103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3358

 

Introduced 2/7/2024, by Sen. Ram Villivalam

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/3-12
235 ILCS 5/5-1  from Ch. 43, par. 115
235 ILCS 5/5-3  from Ch. 43, par. 118
235 ILCS 5/6-29.05 new

    Amends the Liquor Control Act of 1934. Creates the distillery shipper's license. Provides that a distillery shipper's license shall allow a person with an Illinois distiller license, a craft distiller license, a class 1 craft distiller license, or class 2 craft distiller license or who is licensed to make spirits under the laws of another state to ship spirits directly to a resident of this State who is 21 years of age or older for that resident's personal use and not for resale. Sets forth provisions concerning licensure application; fees; recordkeeping; and shipping and delivery of spirits. Preempts home rule powers. Makes conforming and other changes.


LRB103 38772 RPS 68909 b

 

 

A BILL FOR

 

SB3358LRB103 38772 RPS 68909 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 3-12, 5-1, and 5-3 and by adding Section
66-29.05 as follows:
 
7    (235 ILCS 5/3-12)
8    Sec. 3-12. Powers and duties of State Commission.
9    (a) The State Commission shall have the following powers,
10functions, and duties:
11        (1) To receive applications and to issue licenses to
12    manufacturers, foreign importers, importing distributors,
13    distributors, non-resident dealers, on premise consumption
14    retailers, off premise sale retailers, special event
15    retailer licensees, special use permit licenses, auction
16    liquor licenses, brew pubs, caterer retailers,
17    non-beverage users, railroads, including owners and
18    lessees of sleeping, dining and cafe cars, airplanes,
19    boats, brokers, and wine maker's premises licensees in
20    accordance with the provisions of this Act, and to suspend
21    or revoke such licenses upon the State Commission's
22    determination, upon notice after hearing, that a licensee
23    has violated any provision of this Act or any rule or

 

 

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

 

 

SB3358- 3 -LRB103 38772 RPS 68909 b

1    licensee, for the period of the license, shall not exceed
2    $20,000. The maximum penalty that may be imposed on a
3    licensee for selling a bottle of alcoholic liquor with a
4    foreign object in it or serving from a bottle of alcoholic
5    liquor with a foreign object in it shall be the
6    destruction of that bottle of alcoholic liquor for the
7    first 10 bottles so sold or served from by the licensee.
8    For the eleventh bottle of alcoholic liquor and for each
9    third bottle thereafter sold or served from by the
10    licensee with a foreign object in it, the maximum penalty
11    that may be imposed on the licensee is the destruction of
12    the bottle of alcoholic liquor and a fine of up to $50.
13        Any notice issued by the State Commission to a
14    licensee for a violation of this Act or any notice with
15    respect to settlement or offer in compromise shall include
16    the field report, photographs, and any other supporting
17    documentation necessary to reasonably inform the licensee
18    of the nature and extent of the violation or the conduct
19    alleged to have occurred. The failure to include such
20    required documentation shall result in the dismissal of
21    the action.
22        (2) To adopt such rules and regulations consistent
23    with the provisions of this Act which shall be necessary
24    to carry on its functions and duties to the end that the
25    health, safety and welfare of the People of the State of
26    Illinois shall be protected and temperance in the

 

 

SB3358- 4 -LRB103 38772 RPS 68909 b

1    consumption of alcoholic liquors shall be fostered and
2    promoted and to distribute copies of such rules and
3    regulations to all licensees affected thereby.
4        (3) To call upon other administrative departments of
5    the State, county and municipal governments, county and
6    city police departments and upon prosecuting officers for
7    such information and assistance as it deems necessary in
8    the performance of its duties.
9        (4) To recommend to local commissioners rules and
10    regulations, not inconsistent with the law, for the
11    distribution and sale of alcoholic liquors throughout the
12    State.
13        (5) To inspect, or cause to be inspected, any premises
14    in this State where alcoholic liquors are manufactured,
15    distributed, warehoused, or sold. Nothing in this Act
16    authorizes an agent of the State Commission to inspect
17    private areas within the premises without reasonable
18    suspicion or a warrant during an inspection. "Private
19    areas" include, but are not limited to, safes, personal
20    property, and closed desks.
21        (5.1) Upon receipt of a complaint or upon having
22    knowledge that any person is engaged in business as a
23    manufacturer, importing distributor, distributor, or
24    retailer without a license or valid license, to conduct an
25    investigation. If, after conducting an investigation, the
26    State Commission is satisfied that the alleged conduct

 

 

SB3358- 5 -LRB103 38772 RPS 68909 b

1    occurred or is occurring, it may issue a cease and desist
2    notice as provided in this Act, impose civil penalties as
3    provided in this Act, notify the local liquor authority,
4    or file a complaint with the State's Attorney's Office of
5    the county where the incident occurred or the Attorney
6    General.
7        (5.2) Upon receipt of a complaint or upon having
8    knowledge that any person is shipping alcoholic liquor
9    into this State from a point outside of this State if the
10    shipment is in violation of this Act, to conduct an
11    investigation. If, after conducting an investigation, the
12    State Commission is satisfied that the alleged conduct
13    occurred or is occurring, it may issue a cease and desist
14    notice as provided in this Act, impose civil penalties as
15    provided in this Act, notify the foreign jurisdiction, or
16    file a complaint with the State's Attorney's Office of the
17    county where the incident occurred or the Attorney
18    General.
19        (5.3) To receive complaints from licensees, local
20    officials, law enforcement agencies, organizations, and
21    persons stating that any licensee has been or is violating
22    any provision of this Act or the rules and regulations
23    issued pursuant to this Act. Such complaints shall be in
24    writing, signed and sworn to by the person making the
25    complaint, and shall state with specificity the facts in
26    relation to the alleged violation. If the State Commission

 

 

SB3358- 6 -LRB103 38772 RPS 68909 b

1    has reasonable grounds to believe that the complaint
2    substantially alleges a violation of this Act or rules and
3    regulations adopted pursuant to this Act, it shall conduct
4    an investigation. If, after conducting an investigation,
5    the State Commission is satisfied that the alleged
6    violation did occur, it shall proceed with disciplinary
7    action against the licensee as provided in this Act.
8        (5.4) To make arrests and issue notices of civil
9    violations where necessary for the enforcement of this
10    Act.
11        (5.5) To investigate any and all unlicensed activity.
12        (5.6) To impose civil penalties or fines to any person
13    who, without holding a valid license, engages in conduct
14    that requires a license pursuant to this Act, in an amount
15    not to exceed $20,000 for each offense as determined by
16    the State Commission. A civil penalty shall be assessed by
17    the State Commission after a hearing is held in accordance
18    with the provisions set forth in this Act regarding the
19    provision of a hearing for the revocation or suspension of
20    a license.
21        (6) To hear and determine appeals from orders of a
22    local commission in accordance with the provisions of this
23    Act, as hereinafter set forth. Hearings under this
24    subsection shall be held in Springfield or Chicago, at
25    whichever location is the more convenient for the majority
26    of persons who are parties to the hearing.

 

 

SB3358- 7 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 8 -LRB103 38772 RPS 68909 b

1    held by the State Commission, to appoint, at the
2    commission's discretion, hearing officers to conduct
3    hearings involving complex issues or issues that will
4    require a protracted period of time to resolve, to
5    examine, or cause to be examined, under oath, any
6    licensee, and to examine or cause to be examined the books
7    and records of such licensee; to hear testimony and take
8    proof material for its information in the discharge of its
9    duties hereunder; to administer or cause to be
10    administered oaths; for any such purpose to issue subpoena
11    or subpoenas to require the attendance of witnesses and
12    the production of books, which shall be effective in any
13    part of this State, and to adopt rules to implement its
14    powers under this paragraph (8).
15        Any circuit court may, by order duly entered, require
16    the attendance of witnesses and the production of relevant
17    books subpoenaed by the State Commission and the court may
18    compel obedience to its order by proceedings for contempt.
19        (9) To investigate the administration of laws in
20    relation to alcoholic liquors in this and other states and
21    any foreign countries, and to recommend from time to time
22    to the Governor and through him or her to the legislature
23    of this State, such amendments to this Act, if any, as it
24    may think desirable and as will serve to further the
25    general broad purposes contained in Section 1-2 hereof.
26        (10) To adopt such rules and regulations consistent

 

 

SB3358- 9 -LRB103 38772 RPS 68909 b

1    with the provisions of this Act which shall be necessary
2    for the control, sale, or disposition of alcoholic liquor
3    damaged as a result of an accident, wreck, flood, fire, or
4    other similar occurrence.
5        (11) To develop industry educational programs related
6    to responsible serving and selling, particularly in the
7    areas of overserving consumers and illegal underage
8    purchasing and consumption of alcoholic beverages.
9        (11.1) To license persons providing education and
10    training to alcohol beverage sellers and servers for
11    mandatory and non-mandatory training under the Beverage
12    Alcohol Sellers and Servers Education and Training
13    (BASSET) programs and to develop and administer a public
14    awareness program in Illinois to reduce or eliminate the
15    illegal purchase and consumption of alcoholic beverage
16    products by persons under the age of 21. Application for a
17    license shall be made on forms provided by the State
18    Commission.
19        (12) To develop and maintain a repository of license
20    and regulatory information.
21        (13) (Blank).
22        (14) On or before April 30, 2008 and every 2 years
23    thereafter, the State Commission shall present a written
24    report to the Governor and the General Assembly that shall
25    be based on a study of the impact of Public Act 95-634 on
26    the business of soliciting, selling, and shipping wine

