SB3095 EngrossedLRB099 20651 RPS 45255 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 Alcoholism and Other Drug Abuse and
5Dependency Act is amended by changing Section 10-15 as follows:
 
6    (20 ILCS 301/10-15)
7    Sec. 10-15. Qualification and appointment of members. The
8membership of the Illinois Advisory Council shall consist of:
9        (a) A State's Attorney designated by the President of
10    the Illinois State's Attorneys Association.
11        (b) A judge designated by the Chief Justice of the
12    Illinois Supreme Court.
13        (c) A Public Defender appointed by the President of the
14    Illinois Public Defenders Association.
15        (d) A local law enforcement officer appointed by the
16    Governor.
17        (e) A labor representative appointed by the Governor.
18        (f) An educator appointed by the Governor.
19        (g) A physician licensed to practice medicine in all
20    its branches appointed by the Governor with due regard for
21    the appointee's knowledge of the field of alcoholism and
22    other drug abuse and dependency.
23        (h) 4 members of the Illinois House of Representatives,

 

 

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1    2 each appointed by the Speaker and Minority Leader.
2        (i) 4 members of the Illinois Senate, 2 each appointed
3    by the President and Minority Leader.
4        (j) The President of the Illinois Alcoholism and Drug
5    Dependence Association.
6        (k) An advocate for the needs of youth appointed by the
7    Governor.
8        (l) The President of the Illinois State Medical Society
9    or his or her designee.
10        (m) The President of the Illinois Hospital Association
11    or his or her designee.
12        (n) The President of the Illinois Nurses Association or
13    a registered nurse designated by the President.
14        (o) The President of the Illinois Pharmacists
15    Association or a licensed pharmacist designated by the
16    President.
17        (p) The President of the Illinois Chapter of the
18    Association of Labor Management Administrators and
19    Consultants on Alcoholism.
20        (p-1) The President of the Community Behavioral
21    Healthcare Association of Illinois or his or her designee.
22        (q) The Attorney General or his or her designee.
23        (r) The State Comptroller or his or her designee.
24        (s) 20 public members, 8 appointed by the Governor, 3
25    of whom shall be representatives of alcoholism or other
26    drug abuse and dependency treatment programs and one of

 

 

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1    whom shall be a representative of a manufacturer or
2    importing distributor of alcoholic liquor licensed by the
3    State of Illinois, and 3 public members appointed by each
4    of the President and Minority Leader of the Senate and the
5    Speaker and Minority Leader of the House.
6        (t) The Director, Secretary, or other chief
7    administrative officer, ex officio, or his or her designee,
8    of each of the following: the Department on Aging, the
9    Department of Children and Family Services, the Department
10    of Corrections, the Department of Juvenile Justice, the
11    Department of Healthcare and Family Services, the
12    Department of Revenue, the Department of Public Health, the
13    Department of Financial and Professional Regulation, the
14    Department of State Police, the Administrative Office of
15    the Illinois Courts, the Criminal Justice Information
16    Authority, and the Department of Transportation.
17        (u) Each of the following, ex officio, or his or her
18    designee: the Secretary of State, the State Superintendent
19    of Education, and the Chairman of the Board of Higher
20    Education.
21    The public members may not be officers or employees of the
22executive branch of State government; however, the public
23members may be officers or employees of a State college or
24university or of any law enforcement agency. In appointing
25members, due consideration shall be given to the experience of
26appointees in the fields of medicine, law, prevention,

 

 

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1correctional activities, and social welfare. Vacancies in the
2public membership shall be filled for the unexpired term by
3appointment in like manner as for original appointments, and
4the appointive members shall serve until their successors are
5appointed and have qualified. Vacancies among the public
6members appointed by the legislative leaders shall be filled by
7the leader of the same house and of the same political party as
8the leader who originally appointed the member.
9    Each non-appointive member may designate a representative
10to serve in his place by written notice to the Department. All
11General Assembly members shall serve until their respective
12successors are appointed or until termination of their
13legislative service, whichever occurs first. The terms of
14office for each of the members appointed by the Governor shall
15be for 3 years, except that of the members first appointed, 3
16shall be appointed for a term of one year, and 4 shall be
17appointed for a term of 2 years. The terms of office of each of
18the public members appointed by the legislative leaders shall
19be for 2 years.
20(Source: P.A. 94-1033, eff. 7-1-07.)
 
21    Section 10. The Retailers' Occupation Tax Act is amended by
22changing Section 3 as follows:
 
23    (35 ILCS 120/3)  (from Ch. 120, par. 442)
24    Sec. 3. Except as provided in this Section, on or before

 

 

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1the twentieth day of each calendar month, every person engaged
2in the business of selling tangible personal property at retail
3in this State during the preceding calendar month shall file a
4return with the Department, stating:
5        1. The name of the seller;
6        2. His residence address and the address of his
7    principal place of business and the address of the
8    principal place of business (if that is a different
9    address) from which he engages in the business of selling
10    tangible personal property at retail in this State;
11        3. Total amount of receipts received by him during the
12    preceding calendar month or quarter, as the case may be,
13    from sales of tangible personal property, and from services
14    furnished, by him during such preceding calendar month or
15    quarter;
16        4. Total amount received by him during the preceding
17    calendar month or quarter on charge and time sales of
18    tangible personal property, and from services furnished,
19    by him prior to the month or quarter for which the return
20    is filed;
21        5. Deductions allowed by law;
22        6. Gross receipts which were received by him during the
23    preceding calendar month or quarter and upon the basis of
24    which the tax is imposed;
25        7. The amount of credit provided in Section 2d of this
26    Act;

 

 

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1        8. The amount of tax due;
2        9. The signature of the taxpayer; and
3        10. Such other reasonable information as the
4    Department may require.
5    If a taxpayer fails to sign a return within 30 days after
6the proper notice and demand for signature by the Department,
7the return shall be considered valid and any amount shown to be
8due on the return shall be deemed assessed.
9    Each return shall be accompanied by the statement of
10prepaid tax issued pursuant to Section 2e for which credit is
11claimed.
12    Prior to October 1, 2003, and on and after September 1,
132004 a retailer may accept a Manufacturer's Purchase Credit
14certification from a purchaser in satisfaction of Use Tax as
15provided in Section 3-85 of the Use Tax Act if the purchaser
16provides the appropriate documentation as required by Section
173-85 of the Use Tax Act. A Manufacturer's Purchase Credit
18certification, accepted by a retailer prior to October 1, 2003
19and on and after September 1, 2004 as provided in Section 3-85
20of the Use Tax Act, may be used by that retailer to satisfy
21Retailers' Occupation Tax liability in the amount claimed in
22the certification, not to exceed 6.25% of the receipts subject
23to tax from a qualifying purchase. A Manufacturer's Purchase
24Credit reported on any original or amended return filed under
25this Act after October 20, 2003 for reporting periods prior to
26September 1, 2004 shall be disallowed. Manufacturer's

 

 

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1Purchaser Credit reported on annual returns due on or after
2January 1, 2005 will be disallowed for periods prior to
3September 1, 2004. No Manufacturer's Purchase Credit may be
4used after September 30, 2003 through August 31, 2004 to
5satisfy any tax liability imposed under this Act, including any
6audit liability.
7    The Department may require returns to be filed on a
8quarterly basis. If so required, a return for each calendar
9quarter shall be filed on or before the twentieth day of the
10calendar month following the end of such calendar quarter. The
11taxpayer shall also file a return with the Department for each
12of the first two months of each calendar quarter, on or before
13the twentieth day of the following calendar month, stating:
14        1. The name of the seller;
15        2. The address of the principal place of business from
16    which he engages in the business of selling tangible
17    personal property at retail in this State;
18        3. The total amount of taxable receipts received by him
19    during the preceding calendar month from sales of tangible
20    personal property by him during such preceding calendar
21    month, including receipts from charge and time sales, but
22    less all deductions allowed by law;
23        4. The amount of credit provided in Section 2d of this
24    Act;
25        5. The amount of tax due; and
26        6. Such other reasonable information as the Department

 

 

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1    may require.
2    Beginning on October 1, 2003, any person who is not a
3licensed distributor, importing distributor, or manufacturer,
4as defined in the Liquor Control Act of 1934, but is engaged in
5the business of selling, at retail, alcoholic liquor shall file
6a statement with the Department of Revenue, in a format and at
7a time prescribed by the Department, showing the total amount
8paid for alcoholic liquor purchased during the preceding month
9and such other information as is reasonably required by the
10Department. The Department may adopt rules to require that this
11statement be filed in an electronic or telephonic format. Such
12rules may provide for exceptions from the filing requirements
13of this paragraph. For the purposes of this paragraph, the term
14"alcoholic liquor" shall have the meaning prescribed in the
15Liquor Control Act of 1934.
16    Beginning on October 1, 2003, every distributor, importing
17distributor, and manufacturer of alcoholic liquor as defined in
18the Liquor Control Act of 1934, shall file a statement with the
19Department of Revenue, no later than the 10th day of the month
20for the preceding month during which transactions occurred, by
21electronic means, showing the total amount of gross receipts
22from the sale of alcoholic liquor sold or distributed during
23the preceding month to purchasers; identifying the purchaser to
24whom it was sold or distributed; the purchaser's tax
25registration number; and such other information reasonably
26required by the Department. A distributor, importing

 

 

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1distributor, or manufacturer of alcoholic liquor must
2personally deliver, mail, or provide by electronic means to
3each retailer listed on the monthly statement a report
4containing a cumulative total of that distributor's, importing
5distributor's, or manufacturer's total sales of alcoholic
6liquor to that retailer no later than the 10th day of the month
7for the preceding month during which the transaction occurred.
8The distributor, importing distributor, or manufacturer shall
9notify the retailer as to the method by which the distributor,
10importing distributor, or manufacturer will provide the sales
11information. If the retailer is unable to receive the sales
12information by electronic means, the distributor, importing
13distributor, or manufacturer shall furnish the sales
14information by personal delivery or by mail. For purposes of
15this paragraph, the term "electronic means" includes, but is
16not limited to, the use of a secure Internet website, e-mail,
17or facsimile.
18    If a total amount of less than $1 is payable, refundable or
19creditable, such amount shall be disregarded if it is less than
2050 cents and shall be increased to $1 if it is 50 cents or more.
21    Beginning October 1, 1993, a taxpayer who has an average
22monthly tax liability of $150,000 or more shall make all
23payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 1994, a taxpayer who has
25an average monthly tax liability of $100,000 or more shall make
26all payments required by rules of the Department by electronic

 

 

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1funds transfer. Beginning October 1, 1995, a taxpayer who has
2an average monthly tax liability of $50,000 or more shall make
3all payments required by rules of the Department by electronic
4funds transfer. Beginning October 1, 2000, a taxpayer who has
5an annual tax liability of $200,000 or more shall make all
6payments required by rules of the Department by electronic
7funds transfer. The term "annual tax liability" shall be the
8sum of the taxpayer's liabilities under this Act, and under all
9other State and local occupation and use tax laws administered
10by the Department, for the immediately preceding calendar year.
11The term "average monthly tax liability" shall be the sum of
12the taxpayer's liabilities under this Act, and under all other
13State and local occupation and use tax laws administered by the
14Department, for the immediately preceding calendar year
15divided by 12. Beginning on October 1, 2002, a taxpayer who has
16a tax liability in the amount set forth in subsection (b) of
17Section 2505-210 of the Department of Revenue Law shall make
18all payments required by rules of the Department by electronic
19funds transfer.
20    Before August 1 of each year beginning in 1993, the
21Department shall notify all taxpayers required to make payments
22by electronic funds transfer. All taxpayers required to make
23payments by electronic funds transfer shall make those payments
24for a minimum of one year beginning on October 1.
25    Any taxpayer not required to make payments by electronic
26funds transfer may make payments by electronic funds transfer

 

 

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1with the permission of the Department.
2    All taxpayers required to make payment by electronic funds
3transfer and any taxpayers authorized to voluntarily make
4payments by electronic funds transfer shall make those payments
5in the manner authorized by the Department.
6    The Department shall adopt such rules as are necessary to
7effectuate a program of electronic funds transfer and the
8requirements of this Section.
9    Any amount which is required to be shown or reported on any
10return or other document under this Act shall, if such amount
11is not a whole-dollar amount, be increased to the nearest
12whole-dollar amount in any case where the fractional part of a
13dollar is 50 cents or more, and decreased to the nearest
14whole-dollar amount where the fractional part of a dollar is
15less than 50 cents.
16    If the retailer is otherwise required to file a monthly
17return and if the retailer's average monthly tax liability to
18the Department does not exceed $200, the Department may
19authorize his returns to be filed on a quarter annual basis,
20with the return for January, February and March of a given year
21being due by April 20 of such year; with the return for April,
22May and June of a given year being due by July 20 of such year;
23with the return for July, August and September of a given year
24being due by October 20 of such year, and with the return for
25October, November and December of a given year being due by
26January 20 of the following year.

 

 

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1    If the retailer is otherwise required to file a monthly or
2quarterly return and if the retailer's average monthly tax
3liability with the Department does not exceed $50, the
4Department may authorize his returns to be filed on an annual
5basis, with the return for a given year being due by January 20
6of the following year.
7    Such quarter annual and annual returns, as to form and
8substance, shall be subject to the same requirements as monthly
9returns.
10    Notwithstanding any other provision in this Act concerning
11the time within which a retailer may file his return, in the
12case of any retailer who ceases to engage in a kind of business
13which makes him responsible for filing returns under this Act,
14such retailer shall file a final return under this Act with the
15Department not more than one month after discontinuing such
16business.
17    Where the same person has more than one business registered
18with the Department under separate registrations under this
19Act, such person may not file each return that is due as a
20single return covering all such registered businesses, but
21shall file separate returns for each such registered business.
22    In addition, with respect to motor vehicles, watercraft,
23aircraft, and trailers that are required to be registered with
24an agency of this State, every retailer selling this kind of
25tangible personal property shall file, with the Department,
26upon a form to be prescribed and supplied by the Department, a

 

 

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1separate return for each such item of tangible personal
2property which the retailer sells, except that if, in the same
3transaction, (i) a retailer of aircraft, watercraft, motor
4vehicles or trailers transfers more than one aircraft,
5watercraft, motor vehicle or trailer to another aircraft,
6watercraft, motor vehicle retailer or trailer retailer for the
7purpose of resale or (ii) a retailer of aircraft, watercraft,
8motor vehicles, or trailers transfers more than one aircraft,
9watercraft, motor vehicle, or trailer to a purchaser for use as
10a qualifying rolling stock as provided in Section 2-5 of this
11Act, then that seller may report the transfer of all aircraft,
12watercraft, motor vehicles or trailers involved in that
13transaction to the Department on the same uniform
14invoice-transaction reporting return form. For purposes of
15this Section, "watercraft" means a Class 2, Class 3, or Class 4
16watercraft as defined in Section 3-2 of the Boat Registration
17and Safety Act, a personal watercraft, or any boat equipped
18with an inboard motor.
19    Any retailer who sells only motor vehicles, watercraft,
20aircraft, or trailers that are required to be registered with
21an agency of this State, so that all retailers' occupation tax
22liability is required to be reported, and is reported, on such
23transaction reporting returns and who is not otherwise required
24to file monthly or quarterly returns, need not file monthly or
25quarterly returns. However, those retailers shall be required
26to file returns on an annual basis.

 

 

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1    The transaction reporting return, in the case of motor
2vehicles or trailers that are required to be registered with an
3agency of this State, shall be the same document as the Uniform
4Invoice referred to in Section 5-402 of The Illinois Vehicle
5Code and must show the name and address of the seller; the name
6and address of the purchaser; the amount of the selling price
7including the amount allowed by the retailer for traded-in
8property, if any; the amount allowed by the retailer for the
9traded-in tangible personal property, if any, to the extent to
10which Section 1 of this Act allows an exemption for the value
11of traded-in property; the balance payable after deducting such
12trade-in allowance from the total selling price; the amount of
13tax due from the retailer with respect to such transaction; the
14amount of tax collected from the purchaser by the retailer on
15such transaction (or satisfactory evidence that such tax is not
16due in that particular instance, if that is claimed to be the
17fact); the place and date of the sale; a sufficient
18identification of the property sold; such other information as
19is required in Section 5-402 of The Illinois Vehicle Code, and
20such other information as the Department may reasonably
21require.
22    The transaction reporting return in the case of watercraft
23or aircraft must show the name and address of the seller; the
24name and address of the purchaser; the amount of the selling
25price including the amount allowed by the retailer for
26traded-in property, if any; the amount allowed by the retailer

 

 

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1for the traded-in tangible personal property, if any, to the
2extent to which Section 1 of this Act allows an exemption for
3the value of traded-in property; the balance payable after
4deducting such trade-in allowance from the total selling price;
5the amount of tax due from the retailer with respect to such
6transaction; the amount of tax collected from the purchaser by
7the retailer on such transaction (or satisfactory evidence that
8such tax is not due in that particular instance, if that is
9claimed to be the fact); the place and date of the sale, a
10sufficient identification of the property sold, and such other
11information as the Department may reasonably require.
12    Such transaction reporting return shall be filed not later
13than 20 days after the day of delivery of the item that is
14being sold, but may be filed by the retailer at any time sooner
15than that if he chooses to do so. The transaction reporting
16return and tax remittance or proof of exemption from the
17Illinois use tax may be transmitted to the Department by way of
18the State agency with which, or State officer with whom the
19tangible personal property must be titled or registered (if
20titling or registration is required) if the Department and such
21agency or State officer determine that this procedure will
22expedite the processing of applications for title or
23registration.
24    With each such transaction reporting return, the retailer
25shall remit the proper amount of tax due (or shall submit
26satisfactory evidence that the sale is not taxable if that is

 

 

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1the case), to the Department or its agents, whereupon the
2Department shall issue, in the purchaser's name, a use tax
3receipt (or a certificate of exemption if the Department is
4satisfied that the particular sale is tax exempt) which such
5purchaser may submit to the agency with which, or State officer
6with whom, he must title or register the tangible personal
7property that is involved (if titling or registration is
8required) in support of such purchaser's application for an
9Illinois certificate or other evidence of title or registration
10to such tangible personal property.
11    No retailer's failure or refusal to remit tax under this
12Act precludes a user, who has paid the proper tax to the
13retailer, from obtaining his certificate of title or other
14evidence of title or registration (if titling or registration
15is required) upon satisfying the Department that such user has
16paid the proper tax (if tax is due) to the retailer. The
17Department shall adopt appropriate rules to carry out the
18mandate of this paragraph.
19    If the user who would otherwise pay tax to the retailer
20wants the transaction reporting return filed and the payment of
21the tax or proof of exemption made to the Department before the
22retailer is willing to take these actions and such user has not
23paid the tax to the retailer, such user may certify to the fact
24of such delay by the retailer and may (upon the Department
25being satisfied of the truth of such certification) transmit
26the information required by the transaction reporting return

 

 

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1and the remittance for tax or proof of exemption directly to
2the Department and obtain his tax receipt or exemption
3determination, in which event the transaction reporting return
4and tax remittance (if a tax payment was required) shall be
5credited by the Department to the proper retailer's account
6with the Department, but without the 2.1% or 1.75% discount
7provided for in this Section being allowed. When the user pays
8the tax directly to the Department, he shall pay the tax in the
9same amount and in the same form in which it would be remitted
10if the tax had been remitted to the Department by the retailer.
11    Refunds made by the seller during the preceding return
12period to purchasers, on account of tangible personal property
13returned to the seller, shall be allowed as a deduction under
14subdivision 5 of his monthly or quarterly return, as the case
15may be, in case the seller had theretofore included the
16receipts from the sale of such tangible personal property in a
17return filed by him and had paid the tax imposed by this Act
18with respect to such receipts.
19    Where the seller is a corporation, the return filed on
20behalf of such corporation shall be signed by the president,
21vice-president, secretary or treasurer or by the properly
22accredited agent of such corporation.
23    Where the seller is a limited liability company, the return
24filed on behalf of the limited liability company shall be
25signed by a manager, member, or properly accredited agent of
26the limited liability company.

 

 

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1    Except as provided in this Section, the retailer filing the
2return under this Section shall, at the time of filing such
3return, pay to the Department the amount of tax imposed by this
4Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
5on and after January 1, 1990, or $5 per calendar year,
6whichever is greater, which is allowed to reimburse the
7retailer for the expenses incurred in keeping records,
8preparing and filing returns, remitting the tax and supplying
9data to the Department on request. Any prepayment made pursuant
10to Section 2d of this Act shall be included in the amount on
11which such 2.1% or 1.75% discount is computed. In the case of
12retailers who report and pay the tax on a transaction by
13transaction basis, as provided in this Section, such discount
14shall be taken with each such tax remittance instead of when
15such retailer files his periodic return. The Department may
16disallow the discount for retailers whose certificate of
17registration is revoked at the time the return is filed, but
18only if the Department's decision to revoke the certificate of
19registration has become final.
20    Before October 1, 2000, if the taxpayer's average monthly
21tax liability to the Department under this Act, the Use Tax
22Act, the Service Occupation Tax Act, and the Service Use Tax
23Act, excluding any liability for prepaid sales tax to be
24remitted in accordance with Section 2d of this Act, was $10,000
25or more during the preceding 4 complete calendar quarters, he
26shall file a return with the Department each month by the 20th

 

 

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1day of the month next following the month during which such tax
2liability is incurred and shall make payments to the Department
3on or before the 7th, 15th, 22nd and last day of the month
4during which such liability is incurred. On and after October
51, 2000, if the taxpayer's average monthly tax liability to the
6Department under this Act, the Use Tax Act, the Service
7Occupation Tax Act, and the Service Use Tax Act, excluding any
8liability for prepaid sales tax to be remitted in accordance
9with Section 2d of this Act, was $20,000 or more during the
10preceding 4 complete calendar quarters, he shall file a return
11with the Department each month by the 20th day of the month
12next following the month during which such tax liability is
13incurred and shall make payment to the Department on or before
14the 7th, 15th, 22nd and last day of the month during which such
15liability is incurred. If the month during which such tax
16liability is incurred began prior to January 1, 1985, each
17payment shall be in an amount equal to 1/4 of the taxpayer's
18actual liability for the month or an amount set by the
19Department not to exceed 1/4 of the average monthly liability
20of the taxpayer to the Department for the preceding 4 complete
21calendar quarters (excluding the month of highest liability and
22the month of lowest liability in such 4 quarter period). If the
23month during which such tax liability is incurred begins on or
24after January 1, 1985 and prior to January 1, 1987, each
25payment shall be in an amount equal to 22.5% of the taxpayer's
26actual liability for the month or 27.5% of the taxpayer's

 

 

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1liability for the same calendar month of the preceding year. If
2the month during which such tax liability is incurred begins on
3or after January 1, 1987 and prior to January 1, 1988, each
4payment shall be in an amount equal to 22.5% of the taxpayer's
5actual liability for the month or 26.25% of the taxpayer's
6liability for the same calendar month of the preceding year. If
7the month during which such tax liability is incurred begins on
8or after January 1, 1988, and prior to January 1, 1989, or
9begins on or after January 1, 1996, each payment shall be in an
10amount equal to 22.5% of the taxpayer's actual liability for
11the month or 25% of the taxpayer's liability for the same
12calendar month of the preceding year. If the month during which
13such tax liability is incurred begins on or after January 1,
141989, and prior to January 1, 1996, each payment shall be in an
15amount equal to 22.5% of the taxpayer's actual liability for
16the month or 25% of the taxpayer's liability for the same
17calendar month of the preceding year or 100% of the taxpayer's
18actual liability for the quarter monthly reporting period. The
19amount of such quarter monthly payments shall be credited
20against the final tax liability of the taxpayer's return for
21that month. Before October 1, 2000, once applicable, the
22requirement of the making of quarter monthly payments to the
23Department by taxpayers having an average monthly tax liability
24of $10,000 or more as determined in the manner provided above
25shall continue until such taxpayer's average monthly liability
26to the Department during the preceding 4 complete calendar

 

 

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1quarters (excluding the month of highest liability and the
2month of lowest liability) is less than $9,000, or until such
3taxpayer's average monthly liability to the Department as
4computed for each calendar quarter of the 4 preceding complete
5calendar quarter period is less than $10,000. However, if a
6taxpayer can show the Department that a substantial change in
7the taxpayer's business has occurred which causes the taxpayer
8to anticipate that his average monthly tax liability for the
9reasonably foreseeable future will fall below the $10,000
10threshold stated above, then such taxpayer may petition the
11Department for a change in such taxpayer's reporting status. On
12and after October 1, 2000, once applicable, the requirement of
13the making of quarter monthly payments to the Department by
14taxpayers having an average monthly tax liability of $20,000 or
15more as determined in the manner provided above shall continue
16until such taxpayer's average monthly liability to the
17Department during the preceding 4 complete calendar quarters
18(excluding the month of highest liability and the month of
19lowest liability) is less than $19,000 or until such taxpayer's
20average monthly liability to the Department as computed for
21each calendar quarter of the 4 preceding complete calendar
22quarter period is less than $20,000. However, if a taxpayer can
23show the Department that a substantial change in the taxpayer's
24business has occurred which causes the taxpayer to anticipate
25that his average monthly tax liability for the reasonably
26foreseeable future will fall below the $20,000 threshold stated

 

 

SB3095 Engrossed- 22 -LRB099 20651 RPS 45255 b

1above, then such taxpayer may petition the Department for a
2change in such taxpayer's reporting status. The Department
3shall change such taxpayer's reporting status unless it finds
4that such change is seasonal in nature and not likely to be
5long term. If any such quarter monthly payment is not paid at
6the time or in the amount required by this Section, then the
7taxpayer shall be liable for penalties and interest on the
8difference between the minimum amount due as a payment and the
9amount of such quarter monthly payment actually and timely
10paid, except insofar as the taxpayer has previously made
11payments for that month to the Department in excess of the
12minimum payments previously due as provided in this Section.
13The Department shall make reasonable rules and regulations to
14govern the quarter monthly payment amount and quarter monthly
15payment dates for taxpayers who file on other than a calendar
16monthly basis.
17    The provisions of this paragraph apply before October 1,
182001. Without regard to whether a taxpayer is required to make
19quarter monthly payments as specified above, any taxpayer who
20is required by Section 2d of this Act to collect and remit
21prepaid taxes and has collected prepaid taxes which average in
22excess of $25,000 per month during the preceding 2 complete
23calendar quarters, shall file a return with the Department as
24required by Section 2f and shall make payments to the
25Department on or before the 7th, 15th, 22nd and last day of the
26month during which such liability is incurred. If the month

 

 

SB3095 Engrossed- 23 -LRB099 20651 RPS 45255 b

1during which such tax liability is incurred began prior to the
2effective date of this amendatory Act of 1985, each payment
3shall be in an amount not less than 22.5% of the taxpayer's
4actual liability under Section 2d. If the month during which
5such tax liability is incurred begins on or after January 1,
61986, each payment shall be in an amount equal to 22.5% of the
7taxpayer's actual liability for the month or 27.5% of the
8taxpayer's liability for the same calendar month of the
9preceding calendar year. If the month during which such tax
10liability is incurred begins on or after January 1, 1987, each
11payment shall be in an amount equal to 22.5% of the taxpayer's
12actual liability for the month or 26.25% of the taxpayer's
13liability for the same calendar month of the preceding year.
14The amount of such quarter monthly payments shall be credited
15against the final tax liability of the taxpayer's return for
16that month filed under this Section or Section 2f, as the case
17may be. Once applicable, the requirement of the making of
18quarter monthly payments to the Department pursuant to this
19paragraph shall continue until such taxpayer's average monthly
20prepaid tax collections during the preceding 2 complete
21calendar quarters is $25,000 or less. If any such quarter
22monthly payment is not paid at the time or in the amount
23required, the taxpayer shall be liable for penalties and
24interest on such difference, except insofar as the taxpayer has
25previously made payments for that month in excess of the
26minimum payments previously due.

