Sen. Michael E. Hastings

Filed: 4/15/2016

 

 


 

 


 
09900SB3095sam001LRB099 20651 RPS 46232 a

1
AMENDMENT TO SENATE BILL 3095

2    AMENDMENT NO. ______. Amend Senate Bill 3095 by replacing
3everything after the enacting clause with the following:
 
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.

 

 

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1        (e) A labor representative appointed by the Governor.
2        (f) An educator appointed by the Governor.
3        (g) A physician licensed to practice medicine in all
4    its branches appointed by the Governor with due regard for
5    the appointee's knowledge of the field of alcoholism and
6    other drug abuse and dependency.
7        (h) 4 members of the Illinois House of Representatives,
8    2 each appointed by the Speaker and Minority Leader.
9        (i) 4 members of the Illinois Senate, 2 each appointed
10    by the President and Minority Leader.
11        (j) The President of the Illinois Alcoholism and Drug
12    Dependence Association.
13        (k) An advocate for the needs of youth appointed by the
14    Governor.
15        (l) The President of the Illinois State Medical Society
16    or his or her designee.
17        (m) The President of the Illinois Hospital Association
18    or his or her designee.
19        (n) The President of the Illinois Nurses Association or
20    a registered nurse designated by the President.
21        (o) The President of the Illinois Pharmacists
22    Association or a licensed pharmacist designated by the
23    President.
24        (p) The President of the Illinois Chapter of the
25    Association of Labor Management Administrators and
26    Consultants on Alcoholism.

 

 

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1        (p-1) The President of the Community Behavioral
2    Healthcare Association of Illinois or his or her designee.
3        (q) The Attorney General or his or her designee.
4        (r) The State Comptroller or his or her designee.
5        (s) 20 public members, 8 appointed by the Governor, 3
6    of whom shall be representatives of alcoholism or other
7    drug abuse and dependency treatment programs and one of
8    whom shall be a representative of a manufacturer or
9    importing distributor of alcoholic liquor licensed by the
10    State of Illinois, and 3 public members appointed by each
11    of the President and Minority Leader of the Senate and the
12    Speaker and Minority Leader of the House.
13        (t) The Director, Secretary, or other chief
14    administrative officer, ex officio, or his or her designee,
15    of each of the following: the Department on Aging, the
16    Department of Children and Family Services, the Department
17    of Corrections, the Department of Juvenile Justice, the
18    Department of Healthcare and Family Services, the
19    Department of Revenue, the Department of Public Health, the
20    Department of Financial and Professional Regulation, the
21    Department of State Police, the Administrative Office of
22    the Illinois Courts, the Criminal Justice Information
23    Authority, and the Department of Transportation.
24        (u) Each of the following, ex officio, or his or her
25    designee: the Secretary of State, the State Superintendent
26    of Education, and the Chairman of the Board of Higher

 

 

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1    Education.
2    The public members may not be officers or employees of the
3executive branch of State government; however, the public
4members may be officers or employees of a State college or
5university or of any law enforcement agency. In appointing
6members, due consideration shall be given to the experience of
7appointees in the fields of medicine, law, prevention,
8correctional activities, and social welfare. Vacancies in the
9public membership shall be filled for the unexpired term by
10appointment in like manner as for original appointments, and
11the appointive members shall serve until their successors are
12appointed and have qualified. Vacancies among the public
13members appointed by the legislative leaders shall be filled by
14the leader of the same house and of the same political party as
15the leader who originally appointed the member.
16    Each non-appointive member may designate a representative
17to serve in his place by written notice to the Department. All
18General Assembly members shall serve until their respective
19successors are appointed or until termination of their
20legislative service, whichever occurs first. The terms of
21office for each of the members appointed by the Governor shall
22be for 3 years, except that of the members first appointed, 3
23shall be appointed for a term of one year, and 4 shall be
24appointed for a term of 2 years. The terms of office of each of
25the public members appointed by the legislative leaders shall
26be for 2 years.

 

 

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1(Source: P.A. 94-1033, eff. 7-1-07.)
 
2    Section 10. The Retailers' Occupation Tax Act is amended by
3changing Section 3 as follows:
 
4    (35 ILCS 120/3)  (from Ch. 120, par. 442)
5    Sec. 3. Except as provided in this Section, on or before
6the twentieth day of each calendar month, every person engaged
7in the business of selling tangible personal property at retail
8in this State during the preceding calendar month shall file a
9return with the Department, stating:
10        1. The name of the seller;
11        2. His residence address and the address of his
12    principal place of business and the address of the
13    principal place of business (if that is a different
14    address) from which he engages in the business of selling
15    tangible personal property at retail in this State;
16        3. Total amount of receipts received by him during the
17    preceding calendar month or quarter, as the case may be,
18    from sales of tangible personal property, and from services
19    furnished, by him during such preceding calendar month or
20    quarter;
21        4. Total amount received by him during the preceding
22    calendar month or quarter on charge and time sales of
23    tangible personal property, and from services furnished,
24    by him prior to the month or quarter for which the return

 

 

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1    is filed;
2        5. Deductions allowed by law;
3        6. Gross receipts which were received by him during the
4    preceding calendar month or quarter and upon the basis of
5    which the tax is imposed;
6        7. The amount of credit provided in Section 2d of this
7    Act;
8        8. The amount of tax due;
9        9. The signature of the taxpayer; and
10        10. Such other reasonable information as the
11    Department may require.
12    If a taxpayer fails to sign a return within 30 days after
13the proper notice and demand for signature by the Department,
14the return shall be considered valid and any amount shown to be
15due on the return shall be deemed assessed.
16    Each return shall be accompanied by the statement of
17prepaid tax issued pursuant to Section 2e for which credit is
18claimed.
19    Prior to October 1, 2003, and on and after September 1,
202004 a retailer may accept a Manufacturer's Purchase Credit
21certification from a purchaser in satisfaction of Use Tax as
22provided in Section 3-85 of the Use Tax Act if the purchaser
23provides the appropriate documentation as required by Section
243-85 of the Use Tax Act. A Manufacturer's Purchase Credit
25certification, accepted by a retailer prior to October 1, 2003
26and on and after September 1, 2004 as provided in Section 3-85

 

 

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1of the Use Tax Act, may be used by that retailer to satisfy
2Retailers' Occupation Tax liability in the amount claimed in
3the certification, not to exceed 6.25% of the receipts subject
4to tax from a qualifying purchase. A Manufacturer's Purchase
5Credit reported on any original or amended return filed under
6this Act after October 20, 2003 for reporting periods prior to
7September 1, 2004 shall be disallowed. Manufacturer's
8Purchaser Credit reported on annual returns due on or after
9January 1, 2005 will be disallowed for periods prior to
10September 1, 2004. No Manufacturer's Purchase Credit may be
11used after September 30, 2003 through August 31, 2004 to
12satisfy any tax liability imposed under this Act, including any
13audit liability.
14    The Department may require returns to be filed on a
15quarterly basis. If so required, a return for each calendar
16quarter shall be filed on or before the twentieth day of the
17calendar month following the end of such calendar quarter. The
18taxpayer shall also file a return with the Department for each
19of the first two months of each calendar quarter, on or before
20the twentieth day of the following calendar month, stating:
21        1. The name of the seller;
22        2. The address of the principal place of business from
23    which he engages in the business of selling tangible
24    personal property at retail in this State;
25        3. The total amount of taxable receipts received by him
26    during the preceding calendar month from sales of tangible

 

 

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1    personal property by him during such preceding calendar
2    month, including receipts from charge and time sales, but
3    less all deductions allowed by law;
4        4. The amount of credit provided in Section 2d of this
5    Act;
6        5. The amount of tax due; and
7        6. Such other reasonable information as the Department
8    may require.
9    Beginning on October 1, 2003, any person who is not a
10licensed distributor, importing distributor, or manufacturer,
11as defined in the Liquor Control Act of 1934, but is engaged in
12the business of selling, at retail, alcoholic liquor shall file
13a statement with the Department of Revenue, in a format and at
14a time prescribed by the Department, showing the total amount
15paid for alcoholic liquor purchased during the preceding month
16and such other information as is reasonably required by the
17Department. The Department may adopt rules to require that this
18statement be filed in an electronic or telephonic format. Such
19rules may provide for exceptions from the filing requirements
20of this paragraph. For the purposes of this paragraph, the term
21"alcoholic liquor" shall have the meaning prescribed in the
22Liquor Control Act of 1934.
23    Beginning on October 1, 2003, every distributor, importing
24distributor, and manufacturer of alcoholic liquor as defined in
25the Liquor Control Act of 1934, shall file a statement with the
26Department of Revenue, no later than the 10th day of the month

 

 

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1for the preceding month during which transactions occurred, by
2electronic means, showing the total amount of gross receipts
3from the sale of alcoholic liquor sold or distributed during
4the preceding month to purchasers; identifying the purchaser to
5whom it was sold or distributed; the purchaser's tax
6registration number; and such other information reasonably
7required by the Department. A distributor, importing
8distributor, or manufacturer of alcoholic liquor must
9personally deliver, mail, or provide by electronic means to
10each retailer listed on the monthly statement a report
11containing a cumulative total of that distributor's, importing
12distributor's, or manufacturer's total sales of alcoholic
13liquor to that retailer no later than the 10th day of the month
14for the preceding month during which the transaction occurred.
15The distributor, importing distributor, or manufacturer shall
16notify the retailer as to the method by which the distributor,
17importing distributor, or manufacturer will provide the sales
18information. If the retailer is unable to receive the sales
19information by electronic means, the distributor, importing
20distributor, or manufacturer shall furnish the sales
21information by personal delivery or by mail. For purposes of
22this paragraph, the term "electronic means" includes, but is
23not limited to, the use of a secure Internet website, e-mail,
24or facsimile.
25    If a total amount of less than $1 is payable, refundable or
26creditable, such amount shall be disregarded if it is less than

 

 

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150 cents and shall be increased to $1 if it is 50 cents or more.
2    Beginning October 1, 1993, a taxpayer who has an average
3monthly tax liability of $150,000 or more shall make all
4payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 1994, a taxpayer who has
6an average monthly tax liability of $100,000 or more shall make
7all payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 1995, a taxpayer who has
9an average monthly tax liability of $50,000 or more shall make
10all payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 2000, a taxpayer who has
12an annual tax liability of $200,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. The term "annual tax liability" shall be the
15sum of the taxpayer's liabilities under this Act, and under all
16other State and local occupation and use tax laws administered
17by the Department, for the immediately preceding calendar year.
18The term "average monthly tax liability" shall be the sum of
19the taxpayer's liabilities under this Act, and under all other
20State and local occupation and use tax laws administered by the
21Department, for the immediately preceding calendar year
22divided by 12. Beginning on October 1, 2002, a taxpayer who has
23a tax liability in the amount set forth in subsection (b) of
24Section 2505-210 of the Department of Revenue Law shall make
25all payments required by rules of the Department by electronic
26funds transfer.

 

 

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1    Before August 1 of each year beginning in 1993, the
2Department shall notify all taxpayers required to make payments
3by electronic funds transfer. All taxpayers required to make
4payments by electronic funds transfer shall make those payments
5for a minimum of one year beginning on October 1.
6    Any taxpayer not required to make payments by electronic
7funds transfer may make payments by electronic funds transfer
8with the permission of the Department.
9    All taxpayers required to make payment by electronic funds
10transfer and any taxpayers authorized to voluntarily make
11payments by electronic funds transfer shall make those payments
12in the manner authorized by the Department.
13    The Department shall adopt such rules as are necessary to
14effectuate a program of electronic funds transfer and the
15requirements of this Section.
16    Any amount which is required to be shown or reported on any
17return or other document under this Act shall, if such amount
18is not a whole-dollar amount, be increased to the nearest
19whole-dollar amount in any case where the fractional part of a
20dollar is 50 cents or more, and decreased to the nearest
21whole-dollar amount where the fractional part of a dollar is
22less than 50 cents.
23    If the retailer is otherwise required to file a monthly
24return and if the retailer's average monthly tax liability to
25the Department does not exceed $200, the Department may
26authorize his returns to be filed on a quarter annual basis,

 

 

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1with the return for January, February and March of a given year
2being due by April 20 of such year; with the return for April,
3May and June of a given year being due by July 20 of such year;
4with the return for July, August and September of a given year
5being due by October 20 of such year, and with the return for
6October, November and December of a given year being due by
7January 20 of the following year.
8    If the retailer is otherwise required to file a monthly or
9quarterly return and if the retailer's average monthly tax
10liability with the Department does not exceed $50, the
11Department may authorize his returns to be filed on an annual
12basis, with the return for a given year being due by January 20
13of the following year.
14    Such quarter annual and annual returns, as to form and
15substance, shall be subject to the same requirements as monthly
16returns.
17    Notwithstanding any other provision in this Act concerning
18the time within which a retailer may file his return, in the
19case of any retailer who ceases to engage in a kind of business
20which makes him responsible for filing returns under this Act,
21such retailer shall file a final return under this Act with the
22Department not more than one month after discontinuing such
23business.
24    Where the same person has more than one business registered
25with the Department under separate registrations under this
26Act, such person may not file each return that is due as a

 

 

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1single return covering all such registered businesses, but
2shall file separate returns for each such registered business.
3    In addition, with respect to motor vehicles, watercraft,
4aircraft, and trailers that are required to be registered with
5an agency of this State, every retailer selling this kind of
6tangible personal property shall file, with the Department,
7upon a form to be prescribed and supplied by the Department, a
8separate return for each such item of tangible personal
9property which the retailer sells, except that if, in the same
10transaction, (i) a retailer of aircraft, watercraft, motor
11vehicles or trailers transfers more than one aircraft,
12watercraft, motor vehicle or trailer to another aircraft,
13watercraft, motor vehicle retailer or trailer retailer for the
14purpose of resale or (ii) a retailer of aircraft, watercraft,
15motor vehicles, or trailers transfers more than one aircraft,
16watercraft, motor vehicle, or trailer to a purchaser for use as
17a qualifying rolling stock as provided in Section 2-5 of this
18Act, then that seller may report the transfer of all aircraft,
19watercraft, motor vehicles or trailers involved in that
20transaction to the Department on the same uniform
21invoice-transaction reporting return form. For purposes of
22this Section, "watercraft" means a Class 2, Class 3, or Class 4
23watercraft as defined in Section 3-2 of the Boat Registration
24and Safety Act, a personal watercraft, or any boat equipped
25with an inboard motor.
26    Any retailer who sells only motor vehicles, watercraft,

 

 

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

 

 

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

 

 

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

 

 

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1wants the transaction reporting return filed and the payment of
2the tax or proof of exemption made to the Department before the
3retailer is willing to take these actions and such user has not
4paid the tax to the retailer, such user may certify to the fact
5of such delay by the retailer and may (upon the Department
6being satisfied of the truth of such certification) transmit
7the information required by the transaction reporting return
8and the remittance for tax or proof of exemption directly to
9the Department and obtain his tax receipt or exemption
10determination, in which event the transaction reporting return
11and tax remittance (if a tax payment was required) shall be
12credited by the Department to the proper retailer's account
13with the Department, but without the 2.1% or 1.75% discount
14provided for in this Section being allowed. When the user pays
15the tax directly to the Department, he shall pay the tax in the
16same amount and in the same form in which it would be remitted
17if the tax had been remitted to the Department by the retailer.
18    Refunds made by the seller during the preceding return
19period to purchasers, on account of tangible personal property
20returned to the seller, shall be allowed as a deduction under
21subdivision 5 of his monthly or quarterly return, as the case
22may be, in case the seller had theretofore included the
23receipts from the sale of such tangible personal property in a
24return filed by him and had paid the tax imposed by this Act
25with respect to such receipts.
26    Where the seller is a corporation, the return filed on

 

 

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1behalf of such corporation shall be signed by the president,
2vice-president, secretary or treasurer or by the properly
3accredited agent of such corporation.
4    Where the seller is a limited liability company, the return
5filed on behalf of the limited liability company shall be
6signed by a manager, member, or properly accredited agent of
7the limited liability company.
8    Except as provided in this Section, the retailer filing the
9return under this Section shall, at the time of filing such
10return, pay to the Department the amount of tax imposed by this
11Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
12on and after January 1, 1990, or $5 per calendar year,
13whichever is greater, which is allowed to reimburse the
14retailer for the expenses incurred in keeping records,
15preparing and filing returns, remitting the tax and supplying
16data to the Department on request. Any prepayment made pursuant
17to Section 2d of this Act shall be included in the amount on
18which such 2.1% or 1.75% discount is computed. In the case of
19retailers who report and pay the tax on a transaction by
20transaction basis, as provided in this Section, such discount
21shall be taken with each such tax remittance instead of when
22such retailer files his periodic return. The Department may
23disallow the discount for retailers whose certificate of
24registration is revoked at the time the return is filed, but
25only if the Department's decision to revoke the certificate of
26registration has become final.

 

 

09900SB3095sam001- 19 -LRB099 20651 RPS 46232 a

1    Before October 1, 2000, if the taxpayer's average monthly
2tax liability to the Department under this Act, the Use Tax
3Act, the Service Occupation Tax Act, and the Service Use Tax
4Act, excluding any liability for prepaid sales tax to be
5remitted in accordance with Section 2d of this Act, was $10,000
6or more during the preceding 4 complete calendar quarters, he
7shall file a return with the Department each month by the 20th
8day of the month next following the month during which such tax
9liability is incurred and shall make payments to the Department
10on or before the 7th, 15th, 22nd and last day of the month
11during which such liability is incurred. On and after October
121, 2000, if the taxpayer's average monthly tax liability to the
13Department under this Act, the Use Tax Act, the Service
14Occupation Tax Act, and the Service Use Tax Act, excluding any
15liability for prepaid sales tax to be remitted in accordance
16with Section 2d of this Act, was $20,000 or more during the
17preceding 4 complete calendar quarters, he shall file a return
18with the Department each month by the 20th day of the month
19next following the month during which such tax liability is
20incurred and shall make payment to the Department on or before
21the 7th, 15th, 22nd and last day of the month during which such
22liability is incurred. If the month during which such tax
23liability is incurred began prior to January 1, 1985, each
24payment shall be in an amount equal to 1/4 of the taxpayer's
25actual liability for the month or an amount set by the
26Department not to exceed 1/4 of the average monthly liability

 

 

09900SB3095sam001- 20 -LRB099 20651 RPS 46232 a

1of the taxpayer to the Department for the preceding 4 complete
2calendar quarters (excluding the month of highest liability and
3the month of lowest liability in such 4 quarter period). If the
4month during which such tax liability is incurred begins on or
5after January 1, 1985 and prior to January 1, 1987, each
6payment shall be in an amount equal to 22.5% of the taxpayer's
7actual liability for the month or 27.5% of the taxpayer's
8liability for the same calendar month of the preceding year. If
9the month during which such tax liability is incurred begins on
10or after January 1, 1987 and prior to January 1, 1988, 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. If
14the month during which such tax liability is incurred begins on
15or after January 1, 1988, and prior to January 1, 1989, or
16begins on or after January 1, 1996, each payment shall be in an
17amount equal to 22.5% of the taxpayer's actual liability for
18the month or 25% of the taxpayer's liability for the same
19calendar month of the preceding year. If the month during which
20such tax liability is incurred begins on or after January 1,
211989, and prior to January 1, 1996, each payment shall be in an
22amount equal to 22.5% of the taxpayer's actual liability for
23the month or 25% of the taxpayer's liability for the same
24calendar month of the preceding year or 100% of the taxpayer's
25actual liability for the quarter monthly reporting period. The
26amount of such quarter monthly payments shall be credited

 

 

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

 

 

09900SB3095sam001- 22 -LRB099 20651 RPS 46232 a

1average monthly liability to the Department as computed for
2each calendar quarter of the 4 preceding complete calendar
3quarter period is less than $20,000. However, if a taxpayer can
4show the Department that a substantial change in the taxpayer's
5business has occurred which causes the taxpayer to anticipate
6that his average monthly tax liability for the reasonably
7foreseeable future will fall below the $20,000 threshold stated
8above, then such taxpayer may petition the Department for a
9change in such taxpayer's reporting status. The Department
10shall change such taxpayer's reporting status unless it finds
11that such change is seasonal in nature and not likely to be
12long term. If any such quarter monthly payment is not paid at
13the time or in the amount required by this Section, then the
14taxpayer shall be liable for penalties and interest on the
15difference between the minimum amount due as a payment and the
16amount of such quarter monthly payment actually and timely
17paid, except insofar as the taxpayer has previously made
18payments for that month to the Department in excess of the
19minimum payments previously due as provided in this Section.
20The Department shall make reasonable rules and regulations to
21govern the quarter monthly payment amount and quarter monthly
22payment dates for taxpayers who file on other than a calendar
23monthly basis.
24    The provisions of this paragraph apply before October 1,
252001. Without regard to whether a taxpayer is required to make
26quarter monthly payments as specified above, any taxpayer who

 

 

09900SB3095sam001- 23 -LRB099 20651 RPS 46232 a

1is required by Section 2d of this Act to collect and remit
2prepaid taxes and has collected prepaid taxes which average in
3excess of $25,000 per month during the preceding 2 complete
4calendar quarters, shall file a return with the Department as
5required by Section 2f and shall make payments to the
6Department on or before the 7th, 15th, 22nd and last day of the
7month during which such liability is incurred. If the month
8during which such tax liability is incurred began prior to the
9effective date of this amendatory Act of 1985, each payment
10shall be in an amount not less than 22.5% of the taxpayer's
11actual liability under Section 2d. If the month during which
12such tax liability is incurred begins on or after January 1,
131986, each payment shall be in an amount equal to 22.5% of the
14taxpayer's actual liability for the month or 27.5% of the
15taxpayer's liability for the same calendar month of the
16preceding calendar year. If the month during which such tax
17liability is incurred begins on or after January 1, 1987, each
18payment shall be in an amount equal to 22.5% of the taxpayer's
19actual liability for the month or 26.25% of the taxpayer's
20liability for the same calendar month of the preceding year.
21The amount of such quarter monthly payments shall be credited
22against the final tax liability of the taxpayer's return for
23that month filed under this Section or Section 2f, as the case
24may be. Once applicable, the requirement of the making of
25quarter monthly payments to the Department pursuant to this
26paragraph shall continue until such taxpayer's average monthly