 

 

SB3358- 10 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 11 -LRB103 38772 RPS 68909 b

1    from inside or outside of this State directly to residents
2    of this State are licensed by this State or are selling or
3    attempting to sell wine to persons under 21 years of age in
4    violation of this Act.
5        (16) The State Commission shall, in addition to
6    notifying any appropriate law enforcement agency, submit
7    notices of complaints or violations of Sections 6-29,
8    6-29.05, and 6-29.1 by persons who do not hold a winery
9    shipper's license or distillery shipper's license under
10    this Act to the Illinois Attorney General and to the U.S.
11    Department of Treasury's Alcohol and Tobacco Tax and Trade
12    Bureau.
13        (17)(A) A person licensed to make wine under the laws
14    of another state who has a winery shipper's license under
15    this Act and annually produces less than 25,000 gallons of
16    wine or a person who has a first-class or second-class
17    wine manufacturer's license, a first-class or second-class
18    wine-maker's license, or a limited wine manufacturer's
19    license under this Act and annually produces less than
20    25,000 gallons of wine may make application to the
21    Commission for a self-distribution exemption to allow the
22    sale of not more than 5,000 gallons of the exemption
23    holder's wine to retail licensees per year and to sell
24    cider, mead, or both cider and mead to brewers, class 1
25    brewers, class 2 brewers, and class 3 brewers that,
26    pursuant to subsection (e) of Section 6-4 of this Act,

 

 

SB3358- 12 -LRB103 38772 RPS 68909 b

1    sell beer, cider, mead, or any combination thereof to
2    non-licensees at their breweries.
3        (B) In the application, which shall be sworn under
4    penalty of perjury, such person shall state (1) the date
5    it was established; (2) its volume of production and sales
6    for each year since its establishment; (3) its efforts to
7    establish distributor relationships; (4) that a
8    self-distribution exemption is necessary to facilitate the
9    marketing of its wine; and (5) that it will comply with the
10    liquor and revenue laws of the United States, this State,
11    and any other state where it is licensed.
12        (C) The State Commission shall approve the application
13    for a self-distribution exemption if such person: (1) is
14    in compliance with State revenue and liquor laws; (2) is
15    not a member of any affiliated group that produces
16    directly or indirectly more than 25,000 gallons of wine
17    per annum, 930,000 gallons of beer per annum, or 50,000
18    gallons of spirits per annum; (3) will not annually
19    produce for sale more than 25,000 gallons of wine, 930,000
20    gallons of beer, or 50,000 gallons of spirits; and (4)
21    will not annually sell more than 5,000 gallons of its wine
22    to retail licensees.
23        (D) A self-distribution exemption holder shall
24    annually certify to the State Commission its production of
25    wine in the previous 12 months and its anticipated
26    production and sales for the next 12 months. The State

 

 

SB3358- 13 -LRB103 38772 RPS 68909 b

1    Commission may fine, suspend, or revoke a
2    self-distribution exemption after a hearing if it finds
3    that the exemption holder has made a material
4    misrepresentation in its application, violated a revenue
5    or liquor law of Illinois, exceeded production of 25,000
6    gallons of wine, 930,000 gallons of beer, or 50,000
7    gallons of spirits in any calendar year, or become part of
8    an affiliated group producing more than 25,000 gallons of
9    wine, 930,000 gallons of beer, or 50,000 gallons of
10    spirits.
11        (E) Except in hearings for violations of this Act or
12    Public Act 95-634 or a bona fide investigation by duly
13    sworn law enforcement officials, the State Commission, or
14    its agents, the State Commission shall maintain the
15    production and sales information of a self-distribution
16    exemption holder as confidential and shall not release
17    such information to any person.
18        (F) The State Commission shall issue regulations
19    governing self-distribution exemptions consistent with
20    this Section and this Act.
21        (G) Nothing in this paragraph (17) shall prohibit a
22    self-distribution exemption holder from entering into or
23    simultaneously having a distribution agreement with a
24    licensed Illinois distributor.
25        (H) It is the intent of this paragraph (17) to promote
26    and continue orderly markets. The General Assembly finds

 

 

SB3358- 14 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 15 -LRB103 38772 RPS 68909 b

1    necessary to facilitate the marketing of its beer; and (5)
2    that it will comply with the alcoholic beverage and
3    revenue laws of the United States, this State, and any
4    other state where it is licensed.
5        (C) Any application submitted shall be posted on the
6    State Commission's website at least 45 days prior to
7    action by the State Commission. The State Commission shall
8    approve the application for a self-distribution exemption
9    if the class 1 brewer licensee: (1) is in compliance with
10    the State, revenue, and alcoholic beverage laws; (2) is
11    not a member of any affiliated group that manufactures,
12    directly or indirectly, more than 930,000 gallons of beer
13    per annum, 25,000 gallons of wine per annum, or 50,000
14    gallons of spirits per annum; (3) shall not annually
15    manufacture for sale more than 930,000 gallons of beer,
16    25,000 gallons of wine, or 50,000 gallons of spirits; (4)
17    shall not annually sell more than 232,500 gallons of its
18    beer to retail licensees and class 3 brewers and to
19    brewers, class 1 brewers, and class 2 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; and (5) has relinquished
23    any brew pub license held by the licensee, including any
24    ownership interest it held in the licensed brew pub.
25        (D) A self-distribution exemption holder shall
26    annually certify to the State Commission its manufacture

 

 

SB3358- 16 -LRB103 38772 RPS 68909 b

1    of beer during the previous 12 months and its anticipated
2    manufacture and sales of beer for the next 12 months. The
3    State Commission may fine, suspend, or revoke a
4    self-distribution exemption after a hearing if it finds
5    that the exemption holder has made a material
6    misrepresentation in its application, violated a revenue
7    or alcoholic beverage law of Illinois, exceeded the
8    manufacture of 930,000 gallons of beer, 25,000 gallons of
9    wine, or 50,000 gallons of spirits in any calendar year or
10    became part of an affiliated group manufacturing more than
11    930,000 gallons of beer, 25,000 gallons of wine, or 50,000
12    gallons of spirits.
13        (E) The State Commission shall issue rules and
14    regulations governing self-distribution exemptions
15    consistent with this Act.
16        (F) Nothing in this paragraph (18) shall prohibit a
17    self-distribution exemption holder from entering into or
18    simultaneously having a distribution agreement with a
19    licensed Illinois importing distributor or a distributor.
20    If a self-distribution exemption holder enters into a
21    distribution agreement and has assigned distribution
22    rights to an importing distributor or distributor, then
23    the self-distribution exemption holder's distribution
24    rights in the assigned territories shall cease in a
25    reasonable time not to exceed 60 days.
26        (G) It is the intent of this paragraph (18) to promote

 

 

SB3358- 17 -LRB103 38772 RPS 68909 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 beer access to the
6    marketplace in order to develop a customer base without
7    impairing the integrity of the 3-tier system.
8        (19)(A) A class 1 craft distiller licensee or a
9    non-resident dealer who manufactures less than 50,000
10    gallons of distilled spirits per year may make application
11    to the State Commission for a self-distribution exemption
12    to allow the sale of not more than 5,000 gallons of the
13    exemption holder's spirits to retail licensees per year.
14        (B) In the application, which shall be sworn under
15    penalty of perjury, the class 1 craft distiller licensee
16    or non-resident dealer shall state (1) the date it was
17    established; (2) its volume of spirits manufactured and
18    sold for each year since its establishment; (3) its
19    efforts to establish distributor relationships; (4) that a
20    self-distribution exemption is necessary to facilitate the
21    marketing of its spirits; and (5) that it will comply with
22    the alcoholic beverage and revenue laws of the United
23    States, this State, and any other state where it is
24    licensed.
25        (C) Any application submitted shall be posted on the
26    State Commission's website at least 45 days prior to

 

 

SB3358- 18 -LRB103 38772 RPS 68909 b

1    action by the State Commission. The State Commission shall
2    approve the application for a self-distribution exemption
3    if the applicant: (1) is in compliance with State revenue
4    and alcoholic beverage laws; (2) is not a member of any
5    affiliated group that produces more than 50,000 gallons of
6    spirits per annum, 930,000 gallons of beer per annum, or
7    25,000 gallons of wine per annum; (3) does not annually
8    manufacture for sale more than 50,000 gallons of spirits,
9    930,000 gallons of beer, or 25,000 gallons of wine; and
10    (4) does not annually sell more than 5,000 gallons of its
11    spirits to retail licensees.
12        (D) A self-distribution exemption holder shall
13    annually certify to the State Commission its manufacture
14    of spirits during the previous 12 months and its
15    anticipated manufacture and sales of spirits for the next
16    12 months. The State Commission may fine, suspend, or
17    revoke a self-distribution exemption after a hearing if it
18    finds that the exemption holder has made a material
19    misrepresentation in its application, violated a revenue
20    or alcoholic beverage law of Illinois, exceeded the
21    manufacture of 50,000 gallons of spirits, 930,000 gallons
22    of beer, or 25,000 gallons of wine in any calendar year, or
23    has become part of an affiliated group manufacturing more
24    than 50,000 gallons of spirits, 930,000 gallons of beer,
25    or 25,000 gallons of wine.
26        (E) The State Commission shall adopt rules governing