 

 

SB3095 Engrossed- 24 -LRB099 20651 RPS 45255 b

1    The provisions of this paragraph apply on and after October
21, 2001. Without regard to whether a taxpayer is required to
3make quarter monthly payments as specified above, any taxpayer
4who is required by Section 2d of this Act to collect and remit
5prepaid taxes and has collected prepaid taxes that average in
6excess of $20,000 per month during the preceding 4 complete
7calendar quarters shall file a return with the Department as
8required by Section 2f and shall make payments to the
9Department on or before the 7th, 15th, 22nd and last day of the
10month during which the liability is incurred. Each payment
11shall be in an amount equal to 22.5% of the taxpayer's actual
12liability for the month or 25% of the taxpayer's liability for
13the same calendar month of the preceding year. The amount of
14the quarter monthly payments shall be credited against the
15final tax liability of the taxpayer's return for that month
16filed under this Section or Section 2f, as the case may be.
17Once applicable, the requirement of the making of quarter
18monthly payments to the Department pursuant to this paragraph
19shall continue until the taxpayer's average monthly prepaid tax
20collections during the preceding 4 complete calendar quarters
21(excluding the month of highest liability and the month of
22lowest liability) is less than $19,000 or until such taxpayer's
23average monthly liability to the Department as computed for
24each calendar quarter of the 4 preceding complete calendar
25quarters is less than $20,000. If any such quarter monthly
26payment is not paid at the time or in the amount required, the

 

 

SB3095 Engrossed- 25 -LRB099 20651 RPS 45255 b

1taxpayer shall be liable for penalties and interest on such
2difference, except insofar as the taxpayer has previously made
3payments for that month in excess of the minimum payments
4previously due.
5    If any payment provided for in this Section exceeds the
6taxpayer's liabilities under this Act, the Use Tax Act, the
7Service Occupation Tax Act and the Service Use Tax Act, as
8shown on an original monthly return, the Department shall, if
9requested by the taxpayer, issue to the taxpayer a credit
10memorandum no later than 30 days after the date of payment. The
11credit evidenced by such credit memorandum may be assigned by
12the taxpayer to a similar taxpayer under this Act, the Use Tax
13Act, the Service Occupation Tax Act or the Service Use Tax Act,
14in accordance with reasonable rules and regulations to be
15prescribed by the Department. If no such request is made, the
16taxpayer may credit such excess payment against tax liability
17subsequently to be remitted to the Department under this Act,
18the Use Tax Act, the Service Occupation Tax Act or the Service
19Use Tax Act, in accordance with reasonable rules and
20regulations prescribed by the Department. If the Department
21subsequently determined that all or any part of the credit
22taken was not actually due to the taxpayer, the taxpayer's 2.1%
23and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
24of the difference between the credit taken and that actually
25due, and that taxpayer shall be liable for penalties and
26interest on such difference.

 

 

SB3095 Engrossed- 26 -LRB099 20651 RPS 45255 b

1    If a retailer of motor fuel is entitled to a credit under
2Section 2d of this Act which exceeds the taxpayer's liability
3to the Department under this Act for the month which the
4taxpayer is filing a return, the Department shall issue the
5taxpayer a credit memorandum for the excess.
6    Beginning January 1, 1990, each month the Department shall
7pay into the Local Government Tax Fund, a special fund in the
8State treasury which is hereby created, the net revenue
9realized for the preceding month from the 1% tax on sales of
10food for human consumption which is to be consumed off the
11premises where it is sold (other than alcoholic beverages, soft
12drinks and food which has been prepared for immediate
13consumption) and prescription and nonprescription medicines,
14drugs, medical appliances and insulin, urine testing
15materials, syringes and needles used by diabetics.
16    Beginning January 1, 1990, each month the Department shall
17pay into the County and Mass Transit District Fund, a special
18fund in the State treasury which is hereby created, 4% of the
19net revenue realized for the preceding month from the 6.25%
20general rate.
21    Beginning August 1, 2000, each month the Department shall
22pay into the County and Mass Transit District Fund 20% of the
23net revenue realized for the preceding month from the 1.25%
24rate on the selling price of motor fuel and gasohol. Beginning
25September 1, 2010, each month the Department shall pay into the
26County and Mass Transit District Fund 20% of the net revenue

 

 

SB3095 Engrossed- 27 -LRB099 20651 RPS 45255 b

1realized for the preceding month from the 1.25% rate on the
2selling price of sales tax holiday items.
3    Beginning January 1, 1990, each month the Department shall
4pay into the Local Government Tax Fund 16% of the net revenue
5realized for the preceding month from the 6.25% general rate on
6the selling price of tangible personal property.
7    Beginning August 1, 2000, each month the Department shall
8pay into the Local Government Tax Fund 80% of the net revenue
9realized for the preceding month from the 1.25% rate on the
10selling price of motor fuel and gasohol. Beginning September 1,
112010, each month the Department shall pay into the Local
12Government Tax Fund 80% of the net revenue realized for the
13preceding month from the 1.25% rate on the selling price of
14sales tax holiday items.
15    Beginning October 1, 2009, each month the Department shall
16pay into the Capital Projects Fund an amount that is equal to
17an amount estimated by the Department to represent 80% of the
18net revenue realized for the preceding month from the sale of
19candy, grooming and hygiene products, and soft drinks that had
20been taxed at a rate of 1% prior to September 1, 2009 but that
21are now taxed at 6.25%.
22    Beginning July 1, 2011, each month the Department shall pay
23into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
24realized for the preceding month from the 6.25% general rate on
25the selling price of sorbents used in Illinois in the process
26of sorbent injection as used to comply with the Environmental

 

 

SB3095 Engrossed- 28 -LRB099 20651 RPS 45255 b

1Protection Act or the federal Clean Air Act, but the total
2payment into the Clean Air Act (CAA) Permit Fund under this Act
3and the Use Tax Act shall not exceed $2,000,000 in any fiscal
4year.
5    Beginning July 1, 2013, each month the Department shall pay
6into the Underground Storage Tank Fund from the proceeds
7collected under this Act, the Use Tax Act, the Service Use Tax
8Act, and the Service Occupation Tax Act an amount equal to the
9average monthly deficit in the Underground Storage Tank Fund
10during the prior year, as certified annually by the Illinois
11Environmental Protection Agency, but the total payment into the
12Underground Storage Tank Fund under this Act, the Use Tax Act,
13the Service Use Tax Act, and the Service Occupation Tax Act
14shall not exceed $18,000,000 in any State fiscal year. As used
15in this paragraph, the "average monthly deficit" shall be equal
16to the difference between the average monthly claims for
17payment by the fund and the average monthly revenues deposited
18into the fund, excluding payments made pursuant to this
19paragraph.
20    Beginning July 1, 2015, of the remainder of the moneys
21received by the Department under the Use Tax Act, the Service
22Use Tax Act, the Service Occupation Tax Act, and this Act, each
23month the Department shall deposit $500,000 into the State
24Crime Laboratory Fund.
25    Of the remainder of the moneys received by the Department
26pursuant to this Act, (a) 1.75% thereof shall be paid into the

 

 

SB3095 Engrossed- 29 -LRB099 20651 RPS 45255 b

1Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
2and after July 1, 1989, 3.8% thereof shall be paid into the
3Build Illinois Fund; provided, however, that if in any fiscal
4year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
5may be, of the moneys received by the Department and required
6to be paid into the Build Illinois Fund pursuant to this Act,
7Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
8Act, and Section 9 of the Service Occupation Tax Act, such Acts
9being hereinafter called the "Tax Acts" and such aggregate of
102.2% or 3.8%, as the case may be, of moneys being hereinafter
11called the "Tax Act Amount", and (2) the amount transferred to
12the Build Illinois Fund from the State and Local Sales Tax
13Reform Fund shall be less than the Annual Specified Amount (as
14hereinafter defined), an amount equal to the difference shall
15be immediately paid into the Build Illinois Fund from other
16moneys received by the Department pursuant to the Tax Acts; the
17"Annual Specified Amount" means the amounts specified below for
18fiscal years 1986 through 1993:
19Fiscal YearAnnual Specified Amount
201986$54,800,000
211987$76,650,000
221988$80,480,000
231989$88,510,000
241990$115,330,000
251991$145,470,000
261992$182,730,000

 

 

SB3095 Engrossed- 30 -LRB099 20651 RPS 45255 b

11993$206,520,000;
2and means the Certified Annual Debt Service Requirement (as
3defined in Section 13 of the Build Illinois Bond Act) or the
4Tax Act Amount, whichever is greater, for fiscal year 1994 and
5each fiscal year thereafter; and further provided, that if on
6the last business day of any month the sum of (1) the Tax Act
7Amount required to be deposited into the Build Illinois Bond
8Account in the Build Illinois Fund during such month and (2)
9the amount transferred to the Build Illinois Fund from the
10State and Local Sales Tax Reform Fund shall have been less than
111/12 of the Annual Specified Amount, an amount equal to the
12difference shall be immediately paid into the Build Illinois
13Fund from other moneys received by the Department pursuant to
14the Tax Acts; and, further provided, that in no event shall the
15payments required under the preceding proviso result in
16aggregate payments into the Build Illinois Fund pursuant to
17this clause (b) for any fiscal year in excess of the greater of
18(i) the Tax Act Amount or (ii) the Annual Specified Amount for
19such fiscal year. The amounts payable into the Build Illinois
20Fund under clause (b) of the first sentence in this paragraph
21shall be payable only until such time as the aggregate amount
22on deposit under each trust indenture securing Bonds issued and
23outstanding pursuant to the Build Illinois Bond Act is
24sufficient, taking into account any future investment income,
25to fully provide, in accordance with such indenture, for the
26defeasance of or the payment of the principal of, premium, if

 

 

SB3095 Engrossed- 31 -LRB099 20651 RPS 45255 b

1any, and interest on the Bonds secured by such indenture and on
2any Bonds expected to be issued thereafter and all fees and
3costs payable with respect thereto, all as certified by the
4Director of the Bureau of the Budget (now Governor's Office of
5Management and Budget). If on the last business day of any
6month in which Bonds are outstanding pursuant to the Build
7Illinois Bond Act, the aggregate of moneys deposited in the
8Build Illinois Bond Account in the Build Illinois Fund in such
9month shall be less than the amount required to be transferred
10in such month from the Build Illinois Bond Account to the Build
11Illinois Bond Retirement and Interest Fund pursuant to Section
1213 of the Build Illinois Bond Act, an amount equal to such
13deficiency shall be immediately paid from other moneys received
14by the Department pursuant to the Tax Acts to the Build
15Illinois Fund; provided, however, that any amounts paid to the
16Build Illinois Fund in any fiscal year pursuant to this
17sentence shall be deemed to constitute payments pursuant to
18clause (b) of the first sentence of this paragraph and shall
19reduce the amount otherwise payable for such fiscal year
20pursuant to that clause (b). The moneys received by the
21Department pursuant to this Act and required to be deposited
22into the Build Illinois Fund are subject to the pledge, claim
23and charge set forth in Section 12 of the Build Illinois Bond
24Act.
25    Subject to payment of amounts into the Build Illinois Fund
26as provided in the preceding paragraph or in any amendment

 

 

SB3095 Engrossed- 32 -LRB099 20651 RPS 45255 b

1thereto hereafter enacted, the following specified monthly
2installment of the amount requested in the certificate of the
3Chairman of the Metropolitan Pier and Exposition Authority
4provided under Section 8.25f of the State Finance Act, but not
5in excess of sums designated as "Total Deposit", shall be
6deposited in the aggregate from collections under Section 9 of
7the Use Tax Act, Section 9 of the Service Use Tax Act, Section
89 of the Service Occupation Tax Act, and Section 3 of the
9Retailers' Occupation Tax Act into the McCormick Place
10Expansion Project Fund in the specified fiscal years.
11Fiscal YearTotal Deposit
121993         $0
131994 53,000,000
141995 58,000,000
151996 61,000,000
161997 64,000,000
171998 68,000,000
181999 71,000,000
192000 75,000,000
202001 80,000,000
212002 93,000,000
222003 99,000,000
232004103,000,000
242005108,000,000
252006113,000,000

 

 

SB3095 Engrossed- 33 -LRB099 20651 RPS 45255 b

12007119,000,000
22008126,000,000
32009132,000,000
42010139,000,000
52011146,000,000
62012153,000,000
72013161,000,000
82014170,000,000
92015179,000,000
102016189,000,000
112017199,000,000
122018210,000,000
132019221,000,000
142020233,000,000
152021246,000,000
162022260,000,000
172023275,000,000
182024 275,000,000
192025 275,000,000
202026 279,000,000
212027 292,000,000
222028 307,000,000
232029 322,000,000
242030 338,000,000
252031 350,000,000
262032 350,000,000

 

 

SB3095 Engrossed- 34 -LRB099 20651 RPS 45255 b

1and
2each fiscal year
3thereafter that bonds
4are outstanding under
5Section 13.2 of the
6Metropolitan Pier and
7Exposition Authority Act,
8but not after fiscal year 2060.
9    Beginning July 20, 1993 and in each month of each fiscal
10year thereafter, one-eighth of the amount requested in the
11certificate of the Chairman of the Metropolitan Pier and
12Exposition Authority for that fiscal year, less the amount
13deposited into the McCormick Place Expansion Project Fund by
14the State Treasurer in the respective month under subsection
15(g) of Section 13 of the Metropolitan Pier and Exposition
16Authority Act, plus cumulative deficiencies in the deposits
17required under this Section for previous months and years,
18shall be deposited into the McCormick Place Expansion Project
19Fund, until the full amount requested for the fiscal year, but
20not in excess of the amount specified above as "Total Deposit",
21has been deposited.
22    Subject to payment of amounts into the Build Illinois Fund
23and the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, beginning July 1, 1993 and ending on September 30,
262013, the Department shall each month pay into the Illinois Tax

 

 

SB3095 Engrossed- 35 -LRB099 20651 RPS 45255 b

1Increment Fund 0.27% of 80% of the net revenue realized for the
2preceding month from the 6.25% general rate on the selling
3price of tangible personal property.
4    Subject to payment of amounts into the Build Illinois Fund
5and the McCormick Place Expansion Project Fund pursuant to the
6preceding paragraphs or in any amendments thereto hereafter
7enacted, beginning with the receipt of the first report of
8taxes paid by an eligible business and continuing for a 25-year
9period, the Department shall each month pay into the Energy
10Infrastructure Fund 80% of the net revenue realized from the
116.25% general rate on the selling price of Illinois-mined coal
12that was sold to an eligible business. For purposes of this
13paragraph, the term "eligible business" means a new electric
14generating facility certified pursuant to Section 605-332 of
15the Department of Commerce and Economic Opportunity Law of the
16Civil Administrative Code of Illinois.
17    Subject to payment of amounts into the Build Illinois Fund,
18the McCormick Place Expansion Project Fund, the Illinois Tax
19Increment Fund, and the Energy Infrastructure Fund pursuant to
20the preceding paragraphs or in any amendments to this Section
21hereafter enacted, beginning on the first day of the first
22calendar month to occur on or after the effective date of this
23amendatory Act of the 98th General Assembly, each month, from
24the collections made under Section 9 of the Use Tax Act,
25Section 9 of the Service Use Tax Act, Section 9 of the Service
26Occupation Tax Act, and Section 3 of the Retailers' Occupation

 

 

SB3095 Engrossed- 36 -LRB099 20651 RPS 45255 b

1Tax Act, the Department shall pay into the Tax Compliance and
2Administration Fund, to be used, subject to appropriation, to
3fund additional auditors and compliance personnel at the
4Department of Revenue, an amount equal to 1/12 of 5% of 80% of
5the cash receipts collected during the preceding fiscal year by
6the Audit Bureau of the Department under the Use Tax Act, the
7Service Use Tax Act, the Service Occupation Tax Act, the
8Retailers' Occupation Tax Act, and associated local occupation
9and use taxes administered by the Department.
10    Of the remainder of the moneys received by the Department
11pursuant to this Act, 75% thereof shall be paid into the State
12Treasury and 25% shall be reserved in a special account and
13used only for the transfer to the Common School Fund as part of
14the monthly transfer from the General Revenue Fund in
15accordance with Section 8a of the State Finance Act.
16    The Department may, upon separate written notice to a
17taxpayer, require the taxpayer to prepare and file with the
18Department on a form prescribed by the Department within not
19less than 60 days after receipt of the notice an annual
20information return for the tax year specified in the notice.
21Such annual return to the Department shall include a statement
22of gross receipts as shown by the retailer's last Federal
23income tax return. If the total receipts of the business as
24reported in the Federal income tax return do not agree with the
25gross receipts reported to the Department of Revenue for the
26same period, the retailer shall attach to his annual return a

 

 

SB3095 Engrossed- 37 -LRB099 20651 RPS 45255 b

1schedule showing a reconciliation of the 2 amounts and the
2reasons for the difference. The retailer's annual return to the
3Department shall also disclose the cost of goods sold by the
4retailer during the year covered by such return, opening and
5closing inventories of such goods for such year, costs of goods
6used from stock or taken from stock and given away by the
7retailer during such year, payroll information of the
8retailer's business during such year and any additional
9reasonable information which the Department deems would be
10helpful in determining the accuracy of the monthly, quarterly
11or annual returns filed by such retailer as provided for in
12this Section.
13    If the annual information return required by this Section
14is not filed when and as required, the taxpayer shall be liable
15as follows:
16        (i) Until January 1, 1994, the taxpayer shall be liable
17    for a penalty equal to 1/6 of 1% of the tax due from such
18    taxpayer under this Act during the period to be covered by
19    the annual return for each month or fraction of a month
20    until such return is filed as required, the penalty to be
21    assessed and collected in the same manner as any other
22    penalty provided for in this Act.
23        (ii) On and after January 1, 1994, the taxpayer shall
24    be liable for a penalty as described in Section 3-4 of the
25    Uniform Penalty and Interest Act.
26    The chief executive officer, proprietor, owner or highest

 

 

SB3095 Engrossed- 38 -LRB099 20651 RPS 45255 b

1ranking manager shall sign the annual return to certify the
2accuracy of the information contained therein. Any person who
3willfully signs the annual return containing false or
4inaccurate information shall be guilty of perjury and punished
5accordingly. The annual return form prescribed by the
6Department shall include a warning that the person signing the
7return may be liable for perjury.
8    The provisions of this Section concerning the filing of an
9annual information return do not apply to a retailer who is not
10required to file an income tax return with the United States
11Government.
12    As soon as possible after the first day of each month, upon
13certification of the Department of Revenue, the Comptroller
14shall order transferred and the Treasurer shall transfer from
15the General Revenue Fund to the Motor Fuel Tax Fund an amount
16equal to 1.7% of 80% of the net revenue realized under this Act
17for the second preceding month. Beginning April 1, 2000, this
18transfer is no longer required and shall not be made.
19    Net revenue realized for a month shall be the revenue
20collected by the State pursuant to this Act, less the amount
21paid out during that month as refunds to taxpayers for
22overpayment of liability.
23    For greater simplicity of administration, manufacturers,
24importers and wholesalers whose products are sold at retail in
25Illinois by numerous retailers, and who wish to do so, may
26assume the responsibility for accounting and paying to the

 

 

SB3095 Engrossed- 39 -LRB099 20651 RPS 45255 b

1Department all tax accruing under this Act with respect to such
2sales, if the retailers who are affected do not make written
3objection to the Department to this arrangement.
4    Any person who promotes, organizes, provides retail
5selling space for concessionaires or other types of sellers at
6the Illinois State Fair, DuQuoin State Fair, county fairs,
7local fairs, art shows, flea markets and similar exhibitions or
8events, including any transient merchant as defined by Section
92 of the Transient Merchant Act of 1987, is required to file a
10report with the Department providing the name of the merchant's
11business, the name of the person or persons engaged in
12merchant's business, the permanent address and Illinois
13Retailers Occupation Tax Registration Number of the merchant,
14the dates and location of the event and other reasonable
15information that the Department may require. The report must be
16filed not later than the 20th day of the month next following
17the month during which the event with retail sales was held.
18Any person who fails to file a report required by this Section
19commits a business offense and is subject to a fine not to
20exceed $250.
21    Any person engaged in the business of selling tangible
22personal property at retail as a concessionaire or other type
23of seller at the Illinois State Fair, county fairs, art shows,
24flea markets and similar exhibitions or events, or any
25transient merchants, as defined by Section 2 of the Transient
26Merchant Act of 1987, may be required to make a daily report of

 

 

SB3095 Engrossed- 40 -LRB099 20651 RPS 45255 b

1the amount of such sales to the Department and to make a daily
2payment of the full amount of tax due. The Department shall
3impose this requirement when it finds that there is a
4significant risk of loss of revenue to the State at such an
5exhibition or event. Such a finding shall be based on evidence
6that a substantial number of concessionaires or other sellers
7who are not residents of Illinois will be engaging in the
8business of selling tangible personal property at retail at the
9exhibition or event, or other evidence of a significant risk of
10loss of revenue to the State. The Department shall notify
11concessionaires and other sellers affected by the imposition of
12this requirement. In the absence of notification by the
13Department, the concessionaires and other sellers shall file
14their returns as otherwise required in this Section.
15(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1698-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
178-26-14; 99-352, eff. 8-12-15.)
 
18    Section 15. The Counties Code is amended by changing
19Section 3-9007 as follows:
 
20    (55 ILCS 5/3-9007)  (from Ch. 34, par. 3-9007)
21    Sec. 3-9007. Home rule unit liquor tax ordinance;
22prosecutions. Where any county, municipality or other unit of
23local government has adopted any ordinance or other regulation
24imposing a tax upon the privilege of engaging in business as a

 

 

SB3095 Engrossed- 41 -LRB099 20651 RPS 45255 b

1manufacturer, importing distributor, retailer, or distributor
2of beer, alcohol or other spirits, pursuant to its home rule
3powers under Article VII, Section 6 of the Constitution of the
4State of Illinois, nothing shall prohibit a State's attorney
5from prosecuting any offense under the Criminal Code of 1961 or
6the Criminal Code of 2012 which may also constitute a violation
7of the applicable ordinance or regulation.
8(Source: P.A. 97-1150, eff. 1-25-13.)
 
9    Section 30. The Liquor Control Act of 1934 is amended by
10changing Sections 1-3.05, 1-3.15, 1-3.21, 1-3.27, 1-3.29,
111-3.33, 1-3.38, 3-12, 3-14, 4-4, 5-1, 5-3, 6-2, 6-4, 6-4.5,
126-5, 6-6, 6-6.3, 6-6.5, 6-7, 6-8, 6-9, 6-17, 6-17.1, 6-22,
136-23, 6-27.1, 6-29, 6-29.1, 6-31, 7-1, 7-6, 8-1, 8-2, 8-5,
148-10, 9-13, 10-1, and 10-7.1 and by renumbering and changing
15Section 1-3.40 as added by Public Act 99-448 as follows:
 
16    (235 ILCS 5/1-3.05)  (from Ch. 43, par. 95.05)
17    Sec. 1-3.05. "Alcoholic liquor" includes alcohol, spirits,
18wine and beer, and every liquid or solid, patented or not,
19containing alcohol, spirits, wine or beer, and capable of being
20consumed as a beverage by a human being. The provisions of this
21Act shall not apply to alcohol used in the manufacture of
22denatured alcohol produced in accordance with Acts of Congress
23and regulations promulgated thereunder, nor to any liquid or
24solid containing one-half of one per cent, or less, of alcohol

 

 

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1by volume. No tax provided for in Article VIII of this Act
2shall apply to wine intended for use and used by any church or
3religious organization for sacramental purposes, provided that
4such wine shall be purchased from a licensed manufacturer or
5importing distributor under this Act.
6(Source: P.A. 82-783.)
 