 

 

09900SB3095sam001- 24 -LRB099 20651 RPS 46232 a

1prepaid tax collections during the preceding 2 complete
2calendar quarters is $25,000 or less. If any such quarter
3monthly payment is not paid at the time or in the amount
4required, the taxpayer shall be liable for penalties and
5interest on such difference, except insofar as the taxpayer has
6previously made payments for that month in excess of the
7minimum payments previously due.
8    The provisions of this paragraph apply on and after October
91, 2001. Without regard to whether a taxpayer is required to
10make quarter monthly payments as specified above, any taxpayer
11who is required by Section 2d of this Act to collect and remit
12prepaid taxes and has collected prepaid taxes that average in
13excess of $20,000 per month during the preceding 4 complete
14calendar quarters shall file a return with the Department as
15required by Section 2f and shall make payments to the
16Department on or before the 7th, 15th, 22nd and last day of the
17month during which the liability is incurred. Each payment
18shall be in an amount equal to 22.5% of the taxpayer's actual
19liability for the month or 25% of the taxpayer's liability for
20the same calendar month of the preceding year. The amount of
21the quarter monthly payments shall be credited against the
22final tax liability of the taxpayer's return for that month
23filed under this Section or Section 2f, as the case may be.
24Once applicable, the requirement of the making of quarter
25monthly payments to the Department pursuant to this paragraph
26shall continue until the taxpayer's average monthly prepaid tax

 

 

09900SB3095sam001- 25 -LRB099 20651 RPS 46232 a

1collections during the preceding 4 complete calendar quarters
2(excluding the month of highest liability and the month of
3lowest liability) is less than $19,000 or until such taxpayer's
4average monthly liability to the Department as computed for
5each calendar quarter of the 4 preceding complete calendar
6quarters is less than $20,000. If any such quarter monthly
7payment is not paid at the time or in the amount required, the
8taxpayer shall be liable for penalties and interest on such
9difference, except insofar as the taxpayer has previously made
10payments for that month in excess of the minimum payments
11previously due.
12    If any payment provided for in this Section exceeds the
13taxpayer's liabilities under this Act, the Use Tax Act, the
14Service Occupation Tax Act and the Service Use Tax Act, as
15shown on an original monthly return, the Department shall, if
16requested by the taxpayer, issue to the taxpayer a credit
17memorandum no later than 30 days after the date of payment. The
18credit evidenced by such credit memorandum may be assigned by
19the taxpayer to a similar taxpayer under this Act, the Use Tax
20Act, the Service Occupation Tax Act or the Service Use Tax Act,
21in accordance with reasonable rules and regulations to be
22prescribed by the Department. If no such request is made, the
23taxpayer may credit such excess payment against tax liability
24subsequently to be remitted to the Department under this Act,
25the Use Tax Act, the Service Occupation Tax Act or the Service
26Use Tax Act, in accordance with reasonable rules and

 

 

09900SB3095sam001- 26 -LRB099 20651 RPS 46232 a

1regulations prescribed by the Department. If the Department
2subsequently determined that all or any part of the credit
3taken was not actually due to the taxpayer, the taxpayer's 2.1%
4and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
5of the difference between the credit taken and that actually
6due, and that taxpayer shall be liable for penalties and
7interest on such difference.
8    If a retailer of motor fuel is entitled to a credit under
9Section 2d of this Act which exceeds the taxpayer's liability
10to the Department under this Act for the month which the
11taxpayer is filing a return, the Department shall issue the
12taxpayer a credit memorandum for the excess.
13    Beginning January 1, 1990, each month the Department shall
14pay into the Local Government Tax Fund, a special fund in the
15State treasury which is hereby created, the net revenue
16realized for the preceding month from the 1% tax on sales of
17food for human consumption which is to be consumed off the
18premises where it is sold (other than alcoholic beverages, soft
19drinks and food which has been prepared for immediate
20consumption) and prescription and nonprescription medicines,
21drugs, medical appliances and insulin, urine testing
22materials, syringes and needles used by diabetics.
23    Beginning January 1, 1990, each month the Department shall
24pay into the County and Mass Transit District Fund, a special
25fund in the State treasury which is hereby created, 4% of the
26net revenue realized for the preceding month from the 6.25%

 

 

09900SB3095sam001- 27 -LRB099 20651 RPS 46232 a

1general rate.
2    Beginning August 1, 2000, each month the Department shall
3pay into the County and Mass Transit District Fund 20% of the
4net revenue realized for the preceding month from the 1.25%
5rate on the selling price of motor fuel and gasohol. Beginning
6September 1, 2010, each month the Department shall pay into the
7County and Mass Transit District Fund 20% of the net revenue
8realized for the preceding month from the 1.25% rate on the
9selling price of sales tax holiday items.
10    Beginning January 1, 1990, each month the Department shall
11pay into the Local Government Tax Fund 16% of the net revenue
12realized for the preceding month from the 6.25% general rate on
13the selling price of tangible personal property.
14    Beginning August 1, 2000, each month the Department shall
15pay into the Local Government Tax Fund 80% of the net revenue
16realized for the preceding month from the 1.25% rate on the
17selling price of motor fuel and gasohol. Beginning September 1,
182010, each month the Department shall pay into the Local
19Government Tax Fund 80% of the net revenue realized for the
20preceding month from the 1.25% rate on the selling price of
21sales tax holiday items.
22    Beginning October 1, 2009, each month the Department shall
23pay into the Capital Projects Fund an amount that is equal to
24an amount estimated by the Department to represent 80% of the
25net revenue realized for the preceding month from the sale of
26candy, grooming and hygiene products, and soft drinks that had

 

 

09900SB3095sam001- 28 -LRB099 20651 RPS 46232 a

1been taxed at a rate of 1% prior to September 1, 2009 but that
2are now taxed at 6.25%.
3    Beginning July 1, 2011, each month the Department shall pay
4into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
5realized for the preceding month from the 6.25% general rate on
6the selling price of sorbents used in Illinois in the process
7of sorbent injection as used to comply with the Environmental
8Protection Act or the federal Clean Air Act, but the total
9payment into the Clean Air Act (CAA) Permit Fund under this Act
10and the Use Tax Act shall not exceed $2,000,000 in any fiscal
11year.
12    Beginning July 1, 2013, each month the Department shall pay
13into the Underground Storage Tank Fund from the proceeds
14collected under this Act, the Use Tax Act, the Service Use Tax
15Act, and the Service Occupation Tax Act an amount equal to the
16average monthly deficit in the Underground Storage Tank Fund
17during the prior year, as certified annually by the Illinois
18Environmental Protection Agency, but the total payment into the
19Underground Storage Tank Fund under this Act, the Use Tax Act,
20the Service Use Tax Act, and the Service Occupation Tax Act
21shall not exceed $18,000,000 in any State fiscal year. As used
22in this paragraph, the "average monthly deficit" shall be equal
23to the difference between the average monthly claims for
24payment by the fund and the average monthly revenues deposited
25into the fund, excluding payments made pursuant to this
26paragraph.

 

 

09900SB3095sam001- 29 -LRB099 20651 RPS 46232 a

1    Beginning July 1, 2015, of the remainder of the moneys
2received by the Department under the Use Tax Act, the Service
3Use Tax Act, the Service Occupation Tax Act, and this Act, each
4month the Department shall deposit $500,000 into the State
5Crime Laboratory Fund.
6    Of the remainder of the moneys received by the Department
7pursuant to this Act, (a) 1.75% thereof shall be paid into the
8Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
9and after July 1, 1989, 3.8% thereof shall be paid into the
10Build Illinois Fund; provided, however, that if in any fiscal
11year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
12may be, of the moneys received by the Department and required
13to be paid into the Build Illinois Fund pursuant to this Act,
14Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
15Act, and Section 9 of the Service Occupation Tax Act, such Acts
16being hereinafter called the "Tax Acts" and such aggregate of
172.2% or 3.8%, as the case may be, of moneys being hereinafter
18called the "Tax Act Amount", and (2) the amount transferred to
19the Build Illinois Fund from the State and Local Sales Tax
20Reform Fund shall be less than the Annual Specified Amount (as
21hereinafter defined), an amount equal to the difference shall
22be immediately paid into the Build Illinois Fund from other
23moneys received by the Department pursuant to the Tax Acts; the
24"Annual Specified Amount" means the amounts specified below for
25fiscal years 1986 through 1993:
26Fiscal YearAnnual Specified Amount

 

 

09900SB3095sam001- 30 -LRB099 20651 RPS 46232 a

11986$54,800,000
21987$76,650,000
31988$80,480,000
41989$88,510,000
51990$115,330,000
61991$145,470,000
71992$182,730,000
81993$206,520,000;
9and means the Certified Annual Debt Service Requirement (as
10defined in Section 13 of the Build Illinois Bond Act) or the
11Tax Act Amount, whichever is greater, for fiscal year 1994 and
12each fiscal year thereafter; and further provided, that if on
13the last business day of any month the sum of (1) the Tax Act
14Amount required to be deposited into the Build Illinois Bond
15Account in the Build Illinois Fund during such month and (2)
16the amount transferred to the Build Illinois Fund from the
17State and Local Sales Tax Reform Fund shall have been less than
181/12 of the Annual Specified Amount, an amount equal to the
19difference shall be immediately paid into the Build Illinois
20Fund from other moneys received by the Department pursuant to
21the Tax Acts; and, further provided, that in no event shall the
22payments required under the preceding proviso result in
23aggregate payments into the Build Illinois Fund pursuant to
24this clause (b) for any fiscal year in excess of the greater of
25(i) the Tax Act Amount or (ii) the Annual Specified Amount for
26such fiscal year. The amounts payable into the Build Illinois

 

 

09900SB3095sam001- 31 -LRB099 20651 RPS 46232 a

1Fund under clause (b) of the first sentence in this paragraph
2shall be payable only until such time as the aggregate amount
3on deposit under each trust indenture securing Bonds issued and
4outstanding pursuant to the Build Illinois Bond Act is
5sufficient, taking into account any future investment income,
6to fully provide, in accordance with such indenture, for the
7defeasance of or the payment of the principal of, premium, if
8any, and interest on the Bonds secured by such indenture and on
9any Bonds expected to be issued thereafter and all fees and
10costs payable with respect thereto, all as certified by the
11Director of the Bureau of the Budget (now Governor's Office of
12Management and Budget). If on the last business day of any
13month in which Bonds are outstanding pursuant to the Build
14Illinois Bond Act, the aggregate of moneys deposited in the
15Build Illinois Bond Account in the Build Illinois Fund in such
16month shall be less than the amount required to be transferred
17in such month from the Build Illinois Bond Account to the Build
18Illinois Bond Retirement and Interest Fund pursuant to Section
1913 of the Build Illinois Bond Act, an amount equal to such
20deficiency shall be immediately paid from other moneys received
21by the Department pursuant to the Tax Acts to the Build
22Illinois Fund; provided, however, that any amounts paid to the
23Build Illinois Fund in any fiscal year pursuant to this
24sentence shall be deemed to constitute payments pursuant to
25clause (b) of the first sentence of this paragraph and shall
26reduce the amount otherwise payable for such fiscal year

 

 

09900SB3095sam001- 32 -LRB099 20651 RPS 46232 a

1pursuant to that clause (b). The moneys received by the
2Department pursuant to this Act and required to be deposited
3into the Build Illinois Fund are subject to the pledge, claim
4and charge set forth in Section 12 of the Build Illinois Bond
5Act.
6    Subject to payment of amounts into the Build Illinois Fund
7as provided in the preceding paragraph or in any amendment
8thereto hereafter enacted, the following specified monthly
9installment of the amount requested in the certificate of the
10Chairman of the Metropolitan Pier and Exposition Authority
11provided under Section 8.25f of the State Finance Act, but not
12in excess of sums designated as "Total Deposit", shall be
13deposited in the aggregate from collections under Section 9 of
14the Use Tax Act, Section 9 of the Service Use Tax Act, Section
159 of the Service Occupation Tax Act, and Section 3 of the
16Retailers' Occupation Tax Act into the McCormick Place
17Expansion Project Fund in the specified fiscal years.
18Fiscal YearTotal Deposit
191993         $0
201994 53,000,000
211995 58,000,000
221996 61,000,000
231997 64,000,000
241998 68,000,000
251999 71,000,000

 

 

09900SB3095sam001- 33 -LRB099 20651 RPS 46232 a

12000 75,000,000
22001 80,000,000
32002 93,000,000
42003 99,000,000
52004103,000,000
62005108,000,000
72006113,000,000
82007119,000,000
92008126,000,000
102009132,000,000
112010139,000,000
122011146,000,000
132012153,000,000
142013161,000,000
152014170,000,000
162015179,000,000
172016189,000,000
182017199,000,000
192018210,000,000
202019221,000,000
212020233,000,000
222021246,000,000
232022260,000,000
242023275,000,000
252024 275,000,000
262025 275,000,000

 

 

09900SB3095sam001- 34 -LRB099 20651 RPS 46232 a

12026 279,000,000
22027 292,000,000
32028 307,000,000
42029 322,000,000
52030 338,000,000
62031 350,000,000
72032 350,000,000
8and
9each fiscal year
10thereafter that bonds
11are outstanding under
12Section 13.2 of the
13Metropolitan Pier and
14Exposition Authority Act,
15but not after fiscal year 2060.
16    Beginning July 20, 1993 and in each month of each fiscal
17year thereafter, one-eighth of the amount requested in the
18certificate of the Chairman of the Metropolitan Pier and
19Exposition Authority for that fiscal year, less the amount
20deposited into the McCormick Place Expansion Project Fund by
21the State Treasurer in the respective month under subsection
22(g) of Section 13 of the Metropolitan Pier and Exposition
23Authority Act, plus cumulative deficiencies in the deposits
24required under this Section for previous months and years,
25shall be deposited into the McCormick Place Expansion Project
26Fund, until the full amount requested for the fiscal year, but

 

 

09900SB3095sam001- 35 -LRB099 20651 RPS 46232 a

1not in excess of the amount specified above as "Total Deposit",
2has been deposited.
3    Subject to payment of amounts into the Build Illinois Fund
4and the McCormick Place Expansion Project Fund pursuant to the
5preceding paragraphs or in any amendments thereto hereafter
6enacted, beginning July 1, 1993 and ending on September 30,
72013, the Department shall each month pay into the Illinois Tax
8Increment Fund 0.27% of 80% of the net revenue realized for the
9preceding month from the 6.25% general rate on the selling
10price of tangible personal property.
11    Subject to payment of amounts into the Build Illinois Fund
12and the McCormick Place Expansion Project Fund pursuant to the
13preceding paragraphs or in any amendments thereto hereafter
14enacted, beginning with the receipt of the first report of
15taxes paid by an eligible business and continuing for a 25-year
16period, the Department shall each month pay into the Energy
17Infrastructure Fund 80% of the net revenue realized from the
186.25% general rate on the selling price of Illinois-mined coal
19that was sold to an eligible business. For purposes of this
20paragraph, the term "eligible business" means a new electric
21generating facility certified pursuant to Section 605-332 of
22the Department of Commerce and Economic Opportunity Law of the
23Civil Administrative Code of Illinois.
24    Subject to payment of amounts into the Build Illinois Fund,
25the McCormick Place Expansion Project Fund, the Illinois Tax
26Increment Fund, and the Energy Infrastructure Fund pursuant to

 

 

09900SB3095sam001- 36 -LRB099 20651 RPS 46232 a

1the preceding paragraphs or in any amendments to this Section
2hereafter enacted, beginning on the first day of the first
3calendar month to occur on or after the effective date of this
4amendatory Act of the 98th General Assembly, each month, from
5the collections made under Section 9 of the Use Tax Act,
6Section 9 of the Service Use Tax Act, Section 9 of the Service
7Occupation Tax Act, and Section 3 of the Retailers' Occupation
8Tax Act, the Department shall pay into the Tax Compliance and
9Administration Fund, to be used, subject to appropriation, to
10fund additional auditors and compliance personnel at the
11Department of Revenue, an amount equal to 1/12 of 5% of 80% of
12the cash receipts collected during the preceding fiscal year by
13the Audit Bureau of the Department under the Use Tax Act, the
14Service Use Tax Act, the Service Occupation Tax Act, the
15Retailers' Occupation Tax Act, and associated local occupation
16and use taxes administered by the Department.
17    Of the remainder of the moneys received by the Department
18pursuant to this Act, 75% thereof shall be paid into the State
19Treasury and 25% shall be reserved in a special account and
20used only for the transfer to the Common School Fund as part of
21the monthly transfer from the General Revenue Fund in
22accordance with Section 8a of the State Finance Act.
23    The Department may, upon separate written notice to a
24taxpayer, require the taxpayer to prepare and file with the
25Department on a form prescribed by the Department within not
26less than 60 days after receipt of the notice an annual

 

 

09900SB3095sam001- 37 -LRB099 20651 RPS 46232 a

1information return for the tax year specified in the notice.
2Such annual return to the Department shall include a statement
3of gross receipts as shown by the retailer's last Federal
4income tax return. If the total receipts of the business as
5reported in the Federal income tax return do not agree with the
6gross receipts reported to the Department of Revenue for the
7same period, the retailer shall attach to his annual return a
8schedule showing a reconciliation of the 2 amounts and the
9reasons for the difference. The retailer's annual return to the
10Department shall also disclose the cost of goods sold by the
11retailer during the year covered by such return, opening and
12closing inventories of such goods for such year, costs of goods
13used from stock or taken from stock and given away by the
14retailer during such year, payroll information of the
15retailer's business during such year and any additional
16reasonable information which the Department deems would be
17helpful in determining the accuracy of the monthly, quarterly
18or annual returns filed by such retailer as provided for in
19this Section.
20    If the annual information return required by this Section
21is not filed when and as required, the taxpayer shall be liable
22as follows:
23        (i) Until January 1, 1994, the taxpayer shall be liable
24    for a penalty equal to 1/6 of 1% of the tax due from such
25    taxpayer under this Act during the period to be covered by
26    the annual return for each month or fraction of a month

 

 

09900SB3095sam001- 38 -LRB099 20651 RPS 46232 a

1    until such return is filed as required, the penalty to be
2    assessed and collected in the same manner as any other
3    penalty provided for in this Act.
4        (ii) On and after January 1, 1994, the taxpayer shall
5    be liable for a penalty as described in Section 3-4 of the
6    Uniform Penalty and Interest Act.
7    The chief executive officer, proprietor, owner or highest
8ranking manager shall sign the annual return to certify the
9accuracy of the information contained therein. Any person who
10willfully signs the annual return containing false or
11inaccurate information shall be guilty of perjury and punished
12accordingly. The annual return form prescribed by the
13Department shall include a warning that the person signing the
14return may be liable for perjury.
15    The provisions of this Section concerning the filing of an
16annual information return do not apply to a retailer who is not
17required to file an income tax return with the United States
18Government.
19    As soon as possible after the first day of each month, upon
20certification of the Department of Revenue, the Comptroller
21shall order transferred and the Treasurer shall transfer from
22the General Revenue Fund to the Motor Fuel Tax Fund an amount
23equal to 1.7% of 80% of the net revenue realized under this Act
24for the second preceding month. Beginning April 1, 2000, this
25transfer is no longer required and shall not be made.
26    Net revenue realized for a month shall be the revenue

 

 

09900SB3095sam001- 39 -LRB099 20651 RPS 46232 a

1collected by the State pursuant to this Act, less the amount
2paid out during that month as refunds to taxpayers for
3overpayment of liability.
4    For greater simplicity of administration, manufacturers,
5importers and wholesalers whose products are sold at retail in
6Illinois by numerous retailers, and who wish to do so, may
7assume the responsibility for accounting and paying to the
8Department all tax accruing under this Act with respect to such
9sales, if the retailers who are affected do not make written
10objection to the Department to this arrangement.
11    Any person who promotes, organizes, provides retail
12selling space for concessionaires or other types of sellers at
13the Illinois State Fair, DuQuoin State Fair, county fairs,
14local fairs, art shows, flea markets and similar exhibitions or
15events, including any transient merchant as defined by Section
162 of the Transient Merchant Act of 1987, is required to file a
17report with the Department providing the name of the merchant's
18business, the name of the person or persons engaged in
19merchant's business, the permanent address and Illinois
20Retailers Occupation Tax Registration Number of the merchant,
21the dates and location of the event and other reasonable
22information that the Department may require. The report must be
23filed not later than the 20th day of the month next following
24the month during which the event with retail sales was held.
25Any person who fails to file a report required by this Section
26commits a business offense and is subject to a fine not to

 

 

09900SB3095sam001- 40 -LRB099 20651 RPS 46232 a

1exceed $250.
2    Any person engaged in the business of selling tangible
3personal property at retail as a concessionaire or other type
4of seller at the Illinois State Fair, county fairs, art shows,
5flea markets and similar exhibitions or events, or any
6transient merchants, as defined by Section 2 of the Transient
7Merchant Act of 1987, may be required to make a daily report of
8the amount of such sales to the Department and to make a daily
9payment of the full amount of tax due. The Department shall
10impose this requirement when it finds that there is a
11significant risk of loss of revenue to the State at such an
12exhibition or event. Such a finding shall be based on evidence
13that a substantial number of concessionaires or other sellers
14who are not residents of Illinois will be engaging in the
15business of selling tangible personal property at retail at the
16exhibition or event, or other evidence of a significant risk of
17loss of revenue to the State. The Department shall notify
18concessionaires and other sellers affected by the imposition of
19this requirement. In the absence of notification by the
20Department, the concessionaires and other sellers shall file
21their returns as otherwise required in this Section.
22(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
2398-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
248-26-14; 99-352, eff. 8-12-15.)
 
