each
7location's production limit of 155,000 gallons of beer per
8year and allocate the aggregate total between the wholly
9owned, operated, and licensed locations.
10    A brew pub licensee shall not under any circumstance sell
11or offer for sale beer manufactured by the brew pub licensee to
12retail licensees.
13    A person who holds a class 2 brewer license may
14simultaneously hold a brew pub license if the class 2 brewer
15(i) does not, under any circumstance, sell or offer for sale
16beer manufactured by the class 2 brewer to retail licensees;
17(ii) does not hold more than 3 brew pub licenses in this State;
18(iii) does not manufacture more than a combined 3,720,000
19gallons of beer per year, including the beer manufactured at
20the brew pub; and (iv) is not a member of or affiliated with,
21directly or indirectly, a manufacturer that produces more than
223,720,000 gallons of beer per year or any other alcoholic
23liquor.
24    Notwithstanding any other provision of this Act, a
25licensed brewer, class 2 brewer, or non-resident dealer who
26before July 1, 2015 manufactured less than 3,720,000 gallons

 

 

HB2399- 60 -LRB103 28782 RPS 55167 b

1of beer per year and held a brew pub license on or before July
21, 2015 may (i) continue to qualify for and hold that brew pub
3license for the licensed premises and (ii) manufacture more
4than 3,720,000 gallons of beer per year and continue to
5qualify for and hold that brew pub license if that brewer,
6class 2 brewer, or non-resident dealer does not simultaneously
7hold a class 1 brewer license and is not a member of or
8affiliated with, directly or indirectly, a manufacturer that
9produces more than 3,720,000 gallons of beer per year or that
10produces any other alcoholic liquor.
11    A brew pub licensee may apply for a class 3 brewer license
12and, upon: (i) meeting all applicable qualifications of this
13Act, and relinquishing all commonly owned brew pub or retail
14licenses, shall be issued a class 3 brewer license. Nothing in
15this Act shall prohibit the issuance of a class 3 brewer
16license if the applicant:
17        (1) has a valid retail license on or before May 1,
18    2021;
19        (2) has an ownership interest in at least two brew
20    pubs licenses on or before May 1, 2021;
21        (3) the brew pub licensee applies for a class 3 brewer
22    license on or before October 1, 2022 and relinquishes all
23    commonly owned brew pub licenses; and
24        (4) relinquishes all commonly owned retail licenses on
25    or before December 31, 2022.
26    If a brew pub licensee is issued a class 3 brewer license,

 

 

HB2399- 61 -LRB103 28782 RPS 55167 b

1the class 3 brewer license shall expire on the same date as the
2existing brew pub license and the State Commission shall not
3require a class 3 brewer licensee to obtain a brewer license,
4or in the alternative to pay a fee for a brewer license, until
5the date the brew pub license of the applicant would have
6expired.
7    (o) A caterer retailer license shall allow the holder to
8serve alcoholic liquors as an incidental part of a food
9service that serves prepared meals which excludes the serving
10of snacks as the primary meal, either on or off-site whether
11licensed or unlicensed. A caterer retailer license shall allow
12the holder, a distributor, or an importing distributor to
13transfer any inventory to and from the holder's retail
14premises and shall allow the holder to purchase alcoholic
15liquor from a distributor or importing distributor to be
16delivered directly to an off-site event.
17    Nothing in this Act prohibits a distributor or importing
18distributor from offering credit or a refund for unused,
19salable beer to a holder of a caterer retailer license or a
20caterer retailer licensee from accepting a credit or refund
21for unused, salable beer, in the event an act of God is the
22sole reason an off-site event is cancelled and if: (i) the
23holder of a caterer retailer license has not transferred
24alcoholic liquor from its caterer retailer premises to an
25off-site location; (ii) the distributor or importing
26distributor offers the credit or refund for the unused,

 

 