 

 

SB3358- 19 -LRB103 38772 RPS 68909 b

1    self-distribution exemptions consistent with this Act.
2        (F) Nothing in this paragraph (19) shall prohibit a
3    self-distribution exemption holder from entering into or
4    simultaneously having a distribution agreement with a
5    licensed Illinois importing distributor or a distributor.
6        (G) It is the intent of this paragraph (19) to promote
7    and continue orderly markets. The General Assembly finds
8    that in order to preserve Illinois' regulatory
9    distribution system, it is necessary to create an
10    exception for smaller manufacturers in order to afford and
11    allow such smaller manufacturers of spirits access to the
12    marketplace in order to develop a customer base without
13    impairing the integrity of the 3-tier system.
14        (20)(A) A class 3 brewer licensee who must manufacture
15    less than 465,000 gallons of beer in the aggregate and not
16    more than 155,000 gallons at any single brewery premises
17    may make application to the State Commission for a
18    self-distribution exemption to allow the sale of not more
19    than 6,200 gallons of beer from each in-state or
20    out-of-state class 3 brewery premises, which shall not
21    exceed 18,600 gallons annually in the aggregate, that is
22    manufactured at a wholly owned class 3 brewer's in-state
23    or out-of-state licensed premises to retail licensees and
24    class 3 brewers and to brewers, class 1 brewers, class 2
25    brewers that, pursuant to subsection (e) of Section 6-4,
26    sell beer, cider, or both beer and cider to non-licensees

 

 

SB3358- 20 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 21 -LRB103 38772 RPS 68909 b

1    in-state or out-of-state class 3 brewery premises, and
2    shall not exceed 18,600 gallons annually in the aggregate,
3    to retail licensees and class 3 brewers and to brewers,
4    class 1 brewers, and class 2 brewers that, pursuant to
5    subsection (e) of Section 6-4 of this Act, sell beer,
6    cider, or both beer and cider to non-licensees at their
7    breweries.
8        (D) A self-distribution exemption holder shall
9    annually certify to the State Commission its manufacture
10    of beer during the previous 12 months and its anticipated
11    manufacture and sales of beer for the next 12 months. The
12    State Commission may fine, suspend, or revoke a
13    self-distribution exemption after a hearing if it finds
14    that the exemption holder has made a material
15    misrepresentation in its application, violated a revenue
16    or alcoholic beverage law of Illinois, exceeded the
17    manufacture of 465,000 gallons of beer in any calendar
18    year or became part of an affiliated group manufacturing
19    more than 465,000 gallons of beer, or exceeded the sale to
20    retail licensees, brewers, class 1 brewers, class 2
21    brewers, and class 3 brewers of 6,200 gallons per brewery
22    location or 18,600 gallons in the aggregate.
23        (E) The State Commission may adopt rules governing
24    self-distribution exemptions consistent with this Act.
25        (F) Nothing in this paragraph shall prohibit a
26    self-distribution exemption holder from entering into or

 

 

SB3358- 22 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 23 -LRB103 38772 RPS 68909 b

1        (ii) the amount of licensing fees received as a result
2    of Public Act 90-739;
3        (iii) the number of reported violations, the number of
4    cease and desist notices issued by the Commission, the
5    number of notices of violations issued to the Department
6    of Revenue, and the number of notices and complaints of
7    violations to law enforcement officials.
8(Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19;
9101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff.
108-20-21; 102-813, eff. 5-13-22.)
 
11    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
12    Sec. 5-1. Licenses issued by the Illinois Liquor Control
13Commission shall be of the following classes:
14    (a) Manufacturer's license - Class 1. Distiller, Class 2.
15Rectifier, Class 3. Brewer, Class 4. First Class Wine
16Manufacturer, Class 5. Second Class Wine Manufacturer, Class
176. First Class Winemaker, Class 7. Second Class Winemaker,
18Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
19Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
20Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
21Class 14. Class 3 Brewer,
22    (b) Distributor's license,
23    (c) Importing Distributor's license,
24    (d) Retailer's license,
25    (e) Special Event Retailer's license (not-for-profit),

 

 

SB3358- 24 -LRB103 38772 RPS 68909 b

1    (f) Railroad license,
2    (g) Boat license,
3    (h) Non-Beverage User's license,
4    (i) Wine-maker's premises license,
5    (j) Airplane license,
6    (k) Foreign importer's license,
7    (l) Broker's license,
8    (m) Non-resident dealer's license,
9    (n) Brew Pub license,
10    (o) Auction liquor license,
11    (p) Caterer retailer license,
12    (q) Special use permit license,
13    (r) Winery shipper's license,
14    (s) Craft distiller tasting permit,
15    (t) Brewer warehouse permit,
16    (u) Distilling pub license,
17    (v) Craft distiller warehouse permit,
18    (w) Beer showcase permit, .
19    (x) Distillery shipper's license.
20    No person, firm, partnership, corporation, or other legal
21business entity that is engaged in the manufacturing of wine
22may concurrently obtain and hold a wine-maker's license and a
23wine manufacturer's license.
24    (a) A manufacturer's license shall allow the manufacture,
25importation in bulk, storage, distribution and sale of
26alcoholic liquor to persons without the State, as may be

 

 

SB3358- 25 -LRB103 38772 RPS 68909 b

1permitted by law and to licensees in this State as follows:
2    Class 1. A Distiller may make sales and deliveries of
3alcoholic liquor to distillers, rectifiers, importing
4distributors, distributors and non-beverage users and to no
5other licensees.
6    Class 2. A Rectifier, who is not a distiller, as defined
7herein, may make sales and deliveries of alcoholic liquor to
8rectifiers, importing distributors, distributors, retailers
9and non-beverage users and to no other licensees.
10    Class 3. A Brewer may make sales and deliveries of beer to
11importing distributors and distributors and may make sales as
12authorized under subsection (e) of Section 6-4 of this Act,
13including any alcoholic liquor that subsection (e) of Section
146-4 authorizes a brewer to sell in its original package only to
15a non-licensee for pick-up by a non-licensee either within the
16interior of the brewery premises or at outside of the brewery
17premises at a curb-side or parking lot adjacent to the brewery
18premises, subject to any local ordinance.
19    Class 4. A first class wine-manufacturer may make sales
20and deliveries of up to 50,000 gallons of wine to
21manufacturers, importing distributors and distributors, and to
22no other licensees. If a first-class wine-manufacturer
23manufactures beer, it shall also obtain and shall only be
24eligible for, in addition to any current license, a class 1
25brewer license, shall not manufacture more than 930,000
26gallons of beer per year, and shall not be a member of or

 

 

SB3358- 26 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 27 -LRB103 38772 RPS 68909 b

1addition to any current license, a class 1 brewer license,
2shall not manufacture more than 930,000 gallons of beer per
3year, and shall not be a member of or affiliated with, directly
4or indirectly, a manufacturer that produces more than 930,000
5gallons of beer per year. If the first-class wine-maker
6manufactures spirits, it shall also obtain and shall only be
7eligible for, in addition to any current license, a class 1
8craft distiller license, shall not manufacture more than
950,000 gallons of spirits per year, and shall not be a member
10of or affiliated with, directly or indirectly, a manufacturer
11that produces more than 50,000 gallons of spirits per year. A
12first-class wine-maker holding a class 1 brewer license or a
13class 1 craft distiller license shall not be eligible for a
14wine-maker's premises license but shall be permitted to sell
15wine manufactured at the first-class wine-maker premises to
16non-licensees.
17    Class 7. A second-class wine-maker's license shall allow
18the manufacture of up to 150,000 gallons of wine per year, and
19the storage and sale of such wine to distributors in this State
20and to persons without the State, as may be permitted by law. A
21person who, prior to June 1, 2008 (the effective date of Public
22Act 95-634), is a holder of a second-class wine-maker's
23license and annually produces more than 25,000 gallons of its
24own wine and who distributes its wine to licensed retailers
25shall cease this practice on or before July 1, 2008 in
26compliance with Public Act 95-634. If a second-class

 

 

SB3358- 28 -LRB103 38772 RPS 68909 b

1wine-maker manufactures beer, it shall also obtain and shall
2only be eligible for, in addition to any current license, a
3class 2 brewer license, shall not manufacture more than
43,720,000 gallons of beer per year, and shall not be a member
5of or affiliated with, directly or indirectly, a manufacturer
6that produces more than 3,720,000 gallons of beer per year. If
7a second-class wine-maker manufactures spirits, it shall also
8obtain and shall only be eligible for, in addition to any
9current license, a class 2 craft distiller license, shall not
10manufacture more than 100,000 gallons of spirits per year, and
11shall not be a member of or affiliated with, directly or
12indirectly, a manufacturer that produces more than 100,000
13gallons of spirits per year.
14    Class 8. A limited wine-manufacturer may make sales and
15deliveries not to exceed 40,000 gallons of wine per year to
16distributors, and to non-licensees in accordance with the
17provisions of this Act.
18    Class 9. A craft distiller license, which may only be held
19by a class 1 craft distiller licensee or class 2 craft
20distiller licensee but not held by both a class 1 craft
21distiller licensee and a class 2 craft distiller licensee,
22shall grant all rights conveyed by either: (i) a class 1 craft
23distiller license if the craft distiller holds a class 1 craft
24distiller license; or (ii) a class 2 craft distiller licensee
25if the craft distiller holds a class 2 craft distiller
26license.