25    Section 15. The Counties Code is amended by changing

 

 

09900SB3095sam001- 41 -LRB099 20651 RPS 46232 a

1Section 3-9007 as follows:
 
2    (55 ILCS 5/3-9007)  (from Ch. 34, par. 3-9007)
3    Sec. 3-9007. Home rule unit liquor tax ordinance;
4prosecutions. Where any county, municipality or other unit of
5local government has adopted any ordinance or other regulation
6imposing a tax upon the privilege of engaging in business as a
7manufacturer, importing distributor, retailer, or distributor
8of beer, alcohol or other spirits, pursuant to its home rule
9powers under Article VII, Section 6 of the Constitution of the
10State of Illinois, nothing shall prohibit a State's attorney
11from prosecuting any offense under the Criminal Code of 1961 or
12the Criminal Code of 2012 which may also constitute a violation
13of the applicable ordinance or regulation.
14(Source: P.A. 97-1150, eff. 1-25-13.)
 
15    Section 30. The Liquor Control Act of 1934 is amended by
16changing Sections 1-3.05, 1-3.15, 1-3.21, 1-3.27, 1-3.29,
171-3.33, 1-3.38, 3-12, 3-14, 4-4, 5-1, 5-3, 6-2, 6-4, 6-4.5,
186-5, 6-6, 6-6.3, 6-6.5, 6-7, 6-8, 6-9, 6-17, 6-17.1, 6-22,
196-23, 6-27.1, 6-29, 6-29.1, 6-31, 7-1, 7-6, 8-1, 8-2, 8-5,
208-10, 9-13, 10-1, and 10-7.1 and by renumbering and changing
21Section 1-3.40 as added by Public Act 99-448 as follows:
 
22    (235 ILCS 5/1-3.05)  (from Ch. 43, par. 95.05)
23    Sec. 1-3.05. "Alcoholic liquor" includes alcohol, spirits,

 

 

09900SB3095sam001- 42 -LRB099 20651 RPS 46232 a

1wine and beer, and every liquid or solid, patented or not,
2containing alcohol, spirits, wine or beer, and capable of being
3consumed as a beverage by a human being. The provisions of this
4Act shall not apply to alcohol used in the manufacture of
5denatured alcohol produced in accordance with Acts of Congress
6and regulations promulgated thereunder, nor to any liquid or
7solid containing one-half of one per cent, or less, of alcohol
8by volume. No tax provided for in Article VIII of this Act
9shall apply to wine intended for use and used by any church or
10religious organization for sacramental purposes, provided that
11such wine shall be purchased from a licensed manufacturer or
12importing distributor under this Act.
13(Source: P.A. 82-783.)
 
14    (235 ILCS 5/1-3.15)  (from Ch. 43, par. 95.15)
15    Sec. 1-3.15. "Distributor" means any person, other than a
16manufacturer or non-resident dealer licensed under this Act,
17who is engaged in this State in purchasing, storing, possessing
18or warehousing any alcoholic liquors for resale or reselling at
19wholesale, whether within or without this State. "Distributor"
20also means any person other than a non-resident dealer licensed
21under this Act who imports into this State, from any point in
22the United States outside this State, whether for himself or
23for another, any alcoholic liquors for sale or resale, or for
24use in the manufacture, preparation or compounding of products
25other than alcoholic liquors, or who imports into this State,

 

 

09900SB3095sam001- 43 -LRB099 20651 RPS 46232 a

1from any point in the United States outside this State, for
2consumption in any one calendar year, more than one gallon of
3such liquors.
4(Source: P.A. 83-1254.)
 
5    (235 ILCS 5/1-3.21)  (from Ch. 43, par. 95.21)
6    Sec. 1-3.21. "Sale" means any transfer, exchange or barter
7in any manner, or by any means whatsoever, including the
8transfer of alcoholic liquors by and through the transfer or
9negotiation of warehouse receipts or certificates, and
10includes and means all sales made by any person, whether
11principal, proprietor, agent, servant or employee. The term
12"sale" includes any transfer of alcoholic liquor from a foreign
13importer's license to a an importing distributor's license even
14if both licenses are held by the same person.
15(Source: P.A. 82-783.)
 
16    (235 ILCS 5/1-3.27)  (from Ch. 43, par. 95.27)
17    Sec. 1-3.27. "Foreign importer" means anyone other than a
18non-resident dealer licensed under this Act who imports into
19this State, from any point outside the United States, any
20alcoholic liquors other than in bulk for sale to a licensed
21importing distributor.
22(Source: P.A. 83-1254.)
 
23    (235 ILCS 5/1-3.29)  (from Ch. 43, par. 95.29)

 

 

09900SB3095sam001- 44 -LRB099 20651 RPS 46232 a

1    Sec. 1-3.29. "Non-resident dealer" means any person, firm,
2partnership, corporation or other legal business entity who or
3which exports into this State, from any point outside of this
4State, any alcoholic liquors for sale to Illinois licensed
5foreign importers or importing distributors. Such license
6shall be restricted to the actual manufacturer of such
7alcoholic liquors or the primary United States importer of such
8alcoholic liquors, if manufactured outside of the United
9States, or the duly registered agent of such manufacturer or
10importer. Registration of such agent with the State Commission,
11in such manner and form as it may prescribe, shall be a
12prerequisite to the issuance of such license to an agent.
13    Any licensed Illinois manufacturer of Class 1, Class 2, or
14Class 3 may obtain a Non-Resident Dealer's License at no fee. A
15manufacturer whose production of alcoholic liquor is less than
16500,000 gallons per year may obtain a Non-Resident Dealer's
17License for an annual fee of $75.
18(Source: P.A. 82-783.)
 
19    (235 ILCS 5/1-3.33)
20    Sec. 1-3.33. "Brew Pub" means a person who manufactures no
21more than 155,000 gallons of beer per year only at a designated
22licensed premises to make sales to importing distributors,
23distributors, and to non-licensees for use and consumption
24only, who stores beer at the designated premises, and who is
25allowed to sell at retail from the licensed premises, provided

 

 

09900SB3095sam001- 45 -LRB099 20651 RPS 46232 a

1that a brew pub licensee shall not sell for off-premises
2consumption more than 155,000 gallons per year.
3(Source: P.A. 99-448, eff. 8-24-15.)
 
4    (235 ILCS 5/1-3.38)
5    Sec. 1-3.38. Class 1 brewer. "Class 1 brewer" means a
6person who is a holder of a brewer license or non-resident
7dealer license who manufactures up to 930,000 gallons of beer
8per year and who may make sales and deliveries to importing
9distributors and distributors and to retail licensees in
10accordance with the conditions set forth in paragraph (18) of
11subsection (a) of Section 3-12 of this Act.
12(Source: P.A. 98-401, eff. 8-16-13; 99-448, eff. 8-24-15.)
 
13    (235 ILCS 5/1-3.42)
14    Sec. 1-3.42 1-3.40. Class 2 brewer. "Class 2 brewer" means
15a person who is a holder of a brewer license or non-resident
16dealer license who manufactures up to 3,720,000 gallons of beer
17per year for sale to a licensed importing distributor or
18distributor.
19(Source: P.A. 99-448, eff. 8-24-15; revised 10-28-15.)
 
20    (235 ILCS 5/3-12)
21    Sec. 3-12. Powers and duties of State Commission.
22    (a) The State commission shall have the following powers,
23functions, and duties:

 

 

09900SB3095sam001- 46 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 47 -LRB099 20651 RPS 46232 a

1    multiple violations for the sale of alcohol to a person
2    under the age of 21, a second or subsequent violation for
3    the sale of alcohol to a person under the age of 21 shall
4    only be considered if it was committed within 5 years after
5    the date when a prior violation for the sale of alcohol to
6    a person under the age of 21 was committed.
7        The fine imposed under this paragraph may not exceed
8    $500 for each violation. Each day that the activity, which
9    gave rise to the original fine, continues is a separate
10    violation. The maximum fine that may be levied against any
11    licensee, for the period of the license, shall not exceed
12    $20,000. The maximum penalty that may be imposed on a
13    licensee for selling a bottle of alcoholic liquor with a
14    foreign object in it or serving from a bottle of alcoholic
15    liquor with a foreign object in it shall be the destruction
16    of that bottle of alcoholic liquor for the first 10 bottles
17    so sold or served from by the licensee. For the eleventh
18    bottle of alcoholic liquor and for each third bottle
19    thereafter sold or served from by the licensee with a
20    foreign object in it, the maximum penalty that may be
21    imposed on the licensee is the destruction of the bottle of
22    alcoholic liquor and a fine of up to $50.
23        (2) To adopt such rules and regulations consistent with
24    the provisions of this Act which shall be necessary to
25    carry on its functions and duties to the end that the
26    health, safety and welfare of the People of the State of

 

 

09900SB3095sam001- 48 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 49 -LRB099 20651 RPS 46232 a

1    Attorney's Office of the county where the incident
2    occurred, or initiate an investigation with the
3    appropriate law enforcement officials.
4        (5.2) To issue a cease and desist notice to persons
5    shipping alcoholic liquor into this State from a point
6    outside of this State if the shipment is in violation of
7    this Act.
8        (5.3) To receive complaints from licensees, local
9    officials, law enforcement agencies, organizations, and
10    persons stating that any licensee has been or is violating
11    any provision of this Act or the rules and regulations
12    issued pursuant to this Act. Such complaints shall be in
13    writing, signed and sworn to by the person making the
14    complaint, and shall state with specificity the facts in
15    relation to the alleged violation. If the Commission has
16    reasonable grounds to believe that the complaint
17    substantially alleges a violation of this Act or rules and
18    regulations adopted pursuant to this Act, it shall conduct
19    an investigation. If, after conducting an investigation,
20    the Commission is satisfied that the alleged violation did
21    occur, it shall proceed with disciplinary action against
22    the licensee as provided in this Act.
23        (6) To hear and determine appeals from orders of a
24    local commission in accordance with the provisions of this
25    Act, as hereinafter set forth. Hearings under this
26    subsection shall be held in Springfield or Chicago, at

 

 

09900SB3095sam001- 50 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 51 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 52 -LRB099 20651 RPS 46232 a

1    with the provisions of this Act which shall be necessary
2    for the control, sale or disposition of alcoholic liquor
3    damaged as a result of an accident, wreck, flood, fire or
4    other similar occurrence.
5        (11) To develop industry educational programs related
6    to responsible serving and selling, particularly in the
7    areas of overserving consumers and illegal underage
8    purchasing and consumption of alcoholic beverages.
9        (11.1) To license persons providing education and
10    training to alcohol beverage sellers and servers for
11    mandatory and non-mandatory training under the Beverage
12    Alcohol Sellers and Servers Education and Training
13    (BASSET) programs and to develop and administer a public
14    awareness program in Illinois to reduce or eliminate the
15    illegal purchase and consumption of alcoholic beverage
16    products by persons under the age of 21. Application for a
17    license shall be made on forms provided by the State
18    Commission.
19        (12) To develop and maintain a repository of license
20    and regulatory information.
21        (13) On or before January 15, 1994, the Commission
22    shall issue a written report to the Governor and General
23    Assembly that is to be based on a comprehensive study of
24    the impact on and implications for the State of Illinois of
25    Section 1926 of the Federal ADAMHA Reorganization Act of
26    1992 (Public Law 102-321). This study shall address the

 

 

09900SB3095sam001- 53 -LRB099 20651 RPS 46232 a

1    extent to which Illinois currently complies with the
2    provisions of P.L. 102-321 and the rules promulgated
3    pursuant thereto.
4        As part of its report, the Commission shall provide the
5    following essential information:
6            (i) the number of retail distributors of tobacco
7        products, by type and geographic area, in the State;
8            (ii) the number of reported citations and
9        successful convictions, categorized by type and
10        location of retail distributor, for violation of the
11        Prevention of Tobacco Use by Minors and Sale and
12        Distribution of Tobacco Products Act and the Smokeless
13        Tobacco Limitation Act;
14            (iii) the extent and nature of organized
15        educational and governmental activities that are
16        intended to promote, encourage or otherwise secure
17        compliance with any Illinois laws that prohibit the
18        sale or distribution of tobacco products to minors; and
19            (iv) the level of access and availability of
20        tobacco products to individuals under the age of 18.
21        To obtain the data necessary to comply with the
22    provisions of P.L. 102-321 and the requirements of this
23    report, the Commission shall conduct random, unannounced
24    inspections of a geographically and scientifically
25    representative sample of the State's retail tobacco
26    distributors.

 

 

09900SB3095sam001- 54 -LRB099 20651 RPS 46232 a

1        The Commission shall consult with the Department of
2    Public Health, the Department of Human Services, the
3    Illinois State Police and any other executive branch
4    agency, and private organizations that may have
5    information relevant to this report.
6        The Commission may contract with the Food and Drug
7    Administration of the U.S. Department of Health and Human
8    Services to conduct unannounced investigations of Illinois
9    tobacco vendors to determine compliance with federal laws
10    relating to the illegal sale of cigarettes and smokeless
11    tobacco products to persons under the age of 18.
12        (14) On or before April 30, 2008 and every 2 years
13    thereafter, the Commission shall present a written report
14    to the Governor and the General Assembly that shall be
15    based on a study of the impact of this amendatory Act of
16    the 95th General Assembly on the business of soliciting,
17    selling, and shipping wine from inside and outside of this
18    State directly to residents of this State. As part of its
19    report, the Commission shall provide all of the following
20    information:
21            (A) The amount of State excise and sales tax
22        revenues generated.
23            (B) The amount of licensing fees received.
24            (C) The number of cases of wine shipped from inside
25        and outside of this State directly to residents of this
26        State.

 

 

09900SB3095sam001- 55 -LRB099 20651 RPS 46232 a

1            (D) The number of alcohol compliance operations
2        conducted.
3            (E) The number of winery shipper's licenses
4        issued.
5            (F) The number of each of the following: reported
6        violations; cease and desist notices issued by the
7        Commission; notices of violations issued by the
8        Commission and to the Department of Revenue; and
9        notices and complaints of violations to law
10        enforcement officials, including, without limitation,
11        the Illinois Attorney General and the U.S. Department
12        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
13        (15) As a means to reduce the underage consumption of
14    alcoholic liquors, the Commission shall conduct alcohol
15    compliance operations to investigate whether businesses
16    that are soliciting, selling, and shipping wine from inside
17    or outside of this State directly to residents of this
18    State are licensed by this State or are selling or
19    attempting to sell wine to persons under 21 years of age in
20    violation of this Act.
21        (16) The Commission shall, in addition to notifying any
22    appropriate law enforcement agency, submit notices of
23    complaints or violations of Sections 6-29 and 6-29.1 by
24    persons who do not hold a winery shipper's license under
25    this amendatory Act to the Illinois Attorney General and to
26    the U.S. Department of Treasury's Alcohol and Tobacco Tax

 

 

09900SB3095sam001- 56 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 57 -LRB099 20651 RPS 46232 a

1        (2) is not a member of any affiliated group that
2        produces more than 25,000 gallons of wine per annum or
3        produces any other alcoholic liquor; (3) will not
4        annually produce for sale more than 25,000 gallons of
5        wine; and (4) will not annually sell more than 5,000
6        gallons of its wine to retail licensees.
7            (D) A self-distribution exemption holder shall
8        annually certify to the Commission its production of
9        wine in the previous 12 months and its anticipated
10        production and sales for the next 12 months. The
11        Commission may fine, suspend, or revoke a
12        self-distribution exemption after a hearing if it
13        finds that the exemption holder has made a material
14        misrepresentation in its application, violated a
15        revenue or liquor law of Illinois, exceeded production
16        of 25,000 gallons of wine in any calendar year, or
17        become part of an affiliated group producing more than
18        25,000 gallons of wine or any other alcoholic liquor.
19            (E) Except in hearings for violations of this Act
20        or amendatory Act or a bona fide investigation by duly
21        sworn law enforcement officials, the Commission, or
22        its agents, the Commission shall maintain the
23        production and sales information of a
24        self-distribution exemption holder as confidential and
25        shall not release such information to any person.
26            (F) The Commission shall issue regulations

 

 

09900SB3095sam001- 58 -LRB099 20651 RPS 46232 a

1        governing self-distribution exemptions consistent with
2        this Section and this Act.
3            (G) Nothing in this subsection (17) shall prohibit
4        a self-distribution exemption holder from entering
5        into or simultaneously having a distribution agreement
6        with a licensed Illinois distributor.
7            (H) It is the intent of this subsection (17) to
8        promote and continue orderly markets. The General
9        Assembly finds that in order to preserve Illinois'
10        regulatory distribution system it is necessary to
11        create an exception for smaller makers of wine as their
12        wines are frequently adjusted in varietals, mixes,
13        vintages, and taste to find and create market niches
14        sometimes too small for distributor or importing
15        distributor business strategies. Limited
16        self-distribution rights will afford and allow smaller
17        makers of wine access to the marketplace in order to
18        develop a customer base without impairing the
19        integrity of the 3-tier system.
20        (18) (A) A class 1 brewer licensee, who must also be
21    either a licensed brewer or licensed non-resident dealer
22    and annually manufacture less than 930,000 gallons of beer,
23    may make application to the State Commission for a
24    self-distribution exemption to allow the sale of not more
25    than 232,500 gallons of the exemption holder's beer to
26    retail licensees per year.

 

 

09900SB3095sam001- 59 -LRB099 20651 RPS 46232 a

1            (B) In the application, which shall be sworn under
2        penalty of perjury, the class 1 brewer licensee shall
3        state (1) the date it was established; (2) its volume
4        of beer manufactured and sold for each year since its
5        establishment; (3) its efforts to establish
6        distributor relationships; (4) that a
7        self-distribution exemption is necessary to facilitate
8        the marketing of its beer; and (5) that it will comply
9        with the alcoholic beverage and revenue laws of the
10        United States, this State, and any other state where it
11        is licensed.
12            (C) Any application submitted shall be posted on
13        the State Commission's website at least 45 days prior
14        to action by the State Commission. The State Commission
15        shall approve the application for a self-distribution
16        exemption if the class 1 brewer licensee: (1) is in
17        compliance with the State, revenue, and alcoholic
18        beverage laws; (2) is not a member of any affiliated
19        group that manufacturers more than 930,000 gallons of
20        beer per annum or produces any other alcoholic
21        beverages; (3) shall not annually manufacture for sale
22        more than 930,000 gallons of beer; (4) shall not
23        annually sell more than 232,500 gallons of its beer to
24        retail licensees; and (5) has relinquished any brew pub
25        license held by the licensee, including any ownership
26        interest it held in the licensed brew pub.

 

 

09900SB3095sam001- 60 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 61 -LRB099 20651 RPS 46232 a

1        exceed 60 days.
2            (G) It is the intent of this paragraph (18) to
3        promote and continue orderly markets. The General
4        Assembly finds that in order to preserve Illinois'
5        regulatory distribution system, it is necessary to
6        create an exception for smaller manufacturers in order
7        to afford and allow such smaller manufacturers of beer
8        access to the marketplace in order to develop a
9        customer base without impairing the integrity of the
10        3-tier system.
11    (b) On or before April 30, 1999, the Commission shall
12present a written report to the Governor and the General
13Assembly that shall be based on a study of the impact of this
14amendatory Act of 1998 on the business of soliciting, selling,
15and shipping alcoholic liquor from outside of this State
16directly to residents of this State.
17    As part of its report, the Commission shall provide the
18following information:
19        (i) the amount of State excise and sales tax revenues
20    generated as a result of this amendatory Act of 1998;
21        (ii) the amount of licensing fees received as a result
22    of this amendatory Act of 1998;
23        (iii) the number of reported violations, the number of
24    cease and desist notices issued by the Commission, the
25    number of notices of violations issued to the Department of
26    Revenue, and the number of notices and complaints of

 

 

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1    violations to law enforcement officials.
2(Source: P.A. 98-401, eff. 8-16-13; 98-939, eff. 7-1-15;
398-941, eff. 1-1-15; 99-78, eff. 7-20-15; 99-448, eff.
48-24-15.)
 
5    (235 ILCS 5/3-14)  (from Ch. 43, par. 109)
6    Sec. 3-14. Issuance of license by Commission. Nothing
7contained in this Act shall, however, be construed to permit
8the State Commission to issue any license, other than
9manufacturer's, foreign importer's, importing distributor's,
10non-resident dealer's, and distributor's, broker's and
11non-beverage user's license for any premises in any prohibited
12territory, or to issue any license other than manufacturer's,
13foreign importer's, importing distributor's, non-resident
14dealer's, distributor's, railroad's, airplane's, boat's, or
15broker's license, auction liquor license, or non-beverage
16user's license, unless the person applying for such license
17shall have obtained a local license for the same premises. For
18purposes of this Section and only in regards to a hotel, the
19local license issued for the same premises may include multiple
20local licenses issued to a hotel operator for various portions
21of the hotel building, structure, or adjacent property owned
22and managed by the hotel operator in which alcoholic liquors
23may be stored, offered for sale, and sold; however, all of
24those portions of the hotel building, structure, or adjacent
25property shall be considered the hotel premises for purposes of

 

 

09900SB3095sam001- 63 -LRB099 20651 RPS 46232 a

1the issuance of a retailer's license by the State Commission.
2When such person has obtained a local license and has made
3application to the State Commission in conformity with this Act
4and paid the license fee provided, it shall be the duty of the
5State Commission to issue a retailer's license to him;
6provided, however, that the State Commission may refuse the
7issuance or renewal of a retailer's license, upon notice and
8after hearing, upon the grounds authorized in Section 6-3 of
9this Act, and, provided further, that the issuance of such
10license shall not prejudice the State Commission's action in
11subsequently suspending or revoking such license if it is
12determined by the State Commission, upon notice and after
13hearing, that the licensee has, within the same or the
14preceding license period, violated any provision of this Act or
15any rule or regulation issued pursuant thereto and in effect
16for 30 days prior to such violation. The Commission may also
17refuse to renew a license if the licensee has failed to pay an
18offer in compromise, pre-disciplinary settlement, or a fine
19imposed by order.
20(Source: P.A. 99-46, eff. 7-15-15.)
 