7    (235 ILCS 5/1-3.15)  (from Ch. 43, par. 95.15)
8    Sec. 1-3.15. "Distributor" means any person, other than a
9manufacturer or non-resident dealer licensed under this Act,
10who is engaged in this State in purchasing, storing, possessing
11or warehousing any alcoholic liquors for resale or reselling at
12wholesale, whether within or without this State. "Distributor"
13also means any person other than a non-resident dealer licensed
14under this Act who imports into this State, from any point in
15the United States outside this State, whether for himself or
16for another, any alcoholic liquors for sale or resale, or for
17use in the manufacture, preparation or compounding of products
18other than alcoholic liquors, or who imports into this State,
19from any point in the United States outside this State, for
20consumption in any one calendar year, more than one gallon of
21such liquors.
22(Source: P.A. 83-1254.)
 
23    (235 ILCS 5/1-3.21)  (from Ch. 43, par. 95.21)
24    Sec. 1-3.21. "Sale" means any transfer, exchange or barter

 

 

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1in any manner, or by any means whatsoever, including the
2transfer of alcoholic liquors by and through the transfer or
3negotiation of warehouse receipts or certificates, and
4includes and means all sales made by any person, whether
5principal, proprietor, agent, servant or employee. The term
6"sale" includes any transfer of alcoholic liquor from a foreign
7importer's license to a an importing distributor's license even
8if both licenses are held by the same person.
9(Source: P.A. 82-783.)
 
10    (235 ILCS 5/1-3.27)  (from Ch. 43, par. 95.27)
11    Sec. 1-3.27. "Foreign importer" means anyone other than a
12non-resident dealer licensed under this Act who imports into
13this State, from any point outside the United States, any
14alcoholic liquors other than in bulk for sale to a licensed
15importing distributor.
16(Source: P.A. 83-1254.)
 
17    (235 ILCS 5/1-3.29)  (from Ch. 43, par. 95.29)
18    Sec. 1-3.29. "Non-resident dealer" means any person, firm,
19partnership, corporation or other legal business entity who or
20which exports into this State, from any point outside of this
21State, any alcoholic liquors for sale to Illinois licensed
22foreign importers or importing distributors. Such license
23shall be restricted to the actual manufacturer of such
24alcoholic liquors or the primary United States importer of such

 

 

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1alcoholic liquors, if manufactured outside of the United
2States, or the duly registered agent of such manufacturer or
3importer. Registration of such agent with the State Commission,
4in such manner and form as it may prescribe, shall be a
5prerequisite to the issuance of such license to an agent.
6    Any licensed Illinois manufacturer of Class 1, Class 2, or
7Class 3 may obtain a Non-Resident Dealer's License at no fee. A
8manufacturer whose production of alcoholic liquor is less than
9500,000 gallons per year may obtain a Non-Resident Dealer's
10License for an annual fee of $75.
11(Source: P.A. 82-783.)
 
12    (235 ILCS 5/1-3.33)
13    Sec. 1-3.33. "Brew Pub" means a person who manufactures no
14more than 155,000 gallons of beer per year only at a designated
15licensed premises to make sales to importing distributors,
16distributors, and to non-licensees for use and consumption
17only, who stores beer at the designated premises, and who is
18allowed to sell at retail from the licensed premises, provided
19that a brew pub licensee shall not sell for off-premises
20consumption more than 155,000 gallons per year.
21(Source: P.A. 99-448, eff. 8-24-15.)
 
22    (235 ILCS 5/1-3.38)
23    Sec. 1-3.38. Class 1 brewer. "Class 1 brewer" means a
24person who is a holder of a brewer license or non-resident

 

 

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1dealer license who manufactures up to 930,000 gallons of beer
2per year and who may make sales and deliveries to importing
3distributors and distributors and to retail licensees in
4accordance with the conditions set forth in paragraph (18) of
5subsection (a) of Section 3-12 of this Act.
6(Source: P.A. 98-401, eff. 8-16-13; 99-448, eff. 8-24-15.)
 
7    (235 ILCS 5/1-3.42)
8    Sec. 1-3.42 1-3.40. Class 2 brewer. "Class 2 brewer" means
9a person who is a holder of a brewer license or non-resident
10dealer license who manufactures up to 3,720,000 gallons of beer
11per year for sale to a licensed importing distributor or
12distributor.
13(Source: P.A. 99-448, eff. 8-24-15; revised 10-28-15.)
 
14    (235 ILCS 5/3-12)
15    Sec. 3-12. Powers and duties of State Commission.
16    (a) The State commission shall have the following powers,
17functions, and duties:
18        (1) To receive applications and to issue licenses to
19    manufacturers, foreign importers, importing distributors,
20    distributors, non-resident dealers, on premise consumption
21    retailers, off premise sale retailers, special event
22    retailer licensees, special use permit licenses, auction
23    liquor licenses, brew pubs, caterer retailers,
24    non-beverage users, railroads, including owners and

 

 

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1    lessees of sleeping, dining and cafe cars, airplanes,
2    boats, brokers, and wine maker's premises licensees in
3    accordance with the provisions of this Act, and to suspend
4    or revoke such licenses upon the State commission's
5    determination, upon notice after hearing, that a licensee
6    has violated any provision of this Act or any rule or
7    regulation issued pursuant thereto and in effect for 30
8    days prior to such violation. Except in the case of an
9    action taken pursuant to a violation of Section 6-3, 6-5,
10    or 6-9, any action by the State Commission to suspend or
11    revoke a licensee's license may be limited to the license
12    for the specific premises where the violation occurred.
13        In lieu of suspending or revoking a license, the
14    commission may impose a fine, upon the State commission's
15    determination and notice after hearing, that a licensee has
16    violated any provision of this Act or any rule or
17    regulation issued pursuant thereto and in effect for 30
18    days prior to such violation.
19        For the purpose of this paragraph (1), when determining
20    multiple violations for the sale of alcohol to a person
21    under the age of 21, a second or subsequent violation for
22    the sale of alcohol to a person under the age of 21 shall
23    only be considered if it was committed within 5 years after
24    the date when a prior violation for the sale of alcohol to
25    a person under the age of 21 was committed.
26        The fine imposed under this paragraph may not exceed

 

 

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1    $500 for each violation. Each day that the activity, which
2    gave rise to the original fine, continues is a separate
3    violation. The maximum fine that may be levied against any
4    licensee, for the period of the license, shall not exceed
5    $20,000. The maximum penalty that may be imposed on a
6    licensee for selling a bottle of alcoholic liquor with a
7    foreign object in it or serving from a bottle of alcoholic
8    liquor with a foreign object in it shall be the destruction
9    of that bottle of alcoholic liquor for the first 10 bottles
10    so sold or served from by the licensee. For the eleventh
11    bottle of alcoholic liquor and for each third bottle
12    thereafter sold or served from by the licensee with a
13    foreign object in it, the maximum penalty that may be
14    imposed on the licensee is the destruction of the bottle of
15    alcoholic liquor and a fine of up to $50.
16        (2) To adopt such rules and regulations consistent with
17    the provisions of this Act which shall be necessary to
18    carry on its functions and duties to the end that the
19    health, safety and welfare of the People of the State of
20    Illinois shall be protected and temperance in the
21    consumption of alcoholic liquors shall be fostered and
22    promoted and to distribute copies of such rules and
23    regulations to all licensees affected thereby.
24        (3) To call upon other administrative departments of
25    the State, county and municipal governments, county and
26    city police departments and upon prosecuting officers for

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    purchasing and consumption of alcoholic beverages.
2        (11.1) To license persons providing education and
3    training to alcohol beverage sellers and servers for
4    mandatory and non-mandatory training under the Beverage
5    Alcohol Sellers and Servers Education and Training
6    (BASSET) programs and to develop and administer a public
7    awareness program in Illinois to reduce or eliminate the
8    illegal purchase and consumption of alcoholic beverage
9    products by persons under the age of 21. Application for a
10    license shall be made on forms provided by the State
11    Commission.
12        (12) To develop and maintain a repository of license
13    and regulatory information.
14        (13) On or before January 15, 1994, the Commission
15    shall issue a written report to the Governor and General
16    Assembly that is to be based on a comprehensive study of
17    the impact on and implications for the State of Illinois of
18    Section 1926 of the Federal ADAMHA Reorganization Act of
19    1992 (Public Law 102-321). This study shall address the
20    extent to which Illinois currently complies with the
21    provisions of P.L. 102-321 and the rules promulgated
22    pursuant thereto.
23        As part of its report, the Commission shall provide the
24    following essential information:
25            (i) the number of retail distributors of tobacco
26        products, by type and geographic area, in the State;

 

 

SB3095 Engrossed- 53 -LRB099 20651 RPS 45255 b

1            (ii) the number of reported citations and
2        successful convictions, categorized by type and
3        location of retail distributor, for violation of the
4        Prevention of Tobacco Use by Minors and Sale and
5        Distribution of Tobacco Products Act and the Smokeless
6        Tobacco Limitation Act;
7            (iii) the extent and nature of organized
8        educational and governmental activities that are
9        intended to promote, encourage or otherwise secure
10        compliance with any Illinois laws that prohibit the
11        sale or distribution of tobacco products to minors; and
12            (iv) the level of access and availability of
13        tobacco products to individuals under the age of 18.
14        To obtain the data necessary to comply with the
15    provisions of P.L. 102-321 and the requirements of this
16    report, the Commission shall conduct random, unannounced
17    inspections of a geographically and scientifically
18    representative sample of the State's retail tobacco
19    distributors.
20        The Commission shall consult with the Department of
21    Public Health, the Department of Human Services, the
22    Illinois State Police and any other executive branch
23    agency, and private organizations that may have
24    information relevant to this report.
25        The Commission may contract with the Food and Drug
26    Administration of the U.S. Department of Health and Human

 

 

SB3095 Engrossed- 54 -LRB099 20651 RPS 45255 b

1    Services to conduct unannounced investigations of Illinois
2    tobacco vendors to determine compliance with federal laws
3    relating to the illegal sale of cigarettes and smokeless
4    tobacco products to persons under the age of 18.
5        (14) On or before April 30, 2008 and every 2 years
6    thereafter, the Commission shall present a written report
7    to the Governor and the General Assembly that shall be
8    based on a study of the impact of this amendatory Act of
9    the 95th General Assembly on the business of soliciting,
10    selling, and shipping wine from inside and outside of this
11    State directly to residents of this State. As part of its
12    report, the Commission shall provide all of the following
13    information:
14            (A) The amount of State excise and sales tax
15        revenues generated.
16            (B) The amount of licensing fees received.
17            (C) The number of cases of wine shipped from inside
18        and outside of this State directly to residents of this
19        State.
20            (D) The number of alcohol compliance operations
21        conducted.
22            (E) The number of winery shipper's licenses
23        issued.
24            (F) The number of each of the following: reported
25        violations; cease and desist notices issued by the
26        Commission; notices of violations issued by the

 

 

SB3095 Engrossed- 55 -LRB099 20651 RPS 45255 b

1        Commission and to the Department of Revenue; and
2        notices and complaints of violations to law
3        enforcement officials, including, without limitation,
4        the Illinois Attorney General and the U.S. Department
5        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
6        (15) As a means to reduce the underage consumption of
7    alcoholic liquors, the Commission shall conduct alcohol
8    compliance operations to investigate whether businesses
9    that are soliciting, selling, and shipping wine from inside
10    or outside of this State directly to residents of this
11    State are licensed by this State or are selling or
12    attempting to sell wine to persons under 21 years of age in
13    violation of this Act.
14        (16) The Commission shall, in addition to notifying any
15    appropriate law enforcement agency, submit notices of
16    complaints or violations of Sections 6-29 and 6-29.1 by
17    persons who do not hold a winery shipper's license under
18    this amendatory Act to the Illinois Attorney General and to
19    the U.S. Department of Treasury's Alcohol and Tobacco Tax
20    and Trade Bureau.
21        (17) (A) A person licensed to make wine under the laws
22    of another state who has a winery shipper's license under
23    this amendatory Act and annually produces less than 25,000
24    gallons of wine or a person who has a first-class or
25    second-class wine manufacturer's license, a first-class or
26    second-class wine-maker's license, or a limited wine

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        a material misrepresentation in its application,
2        violated a revenue or alcoholic beverage law of
3        Illinois, exceeded the manufacture of 930,000 gallons
4        of beer in any calendar year or became part of an
5        affiliated group manufacturing more than 930,000
6        gallons of beer or any other alcoholic beverage.
7            (E) The State Commission shall issue rules and
8        regulations governing self-distribution exemptions
9        consistent with this Act.
10            (F) Nothing in this paragraph (18) shall prohibit a
11        self-distribution exemption holder from entering into
12        or simultaneously having a distribution agreement with
13        a licensed Illinois importing distributor or a
14        distributor. If a self-distribution exemption holder
15        enters into a distribution agreement and has assigned
16        distribution rights to a an importing distributor or
17        distributor, then the self-distribution exemption
18        holder's distribution rights in the assigned
19        territories shall cease in a reasonable time not to
20        exceed 60 days.
21            (G) It is the intent of this paragraph (18) to
22        promote and continue orderly markets. The General
23        Assembly finds that in order to preserve Illinois'
24        regulatory distribution system, it is necessary to
25        create an exception for smaller manufacturers in order
26        to afford and allow such smaller manufacturers of beer

 

 

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1        access to the marketplace in order to develop a
2        customer base without impairing the integrity of the
3        3-tier system.
4    (b) On or before April 30, 1999, the Commission shall
5present a written report to the Governor and the General
6Assembly that shall be based on a study of the impact of this
7amendatory Act of 1998 on the business of soliciting, selling,
8and shipping alcoholic liquor from outside of this State
9directly to residents of this State.
10    As part of its report, the Commission shall provide the
11following information:
12        (i) the amount of State excise and sales tax revenues
13    generated as a result of this amendatory Act of 1998;
14        (ii) the amount of licensing fees received as a result
15    of this amendatory Act of 1998;
16        (iii) the number of reported violations, the number of
17    cease and desist notices issued by the Commission, the
18    number of notices of violations issued to the Department of
19    Revenue, and the number of notices and complaints of
20    violations to law enforcement officials.
21(Source: P.A. 98-401, eff. 8-16-13; 98-939, eff. 7-1-15;
2298-941, eff. 1-1-15; 99-78, eff. 7-20-15; 99-448, eff.
238-24-15.)
 
24    (235 ILCS 5/3-14)  (from Ch. 43, par. 109)
25    Sec. 3-14. Issuance of license by Commission. Nothing

 

 

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1contained in this Act shall, however, be construed to permit
2the State Commission to issue any license, other than
3manufacturer's, foreign importer's, importing distributor's,
4non-resident dealer's, and distributor's, broker's and
5non-beverage user's license for any premises in any prohibited
6territory, or to issue any license other than manufacturer's,
7foreign importer's, importing distributor's, non-resident
8dealer's, distributor's, railroad's, airplane's, boat's, or
9broker's license, auction liquor license, or non-beverage
10user's license, unless the person applying for such license
11shall have obtained a local license for the same premises. For
12purposes of this Section and only in regards to a hotel, the
13local license issued for the same premises may include multiple
14local licenses issued to a hotel operator for various portions
15of the hotel building, structure, or adjacent property owned
16and managed by the hotel operator in which alcoholic liquors
17may be stored, offered for sale, and sold; however, all of
18those portions of the hotel building, structure, or adjacent
19property shall be considered the hotel premises for purposes of
20the issuance of a retailer's license by the State Commission.
21When such person has obtained a local license and has made
22application to the State Commission in conformity with this Act
23and paid the license fee provided, it shall be the duty of the
24State Commission to issue a retailer's license to him;
25provided, however, that the State Commission may refuse the
26issuance or renewal of a retailer's license, upon notice and

 

 

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1after hearing, upon the grounds authorized in Section 6-3 of
2this Act, and, provided further, that the issuance of such
3license shall not prejudice the State Commission's action in
4subsequently suspending or revoking such license if it is
5determined by the State Commission, upon notice and after
6hearing, that the licensee has, within the same or the
7preceding license period, violated any provision of this Act or
8any rule or regulation issued pursuant thereto and in effect
9for 30 days prior to such violation. The Commission may also
10refuse to renew a license if the licensee has failed to pay an
11offer in compromise, pre-disciplinary settlement, or a fine
12imposed by order.
13(Source: P.A. 99-46, eff. 7-15-15.)
 
14    (235 ILCS 5/4-4)  (from Ch. 43, par. 112)
15    Sec. 4-4. Each local liquor control commissioner shall also
16have the following powers, functions and duties with respect to
17licenses, other than licenses to manufacturers, importing
18distributors, distributors, foreign importers, non-resident
19dealers, non-beverage users, brokers, railroads, airplanes and
20boats.
21        1. To grant and or suspend for not more than thirty
22    days or revoke for cause all local licenses issued to
23    persons for premises within his jurisdiction;
24        2. To enter or to authorize any law enforcing officer
25    to enter at any time upon any premises licensed hereunder

 

 

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1    to determine whether any of the provisions of this Act or
2    any rules or regulations adopted by him or by the State
3    Commission have been or are being violated, and at such
4    time to examine said premises of said licensee in
5    connection therewith;
6        3. To notify the Secretary of State where a club
7    incorporated under the General Not for Profit Corporation
8    Act of 1986 or a foreign corporation functioning as a club
9    in this State under a certificate of authority issued under
10    that Act has violated this Act by selling or offering for
11    sale at retail alcoholic liquors without a retailer's
12    license;
13        4. To receive complaint from any citizen within his
14    jurisdiction that any of the provisions of this Act, or any
15    rules or regulations adopted pursuant hereto, have been or
16    are being violated and to act upon such complaints in the
17    manner hereinafter provided;
18        5. To receive local license fees and pay the same
19    forthwith to the city, village, town or county treasurer as
20    the case may be.
21    Each local liquor commissioner also has the duty to notify
22the Secretary of State of any convictions or dispositions of
23court supervision for a violation of Section 6-20 of this Act
24or a similar provision of a local ordinance.
25    In counties and municipalities, the local liquor control
26commissioners shall also have the power to levy fines in

 

 

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1accordance with Section 7-5 of this Act.
2(Source: P.A. 95-166, eff. 1-1-08.)
 
3    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
4    Sec. 5-1. Licenses issued by the Illinois Liquor Control
5Commission shall be of the following classes:
6    (a) Manufacturer's license - Class 1. Distiller, Class 2.
7Rectifier, Class 3. Brewer, Class 4. First Class Wine
8Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
9First Class Winemaker, Class 7. Second Class Winemaker, Class
108. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1110. Class 1 Brewer, Class 11. Class 2 Brewer,
12    (b) Distributor's license,
13    (c) (Blank), Importing Distributor's license,
14    (d) Retailer's license,
15    (e) Special Event Retailer's license (not-for-profit),
16    (f) Railroad license,
17    (g) Boat license,
18    (h) Non-Beverage User's license,
19    (i) Wine-maker's premises license,
20    (j) Airplane license,
21    (k) Foreign importer's license,
22    (l) Broker's license,
23    (m) Non-resident dealer's license,
24    (n) Brew Pub license,
25    (o) Auction liquor license,

 

 

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1    (p) Caterer retailer license,
2    (q) Special use permit license,
3    (r) Winery shipper's license.
4    No person, firm, partnership, corporation, or other legal
5business entity that is engaged in the manufacturing of wine
6may concurrently obtain and hold a wine-maker's license and a
7wine manufacturer's license.
8    (a) A manufacturer's license shall allow the manufacture,
9importation in bulk, storage, distribution and sale of
10alcoholic liquor to persons without the State, as may be
11permitted by law and to licensees in this State as follows:
12    Class 1. A Distiller may make sales and deliveries of
13alcoholic liquor to distillers, rectifiers, importing
14distributors, distributors, and non-beverage users and to no
15other licensees.
16    Class 2. A Rectifier, who is not a distiller, as defined
17herein, may make sales and deliveries of alcoholic liquor to
18rectifiers, importing distributors, distributors, retailers,
19and non-beverage users and to no other licensees.
20    Class 3. A Brewer may make sales and deliveries of beer to
21importing distributors and distributors and may make sales as
22authorized under subsection (e) of Section 6-4 of this Act.
23    Class 4. A first class wine-manufacturer may make sales and
24deliveries of up to 50,000 gallons of wine to manufacturers,
25importing distributors and distributors, and to no other
26licensees.

 

 

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1    Class 5. A second class Wine manufacturer may make sales
2and deliveries of more than 50,000 gallons of wine to
3manufacturers, importing distributors and distributors and to
4no other licensees.
5    Class 6. A first-class wine-maker's license shall allow the
6manufacture of up to 50,000 gallons of wine per year, and the
7storage and sale of such wine to distributors in the State and
8to persons without the State, as may be permitted by law. A
9person who, prior to June 1, 2008 (the effective date of Public
10Act 95-634) this amendatory Act of the 95th General Assembly,
11is a holder of a first-class wine-maker's license and annually
12produces more than 25,000 gallons of its own wine and who
13distributes its wine to licensed retailers shall cease this
14practice on or before July 1, 2008 in compliance with Public
15Act 95-634 this amendatory Act of the 95th General Assembly.
16    Class 7. A second-class wine-maker's license shall allow
17the manufacture of between 50,000 and 150,000 gallons of wine
18per year, and the storage and sale of such wine to distributors
19in this State and to persons without the State, as may be
20permitted by law. A person who, prior to June 1, 2008 (the
21effective date of Public Act 95-634) this amendatory Act of the
2295th General Assembly, is a holder of a second-class
23wine-maker's license and annually produces more than 25,000
24gallons of its own wine and who distributes its wine to
25licensed retailers shall cease this practice on or before July
261, 2008 in compliance with Public Act 95-634 this amendatory

 

 

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1Act of the 95th General Assembly.
2    Class 8. A limited wine-manufacturer may make sales and
3deliveries not to exceed 40,000 gallons of wine per year to
4distributors, and to non-licensees in accordance with the
5provisions of this Act.
6    Class 9. A craft distiller license shall allow the
7manufacture of up to 30,000 gallons of spirits by distillation
8for one year after March 1, 2013 (the effective date of Public
9Act 97-1166) this amendatory Act of the 97th General Assembly
10and up to 35,000 gallons of spirits by distillation per year
11thereafter and the storage of such spirits. If a craft
12distiller licensee is not affiliated with any other
13manufacturer, then the craft distiller licensee may sell such
14spirits to distributors in this State and up to 2,500 gallons
15of such spirits to non-licensees to the extent permitted by any
16exemption approved by the Commission pursuant to Section 6-4 of
17this Act.
18    Any craft distiller licensed under this Act who on July 28,
192010 (the effective date of Public Act 96-1367) this amendatory
20Act of the 96th General Assembly was licensed as a distiller
21and manufactured no more spirits than permitted by this Section
22shall not be required to pay the initial licensing fee.
23    Class 10. 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

 

 

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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 or any other alcoholic liquor. A class
51 brewer licensee may make sales and deliveries to importing
6distributors and distributors and to retail licensees in
7accordance with the conditions set forth in paragraph (18) of
8subsection (a) of Section 3-12 of this Act.
9    Class 11. A class 2 brewer license, which may only be
10issued to a licensed brewer or licensed non-resident dealer,
11shall allow the manufacture of up to 3,720,000 gallons of beer
12per year provided that the class 2 brewer licensee does not
13manufacture more than a combined 3,720,000 gallons of beer per
14year and is not a member of or affiliated with, directly or
15indirectly, a manufacturer that produces more than 3,720,000
16gallons of beer per year or any other alcoholic liquor. A class
172 brewer licensee may make sales and deliveries to importing
18distributors and distributors, but shall not make sales or
19deliveries to any other licensee. If the State Commission
20provides prior approval, a class 2 brewer licensee may annually
21transfer up to 3,720,000 gallons of beer manufactured by that
22class 2 brewer licensee to the premises of a licensed class 2
23brewer wholly owned and operated by the same licensee.
24    (a-1) A manufacturer which is licensed in this State to
25make sales or deliveries of alcoholic liquor to licensed
26distributors or importing distributors and which enlists

 

 

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1agents, representatives, or individuals acting on its behalf
2who contact licensed retailers on a regular and continual basis
3in this State must register those agents, representatives, or
4persons acting on its behalf with the State Commission.
5    Registration of agents, representatives, or persons acting
6on behalf of a manufacturer is fulfilled by submitting a form
7to the Commission. The form shall be developed by the
8Commission and shall include the name and address of the
9applicant, the name and address of the manufacturer he or she
10represents, the territory or areas assigned to sell to or
11discuss pricing terms of alcoholic liquor, and any other
12questions deemed appropriate and necessary. All statements in
13the forms required to be made by law or by rule shall be deemed
14material, and any person who knowingly misstates any material
15fact under oath in an application is guilty of a Class B
16misdemeanor. Fraud, misrepresentation, false statements,
17misleading statements, evasions, or suppression of material
18facts in the securing of a registration are grounds for
19suspension or revocation of the registration. The State
20Commission shall post a list of registered agents on the
21Commission's website.
22    (b) A distributor's license shall allow the wholesale
23purchase and storage of alcoholic liquors and sale of alcoholic
24liquors to licensees in this State and to persons without the
25State, as may be permitted by law. A distributor's license
26shall further allow the importation of alcoholic liquor by the

 

 

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1licensee into this State from any point in the United States
2outside this State and the purchase of alcoholic liquor in
3barrels, casks, or other bulk containers and the bottling of
4such alcoholic liquors before resale thereof, but all bottles
5or containers so filled shall be sealed, labeled, stamped, and
6otherwise made to comply with all provisions, rules, and
7regulations governing manufacturers in the preparation and
8bottling of alcoholic liquors. The distributor's license shall
9also permit such licensee to purchase alcoholic liquor from
10Illinois licensed non-resident dealers, foreign importers, and
11other sources as permitted by this Act. A distributor's license
12may not be granted to any holder of a manufacturer's license,
13as listed in subsection (a), or holder of a non-resident dealer
14license.
15    (c) (Blank). An importing distributor's license may be
16issued to and held by those only who are duly licensed
17distributors, upon the filing of an application by a duly
18licensed distributor, with the Commission and the Commission
19shall, without the payment of any fee, immediately issue such
20importing distributor's license to the applicant, which shall
21allow the importation of alcoholic liquor by the licensee into
22this State from any point in the United States outside this
23State, and the purchase of alcoholic liquor in barrels, casks
24or other bulk containers and the bottling of such alcoholic
25liquors before resale thereof, but all bottles or containers so
26filled shall be sealed, labeled, stamped and otherwise made to

 

 

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1comply with all provisions, rules and regulations governing
2manufacturers in the preparation and bottling of alcoholic
3liquors. The importing distributor's license shall permit such
4licensee to purchase alcoholic liquor from Illinois licensed
5non-resident dealers and foreign importers only.
6    (d) A retailer's license shall allow the licensee to sell
7and offer for sale at retail, only in the premises specified in
8the license, alcoholic liquor for use or consumption, but not
9for resale in any form. Nothing in Public Act 95-634 this
10amendatory Act of the 95th General Assembly shall deny, limit,
11remove, or restrict the ability of a holder of a retailer's
12license to transfer, deliver, or ship alcoholic liquor to the
13purchaser for use or consumption subject to any applicable
14local law or ordinance. Any retail license issued to a
15manufacturer shall only permit the manufacturer to sell beer at
16retail on the premises actually occupied by the manufacturer.
17For the purpose of further describing the type of business
18conducted at a retail licensed premises, a retailer's licensee
19may be designated by the State Commission as (i) an on premise
20consumption retailer, (ii) an off premise sale retailer, or
21(iii) a combined on premise consumption and off premise sale
22retailer.
23    Notwithstanding any other provision of this subsection
24(d), a retail licensee may sell alcoholic liquors to a special
25event retailer licensee for resale to the extent permitted
26under subsection (e).