HB2399- 62 -LRB103 28782 RPS 55167 b

1salable beer that it delivered to the off-site premises and
2not for any unused, salable beer that the distributor or
3importing distributor delivered to the caterer retailer's
4premises; and (iii) the unused, salable beer would likely
5spoil if transferred to the caterer retailer's premises. A
6caterer retailer license shall allow the holder to transfer
7any inventory from any off-site location to its caterer
8retailer premises at the conclusion of an off-site event or
9engage a distributor or importing distributor to transfer any
10inventory from any off-site location to its caterer retailer
11premises at the conclusion of an off-site event, provided that
12the distributor or importing distributor issues bona fide
13charges to the caterer retailer licensee for fuel, labor, and
14delivery and the distributor or importing distributor collects
15payment from the caterer retailer licensee prior to the
16distributor or importing distributor transferring inventory to
17the caterer retailer premises.
18    For purposes of this subsection (o), an "act of God" means
19an unforeseeable event, such as a rain or snow storm, hail, a
20flood, or a similar event, that is the sole cause of the
21cancellation of an off-site, outdoor event.
22    (p) An auction liquor license shall allow the licensee to
23sell and offer for sale at auction wine and spirits for use or
24consumption, or for resale by an Illinois liquor licensee in
25accordance with provisions of this Act. An auction liquor
26license will be issued to a person and it will permit the

 

 

HB2399- 63 -LRB103 28782 RPS 55167 b

1auction liquor licensee to hold the auction anywhere in the
2State. An auction liquor license must be obtained for each
3auction at least 14 days in advance of the auction date.
4    (q) A special use permit license shall allow an Illinois
5licensed retailer to transfer a portion of its alcoholic
6liquor inventory from its retail licensed premises to the
7premises specified in the license hereby created; to purchase
8alcoholic liquor from a distributor or importing distributor
9to be delivered directly to the location specified in the
10license hereby created; and to sell or offer for sale at
11retail, only in the premises specified in the license hereby
12created, the transferred or delivered alcoholic liquor for use
13or consumption, but not for resale in any form. A special use
14permit license may be granted for the following time periods:
15one day or less; 2 or more days to a maximum of 15 days per
16location in any 12-month period. An applicant for the special
17use permit license must also submit with the application proof
18satisfactory to the State Commission that the applicant will
19provide dram shop liability insurance to the maximum limits
20and have local authority approval.
21    A special use permit license shall allow the holder to
22transfer any inventory from the holder's special use premises
23to its retail premises at the conclusion of the special use
24event or engage a distributor or importing distributor to
25transfer any inventory from the holder's special use premises
26to its retail premises at the conclusion of an off-site event,

 

 

HB2399- 64 -LRB103 28782 RPS 55167 b

1provided that the distributor or importing distributor issues
2bona fide charges to the special use permit licensee for fuel,
3labor, and delivery and the distributor or importing
4distributor collects payment from the retail licensee prior to
5the distributor or importing distributor transferring
6inventory to the retail premises.
7    Nothing in this Act prohibits a distributor or importing
8distributor from offering credit or a refund for unused,
9salable beer to a special use permit licensee or a special use
10permit licensee from accepting a credit or refund for unused,
11salable beer at the conclusion of the event specified in the
12license if: (i) the holder of the special use permit license
13has not transferred alcoholic liquor from its retail licensed
14premises to the premises specified in the special use permit
15license; (ii) the distributor or importing distributor offers
16the credit or refund for the unused, salable beer that it
17delivered to the premises specified in the special use permit
18license and not for any unused, salable beer that the
19distributor or importing distributor delivered to the
20retailer's premises; and (iii) the unused, salable beer would
21likely spoil if transferred to the retailer premises.
22    (r) A winery shipper's license shall allow a person with a
23first-class or second-class wine manufacturer's license, a
24first-class or second-class wine-maker's license, or a limited
25wine manufacturer's license or who is licensed to make wine
26under the laws of another state to ship wine made by that

 

 

HB2399- 65 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 66 -LRB103 28782 RPS 55167 b