21    (235 ILCS 5/4-4)  (from Ch. 43, par. 112)
22    Sec. 4-4. Each local liquor control commissioner shall also
23have the following powers, functions and duties with respect to
24licenses, other than licenses to manufacturers, importing
25distributors, distributors, foreign importers, non-resident

 

 

09900SB3095sam001- 64 -LRB099 20651 RPS 46232 a

1dealers, non-beverage users, brokers, railroads, airplanes and
2boats.
3        1. To grant and or suspend for not more than thirty
4    days or revoke for cause all local licenses issued to
5    persons for premises within his jurisdiction;
6        2. To enter or to authorize any law enforcing officer
7    to enter at any time upon any premises licensed hereunder
8    to determine whether any of the provisions of this Act or
9    any rules or regulations adopted by him or by the State
10    Commission have been or are being violated, and at such
11    time to examine said premises of said licensee in
12    connection therewith;
13        3. To notify the Secretary of State where a club
14    incorporated under the General Not for Profit Corporation
15    Act of 1986 or a foreign corporation functioning as a club
16    in this State under a certificate of authority issued under
17    that Act has violated this Act by selling or offering for
18    sale at retail alcoholic liquors without a retailer's
19    license;
20        4. To receive complaint from any citizen within his
21    jurisdiction that any of the provisions of this Act, or any
22    rules or regulations adopted pursuant hereto, have been or
23    are being violated and to act upon such complaints in the
24    manner hereinafter provided;
25        5. To receive local license fees and pay the same
26    forthwith to the city, village, town or county treasurer as

 

 

09900SB3095sam001- 65 -LRB099 20651 RPS 46232 a

1    the case may be.
2    Each local liquor commissioner also has the duty to notify
3the Secretary of State of any convictions or dispositions of
4court supervision for a violation of Section 6-20 of this Act
5or a similar provision of a local ordinance.
6    In counties and municipalities, the local liquor control
7commissioners shall also have the power to levy fines in
8accordance with Section 7-5 of this Act.
9(Source: P.A. 95-166, eff. 1-1-08.)
 
10    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
11    Sec. 5-1. Licenses issued by the Illinois Liquor Control
12Commission shall be of the following classes:
13    (a) Manufacturer's license - Class 1. Distiller, Class 2.
14Rectifier, Class 3. Brewer, Class 4. First Class Wine
15Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
16First Class Winemaker, Class 7. Second Class Winemaker, Class
178. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1810. Class 1 Brewer, Class 11. Class 2 Brewer,
19    (b) Distributor's license,
20    (c) (Blank), Importing Distributor's license,
21    (d) Retailer's license,
22    (e) Special Event Retailer's license (not-for-profit),
23    (f) Railroad license,
24    (g) Boat license,
25    (h) Non-Beverage User's license,

 

 

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

 

 

09900SB3095sam001- 67 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 68 -LRB099 20651 RPS 46232 a

1permitted by law. A person who, prior to June 1, 2008 (the
2effective date of Public Act 95-634) this amendatory Act of the
395th General Assembly, is a holder of a second-class
4wine-maker's license and annually produces more than 25,000
5gallons of its own wine and who distributes its wine to
6licensed retailers shall cease this practice on or before July
71, 2008 in compliance with Public Act 95-634 this amendatory
8Act of the 95th General Assembly.
9    Class 8. A limited wine-manufacturer may make sales and
10deliveries not to exceed 40,000 gallons of wine per year to
11distributors, and to non-licensees in accordance with the
12provisions of this Act.
13    Class 9. A craft distiller license shall allow the
14manufacture of up to 30,000 gallons of spirits by distillation
15for one year after March 1, 2013 (the effective date of Public
16Act 97-1166) this amendatory Act of the 97th General Assembly
17and up to 35,000 gallons of spirits by distillation per year
18thereafter and the storage of such spirits. If a craft
19distiller licensee is not affiliated with any other
20manufacturer, then the craft distiller licensee may sell such
21spirits to distributors in this State and up to 2,500 gallons
22of such spirits to non-licensees to the extent permitted by any
23exemption approved by the Commission pursuant to Section 6-4 of
24this Act.
25    Any craft distiller licensed under this Act who on July 28,
262010 (the effective date of Public Act 96-1367) this amendatory

 

 

09900SB3095sam001- 69 -LRB099 20651 RPS 46232 a

1Act of the 96th General Assembly was licensed as a distiller
2and manufactured no more spirits than permitted by this Section
3shall not be required to pay the initial licensing fee.
4    Class 10. A class 1 brewer license, which may only be
5issued to a licensed brewer or licensed non-resident dealer,
6shall allow the manufacture of up to 930,000 gallons of beer
7per year provided that the class 1 brewer licensee does not
8manufacture more than a combined 930,000 gallons of beer per
9year and is not a member of or affiliated with, directly or
10indirectly, a manufacturer that produces more than 930,000
11gallons of beer per year or any other alcoholic liquor. A class
121 brewer licensee may make sales and deliveries to importing
13distributors and distributors and to retail licensees in
14accordance with the conditions set forth in paragraph (18) of
15subsection (a) of Section 3-12 of this Act.
16    Class 11. A class 2 brewer license, which may only be
17issued to a licensed brewer or licensed non-resident dealer,
18shall allow the manufacture of up to 3,720,000 gallons of beer
19per year provided that the class 2 brewer licensee does not
20manufacture more than a combined 3,720,000 gallons of beer per
21year and is not a member of or affiliated with, directly or
22indirectly, a manufacturer that produces more than 3,720,000
23gallons of beer per year or any other alcoholic liquor. A class
242 brewer licensee may make sales and deliveries to importing
25distributors and distributors, but shall not make sales or
26deliveries to any other licensee. If the State Commission

 

 

09900SB3095sam001- 70 -LRB099 20651 RPS 46232 a

1provides prior approval, a class 2 brewer licensee may annually
2transfer up to 3,720,000 gallons of beer manufactured by that
3class 2 brewer licensee to the premises of a licensed class 2
4brewer wholly owned and operated by the same licensee.
5    (a-1) A manufacturer which is licensed in this State to
6make sales or deliveries of alcoholic liquor to licensed
7distributors or importing distributors and which enlists
8agents, representatives, or individuals acting on its behalf
9who contact licensed retailers on a regular and continual basis
10in this State must register those agents, representatives, or
11persons acting on its behalf with the State Commission.
12    Registration of agents, representatives, or persons acting
13on behalf of a manufacturer is fulfilled by submitting a form
14to the Commission. The form shall be developed by the
15Commission and shall include the name and address of the
16applicant, the name and address of the manufacturer he or she
17represents, the territory or areas assigned to sell to or
18discuss pricing terms of alcoholic liquor, and any other
19questions deemed appropriate and necessary. All statements in
20the forms required to be made by law or by rule shall be deemed
21material, and any person who knowingly misstates any material
22fact under oath in an application is guilty of a Class B
23misdemeanor. Fraud, misrepresentation, false statements,
24misleading statements, evasions, or suppression of material
25facts in the securing of a registration are grounds for
26suspension or revocation of the registration. The State

 

 

09900SB3095sam001- 71 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 72 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 73 -LRB099 20651 RPS 46232 a

1consumption retailer, (ii) an off premise sale retailer, or
2(iii) a combined on premise consumption and off premise sale
3retailer.
4    Notwithstanding any other provision of this subsection
5(d), a retail licensee may sell alcoholic liquors to a special
6event retailer licensee for resale to the extent permitted
7under subsection (e).
8    (e) A special event retailer's license (not-for-profit)
9shall permit the licensee to purchase alcoholic liquors from an
10Illinois licensed distributor (unless the licensee purchases
11less than $500 of alcoholic liquors for the special event, in
12which case the licensee may purchase the alcoholic liquors from
13a licensed retailer) and shall allow the licensee to sell and
14offer for sale, at retail, alcoholic liquors for use or
15consumption, but not for resale in any form and only at the
16location and on the specific dates designated for the special
17event in the license. An applicant for a special event retailer
18license must (i) furnish with the application: (A) a resale
19number issued under Section 2c of the Retailers' Occupation Tax
20Act or evidence that the applicant is registered under Section
212a of the Retailers' Occupation Tax Act, (B) a current, valid
22exemption identification number issued under Section 1g of the
23Retailers' Occupation Tax Act, and a certification to the
24Commission that the purchase of alcoholic liquors will be a
25tax-exempt purchase, or (C) a statement that the applicant is
26not registered under Section 2a of the Retailers' Occupation

 

 

09900SB3095sam001- 74 -LRB099 20651 RPS 46232 a

1Tax Act, does not hold a resale number under Section 2c of the
2Retailers' Occupation Tax Act, and does not hold an exemption
3number under Section 1g of the Retailers' Occupation Tax Act,
4in which event the Commission shall set forth on the special
5event retailer's license a statement to that effect; (ii)
6submit with the application proof satisfactory to the State
7Commission that the applicant will provide dram shop liability
8insurance in the maximum limits; and (iii) show proof
9satisfactory to the State Commission that the applicant has
10obtained local authority approval.
11    (f) A railroad license shall permit the licensee to import
12alcoholic liquors into this State from any point in the United
13States outside this State and to store such alcoholic liquors
14in this State; to make wholesale purchases of alcoholic liquors
15directly from manufacturers, foreign importers, and
16distributors and importing distributors from within or outside
17this State; and to store such alcoholic liquors in this State;
18provided that the above powers may be exercised only in
19connection with the importation, purchase or storage of
20alcoholic liquors to be sold or dispensed on a club, buffet,
21lounge or dining car operated on an electric, gas or steam
22railway in this State; and provided further, that railroad
23licensees exercising the above powers shall be subject to all
24provisions of Article VIII of this Act as applied to importing
25distributors. A railroad license shall also permit the licensee
26to sell or dispense alcoholic liquors on any club, buffet,

 

 

09900SB3095sam001- 75 -LRB099 20651 RPS 46232 a

1lounge or dining car operated on an electric, gas or steam
2railway regularly operated by a common carrier in this State,
3but shall not permit the sale for resale of any alcoholic
4liquors to any licensee within this State. A license shall be
5obtained for each car in which such sales are made.
6    (g) A boat license shall allow the sale of alcoholic liquor
7in individual drinks, on any passenger boat regularly operated
8as a common carrier on navigable waters in this State or on any
9riverboat operated under the Riverboat Gambling Act, which boat
10or riverboat maintains a public dining room or restaurant
11thereon.
12    (h) A non-beverage user's license shall allow the licensee
13to purchase alcoholic liquor from a licensed manufacturer or
14importing distributor, without the imposition of any tax upon
15the business of such licensed manufacturer or importing
16distributor as to such alcoholic liquor to be used by such
17licensee solely for the non-beverage purposes set forth in
18subsection (a) of Section 8-1 of this Act, and such licenses
19shall be divided and classified and shall permit the purchase,
20possession and use of limited and stated quantities of
21alcoholic liquor as follows:
22Class 1, not to exceed ......................... 500 gallons
23Class 2, not to exceed ....................... 1,000 gallons
24Class 3, not to exceed ....................... 5,000 gallons
25Class 4, not to exceed ...................... 10,000 gallons
26Class 5, not to exceed ....................... 50,000 gallons

 

 

09900SB3095sam001- 76 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 77 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 78 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 79 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 80 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 81 -LRB099 20651 RPS 46232 a

1premises, (iv) sell and offer for sale at retail from the
2licensed premises for off-premises consumption no more than
3155,000 gallons per year so long as such sales are only made
4in-person, (v) sell and offer for sale at retail for use and
5consumption on the premises specified in the license any form
6of alcoholic liquor purchased from a licensed distributor or
7importing distributor, and (vi) with the prior approval of the
8Commission, annually transfer no more than 155,000 gallons of
9beer manufactured on the premises to a licensed brew pub wholly
10owned and operated by the same licensee.
11    A brew pub licensee shall not under any circumstance sell
12or offer for sale beer manufactured by the brew pub licensee to
13retail licensees.
14    A person who holds a class 2 brewer license may
15simultaneously hold a brew pub license if the class 2 brewer
16(i) does not, under any circumstance, sell or offer for sale
17beer manufactured by the class 2 brewer to retail licensees;
18(ii) does not hold more than 3 brew pub licenses in this State;
19(iii) does not manufacture more than a combined 3,720,000
20gallons of beer per year, including the beer manufactured at
21the brew pub; and (iv) is not a member of or affiliated with,
22directly or indirectly, a manufacturer that produces more than
233,720,000 gallons of beer per year or any other alcoholic
24liquor.
25    Notwithstanding any other provision of this Act, a licensed
26brewer, class 2 brewer, or non-resident dealer who before July

 

 

09900SB3095sam001- 82 -LRB099 20651 RPS 46232 a

11, 2015 manufactured less than than 3,720,000 gallons of beer
2per year and held a brew pub license on or before July 1, 2015
3may (i) continue to qualify for and hold that brew pub license
4for the licensed premises and (ii) manufacture more than
53,720,000 gallons of beer per year and continue to qualify for
6and hold that brew pub license if that brewer, class 2 brewer,
7or non-resident dealer does not simultaneously hold a class 1
8brewer license and is not a member of or affiliated with,
9directly or indirectly, a manufacturer that produces more than
103,720,000 gallons of beer per year or that produces any other
11alcoholic liquor.
12    (o) A caterer retailer license shall allow the holder to
13serve alcoholic liquors as an incidental part of a food service
14that serves prepared meals which excludes the serving of snacks
15as the primary meal, either on or off-site whether licensed or
16unlicensed.
17    (p) An auction liquor license shall allow the licensee to
18sell and offer for sale at auction wine and spirits for use or
19consumption, or for resale by an Illinois liquor licensee in
20accordance with provisions of this Act. An auction liquor
21license will be issued to a person and it will permit the
22auction liquor licensee to hold the auction anywhere in the
23State. An auction liquor license must be obtained for each
24auction at least 14 days in advance of the auction date.
25    (q) A special use permit license shall allow an Illinois
26licensed retailer to transfer a portion of its alcoholic liquor

 

 

09900SB3095sam001- 83 -LRB099 20651 RPS 46232 a

1inventory from its retail licensed premises to the premises
2specified in the license hereby created, and to sell or offer
3for sale at retail, only in the premises specified in the
4license hereby created, the transferred alcoholic liquor for
5use or consumption, but not for resale in any form. A special
6use permit license may be granted for the following time
7periods: one day or less; 2 or more days to a maximum of 15 days
8per location in any 12 month period. An applicant for the
9special use permit license must also submit with the
10application proof satisfactory to the State Commission that the
11applicant will provide dram shop liability insurance to the
12maximum limits and have local authority approval.
13    (r) A winery shipper's license shall allow a person with a
14first-class or second-class wine manufacturer's license, a
15first-class or second-class wine-maker's license, or a limited
16wine manufacturer's license or who is licensed to make wine
17under the laws of another state to ship wine made by that
18licensee directly to a resident of this State who is 21 years
19of age or older for that resident's personal use and not for
20resale. Prior to receiving a winery shipper's license, an
21applicant for the license must provide the Commission with a
22true copy of its current license in any state in which it is
23licensed as a manufacturer of wine. An applicant for a winery
24shipper's license must also complete an application form that
25provides any other information the Commission deems necessary.
26The application form shall include an acknowledgement

 

 

09900SB3095sam001- 84 -LRB099 20651 RPS 46232 a

1consenting to the jurisdiction of the Commission, the Illinois
2Department of Revenue, and the courts of this State concerning
3the enforcement of this Act and any related laws, rules, and
4regulations, including authorizing the Department of Revenue
5and the Commission to conduct audits for the purpose of
6ensuring compliance with Public Act 95-634 this amendatory Act.
7    A winery shipper licensee must pay to the Department of
8Revenue the State liquor gallonage tax under Section 8-1 for
9all wine that is sold by the licensee and shipped to a person
10in this State. For the purposes of Section 8-1, a winery
11shipper licensee shall be taxed in the same manner as a
12manufacturer of wine. A licensee who is not otherwise required
13to register under the Retailers' Occupation Tax Act must
14register under the Use Tax Act to collect and remit use tax to
15the Department of Revenue for all gallons of wine that are sold
16by the licensee and shipped to persons in this State. If a
17licensee fails to remit the tax imposed under this Act in
18accordance with the provisions of Article VIII of this Act, the
19winery shipper's license shall be revoked in accordance with
20the provisions of Article VII of this Act. If a licensee fails
21to properly register and remit tax under the Use Tax Act or the
22Retailers' Occupation Tax Act for all wine that is sold by the
23winery shipper and shipped to persons in this State, the winery
24shipper's license shall be revoked in accordance with the
25provisions of Article VII of this Act.
26    A winery shipper licensee must collect, maintain, and

 

 

09900SB3095sam001- 85 -LRB099 20651 RPS 46232 a

1submit to the Commission on a semi-annual basis the total
2number of cases per resident of wine shipped to residents of
3this State. A winery shipper licensed under this subsection (r)
4must comply with the requirements of Section 6-29 of this
5amendatory Act.
6    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
7Section 3-12, the State Commission may receive, respond to, and
8investigate any complaint and impose any of the remedies
9specified in paragraph (1) of subsection (a) of Section 3-12.
10(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
1198-756, eff. 7-16-14; 99-448, eff. 8-24-15; revised 10-27-15.)
 
12    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
13    Sec. 5-3. License fees. Except as otherwise provided
14herein, at the time application is made to the State Commission
15for a license of any class, the applicant shall pay to the
16State Commission the fee hereinafter provided for the kind of
17license applied for.
18    The fee for licenses issued by the State Commission shall
19be as follows:
20    For a manufacturer's license:
21    Class 1. Distiller .............................$3,600
22    Class 2. Rectifier .............................3,600
23    Class 3. Brewer ................................900
24    Class 4. First-class Wine Manufacturer .........600
25    Class 5. Second-class

 

 

09900SB3095sam001- 86 -LRB099 20651 RPS 46232 a

1        Wine Manufacturer ..........................1,200
2    Class 6. First-class wine-maker ................600
3    Class 7. Second-class wine-maker ...............1200
4    Class 8. Limited Wine Manufacturer..............120
5    Class 9. Craft Distiller........................ 1,800
6    Class 10. Class 1 Brewer........................25
7    Class 11. Class 2 Brewer........................ 25
8    For a Brew Pub License .........................1,050
9    For a caterer retailer's license................200
10    For a foreign importer's license ...............25
11    For an importing distributor's license ..........25
12    For a distributor's license ....................270
13    For a non-resident dealer's license
14        (500,000 gallons or over) ..................270
15    For a non-resident dealer's license
16        (under 500,000 gallons) ....................90
17    For a wine-maker's premises license ............100
18    For a winery shipper's license
19        (under 250,000 gallons).....................150
20    For a winery shipper's license
21        (250,000 or over, but under 500,000 gallons).500
22    For a winery shipper's license
23        (500,000 gallons or over)...................1,000
24    For a wine-maker's premises license,
25        second location ............................350
26    For a wine-maker's premises license,

 

 

09900SB3095sam001- 87 -LRB099 20651 RPS 46232 a

1        third location .............................350
2    For a retailer's license .......................500
3    For a special event retailer's license,
4        (not-for-profit) ...........................25
5    For a special use permit license,
6        one day only ...............................50
7        2 days or more .............................100
8    For a railroad license .........................60
9    For a boat license .............................180
10    For an airplane license, times the
11        licensee's maximum number of aircraft
12        in flight, serving liquor over the
13        State at any given time, which either
14        originate, terminate, or make
15        an intermediate stop in the State ..........60
16    For a non-beverage user's license:
17        Class 1 ....................................24
18        Class 2 ....................................60
19        Class 3 ....................................120
20        Class 4 ....................................240
21        Class 5 ....................................600
22    For a broker's license .........................600
23    For an auction liquor license ..................50
24    For a homebrewer special event permit........... 25
25    Fees collected under this Section shall be paid into the
26Dram Shop Fund. On and after July 1, 2003, of the funds

 

 

09900SB3095sam001- 88 -LRB099 20651 RPS 46232 a

1received for a retailer's license, in addition to the first
2$175, an additional $75 shall be paid into the Dram Shop Fund,
3and $250 shall be paid into the General Revenue Fund. Beginning
4June 30, 1990 and on June 30 of each subsequent year through
5June 29, 2003, any balance over $5,000,000 remaining in the
6Dram Shop Fund shall be credited to State liquor licensees and
7applied against their fees for State liquor licenses for the
8following year. The amount credited to each licensee shall be a
9proportion of the balance in the Dram Fund that is the same as
10the proportion of the license fee paid by the licensee under
11this Section for the period in which the balance was
12accumulated to the aggregate fees paid by all licensees during
13that period.
14    No fee shall be paid for licenses issued by the State
15Commission to the following non-beverage users:
16        (a) Hospitals, sanitariums, or clinics when their use
17    of alcoholic liquor is exclusively medicinal, mechanical
18    or scientific.
19        (b) Universities, colleges of learning or schools when
20    their use of alcoholic liquor is exclusively medicinal,
21    mechanical or scientific.
22        (c) Laboratories when their use is exclusively for the
23    purpose of scientific research.
24(Source: P.A. 98-55, eff. 7-5-13; 99-448, eff. 8-24-15.)
 