 

 

SB3095 Engrossed- 73 -LRB099 20651 RPS 45255 b

1    (e) A special event retailer's license (not-for-profit)
2shall permit the licensee to purchase alcoholic liquors from an
3Illinois licensed distributor (unless the licensee purchases
4less than $500 of alcoholic liquors for the special event, in
5which case the licensee may purchase the alcoholic liquors from
6a licensed retailer) and shall allow the licensee to sell and
7offer for sale, at retail, alcoholic liquors for use or
8consumption, but not for resale in any form and only at the
9location and on the specific dates designated for the special
10event in the license. An applicant for a special event retailer
11license must (i) furnish with the application: (A) a resale
12number issued under Section 2c of the Retailers' Occupation Tax
13Act or evidence that the applicant is registered under Section
142a of the Retailers' Occupation Tax Act, (B) a current, valid
15exemption identification number issued under Section 1g of the
16Retailers' Occupation Tax Act, and a certification to the
17Commission that the purchase of alcoholic liquors will be a
18tax-exempt purchase, or (C) a statement that the applicant is
19not registered under Section 2a of the Retailers' Occupation
20Tax Act, does not hold a resale number under Section 2c of the
21Retailers' Occupation Tax Act, and does not hold an exemption
22number under Section 1g of the Retailers' Occupation Tax Act,
23in which event the Commission shall set forth on the special
24event retailer's license a statement to that effect; (ii)
25submit with the application proof satisfactory to the State
26Commission that the applicant will provide dram shop liability

 

 

SB3095 Engrossed- 74 -LRB099 20651 RPS 45255 b

1insurance in the maximum limits; and (iii) show proof
2satisfactory to the State Commission that the applicant has
3obtained local authority approval.
4    (f) A railroad license shall permit the licensee to import
5alcoholic liquors into this State from any point in the United
6States outside this State and to store such alcoholic liquors
7in this State; to make wholesale purchases of alcoholic liquors
8directly from manufacturers, foreign importers, and
9distributors and importing distributors from within or outside
10this State; and to store such alcoholic liquors in this State;
11provided that the above powers may be exercised only in
12connection with the importation, purchase or storage of
13alcoholic liquors to be sold or dispensed on a club, buffet,
14lounge or dining car operated on an electric, gas or steam
15railway in this State; and provided further, that railroad
16licensees exercising the above powers shall be subject to all
17provisions of Article VIII of this Act as applied to importing
18distributors. A railroad license shall also permit the licensee
19to sell or dispense alcoholic liquors on any club, buffet,
20lounge or dining car operated on an electric, gas or steam
21railway regularly operated by a common carrier in this State,
22but shall not permit the sale for resale of any alcoholic
23liquors to any licensee within this State. A license shall be
24obtained for each car in which such sales are made.
25    (g) A boat license shall allow the sale of alcoholic liquor
26in individual drinks, on any passenger boat regularly operated

 

 

SB3095 Engrossed- 75 -LRB099 20651 RPS 45255 b

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

 

 

SB3095 Engrossed- 76 -LRB099 20651 RPS 45255 b

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

 

 

SB3095 Engrossed- 77 -LRB099 20651 RPS 45255 b

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

 

 

SB3095 Engrossed- 78 -LRB099 20651 RPS 45255 b

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

 

 

SB3095 Engrossed- 79 -LRB099 20651 RPS 45255 b

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

 

 

SB3095 Engrossed- 80 -LRB099 20651 RPS 45255 b

1importing distributors and to no one else in this State;
2provided that (i) said non-resident dealer shall register with
3the Illinois Liquor Control Commission each and every brand of
4alcoholic liquor which it proposes to sell to Illinois
5licensees during the license period, (ii) it shall comply with
6all of the provisions of Section 6-9 hereof with respect to
7registration of such Illinois licensees as may be granted the
8right to sell such brands at wholesale, and (iii) the
9non-resident dealer shall comply with the provisions of
10Sections 6-5 and 6-6 of this Act to the same extent that these
11provisions apply to manufacturers.
12    (n) A brew pub license shall allow the licensee to only (i)
13manufacture up to 155,000 gallons of beer per year only on the
14premises specified in the license, (ii) make sales of the beer
15manufactured on the premises or, with the approval of the
16Commission, beer manufactured on another brew pub licensed
17premises that is wholly owned and operated by the same licensee
18to importing distributors, distributors, and to non-licensees
19for use and consumption, (iii) store the beer upon the
20premises, (iv) sell and offer for sale at retail from the
21licensed premises for off-premises consumption no more than
22155,000 gallons per year so long as such sales are only made
23in-person, (v) sell and offer for sale at retail for use and
24consumption on the premises specified in the license any form
25of alcoholic liquor purchased from a licensed distributor or
26importing distributor, and (vi) with the prior approval of the

 

 

SB3095 Engrossed- 81 -LRB099 20651 RPS 45255 b

1Commission, annually transfer no more than 155,000 gallons of
2beer manufactured on the premises to a licensed brew pub wholly
3owned and operated by the same licensee.
4    A brew pub licensee shall not under any circumstance sell
5or offer for sale beer manufactured by the brew pub licensee to
6retail licensees.
7    A person who holds a class 2 brewer license may
8simultaneously hold a brew pub license if the class 2 brewer
9(i) does not, under any circumstance, sell or offer for sale
10beer manufactured by the class 2 brewer to retail licensees;
11(ii) does not hold more than 3 brew pub licenses in this State;
12(iii) does not manufacture more than a combined 3,720,000
13gallons of beer per year, including the beer manufactured at
14the brew pub; and (iv) is not a member of or affiliated with,
15directly or indirectly, a manufacturer that produces more than
163,720,000 gallons of beer per year or any other alcoholic
17liquor.
18    Notwithstanding any other provision of this Act, a licensed
19brewer, class 2 brewer, or non-resident dealer who before July
201, 2015 manufactured less than than 3,720,000 gallons of beer
21per year and held a brew pub license on or before July 1, 2015
22may (i) continue to qualify for and hold that brew pub license
23for the licensed premises and (ii) manufacture more than
243,720,000 gallons of beer per year and continue to qualify for
25and hold that brew pub license if that brewer, class 2 brewer,
26or non-resident dealer does not simultaneously hold a class 1

 

 

SB3095 Engrossed- 82 -LRB099 20651 RPS 45255 b

1brewer license and is not a member of or affiliated with,
2directly or indirectly, a manufacturer that produces more than
33,720,000 gallons of beer per year or that produces any other
4alcoholic liquor.
5    (o) A caterer retailer license shall allow the holder to
6serve alcoholic liquors as an incidental part of a food service
7that serves prepared meals which excludes the serving of snacks
8as the primary meal, either on or off-site whether licensed or
9unlicensed.
10    (p) An auction liquor license shall allow the licensee to
11sell and offer for sale at auction wine and spirits for use or
12consumption, or for resale by an Illinois liquor licensee in
13accordance with provisions of this Act. An auction liquor
14license will be issued to a person and it will permit the
15auction liquor licensee to hold the auction anywhere in the
16State. An auction liquor license must be obtained for each
17auction at least 14 days in advance of the auction date.
18    (q) A special use permit license shall allow an Illinois
19licensed retailer to transfer a portion of its alcoholic liquor
20inventory from its retail licensed premises to the premises
21specified in the license hereby created, and to sell or offer
22for sale at retail, only in the premises specified in the
23license hereby created, the transferred alcoholic liquor for
24use or consumption, but not for resale in any form. A special
25use permit license may be granted for the following time
26periods: one day or less; 2 or more days to a maximum of 15 days

 

 

SB3095 Engrossed- 83 -LRB099 20651 RPS 45255 b

1per location in any 12 month period. An applicant for the
2special use permit license must also submit with the
3application proof satisfactory to the State Commission that the
4applicant will provide dram shop liability insurance to the
5maximum limits and have local authority approval.
6    (r) A winery shipper's license shall allow a person with a
7first-class or second-class wine manufacturer's license, a
8first-class or second-class wine-maker's license, or a limited
9wine manufacturer's license or who is licensed to make wine
10under the laws of another state to ship wine made by that
11licensee directly to a resident of this State who is 21 years
12of age or older for that resident's personal use and not for
13resale. Prior to receiving a winery shipper's license, an
14applicant for the license must provide the Commission with a
15true copy of its current license in any state in which it is
16licensed as a manufacturer of wine. An applicant for a winery
17shipper's license must also complete an application form that
18provides any other information the Commission deems necessary.
19The application form shall include an acknowledgement
20consenting to the jurisdiction of the Commission, the Illinois
21Department of Revenue, and the courts of this State concerning
22the enforcement of this Act and any related laws, rules, and
23regulations, including authorizing the Department of Revenue
24and the Commission to conduct audits for the purpose of
25ensuring compliance with Public Act 95-634 this amendatory Act.
26    A winery shipper licensee must pay to the Department of

 

 

SB3095 Engrossed- 84 -LRB099 20651 RPS 45255 b

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

 

 

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1investigate any complaint and impose any of the remedies
2specified in paragraph (1) of subsection (a) of Section 3-12.
3(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
498-756, eff. 7-16-14; 99-448, eff. 8-24-15; revised 10-27-15.)
 
5    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
6    Sec. 5-3. License fees. Except as otherwise provided
7herein, at the time application is made to the State Commission
8for a license of any class, the applicant shall pay to the
9State Commission the fee hereinafter provided for the kind of
10license applied for.
11    The fee for licenses issued by the State Commission shall
12be as follows:
13    For a manufacturer's license:
14    Class 1. Distiller .............................$3,600
15    Class 2. Rectifier .............................3,600
16    Class 3. Brewer ................................900
17    Class 4. First-class Wine Manufacturer .........600
18    Class 5. Second-class
19        Wine Manufacturer ..........................1,200
20    Class 6. First-class wine-maker ................600
21    Class 7. Second-class wine-maker ...............1200
22    Class 8. Limited Wine Manufacturer..............120
23    Class 9. Craft Distiller........................ 1,800
24    Class 10. Class 1 Brewer........................25
25    Class 11. Class 2 Brewer........................ 25

 

 

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1    For a Brew Pub License .........................1,050
2    For a caterer retailer's license................200
3    For a foreign importer's license ...............25
4    For an importing distributor's license ..........25
5    For a distributor's license ....................270
6    For a non-resident dealer's license
7        (500,000 gallons or over) ..................270
8    For a non-resident dealer's license
9        (under 500,000 gallons) ....................90
10    For a wine-maker's premises license ............100
11    For a winery shipper's license
12        (under 250,000 gallons).....................150
13    For a winery shipper's license
14        (250,000 or over, but under 500,000 gallons).500
15    For a winery shipper's license
16        (500,000 gallons or over)...................1,000
17    For a wine-maker's premises license,
18        second location ............................350
19    For a wine-maker's premises license,
20        third location .............................350
21    For a retailer's license .......................500
22    For a special event retailer's license,
23        (not-for-profit) ...........................25
24    For a special use permit license,
25        one day only ...............................50
26        2 days or more .............................100

 

 

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1    For a railroad license .........................60
2    For a boat license .............................180
3    For an airplane license, times the
4        licensee's maximum number of aircraft
5        in flight, serving liquor over the
6        State at any given time, which either
7        originate, terminate, or make
8        an intermediate stop in the State ..........60
9    For a non-beverage user's license:
10        Class 1 ....................................24
11        Class 2 ....................................60
12        Class 3 ....................................120
13        Class 4 ....................................240
14        Class 5 ....................................600
15    For a broker's license .........................600
16    For an auction liquor license ..................50
17    For a homebrewer special event permit........... 25
18    Fees collected under this Section shall be paid into the
19Dram Shop Fund. On and after July 1, 2003, of the funds
20received for a retailer's license, in addition to the first
21$175, an additional $75 shall be paid into the Dram Shop Fund,
22and $250 shall be paid into the General Revenue Fund. Beginning
23June 30, 1990 and on June 30 of each subsequent year through
24June 29, 2003, any balance over $5,000,000 remaining in the
25Dram Shop Fund shall be credited to State liquor licensees and
26applied against their fees for State liquor licenses for the

 

 

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1following year. The amount credited to each licensee shall be a
2proportion of the balance in the Dram Fund that is the same as
3the proportion of the license fee paid by the licensee under
4this Section for the period in which the balance was
5accumulated to the aggregate fees paid by all licensees during
6that period.
7    No fee shall be paid for licenses issued by the State
8Commission to the following non-beverage users:
9        (a) Hospitals, sanitariums, or clinics when their use
10    of alcoholic liquor is exclusively medicinal, mechanical
11    or scientific.
12        (b) Universities, colleges of learning or schools when
13    their use of alcoholic liquor is exclusively medicinal,
14    mechanical or scientific.
15        (c) Laboratories when their use is exclusively for the
16    purpose of scientific research.
17(Source: P.A. 98-55, eff. 7-5-13; 99-448, eff. 8-24-15.)
 
18    (235 ILCS 5/6-2)  (from Ch. 43, par. 120)
19    Sec. 6-2. Issuance of licenses to certain persons
20prohibited.
21    (a) Except as otherwise provided in subsection (b) of this
22Section and in paragraph (1) of subsection (a) of Section 3-12,
23no license of any kind issued by the State Commission or any
24local commission shall be issued to:
25        (1) A person who is not a resident of any city, village

 

 

SB3095 Engrossed- 89 -LRB099 20651 RPS 45255 b

1    or county in which the premises covered by the license are
2    located; except in case of railroad or boat licenses.
3        (2) A person who is not of good character and
4    reputation in the community in which he resides.
5        (3) A person who is not a citizen of the United States.
6        (4) A person who has been convicted of a felony under
7    any Federal or State law, unless the Commission determines
8    that such person has been sufficiently rehabilitated to
9    warrant the public trust after considering matters set
10    forth in such person's application and the Commission's
11    investigation. The burden of proof of sufficient
12    rehabilitation shall be on the applicant.
13        (5) A person who has been convicted of keeping a place
14    of prostitution or keeping a place of juvenile
15    prostitution, promoting prostitution that involves keeping
16    a place of prostitution, or promoting juvenile
17    prostitution that involves keeping a place of juvenile
18    prostitution.
19        (6) A person who has been convicted of pandering or
20    other crime or misdemeanor opposed to decency and morality.
21        (7) A person whose license issued under this Act has
22    been revoked for cause.
23        (8) A person who at the time of application for renewal
24    of any license issued hereunder would not be eligible for
25    such license upon a first application.
26        (9) A copartnership, if any general partnership

 

 

SB3095 Engrossed- 90 -LRB099 20651 RPS 45255 b

1    thereof, or any limited partnership thereof, owning more
2    than 5% of the aggregate limited partner interest in such
3    copartnership would not be eligible to receive a license
4    hereunder for any reason other than residence within the
5    political subdivision, unless residency is required by
6    local ordinance.
7        (10) A corporation or limited liability company, if any
8    member, officer, manager or director thereof, or any
9    stockholder or stockholders owning in the aggregate more
10    than 5% of the stock of such corporation, would not be
11    eligible to receive a license hereunder for any reason
12    other than citizenship and residence within the political
13    subdivision.
14        (10a) A corporation or limited liability company
15    unless it is incorporated or organized in Illinois, or
16    unless it is a foreign corporation or foreign limited
17    liability company which is qualified under the Business
18    Corporation Act of 1983 or the Limited Liability Company
19    Act to transact business in Illinois. The Commission shall
20    permit and accept from an applicant for a license under
21    this Act proof prepared from the Secretary of State's
22    website that the corporation or limited liability company
23    is in good standing and is qualified under the Business
24    Corporation Act of 1983 or the Limited Liability Company
25    Act to transact business in Illinois.
26        (11) A person whose place of business is conducted by a

 

 

SB3095 Engrossed- 91 -LRB099 20651 RPS 45255 b

1    manager or agent unless the manager or agent possesses the
2    same qualifications required by the licensee.
3        (12) A person who has been convicted of a violation of
4    any Federal or State law concerning the manufacture,
5    possession or sale of alcoholic liquor, subsequent to the
6    passage of this Act or has forfeited his bond to appear in
7    court to answer charges for any such violation.
8        (13) A person who does not beneficially own the
9    premises for which a license is sought, or does not have a
10    lease thereon for the full period for which the license is
11    to be issued.
12        (14) Any law enforcing public official, including
13    members of local liquor control commissions, any mayor,
14    alderman, or member of the city council or commission, any
15    president of the village board of trustees, any member of a
16    village board of trustees, or any president or member of a
17    county board; and no such official shall have a direct
18    interest in the manufacture, sale, or distribution of
19    alcoholic liquor, except that a license may be granted to
20    such official in relation to premises that are not located
21    within the territory subject to the jurisdiction of that
22    official if the issuance of such license is approved by the
23    State Liquor Control Commission and except that a license
24    may be granted, in a city or village with a population of
25    55,000 or less, to any alderman, member of a city council,
26    or member of a village board of trustees in relation to

 

 

SB3095 Engrossed- 92 -LRB099 20651 RPS 45255 b

1    premises that are located within the territory subject to
2    the jurisdiction of that official if (i) the sale of
3    alcoholic liquor pursuant to the license is incidental to
4    the selling of food, (ii) the issuance of the license is
5    approved by the State Commission, (iii) the issuance of the
6    license is in accordance with all applicable local
7    ordinances in effect where the premises are located, and
8    (iv) the official granted a license does not vote on
9    alcoholic liquor issues pending before the board or council
10    to which the license holder is elected. Notwithstanding any
11    provision of this paragraph (14) to the contrary, an
12    alderman or member of a city council or commission, a
13    member of a village board of trustees other than the
14    president of the village board of trustees, or a member of
15    a county board other than the president of a county board
16    may have a direct interest in the manufacture, sale, or
17    distribution of alcoholic liquor as long as he or she is
18    not a law enforcing public official, a mayor, a village
19    board president, or president of a county board. To prevent
20    any conflict of interest, the elected official with the
21    direct interest in the manufacture, sale, or distribution
22    of alcoholic liquor shall not participate in any meetings,
23    hearings, or decisions on matters impacting the
24    manufacture, sale, or distribution of alcoholic liquor.
25    Furthermore, the mayor of a city with a population of
26    55,000 or less or the president of a village with a

 

 

SB3095 Engrossed- 93 -LRB099 20651 RPS 45255 b

1    population of 55,000 or less may have an interest in the
2    manufacture, sale, or distribution of alcoholic liquor as
3    long as the council or board over which he or she presides
4    has made a local liquor control commissioner appointment
5    that complies with the requirements of Section 4-2 of this
6    Act.
7        (15) A person who is not a beneficial owner of the
8    business to be operated by the licensee.
9        (16) A person who has been convicted of a gambling
10    offense as proscribed by any of subsections (a) (3) through
11    (a) (11) of Section 28-1 of, or as proscribed by Section
12    28-1.1 or 28-3 of, the Criminal Code of 1961 or the
13    Criminal Code of 2012, or as proscribed by a statute
14    replaced by any of the aforesaid statutory provisions.
15        (17) A person or entity to whom a federal wagering
16    stamp has been issued by the federal government, unless the
17    person or entity is eligible to be issued a license under
18    the Raffles and Poker Runs Act or the Illinois Pull Tabs
19    and Jar Games Act.
20        (18) A person who intends to sell alcoholic liquors for
21    use or consumption on his or her licensed retail premises
22    who does not have liquor liability insurance coverage for
23    that premises in an amount that is at least equal to the
24    maximum liability amounts set out in subsection (a) of
25    Section 6-21.
26        (19) A person who is licensed by any licensing

 

 

SB3095 Engrossed- 94 -LRB099 20651 RPS 45255 b

1    authority as a manufacturer of beer, or any partnership,
2    corporation, limited liability company, or trust or any
3    subsidiary, affiliate, or agent thereof, or any other form
4    of business enterprise licensed as a manufacturer of beer,
5    having any legal, equitable, or beneficial interest,
6    directly or indirectly, in a person licensed in this State
7    as a distributor or importing distributor. For purposes of
8    this paragraph (19), a person who is licensed by any
9    licensing authority as a "manufacturer of beer" shall also
10    mean a brewer and a non-resident dealer who is also a
11    manufacturer of beer, including a partnership,
12    corporation, limited liability company, or trust or any
13    subsidiary, affiliate, or agent thereof, or any other form
14    of business enterprise licensed as a manufacturer of beer.
15        (20) A person who is licensed in this State as a
16    distributor or importing distributor, or any partnership,
17    corporation, limited liability company, or trust or any
18    subsidiary, affiliate, or agent thereof, or any other form
19    of business enterprise licensed in this State as a
20    distributor or importing distributor having any legal,
21    equitable, or beneficial interest, directly or indirectly,
22    in a person licensed as a manufacturer of beer by any
23    licensing authority, or any partnership, corporation,
24    limited liability company, or trust or any subsidiary,
25    affiliate, or agent thereof, or any other form of business
26    enterprise, except for a person who owns, on or after the

 

 

SB3095 Engrossed- 95 -LRB099 20651 RPS 45255 b

1    effective date of this amendatory Act of the 98th General
2    Assembly, no more than 5% of the outstanding shares of a
3    manufacturer of beer whose shares are publicly traded on an
4    exchange within the meaning of the Securities Exchange Act
5    of 1934. For the purposes of this paragraph (20), a person
6    who is licensed by any licensing authority as a
7    "manufacturer of beer" shall also mean a brewer and a
8    non-resident dealer who is also a manufacturer of beer,
9    including a partnership, corporation, limited liability
10    company, or trust or any subsidiary, affiliate, or agent
11    thereof, or any other form of business enterprise licensed
12    as a manufacturer of beer.
13    (b) A criminal conviction of a corporation is not grounds
14for the denial, suspension, or revocation of a license applied
15for or held by the corporation if the criminal conviction was
16not the result of a violation of any federal or State law
17concerning the manufacture, possession or sale of alcoholic
18liquor, the offense that led to the conviction did not result
19in any financial gain to the corporation and the corporation
20has terminated its relationship with each director, officer,
21employee, or controlling shareholder whose actions directly
22contributed to the conviction of the corporation. The
23Commission shall determine if all provisions of this subsection
24(b) have been met before any action on the corporation's
25license is initiated.
26(Source: P.A. 97-1059, eff. 8-24-12; 97-1150, eff. 1-25-13;

 

 

SB3095 Engrossed- 96 -LRB099 20651 RPS 45255 b

198-10, eff. 5-6-13; 98-21, eff. 6-13-13; 98-644, eff. 6-10-14;
298-756, eff. 7-16-14.)
 