1disclosed by the winery shipper's licensee, and a copy of the
2written appointment of the third-party wine provider, except
3for a common carrier, to the wine manufacturer shall be filed
4with the State Commission as a supplement to the winery
5shipper's license application or any renewal thereof. The
6winery shipper's license holder shall affirm under penalty of
7perjury, as part of the winery shipper's license application
8or renewal, that he or she only ships wine, either directly or
9indirectly through a third-party provider registered under
10Section 5-8, from the licensee's own production. A third-party
11provider's shipment of wine on behalf of a winery shipper must
12comply with Section 5-8.
13    Except for a common carrier, a third-party provider
14shipping wine on behalf of a winery shipper's license holder
15is the agent of the winery shipper's license holder and, as
16such, a winery shipper's license holder is responsible for the
17acts and omissions of the third-party provider acting on
18behalf of the license holder. A winery shipper's use of the
19services of a third-party provider does not relieve the winery
20shipper of any obligation under this Act or any rule adopted
21under this Act. A third-party provider, except for a common
22carrier, that engages in shipping wine into Illinois must
23comply with Section 5-8 and on behalf of a winery shipper's
24license holder shall consent to the jurisdiction of the State
25Commission and the State. Any third-party, except for a common
26carrier, holding such an appointment shall, by February 1 of

 

 

HB2399- 67 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 68 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 69 -LRB103 28782 RPS 55167 b

1winery shipper's license shall be revoked in accordance with
2the provisions of Article VII of this Act.
3    For tax purposes, a A winery shipper licensee must
4collect, maintain, and submit to the State Commission on a
5semi-annual basis the total number of cases per resident of
6wine shipped to residents of this State. A winery shipper
7licensed under this subsection (r) must comply with the
8requirements of Section 6-29 of this Act.
9    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
10Section 3-12, the State Commission may receive, respond to,
11and investigate any complaint and impose any of the remedies
12specified in paragraph (1) of subsection (a) of Section 3-12.
13    As used in this subsection, "third-party provider" means
14any entity that provides fulfillment house services, including
15warehousing, packaging, distribution, order processing, or
16shipment of wine, but not the sale of wine, on behalf of a
17licensed winery shipper.
18    (s) A craft distiller tasting permit license shall allow
19an Illinois licensed class 1 craft distiller or class 2 craft
20distiller to transfer a portion of its alcoholic liquor
21inventory from its class 1 craft distiller or class 2 craft
22distiller licensed premises to the premises specified in the
23license hereby created and to conduct a sampling, only in the
24premises specified in the license hereby created, of the
25transferred alcoholic liquor in accordance with subsection (c)
26of Section 6-31 of this Act. The transferred alcoholic liquor

 

 

HB2399- 70 -LRB103 28782 RPS 55167 b

1may not be sold or resold in any form. An applicant for the
2craft distiller tasting permit license must also submit with
3the application proof satisfactory to the State Commission
4that the applicant will provide dram shop liability insurance
5to the maximum limits and have local authority approval.
6    (t) A brewer warehouse permit may be issued to the holder
7of a class 1 brewer license or a class 2 brewer license. If the
8holder of the permit is a class 1 brewer licensee, the brewer
9warehouse permit shall allow the holder to store or warehouse
10up to 930,000 gallons of tax-determined beer manufactured by
11the holder of the permit at the premises specified on the
12permit. If the holder of the permit is a class 2 brewer
13licensee, the brewer warehouse permit shall allow the holder
14to store or warehouse up to 3,720,000 gallons of
15tax-determined beer manufactured by the holder of the permit
16at the premises specified on the permit. Sales to
17non-licensees are prohibited at the premises specified in the
18brewer warehouse permit.
19    (u) A distilling pub license shall allow the licensee to
20only (i) manufacture up to 5,000 gallons of spirits per year
21only on the premises specified in the license, (ii) make sales
22of the spirits manufactured on the premises or, with the
23approval of the State Commission, spirits manufactured on
24another distilling pub licensed premises that is wholly owned
25and operated by the same licensee to importing distributors
26and distributors and to non-licensees for use and consumption,

 

 

HB2399- 71 -LRB103 28782 RPS 55167 b

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

 

 