25    (235 ILCS 5/6-2)  (from Ch. 43, par. 120)

 

 

09900SB3095sam001- 89 -LRB099 20651 RPS 46232 a

1    Sec. 6-2. Issuance of licenses to certain persons
2prohibited.
3    (a) Except as otherwise provided in subsection (b) of this
4Section and in paragraph (1) of subsection (a) of Section 3-12,
5no license of any kind issued by the State Commission or any
6local commission shall be issued to:
7        (1) A person who is not a resident of any city, village
8    or county in which the premises covered by the license are
9    located; except in case of railroad or boat licenses.
10        (2) A person who is not of good character and
11    reputation in the community in which he resides.
12        (3) A person who is not a citizen of the United States.
13        (4) A person who has been convicted of a felony under
14    any Federal or State law, unless the Commission determines
15    that such person has been sufficiently rehabilitated to
16    warrant the public trust after considering matters set
17    forth in such person's application and the Commission's
18    investigation. The burden of proof of sufficient
19    rehabilitation shall be on the applicant.
20        (5) A person who has been convicted of keeping a place
21    of prostitution or keeping a place of juvenile
22    prostitution, promoting prostitution that involves keeping
23    a place of prostitution, or promoting juvenile
24    prostitution that involves keeping a place of juvenile
25    prostitution.
26        (6) A person who has been convicted of pandering or

 

 

09900SB3095sam001- 90 -LRB099 20651 RPS 46232 a

1    other crime or misdemeanor opposed to decency and morality.
2        (7) A person whose license issued under this Act has
3    been revoked for cause.
4        (8) A person who at the time of application for renewal
5    of any license issued hereunder would not be eligible for
6    such license upon a first application.
7        (9) A copartnership, if any general partnership
8    thereof, or any limited partnership thereof, owning more
9    than 5% of the aggregate limited partner interest in such
10    copartnership would not be eligible to receive a license
11    hereunder for any reason other than residence within the
12    political subdivision, unless residency is required by
13    local ordinance.
14        (10) A corporation or limited liability company, if any
15    member, officer, manager or director thereof, or any
16    stockholder or stockholders owning in the aggregate more
17    than 5% of the stock of such corporation, would not be
18    eligible to receive a license hereunder for any reason
19    other than citizenship and residence within the political
20    subdivision.
21        (10a) A corporation or limited liability company
22    unless it is incorporated or organized in Illinois, or
23    unless it is a foreign corporation or foreign limited
24    liability company which is qualified under the Business
25    Corporation Act of 1983 or the Limited Liability Company
26    Act to transact business in Illinois. The Commission shall

 

 

09900SB3095sam001- 91 -LRB099 20651 RPS 46232 a

1    permit and accept from an applicant for a license under
2    this Act proof prepared from the Secretary of State's
3    website that the corporation or limited liability company
4    is in good standing and is qualified under the Business
5    Corporation Act of 1983 or the Limited Liability Company
6    Act to transact business in Illinois.
7        (11) A person whose place of business is conducted by a
8    manager or agent unless the manager or agent possesses the
9    same qualifications required by the licensee.
10        (12) A person who has been convicted of a violation of
11    any Federal or State law concerning the manufacture,
12    possession or sale of alcoholic liquor, subsequent to the
13    passage of this Act or has forfeited his bond to appear in
14    court to answer charges for any such violation.
15        (13) A person who does not beneficially own the
16    premises for which a license is sought, or does not have a
17    lease thereon for the full period for which the license is
18    to be issued.
19        (14) Any law enforcing public official, including
20    members of local liquor control commissions, any mayor,
21    alderman, or member of the city council or commission, any
22    president of the village board of trustees, any member of a
23    village board of trustees, or any president or member of a
24    county board; and no such official shall have a direct
25    interest in the manufacture, sale, or distribution of
26    alcoholic liquor, except that a license may be granted to

 

 

09900SB3095sam001- 92 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 93 -LRB099 20651 RPS 46232 a

1    any conflict of interest, the elected official with the
2    direct interest in the manufacture, sale, or distribution
3    of alcoholic liquor shall not participate in any meetings,
4    hearings, or decisions on matters impacting the
5    manufacture, sale, or distribution of alcoholic liquor.
6    Furthermore, the mayor of a city with a population of
7    55,000 or less or the president of a village with a
8    population of 55,000 or less may have an interest in the
9    manufacture, sale, or distribution of alcoholic liquor as
10    long as the council or board over which he or she presides
11    has made a local liquor control commissioner appointment
12    that complies with the requirements of Section 4-2 of this
13    Act.
14        (15) A person who is not a beneficial owner of the
15    business to be operated by the licensee.
16        (16) A person who has been convicted of a gambling
17    offense as proscribed by any of subsections (a) (3) through
18    (a) (11) of Section 28-1 of, or as proscribed by Section
19    28-1.1 or 28-3 of, the Criminal Code of 1961 or the
20    Criminal Code of 2012, or as proscribed by a statute
21    replaced by any of the aforesaid statutory provisions.
22        (17) A person or entity to whom a federal wagering
23    stamp has been issued by the federal government, unless the
24    person or entity is eligible to be issued a license under
25    the Raffles and Poker Runs Act or the Illinois Pull Tabs
26    and Jar Games Act.

 

 

09900SB3095sam001- 94 -LRB099 20651 RPS 46232 a

1        (18) A person who intends to sell alcoholic liquors for
2    use or consumption on his or her licensed retail premises
3    who does not have liquor liability insurance coverage for
4    that premises in an amount that is at least equal to the
5    maximum liability amounts set out in subsection (a) of
6    Section 6-21.
7        (19) A person who is licensed by any licensing
8    authority as a manufacturer of beer, or any partnership,
9    corporation, limited liability company, or trust or any
10    subsidiary, affiliate, or agent thereof, or any other form
11    of business enterprise licensed as a manufacturer of beer,
12    having any legal, equitable, or beneficial interest,
13    directly or indirectly, in a person licensed in this State
14    as a distributor or importing distributor. For purposes of
15    this paragraph (19), a person who is licensed by any
16    licensing authority as a "manufacturer of beer" shall also
17    mean a brewer and a non-resident dealer who is also a
18    manufacturer of beer, including a partnership,
19    corporation, limited liability company, or trust or any
20    subsidiary, affiliate, or agent thereof, or any other form
21    of business enterprise licensed as a manufacturer of beer.
22        (20) A person who is licensed in this State as a
23    distributor or importing distributor, or any partnership,
24    corporation, limited liability company, or trust or any
25    subsidiary, affiliate, or agent thereof, or any other form
26    of business enterprise licensed in this State as a

 

 

09900SB3095sam001- 95 -LRB099 20651 RPS 46232 a

1    distributor or importing distributor having any legal,
2    equitable, or beneficial interest, directly or indirectly,
3    in a person licensed as a manufacturer of beer by any
4    licensing authority, or any partnership, corporation,
5    limited liability company, or trust or any subsidiary,
6    affiliate, or agent thereof, or any other form of business
7    enterprise, except for a person who owns, on or after the
8    effective date of this amendatory Act of the 98th General
9    Assembly, no more than 5% of the outstanding shares of a
10    manufacturer of beer whose shares are publicly traded on an
11    exchange within the meaning of the Securities Exchange Act
12    of 1934. For the purposes of this paragraph (20), a person
13    who is licensed by any licensing authority as a
14    "manufacturer of beer" shall also mean a brewer and a
15    non-resident dealer who is also a manufacturer of beer,
16    including a partnership, corporation, limited liability
17    company, or trust or any subsidiary, affiliate, or agent
18    thereof, or any other form of business enterprise licensed
19    as a manufacturer of beer.
20    (b) A criminal conviction of a corporation is not grounds
21for the denial, suspension, or revocation of a license applied
22for or held by the corporation if the criminal conviction was
23not the result of a violation of any federal or State law
24concerning the manufacture, possession or sale of alcoholic
25liquor, the offense that led to the conviction did not result
26in any financial gain to the corporation and the corporation

 

 

09900SB3095sam001- 96 -LRB099 20651 RPS 46232 a

1has terminated its relationship with each director, officer,
2employee, or controlling shareholder whose actions directly
3contributed to the conviction of the corporation. The
4Commission shall determine if all provisions of this subsection
5(b) have been met before any action on the corporation's
6license is initiated.
7(Source: P.A. 97-1059, eff. 8-24-12; 97-1150, eff. 1-25-13;
898-10, eff. 5-6-13; 98-21, eff. 6-13-13; 98-644, eff. 6-10-14;
998-756, eff. 7-16-14.)
 
10    (235 ILCS 5/6-4)  (from Ch. 43, par. 121)
11    Sec. 6-4. (a) No person licensed by any licensing authority
12as a distiller, or a wine manufacturer, or any subsidiary or
13affiliate thereof, or any officer, associate, member, partner,
14representative, employee, agent or shareholder owning more
15than 5% of the outstanding shares of such person shall be
16issued a an importing distributor's or distributor's license,
17nor shall any person licensed by any licensing authority as a
18an importing distributor, distributor or retailer, or any
19subsidiary or affiliate thereof, or any officer or associate,
20member, partner, representative, employee, agent or
21shareholder owning more than 5% of the outstanding shares of
22such person be issued a distiller's license or a wine
23manufacturer's license; and no person or persons licensed as a
24distiller by any licensing authority shall have any interest,
25directly or indirectly, with such distributor or importing

 

 

09900SB3095sam001- 97 -LRB099 20651 RPS 46232 a

1distributor.
2    However, an importing distributor or distributor, which on
3January 1, 1985 is owned by a brewer, or any subsidiary or
4affiliate thereof or any officer, associate, member, partner,
5representative, employee, agent or shareholder owning more
6than 5% of the outstanding shares of the importing distributor
7or distributor referred to in this paragraph, may own or
8acquire an ownership interest of more than 5% of the
9outstanding shares of a wine manufacturer and be issued a wine
10manufacturer's license by any licensing authority.
11    (b) The foregoing provisions shall not apply to any person
12licensed by any licensing authority as a distiller or wine
13manufacturer, or to any subsidiary or affiliate of any
14distiller or wine manufacturer who shall have been heretofore
15licensed by the State Commission as either an importing
16distributor or distributor during the annual licensing period
17expiring June 30, 1947, and shall actually have made sales
18regularly to retailers.
19    (c) Provided, however, that in such instances where a
20distributor's or importing distributor's license has been
21issued to any distiller or wine manufacturer or to any
22subsidiary or affiliate of any distiller or wine manufacturer
23who has, during the licensing period ending June 30, 1947, sold
24or distributed as such licensed distributor or importing
25distributor alcoholic liquors and wines to retailers, such
26distiller or wine manufacturer or any subsidiary or affiliate

 

 

09900SB3095sam001- 98 -LRB099 20651 RPS 46232 a

1of any distiller or wine manufacturer holding such
2distributor's or importing distributor's license may continue
3to sell or distribute to retailers such alcoholic liquors and
4wines which are manufactured, distilled, processed or marketed
5by distillers and wine manufacturers whose products it sold or
6distributed to retailers during the whole or any part of its
7licensing periods; and such additional brands and additional
8products may be added to the line of such distributor or
9importing distributor, provided, that such brands and such
10products were not sold or distributed by any distributor or
11importing distributor licensed by the State Commission during
12the licensing period ending June 30, 1947, but can not sell or
13distribute to retailers any other alcoholic liquors or wines.
14    (d) It shall be unlawful for any distiller licensed
15anywhere to have any stock ownership or interest in any
16distributor's or importing distributor's license wherein any
17other person has an interest therein who is not a distiller and
18does not own more than 5% of any stock in any distillery.
19Nothing herein contained shall apply to such distillers or
20their subsidiaries or affiliates, who had a distributor's or
21importing distributor's license during the licensing period
22ending June 30, 1947, which license was owned in whole by such
23distiller, or subsidiaries or affiliates of such distiller.
24    (e) Any person licensed as a brewer, class 1 brewer, or
25class 2 brewer shall be permitted to sell on the licensed
26premises to non-licensees for on or off-premises consumption

 

 

09900SB3095sam001- 99 -LRB099 20651 RPS 46232 a

1for the premises in which he or she actually conducts such
2business beer manufactured by the brewer, class 1 brewer, or
3class 2 brewer. Such sales shall be limited to on-premises,
4in-person sales only, for lawful consumption on or off
5premises. Such authorization shall be considered a privilege
6granted by the brewer license and, other than a manufacturer of
7beer as stated above, no manufacturer or distributor or
8importing distributor, excluding airplane licensees exercising
9powers provided in paragraph (i) of Section 5-1 of this Act, or
10any subsidiary or affiliate thereof, or any officer, associate,
11member, partner, representative, employee or agent, or
12shareholder shall be issued a retailer's license, nor shall any
13person having a retailer's license, excluding airplane
14licensees exercising powers provided in paragraph (i) of
15Section 5-1 of this Act, or any subsidiary or affiliate
16thereof, or any officer, associate, member, partner,
17representative or agent, or shareholder be issued a
18manufacturer's license or importing distributor's license.
19    A person who holds a class 1 or class 2 brewer license and
20is authorized by this Section to sell beer to non-licensees
21shall not sell beer to non-licensees from more than 3 total
22brewer or commonly owned brew pub licensed locations in this
23State. The class 1 or class 2 brewer shall designate to the
24State Commission the brewer or brew pub locations from which it
25will sell beer to non-licensees.
26    A person licensed as a craft distiller not affiliated with

 

 

09900SB3095sam001- 100 -LRB099 20651 RPS 46232 a

1any other person manufacturing spirits may be authorized by the
2Commission to sell up to 2,500 gallons of spirits produced by
3the person to non-licensees for on or off-premises consumption
4for the premises in which he or she actually conducts business
5permitting only the retail sale of spirits manufactured at such
6premises. Such sales shall be limited to on-premises, in-person
7sales only, for lawful consumption on or off premises, and such
8authorization shall be considered a privilege granted by the
9craft distiller license. A craft distiller licensed for retail
10sale shall secure liquor liability insurance coverage in an
11amount at least equal to the maximum liability amounts set
12forth in subsection (a) of Section 6-21 of this Act.
13    (f) (Blank).
14    (g) Notwithstanding any of the foregoing prohibitions, a
15limited wine manufacturer may sell at retail at its
16manufacturing site for on or off premises consumption and may
17sell to distributors. A limited wine manufacturer licensee
18shall secure liquor liability insurance coverage in an amount
19at least equal to the maximum liability amounts set forth in
20subsection (a) of Section 6-21 of this Act.
21    (h) The changes made to this Section by Public Act 99-47
22this amendatory Act of the 99th General Assembly shall not
23diminish or impair the rights of any person, whether a
24distiller, wine manufacturer, agent, or affiliate thereof, who
25requested in writing and submitted documentation to the State
26Commission on or before February 18, 2015 to be approved for a

 

 

09900SB3095sam001- 101 -LRB099 20651 RPS 46232 a

1retail license pursuant to what has heretofore been subsection
2(f); provided that, on or before that date, the State
3Commission considered the intent of that person to apply for
4the retail license under that subsection and, by recorded vote,
5the State Commission approved a resolution indicating that such
6a license application could be lawfully approved upon that
7person duly filing a formal application for a retail license
8and if that person, within 90 days of the State Commission
9appearance and recorded vote, first filed an application with
10the appropriate local commission, which application was
11subsequently approved by the appropriate local commission
12prior to consideration by the State Commission of that person's
13application for a retail license. It is further provided that
14the State Commission may approve the person's application for a
15retail license or renewals of such license if such person
16continues to diligently adhere to all representations made in
17writing to the State Commission on or before February 18, 2015,
18or thereafter, or in the affidavit filed by that person with
19the State Commission to support the issuance of a retail
20license and to abide by all applicable laws and duly adopted
21rules.
22(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
23revised 10-30-15.)
 
24    (235 ILCS 5/6-4.5)
25    Sec. 6-4.5. Prohibited ownership interests in a

 

 

09900SB3095sam001- 102 -LRB099 20651 RPS 46232 a

1distributor, importing distributor, manufacturer of beer, or
2non-resident dealer.
3    (a) The General Assembly finds, consistent with Section
46-1.5, that the 3-tier regulatory system is designed to prevent
5a manufacturer of beer as described in paragraph (19) of
6subsection (a) of Section 6-2 from exercising vertical
7integration between a manufacturer of beer and a distributor or
8importing distributor through any ownership interest, or
9through control of the distributor or importing distributor.
10The General Assembly further finds, consistent with Section
116-1.5, that the 3-tier regulatory system is designed to prevent
12a distributor or importing distributor as described in
13paragraph (20) of subsection (a) of Section 6-2 from having any
14ownership interest in a manufacturer of beer as described in
15paragraph (20) of subsection (a) of Section 6-2 except for the
16ownership of no more than 5% of the outstanding shares of a
17manufacturer of beer whose shares are publicly traded on an
18exchange within the meaning of the Securities Exchange Act of
191934. The General Assembly further finds that it is necessary
20to have the State Commission undertake an expedited
21investigation, in accordance with procedural due process, to
22determine whether any existing manufacturer of beer described
23in paragraph (19) of subsection (a) of Section 6-2 or any
24existing distributor or importing distributor described in
25paragraph (20) of subsection (a) of Section 6-2 owns a
26prohibited ownership interest, and an orderly process by which

 

 

09900SB3095sam001- 103 -LRB099 20651 RPS 46232 a

1an existing manufacturer of beer, distributor, or importing
2distributor may divest itself of or sever the prohibited
3ownership interest by no later than January 1, 2015.
4    (b) Notwithstanding any provision of this Act to the
5contrary, no person licensed as a manufacturer of beer as
6described in paragraph (19) of subsection (a) of Section 6-2
7shall have any prohibited ownership interest, directly or
8indirectly, in a person licensed as a distributor or importing
9distributor. Any person who holds a prohibited ownership
10interest in a person licensed as a distributor or importing
11distributor prior to this amendatory Act of the 98th General
12Assembly shall, in accordance with paragraph (19) of subsection
13(a) of Section 6-2, be ineligible to receive or hold any
14license issued by the State Commission, unless that person
15complies with the provisions of this Section.
16    (c) Notwithstanding any provision of this Act to the
17contrary, no person licensed in this State as a distributor or
18importing distributor as described in paragraph (20) of
19subsection (a) of Section 6-2 shall have any prohibited
20ownership interest, directly or indirectly, in a person
21licensed as a manufacturer of beer as described in paragraph
22(20) of subsection (a) of Section 6-2. Any person who holds an
23interest in a person licensed as a distributor or importing
24distributor in this State prior to this amendatory Act of the
2598th General Assembly shall, in accordance with paragraph (20)
26of subsection (a) of Section 6-2, be ineligible to receive or

 

 

09900SB3095sam001- 104 -LRB099 20651 RPS 46232 a

1hold a license by the State Commission, unless the person
2complies with the provisions of this Section. This subsection
3(c) shall not apply to a person who owns, on or after the
4effective date of this amendatory Act of the 98th General
5Assembly, no more than 5% of the outstanding shares of a
6manufacturer of beer whose shares are publicly traded on an
7exchange within the meaning of the Securities Exchange Act of
81934.
9    (d) Within 30 days after the effective date of this
10amendatory Act of the 98th General Assembly, the State
11Commission shall notify in writing all persons licensed by the
12State Commission as a manufacturer of beer, as described in
13paragraph (19) of subsection (a) of Section 6-2 of the
14prohibited ownership interest provision set forth in
15subsection (b) of this Section and paragraph (19) of subsection
16(a) of Section 6-2. Also within 30 days after the effective
17date of this amendatory Act of the 98th General Assembly, the
18State Commission shall notify in writing all persons licensed
19by the State Commission as a distributor or importing
20distributor of the prohibited ownership interest provision set
21forth in subsection (c) of this Section and paragraph (20) of
22subsection (a) of Section 6-2. The notice provided by the State
23Commission shall also state for a manufacturer of beer, as
24described in paragraph (19) of subsection (a) of Section 6-2,
25that it is required to disclose in writing any ownership
26interest it directly or indirectly possesses in a distributor

 

 

09900SB3095sam001- 105 -LRB099 20651 RPS 46232 a

1or importing distributor, as described in paragraph (20) of
2subsection (a) of Section 6-2, the type and amount of ownership
3interest possessed by it, the length of time the manufacturer
4of beer has held the ownership interest in the distributor or
5importing distributor, and any other information specified by
6the State Commission in its written notice. The notice provided
7by the State Commission shall also state for a distributor or
8importing distributor, as described in paragraph (20) of
9subsection (a) of Section 6-2, that it is required to disclose
10in writing any ownership interest it directly or indirectly
11possesses in a manufacturer of beer, as described in paragraph
12(19) of subsection (a) of Section 6-2, the type and amount of
13ownership interest possessed by it, the length of time the
14manufacturer of beer has held the ownership interest in the
15distributor or importing distributor, and any other
16information specified by the State Commission in its written
17notice.
18    (e) Within 60 days after the effective date of this
19amendatory Act of the 98th General Assembly, each manufacturer
20of beer, distributor, or importing distributor subject to
21notification under subsection (d) of this Section shall
22disclose in writing and under oath the relevant ownership
23interest and other required information specified in the
24notification provided by the State Commission pursuant to that
25subsection. The written disclosure shall, as a mandatory
26obligation, be tendered to the State Commission by either

 

 

09900SB3095sam001- 106 -LRB099 20651 RPS 46232 a

1personal service or via certified or registered mail at the
2State Commission's Springfield or Chicago office on or before
3the 60th day during regular business hours. Failure to tender
4the required written disclosure shall result in the immediate
5entry of an order by the State Commission suspending the
6licensee's license within 5 days after the 60th day, and the
7initiation of proceedings by the State Commission to enter an
8order to permanently revoke the licensee's license no later
9than 45 days after providing the licensee with notice and an
10opportunity for a hearing. Whenever the State Commission has
11reason to believe that a person has failed to comply with the
12Commission notice under this Section, it shall notify the
13Department of Revenue and the Attorney General, and shall file
14a complaint with the State's Attorney of the county where the
15alcoholic liquor was delivered or with appropriate law
16enforcement officials. Failure to make the written disclosure
17required under this subsection shall constitute a business
18offense for which the person shall be fined not more than
19$5,000 for a first offense, not more than $10,000 for a second
20offense, and not more than $15,000 for a third or subsequent
21offense.
22    (f) Within 180 days after the effective date of this
23amendatory Act of the 98th General Assembly, the State
24Commission shall review each of the disclosures tendered to the
25State Commission by licensees pursuant to subsection (e) and
26enter an order determining whether or not each licensee is in