 

 

SB3358- 29 -LRB103 38772 RPS 68909 b

1    Class 10. A class 1 craft distiller license, which may
2only be issued to a licensed craft distiller or licensed
3non-resident dealer, shall allow the manufacture of up to
450,000 gallons of spirits per year provided that the class 1
5craft distiller licensee does not manufacture more than a
6combined 50,000 gallons of spirits per year and is not a member
7of or affiliated with, directly or indirectly, a manufacturer
8that produces more than 50,000 gallons of spirits per year. If
9a class 1 craft distiller manufactures beer, it shall also
10obtain and shall only be eligible for, in addition to any
11current license, a class 1 brewer license, shall not
12manufacture more than 930,000 gallons of beer per year, and
13shall not be a member of or affiliated with, directly or
14indirectly, a manufacturer that produces more than 930,000
15gallons of beer per year. If a class 1 craft distiller
16manufactures wine, it shall also obtain and shall only be
17eligible for, in addition to any current license, a
18first-class wine-manufacturer license or a first-class
19wine-maker's license, shall not manufacture more than 50,000
20gallons of wine per year, and shall not be a member of or
21affiliated with, directly or indirectly, a manufacturer that
22produces more than 50,000 gallons of wine per year. A class 1
23craft distiller licensee may make sales and deliveries to
24importing distributors and distributors and to retail
25licensees in accordance with the conditions set forth in
26paragraph (19) of subsection (a) of Section 3-12 of this Act.

 

 

SB3358- 30 -LRB103 38772 RPS 68909 b

1However, the aggregate amount of spirits sold to non-licensees
2and sold or delivered to retail licensees may not exceed 5,000
3gallons per year.
4    A class 1 craft distiller licensee may sell up to 5,000
5gallons of such spirits to non-licensees to the extent
6permitted by any exemption approved by the State Commission
7pursuant to Section 6-4 of this Act. A class 1 craft distiller
8license holder may store such spirits at a non-contiguous
9licensed location, but at no time shall a class 1 craft
10distiller license holder directly or indirectly produce in the
11aggregate more than 50,000 gallons of spirits per year.
12    A class 1 craft distiller licensee may hold more than one
13class 1 craft distiller's license. However, a class 1 craft
14distiller that holds more than one class 1 craft distiller
15license shall not manufacture, in the aggregate, more than
1650,000 gallons of spirits by distillation per year and shall
17not sell, in the aggregate, more than 5,000 gallons of such
18spirits to non-licensees in accordance with an exemption
19approved by the State Commission pursuant to Section 6-4 of
20this Act.
21    Class 11. A class 2 craft distiller license, which may
22only be issued to a licensed craft distiller or licensed
23non-resident dealer, shall allow the manufacture of up to
24100,000 gallons of spirits per year provided that the class 2
25craft distiller licensee does not manufacture more than a
26combined 100,000 gallons of spirits per year and is not a

 

 

SB3358- 31 -LRB103 38772 RPS 68909 b

1member of or affiliated with, directly or indirectly, a
2manufacturer that produces more than 100,000 gallons of
3spirits per year. If a class 2 craft distiller manufactures
4beer, it shall also obtain and shall only be eligible for, in
5addition to any current license, a class 2 brewer license,
6shall not manufacture more than 3,720,000 gallons of beer per
7year, and shall not be a member of or affiliated with, directly
8or indirectly, a manufacturer that produces more than
93,720,000 gallons of beer per year. If a class 2 craft
10distiller manufactures wine, it shall also obtain and shall
11only be eligible for, in addition to any current license, a
12second-class wine-maker's license, shall not manufacture more
13than 150,000 gallons of wine per year, and shall not be a
14member of or affiliated with, directly or indirectly, a
15manufacturer that produces more than 150,000 gallons of wine
16per year. A class 2 craft distiller licensee may make sales and
17deliveries to importing distributors and distributors, but
18shall not make sales or deliveries to any other licensee. If
19the State Commission provides prior approval, a class 2 craft
20distiller licensee may annually transfer up to 100,000 gallons
21of spirits manufactured by that class 2 craft distiller
22licensee to the premises of a licensed class 2 craft distiller
23wholly owned and operated by the same licensee. A class 2 craft
24distiller may transfer spirits to a distilling pub wholly
25owned and operated by the class 2 craft distiller subject to
26the following limitations and restrictions: (i) the transfer

 

 

SB3358- 32 -LRB103 38772 RPS 68909 b

1shall not annually exceed more than 5,000 gallons; (ii) the
2annual amount transferred shall reduce the distilling pub's
3annual permitted production limit; (iii) all spirits
4transferred shall be subject to Article VIII of this Act; (iv)
5a written record shall be maintained by the distiller and
6distilling pub specifying the amount, date of delivery, and
7receipt of the product by the distilling pub; and (v) the
8distilling pub shall be located no farther than 80 miles from
9the class 2 craft distiller's licensed location.
10    A class 2 craft distiller shall, prior to transferring
11spirits to a distilling pub wholly owned by the class 2 craft
12distiller, furnish a written notice to the State Commission of
13intent to transfer spirits setting forth the name and address
14of the distilling pub and shall annually submit to the State
15Commission a verified report identifying the total gallons of
16spirits transferred to the distilling pub wholly owned by the
17class 2 craft distiller.
18    A class 2 craft distiller license holder may store such
19spirits at a non-contiguous licensed location, but at no time
20shall a class 2 craft distiller license holder directly or
21indirectly produce in the aggregate more than 100,000 gallons
22of spirits per year.
23    Class 12. A class 1 brewer license, which may only be
24issued to a licensed brewer or licensed non-resident dealer,
25shall allow the manufacture of up to 930,000 gallons of beer
26per year provided that the class 1 brewer licensee does not

 

 

SB3358- 33 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 34 -LRB103 38772 RPS 68909 b

1issued to a licensed brewer or licensed non-resident dealer,
2shall allow the manufacture of up to 3,720,000 gallons of beer
3per year provided that the class 2 brewer licensee does not
4manufacture more than a combined 3,720,000 gallons of beer per
5year and is not a member of or affiliated with, directly or
6indirectly, a manufacturer that produces more than 3,720,000
7gallons of beer per year. If a class 2 brewer manufactures
8spirits, it shall also obtain and shall only be eligible for,
9in addition to any current license, a class 2 craft distiller
10license, shall not manufacture more than 100,000 gallons of
11spirits per year, and shall not be a member of or affiliated
12with, directly or indirectly, a manufacturer that produces
13more than 100,000 gallons of spirits per year. If a class 2
14craft distiller manufactures wine, it shall also obtain and
15shall only be eligible for, in addition to any current
16license, a second-class wine-maker's license, shall not
17manufacture more than 150,000 gallons of wine per year, and
18shall not be a member of or affiliated with, directly or
19indirectly, a manufacturer that produces more than 150,000
20gallons of wine a year. A class 2 brewer licensee may make
21sales and deliveries to importing distributors and
22distributors, but shall not make sales or deliveries to any
23other licensee. If the State Commission provides prior
24approval, a class 2 brewer licensee may annually transfer up
25to 3,720,000 gallons of beer manufactured by that class 2
26brewer licensee to the premises of a licensed class 2 brewer

 

 

SB3358- 35 -LRB103 38772 RPS 68909 b

1wholly owned and operated by the same licensee.
2    A class 2 brewer may transfer beer to a brew pub wholly
3owned and operated by the class 2 brewer subject to the
4following limitations and restrictions: (i) the transfer shall
5not annually exceed more than 31,000 gallons; (ii) the annual
6amount transferred shall reduce the brew pub's annual
7permitted production limit; (iii) all beer transferred shall
8be subject to Article VIII of this Act; (iv) a written record
9shall be maintained by the brewer and brew pub specifying the
10amount, date of delivery, and receipt of the product by the
11brew pub; and (v) the brew pub shall be located no farther than
1280 miles from the class 2 brewer's licensed location.
13    A class 2 brewer shall, prior to transferring beer to a
14brew pub wholly owned by the class 2 brewer, furnish a written
15notice to the State Commission of intent to transfer beer
16setting forth the name and address of the brew pub and shall
17annually submit to the State Commission a verified report
18identifying the total gallons of beer transferred to the brew
19pub wholly owned by the class 2 brewer.
20    Class 14. A class 3 brewer license, which may be issued to
21a brewer or a non-resident dealer, shall allow the manufacture
22of no more than 465,000 gallons of beer per year and no more
23than 155,000 gallons at a single brewery premises, and shall
24allow the sale of no more than 6,200 gallons of beer from each
25in-state or out-of-state class 3 brewery premises, or 18,600
26gallons in the aggregate, to retail licensees, class 1