3    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
4    Sec. 6-4. (a) No person licensed by any licensing authority
5as a distiller, or a wine manufacturer, or any subsidiary or
6affiliate thereof, or any officer, associate, member, partner,
7representative, employee, agent or shareholder owning more
8than 5% of the outstanding shares of such person shall be
9issued a an importing distributor's or distributor's license,
10nor shall any person licensed by any licensing authority as a
11an importing distributor, distributor or retailer, or any
12subsidiary or affiliate thereof, or any officer or associate,
13member, partner, representative, employee, agent or
14shareholder owning more than 5% of the outstanding shares of
15such person be issued a distiller's license or a wine
16manufacturer's license; and no person or persons licensed as a
17distiller by any licensing authority shall have any interest,
18directly or indirectly, with such distributor or importing
19distributor.
20    However, an importing distributor or distributor, which on
21January 1, 1985 is owned by a brewer, or any subsidiary or
22affiliate thereof or any officer, associate, member, partner,
23representative, employee, agent or shareholder owning more
24than 5% of the outstanding shares of the importing distributor
25or distributor referred to in this paragraph, may own or

 

 

SB3095 Engrossed- 97 -LRB099 20651 RPS 45255 b

1acquire an ownership interest of more than 5% of the
2outstanding shares of a wine manufacturer and be issued a wine
3manufacturer's license by any licensing authority.
4    (b) The foregoing provisions shall not apply to any person
5licensed by any licensing authority as a distiller or wine
6manufacturer, or to any subsidiary or affiliate of any
7distiller or wine manufacturer who shall have been heretofore
8licensed by the State Commission as either an importing
9distributor or distributor during the annual licensing period
10expiring June 30, 1947, and shall actually have made sales
11regularly to retailers.
12    (c) Provided, however, that in such instances where a
13distributor's or importing distributor's license has been
14issued to any distiller or wine manufacturer or to any
15subsidiary or affiliate of any distiller or wine manufacturer
16who has, during the licensing period ending June 30, 1947, sold
17or distributed as such licensed distributor or importing
18distributor alcoholic liquors and wines to retailers, such
19distiller or wine manufacturer or any subsidiary or affiliate
20of any distiller or wine manufacturer holding such
21distributor's or importing distributor's license may continue
22to sell or distribute to retailers such alcoholic liquors and
23wines which are manufactured, distilled, processed or marketed
24by distillers and wine manufacturers whose products it sold or
25distributed to retailers during the whole or any part of its
26licensing periods; and such additional brands and additional

 

 

SB3095 Engrossed- 98 -LRB099 20651 RPS 45255 b

1products may be added to the line of such distributor or
2importing distributor, provided, that such brands and such
3products were not sold or distributed by any distributor or
4importing distributor licensed by the State Commission during
5the licensing period ending June 30, 1947, but can not sell or
6distribute to retailers any other alcoholic liquors or wines.
7    (d) It shall be unlawful for any distiller licensed
8anywhere to have any stock ownership or interest in any
9distributor's or importing distributor's license wherein any
10other person has an interest therein who is not a distiller and
11does not own more than 5% of any stock in any distillery.
12Nothing herein contained shall apply to such distillers or
13their subsidiaries or affiliates, who had a distributor's or
14importing distributor's license during the licensing period
15ending June 30, 1947, which license was owned in whole by such
16distiller, or subsidiaries or affiliates of such distiller.
17    (e) Any person licensed as a brewer, class 1 brewer, or
18class 2 brewer shall be permitted to sell on the licensed
19premises to non-licensees for on or off-premises consumption
20for the premises in which he or she actually conducts such
21business beer manufactured by the brewer, class 1 brewer, or
22class 2 brewer. Such sales shall be limited to on-premises,
23in-person sales only, for lawful consumption on or off
24premises. Such authorization shall be considered a privilege
25granted by the brewer license and, other than a manufacturer of
26beer as stated above, no manufacturer or distributor or

 

 

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1importing distributor, excluding airplane licensees exercising
2powers provided in paragraph (i) of Section 5-1 of this Act, or
3any subsidiary or affiliate thereof, or any officer, associate,
4member, partner, representative, employee or agent, or
5shareholder shall be issued a retailer's license, nor shall any
6person having a retailer's license, excluding airplane
7licensees exercising powers provided in paragraph (i) of
8Section 5-1 of this Act, or any subsidiary or affiliate
9thereof, or any officer, associate, member, partner,
10representative or agent, or shareholder be issued a
11manufacturer's license or importing distributor's license.
12    A person who holds a class 1 or class 2 brewer license and
13is authorized by this Section to sell beer to non-licensees
14shall not sell beer to non-licensees from more than 3 total
15brewer or commonly owned brew pub licensed locations in this
16State. The class 1 or class 2 brewer shall designate to the
17State Commission the brewer or brew pub locations from which it
18will sell beer to non-licensees.
19    A person licensed as a craft distiller not affiliated with
20any other person manufacturing spirits may be authorized by the
21Commission to sell up to 2,500 gallons of spirits produced by
22the person to non-licensees for on or off-premises consumption
23for the premises in which he or she actually conducts business
24permitting only the retail sale of spirits manufactured at such
25premises. Such sales shall be limited to on-premises, in-person
26sales only, for lawful consumption on or off premises, and such

 

 

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1authorization shall be considered a privilege granted by the
2craft distiller license. A craft distiller licensed for retail
3sale shall secure liquor liability insurance coverage in an
4amount at least equal to the maximum liability amounts set
5forth in subsection (a) of Section 6-21 of this Act.
6    (f) (Blank).
7    (g) Notwithstanding any of the foregoing prohibitions, a
8limited wine manufacturer may sell at retail at its
9manufacturing site for on or off premises consumption and may
10sell to distributors. A limited wine manufacturer licensee
11shall secure liquor liability insurance coverage in an amount
12at least equal to the maximum liability amounts set forth in
13subsection (a) of Section 6-21 of this Act.
14    (h) The changes made to this Section by Public Act 99-47
15this amendatory Act of the 99th General Assembly shall not
16diminish or impair the rights of any person, whether a
17distiller, wine manufacturer, agent, or affiliate thereof, who
18requested in writing and submitted documentation to the State
19Commission on or before February 18, 2015 to be approved for a
20retail license pursuant to what has heretofore been subsection
21(f); provided that, on or before that date, the State
22Commission considered the intent of that person to apply for
23the retail license under that subsection and, by recorded vote,
24the State Commission approved a resolution indicating that such
25a license application could be lawfully approved upon that
26person duly filing a formal application for a retail license

 

 

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1and if that person, within 90 days of the State Commission
2appearance and recorded vote, first filed an application with
3the appropriate local commission, which application was
4subsequently approved by the appropriate local commission
5prior to consideration by the State Commission of that person's
6application for a retail license. It is further provided that
7the State Commission may approve the person's application for a
8retail license or renewals of such license if such person
9continues to diligently adhere to all representations made in
10writing to the State Commission on or before February 18, 2015,
11or thereafter, or in the affidavit filed by that person with
12the State Commission to support the issuance of a retail
13license and to abide by all applicable laws and duly adopted
14rules.
15(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
16revised 10-30-15.)
 
17    (235 ILCS 5/6-4.5)
18    Sec. 6-4.5. Prohibited ownership interests in a
19distributor, importing distributor, manufacturer of beer, or
20non-resident dealer.
21    (a) The General Assembly finds, consistent with Section
226-1.5, that the 3-tier regulatory system is designed to prevent
23a manufacturer of beer as described in paragraph (19) of
24subsection (a) of Section 6-2 from exercising vertical
25integration between a manufacturer of beer and a distributor or

 

 

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1importing distributor through any ownership interest, or
2through control of the distributor or importing distributor.
3The General Assembly further finds, consistent with Section
46-1.5, that the 3-tier regulatory system is designed to prevent
5a distributor or importing distributor as described in
6paragraph (20) of subsection (a) of Section 6-2 from having any
7ownership interest in a manufacturer of beer as described in
8paragraph (20) of subsection (a) of Section 6-2 except for the
9ownership of no more than 5% of the outstanding shares of a
10manufacturer of beer whose shares are publicly traded on an
11exchange within the meaning of the Securities Exchange Act of
121934. The General Assembly further finds that it is necessary
13to have the State Commission undertake an expedited
14investigation, in accordance with procedural due process, to
15determine whether any existing manufacturer of beer described
16in paragraph (19) of subsection (a) of Section 6-2 or any
17existing distributor or importing distributor described in
18paragraph (20) of subsection (a) of Section 6-2 owns a
19prohibited ownership interest, and an orderly process by which
20an existing manufacturer of beer, distributor, or importing
21distributor may divest itself of or sever the prohibited
22ownership interest by no later than January 1, 2015.
23    (b) Notwithstanding any provision of this Act to the
24contrary, no person licensed as a manufacturer of beer as
25described in paragraph (19) of subsection (a) of Section 6-2
26shall have any prohibited ownership interest, directly or

 

 

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1indirectly, in a person licensed as a distributor or importing
2distributor. Any person who holds a prohibited ownership
3interest in a person licensed as a distributor or importing
4distributor prior to this amendatory Act of the 98th General
5Assembly shall, in accordance with paragraph (19) of subsection
6(a) of Section 6-2, be ineligible to receive or hold any
7license issued by the State Commission, unless that person
8complies with the provisions of this Section.
9    (c) Notwithstanding any provision of this Act to the
10contrary, no person licensed in this State as a distributor or
11importing distributor as described in paragraph (20) of
12subsection (a) of Section 6-2 shall have any prohibited
13ownership interest, directly or indirectly, in a person
14licensed as a manufacturer of beer as described in paragraph
15(20) of subsection (a) of Section 6-2. Any person who holds an
16interest in a person licensed as a distributor or importing
17distributor in this State prior to this amendatory Act of the
1898th General Assembly shall, in accordance with paragraph (20)
19of subsection (a) of Section 6-2, be ineligible to receive or
20hold a license by the State Commission, unless the person
21complies with the provisions of this Section. This subsection
22(c) shall not apply to a person who owns, on or after the
23effective date of this amendatory Act of the 98th General
24Assembly, no more than 5% of the outstanding shares of a
25manufacturer of beer whose shares are publicly traded on an
26exchange within the meaning of the Securities Exchange Act of

 

 

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11934.
2    (d) Within 30 days after the effective date of this
3amendatory Act of the 98th General Assembly, the State
4Commission shall notify in writing all persons licensed by the
5State Commission as a manufacturer of beer, as described in
6paragraph (19) of subsection (a) of Section 6-2 of the
7prohibited ownership interest provision set forth in
8subsection (b) of this Section and paragraph (19) of subsection
9(a) of Section 6-2. Also within 30 days after the effective
10date of this amendatory Act of the 98th General Assembly, the
11State Commission shall notify in writing all persons licensed
12by the State Commission as a distributor or importing
13distributor of the prohibited ownership interest provision set
14forth in subsection (c) of this Section and paragraph (20) of
15subsection (a) of Section 6-2. The notice provided by the State
16Commission shall also state for a manufacturer of beer, as
17described in paragraph (19) of subsection (a) of Section 6-2,
18that it is required to disclose in writing any ownership
19interest it directly or indirectly possesses in a distributor
20or importing distributor, as described in paragraph (20) of
21subsection (a) of Section 6-2, the type and amount of ownership
22interest possessed by it, the length of time the manufacturer
23of beer has held the ownership interest in the distributor or
24importing distributor, and any other information specified by
25the State Commission in its written notice. The notice provided
26by the State Commission shall also state for a distributor or

 

 

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1importing distributor, as described in paragraph (20) of
2subsection (a) of Section 6-2, that it is required to disclose
3in writing any ownership interest it directly or indirectly
4possesses in a manufacturer of beer, as described in paragraph
5(19) of subsection (a) of Section 6-2, the type and amount of
6ownership interest possessed by it, the length of time the
7manufacturer of beer has held the ownership interest in the
8distributor or importing distributor, and any other
9information specified by the State Commission in its written
10notice.
11    (e) Within 60 days after the effective date of this
12amendatory Act of the 98th General Assembly, each manufacturer
13of beer, distributor, or importing distributor subject to
14notification under subsection (d) of this Section shall
15disclose in writing and under oath the relevant ownership
16interest and other required information specified in the
17notification provided by the State Commission pursuant to that
18subsection. The written disclosure shall, as a mandatory
19obligation, be tendered to the State Commission by either
20personal service or via certified or registered mail at the
21State Commission's Springfield or Chicago office on or before
22the 60th day during regular business hours. Failure to tender
23the required written disclosure shall result in the immediate
24entry of an order by the State Commission suspending the
25licensee's license within 5 days after the 60th day, and the
26initiation of proceedings by the State Commission to enter an

 

 

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1order to permanently revoke the licensee's license no later
2than 45 days after providing the licensee with notice and an
3opportunity for a hearing. Whenever the State Commission has
4reason to believe that a person has failed to comply with the
5Commission notice under this Section, it shall notify the
6Department of Revenue and the Attorney General, and shall file
7a complaint with the State's Attorney of the county where the
8alcoholic liquor was delivered or with appropriate law
9enforcement officials. Failure to make the written disclosure
10required under this subsection shall constitute a business
11offense for which the person shall be fined not more than
12$5,000 for a first offense, not more than $10,000 for a second
13offense, and not more than $15,000 for a third or subsequent
14offense.
15    (f) Within 180 days after the effective date of this
16amendatory Act of the 98th General Assembly, the State
17Commission shall review each of the disclosures tendered to the
18State Commission by licensees pursuant to subsection (e) and
19enter an order determining whether or not each licensee is in
20compliance with subsection (b) or (c) of this Section,
21whichever is applicable, after providing each licensee with
22notice and an opportunity for a hearing. As part of making its
23determination, the State Commission shall also consider any
24information otherwise admissible under Section 10-40 of the
25Illinois Administrative Procedure Act.
26    (g) If the State Commission determines, based on a

 

 

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1preponderance of record evidence, that a manufacturer of beer,
2distributor, or importing distributor has no prohibited
3ownership interest in a licensee in violation of subsection (b)
4or (c) of this Section, then the State Commission shall enter
5an order finding that the manufacturer of beer, distributor, or
6importing distributor is in compliance with this Section,
7record the matter as closed, and serve a copy of the order of
8compliance on the licensee and each person with an ownership
9interest in the licensee.
10    If the State Commission determines, based on a
11preponderance of record evidence, that a manufacturer of beer,
12as described in paragraph (19) of subsection (a) of Section
136-2, has a prohibited ownership interest as set forth in
14subsection (b) of this Section, then the State Commission shall
15enter an order finding that the manufacturer of beer is not in
16compliance with this Section and that the manufacturer of beer
17shall divest itself of that interest on or before January 1,
182015, subject to the State Commission's approval of the
19successive owner pursuant to the State Commission's authority
20provided in this Act. In addition, the State Commission shall
21find that the relevant distributor or importing distributor is
22not in compliance with this Section and that the distributor or
23importing distributor is required to sever the prohibited
24ownership interest possessed by the relevant manufacturer of
25beer on or before January 1, 2015, subject to the State
26Commission's approval of the successive owner pursuant to the

 

 

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1State Commission's authority provided in this Act.
2    If the State Commission determines, based on a
3preponderance of record evidence, that a distributor or
4importing distributor, as described in paragraph (20) of
5subsection (a) of Section 6-2, has a prohibited ownership
6interest as set forth in subsection (c) of this Section, then
7the State Commission shall enter an order finding that the
8relevant distributor or importing distributor is not in
9compliance with this Section and that the relevant distributor
10or importing distributor shall divest itself of that interest
11on or before January 1, 2015, subject to the State Commission's
12approval of the successive owner pursuant to the State
13Commission's authority provided in this Act. In addition, the
14State Commission shall find that the manufacturer of beer is
15not in compliance with this Section and that the manufacturer
16of beer shall sever the prohibited ownership interest possessed
17by the distributor or importing distributor on or before
18January 1, 2015, subject to the State Commission's approval of
19the successive owner pursuant to the State Commission's
20authority provided in this Act.
21    The State Commission's order shall further find that the
22continued ownership of the prohibited ownership interest
23beyond January 1, 2015 by the manufacturer of beer,
24distributor, or importing distributor is against the public
25interest and a violation of this Section and Section 6-1.5 of
26the Act.

 

 

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1    The State Commission's order shall further find for a
2manufacturer of beer, as described in paragraph (19) of
3subsection (a) of Section 6-2, found in non-compliance with
4subsection (b) of this Section that its license is revoked on
5January 16, 2015 as to the transport, transfer, or sale of any
6alcoholic liquor to the relevant distributor or importing
7distributor that the manufacturer of beer has a prohibited
8ownership interest in if that interest is not properly divested
9on January 1, 2015, subject to the State Commission's approval
10of the successive owner pursuant to the State Commission's
11authority provided in this Act. In addition, the State
12Commission shall find that the license of a distributor or
13importing distributor that is subject to the prohibited
14ownership interest of the manufacturer of beer is revoked on
15January 16, 2015 as to the transport, transfer, or sale of
16alcoholic liquor from the relevant manufacturer of beer to any
17retailer if that ownership interest is not properly severed on
18January 1, 2015, subject to the State Commission's approval of
19the successive owner pursuant to the State Commission's
20authority provided in this Act.
21    The State Commission's order shall further find for a
22distributor or importing distributor, as described in
23paragraph (20) of subsection (a) of Section 6-2, found in
24non-compliance with subsection (c) of this Section, that its
25license is revoked on January 16, 2015 as to the transport,
26transfer, or sale of any alcoholic liquor from the relevant

 

 

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1manufacturer of beer to any retailer if that prohibited
2ownership interest in the manufacturer of beer is not properly
3divested on January 1, 2015, subject to the State Commission's
4approval of the successive owner pursuant to the State
5Commission's authority provided in this Act. In addition, the
6State Commission shall find that the license of the
7manufacturer of beer that is subject to the prohibited
8ownership interest of a distributor or importing distributor is
9revoked on January 16, 2015 as to the transport, transfer, or
10sale of alcoholic liquor to the distributor or importing
11distributor if that ownership interest is not properly severed
12on January 1, 2015, subject to the State Commission's approval
13of the successive owner pursuant to the State Commission's
14authority provided in this Act.
15    The State Commission shall serve a copy of the order of
16non-compliance on the licensee and each person with an
17ownership interest in the licensee.
18    (h) If a person with a prohibited ownership interest in a
19licensee under subsection (b) or (c) of this Section succeeds
20in divesting itself of or severing that interest and obtains
21the State Commission's approval of the successive owner
22pursuant to its authority provided in this Act on or before
23January 1, 2015, then the State Commission shall enter an order
24finding that the licensee is in compliance, record the matter
25as closed, and serve a copy of the order of compliance on the
26licensee and each person with an ownership interest in the

 

 

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1licensee.
2    If a person with a prohibited ownership interest in
3violation of subsection (b) or (c) of this Section fails to
4divest itself of or sever that interest and obtain the State
5Commission's approval of the successive owner pursuant to the
6State Commission's authority provided in this Act on or before
7January 1, 2015, then the State Commission shall, after notice
8and an opportunity for a hearing, revoke each licensee's
9license as specified in subsection (g) of this Section on
10January 16, 2015. The State Commission, when entering the
11order, shall give notice to the person by certified mail to
12cease and desist all shipments of alcoholic liquor into or
13within this State and to withdraw from this State within 5
14working days after receipt of the notice all shipments of
15alcoholic liquor in transit. Whenever the State Commission has
16reason to believe that a person has failed to comply with the
17State Commission's notice under this Section, it shall notify
18the Department of Revenue and the Attorney General, and shall
19file a complaint with the State's Attorney of the county where
20the alcoholic liquor was delivered, or with appropriate law
21enforcement officials. Failure to comply with the notice issued
22by the State Commission under this Section is against the
23public interest and constitutes a business offense for which
24the person shall be fined not more than $5,000 for a first
25offense, not more than $10,000 for a second offense, and not
26more than $15,000 for a third or subsequent offense. Each

 

 

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1shipment or transfer of alcoholic liquor in violation of the
2cease and desist notice shall constitute a separate offense.
3    (i) The power and authority granted to the State Commission
4under this Section is in addition to any existing power or
5authority the State Commission has under this Act and its
6exercise shall be accorded precedence on the State Commission's
7meeting agenda so as to fully accommodate the schedule for any
8proceeding under the provisions of this Section. Nothing in
9this Act shall be construed as limiting or otherwise impairing
10the ability of the State Commission to conduct future
11investigations and proceedings sua sponte or pursuant to a
12complaint to ensure compliance with this Section or paragraph
13(19) or (20) of subsection (a) of Section 6-2 of this Act. Any
14future investigations and proceedings shall be conducted by the
15State Commission on an expedited basis and pursuant to an
16initiating order entered by the State Commission. The State
17Commission shall enter its initiating order within 30 days
18after the receipt of a complaint. The initiating order shall
19set forth a schedule by which the required notices,
20disclosures, determinations, or orders specified in
21subsections (d), (e), (f), (g), and (h) shall be made or
22entered, and the period of time by which a licensee shall
23divest itself of or sever a prohibited ownership interest,
24which shall be no later than 540 days after the entry of the
25initiating order.
26    (j) Any association or non-profit corporation representing

 

 

SB3095 Engrossed- 113 -LRB099 20651 RPS 45255 b

1beer distributors in this State shall have standing to
2intervene and otherwise participate as a party in any
3proceeding undertaken by the State Commission under this
4Section to review and determine compliance or non-compliance
5with this Section.
6    (k) For purposes of this Section, the term "ownership
7interest" means a legal, equitable, or beneficial interest
8recognized under Illinois law. The term "prohibited ownership
9interest" means an ownership interest in a distributor,
10importing distributor, or manufacturer of beer as specified in
11this Section.
12(Source: P.A. 98-21, eff. 6-13-13.)
 
13    (235 ILCS 5/6-5)  (from Ch. 43, par. 122)
14    Sec. 6-5. Except as otherwise provided in this Section, it
15is unlawful for any person having a retailer's license or any
16officer, associate, member, representative or agent of such
17licensee to accept, receive or borrow money, or anything else
18of value, or accept or receive credit (other than merchandising
19credit in the ordinary course of business for a period not to
20exceed 30 days) directly or indirectly from any manufacturer,
21importing distributor or distributor of alcoholic liquor, or
22from any person connected with or in any way representing, or
23from any member of the family of, such manufacturer, importing
24distributor, distributor or wholesaler, or from any
25stockholders in any corporation engaged in manufacturing,

 

 

SB3095 Engrossed- 114 -LRB099 20651 RPS 45255 b

1distributing or wholesaling of such liquor, or from any
2officer, manager, agent or representative of said
3manufacturer. Except as provided below, it is unlawful for any
4manufacturer or distributor or importing distributor to give or
5lend money or anything of value, or otherwise loan or extend
6credit (except such merchandising credit) directly or
7indirectly to any retail licensee or to the manager,
8representative, agent, officer or director of such licensee. A
9manufacturer or , distributor or importing distributor may
10furnish free advertising, posters, signs, brochures,
11hand-outs, or other promotional devices or materials to any
12unit of government owning or operating any auditorium,
13exhibition hall, recreation facility or other similar facility
14holding a retailer's license, provided that the primary purpose
15of such promotional devices or materials is to promote public
16events being held at such facility. A unit of government owning
17or operating such a facility holding a retailer's license may
18accept such promotional devices or materials designed
19primarily to promote public events held at the facility. No
20retail licensee delinquent beyond the 30 day period specified
21in this Section shall solicit, accept or receive credit,
22purchase or acquire alcoholic liquors, directly or indirectly
23from any other licensee, and no manufacturer or , distributor or
24importing distributor shall knowingly grant or extend credit,
25sell, furnish or supply alcoholic liquors to any such
26delinquent retail licensee; provided that the purchase price of

 

 

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1all beer sold to a retail licensee shall be paid by the retail
2licensee in cash on or before delivery of the beer, and unless
3the purchase price payable by a retail licensee for beer sold
4to him in returnable bottles shall expressly include a charge
5for the bottles and cases, the retail licensee shall, on or
6before delivery of such beer, pay the seller in cash a deposit
7in an amount not less than the deposit required to be paid by
8the distributor to the brewer; but where the brewer sells
9direct to the retailer, the deposit shall be an amount no less
10than that required by the brewer from his own distributors; and
11provided further, that in no instance shall this deposit be
12less than 50 cents for each case of beer in pint or smaller
13bottles and 60 cents for each case of beer in quart or
14half-gallon bottles; and provided further, that the purchase
15price of all beer sold to a an importing distributor or
16distributor shall be paid by such importing distributor or
17distributor in cash on or before the 15th day (Sundays and
18holidays excepted) after delivery of such beer to such
19purchaser; and unless the purchase price payable by such
20importing distributor or distributor for beer sold in
21returnable bottles and cases shall expressly include a charge
22for the bottles and cases, such importing distributor or
23distributor shall, on or before the 15th day (Sundays and
24holidays excepted) after delivery of such beer to such
25purchaser, pay the seller in cash a required amount as a
26deposit to assure the return of such bottles and cases. Nothing

 

 

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1herein contained shall prohibit any licensee from crediting or
2refunding to a purchaser the actual amount of money paid for
3bottles, cases, kegs or barrels returned by the purchaser to
4the seller or paid by the purchaser as a deposit on bottles,
5cases, kegs or barrels, when such containers or packages are
6returned to the seller. Nothing herein contained shall prohibit
7any manufacturer, importing distributor or distributor from
8extending usual and customary credit for alcoholic liquor sold
9to customers or purchasers who live in or maintain places of
10business outside of this State when such alcoholic liquor is
11actually transported and delivered to such points outside of
12this State.
13    A manufacturer or , distributor, or importing distributor
14may furnish free social media advertising to a retail licensee
15if the social media advertisement does not contain the retail
16price of any alcoholic liquor and the social media
17advertisement complies with any applicable rules or
18regulations issued by the Alcohol and Tobacco Tax and Trade
19Bureau of the United States Department of the Treasury. A
20manufacturer or , distributor, or importing distributor may
21list the names of one or more unaffiliated retailers in the
22advertisement of alcoholic liquor through social media.
23Nothing in this Section shall prohibit a retailer from
24communicating with a manufacturer or , distributor, or
25importing distributor on social media or sharing media on the
26social media of a manufacturer or , distributor, or importing

 

 

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1distributor. A retailer may request free social media
2advertising from a manufacturer or , distributor, or importing
3distributor. Nothing in this Section shall prohibit a
4manufacturer or , distributor, or importing distributor from
5sharing, reposting, or otherwise forwarding a social media post
6by a retail licensee, so long as the sharing, reposting, or
7forwarding of the social media post does not contain the retail
8price of any alcoholic liquor. No manufacturer or , distributor,
9or importing distributor shall pay or reimburse a retailer,
10directly or indirectly, for any social media advertising
11services, except as specifically permitted in this Act. No
12retailer shall accept any payment or reimbursement, directly or
13indirectly, for any social media advertising services offered
14by a manufacturer or , distributor, or importing distributor,
15except as specifically permitted in this Act. For the purposes
16of this Section, "social media" means a service, platform, or
17site where users communicate with one another and share media,
18such as pictures, videos, music, and blogs, with other users
19free of charge.
20    No right of action shall exist for the collection of any
21claim based upon credit extended to a distributor, importing
22distributor or retail licensee contrary to the provisions of
23this Section.
24    Every manufacturer, importing distributor and distributor
25shall submit or cause to be submitted, to the State Commission,
26in triplicate, not later than Thursday of each calendar week, a

 

 

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1verified written list of the names and respective addresses of
2each retail licensee purchasing spirits or wine from such
3manufacturer, importing distributor or distributor who, on the
4first business day of that calendar week, was delinquent beyond
5the above mentioned permissible merchandising credit period of
630 days; or, if such is the fact, a verified written statement
7that no retail licensee purchasing spirits or wine was then
8delinquent beyond such permissible merchandising credit period
9of 30 days.
10    Every manufacturer, importing distributor and distributor
11shall submit or cause to be submitted, to the State Commission,
12in triplicate, a verified written list of the names and
13respective addresses of each previously reported delinquent
14retail licensee who has cured such delinquency by payment,
15which list shall be submitted not later than the close of the
16second full business day following the day such delinquency was
17so cured.
18    Such written verified reports required to be submitted by
19this Section shall be posted by the State Commission in each of
20its offices in places available for public inspection not later
21than the day following receipt thereof by the Commission. The
22reports so posted shall constitute notice to every
23manufacturer, importing distributor and distributor of the
24information contained therein. Actual notice to manufacturers,
25importing distributors and distributors of the information
26contained in any such posted reports, however received, shall

 

 

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1also constitute notice of such information.
2    The 30 day merchandising credit period allowed by this
3Section shall commence with the day immediately following the
4date of invoice and shall include all successive days including
5Sundays and holidays to and including the 30th successive day.
6    In addition to other methods allowed by law, payment by
7check during the period for which merchandising credit may be
8extended under the provisions of this Section shall be
9considered payment. All checks received in payment for
10alcoholic liquor shall be promptly deposited for collection. A
11post dated check or a check dishonored on presentation for
12payment shall not be deemed payment.
13    A retail licensee shall not be deemed to be delinquent in
14payment for any alleged sale to him of alcoholic liquor when
15there exists a bona fide dispute between such retailer and a
16manufacturer, importing distributor or distributor with
17respect to the amount of indebtedness existing because of such
18alleged sale.
19    A delinquent retail licensee who engages in the retail
20liquor business at 2 or more locations shall be deemed to be
21delinquent with respect to each such location.
22    The license of any person who violates any provision of
23this Section shall be subject to suspension or revocation in
24the manner provided by this Act.
25    If any part or provision of this Article or the application
26thereof to any person or circumstances shall be adjudged

 

 

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1invalid by a court of competent jurisdiction, such judgment
2shall be confined by its operation to the controversy in which
3it was mentioned and shall not affect or invalidate the
4remainder of this Article or the application thereof to any
5other person or circumstance and to this and the provisions of
6this Article are declared severable.
7(Source: P.A. 99-448, eff. 8-24-15.)
 