HB2399- 72 -LRB103 28782 RPS 55167 b

1the holder of a class 1 craft distiller or class 2 craft
2distiller license. The craft distiller warehouse permit shall
3allow the holder to store or warehouse up to 500,000 gallons of
4spirits manufactured by the holder of the permit at the
5premises specified on the permit. Sales to non-licensees are
6prohibited at the premises specified in the craft distiller
7warehouse permit.
8    (w) A beer showcase permit license shall allow an
9Illinois-licensed distributor to transfer a portion of its
10beer inventory from its licensed premises to the premises
11specified in the beer showcase permit license, and, in the
12case of a class 3 brewer, transfer only beer the class 3 brewer
13manufactures from its licensed premises to the premises
14specified in the beer showcase permit license; and to sell or
15offer for sale at retail, only in the premises specified in the
16beer showcase permit license, the transferred or delivered
17beer for on or off premise consumption, but not for resale in
18any form and to sell to non-licensees not more than 96 fluid
19ounces of beer per person. A beer showcase permit license may
20be granted for the following time periods: one day or less; or
212 or more days to a maximum of 15 days per location in any
2212-month period. An applicant for a beer showcase permit
23license must also submit with the application proof
24satisfactory to the State Commission that the applicant will
25provide dram shop liability insurance to the maximum limits
26and have local authority approval. The State Commission shall

 

 

HB2399- 73 -LRB103 28782 RPS 55167 b

1require the beer showcase applicant to comply with Section
26-27.1.
3(Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19;
4101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff.
58-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22;
6102-442, eff. 8-20-21; revised 2-28-22.)
 
7    (235 ILCS 5/5-8 new)
8    Sec. 5-8. Third-party provider registration.
9    (a) A third-party provider must register with the State
10Commission before shipping wine into this State. Registration
11as a third-party provider is valid for a 2-year period and may
12be renewed. The application for registration as a third-party
13provider must include:
14        (1) each address from which the third-party provider
15    will ship wine to a consumer;
16        (2) the name, business address, and license number of
17    each winery shipper, with the name stated as it appears on
18    the winery shipper license, on whose behalf the
19    third-party provider will ship wine to a consumer; and
20        (3) any other information the State Commission may
21    require.
22    (b) To register as a third-party provider, the third-party
23provider must pay a $50 fee and agree to:
24        (1) allow the State Commission to inspect and audit
25    its records under subsection (e);

 

 

HB2399- 74 -LRB103 28782 RPS 55167 b

1        (2) allow the State Commission to inspect a location
2    under Section 3-12;
3        (3) appoint and maintain an agent for service of
4    process under subsection (g); and
5        (4) submit to the jurisdiction of the State
6    Commission, the courts, and any other enforcement
7    authority of this State in a matter relating to
8    enforcement of a law of this State regulating shipment of
9    wine to a person in this State.
10    (c) A third-party provider may ship wine on behalf of a
11winery shipper to a consumer only if:
12        (1) the third-party provider maintains a registration
13    under this Section that is not suspended, revoked, or
14    canceled;
15        (2) the wine was supplied to the third-party provider
16    by a licensed winery shipper;
17        (3) the package containing the wine clearly indicates:
18            (A) on the shipping label, the name and applicable
19        address of the third-party provider, as they appear in
20        the registration under this Section, as consignor, and
21        the name and address of the consumer, as intended
22        recipient;
23            (B) on the package or shipping label, the name and
24        winery shipper's license number of the licensed winery
25        shipper that supplied to the third-party provider the
26        wine contained in the package; and

 

 