 

 

SB3358- 36 -LRB103 38772 RPS 68909 b

1brewers, class 2 brewers, and class 3 brewers as long as the
2class 3 brewer licensee does not manufacture more than a
3combined 465,000 gallons of beer per year and is not a member
4of or affiliated with, directly or indirectly, a manufacturer
5that produces more than 465,000 gallons of beer per year to
6make sales to importing distributors, distributors, retail
7licensees, brewers, class 1 brewers, class 2 brewers, and
8class 3 brewers in accordance with the conditions set forth in
9paragraph (20) of subsection (a) of Section 3-12. If the State
10Commission provides prior approval, a class 3 brewer may
11annually transfer up to 155,000 gallons of beer manufactured
12by that class 3 brewer to the premises of a licensed class 3
13brewer wholly owned and operated by the same licensee. A class
143 brewer shall manufacture beer at the brewer's class 3
15designated licensed premises, and may sell beer as otherwise
16provided in this Act.
17    (a-1) A manufacturer which is licensed in this State to
18make sales or deliveries of alcoholic liquor to licensed
19distributors or importing distributors and which enlists
20agents, representatives, or individuals acting on its behalf
21who contact licensed retailers on a regular and continual
22basis in this State must register those agents,
23representatives, or persons acting on its behalf with the
24State Commission.
25    Registration of agents, representatives, or persons acting
26on behalf of a manufacturer is fulfilled by submitting a form

 

 

SB3358- 37 -LRB103 38772 RPS 68909 b

1to the Commission. The form shall be developed by the
2Commission and shall include the name and address of the
3applicant, the name and address of the manufacturer he or she
4represents, the territory or areas assigned to sell to or
5discuss pricing terms of alcoholic liquor, and any other
6questions deemed appropriate and necessary. All statements in
7the forms required to be made by law or by rule shall be deemed
8material, and any person who knowingly misstates any material
9fact under oath in an application is guilty of a Class B
10misdemeanor. Fraud, misrepresentation, false statements,
11misleading statements, evasions, or suppression of material
12facts in the securing of a registration are grounds for
13suspension or revocation of the registration. The State
14Commission shall post a list of registered agents on the
15Commission's website.
16    (b) A distributor's license shall allow (i) the wholesale
17purchase and storage of alcoholic liquors and sale of
18alcoholic liquors to licensees in this State and to persons
19without the State, as may be permitted by law; (ii) the sale of
20beer, cider, mead, or any combination thereof to brewers,
21class 1 brewers, and class 2 brewers that, pursuant to
22subsection (e) of Section 6-4 of this Act, sell beer, cider,
23mead, or any combination thereof to non-licensees at their
24breweries; (iii) the sale of vermouth to class 1 craft
25distillers and class 2 craft distillers that, pursuant to
26subsection (e) of Section 6-4 of this Act, sell spirits,

 

 

SB3358- 38 -LRB103 38772 RPS 68909 b

1vermouth, or both spirits and vermouth to non-licensees at
2their distilleries; or (iv) as otherwise provided in this Act.
3No person licensed as a distributor shall be granted a
4non-resident dealer's license.
5    (c) An importing distributor's license may be issued to
6and held by those only who are duly licensed distributors,
7upon the filing of an application by a duly licensed
8distributor, with the Commission and the Commission shall,
9without the payment of any fee, immediately issue such
10importing distributor's license to the applicant, which shall
11allow the importation of alcoholic liquor by the licensee into
12this State from any point in the United States outside this
13State, and the purchase of alcoholic liquor in barrels, casks
14or other bulk containers and the bottling of such alcoholic
15liquors before resale thereof, but all bottles or containers
16so filled shall be sealed, labeled, stamped and otherwise made
17to comply with all provisions, rules and regulations governing
18manufacturers in the preparation and bottling of alcoholic
19liquors. The importing distributor's license shall permit such
20licensee to purchase alcoholic liquor from Illinois licensed
21non-resident dealers and foreign importers only. No person
22licensed as an importing distributor shall be granted a
23non-resident dealer's license.
24    (d) A retailer's license shall allow the licensee to sell
25and offer for sale at retail, only in the premises specified in
26the license, alcoholic liquor for use or consumption, but not

 

 

SB3358- 39 -LRB103 38772 RPS 68909 b

1for resale in any form. Except as provided in Section 6-16,
26-29, 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 transfer or ship alcoholic liquor to the purchaser
5for use or consumption subject to any applicable local law or
6ordinance. For the purposes of this Section, "shipping" means
7the movement of alcoholic liquor from a licensed retailer to a
8consumer via a common carrier. Except as provided in Section
96-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,
10remove, or restrict the ability of a holder of a retailer's
11license to deliver alcoholic liquor to the purchaser for use
12or consumption. The delivery shall be made only within 12
13hours from the time the alcoholic liquor leaves the licensed
14premises of the retailer for delivery. For the purposes of
15this Section, "delivery" means the movement of alcoholic
16liquor purchased from a licensed retailer to a consumer
17through the following methods:
18        (1) delivery within licensed retailer's parking lot,
19    including curbside, for pickup by the consumer;
20        (2) delivery by an owner, officer, director,
21    shareholder, or employee of the licensed retailer; or
22        (3) delivery by a third-party contractor, independent
23    contractor, or agent with whom the licensed retailer has
24    contracted to make deliveries of alcoholic liquors.
25    Under subsection (1), (2), or (3), delivery shall not
26include the use of common carriers.

 

 

SB3358- 40 -LRB103 38772 RPS 68909 b

1    Any retail license issued to a manufacturer shall only
2permit the manufacturer to sell beer at retail on the premises
3actually occupied by the manufacturer. For the purpose of
4further describing the type of business conducted at a retail
5licensed premises, a retailer's licensee may be designated by
6the State Commission as (i) an on premise consumption
7retailer, (ii) an off premise sale retailer, or (iii) a
8combined on premise consumption and off premise sale retailer.
9    Except for a municipality with a population of more than
101,000,000 inhabitants, a home rule unit may not regulate the
11delivery of alcoholic liquor inconsistent with this
12subsection. This paragraph is a limitation under subsection
13(i) of Section 6 of Article VII of the Illinois Constitution on
14the concurrent exercise by home rule units of powers and
15functions exercised by the State. A non-home rule municipality
16may not regulate the delivery of alcoholic liquor inconsistent
17with this subsection.
18    Notwithstanding any other provision of this subsection
19(d), a retail licensee may sell alcoholic liquors to a special
20event retailer licensee for resale to the extent permitted
21under subsection (e).
22    (e) A special event retailer's license (not-for-profit)
23shall permit the licensee to purchase alcoholic liquors from
24an Illinois licensed distributor (unless the licensee
25purchases less than $500 of alcoholic liquors for the special
26event, in which case the licensee may purchase the alcoholic

 

 

SB3358- 41 -LRB103 38772 RPS 68909 b

1liquors from a licensed retailer) and shall allow the licensee
2to sell and offer for sale, at retail, alcoholic liquors for
3use or consumption, but not for resale in any form and only at
4the location and on the specific dates designated for the
5special event in the license. An applicant for a special event
6retailer license must (i) furnish with the application: (A) a
7resale number issued under Section 2c of the Retailers'
8Occupation Tax Act or evidence that the applicant is
9registered under Section 2a of the Retailers' Occupation Tax
10Act, (B) a current, valid exemption identification number
11issued under Section 1g of the Retailers' Occupation Tax Act,
12and a certification to the Commission that the purchase of
13alcoholic liquors will be a tax-exempt purchase, or (C) a
14statement that the applicant is not registered under Section
152a of the Retailers' Occupation Tax Act, does not hold a resale
16number under Section 2c of the Retailers' Occupation Tax Act,
17and does not hold an exemption number under Section 1g of the
18Retailers' Occupation Tax Act, in which event the Commission
19shall set forth on the special event retailer's license a
20statement to that effect; (ii) submit with the application
21proof satisfactory to the State Commission that the applicant
22will provide dram shop liability insurance in the maximum
23limits; and (iii) show proof satisfactory to the State
24Commission that the applicant has obtained local authority
25approval.
26    Nothing in this Act prohibits an Illinois licensed

 

 

SB3358- 42 -LRB103 38772 RPS 68909 b

1distributor from offering credit or a refund for unused,
2salable alcoholic liquors to a holder of a special event
3retailer's license or the special event retailer's licensee
4from accepting the credit or refund of alcoholic liquors at
5the conclusion of the event specified in the license.
6    (f) A railroad license shall permit the licensee to import
7alcoholic liquors into this State from any point in the United
8States outside this State and to store such alcoholic liquors
9in this State; to make wholesale purchases of alcoholic
10liquors directly from manufacturers, foreign importers,
11distributors and importing distributors from within or outside
12this State; and to store such alcoholic liquors in this State;
13provided that the above powers may be exercised only in
14connection with the importation, purchase or storage of
15alcoholic liquors to be sold or dispensed on a club, buffet,
16lounge or dining car operated on an electric, gas or steam
17railway in this State; and provided further, that railroad
18licensees exercising the above powers shall be subject to all
19provisions of Article VIII of this Act as applied to importing
20distributors. A railroad license shall also permit the
21licensee to sell or dispense alcoholic liquors on any club,
22buffet, lounge or dining car operated on an electric, gas or
23steam railway regularly operated by a common carrier in this
24State, but shall not permit the sale for resale of any
25alcoholic liquors to any licensee within this State. A license
26shall be obtained for each car in which such sales are made.