8    (235 ILCS 5/6-6)  (from Ch. 43, par. 123)
9    Sec. 6-6. Except as otherwise provided in this Act no
10manufacturer or distributor or importing distributor shall,
11directly or indirectly, sell, supply, furnish, give or pay for,
12or loan or lease, any furnishing, fixture or equipment on the
13premises of a place of business of another licensee authorized
14under this Act to sell alcoholic liquor at retail, either for
15consumption on or off the premises, nor shall he or she,
16directly or indirectly, pay for any such license, or advance,
17furnish, lend or give money for payment of such license, or
18purchase or become the owner of any note, mortgage, or other
19evidence of indebtedness of such licensee or any form of
20security therefor, nor shall such manufacturer, or
21distributor, or importing distributor, directly or indirectly,
22be interested in the ownership, conduct or operation of the
23business of any licensee authorized to sell alcoholic liquor at
24retail, nor shall any manufacturer, or distributor, or
25importing distributor be interested directly or indirectly or

 

 

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1as owner or part owner of said premises or as lessee or lessor
2thereof, in any premises upon which alcoholic liquor is sold at
3retail.
4    No manufacturer or distributor or importing distributor
5shall, directly or indirectly or through a subsidiary or
6affiliate, or by any officer, director or firm of such
7manufacturer or , distributor or importing distributor,
8furnish, give, lend or rent, install, repair or maintain, to or
9for any retail licensee in this State, any signs or inside
10advertising materials except as provided in this Section and
11Section 6-5. With respect to retail licensees, other than any
12government owned or operated auditorium, exhibition hall,
13recreation facility or other similar facility holding a
14retailer's license as described in Section 6-5, a manufacturer
15or , distributor, or importing distributor may furnish, give,
16lend or rent and erect, install, repair and maintain to or for
17any retail licensee, for use at any one time in or about or in
18connection with a retail establishment on which the products of
19the manufacturer or , distributor or importing distributor are
20sold, the following signs and inside advertising materials as
21authorized in subparts (i), (ii), (iii), and (iv):
22        (i) Permanent outside signs shall be limited to one
23    outside sign, per brand, in place and in use at any one
24    time, costing not more than $893, exclusive of erection,
25    installation, repair and maintenance costs, and permit
26    fees and shall bear only the manufacturer's name, brand

 

 

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1    name, trade name, slogans, markings, trademark, or other
2    symbols commonly associated with and generally used in
3    identifying the product including, but not limited to,
4    "cold beer", "on tap", "carry out", and "packaged liquor".
5        (ii) Temporary outside signs shall be limited to one
6    temporary outside sign per brand. Examples of temporary
7    outside signs are banners, flags, pennants, streamers, and
8    other items of a temporary and non-permanent nature. Each
9    temporary outside sign must include the manufacturer's
10    name, brand name, trade name, slogans, markings,
11    trademark, or other symbol commonly associated with and
12    generally used in identifying the product. Temporary
13    outside signs may also include, for example, the product,
14    price, packaging, date or dates of a promotion and an
15    announcement of a retail licensee's specific sponsored
16    event, if the temporary outside sign is intended to promote
17    a product, and provided that the announcement of the retail
18    licensee's event and the product promotion are held
19    simultaneously. However, temporary outside signs may not
20    include names, slogans, markings, or logos that relate to
21    the retailer. Nothing in this subpart (ii) shall prohibit a
22    distributor or importing distributor from bearing the cost
23    of creating or printing a temporary outside sign for the
24    retail licensee's specific sponsored event or from bearing
25    the cost of creating or printing a temporary sign for a
26    retail licensee containing, for example, community

 

 

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1    goodwill expressions, regional sporting event
2    announcements, or seasonal messages, provided that the
3    primary purpose of the temporary outside sign is to
4    highlight, promote, or advertise the product. In addition,
5    temporary outside signs provided by the manufacturer to the
6    distributor or importing distributor may also include, for
7    example, subject to the limitations of this Section,
8    preprinted community goodwill expressions, sporting event
9    announcements, seasonal messages, and manufacturer
10    promotional announcements. However, a distributor or
11    importing distributor shall not bear the cost of such
12    manufacturer preprinted signs.
13        (iii) Permanent inside signs, whether visible from the
14    outside or the inside of the premises, include, but are not
15    limited to: alcohol lists and menus that may include names,
16    slogans, markings, or logos that relate to the retailer;
17    neons; illuminated signs; clocks; table lamps; mirrors;
18    tap handles; decalcomanias; window painting; and window
19    trim. All permanent inside signs in place and in use at any
20    one time shall cost in the aggregate not more than $2000
21    per manufacturer. A permanent inside sign must include the
22    manufacturer's name, brand name, trade name, slogans,
23    markings, trademark, or other symbol commonly associated
24    with and generally used in identifying the product.
25    However, permanent inside signs may not include names,
26    slogans, markings, or logos that relate to the retailer.

 

 

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1    For the purpose of this subpart (iii), all permanent inside
2    signs may be displayed in an adjacent courtyard or patio
3    commonly referred to as a "beer garden" that is a part of
4    the retailer's licensed premises.
5        (iv) Temporary inside signs shall include, but are not
6    limited to, lighted chalk boards, acrylic table tent
7    beverage or hors d'oeuvre list holders, banners, flags,
8    pennants, streamers, and inside advertising materials such
9    as posters, placards, bowling sheets, table tents, inserts
10    for acrylic table tent beverage or hors d'oeuvre list
11    holders, sports schedules, or similar printed or
12    illustrated materials; however, such items, for example,
13    as coasters, trays, napkins, glassware and cups shall not
14    be deemed to be inside signs or advertising materials and
15    may only be sold to retailers. All temporary inside signs
16    and inside advertising materials in place and in use at any
17    one time shall cost in the aggregate not more than $325 per
18    manufacturer. Nothing in this subpart (iv) prohibits a
19    distributor or importing distributor from paying the cost
20    of printing or creating any temporary inside banner or
21    inserts for acrylic table tent beverage or hors d'oeuvre
22    list holders for a retail licensee, provided that the
23    primary purpose for the banner or insert is to highlight,
24    promote, or advertise the product. For the purpose of this
25    subpart (iv), all temporary inside signs and inside
26    advertising materials may be displayed in an adjacent

 

 

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1    courtyard or patio commonly referred to as a "beer garden"
2    that is a part of the retailer's licensed premises.
3    A "cost adjustment factor" shall be used to periodically
4update the dollar limitations prescribed in subparts (i),
5(iii), and (iv). The Commission shall establish the adjusted
6dollar limitation on an annual basis beginning in January,
71997. The term "cost adjustment factor" means a percentage
8equal to the change in the Bureau of Labor Statistics Consumer
9Price Index or 5%, whichever is greater. The restrictions
10contained in this Section 6-6 do not apply to signs, or
11promotional or advertising materials furnished by
12manufacturers or , distributors or importing distributors to a
13government owned or operated facility holding a retailer's
14license as described in Section 6-5.
15    No distributor or importing distributor shall directly or
16indirectly or through a subsidiary or affiliate, or by any
17officer, director or firm of such manufacturer or , distributor
18or importing distributor, furnish, give, lend or rent, install,
19repair or maintain, to or for any retail licensee in this
20State, any signs or inside advertising materials described in
21subparts (i), (ii), (iii), or (iv) of this Section except as
22the agent for or on behalf of a manufacturer, provided that the
23total cost of any signs and inside advertising materials
24including but not limited to labor, erection, installation and
25permit fees shall be paid by the manufacturer whose product or
26products said signs and inside advertising materials advertise

 

 

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1and except as follows:
2    A distributor or importing distributor may purchase from or
3enter into a written agreement with a manufacturer or a
4manufacturer's designated supplier and such manufacturer or
5the manufacturer's designated supplier may sell or enter into
6an agreement to sell to a distributor or importing distributor
7permitted signs and advertising materials described in
8subparts (ii), (iii), or (iv) of this Section for the purpose
9of furnishing, giving, lending, renting, installing,
10repairing, or maintaining such signs or advertising materials
11to or for any retail licensee in this State. Any purchase by a
12distributor or importing distributor from a manufacturer or a
13manufacturer's designated supplier shall be voluntary and the
14manufacturer may not require the distributor or the importing
15distributor to purchase signs or advertising materials from the
16manufacturer or the manufacturer's designated supplier.
17    A distributor or importing distributor shall be deemed the
18owner of such signs or advertising materials purchased from a
19manufacturer or a manufacturer's designated supplier.
20    The provisions of Public Act 90-373 concerning signs or
21advertising materials delivered by a manufacturer to a
22distributor or importing distributor shall apply only to signs
23or advertising materials delivered on or after August 14, 1997.
24    A manufacturer or , distributor, or importing distributor
25may furnish free social media advertising to a retail licensee
26if the social media advertisement does not contain the retail

 

 

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1price of any alcoholic liquor and the social media
2advertisement complies with any applicable rules or
3regulations issued by the Alcohol and Tobacco Tax and Trade
4Bureau of the United States Department of the Treasury. A
5manufacturer or , distributor, or importing distributor may
6list the names of one or more unaffiliated retailers in the
7advertisement of alcoholic liquor through social media.
8Nothing in this Section shall prohibit a retailer from
9communicating with a manufacturer or , distributor, or
10importing distributor on social media or sharing media on the
11social media of a manufacturer or , distributor, or importing
12distributor. A retailer may request free social media
13advertising from a manufacturer or , distributor, or importing
14distributor. Nothing in this Section shall prohibit a
15manufacturer or , distributor, or importing distributor from
16sharing, reposting, or otherwise forwarding a social media post
17by a retail licensee, so long as the sharing, reposting, or
18forwarding of the social media post does not contain the retail
19price of any alcoholic liquor. No manufacturer or , distributor,
20or importing distributor shall pay or reimburse a retailer,
21directly or indirectly, for any social media advertising
22services, except as specifically permitted in this Act. No
23retailer shall accept any payment or reimbursement, directly or
24indirectly, for any social media advertising services offered
25by a manufacturer or , distributor, or importing distributor,
26except as specifically permitted in this Act. For the purposes

 

 

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1of this Section, "social media" means a service, platform, or
2site where users communicate with one another and share media,
3such as pictures, videos, music, and blogs, with other users
4free of charge.
5    No person engaged in the business of manufacturing,
6importing or distributing alcoholic liquors shall, directly or
7indirectly, pay for, or advance, furnish, or lend money for the
8payment of any license for another. Any licensee who shall
9permit or assent, or be a party in any way to any violation or
10infringement of the provisions of this Section shall be deemed
11guilty of a violation of this Act, and any money loaned
12contrary to a provision of this Act shall not be recovered
13back, or any note, mortgage or other evidence of indebtedness,
14or security, or any lease or contract obtained or made contrary
15to this Act shall be unenforceable and void.
16    This Section shall not apply to airplane licensees
17exercising powers provided in paragraph (i) of Section 5-1 of
18this Act.
19(Source: P.A. 98-756, eff. 7-16-14; 99-448, eff. 8-24-15.)
 
20    (235 ILCS 5/6-6.3)
21    Sec. 6-6.3. Non-alcoholic merchandise.
22    (a) Nothing in this Act shall authorize the Illinois Liquor
23Control Commission to regulate or exercise jurisdiction over
24any action, transaction, and business of manufacturers,
25distributors, or retailers engaged in any transaction

 

 

SB3095 Engrossed- 129 -LRB099 20651 RPS 45255 b

1involving the furnishing, selling, or offering for sale of
2non-alcoholic merchandise by manufacturers, distributors, or
3retailers, unless the transaction involves expressed or
4implied agreements or understandings prohibited by this Act.
5    (b) Non-alcoholic merchandise may be sold by a manufacturer
6class license holder, non-resident dealer, foreign importer,
7importing distributor, or distributor to a retail licensee if:
8        (1) the manufacturer class license holder,
9    non-resident dealer, foreign importer, importing
10    distributor, or distributor is also in business as a bona
11    fide producer or vendor of other merchandise;
12        (2) the merchandise is sold at its fair market value;
13        (3) the non-alcoholic merchandise is not sold in
14    combination with alcoholic liquor or conditioned on the
15    sale of alcoholic liquor;
16        (4) the manufacturer class license holder's,
17    non-resident dealer's, foreign importer's, importing
18    distributor's, or distributor's acquisition or production
19    costs of the non-alcoholic merchandise appear on the
20    manufacturer class license holder's, non-resident
21    dealer's, foreign importer's, importing distributor's, or
22    distributor's purchase invoices or other records;
23        (5) the individual selling prices of the non-alcoholic
24    merchandise and alcoholic liquor sold in a single
25    transaction can be determined from commercial documents
26    covering the sales transaction if non-alcoholic

 

 

SB3095 Engrossed- 130 -LRB099 20651 RPS 45255 b

1    merchandise is sold in the same transaction as alcoholic
2    liquor; and
3        (6) the price is collected by the manufacturer class
4    license holder, non-resident dealer, foreign importer, or
5    distributor within 30 days of the date of the sale, unless
6    other terms are established in writing between the parties.
7    (c) The State Commission may not prohibit the sale of
8non-alcoholic merchandise if it is sold in the manner in which
9the non-alcoholic merchandise is sold by a manufacturer or
10distributor that is not licensed by the State Commission;
11provided, however, that all invoices for non-alcoholic
12merchandise sold by a manufacturer class license holder,
13non-resident dealer, foreign importer, importing distributor,
14or distributor that is also in business as a bona fide producer
15or vendor of other merchandise must be in compliance with the
16books and records requirements of 11 Ill. Adm. Code 100.130. If
17the non-alcoholic merchandise is sold on the same invoice as an
18alcoholic liquor product, the 30-day merchandising credit
19provisions of Section 6-5 of this Act shall apply to the entire
20transaction, including the non-alcoholic merchandise.
21    (d) Except as provided in subsection (f), a manufacturer
22class license holder, non-resident dealer, foreign importer,
23importing distributor, or distributor that is also in business
24as a bona fide producer or vendor of non-alcoholic merchandise
25shall not condition the sale of its alcoholic liquor on the
26sale of its non-alcoholic merchandise and shall not combine the

 

 

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1sale of its alcoholic liquor with the sale of its non-alcoholic
2merchandise. A manufacturer class license holder, non-resident
3dealer, foreign importer, importing distributor, or
4distributor that is also in business as a bona fide producer or
5vendor of non-alcoholic merchandise may sell, market, and
6promote non-alcoholic merchandise in the same manner in which
7the non-alcoholic merchandise is sold, marketed, or promoted by
8a manufacturer or distributor not licensed by the State
9Commission.
10    (e) Notwithstanding the prohibited furnishing or providing
11of fixtures, equipment, and furnishings to retailers as
12contained in Section 6-6 of this Act, the act of a manufacturer
13class license holder, non-resident dealer, foreign importer,
14importing distributor, or distributor furnishing or providing
15retailers with fixtures, equipment, or furnishings for the
16limited purpose of storing, servicing, displaying,
17advertising, furnishing, selling, or aiding in the sale of
18non-alcoholic merchandise is permitted, only to the extent
19allowed by this Section, and such fixtures, equipment, and
20furnishings shall not be used by the retail licensee to store,
21service, display, advertise, furnish, sell, or aid in the sale
22of alcoholic liquors. All such fixtures, equipment, or
23furnishings shall be identified by the retail licensee as being
24furnished by a manufacturer class license holder, non-resident
25dealer, foreign importer, importing distributor, or
26distributor licensed by the State Commission and, if purchased

 

 

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1by the retail licensee and sold on the same invoice as
2alcoholic liquor products, the price must be collected by the
3manufacturer class license holder, non-resident dealer,
4foreign importer, importing distributor, or distributor
5selling the same within 30 days of the date of sale.
6    (f) Notwithstanding any provision of this Act to the
7contrary, a manufacturer class license holder, non-resident
8dealer, foreign importer, importing distributor, or
9distributor may package and distribute alcoholic liquor in
10combination with other non-alcoholic merchandise products if
11the alcoholic liquor and non-alcoholic merchandise was
12originally packaged together for ultimate sale to consumers by
13the manufacturer or agent of the manufacturer as originally
14packaged by the manufacturer or agent of the manufacturer for
15ultimate sale to consumers.
16(Source: P.A. 99-282, eff. 8-5-15.)
 
17    (235 ILCS 5/6-6.5)
18    Sec. 6-6.5. Sanitation. A manufacturer or , distributor, or
19importing distributor may sell coil cleaning services to a
20retail licensee at fair market cost.
21    A manufacturer or , distributor, or importing distributor
22may sell dispensing accessories to retail licensees at a price
23not less than the cost to the manufacturer or , distributor, or
24importing distributor who initially purchased them. Dispensing
25accessories include, but are not limited to, items such as

 

 

SB3095 Engrossed- 133 -LRB099 20651 RPS 45255 b

1standards, faucets, cold plates, rods, vents, taps, tap
2standards, hoses, washers, couplings, gas gauges, vent
3tongues, shanks, and check valves.
4    Coil cleaning supplies consisting of detergents, cleaning
5chemicals, brushes, or similar type cleaning devices may be
6sold at a price not less than the cost to the manufacturer or ,
7distributor, or importing distributor.
8(Source: P.A. 90-432, eff. 1-1-98.)
 
9    (235 ILCS 5/6-7)  (from Ch. 43, par. 124)
10    Sec. 6-7. No manufacturer or distributor or importing
11distributor or foreign importer shall sell or deliver any
12package containing alcoholic liquor manufactured or
13distributed by him unless the same shall have affixed thereto
14all cancelled revenue stamps which may be provided by Federal
15law, and shall also bear thereon a clear and legible label
16containing the name and address of the manufacturer, the kind
17of alcoholic liquor contained therein, and in the case of
18alcoholic liquor (other than beer and imported Scotch whiskey
19and brandy 4 years old or more) the date when manufactured and
20the minimum alcoholic content thereof. No person or persons,
21corporation, partnership or firm shall label alcoholic liquor
22as "whiskey" or "gin" or shall import for sale or shall sell in
23this State alcoholic liquor labeled as "whiskey" or "gin"
24unless the entire alcoholic content thereof, except flavoring
25materials, is a distillate of fermented mash of grain or

 

 

SB3095 Engrossed- 134 -LRB099 20651 RPS 45255 b

1mixture of grains. Alcoholic liquor of the type of whiskey or
2gin not conforming to this requirement must be labeled
3"imitation whiskey" or "imitation gin" (as the case may be). No
4spirits shall contain any substance, compound or ingredient
5which is injurious to health or deleterious for human
6consumption. No package shall be delivered by any manufacturer
7or distributor or importing distributor or foreign importer
8unless the same shall be securely sealed so that the contents
9thereof cannot be removed without breaking the seal so placed
10thereon by said manufacturer, and no other licensee shall sell,
11have in his possession, or use any package or container which
12does not comply with this Section or does not bear evidence
13that said package, when delivered to him, complied herewith.
14(Source: P.A. 82-783.)
 
15    (235 ILCS 5/6-8)  (from Ch. 43, par. 125)
16    Sec. 6-8. Each manufacturer or importing distributor or
17foreign importer shall keep an accurate record of all alcoholic
18liquors manufactured, distributed, sold, used, or delivered by
19him in this State during each month, showing therein to whom
20sold, and shall furnish a copy thereof or a report thereon to
21the State Commission, as the State Commission may, request.
22    Each importing distributor or manufacturer to whom
23alcoholic liquors imported into this State have been consigned
24shall effect possession and physical control thereof by storing
25such alcoholic liquors in the premises wherein such importing

 

 

SB3095 Engrossed- 135 -LRB099 20651 RPS 45255 b

1distributor or manufacturer is licensed to engage in such
2business as a an importing distributor or manufacturer and to
3make such alcoholic liquors together with accompanying
4invoices, bills of lading and receiving tickets available for
5inspection by an agent or representative of the Department of
6Revenue and of the State Commission.
7    All alcoholic liquor imported into this State must be
8off-loaded from the common carrier, vehicle, or mode of
9transportation by which the alcoholic liquor was delivered into
10this State. The alcoholic liquor shall be stored at the
11licensed premises of the importing distributor before sale and
12delivery to licensees in this State. A distributor or importing
13distributor, upon application to the Commission, may secure a
14waiver of the provisions of this Section for purposes of
15delivering beer directly to a licensee holding or otherwise
16participating in a special event sponsored by a unit of
17government or a not-for-profit organization.
18(Source: P.A. 88-535.)
 