 

 

09900SB3095sam001- 107 -LRB099 20651 RPS 46232 a

1compliance with subsection (b) or (c) of this Section,
2whichever is applicable, after providing each licensee with
3notice and an opportunity for a hearing. As part of making its
4determination, the State Commission shall also consider any
5information otherwise admissible under Section 10-40 of the
6Illinois Administrative Procedure Act.
7    (g) If the State Commission determines, based on a
8preponderance of record evidence, that a manufacturer of beer,
9distributor, or importing distributor has no prohibited
10ownership interest in a licensee in violation of subsection (b)
11or (c) of this Section, then the State Commission shall enter
12an order finding that the manufacturer of beer, distributor, or
13importing distributor is in compliance with this Section,
14record the matter as closed, and serve a copy of the order of
15compliance on the licensee and each person with an ownership
16interest in the licensee.
17    If the State Commission determines, based on a
18preponderance of record evidence, that a manufacturer of beer,
19as described in paragraph (19) of subsection (a) of Section
206-2, has a prohibited ownership interest as set forth in
21subsection (b) of this Section, then the State Commission shall
22enter an order finding that the manufacturer of beer is not in
23compliance with this Section and that the manufacturer of beer
24shall divest itself of that interest on or before January 1,
252015, subject to the State Commission's approval of the
26successive owner pursuant to the State Commission's authority

 

 

09900SB3095sam001- 108 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 109 -LRB099 20651 RPS 46232 a

1authority provided in this Act.
2    The State Commission's order shall further find that the
3continued ownership of the prohibited ownership interest
4beyond January 1, 2015 by the manufacturer of beer,
5distributor, or importing distributor is against the public
6interest and a violation of this Section and Section 6-1.5 of
7the Act.
8    The State Commission's order shall further find for a
9manufacturer of beer, as described in paragraph (19) of
10subsection (a) of Section 6-2, found in non-compliance with
11subsection (b) of this Section that its license is revoked on
12January 16, 2015 as to the transport, transfer, or sale of any
13alcoholic liquor to the relevant distributor or importing
14distributor that the manufacturer of beer has a prohibited
15ownership interest in if that interest is not properly divested
16on January 1, 2015, subject to the State Commission's approval
17of the successive owner pursuant to the State Commission's
18authority provided in this Act. In addition, the State
19Commission shall find that the license of a distributor or
20importing distributor that is subject to the prohibited
21ownership interest of the manufacturer of beer is revoked on
22January 16, 2015 as to the transport, transfer, or sale of
23alcoholic liquor from the relevant manufacturer of beer to any
24retailer if that ownership interest is not properly severed on
25January 1, 2015, subject to the State Commission's approval of
26the successive owner pursuant to the State Commission's

 

 

09900SB3095sam001- 110 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 111 -LRB099 20651 RPS 46232 a

1in divesting itself of or severing that interest and obtains
2the State Commission's approval of the successive owner
3pursuant to its authority provided in this Act on or before
4January 1, 2015, then the State Commission shall enter an order
5finding that the licensee is in compliance, record the matter
6as closed, and serve a copy of the order of compliance on the
7licensee and each person with an ownership interest in the
8licensee.
9    If a person with a prohibited ownership interest in
10violation of subsection (b) or (c) of this Section fails to
11divest itself of or sever that interest and obtain the State
12Commission's approval of the successive owner pursuant to the
13State Commission's authority provided in this Act on or before
14January 1, 2015, then the State Commission shall, after notice
15and an opportunity for a hearing, revoke each licensee's
16license as specified in subsection (g) of this Section on
17January 16, 2015. The State Commission, when entering the
18order, shall give notice to the person by certified mail to
19cease and desist all shipments of alcoholic liquor into or
20within this State and to withdraw from this State within 5
21working days after receipt of the notice all shipments of
22alcoholic liquor in transit. Whenever the State Commission has
23reason to believe that a person has failed to comply with the
24State Commission's notice under this Section, it shall notify
25the Department of Revenue and the Attorney General, and shall
26file a complaint with the State's Attorney of the county where

 

 

09900SB3095sam001- 112 -LRB099 20651 RPS 46232 a

1the alcoholic liquor was delivered, or with appropriate law
2enforcement officials. Failure to comply with the notice issued
3by the State Commission under this Section is against the
4public interest and constitutes a business offense for which
5the person shall be fined not more than $5,000 for a first
6offense, not more than $10,000 for a second offense, and not
7more than $15,000 for a third or subsequent offense. Each
8shipment or transfer of alcoholic liquor in violation of the
9cease and desist notice shall constitute a separate offense.
10    (i) The power and authority granted to the State Commission
11under this Section is in addition to any existing power or
12authority the State Commission has under this Act and its
13exercise shall be accorded precedence on the State Commission's
14meeting agenda so as to fully accommodate the schedule for any
15proceeding under the provisions of this Section. Nothing in
16this Act shall be construed as limiting or otherwise impairing
17the ability of the State Commission to conduct future
18investigations and proceedings sua sponte or pursuant to a
19complaint to ensure compliance with this Section or paragraph
20(19) or (20) of subsection (a) of Section 6-2 of this Act. Any
21future investigations and proceedings shall be conducted by the
22State Commission on an expedited basis and pursuant to an
23initiating order entered by the State Commission. The State
24Commission shall enter its initiating order within 30 days
25after the receipt of a complaint. The initiating order shall
26set forth a schedule by which the required notices,

 

 

09900SB3095sam001- 113 -LRB099 20651 RPS 46232 a

1disclosures, determinations, or orders specified in
2subsections (d), (e), (f), (g), and (h) shall be made or
3entered, and the period of time by which a licensee shall
4divest itself of or sever a prohibited ownership interest,
5which shall be no later than 540 days after the entry of the
6initiating order.
7    (j) Any association or non-profit corporation representing
8beer distributors in this State shall have standing to
9intervene and otherwise participate as a party in any
10proceeding undertaken by the State Commission under this
11Section to review and determine compliance or non-compliance
12with this Section.
13    (k) For purposes of this Section, the term "ownership
14interest" means a legal, equitable, or beneficial interest
15recognized under Illinois law. The term "prohibited ownership
16interest" means an ownership interest in a distributor,
17importing distributor, or manufacturer of beer as specified in
18this Section.
19(Source: P.A. 98-21, eff. 6-13-13.)
 
20    (235 ILCS 5/6-5)  (from Ch. 43, par. 122)
21    Sec. 6-5. Except as otherwise provided in this Section, it
22is unlawful for any person having a retailer's license or any
23officer, associate, member, representative or agent of such
24licensee to accept, receive or borrow money, or anything else
25of value, or accept or receive credit (other than merchandising

 

 

09900SB3095sam001- 114 -LRB099 20651 RPS 46232 a

1credit in the ordinary course of business for a period not to
2exceed 30 days) directly or indirectly from any manufacturer,
3importing distributor or distributor of alcoholic liquor, or
4from any person connected with or in any way representing, or
5from any member of the family of, such manufacturer, importing
6distributor, distributor or wholesaler, or from any
7stockholders in any corporation engaged in manufacturing,
8distributing or wholesaling of such liquor, or from any
9officer, manager, agent or representative of said
10manufacturer. Except as provided below, it is unlawful for any
11manufacturer or distributor or importing distributor to give or
12lend money or anything of value, or otherwise loan or extend
13credit (except such merchandising credit) directly or
14indirectly to any retail licensee or to the manager,
15representative, agent, officer or director of such licensee. A
16manufacturer or , distributor or importing distributor may
17furnish free advertising, posters, signs, brochures,
18hand-outs, or other promotional devices or materials to any
19unit of government owning or operating any auditorium,
20exhibition hall, recreation facility or other similar facility
21holding a retailer's license, provided that the primary purpose
22of such promotional devices or materials is to promote public
23events being held at such facility. A unit of government owning
24or operating such a facility holding a retailer's license may
25accept such promotional devices or materials designed
26primarily to promote public events held at the facility. No

 

 

09900SB3095sam001- 115 -LRB099 20651 RPS 46232 a

1retail licensee delinquent beyond the 30 day period specified
2in this Section shall solicit, accept or receive credit,
3purchase or acquire alcoholic liquors, directly or indirectly
4from any other licensee, and no manufacturer or , distributor or
5importing distributor shall knowingly grant or extend credit,
6sell, furnish or supply alcoholic liquors to any such
7delinquent retail licensee; provided that the purchase price of
8all beer sold to a retail licensee shall be paid by the retail
9licensee in cash on or before delivery of the beer, and unless
10the purchase price payable by a retail licensee for beer sold
11to him in returnable bottles shall expressly include a charge
12for the bottles and cases, the retail licensee shall, on or
13before delivery of such beer, pay the seller in cash a deposit
14in an amount not less than the deposit required to be paid by
15the distributor to the brewer; but where the brewer sells
16direct to the retailer, the deposit shall be an amount no less
17than that required by the brewer from his own distributors; and
18provided further, that in no instance shall this deposit be
19less than 50 cents for each case of beer in pint or smaller
20bottles and 60 cents for each case of beer in quart or
21half-gallon bottles; and provided further, that the purchase
22price of all beer sold to a an importing distributor or
23distributor shall be paid by such importing distributor or
24distributor in cash on or before the 15th day (Sundays and
25holidays excepted) after delivery of such beer to such
26purchaser; and unless the purchase price payable by such

 

 

09900SB3095sam001- 116 -LRB099 20651 RPS 46232 a

1importing distributor or distributor for beer sold in
2returnable bottles and cases shall expressly include a charge
3for the bottles and cases, such importing distributor or
4distributor shall, on or before the 15th day (Sundays and
5holidays excepted) after delivery of such beer to such
6purchaser, pay the seller in cash a required amount as a
7deposit to assure the return of such bottles and cases. Nothing
8herein contained shall prohibit any licensee from crediting or
9refunding to a purchaser the actual amount of money paid for
10bottles, cases, kegs or barrels returned by the purchaser to
11the seller or paid by the purchaser as a deposit on bottles,
12cases, kegs or barrels, when such containers or packages are
13returned to the seller. Nothing herein contained shall prohibit
14any manufacturer, importing distributor or distributor from
15extending usual and customary credit for alcoholic liquor sold
16to customers or purchasers who live in or maintain places of
17business outside of this State when such alcoholic liquor is
18actually transported and delivered to such points outside of
19this State.
20    A manufacturer or , distributor, or importing distributor
21may furnish free social media advertising to a retail licensee
22if the social media advertisement does not contain the retail
23price of any alcoholic liquor and the social media
24advertisement complies with any applicable rules or
25regulations issued by the Alcohol and Tobacco Tax and Trade
26Bureau of the United States Department of the Treasury. A

 

 

09900SB3095sam001- 117 -LRB099 20651 RPS 46232 a

1manufacturer or , distributor, or importing distributor may
2list the names of one or more unaffiliated retailers in the
3advertisement of alcoholic liquor through social media.
4Nothing in this Section shall prohibit a retailer from
5communicating with a manufacturer or , distributor, or
6importing distributor on social media or sharing media on the
7social media of a manufacturer or , distributor, or importing
8distributor. A retailer may request free social media
9advertising from a manufacturer or , distributor, or importing
10distributor. Nothing in this Section shall prohibit a
11manufacturer or , distributor, or importing distributor from
12sharing, reposting, or otherwise forwarding a social media post
13by a retail licensee, so long as the sharing, reposting, or
14forwarding of the social media post does not contain the retail
15price of any alcoholic liquor. No manufacturer or , distributor,
16or importing distributor shall pay or reimburse a retailer,
17directly or indirectly, for any social media advertising
18services, except as specifically permitted in this Act. No
19retailer shall accept any payment or reimbursement, directly or
20indirectly, for any social media advertising services offered
21by a manufacturer or , distributor, or importing distributor,
22except as specifically permitted in this Act. For the purposes
23of this Section, "social media" means a service, platform, or
24site where users communicate with one another and share media,
25such as pictures, videos, music, and blogs, with other users
26free of charge.

 

 

09900SB3095sam001- 118 -LRB099 20651 RPS 46232 a

1    No right of action shall exist for the collection of any
2claim based upon credit extended to a distributor, importing
3distributor or retail licensee contrary to the provisions of
4this Section.
5    Every manufacturer, importing distributor and distributor
6shall submit or cause to be submitted, to the State Commission,
7in triplicate, not later than Thursday of each calendar week, a
8verified written list of the names and respective addresses of
9each retail licensee purchasing spirits or wine from such
10manufacturer, importing distributor or distributor who, on the
11first business day of that calendar week, was delinquent beyond
12the above mentioned permissible merchandising credit period of
1330 days; or, if such is the fact, a verified written statement
14that no retail licensee purchasing spirits or wine was then
15delinquent beyond such permissible merchandising credit period
16of 30 days.
17    Every manufacturer, importing distributor and distributor
18shall submit or cause to be submitted, to the State Commission,
19in triplicate, a verified written list of the names and
20respective addresses of each previously reported delinquent
21retail licensee who has cured such delinquency by payment,
22which list shall be submitted not later than the close of the
23second full business day following the day such delinquency was
24so cured.
25    Such written verified reports required to be submitted by
26this Section shall be posted by the State Commission in each of

 

 

09900SB3095sam001- 119 -LRB099 20651 RPS 46232 a

1its offices in places available for public inspection not later
2than the day following receipt thereof by the Commission. The
3reports so posted shall constitute notice to every
4manufacturer, importing distributor and distributor of the
5information contained therein. Actual notice to manufacturers,
6importing distributors and distributors of the information
7contained in any such posted reports, however received, shall
8also constitute notice of such information.
9    The 30 day merchandising credit period allowed by this
10Section shall commence with the day immediately following the
11date of invoice and shall include all successive days including
12Sundays and holidays to and including the 30th successive day.
13    In addition to other methods allowed by law, payment by
14check during the period for which merchandising credit may be
15extended under the provisions of this Section shall be
16considered payment. All checks received in payment for
17alcoholic liquor shall be promptly deposited for collection. A
18post dated check or a check dishonored on presentation for
19payment shall not be deemed payment.
20    A retail licensee shall not be deemed to be delinquent in
21payment for any alleged sale to him of alcoholic liquor when
22there exists a bona fide dispute between such retailer and a
23manufacturer, importing distributor or distributor with
24respect to the amount of indebtedness existing because of such
25alleged sale.
26    A delinquent retail licensee who engages in the retail

 

 

09900SB3095sam001- 120 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 121 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 122 -LRB099 20651 RPS 46232 a

1sold, the following signs and inside advertising materials as
2authorized in subparts (i), (ii), (iii), and (iv):
3        (i) Permanent outside signs shall be limited to one
4    outside sign, per brand, in place and in use at any one
5    time, costing not more than $893, exclusive of erection,
6    installation, repair and maintenance costs, and permit
7    fees and shall bear only the manufacturer's name, brand
8    name, trade name, slogans, markings, trademark, or other
9    symbols commonly associated with and generally used in
10    identifying the product including, but not limited to,
11    "cold beer", "on tap", "carry out", and "packaged liquor".
12        (ii) Temporary outside signs shall be limited to one
13    temporary outside sign per brand. Examples of temporary
14    outside signs are banners, flags, pennants, streamers, and
15    other items of a temporary and non-permanent nature. Each
16    temporary outside sign must include the manufacturer's
17    name, brand name, trade name, slogans, markings,
18    trademark, or other symbol commonly associated with and
19    generally used in identifying the product. Temporary
20    outside signs may also include, for example, the product,
21    price, packaging, date or dates of a promotion and an
22    announcement of a retail licensee's specific sponsored
23    event, if the temporary outside sign is intended to promote
24    a product, and provided that the announcement of the retail
25    licensee's event and the product promotion are held
26    simultaneously. However, temporary outside signs may not

 

 

09900SB3095sam001- 123 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 124 -LRB099 20651 RPS 46232 a

1    one time shall cost in the aggregate not more than $2000
2    per manufacturer. A permanent inside sign must include the
3    manufacturer's name, brand name, trade name, slogans,
4    markings, trademark, or other symbol commonly associated
5    with and generally used in identifying the product.
6    However, permanent inside signs may not include names,
7    slogans, markings, or logos that relate to the retailer.
8    For the purpose of this subpart (iii), all permanent inside
9    signs may be displayed in an adjacent courtyard or patio
10    commonly referred to as a "beer garden" that is a part of
11    the retailer's licensed premises.
12        (iv) Temporary inside signs shall include, but are not
13    limited to, lighted chalk boards, acrylic table tent
14    beverage or hors d'oeuvre list holders, banners, flags,
15    pennants, streamers, and inside advertising materials such
16    as posters, placards, bowling sheets, table tents, inserts
17    for acrylic table tent beverage or hors d'oeuvre list
18    holders, sports schedules, or similar printed or
19    illustrated materials; however, such items, for example,
20    as coasters, trays, napkins, glassware and cups shall not
21    be deemed to be inside signs or advertising materials and
22    may only be sold to retailers. All temporary inside signs
23    and inside advertising materials in place and in use at any
24    one time shall cost in the aggregate not more than $325 per
25    manufacturer. Nothing in this subpart (iv) prohibits a
26    distributor or importing distributor from paying the cost

 

 

09900SB3095sam001- 125 -LRB099 20651 RPS 46232 a

1    of printing or creating any temporary inside banner or
2    inserts for acrylic table tent beverage or hors d'oeuvre
3    list holders for a retail licensee, provided that the
4    primary purpose for the banner or insert is to highlight,
5    promote, or advertise the product. For the purpose of this
6    subpart (iv), all temporary inside signs and inside
7    advertising materials may be displayed in an adjacent
8    courtyard or patio commonly referred to as a "beer garden"
9    that is a part of the retailer's licensed premises.
10    A "cost adjustment factor" shall be used to periodically
11update the dollar limitations prescribed in subparts (i),
12(iii), and (iv). The Commission shall establish the adjusted
13dollar limitation on an annual basis beginning in January,
141997. The term "cost adjustment factor" means a percentage
15equal to the change in the Bureau of Labor Statistics Consumer
16Price Index or 5%, whichever is greater. The restrictions
17contained in this Section 6-6 do not apply to signs, or
18promotional or advertising materials furnished by
19manufacturers or , distributors or importing distributors to a
20government owned or operated facility holding a retailer's
21license as described in Section 6-5.
22    No distributor or importing distributor shall directly or
23indirectly or through a subsidiary or affiliate, or by any
24officer, director or firm of such manufacturer or , distributor
25or importing distributor, furnish, give, lend or rent, install,
26repair or maintain, to or for any retail licensee in this

 

 

09900SB3095sam001- 126 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 127 -LRB099 20651 RPS 46232 a

1    The provisions of Public Act 90-373 concerning signs or
2advertising materials delivered by a manufacturer to a
3distributor or importing distributor shall apply only to signs
4or advertising materials delivered on or after August 14, 1997.
5    A manufacturer or , distributor, or importing distributor
6may furnish free social media advertising to a retail licensee
7if the social media advertisement does not contain the retail
8price of any alcoholic liquor and the social media
9advertisement complies with any applicable rules or
10regulations issued by the Alcohol and Tobacco Tax and Trade
11Bureau of the United States Department of the Treasury. A
12manufacturer or , distributor, or importing distributor may
13list the names of one or more unaffiliated retailers in the
14advertisement of alcoholic liquor through social media.
15Nothing in this Section shall prohibit a retailer from
16communicating with a manufacturer or , distributor, or
17importing distributor on social media or sharing media on the
18social media of a manufacturer or , distributor, or importing
19distributor. A retailer may request free social media
20advertising from a manufacturer or , distributor, or importing
21distributor. Nothing in this Section shall prohibit a
22manufacturer or , distributor, or importing distributor from
23sharing, reposting, or otherwise forwarding a social media post
24by a retail licensee, so long as the sharing, reposting, or
25forwarding of the social media post does not contain the retail
26price of any alcoholic liquor. No manufacturer or , distributor,

 

 

09900SB3095sam001- 128 -LRB099 20651 RPS 46232 a

1or importing distributor shall pay or reimburse a retailer,
2directly or indirectly, for any social media advertising
3services, except as specifically permitted in this Act. No
4retailer shall accept any payment or reimbursement, directly or
5indirectly, for any social media advertising services offered
6by a manufacturer or , distributor, or importing distributor,
7except as specifically permitted in this Act. For the purposes
8of this Section, "social media" means a service, platform, or
9site where users communicate with one another and share media,
10such as pictures, videos, music, and blogs, with other users
11free of charge.
12    No person engaged in the business of manufacturing,
13importing or distributing alcoholic liquors shall, directly or
14indirectly, pay for, or advance, furnish, or lend money for the
15payment of any license for another. Any licensee who shall
16permit or assent, or be a party in any way to any violation or
17infringement of the provisions of this Section shall be deemed
18guilty of a violation of this Act, and any money loaned
19contrary to a provision of this Act shall not be recovered
20back, or any note, mortgage or other evidence of indebtedness,
21or security, or any lease or contract obtained or made contrary
22to this Act shall be unenforceable and void.
23    This Section shall not apply to airplane licensees
24exercising powers provided in paragraph (i) of Section 5-1 of
25this Act.
26(Source: P.A. 98-756, eff. 7-16-14; 99-448, eff. 8-24-15.)
 