HB2399- 75 -LRB103 28782 RPS 55167 b

1        (4) the shipment is otherwise authorized under this
2    Act.
3    (d) A registered third-party provider is subject to the
4jurisdiction of the State Commission, the courts, and any
5other enforcement authority of this State in a matter relating
6to the enforcement of the laws of this State regulating
7shipment of alcoholic liquor directly to a person in this
8State.
9    (e) The State Commission may inspect and audit the records
10of a registered third-party provider for compliance with the
11laws of this State regulating shipment of wine directly to a
12person in this State. A registered third-party provider shall
13allow the State Commission to inspect and audit its records
14and, at the State Commission's request in a record, provide
15complete and accurate copies of its records to the State
16Commission at a location specified by the State Commission,
17not later than 15 days after the date of the request.
18    (f) The State Commission may inspect, during ordinary
19hours of operation, a location where a registered third-party
20provider conducts business to assess compliance with the laws
21of this State regulating shipment of alcoholic liquor directly
22to a person in this State.
23    (g) A registered third-party provider shall appoint and
24continuously maintain with the State Commission an agent for
25service of process. The agent may be located in this State or
26another state. By appointing an agent under this subsection,

 

 

HB2399- 76 -LRB103 28782 RPS 55167 b

1the registered third-party provider affirms that the agent
2consents to accept service. Service of process on the agent
3constitutes valid service of process on the registered
4third-party provider in an action or proceeding arising out of
5enforcement of law of this State regulating shipment of wine
6directly to a person in this State. If a registered
7third-party provider fails to maintain in the records of the
8State Commission a current agent for service of process or if
9the current agent cannot be served with reasonable diligence,
10the State Commission is the agent for service of process.
11    (h) The State Commission may disclose a report, record,
12order, or other information in its possession, for a
13regulatory or enforcement purpose, to:
14        (1) a State agency or law enforcement agency;
15        (2) a local or state agency in another state with
16    regulatory authority over matters relating to alcoholic
17    liquor or taxation or a law enforcement agency of another
18    state; and
19        (3) a federal agency with regulatory authority
20    relating to alcoholic liquor or taxation or a federal law
21    enforcement agency.
22    (i) The State Commission may disclose to the public an
23order resulting from a completed investigation.
 
24    (235 ILCS 5/6-29)  (from Ch. 43, par. 144e)
25    Sec. 6-29. Winery shipper's license.

 

 

HB2399- 77 -LRB103 28782 RPS 55167 b

1    (a) The General Assembly declares that the following is
2the intent of this Section:
3        (1) To authorize direct shipment of wine by an
4    out-of-state maker of wine on the same basis permitted an
5    in-state maker of wine pursuant to the authority of the
6    State under the provisions of Section 2 of the
7    Twenty-First Amendment to the United States Constitution
8    and in conformance with the United States Supreme Court
9    decision decided on May 16, 2005 in Granholm v. Heald.
10        (2) To reaffirm that the General Assembly's findings
11    and declarations that selling alcoholic liquor through
12    various direct marketing means such as catalogs,
13    newspapers, mailings, and the Internet directly to
14    consumers of this State poses a serious threat to the
15    State's efforts to further temperance and prevent youth
16    from accessing alcoholic liquor and the expansion of youth
17    access to additional types of alcoholic liquors.
18        (3) To maintain the State's broad powers granted by
19    Section 2 of the Twenty-First Amendment to the United
20    States Constitution to control the importation or sale of
21    alcoholic liquor and its right to structure its alcoholic
22    liquor distribution system.
23        (4) To ensure that the General Assembly, by
24    authorizing limited direct shipment of wine to meet the
25    directives of the United States Supreme Court, does not
26    intend to impair or modify the State's distribution of

 

 

HB2399- 78 -LRB103 28782 RPS 55167 b

1    wine through distributors or importing distributors, but
2    only to permit limited shipment of wine for personal use.
3        (5) To provide that, in the event that a court of
4    competent jurisdiction declares or finds that this
5    Section, which is enacted to conform Illinois law to the
6    United States Supreme Court decision, is invalid or
7    unconstitutional, the Illinois General Assembly at its
8    earliest general session shall conduct hearings and study
9    methods to conform to any directive or order of the court
10    consistent with the temperance and revenue collection
11    purposes of this Act.
12    (a-5) In this Section, "carrier" means a person or entity
13that:
14        (1) holds himself, herself, or itself out to the
15    general public as engaged in the business of transporting
16    goods for a fee; and
17        (2) is engaged in the business of transporting and
18    delivering alcoholic beverages in this State directly to
19    consumers.
20    (b) Notwithstanding any other provision of law, a wine
21shipper licensee may ship, for personal use and not for
22resale, not more than 12 cases of wine per year to any resident
23of this State who is 21 years of age or older.
24    (b-3) Notwithstanding any other provision of law, sale and
25shipment by a winery shipper licensee pursuant to this Section
26shall be deemed to constitute a sale in this State.