 

 

SB3358- 43 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 44 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 45 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 46 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 47 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 48 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 49 -LRB103 38772 RPS 68909 b

1premises that is wholly owned and operated by the same
2licensee to importing distributors, distributors, and to
3non-licensees for use and consumption, (iii) store the beer
4upon the premises, (iv) sell and offer for sale at retail from
5the licensed premises for off-premises consumption no more
6than 155,000 gallons per year so long as such sales are only
7made in-person, (v) sell and offer for sale at retail for use
8and consumption on the premises specified in the license any
9form of alcoholic liquor purchased from a licensed distributor
10or importing distributor, (vi) with the prior approval of the
11Commission, annually transfer no more than 155,000 gallons of
12beer manufactured on the premises to a licensed brew pub
13wholly owned and operated by the same licensee, and (vii)
14notwithstanding item (i) of this subsection, brew pubs wholly
15owned and operated by the same licensee may combine each
16location's production limit of 155,000 gallons of beer per
17year and allocate the aggregate total between the wholly
18owned, operated, and licensed locations.
19    A brew pub licensee shall not under any circumstance sell
20or offer for sale beer manufactured by the brew pub licensee to
21retail licensees.
22    A person who holds a class 2 brewer license may
23simultaneously hold a brew pub license if the class 2 brewer
24(i) does not, under any circumstance, sell or offer for sale
25beer manufactured by the class 2 brewer to retail licensees;
26(ii) does not hold more than 3 brew pub licenses in this State;

 

 

SB3358- 50 -LRB103 38772 RPS 68909 b

1(iii) does not manufacture more than a combined 3,720,000
2gallons of beer per year, including the beer manufactured at
3the brew pub; and (iv) is not a member of or affiliated with,
4directly or indirectly, a manufacturer that produces more than
53,720,000 gallons of beer per year or any other alcoholic
6liquor.
7    Notwithstanding any other provision of this Act, a
8licensed brewer, class 2 brewer, or non-resident dealer who
9before July 1, 2015 manufactured less than 3,720,000 gallons
10of beer per year and held a brew pub license on or before July
111, 2015 may (i) continue to qualify for and hold that brew pub
12license for the licensed premises and (ii) manufacture more
13than 3,720,000 gallons of beer per year and continue to
14qualify for and hold that brew pub license if that brewer,
15class 2 brewer, or non-resident dealer does not simultaneously
16hold a class 1 brewer license and is not a member of or
17affiliated with, directly or indirectly, a manufacturer that
18produces more than 3,720,000 gallons of beer per year or that
19produces any other alcoholic liquor.
20    A brew pub licensee may apply for a class 3 brewer license
21and, upon meeting all applicable qualifications of this Act
22and relinquishing all commonly owned brew pub or retail
23licenses, shall be issued a class 3 brewer license. Nothing in
24this Act shall prohibit the issuance of a class 3 brewer
25license if the applicant:
26        (1) has a valid retail license on or before May 1,

 

 

SB3358- 51 -LRB103 38772 RPS 68909 b

1    2021;
2        (2) has an ownership interest in at least two brew
3    pubs licenses on or before May 1, 2021;
4        (3) the brew pub licensee applies for a class 3 brewer
5    license on or before October 1, 2022 and relinquishes all
6    commonly owned brew pub licenses; and
7        (4) relinquishes all commonly owned retail licenses on
8    or before December 31, 2022.
9    If a brew pub licensee is issued a class 3 brewer license,
10the class 3 brewer license shall expire on the same date as the
11existing brew pub license and the State Commission shall not
12require a class 3 brewer licensee to obtain a brewer license,
13or in the alternative to pay a fee for a brewer license, until
14the date the brew pub license of the applicant would have
15expired.
16    (o) A caterer retailer license shall allow the holder to
17serve alcoholic liquors as an incidental part of a food
18service that serves prepared meals which excludes the serving
19of snacks as the primary meal, either on or off-site whether
20licensed or unlicensed. A caterer retailer license shall allow
21the holder, a distributor, or an importing distributor to
22transfer any inventory to and from the holder's retail
23premises and shall allow the holder to purchase alcoholic
24liquor from a distributor or importing distributor to be
25delivered directly to an off-site event.
26    Nothing in this Act prohibits a distributor or importing

 

 

SB3358- 52 -LRB103 38772 RPS 68909 b

1distributor from offering credit or a refund for unused,
2salable beer to a holder of a caterer retailer license or a
3caterer retailer licensee from accepting a credit or refund
4for unused, salable beer, in the event an act of God is the
5sole reason an off-site event is cancelled and if: (i) the
6holder of a caterer retailer license has not transferred
7alcoholic liquor from its caterer retailer premises to an
8off-site location; (ii) the distributor or importing
9distributor offers the credit or refund for the unused,
10salable beer that it delivered to the off-site premises and
11not for any unused, salable beer that the distributor or
12importing distributor delivered to the caterer retailer's
13premises; and (iii) the unused, salable beer would likely
14spoil if transferred to the caterer retailer's premises. A
15caterer retailer license shall allow the holder to transfer
16any inventory from any off-site location to its caterer
17retailer premises at the conclusion of an off-site event or
18engage a distributor or importing distributor to transfer any
19inventory from any off-site location to its caterer retailer
20premises at the conclusion of an off-site event, provided that
21the distributor or importing distributor issues bona fide
22charges to the caterer retailer licensee for fuel, labor, and
23delivery and the distributor or importing distributor collects
24payment from the caterer retailer licensee prior to the
25distributor or importing distributor transferring inventory to
26the caterer retailer premises.

 

 

SB3358- 53 -LRB103 38772 RPS 68909 b

1    For purposes of this subsection (o), an "act of God" means
2an unforeseeable event, such as a rain or snow storm, hail, a
3flood, or a similar event, that is the sole cause of the
4cancellation of an off-site, outdoor event.
5    (p) An auction liquor license shall allow the licensee to
6sell and offer for sale at auction wine and spirits for use or
7consumption, or for resale by an Illinois liquor licensee in
8accordance with provisions of this Act. An auction liquor
9license will be issued to a person and it will permit the
10auction liquor licensee to hold the auction anywhere in the
11State. An auction liquor license must be obtained for each
12auction at least 14 days in advance of the auction date.
13    (q) A special use permit license shall allow an Illinois
14licensed retailer to transfer a portion of its alcoholic
15liquor inventory from its retail licensed premises to the
16premises specified in the license hereby created; to purchase
17alcoholic liquor from a distributor or importing distributor
18to be delivered directly to the location specified in the
19license hereby created; and to sell or offer for sale at
20retail, only in the premises specified in the license hereby
21created, the transferred or delivered alcoholic liquor for use
22or consumption, but not for resale in any form. A special use
23permit license may be granted for the following time periods:
24one day or less; 2 or more days to a maximum of 15 days per
25location in any 12-month period. An applicant for the special
26use permit license must also submit with the application proof

 

 

SB3358- 54 -LRB103 38772 RPS 68909 b

1satisfactory to the State Commission that the applicant will
2provide dram shop liability insurance to the maximum limits
3and have local authority approval.
4    A special use permit license shall allow the holder to
5transfer any inventory from the holder's special use premises
6to its retail premises at the conclusion of the special use
7event or engage a distributor or importing distributor to
8transfer any inventory from the holder's special use premises
9to its retail premises at the conclusion of an off-site event,
10provided that the distributor or importing distributor issues
11bona fide charges to the special use permit licensee for fuel,
12labor, and delivery and the distributor or importing
13distributor collects payment from the retail licensee prior to
14the distributor or importing distributor transferring
15inventory to the retail premises.
16    Nothing in this Act prohibits a distributor or importing
17distributor from offering credit or a refund for unused,
18salable beer to a special use permit licensee or a special use
19permit licensee from accepting a credit or refund for unused,
20salable beer at the conclusion of the event specified in the
21license if: (i) the holder of the special use permit license
22has not transferred alcoholic liquor from its retail licensed
23premises to the premises specified in the special use permit
24license; (ii) the distributor or importing distributor offers
25the credit or refund for the unused, salable beer that it
26delivered to the premises specified in the special use permit

 

 

SB3358- 55 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 56 -LRB103 38772 RPS 68909 b