 

 

09900SB3095sam001- 129 -LRB099 20651 RPS 46232 a

1    (235 ILCS 5/6-6.3)
2    Sec. 6-6.3. Non-alcoholic merchandise.
3    (a) Nothing in this Act shall authorize the Illinois Liquor
4Control Commission to regulate or exercise jurisdiction over
5any action, transaction, and business of manufacturers,
6distributors, or retailers engaged in any transaction
7involving the furnishing, selling, or offering for sale of
8non-alcoholic merchandise by manufacturers, distributors, or
9retailers, unless the transaction involves expressed or
10implied agreements or understandings prohibited by this Act.
11    (b) Non-alcoholic merchandise may be sold by a manufacturer
12class license holder, non-resident dealer, foreign importer,
13importing distributor, or distributor to a retail licensee if:
14        (1) the manufacturer class license holder,
15    non-resident dealer, foreign importer, importing
16    distributor, or distributor is also in business as a bona
17    fide producer or vendor of other merchandise;
18        (2) the merchandise is sold at its fair market value;
19        (3) the non-alcoholic merchandise is not sold in
20    combination with alcoholic liquor or conditioned on the
21    sale of alcoholic liquor;
22        (4) the manufacturer class license holder's,
23    non-resident dealer's, foreign importer's, importing
24    distributor's, or distributor's acquisition or production
25    costs of the non-alcoholic merchandise appear on the

 

 

09900SB3095sam001- 130 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 131 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 132 -LRB099 20651 RPS 46232 a

1furnishings shall not be used by the retail licensee to store,
2service, display, advertise, furnish, sell, or aid in the sale
3of alcoholic liquors. All such fixtures, equipment, or
4furnishings shall be identified by the retail licensee as being
5furnished by a manufacturer class license holder, non-resident
6dealer, foreign importer, importing distributor, or
7distributor licensed by the State Commission and, if purchased
8by the retail licensee and sold on the same invoice as
9alcoholic liquor products, the price must be collected by the
10manufacturer class license holder, non-resident dealer,
11foreign importer, importing distributor, or distributor
12selling the same within 30 days of the date of sale.
13    (f) Notwithstanding any provision of this Act to the
14contrary, a manufacturer class license holder, non-resident
15dealer, foreign importer, importing distributor, or
16distributor may package and distribute alcoholic liquor in
17combination with other non-alcoholic merchandise products if
18the alcoholic liquor and non-alcoholic merchandise was
19originally packaged together for ultimate sale to consumers by
20the manufacturer or agent of the manufacturer as originally
21packaged by the manufacturer or agent of the manufacturer for
22ultimate sale to consumers.
23(Source: P.A. 99-282, eff. 8-5-15.)
 
24    (235 ILCS 5/6-6.5)
25    Sec. 6-6.5. Sanitation. A manufacturer or , distributor, or

 

 

09900SB3095sam001- 133 -LRB099 20651 RPS 46232 a

1importing distributor may sell coil cleaning services to a
2retail licensee at fair market cost.
3    A manufacturer or , distributor, or importing distributor
4may sell dispensing accessories to retail licensees at a price
5not less than the cost to the manufacturer or , distributor, or
6importing distributor who initially purchased them. Dispensing
7accessories include, but are not limited to, items such as
8standards, faucets, cold plates, rods, vents, taps, tap
9standards, hoses, washers, couplings, gas gauges, vent
10tongues, shanks, and check valves.
11    Coil cleaning supplies consisting of detergents, cleaning
12chemicals, brushes, or similar type cleaning devices may be
13sold at a price not less than the cost to the manufacturer or ,
14distributor, or importing distributor.
15(Source: P.A. 90-432, eff. 1-1-98.)
 
16    (235 ILCS 5/6-7)  (from Ch. 43, par. 124)
17    Sec. 6-7. No manufacturer or distributor or importing
18distributor or foreign importer shall sell or deliver any
19package containing alcoholic liquor manufactured or
20distributed by him unless the same shall have affixed thereto
21all cancelled revenue stamps which may be provided by Federal
22law, and shall also bear thereon a clear and legible label
23containing the name and address of the manufacturer, the kind
24of alcoholic liquor contained therein, and in the case of
25alcoholic liquor (other than beer and imported Scotch whiskey

 

 

09900SB3095sam001- 134 -LRB099 20651 RPS 46232 a

1and brandy 4 years old or more) the date when manufactured and
2the minimum alcoholic content thereof. No person or persons,
3corporation, partnership or firm shall label alcoholic liquor
4as "whiskey" or "gin" or shall import for sale or shall sell in
5this State alcoholic liquor labeled as "whiskey" or "gin"
6unless the entire alcoholic content thereof, except flavoring
7materials, is a distillate of fermented mash of grain or
8mixture of grains. Alcoholic liquor of the type of whiskey or
9gin not conforming to this requirement must be labeled
10"imitation whiskey" or "imitation gin" (as the case may be). No
11spirits shall contain any substance, compound or ingredient
12which is injurious to health or deleterious for human
13consumption. No package shall be delivered by any manufacturer
14or distributor or importing distributor or foreign importer
15unless the same shall be securely sealed so that the contents
16thereof cannot be removed without breaking the seal so placed
17thereon by said manufacturer, and no other licensee shall sell,
18have in his possession, or use any package or container which
19does not comply with this Section or does not bear evidence
20that said package, when delivered to him, complied herewith.
21(Source: P.A. 82-783.)
 
22    (235 ILCS 5/6-8)  (from Ch. 43, par. 125)
23    Sec. 6-8. Each manufacturer or importing distributor or
24foreign importer shall keep an accurate record of all alcoholic
25liquors manufactured, distributed, sold, used, or delivered by

 

 

09900SB3095sam001- 135 -LRB099 20651 RPS 46232 a

1him in this State during each month, showing therein to whom
2sold, and shall furnish a copy thereof or a report thereon to
3the State Commission, as the State Commission may, request.
4    Each importing distributor or manufacturer to whom
5alcoholic liquors imported into this State have been consigned
6shall effect possession and physical control thereof by storing
7such alcoholic liquors in the premises wherein such importing
8distributor or manufacturer is licensed to engage in such
9business as a an importing distributor or manufacturer and to
10make such alcoholic liquors together with accompanying
11invoices, bills of lading and receiving tickets available for
12inspection by an agent or representative of the Department of
13Revenue and of the State Commission.
14    All alcoholic liquor imported into this State must be
15off-loaded from the common carrier, vehicle, or mode of
16transportation by which the alcoholic liquor was delivered into
17this State. The alcoholic liquor shall be stored at the
18licensed premises of the importing distributor before sale and
19delivery to licensees in this State. A distributor or importing
20distributor, upon application to the Commission, may secure a
21waiver of the provisions of this Section for purposes of
22delivering beer directly to a licensee holding or otherwise
23participating in a special event sponsored by a unit of
24government or a not-for-profit organization.
25(Source: P.A. 88-535.)
 

 

 

09900SB3095sam001- 136 -LRB099 20651 RPS 46232 a

1    (235 ILCS 5/6-9)  (from Ch. 43, par. 126)
2    Sec. 6-9. Registration of trade marks; sale within
3geographical area; delivery to authorized persons. The
4Legislature hereby finds and declares that for purposes of
5ensuring the preservation and enhancement of interbrand
6competition in the alcoholic liquor industry within the State,
7ensuring that importation and distribution of alcoholic liquor
8in the State will be subject to thorough and inexpensive
9monitoring by the State, reducing the importation of illicit or
10untaxed alcoholic liquor into the State, excluding misbranded
11alcoholic liquor products from the State, providing incentives
12to distributors to service and sell to larger numbers of retail
13licensees in the geographic area where such distributors are
14engaged in business, and reducing the amount of spoiled and
15overaged alcoholic liquor products sold to consumers, it is
16necessary to restrict the purchase of alcoholic liquors at
17wholesale in the State to those persons selected by the
18manufacturer, distributor, importing distributor or foreign
19importer who owns or controls the trade mark, brand or name of
20the alcoholic liquor products sold to such persons, and to
21restrict the geographic area or areas within which such persons
22sell such alcoholic liquor at wholesale, as provided in this
23Section.
24    Each manufacturer, non-resident dealer, distributor,
25importing distributor, or foreign importer who owns or controls
26the trade mark, brand or name of any alcoholic liquor shall

 

 

09900SB3095sam001- 137 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 138 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 139 -LRB099 20651 RPS 46232 a

1alcoholic liquor specified on the registration form.
2    However, a licensed Illinois distributor who has not been
3registered to sell a brand of alcoholic liquor, but for a
4period of 2 years prior to November 8, 1979 has been engaged in
5the purchase of a brand for resale from a licensed Illinois
6distributor who has the right to sell that brand at wholesale,
7may continue to purchase and resell the brand at wholesale, and
8may purchase from the same distributor and resell at wholesale
9any new brands of the same manufacturer, provided that:
10        (1) Within 60 days after November 8, 1979 he identifies
11    the brand which he so purchased to the State Commission and
12    the Commission within 30 days thereafter verifies that the
13    purchases have occurred;
14        (2) Thereafter, he notifies the State Commission in
15    writing of any brands of the same manufacturer which he
16    wishes to purchase from the same distributor that were not
17    available for distribution on or before November 8, 1979,
18    and that the Commission within 30 days of such notification
19    verifies that the brand is a new brand of the same
20    manufacturer, and that the same licensed Illinois
21    distributor has the right to sell the new brand at
22    wholesale;
23        (3) His licensed business address is within the
24    geographical area for which the licensed Illinois
25    distributor from whom the purchases are made has the right
26    to sell said brand or brands of alcoholic liquor; and

 

 

09900SB3095sam001- 140 -LRB099 20651 RPS 46232 a

1        (4) His sales are made within the geographical area for
2    which the licensed Illinois distributor from whom the
3    purchases are made has the right to sell the brand or
4    brands of alcoholic liquor and only to retail licensees
5    whose licensed premises are located within the
6    aforementioned geographical area.
7    No person to whom such right is granted shall sell at
8wholesale in this State any alcoholic liquor bearing such trade
9mark, brand or name outside of the geographical area for which
10such person holds such selling right, as registered with the
11State Commission, nor shall he sell such alcoholic liquor
12within such geographical area to a retail licensee if the
13premises specified in such retailer's license are located
14outside such geographical area. Any licensed Illinois
15distributor who has not been granted the right to sell any
16alcoholic liquor at wholesale and is purchasing alcoholic
17liquor from a person who has been granted the right to sell at
18wholesale may sell and deliver only to retail licensees whose
19licensed premises are within the same geographical area as the
20person who has been granted the right to sell at wholesale.
21    No manufacturer, importing distributor, distributor,
22non-resident dealer, or foreign importer shall sell or deliver
23any package containing alcoholic liquor manufactured or
24distributed by him for resale, unless the person to whom such
25package is sold or delivered is authorized to receive such
26package in accordance with the provisions of this Act.

 

 

09900SB3095sam001- 141 -LRB099 20651 RPS 46232 a

1(Source: P.A. 96-482, eff. 8-14-09.)
 
2    (235 ILCS 5/6-17)  (from Ch. 43, par. 133)
3    Sec. 6-17. (a) No licensee licensed under the provisions of
4this Act shall deny or permit his agents and employees to deny
5any person the full and equal enjoyment of the accommodations,
6advantages, facilities and privileges of any premises in which
7alcoholic liquors are authorized to be sold subject only to the
8conditions and limitations established by law and applicable
9alike to all citizens.
10    (b) A distributor or an importing distributor may refuse to
11sell beer, brew, or similar beverages containing 0.5% or less
12of alcohol by volume to a non-licensee.
13(Source: P.A. 86-1469.)
 
14    (235 ILCS 5/6-17.1)
15    Sec. 6-17.1. Distributors; sales to retailers. The General
16Assembly hereby finds and declares that for the purposes of
17ensuring that all retail licensees have the opportunity to
18receive alcoholic liquor, reducing the amount of spoiled and
19overaged alcoholic liquor sold to customers, and maintaining
20the distribution system and the State's ability to regulate
21against illegal importation of alcoholic liquor, it is
22necessary to prevent discrimination among retail licensees as
23provided in this Section.
24    A distributor or importing distributor designated as a

 

 

09900SB3095sam001- 142 -LRB099 20651 RPS 46232 a

1distributor or importing distributor for alcoholic liquor
2within a designated geographic area or areas under Section 6-9
3of this Act shall use its best efforts to make available for
4sale to retail licensees, in its designated geographic area or
5areas, each brand of alcoholic liquor which the distributor or
6the importing distributor has been authorized to distribute.
7Nothing in this Section prohibits a distributor or importing
8distributor from establishing purchase requirements unless the
9requirements have the effect of excluding a majority of the
10retail licensees in the designated geographic area or areas
11from purchasing the alcoholic liquor.
12(Source: P.A. 91-186, eff. 1-1-00.)
 
13    (235 ILCS 5/6-22)  (from Ch. 43, par. 137)
14    Sec. 6-22. No person except a manufacturer or distributor,
15or importing distributor, shall fill or refill, in whole or in
16part, any original package of alcoholic liquor with the same or
17any other kind or quality of alcoholic liquor, and it shall be
18unlawful for any person to have in his possession for sale at
19retail any bottles, casks or other containers containing
20alcoholic liquor, except in original packages.
21(Source: P.A. 82-783.)
 
22    (235 ILCS 5/6-23)  (from Ch. 43, par. 138)
23    Sec. 6-23. No manufacturer or distributor or importing
24distributor or foreign importer shall enter into any contract

 

 

09900SB3095sam001- 143 -LRB099 20651 RPS 46232 a

1with any person licensed to sell at retail whereby such
2licensee agrees not to sell any alcoholic liquors manufactured
3or distributed by any other manufacturer or distributor or
4importing distributor or foreign importer, and any provision in
5any contract violative of this Section shall render the whole
6of such contract void and no action shall be brought thereon in
7any court. However, nothing in this Section shall prohibit the
8Department of Agriculture from entering into contracts for
9exclusive facilities upon the State Fair Grounds on an equal
10basis.
11(Source: P.A. 85-142.)
 
12    (235 ILCS 5/6-27.1)
13    Sec. 6-27.1. Responsible alcohol service server training.
14    (a) Unless issued a valid server training certificate
15between July 1, 2012 and July 1, 2015 by a certified Beverage
16Alcohol Sellers and Servers Education and Training (BASSET)
17trainer, all alcohol servers in Cook County are required to
18obtain 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, 2015 or within 120 days after the
22alcohol server begins his or her employment, whichever is
23later. All alcohol servers in a county, other than Cook County,
24with a population of 200,000 inhabitants or more are required
25to obtain and complete training in basic responsible alcohol

 

 

09900SB3095sam001- 144 -LRB099 20651 RPS 46232 a

1service as outlined in 77 Ill. Adm. Code 3500, as those
2provisions exist on July 1, 2015 (the effective date of Public
3Act 98-939), by July 1, 2016 or within 120 days after the
4alcohol server begins his or her employment, whichever is
5later. All alcohol servers in a county with a population of
6more than 30,000 inhabitants and less than 200,000 inhabitants
7are required to obtain and complete training in basic
8responsible alcohol service as outlined in 77 Ill. Adm. Code
93500, as those provisions exist on July 1, 2015 (the effective
10date of Public Act 98-939), by July 1, 2017 or within 120 days
11after the alcohol server begins his or her employment,
12whichever is later. All alcohol servers in counties with a
13population of 30,000 inhabitants or less are required to obtain
14and complete training in basic responsible alcohol service as
15outlined in 77 Ill. Adm. Code 3500, as those provisions exist
16on July 1, 2015 (the effective date of Public Act 98-939), by
17July 1, 2018 or within 120 days after the alcohol server begins
18his or her employment, whichever is later.
19    There is no limit to the amount of times a server may take
20the training. A certificate of training belongs to the server,
21and a server may transfer a certificate of training to a
22different employer, but shall not transfer a certificate of
23training to another server. Proof that an alcohol server has
24been trained must be available upon reasonable request by State
25law enforcement officials. For the purpose of this Section,
26"alcohol servers" means persons who sell or serve open

 

 

09900SB3095sam001- 145 -LRB099 20651 RPS 46232 a

1containers of alcoholic beverages at retail and anyone whose
2job description entails the checking of identification for the
3purchase of open containers of alcoholic beverages at retail or
4for entry into the licensed premises. The definition does not
5include (i) a distributor or importing distributor conducting
6product sampling as authorized in Section 6-31 of this Act or a
7registered tasting representative, as provided in 11 Ill. Adm.
8Code 100.40, conducting a tasting, as defined in 11 Ill. Adm.
9Code 100.10; (ii) a volunteer serving alcoholic beverages at a
10charitable function; or (iii) an instructor engaged in training
11or educating on the proper technique for using a system that
12dispenses alcoholic beverages.
13    (b) Responsible alcohol service training must cover and
14assess knowledge of the topics noted in 77 Ill. Adm. Code
153500.155.
16    (c) Beginning on the effective date of this amendatory Act
17of the 98th General Assembly, but no later than October 1,
182015, all existing BASSET trainers who are already BASSET
19certified as of the effective date of this amendatory Act of
20the 98th General Assembly shall be recertified by the State
21Commission and be required to comply with the conditions for
22server training set forth in this amendatory Act of the 98th
23General Assembly.
24    (d) Training modules and certificate program plans must be
25approved by the State Commission. All documents, materials, or
26information related to responsible alcohol service training

 

 

09900SB3095sam001- 146 -LRB099 20651 RPS 46232 a

1program approval that are submitted to the State Commission are
2confidential and shall not be open to public inspection or
3dissemination and are exempt from disclosure.
4    The State Commission shall only approve programs that meet
5the following criteria:
6        (1) the training course covers the content specified in
7    77 Ill. Adm. Code 3500.155;
8        (2) if the training course is classroom-based, the
9    classroom training is at least 4 hours, is available in
10    English and Spanish, and includes a test;
11        (3) if the training course is online or computer-based,
12    the course is designed in a way that ensures that no
13    content can be skipped, is interactive, has audio for
14    content for servers that have a disability, and includes a
15    test;
16        (4) training and testing is based on a job task
17    analysis that clearly identifies and focuses on the
18    knowledge, skills, and abilities needed to responsibly
19    serve alcoholic beverages and is developed using best
20    practices in instructional design and exam development to
21    ensure that the program is fair and legally defensible;
22        (5) training and testing is conducted by any means
23    available, including, but not limited to, online,
24    computer, classroom, or live trainers; and
25        (6) the program must provide access on a
26    24-hour-per-day, 7-days-per-week basis for certificate

 

 

09900SB3095sam001- 147 -LRB099 20651 RPS 46232 a

1    verification for State Commission, State law enforcement
2    officials, and employers to be able to verify certificate
3    authenticity.
4    (e) Nothing in subsection (d) of this Section shall be
5construed to require a program to use a test administrator or
6proctor.
7    (f) A certificate issued from a BASSET-licensed training
8program shall be accepted as meeting the training requirements
9for all server license and permit laws and ordinances in the
10State.
11    (g) A responsible alcohol service training certificate
12from a BASSET-licensed program shall be valid for 3 years.
13    (h) The provisions of this Section shall apply beginning
14July 1, 2015. From July 1, 2015 through December 31, 2015,
15enforcement of the provisions of this Section shall be limited
16to education and notification of the requirements to encourage
17compliance.
18    (i) The provisions of this Section do not apply to a
19special event retailer.
20(Source: P.A. 98-939, eff. 7-1-15; 99-46, eff. 7-15-15.)
 
21    (235 ILCS 5/6-29)  (from Ch. 43, par. 144e)
22    Sec. 6-29. Winery shipper's license.
23    (a) The General Assembly declares that the following is the
24intent of this Section:
25        (1) To authorize direct shipment of wine by an

 

 

09900SB3095sam001- 148 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 149 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 150 -LRB099 20651 RPS 46232 a

1indicating the location of the delivery, time of delivery, and
2the name and signature of the individual 21 years of age or
3older who accepts delivery. The Commission shall design and
4create a label or approve a label that must be affixed to the
5shipping container by the licensee.
6    (c) No broker within this State shall solicit consumers to
7engage in direct wine shipments under this Section.
8    (d) It is not the intent of this Section to impair the
9distribution of wine through distributors or importing
10distributors, but only to permit shipments of wine for personal
11use.
12(Source: P.A. 95-634, eff. 6-1-08.)
 