 

 

HB2399- 79 -LRB103 28782 RPS 55167 b

1    (b-5) The shipping container of any wine shipped under
2this Section shall be clearly labeled with the following
3words: "CONTAINS ALCOHOL. SIGNATURE OF A PERSON 21 YEARS OF
4AGE OR OLDER REQUIRED FOR DELIVERY. PROOF OF AGE AND IDENTITY
5MUST BE SHOWN BEFORE DELIVERY.". This warning must be
6prominently displayed on the packaging. A licensee shall
7require the transporter or common carrier that delivers the
8wine to obtain the signature of a person 21 years of age or
9older at the delivery address at the time of delivery. At the
10expense of the licensee, the licensee shall receive a delivery
11confirmation from the express company, common carrier, or
12contract carrier indicating the location of the delivery, time
13of delivery, and the name and signature of the individual 21
14years of age or older who accepts delivery. The State
15Commission shall design and create a label or approve a label
16that must be affixed to the shipping container by the
17licensee.
18    (b-10) A carrier may not deliver to a consumer a package
19known by the carrier to contain wine unless:
20        (1) the consignor is a licensed winery shipper and the
21    carrier has verified its winery shipper license for the
22    current license period; or
23        (2) the consignor is a registered third-party provider
24    and the carrier has verified the registration.
25    A carrier that verifies that a winery shipper has a winery
26shipper license for the current license period may consider

 

 

HB2399- 80 -LRB103 28782 RPS 55167 b

1the license to be valid for the remainder of the license
2period, unless the carrier receives notice from the State
3Commission that the license has been suspended or revoked. A
4carrier that verifies that a third-party provider is
5registered may consider the registration to be valid unless
6the carrier receives notice from the State Commission that the
7registration has been suspended or revoked.
8    (b-15) A registered third-party provider shall file with
9the State Commission a monthly report that includes:
10        (1) the name, business address, and registration
11    number of the third-party provider;
12        (2) the total number of gallons of wine shipped to
13    consumers by the third-party provider during the reporting
14    period; and
15        (3) for each shipment of wine to a consumer during the
16    reporting period:
17            (A) the name, business address, and license number
18        of the winery shipper on whose behalf the third-party
19        provider shipped the wine, with the name stated, if
20        possible, as it appears on the winery shipper license;
21            (B) the name and address of the consumer to whom
22        the wine was shipped;
23            (C) the address from which the third-party
24        provider originated the shipment, stated identically
25        as an address provided by the third-party provider
26        under paragraph (1) of subsection (a) of Section 5-8;

 

 

HB2399- 81 -LRB103 28782 RPS 55167 b

1            (D) the date the shipment was delivered;
2            (E) the type and quantity by volume of wine
3        shipped; and
4            (F) the name and business address of the carrier
5        that delivered the wine and the carrier's parcel
6        tracking number for the shipment.
7    If no business was transacted in this State during the
8reporting period, a report under this subsection must include
9the information under paragraph (1) and report that no
10business was transacted in this State during the reporting
11period.
12    Any books, records, supporting papers, and documents
13containing information and data relating to a statement under
14this subsection shall be kept and preserved for a period of 3
15years, unless their destruction is authorized sooner in
16writing by the Director of Revenue, and shall be open and
17available to inspection by the Director of Revenue or the
18State Commission or any duly authorized officer, agent, or
19employee of the State Commission or the Department of Revenue,
20at all times during business hours of the day. Any person who
21violates any provision of this subsection or any rule of the
22State Commission for the administration and enforcement of the
23provisions of this subsection is guilty of a Class C
24misdemeanor. In case of a continuing violation, each day's
25continuance thereof shall be a separate and distinct offense.
26    (b-20) A licensed winery shipper shall file with the State