1the Department of Revenue and the Commission to conduct audits
2for the purpose of ensuring compliance with Public Act 95-634,
3and an acknowledgement that the wine manufacturer is in
4compliance with Section 6-2 of this Act. Any third party,
5except for a common carrier, authorized to ship wine on behalf
6of a first-class or second-class wine manufacturer's licensee,
7a first-class or second-class wine-maker's licensee, a limited
8wine manufacturer's licensee, or a person who is licensed to
9make wine under the laws of another state shall also be
10disclosed by the winery shipper's licensee, and a copy of the
11written appointment of the third-party wine provider, except
12for a common carrier, to the wine manufacturer shall be filed
13with the State Commission as a supplement to the winery
14shipper's license application or any renewal thereof. The
15winery shipper's license holder shall affirm under penalty of
16perjury, as part of the winery shipper's license application
17or renewal, that he or she only ships wine, either directly or
18indirectly through a third-party provider, from the licensee's
19own production.
20    Except for a common carrier, a third-party provider
21shipping wine on behalf of a winery shipper's license holder
22is the agent of the winery shipper's license holder and, as
23such, a winery shipper's license holder is responsible for the
24acts and omissions of the third-party provider acting on
25behalf of the license holder. A third-party provider, except
26for a common carrier, that engages in shipping wine into

 

 

SB3358- 57 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 58 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 59 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 60 -LRB103 38772 RPS 68909 b

1license hereby created and to conduct a sampling, only in the
2premises specified in the license hereby created, of the
3transferred alcoholic liquor in accordance with subsection (c)
4of Section 6-31 of this Act. The transferred alcoholic liquor
5may not be sold or resold in any form. An applicant for the
6craft distiller tasting permit license must also submit with
7the application proof satisfactory to the State Commission
8that the applicant will provide dram shop liability insurance
9to the maximum limits and have local authority approval.
10    (t) A brewer warehouse permit may be issued to the holder
11of a class 1 brewer license or a class 2 brewer license. If the
12holder of the permit is a class 1 brewer licensee, the brewer
13warehouse permit shall allow the holder to store or warehouse
14up to 930,000 gallons of tax-determined beer manufactured by
15the holder of the permit at the premises specified on the
16permit. If the holder of the permit is a class 2 brewer
17licensee, the brewer warehouse permit shall allow the holder
18to store or warehouse up to 3,720,000 gallons of
19tax-determined beer manufactured by the holder of the permit
20at the premises specified on the permit. Sales to
21non-licensees are prohibited at the premises specified in the
22brewer warehouse permit.
23    (u) A distilling pub license shall allow the licensee to
24only (i) manufacture up to 5,000 gallons of spirits per year
25only on the premises specified in the license, (ii) make sales
26of the spirits manufactured on the premises or, with the

 

 

SB3358- 61 -LRB103 38772 RPS 68909 b

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

 

 

SB3358- 62 -LRB103 38772 RPS 68909 b

1pub; and (iv) is not a member of or affiliated with, directly
2or indirectly, a manufacturer that produces more than 100,000
3gallons of spirits per year or any other alcoholic liquor.
4    (v) A craft distiller warehouse permit may be issued to
5the holder of a class 1 craft distiller or class 2 craft
6distiller license. The craft distiller warehouse permit shall
7allow the holder to store or warehouse up to 500,000 gallons of
8spirits manufactured by the holder of the permit at the
9premises specified on the permit. Sales to non-licensees are
10prohibited at the premises specified in the craft distiller
11warehouse permit.
12    (w) A beer showcase permit license shall allow an
13Illinois-licensed distributor to transfer a portion of its
14beer inventory from its licensed premises to the premises
15specified in the beer showcase permit license, and, in the
16case of a class 3 brewer, transfer only beer the class 3 brewer
17manufactures from its licensed premises to the premises
18specified in the beer showcase permit license; and to sell or
19offer for sale at retail, only in the premises specified in the
20beer showcase permit license, the transferred or delivered
21beer for on or off premise consumption, but not for resale in
22any form and to sell to non-licensees not more than 96 fluid
23ounces of beer per person. A beer showcase permit license may
24be granted for the following time periods: one day or less; or
252 or more days to a maximum of 15 days per location in any
2612-month period. An applicant for a beer showcase permit

 

 

SB3358- 63 -LRB103 38772 RPS 68909 b

1license must also submit with the application proof
2satisfactory to the State Commission that the applicant will
3provide dram shop liability insurance to the maximum limits
4and have local authority approval. The State Commission shall
5require the beer showcase applicant to comply with Section
66-27.1.
7    (x) A distillery shipper's license shall allow a person
8with an Illinois distiller license, a craft distiller license,
9a class 1 craft distiller license, or a class 2 craft distiller
10license or who is licensed to make spirits under the laws of
11another state to ship spirits directly to a resident of this
12State who is 21 years of age or older for that resident's
13personal use and not for resale. Prior to receiving a
14distillery shipper's license, an applicant for the license
15must provide the State Commission with a true copy of its
16current license in any state in which it is licensed as a
17distiller. An applicant for a distillery shipper's license
18must also complete an application form that provides any other
19information the State Commission deems necessary. The
20application form shall include an acknowledgement consenting
21to the jurisdiction of the State Commission, the Illinois
22Department of Revenue, and the courts of this State concerning
23the enforcement of this Act and any related laws, rules, and
24regulations, including authorizing the Illinois Department of
25Revenue and the State Commission to conduct audits for the
26purpose of ensuring compliance with this amendatory Act of the

 

 

SB3358- 64 -LRB103 38772 RPS 68909 b

1103rd General Assembly.
2    A distillery shipper's licensee must pay to the Illinois
3Department of Revenue the State liquor gallonage tax under
4Section 8-1 for all spirits that are sold by the licensee and
5shipped to a person in this State. For the purposes of Section
68-1, an out-of-state distillery shipper's licensee shall be
7taxed in the same manner as a manufacturer of spirits. A
8licensee who is not otherwise required to register under the
9Retailers' Occupation Tax Act must register under the Use Tax
10Act to collect and remit use tax to the Illinois Department of
11Revenue for all gallons of spirits that are sold by the
12licensee and shipped to persons in this State. If a licensee
13fails to remit the tax imposed under this Act in accordance
14with the provisions of Article VIII of this Act, the
15distillery shipper's license shall be revoked in accordance
16with the provisions of Article VII of this Act. If a licensee
17fails to properly register and remit tax under the Use Tax Act
18or the Retailers' Occupation Tax Act for all spirits that is
19sold by the distillery shipper and shipped to persons in this
20State, the distillery shipper's license shall be revoked in
21accordance with the provisions of Article VII of this Act.
22    A distillery shipper's licensee must collect, maintain,
23and submit to the State Commission on a semi-annual basis the
24total gallons of spirits per resident shipped to residents of
25this State. A distillery shipper licensed under this
26subsection must comply with the requirements of Section

 

 

SB3358- 65 -LRB103 38772 RPS 68909 b

16-29.05 of this Act. Pursuant to paragraph (5.1) or (5.3) of
2subsection (a) of Section 3-12, the State Commission may
3receive, respond to, and investigate any complaint and impose
4any of the remedies specified in paragraph (1) of subsection
5(a) of Section 3-12.
6    Except as provided in Section 6-16, 6-29, or 6-29.05,
7nothing in this Act shall deny, limit, remove, or restrict the
8ability of a holder of a distilling pub license to transfer or
9ship alcoholic liquor it produces to the purchaser for use or
10consumption subject to any applicable local law or ordinance.
11Except as provided in Section 6-16, 6-29, or 6-29.05, nothing
12in this Act shall limit, remove, or restrict the ability of a
13holder of a distilling pub license to deliver alcoholic liquor
14to the purchaser for use or consumption. The delivery shall be
15made only within 12 hours after the alcoholic liquor leaves
16the licensed premises of the distilling pub for delivery.
17    For the purposes of this subsection, "delivery" means the
18movement of alcoholic liquor purchased from a licensed
19distilling pub to the consumer through the following methods:
20        (1) delivery within the licensed distilling pub
21    parking lot, including curbside, for pickup by the
22    consumer;
23        (2) delivery by an owner, officer, director,
24    shareholder, or employee of the licensed distilling pub;
25    or
26        (3) delivery by a third-party contractor, independent

 

 

SB3358- 66 -LRB103 38772 RPS 68909 b

1    contractor, or agent with whom the licensed distilling pub
2    has contracted to make deliveries of alcoholic liquors.
3    Under paragraphs (1), (2), or (3) of this subsection,
4"delivery" does not include common carriers.
5    For the purposes of this subsection, "ship" means to move
6alcoholic liquor from a licensed distilling pub to a consumer
7via a common carrier.
8    Except for a municipality with a population of more than
91,000,000 inhabitants, a home rule unit may not regulate the
10delivery of alcoholic liquor in a manner inconsistent with
11this subsection. This paragraph is a limitation under
12subsection (i) of Section 6 of Article VII of the Illinois
13Constitution on the concurrent exercise by home rule units of
14powers and functions exercised by the State.
15(Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19;
16101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff.
178-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22;
18102-442, eff. 8-20-21; 102-1142, eff. 2-17-23.)
 