19    (235 ILCS 5/6-9)  (from Ch. 43, par. 126)
20    Sec. 6-9. Registration of trade marks; sale within
21geographical area; delivery to authorized persons. The
22Legislature hereby finds and declares that for purposes of
23ensuring the preservation and enhancement of interbrand
24competition in the alcoholic liquor industry within the State,
25ensuring that importation and distribution of alcoholic liquor

 

 

SB3095 Engrossed- 136 -LRB099 20651 RPS 45255 b

1in the State will be subject to thorough and inexpensive
2monitoring by the State, reducing the importation of illicit or
3untaxed alcoholic liquor into the State, excluding misbranded
4alcoholic liquor products from the State, providing incentives
5to distributors to service and sell to larger numbers of retail
6licensees in the geographic area where such distributors are
7engaged in business, and reducing the amount of spoiled and
8overaged alcoholic liquor products sold to consumers, it is
9necessary to restrict the purchase of alcoholic liquors at
10wholesale in the State to those persons selected by the
11manufacturer, distributor, importing distributor or foreign
12importer who owns or controls the trade mark, brand or name of
13the alcoholic liquor products sold to such persons, and to
14restrict the geographic area or areas within which such persons
15sell such alcoholic liquor at wholesale, as provided in this
16Section.
17    Each manufacturer, non-resident dealer, distributor,
18importing distributor, or foreign importer who owns or controls
19the trade mark, brand or name of any alcoholic liquor shall
20register with the State Commission, in the Chicago office, on
21or before the effective date, the name of each person to whom
22such manufacturer, non-resident dealer, distributor, importing
23distributor, or foreign importer grants the right to sell at
24wholesale in this State any such alcoholic liquor, specifying
25the particular trade mark, brand or name of alcoholic liquor as
26to which such right is granted, the geographical area or areas

 

 

SB3095 Engrossed- 137 -LRB099 20651 RPS 45255 b

1for which such right is granted and the period of time for
2which such rights are granted to such person. Each
3manufacturer, non-resident dealer, distributor or importing
4distributor, or foreign importer who is required to register
5under this Section must furnish a copy of the registration
6statement at the time of appointment to the person who has been
7granted the right to sell alcoholic liquor at wholesale.
8However, if a person who has been appointed the right to sell
9alcoholic liquor at wholesale does not receive a copy of the
10registration statement as required under this Section, such
11person may file a registration statement with the State
12Commission, provided that the person furnishes a copy of that
13registration statement to the manufacturer, non-resident
14dealer, distributor, importing distributor, or foreign
15importer within 30 days of filing the registration statement.
16The registration statement shall state:
17    (1) the name of the person appointed;
18    (2) the name of the manufacturer, non-resident dealer,
19distributor, importing distributor, or foreign importer from
20whom the person received the right to sell alcoholic liquor;
21    (3) the particular trade mark, brand, or name of alcoholic
22liquor as to which the right to sell at wholesale is granted;
23and
24    (4) the geographical areas for which the right to sell at
25wholesale is granted.
26    Such manufacturer, non-resident dealer, distributor,

 

 

SB3095 Engrossed- 138 -LRB099 20651 RPS 45255 b

1importing distributor, or foreign importer may grant the right
2to sell at wholesale any trade mark, brand or name of any
3alcoholic liquor in any geographical area to more than one
4person. If the registration is received after the effective
5date, the Commission shall treat the date the registration was
6received in the Chicago office as the effective date. Such
7registration shall be made on a form prescribed by the State
8Commission and the State Commission may require such
9registration to be on a form provided by it.
10    A non-resident dealer or foreign importer who is not a
11manufacturer shall file the registration statement jointly
12with the manufacturer identifying the person authorized by the
13manufacturer to sign the registration statement on behalf of
14the manufacturer.
15    No such registration shall be made in any other manner than
16as is provided in this Section and only those persons
17registered by the manufacturer, non-resident dealer,
18distributor, importing distributor or foreign importer, shall
19have the right to sell at wholesale in this State, the brand of
20alcoholic liquor specified on the registration form.
21    However, a licensed Illinois distributor who has not been
22registered to sell a brand of alcoholic liquor, but for a
23period of 2 years prior to November 8, 1979 has been engaged in
24the purchase of a brand for resale from a licensed Illinois
25distributor who has the right to sell that brand at wholesale,
26may continue to purchase and resell the brand at wholesale, and

 

 

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1may purchase from the same distributor and resell at wholesale
2any new brands of the same manufacturer, provided that:
3        (1) Within 60 days after November 8, 1979 he identifies
4    the brand which he so purchased to the State Commission and
5    the Commission within 30 days thereafter verifies that the
6    purchases have occurred;
7        (2) Thereafter, he notifies the State Commission in
8    writing of any brands of the same manufacturer which he
9    wishes to purchase from the same distributor that were not
10    available for distribution on or before November 8, 1979,
11    and that the Commission within 30 days of such notification
12    verifies that the brand is a new brand of the same
13    manufacturer, and that the same licensed Illinois
14    distributor has the right to sell the new brand at
15    wholesale;
16        (3) His licensed business address is within the
17    geographical area for which the licensed Illinois
18    distributor from whom the purchases are made has the right
19    to sell said brand or brands of alcoholic liquor; and
20        (4) His sales are made within the geographical area for
21    which the licensed Illinois distributor from whom the
22    purchases are made has the right to sell the brand or
23    brands of alcoholic liquor and only to retail licensees
24    whose licensed premises are located within the
25    aforementioned geographical area.
26    No person to whom such right is granted shall sell at

 

 

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1wholesale in this State any alcoholic liquor bearing such trade
2mark, brand or name outside of the geographical area for which
3such person holds such selling right, as registered with the
4State Commission, nor shall he sell such alcoholic liquor
5within such geographical area to a retail licensee if the
6premises specified in such retailer's license are located
7outside such geographical area. Any licensed Illinois
8distributor who has not been granted the right to sell any
9alcoholic liquor at wholesale and is purchasing alcoholic
10liquor from a person who has been granted the right to sell at
11wholesale may sell and deliver only to retail licensees whose
12licensed premises are within the same geographical area as the
13person who has been granted the right to sell at wholesale.
14    No manufacturer, importing distributor, distributor,
15non-resident dealer, or foreign importer shall sell or deliver
16any package containing alcoholic liquor manufactured or
17distributed by him for resale, unless the person to whom such
18package is sold or delivered is authorized to receive such
19package in accordance with the provisions of this Act.
20(Source: P.A. 96-482, eff. 8-14-09.)
 
21    (235 ILCS 5/6-17)  (from Ch. 43, par. 133)
22    Sec. 6-17. (a) No licensee licensed under the provisions of
23this Act shall deny or permit his agents and employees to deny
24any person the full and equal enjoyment of the accommodations,
25advantages, facilities and privileges of any premises in which

 

 

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1alcoholic liquors are authorized to be sold subject only to the
2conditions and limitations established by law and applicable
3alike to all citizens.
4    (b) A distributor or an importing distributor may refuse to
5sell beer, brew, or similar beverages containing 0.5% or less
6of alcohol by volume to a non-licensee.
7(Source: P.A. 86-1469.)
 
8    (235 ILCS 5/6-17.1)
9    Sec. 6-17.1. Distributors; sales to retailers. The General
10Assembly hereby finds and declares that for the purposes of
11ensuring that all retail licensees have the opportunity to
12receive alcoholic liquor, reducing the amount of spoiled and
13overaged alcoholic liquor sold to customers, and maintaining
14the distribution system and the State's ability to regulate
15against illegal importation of alcoholic liquor, it is
16necessary to prevent discrimination among retail licensees as
17provided in this Section.
18    A distributor or importing distributor designated as a
19distributor or importing distributor for alcoholic liquor
20within a designated geographic area or areas under Section 6-9
21of this Act shall use its best efforts to make available for
22sale to retail licensees, in its designated geographic area or
23areas, each brand of alcoholic liquor which the distributor or
24the importing distributor has been authorized to distribute.
25Nothing in this Section prohibits a distributor or importing

 

 

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1distributor from establishing purchase requirements unless the
2requirements have the effect of excluding a majority of the
3retail licensees in the designated geographic area or areas
4from purchasing the alcoholic liquor.
5(Source: P.A. 91-186, eff. 1-1-00.)
 
6    (235 ILCS 5/6-22)  (from Ch. 43, par. 137)
7    Sec. 6-22. No person except a manufacturer or distributor,
8or importing distributor, shall fill or refill, in whole or in
9part, any original package of alcoholic liquor with the same or
10any other kind or quality of alcoholic liquor, and it shall be
11unlawful for any person to have in his possession for sale at
12retail any bottles, casks or other containers containing
13alcoholic liquor, except in original packages.
14(Source: P.A. 82-783.)
 
15    (235 ILCS 5/6-23)  (from Ch. 43, par. 138)
16    Sec. 6-23. No manufacturer or distributor or importing
17distributor or foreign importer shall enter into any contract
18with any person licensed to sell at retail whereby such
19licensee agrees not to sell any alcoholic liquors manufactured
20or distributed by any other manufacturer or distributor or
21importing distributor or foreign importer, and any provision in
22any contract violative of this Section shall render the whole
23of such contract void and no action shall be brought thereon in
24any court. However, nothing in this Section shall prohibit the

 

 

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1Department of Agriculture from entering into contracts for
2exclusive facilities upon the State Fair Grounds on an equal
3basis.
4(Source: P.A. 85-142.)
 
5    (235 ILCS 5/6-27.1)
6    Sec. 6-27.1. Responsible alcohol service server training.
7    (a) Unless issued a valid server training certificate
8between July 1, 2012 and July 1, 2015 by a certified Beverage
9Alcohol Sellers and Servers Education and Training (BASSET)
10trainer, all alcohol servers in Cook County are required to
11obtain and complete training in basic responsible alcohol
12service as outlined in 77 Ill. Adm. Code 3500, as those
13provisions exist on July 1, 2015 (the effective date of Public
14Act 98-939), by July 1, 2015 or within 120 days after the
15alcohol server begins his or her employment, whichever is
16later. All alcohol servers in a county, other than Cook County,
17with a population of 200,000 inhabitants or more are required
18to obtain and complete training in basic responsible alcohol
19service as outlined in 77 Ill. Adm. Code 3500, as those
20provisions exist on July 1, 2015 (the effective date of Public
21Act 98-939), by July 1, 2016 or within 120 days after the
22alcohol server begins his or her employment, whichever is
23later. All alcohol servers in a county with a population of
24more than 30,000 inhabitants and less than 200,000 inhabitants
25are required to obtain and complete training in basic

 

 

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1responsible alcohol service as outlined in 77 Ill. Adm. Code
23500, as those provisions exist on July 1, 2015 (the effective
3date of Public Act 98-939), by July 1, 2017 or within 120 days
4after the alcohol server begins his or her employment,
5whichever is later. All alcohol servers in counties with a
6population of 30,000 inhabitants or less are required to obtain
7and complete training in basic responsible alcohol service as
8outlined in 77 Ill. Adm. Code 3500, as those provisions exist
9on July 1, 2015 (the effective date of Public Act 98-939), by
10July 1, 2018 or within 120 days after the alcohol server begins
11his or her employment, whichever is later.
12    There is no limit to the amount of times a server may take
13the training. A certificate of training belongs to the server,
14and a server may transfer a certificate of training to a
15different employer, but shall not transfer a certificate of
16training to another server. Proof that an alcohol server has
17been trained must be available upon reasonable request by State
18law enforcement officials. For the purpose of this Section,
19"alcohol servers" means persons who sell or serve open
20containers of alcoholic beverages at retail and anyone whose
21job description entails the checking of identification for the
22purchase of open containers of alcoholic beverages at retail or
23for entry into the licensed premises. The definition does not
24include (i) a distributor or importing distributor conducting
25product sampling as authorized in Section 6-31 of this Act or a
26registered tasting representative, as provided in 11 Ill. Adm.

 

 

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1Code 100.40, conducting a tasting, as defined in 11 Ill. Adm.
2Code 100.10; (ii) a volunteer serving alcoholic beverages at a
3charitable function; or (iii) an instructor engaged in training
4or educating on the proper technique for using a system that
5dispenses alcoholic beverages.
6    (b) Responsible alcohol service training must cover and
7assess knowledge of the topics noted in 77 Ill. Adm. Code
83500.155.
9    (c) Beginning on the effective date of this amendatory Act
10of the 98th General Assembly, but no later than October 1,
112015, all existing BASSET trainers who are already BASSET
12certified as of the effective date of this amendatory Act of
13the 98th General Assembly shall be recertified by the State
14Commission and be required to comply with the conditions for
15server training set forth in this amendatory Act of the 98th
16General Assembly.
17    (d) Training modules and certificate program plans must be
18approved by the State Commission. All documents, materials, or
19information related to responsible alcohol service training
20program approval that are submitted to the State Commission are
21confidential and shall not be open to public inspection or
22dissemination and are exempt from disclosure.
23    The State Commission shall only approve programs that meet
24the following criteria:
25        (1) the training course covers the content specified in
26    77 Ill. Adm. Code 3500.155;

 

 

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1        (2) if the training course is classroom-based, the
2    classroom training is at least 4 hours, is available in
3    English and Spanish, and includes a test;
4        (3) if the training course is online or computer-based,
5    the course is designed in a way that ensures that no
6    content can be skipped, is interactive, has audio for
7    content for servers that have a disability, and includes a
8    test;
9        (4) training and testing is based on a job task
10    analysis that clearly identifies and focuses on the
11    knowledge, skills, and abilities needed to responsibly
12    serve alcoholic beverages and is developed using best
13    practices in instructional design and exam development to
14    ensure that the program is fair and legally defensible;
15        (5) training and testing is conducted by any means
16    available, including, but not limited to, online,
17    computer, classroom, or live trainers; and
18        (6) the program must provide access on a
19    24-hour-per-day, 7-days-per-week basis for certificate
20    verification for State Commission, State law enforcement
21    officials, and employers to be able to verify certificate
22    authenticity.
23    (e) Nothing in subsection (d) of this Section shall be
24construed to require a program to use a test administrator or
25proctor.
26    (f) A certificate issued from a BASSET-licensed training

 

 

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1program shall be accepted as meeting the training requirements
2for all server license and permit laws and ordinances in the
3State.
4    (g) A responsible alcohol service training certificate
5from a BASSET-licensed program shall be valid for 3 years.
6    (h) The provisions of this Section shall apply beginning
7July 1, 2015. From July 1, 2015 through December 31, 2015,
8enforcement of the provisions of this Section shall be limited
9to education and notification of the requirements to encourage
10compliance.
11    (i) The provisions of this Section do not apply to a
12special event retailer.
13(Source: P.A. 98-939, eff. 7-1-15; 99-46, eff. 7-15-15.)
 
14    (235 ILCS 5/6-29)  (from Ch. 43, par. 144e)
15    Sec. 6-29. Winery shipper's license.
16    (a) The General Assembly declares that the following is the
17intent of this Section:
18        (1) To authorize direct shipment of wine by an
19    out-of-state maker of wine on the same basis permitted an
20    in-state maker of wine pursuant to the authority of the
21    State under the provisions of Section 2 of the Twenty-First
22    Amendment to the United States Constitution and in
23    conformance with the United States Supreme Court decision
24    decided on May 16, 2005 in Granholm v. Heald.
25        (2) To reaffirm that the General Assembly's findings

 

 

SB3095 Engrossed- 148 -LRB099 20651 RPS 45255 b

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

 

 

SB3095 Engrossed- 149 -LRB099 20651 RPS 45255 b

1    purposes of this Act.
2    (b) Notwithstanding any other provision of law, a wine
3shipper licensee may ship, for personal use and not for resale,
4not more than 12 cases of wine per year to any resident of this
5State who is 21 years of age or older.
6    (b-3) Notwithstanding any other provision of law, sale and
7shipment by a winery shipper licensee pursuant to this Section
8shall be deemed to constitute a sale in this State.
9    (b-5) The shipping container of any wine shipped under this
10Section shall be clearly labeled with the following words:
11"CONTAINS ALCOHOL. SIGNATURE OF A PERSON 21 YEARS OF AGE OR
12OLDER REQUIRED FOR DELIVERY. PROOF OF AGE AND IDENTITY MUST BE
13SHOWN BEFORE DELIVERY.". This warning must be prominently
14displayed on the packaging. A licensee shall require the
15transporter or common carrier that delivers the wine to obtain
16the signature of a person 21 years of age or older at the
17delivery address at the time of delivery. At the expense of the
18licensee, the licensee shall receive a delivery confirmation
19from the express company, common carrier, or contract carrier
20indicating the location of the delivery, time of delivery, and
21the name and signature of the individual 21 years of age or
22older who accepts delivery. The Commission shall design and
23create a label or approve a label that must be affixed to the
24shipping container by the licensee.
25    (c) No broker within this State shall solicit consumers to
26engage in direct wine shipments under this Section.

 

 

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1    (d) It is not the intent of this Section to impair the
2distribution of wine through distributors or importing
3distributors, but only to permit shipments of wine for personal
4use.
5(Source: P.A. 95-634, eff. 6-1-08.)
 
6    (235 ILCS 5/6-29.1)
7    Sec. 6-29.1. Direct shipments of alcoholic liquor.
8    (a) The General Assembly makes the following findings:
9        (1) The General Assembly of Illinois, having reviewed
10    this Act in light of the United States Supreme Court's 2005
11    decision in Granholm v. Heald, has determined to conform
12    that law to the constitutional principles enunciated by the
13    Court in a manner that best preserves the temperance,
14    revenue, and orderly distribution values of this Act.
15        (2) Minimizing automobile accidents and fatalities,
16    domestic violence, health problems, loss of productivity,
17    unemployment, and other social problems associated with
18    dependency and improvident use of alcoholic beverages
19    remains the policy of Illinois.
20        (3) To the maximum extent constitutionally feasible,
21    Illinois desires to collect sufficient revenue from excise
22    and use taxes on alcoholic beverages for the purpose of
23    responding to such social problems.
24        (4) Combined with family education and individual
25    discipline, retail validation of age, and assessment of the

 

 

SB3095 Engrossed- 151 -LRB099 20651 RPS 45255 b

1    capacity of the consumer remains the best pre-sale social
2    protection against the problems associated with the abuse
3    of alcoholic liquor.
4        (5) Therefore, the paramount purpose of this
5    amendatory Act is to continue to carefully limit direct
6    shipment sales of wine produced by makers of wine and to
7    continue to prohibit such direct shipment sales for spirits
8    and beer.
9    For these reasons, the Commission shall establish a system
10to notify the out-of-state trade of this prohibition and to
11detect violations. The Commission shall request the Attorney
12General to extradite any offender.
13    (b) Pursuant to the Twenty-First Amendment of the United
14States Constitution allowing states to regulate the
15distribution and sale of alcoholic liquor and pursuant to the
16federal Webb-Kenyon Act declaring that alcoholic liquor
17shipped in interstate commerce must comply with state laws, the
18General Assembly hereby finds and declares that selling
19alcoholic liquor from a point outside this State through
20various direct marketing means, such as catalogs, newspapers,
21mailers, and the Internet, directly to residents of this State
22poses a serious threat to the State's efforts to prevent youths
23from accessing alcoholic liquor; to State revenue collections;
24and to the economy of this State.
25    Any person manufacturing, distributing, or selling
26alcoholic liquor who knowingly ships or transports or causes

 

 

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1the shipping or transportation of any alcoholic liquor from a
2point outside this State to a person in this State who does not
3hold a manufacturer's, distributor's, importing distributor's,
4or non-resident dealer's license issued by the Liquor Control
5Commission, other than a shipment of sacramental wine to a bona
6fide religious organization, a shipment authorized by Section
76-29, subparagraph (17) of Section 3-12, or any other shipment
8authorized by this Act, is in violation of this Act.
9    The Commission, upon determining, after investigation,
10that a person has violated this Section, shall give notice to
11the person by certified mail to cease and desist all shipments
12of alcoholic liquor into this State and to withdraw from this
13State within 5 working days after receipt of the notice all
14shipments of alcoholic liquor then in transit.
15    Whenever the Commission has reason to believe that a person
16has failed to comply with the Commission notice under this
17Section, it shall notify the Department of Revenue and file a
18complaint with the State's Attorney of the county where the
19alcoholic liquor was delivered or with appropriate law
20enforcement officials.
21    Failure to comply with the notice issued by the Commission
22under this Section constitutes a business offense for which the
23person shall be fined not more than $1,000 for a first offense,
24not more than $5,000 for a second offense, and not more than
25$10,000 for a third or subsequent offense. Each shipment of
26alcoholic liquor delivered in violation of the cease and desist

 

 

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1notice shall constitute a separate offense.
2(Source: P.A. 95-634, eff. 6-1-08.)
 
3    (235 ILCS 5/6-31)
4    Sec. 6-31. Product sampling.
5    (a) Retailer, distributor, importing distributor,
6manufacturer, and nonresident dealer licensees may conduct
7product sampling for consumption at a licensed retail location.
8Up to 3 samples, consisting of no more than (i) 1/4 ounce of
9distilled spirits, (ii) one ounce of wine, or (iii) 2 ounces of
10beer may be served to a consumer in one day.
11    (b) Notwithstanding the provisions of subsection (a), an
12on-premises retail licensee may offer for sale and serve more
13than one drink per person for sampling purposes. In any event,
14all provisions of Section 6-28 shall apply to an on-premises
15retail licensee that conducts product sampling.
16(Source: P.A. 99-46, eff. 7-15-15.)
 
17    (235 ILCS 5/7-1)  (from Ch. 43, par. 145)
18    Sec. 7-1. An applicant for a retail license from the State
19Commission shall submit to the State Commission an application
20in writing under oath stating:
21        (1) The applicant's name and mailing address;
22        (2) The name and address of the applicant's business;
23        (3) If applicable, the date of the filing of the
24    "assumed name" of the business with the County Clerk;

 

 

SB3095 Engrossed- 154 -LRB099 20651 RPS 45255 b

1        (4) In case of a copartnership, the date of the
2    formation of the partnership; in the case of an Illinois
3    corporation, the date of its incorporation; or in the case
4    of a foreign corporation, the State where it was
5    incorporated and the date of its becoming qualified under
6    the Business Corporation Act of 1983 to transact business
7    in the State of Illinois;
8        (5) The number, the date of issuance and the date of
9    expiration of the applicant's current local retail liquor
10    license;
11        (6) The name of the city, village, or county that
12    issued the local retail liquor license;
13        (7) The name and address of the landlord if the
14    premises are leased;
15        (8) The date of the applicant's first request for a
16    State liquor license and whether it was granted, denied or
17    withdrawn;
18        (9) The address of the applicant when the first
19    application for a State liquor license was made;
20        (10) The applicant's current State liquor license
21    number;
22        (11) The date the applicant began liquor sales at his
23    place of business;
24        (12) The address of the applicant's warehouse if he
25    warehouses liquor;
26        (13) The applicant's Retailers' Occupation Tax (ROT)

 

 

SB3095 Engrossed- 155 -LRB099 20651 RPS 45255 b

1    Registration Number;
2        (14) The applicant's document locator number on his
3    Federal Special Tax Stamp;
4        (15) Whether the applicant is delinquent in the payment
5    of the Retailers' Occupation Tax (Sales Tax), and if so,
6    the reasons therefor;
7        (16) Whether the applicant is delinquent under the cash
8    beer law, and if so, the reasons therefor;
9        (17) In the case of a retailer, whether he is
10    delinquent under the 30-day credit law, and if so, the
11    reasons therefor;
12        (18) In the case of a distributor, whether he is
13    delinquent under the 15-day credit law, and if so, the
14    reasons therefor;
15        (19) Whether the applicant has made an application for
16    a liquor license which has been denied, and if so, the
17    reasons therefor;
18        (20) Whether the applicant has ever had any previous
19    liquor license suspended or revoked, and if so, the reasons
20    therefor;
21        (21) Whether the applicant has ever been convicted of a
22    gambling offense or felony, and if so, the particulars
23    thereof;
24        (22) Whether the applicant possesses a current Federal
25    Wagering Stamp, and if so, the reasons therefor;
26        (23) Whether the applicant, or any other person,

 

 

SB3095 Engrossed- 156 -LRB099 20651 RPS 45255 b

1    directly in his place of business is a public official, and
2    if so, the particulars thereof;
3        (24) The applicant's name, sex, date of birth, social
4    security number, position and percentage of ownership in
5    the business; and the name, sex, date of birth, social
6    security number, position and percentage of ownership in
7    the business of every sole owner, partner, corporate
8    officer, director, manager and any person who owns 5% or
9    more of the shares of the applicant business entity or
10    parent corporations of the applicant business entity; and
11        (25) That he has not received or borrowed money or
12    anything else of value, and that he will not receive or
13    borrow money or anything else of value (other than
14    merchandising credit in the ordinary course of business for
15    a period not to exceed 90 days as herein expressly
16    permitted under Section 6-5 hereof), directly or
17    indirectly, from any manufacturer, importing distributor
18    or distributor or from any representative of any such
19    manufacturer, importing distributor or distributor, nor be
20    a party in any way, directly or indirectly, to any
21    violation by a manufacturer or , distributor or importing
22    distributor of Section 6-6 of this Act.
23    In addition to any other requirement of this Section, an
24applicant for a special use permit license and a special event
25retailer's license shall also submit (A) proof satisfactory to
26the Commission that the applicant has a resale number issued

 

 

SB3095 Engrossed- 157 -LRB099 20651 RPS 45255 b

1under Section 2c of the Retailers' Occupation Tax Act or that
2the applicant is registered under Section 2a of the Retailers'
3Occupation Tax Act, (B) proof satisfactory to the Commission
4that the applicant has a current, valid exemption
5identification number issued under Section 1g of the Retailers'
6Occupation Tax Act and a certification to the Commission that
7the purchase of alcoholic liquors will be a tax-exempt
8purchase, or (C) a statement that the applicant is not
9registered under Section 2a of the Retailers' Occupation Tax
10Act, does not hold a resale number under Section 2c of the
11Retailers' Occupation Tax Act, and does not hold an exemption
12number under Section 1g of the Retailers' Occupation Tax Act.
13The applicant shall also submit proof of adequate dram shop
14insurance for the special event prior to being issued a
15license.
16    In addition to the foregoing information, such application
17shall contain such other and further information as the State
18Commission and the local commission may, by rule or regulation
19not inconsistent with law, prescribe.
20    If the applicant reports a felony conviction as required
21under paragraph (21) of this Section, such conviction may be
22considered by the Commission in determining qualifications for
23licensing, but shall not operate as a bar to licensing.
24    If said application is made in behalf of a partnership,
25firm, association, club or corporation, then the same shall be
26signed by one member of such partnership or the president or

 

 

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1secretary of such corporation or an authorized agent of said
2partnership or corporation.
3    All other applications shall be on forms prescribed by the
4State Commission, and which may exclude any of the above
5requirements which the State Commission rules to be
6inapplicable.
7(Source: P.A. 98-756, eff. 7-16-14.)
 