 

 

HB2399- 82 -LRB103 28782 RPS 55167 b

1Commission a monthly report that includes:
2        (1) the name, business address, and license number of
3    the licensed winery shipper;
4        (2) the total gallons of each type of wine shipped to
5    consumers during the reporting period; and
6        (3) for each shipment of wine to a consumer during the
7    reporting period:
8            (A) the name and address of the consumer to whom
9        the wine was shipped;
10            (B) the date the shipment was delivered;
11            (C) the type and quantity by volume of wine
12        shipped;
13            (D) the purchase price of the wine shipped and the
14        amount and type of each tax charged in connection with
15        the wine;
16            (E) if the wine was shipped for the licensed
17        winery shipper by a third-party provider, the name,
18        business address, and registration number of the
19        third-party provider, with the name stated, if
20        possible, as it appears on the third-party provider's
21        registration; and
22            (F) if the wine was delivered by a carrier, the
23        name and business address of the carrier and the
24        carrier's parcel tracking number for the shipment.
25    If no business was transacted in this State during the
26reporting period, a report under this subsection must include

 

 

HB2399- 83 -LRB103 28782 RPS 55167 b

1the information under paragraph (1) and report that no
2business was transacted in this State during the reporting
3period.
4    (b-25) A carrier shall file with the State Commission a
5monthly report that includes:
6        (1) the name and business address of the carrier;
7        (2) a list containing the name, business address, and
8    winery shipper license number or third-party provider
9    registration number of each licensed winery shipper and
10    registered third-party provider with which the carrier has
11    an agreement to ship wine, with the name stated, if
12    possible, as it appears on the winery shipper license or
13    third-party provider registration; and
14        (3) for each shipment known by the carrier to contain
15    wine that was delivered to a consumer during the reporting
16    period:
17            (A) the name and business address of the consignor
18        of the shipment;
19            (B) the name and address of the consumer;
20            (C) the date the shipment was delivered by the
21        carrier;
22            (D) the weight, in pounds, of the package; and
23            (E) the carrier's parcel tracking number for the
24        shipment.
25    If no business was transacted in this State during the
26reporting period, a report under this subsection must include

 

 

HB2399- 84 -LRB103 28782 RPS 55167 b

1the information under paragraph (1) and report that no
2business was transacted in this State during the reporting
3period.
4    (b-30) The State Commission shall prescribe the form and
5deadline for filing a report under this Section. The State
6Commission may require the report to be filed electronically.
7The State Commission may require a person filing the report to
8submit additional information, including business records, to
9substantiate information in the report.
10    (b-35) Except as provided in subsection (b-40), a report
11filed under this Section, and information obtained from the
12report, is confidential, exempt from disclosure under the
13Freedom of Information Act, and exempt from public inspection.
14    (b-40) The State Commission may disclose a report under
15this Section or information from the report:
16        (1) as provided in subsections (f) and (g) of Section
17    5-28;
18        (2) if reasonably necessary to enforce or implement
19    this Act or other law of this State relating to the
20    shipment of alcoholic liquor directly to individuals in
21    this State; or
22        (3) as a compilation of aggregated data if personally
23    identifiable information is not disclosed.
24    (b-42) A carrier shipping wine into or within this State
25shall appoint and continuously maintain with the State
26Commission an agent for service of process. The agent may be

 

 