19    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
20    Sec. 5-3. License fees. Except as otherwise provided
21herein, at the time application is made to the State
22Commission for a license of any class, the applicant shall pay
23to the State Commission the fee hereinafter provided for the
24kind of license applied for.
25    The fee for licenses issued by the State Commission shall

 

 

SB3358- 67 -LRB103 38772 RPS 68909 b

1be as follows:
2OnlineInitial
3renewallicense
4 or
5 non-online
6 renewal
7    For a manufacturer's license:
8    Class 1. Distiller .................$4,000$5,000
9    Class 2. Rectifier .................4,000 5,000
10    Class 3. Brewer ....................1,200 1,500
11    Class 4. First-class Wine
12        Manufacturer ...................750900
13    Class 5. Second-class
14        Wine Manufacturer ..............1,500 1,750
15    Class 6. First-class wine-maker ....750 900
16    Class 7. Second-class wine-maker ...1,500 1,750
17    Class 8. Limited Wine
18        Manufacturer....................250 350
19    Class 9. Craft Distiller............ 2,000 2,500
20    Class 10. Class 1 Craft Distiller... 50 75
21    Class 11. Class 2 Craft Distiller... 75 100
22    Class 12. Class 1 Brewer............50 75
23    Class 13. Class 2 Brewer............ 75 100
24    Class 14. Class 3 Brewer............ 25 50
25    For a Brew Pub License..............1,2001,500
26    For a Distilling Pub License........ 1,200 1,500

 

 

SB3358- 68 -LRB103 38772 RPS 68909 b

1    For a caterer retailer's license....350 500
2    For a foreign importer's license ...25 25
3    For an importing distributor's
4        license.........................2525
5    For a distributor's license
6        (11,250,000 gallons
7        or over)........................1,4502,200
8    For a distributor's license
9        (over 4,500,000 gallons, but
10        under 11,250,000 gallons)....... 9501,450
11    For a distributor's license
12        (4,500,000 gallons or under)....300450
13    For a non-resident dealer's license
14        (500,000 gallons or over)
15        or with self-distribution
16        privileges .....................1,200 1,500
17    For a non-resident dealer's license
18        (under 500,000 gallons) ........250 350
19    For a wine-maker's premises
20        license ........................250500
21    For a winery shipper's license
22        (under 250,000 gallons).........200 350
23    For a winery shipper's license
24        (250,000 or over, but
25        under 500,000 gallons)..........7501,000
26    For a winery shipper's license

 

 

SB3358- 69 -LRB103 38772 RPS 68909 b

1        (500,000 gallons or over).......1,200 1,500
2    For a distillery shipper's license
3        (under 100,000 gallons).200350
4    For a distillery shipper's license
5        (100,000 gallons or over).1,2001,500
6    For a wine-maker's premises
7        license, second location .......500 1,000
8    For a wine-maker's premises
9        license, third location ........5001,000
10    For a retailer's license ...........600 750
11    For a special event retailer's
12        license, (not-for-profit) ......25 25
13    For a beer showcase permit,
14        one day only ................... 100 150
15        2 days or more ................. 150 250
16    For a special use permit license,
17        one day only ...................100 150
18        2 days or more .................150 250
19    For a railroad license .............100 150
20    For a boat license .................500 1,000
21    For an airplane license, times the
22        licensee's maximum number of
23        aircraft in flight, serving
24        liquor over the State at any
25        given time, which either
26        originate, terminate, or make

 

 

SB3358- 70 -LRB103 38772 RPS 68909 b

1        an intermediate stop in
2        the State.......................100150
3    For a non-beverage user's license:
4        Class 1 ........................2424
5        Class 2 ........................6060
6        Class 3 ........................120120
7        Class 4 ........................240240
8        Class 5 ........................600600
9    For a broker's license .............750 1,000
10    For an auction liquor license ......100 150
11    For a homebrewer special
12        event permit....................2525
13    For a craft distiller
14        tasting permit..................25 25
15    For a BASSET trainer license........ 300 350
16    For a tasting representative
17        license.........................200300
18    For a brewer warehouse permit....... 2525
19    For a craft distiller
20        warehouse permit................25 25
21    Fees collected under this Section shall be paid into the
22Dram Shop Fund. The State Commission shall waive license
23renewal fees for those retailers' licenses that are designated
24as "1A" by the State Commission and expire on or after July 1,
252022, and on or before June 30, 2023. One-half of the funds
26received for a retailer's license shall be paid into the Dram

 

 

SB3358- 71 -LRB103 38772 RPS 68909 b

1Shop Fund and one-half of the funds received for a retailer's
2license shall be paid into the General Revenue Fund.
3    No fee shall be paid for licenses issued by the State
4Commission to the following non-beverage users:
5        (a) Hospitals, sanitariums, or clinics when their use
6    of alcoholic liquor is exclusively medicinal, mechanical,
7    or scientific.
8        (b) Universities, colleges of learning, or schools
9    when their use of alcoholic liquor is exclusively
10    medicinal, mechanical, or scientific.
11        (c) Laboratories when their use is exclusively for the
12    purpose of scientific research.
13(Source: P.A. 102-442, eff. 8-20-21; 102-558, eff. 8-20-21;
14102-699, eff. 4-19-22; 102-1142, eff. 2-17-23; 103-154, eff.
156-30-23; revised 9-5-23.)
 
16    (235 ILCS 5/6-29.05 new)
17    Sec. 6-29.05. Distillery shipper's license.
18    (a) The General Assembly declares that the following is
19the intent of this Section:
20        (1) To authorize direct shipment of spirits by an
21    out-of-state distiller on the same basis permitted an
22    in-state distiller, an in-state craft distiller, an
23    in-state class 1 craft distiller, and an in-state class 2
24    craft distiller pursuant to the authority of the State
25    under the provisions of Section 2 of the Twenty-First

 

 

SB3358- 72 -LRB103 38772 RPS 68909 b

1    Amendment to the United States Constitution and in
2    conformance with the United States Supreme Court decision
3    decided on May 16, 2005 in Granholm v. Heald.
4        (2) To reaffirm that the General Assembly's findings
5    and declarations that selling alcoholic liquor through
6    various direct marketing means, such as catalogs,
7    newspapers, mailings, and the Internet, directly to
8    consumers of this State poses a serious threat to the
9    State's efforts to further temperance and prevent youth
10    from accessing alcoholic liquor and the expansion of youth
11    access to additional types of alcoholic liquors.
12        (3) To maintain the State's broad powers granted by
13    Section 2 of the Twenty-First Amendment to the United
14    States Constitution to control the importation or sale of
15    alcoholic liquor and its right to structure its alcoholic
16    liquor distribution system.
17        (4) To ensure that the General Assembly, by
18    authorizing limited direct shipment of spirits to meet the
19    directives of the United States Supreme Court, does not
20    intend to impair or modify the State's distribution of
21    spirits through distributors or importing distributors,
22    but only to permit limited shipment of spirits for
23    personal use.
24        (5) To provide that if a court of competent
25    jurisdiction declares or finds that this Section, which is
26    enacted to conform Illinois law to the United States

 

 

SB3358- 73 -LRB103 38772 RPS 68909 b

1    Supreme Court decision, is invalid or unconstitutional,
2    the Illinois General Assembly at its earliest general
3    session shall conduct hearings and study methods to
4    conform to any directive or order of the court consistent
5    with the temperance and revenue collection purposes of
6    this Act.
7    (b) Notwithstanding any other provision of law, a
8distillery shipper's licensee may ship, for personal use and
9not for resale, not more than 12 cases of spirits per year to
10any resident of this State who is 21 years of age or older.
11    (c) Notwithstanding any other provision of law, sale and
12shipment by a distillery shipper's licensee pursuant to this
13Section shall be deemed to constitute a sale in this State.
14    (d) The shipping container of any spirit shipped under
15this Section shall be clearly labeled with the following
16words: "CONTAINS ALCOHOL. SIGNATURE OF A PERSON 21 YEARS OF
17AGE OR OLDER REQUIRED FOR DELIVERY. PROOF OF AGE AND IDENTITY
18MUST BE SHOWN BEFORE DELIVERY.". This warning must be
19prominently displayed on the packaging. A licensee shall
20require the transporter or common carrier that delivers the
21spirits to obtain the signature of a person 21 years of age or
22older at the delivery address at the time of delivery. At the
23expense of the licensee, the licensee shall receive a delivery
24confirmation from the express company, common carrier, or
25contract carrier indicating the location of the delivery, time
26of delivery, and the name and signature of the individual 21

 

 

SB3358- 74 -LRB103 38772 RPS 68909 b

1years of age or older who accepts delivery. The State
2Commission may design and create a label or approve a label
3that must be affixed to the shipping container by the
4licensee.
5    (e) No broker within this State shall solicit consumers to
6engage in direct spirit shipments under this Section.
7    (f) It is not the intent of this Section to impair the
8distribution of spirits through distributors or importing
9distributors, but only to permit shipments of spirits for
10personal use.