8    (235 ILCS 5/7-6)  (from Ch. 43, par. 150)
9    Sec. 7-6. All proceedings for the revocation or suspension
10of licenses of manufacturers, distributors, importing
11distributors, non-resident dealers, foreign importers,
12non-beverage users, railroads, airplanes and boats shall be
13before the State Commission. All such proceedings and all
14proceedings for the revocation or suspension of a retailer's
15license before the State commission shall be in accordance with
16rules and regulations established by it not inconsistent with
17law. However, no such license shall be so revoked or suspended
18except after a hearing by the State commission with reasonable
19notice to the licensee served by registered or certified mail
20with return receipt requested at least 10 days prior to the
21hearings at the last known place of business of the licensee
22and after an opportunity to appear and defend. Such notice
23shall specify the time and place of the hearing, the nature of
24the charges, the specific provisions of the Act and rules
25violated, and the specific facts supporting the charges or

 

 

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1violation. The findings of the Commission shall be predicated
2upon competent evidence. The revocation of a local license
3shall automatically result in the revocation of a State
4license. Upon notification by the Illinois Department of
5Revenue, the State Commission, in accordance with Section 3-12,
6may refuse the issuance or renewal of a license, fine a
7licensee, or suspend or revoke any license issued by the State
8Commission if the licensee or license applicant has violated
9the provisions of Section 3 of the Retailers' Occupation Tax
10Act. All procedures for the suspension or revocation of a
11license, as enumerated above, are applicable to the levying of
12fines for violations of this Act or any rule or regulation
13issued pursuant thereto.
14(Source: P.A. 95-331, eff. 8-21-07.)
 
15    (235 ILCS 5/8-1)
16    Sec. 8-1. A tax is imposed upon the privilege of engaging
17in business as a manufacturer or as an importing distributor of
18alcoholic liquor other than beer at the rate of $0.185 per
19gallon until September 1, 2009 and $0.231 per gallon beginning
20September 1, 2009 for cider containing not less than 0.5%
21alcohol by volume nor more than 7% alcohol by volume, $0.73 per
22gallon until September 1, 2009 and $1.39 per gallon beginning
23September 1, 2009 for wine other than cider containing less
24than 7% alcohol by volume, and $4.50 per gallon until September
251, 2009 and $8.55 per gallon beginning September 1, 2009 on

 

 

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1alcohol and spirits manufactured and sold or used by such
2manufacturer, or as agent for any other person, or sold or used
3by such importing distributor, or as agent for any other
4person. A tax is imposed upon the privilege of engaging in
5business as a manufacturer of beer or as an importing
6distributor of beer at the rate of $0.185 per gallon until
7September 1, 2009 and $0.231 per gallon beginning September 1,
82009 on all beer manufactured and sold or used by such
9manufacturer, or as agent for any other person, or sold or used
10by such importing distributor, or as agent for any other
11person. Any brewer manufacturing beer in this State shall be
12entitled to and given a credit or refund of 75% of the tax
13imposed on each gallon of beer up to 4.9 million gallons per
14year in any given calendar year for tax paid or payable on beer
15produced and sold in the State of Illinois.
16    For the purpose of this Section, "cider" means any
17alcoholic beverage obtained by the alcohol fermentation of the
18juice of apples or pears including, but not limited to,
19flavored, sparkling, or carbonated cider.
20    The credit or refund created by this Act shall apply to all
21beer taxes in the calendar years 1982 through 1986.
22    The increases made by this amendatory Act of the 91st
23General Assembly in the rates of taxes imposed under this
24Section shall apply beginning on July 1, 1999.
25    A tax at the rate of 1 per gallon on beer and 48 per
26gallon on alcohol and spirits is also imposed upon the

 

 

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

 

 

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

 

 

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

 

 

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1    The provisions of this Section 8-1 are severable under
2Section 1.31 of the Statute on Statutes.
3(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
4eff. 7-13-09; 96-1000, eff. 7-2-10.)
 
5    (235 ILCS 5/8-2)  (from Ch. 43, par. 159)
6    Sec. 8-2. It is the duty of each manufacturer with respect
7to alcoholic liquor produced or imported by such manufacturer,
8or purchased tax-free by such manufacturer from another
9manufacturer or importing distributor, and of each importing
10distributor as to alcoholic liquor purchased by such importing
11distributor from foreign importers or from anyone from any
12point in the United States outside of this State or purchased
13tax-free from another manufacturer or importing distributor,
14to pay the tax imposed by Section 8-1 to the Department of
15Revenue on or before the 15th day of the calendar month
16following the calendar month in which such alcoholic liquor is
17sold or used by such manufacturer or by such importing
18distributor other than in an authorized tax-free manner or to
19pay that tax electronically as provided in this Section.
20    Each manufacturer and each importing distributor shall
21make payment under one of the following methods: (1) on or
22before the 15th day of each calendar month, file in person or
23by United States first-class mail, postage pre-paid, with the
24Department of Revenue, on forms prescribed and furnished by the
25Department, a report in writing in such form as may be required

 

 

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1by the Department in order to compute, and assure the accuracy
2of, the tax due on all taxable sales and uses of alcoholic
3liquor occurring during the preceding month. Payment of the tax
4in the amount disclosed by the report shall accompany the
5report or, (2) on or before the 15th day of each calendar
6month, electronically file with the Department of Revenue, on
7forms prescribed and furnished by the Department, an electronic
8report in such form as may be required by the Department in
9order to compute, and assure the accuracy of, the tax due on
10all taxable sales and uses of alcoholic liquor occurring during
11the preceding month. An electronic payment of the tax in the
12amount disclosed by the report shall accompany the report. A
13manufacturer or distributor who files an electronic report and
14electronically pays the tax imposed pursuant to Section 8-1 to
15the Department of Revenue on or before the 15th day of the
16calendar month following the calendar month in which such
17alcoholic liquor is sold or used by that manufacturer or
18importing distributor other than in an authorized tax-free
19manner shall pay to the Department the amount of the tax
20imposed pursuant to Section 8-1, less a discount which is
21allowed to reimburse the manufacturer or importing distributor
22for the expenses incurred in keeping and maintaining records,
23preparing and filing the electronic returns, remitting the tax,
24and supplying data to the Department upon request.
25    The discount shall be in an amount as follows:
26        (1) For original returns due on or after January 1,

 

 

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1    2003 through September 30, 2003, the discount shall be
2    1.75% or $1,250 per return, whichever is less;
3        (2) For original returns due on or after October 1,
4    2003 through September 30, 2004, the discount shall be 2%
5    or $3,000 per return, whichever is less; and
6        (3) For original returns due on or after October 1,
7    2004, the discount shall be 2% or $2,000 per return,
8    whichever is less.
9    The Department may, if it deems it necessary in order to
10insure the payment of the tax imposed by this Article, require
11returns to be made more frequently than and covering periods of
12less than a month. Such return shall contain such further
13information as the Department may reasonably require.
14    It shall be presumed that all alcoholic liquors acquired or
15made by any importing distributor or manufacturer have been
16sold or used by him in this State and are the basis for the tax
17imposed by this Article unless proven, to the satisfaction of
18the Department, that such alcoholic liquors are (1) still in
19the possession of such importing distributor or manufacturer,
20or (2) prior to the termination of possession have been lost by
21theft or through unintentional destruction, or (3) that such
22alcoholic liquors are otherwise exempt from taxation under this
23Act.
24    The Department may require any foreign importer to file
25monthly information returns, by the 15th day of the month
26following the month which any such return covers, if the

 

 

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1Department determines this to be necessary to the proper
2performance of the Department's functions and duties under this
3Act. Such return shall contain such information as the
4Department may reasonably require.
5    Every manufacturer and importing distributor shall also
6file, with the Department, a bond in an amount not less than
7$1,000 and not to exceed $100,000 on a form to be approved by,
8and with a surety or sureties satisfactory to, the Department.
9Such bond shall be conditioned upon the manufacturer or
10importing distributor paying to the Department all monies
11becoming due from such manufacturer or importing distributor
12under this Article. The Department shall fix the penalty of
13such bond in each case, taking into consideration the amount of
14alcoholic liquor expected to be sold and used by such
15manufacturer or importing distributor, and the penalty fixed by
16the Department shall be sufficient, in the Department's
17opinion, to protect the State of Illinois against failure to
18pay any amount due under this Article, but the amount of the
19penalty fixed by the Department shall not exceed twice the
20amount of tax liability of a monthly return, nor shall the
21amount of such penalty be less than $1,000. The Department
22shall notify the Commission of the Department's approval or
23disapproval of any such manufacturer's or importing
24distributor's bond, or of the termination or cancellation of
25any such bond, or of the Department's direction to a
26manufacturer or importing distributor that he must file

 

 

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1additional bond in order to comply with this Section. The
2Commission shall not issue a license to any applicant for a
3manufacturer's or importing distributor's license unless the
4Commission has received a notification from the Department
5showing that such applicant has filed a satisfactory bond with
6the Department hereunder and that such bond has been approved
7by the Department. Failure by any licensed manufacturer or
8importing distributor to keep a satisfactory bond in effect
9with the Department or to furnish additional bond to the
10Department, when required hereunder by the Department to do so,
11shall be grounds for the revocation or suspension of such
12manufacturer's or importing distributor's license by the
13Commission. If a manufacturer or importing distributor fails to
14pay any amount due under this Article, his bond with the
15Department shall be deemed forfeited, and the Department may
16institute a suit in its own name on such bond.
17    After notice and opportunity for a hearing the State
18Commission may revoke or suspend the license of any
19manufacturer or importing distributor who fails to comply with
20the provisions of this Section. Notice of such hearing and the
21time and place thereof shall be in writing and shall contain a
22statement of the charges against the licensee. Such notice may
23be given by United States registered or certified mail with
24return receipt requested, addressed to the person concerned at
25his last known address and shall be given not less than 7 days
26prior to the date fixed for the hearing. An order revoking or

 

 

SB3095 Engrossed- 169 -LRB099 20651 RPS 45255 b

1suspending a license under the provisions of this Section may
2be reviewed in the manner provided in Section 7-10 of this Act.
3No new license shall be granted to a person whose license has
4been revoked for a violation of this Section or, in case of
5suspension, shall such suspension be terminated until he has
6paid to the Department all taxes and penalties which he owes
7the State under the provisions of this Act.
8    Every manufacturer or importing distributor who has, as
9verified by the Department, continuously complied with the
10conditions of the bond under this Act for a period of 2 years
11shall be considered to be a prior continuous compliance
12taxpayer. In determining the consecutive period of time for
13qualification as a prior continuous compliance taxpayer, any
14consecutive period of time of qualifying compliance
15immediately prior to the effective date of this amendatory Act
16of 1987 shall be credited to any manufacturer or importing
17distributor.
18    A manufacturer or importing distributor that is a prior
19continuous compliance taxpayer under this Section and becomes a
20successor as the result of an acquisition, merger, or
21consolidation of a manufacturer or importing distributor shall
22be deemed to be a prior continuous compliance taxpayer with
23respect to the acquired, merged, or consolidated entity.
24    Every prior continuous compliance taxpayer shall be exempt
25from the bond requirements of this Act until the Department has
26determined the taxpayer to be delinquent in the filing of any

 

 

SB3095 Engrossed- 170 -LRB099 20651 RPS 45255 b

1return or deficient in the payment of any tax under this Act.
2Any taxpayer who fails to pay an admitted or established
3liability under this Act may also be required to post bond or
4other acceptable security with the Department guaranteeing the
5payment of such admitted or established liability.
6    The Department shall discharge any surety and shall release
7and return any bond or security deposit assigned, pledged or
8otherwise provided to it by a taxpayer under this Section
9within 30 days after: (1) such taxpayer becomes a prior
10continuous compliance taxpayer; or (2) such taxpayer has ceased
11to collect receipts on which he is required to remit tax to the
12Department, has filed a final tax return, and has paid to the
13Department an amount sufficient to discharge his remaining tax
14liability as determined by the Department under this Act.
15(Source: P.A. 95-769, eff. 7-29-08.)
 
16    (235 ILCS 5/8-5)  (from Ch. 43, par. 163a)
17    Sec. 8-5. As soon as practicable after any return is filed,
18the Department shall examine such return and shall correct such
19return according to its best judgment and information, which
20return so corrected by the Department shall be prima facie
21correct and shall be prima facie evidence of the correctness of
22the amount of tax due, as shown therein. Instead of requiring
23the licensee to file an amended return, the Department may
24simply notify the licensee of the correction or corrections it
25has made. Proof of such correction by the Department, or of the

 

 

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1determination of the amount of tax due as provided in Sections
28-4 and 8-10, may be made at any hearing before the Department
3or in any legal proceeding by a reproduced copy of the
4Department's record relating thereto in the name of the
5Department under the certificate of the Director of Revenue.
6Such reproduced copy shall, without further proof, be admitted
7into evidence before the Department or in any legal proceeding
8and shall be prima facie proof of the correctness of the amount
9of tax due, as shown therein. If the return so corrected by the
10Department discloses the sale or use, by a licensed
11manufacturer or importing distributor, of alcoholic liquors as
12to which the tax provided for in this Article should have been
13paid, but has not been paid, in excess of the alcoholic liquors
14reported as being taxable by the licensee, and as to which the
15proper tax was paid the Department shall notify the licensee
16that it shall issue the taxpayer a notice of tax liability for
17the amount of tax claimed by the Department to be due, together
18with penalties at the rates prescribed by Sections 3-3, 3-5 and
193-6 of the Uniform Penalty and Interest Act, which amount of
20tax shall be equivalent to the amount of tax which, at the
21prescribed rate per gallon, should have been paid with respect
22to the alcoholic liquors disposed of in excess of those
23reported as being taxable. In a case where no return has been
24filed, the Department shall determine the amount of tax due
25according to its best judgment and information and shall issue
26the taxpayer a notice of tax liability for the amount of tax

 

 

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1claimed by the Department to be due as herein provided together
2with penalties at the rates prescribed by Sections 3-3, 3-5 and
33-6 of the Uniform Penalty and Interest Act. If, in
4administering the provisions of this Act, a comparison of a
5licensee's return or returns with the books, records and
6physical inventories of such licensee discloses a deficiency
7which cannot be allocated by the Department to a particular
8month or months, the Department shall issue the taxpayer a
9notice of tax liability for the amount of tax claimed by the
10Department to be due for a given period, but without any
11obligation upon the Department to allocate such deficiency to
12any particular month or months, together with penalties at the
13rates prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform
14Penalty and Interest Act, which amount of tax shall be
15equivalent to the amount of tax which, at the prescribed rate
16per gallon, should have been paid with respect to the alcoholic
17liquors disposed of in excess of those reported being taxable,
18with the tax thereon having been paid under which circumstances
19the aforesaid notice of tax liability shall be prima facie
20correct and shall be prima facie evidence of the correctness of
21the amount of tax due as shown therein; and proof of such
22correctness may be made in accordance with, and the
23admissibility of a reproduced copy of such notice of the
24Department's notice of tax liability shall be governed by, all
25the provisions of this Act applicable to corrected returns.
26    If the licensee dies or becomes a person under legal

 

 

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

 

 

SB3095 Engrossed- 174 -LRB099 20651 RPS 45255 b

1filed against the estate of any deceased or of the licensee who
2is under legal disability for any tax or penalty or portion
3thereof except in the manner prescribed and within the time
4limited by the Probate Act of 1975, as amended.
5    The collection of any such tax and penalty, or either, by
6any means provided for herein, shall not be a bar to any
7prosecution under this Act.
8    In addition to any other penalty provided for in this
9Article, any licensee who fails to pay any tax within the time
10required by this Article shall be subject to assessment of
11penalties and interest at rates set forth in the Uniform
12Penalty and Interest Act.
13(Source: P.A. 87-205; 87-879.)
 
14    (235 ILCS 5/8-10)  (from Ch. 43, par. 164)
15    Sec. 8-10. It is the duty of each manufacturer, importing
16distributor and foreign importer to keep, at his licensed
17address or place of business, complete and accurate records of
18all sales or other dispositions of alcoholic liquor, and
19complete and accurate records of all alcoholic liquor produced,
20manufactured, compounded or imported, whether for himself or
21for another, together with a physical inventory made as of the
22close of each period for which a return is required, covering
23all alcoholic liquors on hand. However, the Department of
24Revenue may grant a an importing distributor a waiver to permit
25such records to be kept at a central business location within

 

 

SB3095 Engrossed- 175 -LRB099 20651 RPS 45255 b

1the State upon written request by the importing distributor.
2The central business location shall be located at a licensed
3importing distributor's premises. The Department of Revenue
4may in its discretion prescribe reasonable and uniform methods
5for keeping such records by manufacturers and importing
6distributors and foreign importers.
7    In case of failure by manufacturers and importing
8distributors to keep such records or to make them available to
9the Department on demand, the Department shall determine the
10amount of tax due according to its best judgment and
11information, which amount so determined by the Department shall
12be prima facie correct, and the Department's notice of tax
13liability shall be given, and protest thereto and demand for a
14hearing may be made and final assessments arrived at, in
15accordance with the provisions of Section 8-5 hereof.
16    It is the duty of each manufacturer, importing distributor,
17and foreign importer, who imports alcoholic liquor into the
18State, and each non-resident dealer who ships alcoholic liquor
19into the State, to mail to the Department one duplicate
20invoice, together with a bill of lading, covering such shipment
21and stating the quantity and, except in the case of alcoholic
22liquor imported in bulk to be bottled by an authorized licensee
23in this State using his own label and brand, the invoice shall
24also state the brand, labels and size of containers.
25    It is the duty of each manufacturer, importing distributor,
26and foreign importer, who imports spirits into the State, and

 

 

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1each non-resident dealer who ships spirits into the State, to
2mail to the State Commission monthly a report containing a
3compilation of the information required to be furnished to the
4Department by the preceding paragraph, except that information
5concerning spirits imported in bulk need not be included. The
6report shall include all information mailed to the Department
7during the preceding month.
8    All books and records, which manufacturers, importing
9distributors, non-resident dealers, and foreign importers are
10required by this Section to keep, shall be preserved for a
11period of 3 years, unless the Department, in writing,
12authorizes their destruction or disposal at an earlier date.
13(Source: P.A. 98-394, eff. 8-16-13.)
 
14    (235 ILCS 5/9-13)  (from Ch. 43, par. 176)
15    Sec. 9-13. It is unlawful to sell alcoholic liquor at
16retail or to grant or issue, or cause to be granted or issued,
17any license to sell alcoholic liquor at retail within the
18limits of any political subdivision or precinct or at any
19premises while the prohibition against such sales is in effect,
20or to sell at retail alcoholic liquor other than beer
21containing not more than 4% of alcohol by weight, or to grant
22or issue or cause to be granted any license to sell such
23alcoholic liquor at retail within the limits of such political
24subdivision or precinct while the prohibition against such
25sales is in effect, or to sell at retail alcoholic liquor

 

 

SB3095 Engrossed- 177 -LRB099 20651 RPS 45255 b

1containing more than 4% of alcohol by weight except in the
2original package and not for consumption on the premises, or to
3grant or issue or cause to be granted or issued any license to
4sell such alcoholic liquor at retail within the limits of such
5political subdivision or precinct while the prohibition
6against such sales is in effect. If any such license be granted
7or issued in violation of this section, the license shall be
8void. This section shall not prohibit the issuance of and
9operation under a manufacturer's or distributor's or importing
10distributor's license in accordance with law.
11(Source: P.A. 86-861.)
 
12    (235 ILCS 5/10-1)  (from Ch. 43, par. 183)
13    Sec. 10-1. Violations; penalties. Whereas a substantial
14threat to the sound and careful control, regulation, and
15taxation of the manufacture, sale, and distribution of
16alcoholic liquors exists by virtue of individuals who
17manufacture, import, distribute, or sell alcoholic liquors
18within the State without having first obtained a valid license
19to do so, and whereas such threat is especially serious along
20the borders of this State, and whereas such threat requires
21immediate correction by this Act, by active investigation and
22prosecution by law enforcement officials and prosecutors, and
23by prompt and strict enforcement through the courts of this
24State to punish violators and to deter such conduct in the
25future:

 

 

SB3095 Engrossed- 178 -LRB099 20651 RPS 45255 b

1    (a) Any person who manufactures, imports for distribution
2or use, or distributes or sells alcoholic liquor at any place
3within the State without having first obtained a valid license
4to do so under the provisions of this Act shall be guilty of a
5business offense and fined not more than $1,000 for the first
6such offense and shall be guilty of a Class 4 felony for each
7subsequent offense.
8    (b) (1) Any retailer, licensed in this State, who knowingly
9causes to furnish, give, sell, or otherwise being within the
10State, any alcoholic liquor destined to be used, distributed,
11consumed or sold in another state, unless such alcoholic liquor
12was received in this State by a duly licensed distributor, or
13importing distributors shall have his license suspended for 7
14days for the first offense and for the second offense, shall
15have his license revoked by the Commission.
16    (2) In the event the Commission receives a certified copy
17of a final order from a foreign jurisdiction that an Illinois
18retail licensee has been found to have violated that foreign
19jurisdiction's laws, rules, or regulations concerning the
20importation of alcoholic liquor into that foreign
21jurisdiction, the violation may be grounds for the Commission
22to revoke, suspend, or refuse to issue or renew a license, to
23impose a fine, or to take any additional action provided by
24this Act with respect to the Illinois retail license or
25licensee. Any such action on the part of the Commission shall
26be in accordance with this Act and implementing rules.

 

 

SB3095 Engrossed- 179 -LRB099 20651 RPS 45255 b

1    For the purposes of paragraph (2): (i) "foreign
2jurisdiction" means a state, territory, or possession of the
3United States, the District of Columbia, or the Commonwealth of
4Puerto Rico, and (ii) "final order" means an order or judgment
5of a court or administrative body that determines the rights of
6the parties respecting the subject matter of the proceeding,
7that remains in full force and effect, and from which no appeal
8can be taken.
9    (c) Any person who shall make any false statement or
10otherwise violates any of the provisions of this Act in
11obtaining any license hereunder, or who having obtained a
12license hereunder shall violate any of the provisions of this
13Act with respect to the manufacture, possession, distribution
14or sale of alcoholic liquor, or with respect to the maintenance
15of the licensed premises, or shall violate any other provision
16of this Act, shall for a first offense be guilty of a petty
17offense and fined not more than $500, and for a second or
18subsequent offense shall be guilty of a Class B misdemeanor.
19    (c-5) Any owner of an establishment that serves alcohol on
20its premises, if more than 50% of the establishment's gross
21receipts within the prior 3 months is from the sale of alcohol,
22who knowingly fails to prohibit concealed firearms on its
23premises or who knowingly makes a false statement or record to
24avoid the prohibition of concealed firearms on its premises
25under the Firearm Concealed Carry Act shall be guilty of a
26business offense with a fine up to $5,000.

 

 

SB3095 Engrossed- 180 -LRB099 20651 RPS 45255 b

1    (d) Each day any person engages in business as a
2manufacturer, foreign importer, importing distributor,
3distributor, or retailer in violation of the provisions of this
4Act shall constitute a separate offense.
5    (e) Any person, under the age of 21 years who, for the
6purpose of buying, accepting or receiving alcoholic liquor from
7a licensee, represents that he is 21 years of age or over shall
8be guilty of a Class A misdemeanor.
9    (f) In addition to the penalties herein provided, any
10person licensed as a wine-maker in either class who
11manufactures more wine than authorized by his license shall be
12guilty of a business offense and shall be fined $1 for each
13gallon so manufactured.
14    (g) A person shall be exempt from prosecution for a
15violation of this Act if he is a peace officer in the
16enforcement of the criminal laws and such activity is approved
17in writing by one of the following:
18        (1) In all counties, the respective State's Attorney;
19        (2) The Director of State Police under Section 2605-10,
20    2605-15, 2605-75, 2605-100, 2605-105, 2605-110, 2605-115,
21    2605-120, 2605-130, 2605-140, 2605-190, 2605-200,
22    2605-205, 2605-210, 2605-215, 2605-250, 2605-275,
23    2605-300, 2605-305, 2605-315, 2605-325, 2605-335,
24    2605-340, 2605-350, 2605-355, 2605-360, 2605-365,
25    2605-375, 2605-390, 2605-400, 2605-405, 2605-420,
26    2605-430, 2605-435, 2605-500, 2605-525, or 2605-550 of the

 

 

SB3095 Engrossed- 181 -LRB099 20651 RPS 45255 b

1    Department of State Police Law (20 ILCS 2605/2605-10,
2    2605/2605-15, 2605/2605-75, 2605/2605-100, 2605/2605-105,
3    2605/2605-110, 2605/2605-115, 2605/2605-120,
4    2605/2605-130, 2605/2605-140, 2605/2605-190,
5    2605/2605-200, 2605/2605-205, 2605/2605-210,
6    2605/2605-215, 2605/2605-250, 2605/2605-275,
7    2605/2605-300, 2605/2605-305, 2605/2605-315,
8    2605/2605-325, 2605/2605-335, 2605/2605-340,
9    2605/2605-350, 2605/2605-355, 2605/2605-360,
10    2605/2605-365, 2605/2605-375, 2605/2605-390,
11    2605/2605-400, 2605/2605-405, 2605/2605-420,
12    2605/2605-430, 2605/2605-435, 2605/2605-500,
13    2605/2605-525, or 2605/2605-550); or
14        (3) In cities over 1,000,000, the Superintendent of
15    Police.
16(Source: P.A. 98-63, eff. 7-9-13.)
 
17    (235 ILCS 5/10-7.1)  (from Ch. 43, par. 189.1)
18    Sec. 10-7.1. The Commission, upon receipt of a complaint or
19upon having knowledge that any person is engaged in the
20business as a manufacturer, importing distributor,
21distributor, or retailer without a license or valid license,
22shall notify the Department of Revenue and the local liquor
23authority, and file a complaint with the State's Attorney's
24Office of the County where the incident occurred or initiate an
25investigation with the appropriate law enforcement officials.

 

 

SB3095 Engrossed- 182 -LRB099 20651 RPS 45255 b

1(Source: P.A. 90-739, eff. 8-13-98.)
 
2    (235 ILCS 5/1-3.16 rep.)
3    Section 35. The Liquor Control Act of 1934 is amended by
4repealing Section 1-3.16.