HB2399- 85 -LRB103 28782 RPS 55167 b

1located in this State or another state. By appointing an agent
2under this subsection, the carrier affirms that the agent
3consents to accept service. Service of process on the agent
4constitutes valid service of process on the carrier in an
5action or proceeding arising out of enforcement of law of this
6State regulating shipment of wine directly to a person in this
7State. If a carrier fails to maintain in the records of the
8State Commission a current agent for service of process or if
9the current agent cannot be served with reasonable diligence,
10the State Commission is the agent for service of process.
11    (b-45) If the State Commission has reason to believe that
12alcoholic liquor has been shipped unlawfully into or within
13this State, the State Commission may give notice to the
14consignor requiring the consignor to show cause why shipments
15by the consignor into or within this State should not be
16prohibited. If the State Commission, after an opportunity for
17an evidentiary hearing, determines that the consignor shipped
18alcoholic liquor into or within this State unlawfully, the
19State Commission may issue an administrative order prohibiting
20additional shipments by the consignor of alcoholic liquor into
21or within this State.
22    (b-50) The State Commission may give notice to a carrier
23of the administrative order under subsection (b-45). Except as
24provided in subsection (b-60), beginning 10 days after the
25date of the notice, and until the carrier receives notice that
26the administrative order is rescinded, the carrier may not

 

 

HB2399- 86 -LRB103 28782 RPS 55167 b

1accept from the consignor identified in the notice, for
2shipment into or within this State, a package known by the
3carrier to contain wine.
4    (b-55) For good cause, the State Commission may rescind an
5administrative order issued under subsection (b-45). On
6rescinding the order, the State Commission shall give notice
7of the rescission to each carrier that received notice under
8subsection (b-50) of the order.
9    (b-60) The State Commission may not hold a hearing under
10subsection (a) less than 30 days after the date of the notice
11requiring the consignor to show cause unless:
12        (1) the consignor agrees to an earlier hearing date;
13    or
14        (2) the notice describes with particularity how the
15    consignor's alleged unlawful shipment poses a serious risk
16    to public health or safety.
17    (b-65) If the notice includes a description under
18paragraph (2) of subsection (b-60) and the State Commission
19issues an administrative order under subsection (a):
20        (1) the order must identify the risk; and
21        (2) the State Commission's notice under subsection
22    (b-45) to a carrier must require the carrier to implement
23    the order as soon as possible.
24    (b-70) An administrative order issued under subsection (a)
25is subject to judicial review under the Administrative Review
26Law.

 

 

HB2399- 87 -LRB103 28782 RPS 55167 b

1    (b-75) This amendatory Act of the 103rd General Assembly
2modifies, limits, or supersedes the Electronic Signatures in
3Global and National Commerce Act, 15 U.S.C. Section 7001 et
4seq., as amended, but does not modify, limit, or supersede 15
5U.S.C. Section 7001(c), or authorize electronic delivery of
6any of the notices described in 15 U.S.C. Section 7003(b).
7    (c) No broker within this State shall solicit consumers to
8engage in direct wine shipments under this Section.
9    (d) It is not the intent of this Section to impair the
10distribution of wine through distributors or importing
11distributors, but only to permit shipments of wine for
12personal use.
13(Source: P.A. 95-634, eff. 6-1-08.)
 
14    (235 ILCS 5/7-3.5 new)
15    Sec. 7-3.5. Suspension, revocation, or nonrenewal of
16license for unlawful shipping into another state.
17    (a) The State Commission may suspend, revoke, or refuse to
18issue or renew a license to manufacture, distribute, or sell
19alcoholic liquor issued by the State Commission if the State
20Commission finds, after notice and an opportunity for an
21evidentiary hearing, that the person holding the license has
22shipped alcoholic liquor into another state in violation of
23that state's law.
24    (b) The State Commission may not suspend, revoke, or
25refuse to issue or renew a license issued by the State

 

 

HB2399- 88 -LRB103 28782 RPS 55167 b

1Commission under subsection (a) if the person holding the
2license shows that:
3        (1) the violation of the other state's law is the
4    subject of an enforcement action in the other state that
5    is pending before an administrative body or trial or
6    appellate court in the other state;
7        (2) an enforcement action described in paragraph (1)
8    has concluded in the other state and resulted in a
9    determination that no violation of the other state's law
10    occurred; or
11        (3) the violation of the other state's law occurred
12    more than 2 years before the date of the notice under
13    subsection (a).
 
14    (235 ILCS 5/7-15 new)
15    Sec. 7-15. Third-party provider registrations.
16Registrations as a third-party provider shall be governed
17under this Article in the same manner as licenses.