13    (235 ILCS 5/6-29.1)
14    Sec. 6-29.1. Direct shipments of alcoholic liquor.
15    (a) The General Assembly makes the following findings:
16        (1) The General Assembly of Illinois, having reviewed
17    this Act in light of the United States Supreme Court's 2005
18    decision in Granholm v. Heald, has determined to conform
19    that law to the constitutional principles enunciated by the
20    Court in a manner that best preserves the temperance,
21    revenue, and orderly distribution values of this Act.
22        (2) Minimizing automobile accidents and fatalities,
23    domestic violence, health problems, loss of productivity,
24    unemployment, and other social problems associated with
25    dependency and improvident use of alcoholic beverages

 

 

09900SB3095sam001- 151 -LRB099 20651 RPS 46232 a

1    remains the policy of Illinois.
2        (3) To the maximum extent constitutionally feasible,
3    Illinois desires to collect sufficient revenue from excise
4    and use taxes on alcoholic beverages for the purpose of
5    responding to such social problems.
6        (4) Combined with family education and individual
7    discipline, retail validation of age, and assessment of the
8    capacity of the consumer remains the best pre-sale social
9    protection against the problems associated with the abuse
10    of alcoholic liquor.
11        (5) Therefore, the paramount purpose of this
12    amendatory Act is to continue to carefully limit direct
13    shipment sales of wine produced by makers of wine and to
14    continue to prohibit such direct shipment sales for spirits
15    and beer.
16    For these reasons, the Commission shall establish a system
17to notify the out-of-state trade of this prohibition and to
18detect violations. The Commission shall request the Attorney
19General to extradite any offender.
20    (b) Pursuant to the Twenty-First Amendment of the United
21States Constitution allowing states to regulate the
22distribution and sale of alcoholic liquor and pursuant to the
23federal Webb-Kenyon Act declaring that alcoholic liquor
24shipped in interstate commerce must comply with state laws, the
25General Assembly hereby finds and declares that selling
26alcoholic liquor from a point outside this State through

 

 

09900SB3095sam001- 152 -LRB099 20651 RPS 46232 a

1various direct marketing means, such as catalogs, newspapers,
2mailers, and the Internet, directly to residents of this State
3poses a serious threat to the State's efforts to prevent youths
4from accessing alcoholic liquor; to State revenue collections;
5and to the economy of this State.
6    Any person manufacturing, distributing, or selling
7alcoholic liquor who knowingly ships or transports or causes
8the shipping or transportation of any alcoholic liquor from a
9point outside this State to a person in this State who does not
10hold a manufacturer's, distributor's, importing distributor's,
11or non-resident dealer's license issued by the Liquor Control
12Commission, other than a shipment of sacramental wine to a bona
13fide religious organization, a shipment authorized by Section
146-29, subparagraph (17) of Section 3-12, or any other shipment
15authorized by this Act, is in violation of this Act.
16    The Commission, upon determining, after investigation,
17that a person has violated this Section, shall give notice to
18the person by certified mail to cease and desist all shipments
19of alcoholic liquor into this State and to withdraw from this
20State within 5 working days after receipt of the notice all
21shipments of alcoholic liquor then in transit.
22    Whenever the Commission has reason to believe that a person
23has failed to comply with the Commission notice under this
24Section, it shall notify the Department of Revenue and file a
25complaint with the State's Attorney of the county where the
26alcoholic liquor was delivered or with appropriate law

 

 

09900SB3095sam001- 153 -LRB099 20651 RPS 46232 a

1enforcement officials.
2    Failure to comply with the notice issued by the Commission
3under this Section constitutes a business offense for which the
4person shall be fined not more than $1,000 for a first offense,
5not more than $5,000 for a second offense, and not more than
6$10,000 for a third or subsequent offense. Each shipment of
7alcoholic liquor delivered in violation of the cease and desist
8notice shall constitute a separate offense.
9(Source: P.A. 95-634, eff. 6-1-08.)
 
10    (235 ILCS 5/6-31)
11    Sec. 6-31. Product sampling.
12    (a) Retailer, distributor, importing distributor,
13manufacturer, and nonresident dealer licensees may conduct
14product sampling for consumption at a licensed retail location.
15Up to 3 samples, consisting of no more than (i) 1/4 ounce of
16distilled spirits, (ii) one ounce of wine, or (iii) 2 ounces of
17beer may be served to a consumer in one day.
18    (b) Notwithstanding the provisions of subsection (a), an
19on-premises retail licensee may offer for sale and serve more
20than one drink per person for sampling purposes. In any event,
21all provisions of Section 6-28 shall apply to an on-premises
22retail licensee that conducts product sampling.
23(Source: P.A. 99-46, eff. 7-15-15.)
 
24    (235 ILCS 5/7-1)  (from Ch. 43, par. 145)

 

 

09900SB3095sam001- 154 -LRB099 20651 RPS 46232 a

1    Sec. 7-1. An applicant for a retail license from the State
2Commission shall submit to the State Commission an application
3in writing under oath stating:
4        (1) The applicant's name and mailing address;
5        (2) The name and address of the applicant's business;
6        (3) If applicable, the date of the filing of the
7    "assumed name" of the business with the County Clerk;
8        (4) In case of a copartnership, the date of the
9    formation of the partnership; in the case of an Illinois
10    corporation, the date of its incorporation; or in the case
11    of a foreign corporation, the State where it was
12    incorporated and the date of its becoming qualified under
13    the Business Corporation Act of 1983 to transact business
14    in the State of Illinois;
15        (5) The number, the date of issuance and the date of
16    expiration of the applicant's current local retail liquor
17    license;
18        (6) The name of the city, village, or county that
19    issued the local retail liquor license;
20        (7) The name and address of the landlord if the
21    premises are leased;
22        (8) The date of the applicant's first request for a
23    State liquor license and whether it was granted, denied or
24    withdrawn;
25        (9) The address of the applicant when the first
26    application for a State liquor license was made;

 

 

09900SB3095sam001- 155 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 156 -LRB099 20651 RPS 46232 a

1    therefor;
2        (21) Whether the applicant has ever been convicted of a
3    gambling offense or felony, and if so, the particulars
4    thereof;
5        (22) Whether the applicant possesses a current Federal
6    Wagering Stamp, and if so, the reasons therefor;
7        (23) Whether the applicant, or any other person,
8    directly in his place of business is a public official, and
9    if so, the particulars thereof;
10        (24) The applicant's name, sex, date of birth, social
11    security number, position and percentage of ownership in
12    the business; and the name, sex, date of birth, social
13    security number, position and percentage of ownership in
14    the business of every sole owner, partner, corporate
15    officer, director, manager and any person who owns 5% or
16    more of the shares of the applicant business entity or
17    parent corporations of the applicant business entity; and
18        (25) That he has not received or borrowed money or
19    anything else of value, and that he will not receive or
20    borrow money or anything else of value (other than
21    merchandising credit in the ordinary course of business for
22    a period not to exceed 90 days as herein expressly
23    permitted under Section 6-5 hereof), directly or
24    indirectly, from any manufacturer, importing distributor
25    or distributor or from any representative of any such
26    manufacturer, importing distributor or distributor, nor be

 

 

09900SB3095sam001- 157 -LRB099 20651 RPS 46232 a

1    a party in any way, directly or indirectly, to any
2    violation by a manufacturer or , distributor or importing
3    distributor of Section 6-6 of this Act.
4    In addition to any other requirement of this Section, an
5applicant for a special use permit license and a special event
6retailer's license shall also submit (A) proof satisfactory to
7the Commission that the applicant has a resale number issued
8under Section 2c of the Retailers' Occupation Tax Act or that
9the applicant is registered under Section 2a of the Retailers'
10Occupation Tax Act, (B) proof satisfactory to the Commission
11that the applicant has a current, valid exemption
12identification number issued under Section 1g of the Retailers'
13Occupation Tax Act and a certification to the Commission that
14the purchase of alcoholic liquors will be a tax-exempt
15purchase, or (C) a statement that the applicant is not
16registered under Section 2a of the Retailers' Occupation Tax
17Act, does not hold a resale number under Section 2c of the
18Retailers' Occupation Tax Act, and does not hold an exemption
19number under Section 1g of the Retailers' Occupation Tax Act.
20The applicant shall also submit proof of adequate dram shop
21insurance for the special event prior to being issued a
22license.
23    In addition to the foregoing information, such application
24shall contain such other and further information as the State
25Commission and the local commission may, by rule or regulation
26not inconsistent with law, prescribe.

 

 

09900SB3095sam001- 158 -LRB099 20651 RPS 46232 a

1    If the applicant reports a felony conviction as required
2under paragraph (21) of this Section, such conviction may be
3considered by the Commission in determining qualifications for
4licensing, but shall not operate as a bar to licensing.
5    If said application is made in behalf of a partnership,
6firm, association, club or corporation, then the same shall be
7signed by one member of such partnership or the president or
8secretary of such corporation or an authorized agent of said
9partnership or corporation.
10    All other applications shall be on forms prescribed by the
11State Commission, and which may exclude any of the above
12requirements which the State Commission rules to be
13inapplicable.
14(Source: P.A. 98-756, eff. 7-16-14.)
 
15    (235 ILCS 5/7-6)  (from Ch. 43, par. 150)
16    Sec. 7-6. All proceedings for the revocation or suspension
17of licenses of manufacturers, distributors, importing
18distributors, non-resident dealers, foreign importers,
19non-beverage users, railroads, airplanes and boats shall be
20before the State Commission. All such proceedings and all
21proceedings for the revocation or suspension of a retailer's
22license before the State commission shall be in accordance with
23rules and regulations established by it not inconsistent with
24law. However, no such license shall be so revoked or suspended
25except after a hearing by the State commission with reasonable

 

 

09900SB3095sam001- 159 -LRB099 20651 RPS 46232 a

1notice to the licensee served by registered or certified mail
2with return receipt requested at least 10 days prior to the
3hearings at the last known place of business of the licensee
4and after an opportunity to appear and defend. Such notice
5shall specify the time and place of the hearing, the nature of
6the charges, the specific provisions of the Act and rules
7violated, and the specific facts supporting the charges or
8violation. The findings of the Commission shall be predicated
9upon competent evidence. The revocation of a local license
10shall automatically result in the revocation of a State
11license. Upon notification by the Illinois Department of
12Revenue, the State Commission, in accordance with Section 3-12,
13may refuse the issuance or renewal of a license, fine a
14licensee, or suspend or revoke any license issued by the State
15Commission if the licensee or license applicant has violated
16the provisions of Section 3 of the Retailers' Occupation Tax
17Act. All procedures for the suspension or revocation of a
18license, as enumerated above, are applicable to the levying of
19fines for violations of this Act or any rule or regulation
20issued pursuant thereto.
21(Source: P.A. 95-331, eff. 8-21-07.)
 
22    (235 ILCS 5/8-1)
23    Sec. 8-1. A tax is imposed upon the privilege of engaging
24in business as a manufacturer or as an importing distributor of
25alcoholic liquor other than beer at the rate of $0.185 per

 

 

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1gallon until September 1, 2009 and $0.231 per gallon beginning
2September 1, 2009 for cider containing not less than 0.5%
3alcohol by volume nor more than 7% alcohol by volume, $0.73 per
4gallon until September 1, 2009 and $1.39 per gallon beginning
5September 1, 2009 for wine other than cider containing less
6than 7% alcohol by volume, and $4.50 per gallon until September
71, 2009 and $8.55 per gallon beginning September 1, 2009 on
8alcohol and spirits 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. A tax is imposed upon the privilege of engaging in
12business as a manufacturer of beer or as an importing
13distributor of beer at the rate of $0.185 per gallon until
14September 1, 2009 and $0.231 per gallon beginning September 1,
152009 on all beer manufactured and sold or used by such
16manufacturer, or as agent for any other person, or sold or used
17by such importing distributor, or as agent for any other
18person. Any brewer manufacturing beer in this State shall be
19entitled to and given a credit or refund of 75% of the tax
20imposed on each gallon of beer up to 4.9 million gallons per
21year in any given calendar year for tax paid or payable on beer
22produced and sold in the State of Illinois.
23    For the purpose of this Section, "cider" means any
24alcoholic beverage obtained by the alcohol fermentation of the
25juice of apples or pears including, but not limited to,
26flavored, sparkling, or carbonated cider.

 

 

09900SB3095sam001- 161 -LRB099 20651 RPS 46232 a

1    The credit or refund created by this Act shall apply to all
2beer taxes in the calendar years 1982 through 1986.
3    The increases made by this amendatory Act of the 91st
4General Assembly in the rates of taxes imposed under this
5Section shall apply beginning on July 1, 1999.
6    A tax at the rate of 1 per gallon on beer and 48 per
7gallon on alcohol and spirits is also imposed upon the
8privilege of engaging in business as a retailer or as a
9distributor who is not also an importing distributor with
10respect to all beer and all alcohol and spirits owned or
11possessed by such retailer or distributor when this amendatory
12Act of 1969 becomes effective, and with respect to which the
13additional tax imposed by this amendatory Act upon
14manufacturers and importing distributors does not apply.
15Retailers and distributors who are subject to the additional
16tax imposed by this paragraph of this Section shall be required
17to inventory such alcoholic liquor and to pay this additional
18tax in a manner prescribed by the Department.
19    The provisions of this Section shall be construed to apply
20to any importing distributor engaging in business in this
21State, whether licensed or not.
22    However, such tax is not imposed upon any such business as
23to any alcoholic liquor shipped outside Illinois by an Illinois
24licensed manufacturer or importing distributor, nor as to any
25alcoholic liquor delivered in Illinois by an Illinois licensed
26manufacturer or importing distributor to a purchaser for

 

 

09900SB3095sam001- 162 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 163 -LRB099 20651 RPS 46232 a

1occupation or privilege taxes imposed by the State of Illinois
2or political subdivision thereof.
3    If any alcoholic liquor manufactured in or imported into
4this State is sold to a licensed manufacturer or importing
5distributor by a licensed manufacturer or importing
6distributor to be used solely as an ingredient in the
7manufacture of any beverage for human consumption, the tax
8imposed upon such purchasing manufacturer or importing
9distributor shall be reduced by the amount of the taxes which
10have been paid by the selling manufacturer or importing
11distributor under this Act as to such alcoholic liquor so used
12to the Department of Revenue.
13    If any person received any alcoholic liquors from a
14manufacturer or importing distributor, with respect to which
15alcoholic liquors no tax is imposed under this Article, and
16such alcoholic liquor shall thereafter be disposed of in such
17manner or under such circumstances as may cause the same to
18become the base for the tax imposed by this Article, such
19person shall make the same reports and returns, pay the same
20taxes and be subject to all other provisions of this Article
21relating to manufacturers and importing distributors.
22    Nothing in this Article shall be construed to require the
23payment to the Department of the taxes imposed by this Article
24more than once with respect to any quantity of alcoholic liquor
25sold or used within this State.
26    No tax is imposed by this Act on sales of alcoholic liquor

 

 

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1by Illinois licensed foreign importers to Illinois licensed
2importing distributors.
3    All of the proceeds of the additional tax imposed by Public
4Act 96-34 shall be deposited by the Department into the Capital
5Projects Fund. The remainder of the tax imposed by this Act
6shall be deposited by the Department into the General Revenue
7Fund.
8    The provisions of this Section 8-1 are severable under
9Section 1.31 of the Statute on Statutes.
10(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
11eff. 7-13-09; 96-1000, eff. 7-2-10.)
 
12    (235 ILCS 5/8-2)  (from Ch. 43, par. 159)
13    Sec. 8-2. It is the duty of each manufacturer with respect
14to alcoholic liquor produced or imported by such manufacturer,
15or purchased tax-free by such manufacturer from another
16manufacturer or importing distributor, and of each importing
17distributor as to alcoholic liquor purchased by such importing
18distributor from foreign importers or from anyone from any
19point in the United States outside of this State or purchased
20tax-free from another manufacturer or importing distributor,
21to pay the tax imposed by Section 8-1 to the Department of
22Revenue on or before the 15th day of the calendar month
23following the calendar month in which such alcoholic liquor is
24sold or used by such manufacturer or by such importing
25distributor other than in an authorized tax-free manner or to

 

 

09900SB3095sam001- 165 -LRB099 20651 RPS 46232 a

1pay that tax electronically as provided in this Section.
2    Each manufacturer and each importing distributor shall
3make payment under one of the following methods: (1) on or
4before the 15th day of each calendar month, file in person or
5by United States first-class mail, postage pre-paid, with the
6Department of Revenue, on forms prescribed and furnished by the
7Department, a report in writing in such form as may be required
8by the Department in order to compute, and assure the accuracy
9of, the tax due on all taxable sales and uses of alcoholic
10liquor occurring during the preceding month. Payment of the tax
11in the amount disclosed by the report shall accompany the
12report or, (2) on or before the 15th day of each calendar
13month, electronically file with the Department of Revenue, on
14forms prescribed and furnished by the Department, an electronic
15report in such form as may be required by the Department in
16order to compute, and assure the accuracy of, the tax due on
17all taxable sales and uses of alcoholic liquor occurring during
18the preceding month. An electronic payment of the tax in the
19amount disclosed by the report shall accompany the report. A
20manufacturer or distributor who files an electronic report and
21electronically pays the tax imposed pursuant to Section 8-1 to
22the Department of Revenue on or before the 15th day of the
23calendar month following the calendar month in which such
24alcoholic liquor is sold or used by that manufacturer or
25importing distributor other than in an authorized tax-free
26manner shall pay to the Department the amount of the tax

 

 

09900SB3095sam001- 166 -LRB099 20651 RPS 46232 a

1imposed pursuant to Section 8-1, less a discount which is
2allowed to reimburse the manufacturer or importing distributor
3for the expenses incurred in keeping and maintaining records,
4preparing and filing the electronic returns, remitting the tax,
5and supplying data to the Department upon request.
6    The discount shall be in an amount as follows:
7        (1) For original returns due on or after January 1,
8    2003 through September 30, 2003, the discount shall be
9    1.75% or $1,250 per return, whichever is less;
10        (2) For original returns due on or after October 1,
11    2003 through September 30, 2004, the discount shall be 2%
12    or $3,000 per return, whichever is less; and
13        (3) For original returns due on or after October 1,
14    2004, the discount shall be 2% or $2,000 per return,
15    whichever is less.
16    The Department may, if it deems it necessary in order to
17insure the payment of the tax imposed by this Article, require
18returns to be made more frequently than and covering periods of
19less than a month. Such return shall contain such further
20information as the Department may reasonably require.
21    It shall be presumed that all alcoholic liquors acquired or
22made by any importing distributor or manufacturer have been
23sold or used by him in this State and are the basis for the tax
24imposed by this Article unless proven, to the satisfaction of
25the Department, that such alcoholic liquors are (1) still in
26the possession of such importing distributor or manufacturer,

 

 

09900SB3095sam001- 167 -LRB099 20651 RPS 46232 a

1or (2) prior to the termination of possession have been lost by
2theft or through unintentional destruction, or (3) that such
3alcoholic liquors are otherwise exempt from taxation under this
4Act.
5    The Department may require any foreign importer to file
6monthly information returns, by the 15th day of the month
7following the month which any such return covers, if the
8Department determines this to be necessary to the proper
9performance of the Department's functions and duties under this
10Act. Such return shall contain such information as the
11Department may reasonably require.
12    Every manufacturer and importing distributor shall also
13file, with the Department, a bond in an amount not less than
14$1,000 and not to exceed $100,000 on a form to be approved by,
15and with a surety or sureties satisfactory to, the Department.
16Such bond shall be conditioned upon the manufacturer or
17importing distributor paying to the Department all monies
18becoming due from such manufacturer or importing distributor
19under this Article. The Department shall fix the penalty of
20such bond in each case, taking into consideration the amount of
21alcoholic liquor expected to be sold and used by such
22manufacturer or importing distributor, and the penalty fixed by
23the Department shall be sufficient, in the Department's
24opinion, to protect the State of Illinois against failure to
25pay any amount due under this Article, but the amount of the
26penalty fixed by the Department shall not exceed twice the

 

 

09900SB3095sam001- 168 -LRB099 20651 RPS 46232 a

1amount of tax liability of a monthly return, nor shall the
2amount of such penalty be less than $1,000. The Department
3shall notify the Commission of the Department's approval or
4disapproval of any such manufacturer's or importing
5distributor's bond, or of the termination or cancellation of
6any such bond, or of the Department's direction to a
7manufacturer or importing distributor that he must file
8additional bond in order to comply with this Section. The
9Commission shall not issue a license to any applicant for a
10manufacturer's or importing distributor's license unless the
11Commission has received a notification from the Department
12showing that such applicant has filed a satisfactory bond with
13the Department hereunder and that such bond has been approved
14by the Department. Failure by any licensed manufacturer or
15importing distributor to keep a satisfactory bond in effect
16with the Department or to furnish additional bond to the
17Department, when required hereunder by the Department to do so,
18shall be grounds for the revocation or suspension of such
19manufacturer's or importing distributor's license by the
20Commission. If a manufacturer or importing distributor fails to
21pay any amount due under this Article, his bond with the
22Department shall be deemed forfeited, and the Department may
23institute a suit in its own name on such bond.
24    After notice and opportunity for a hearing the State
25Commission may revoke or suspend the license of any
26manufacturer or importing distributor who fails to comply with

 

 

09900SB3095sam001- 169 -LRB099 20651 RPS 46232 a

1the provisions of this Section. Notice of such hearing and the
2time and place thereof shall be in writing and shall contain a
3statement of the charges against the licensee. Such notice may
4be given by United States registered or certified mail with
5return receipt requested, addressed to the person concerned at
6his last known address and shall be given not less than 7 days
7prior to the date fixed for the hearing. An order revoking or
8suspending a license under the provisions of this Section may
9be reviewed in the manner provided in Section 7-10 of this Act.
10No new license shall be granted to a person whose license has
11been revoked for a violation of this Section or, in case of
12suspension, shall such suspension be terminated until he has
13paid to the Department all taxes and penalties which he owes
14the State under the provisions of this Act.
15    Every manufacturer or importing distributor who has, as
16verified by the Department, continuously complied with the
17conditions of the bond under this Act for a period of 2 years
18shall be considered to be a prior continuous compliance
19taxpayer. In determining the consecutive period of time for
20qualification as a prior continuous compliance taxpayer, any
21consecutive period of time of qualifying compliance
22immediately prior to the effective date of this amendatory Act
23of 1987 shall be credited to any manufacturer or importing
24distributor.
25    A manufacturer or importing distributor that is a prior
26continuous compliance taxpayer under this Section and becomes a

 

 

09900SB3095sam001- 170 -LRB099 20651 RPS 46232 a

1successor as the result of an acquisition, merger, or
2consolidation of a manufacturer or importing distributor shall
3be deemed to be a prior continuous compliance taxpayer with
4respect to the acquired, merged, or consolidated entity.
5    Every prior continuous compliance taxpayer shall be exempt
6from the bond requirements of this Act until the Department has
7determined the taxpayer to be delinquent in the filing of any
8return or deficient in the payment of any tax under this Act.
9Any taxpayer who fails to pay an admitted or established
10liability under this Act may also be required to post bond or
11other acceptable security with the Department guaranteeing the
12payment of such admitted or established liability.
13    The Department shall discharge any surety and shall release
14and return any bond or security deposit assigned, pledged or
15otherwise provided to it by a taxpayer under this Section
16within 30 days after: (1) such taxpayer becomes a prior
17continuous compliance taxpayer; or (2) such taxpayer has ceased
18to collect receipts on which he is required to remit tax to the
19Department, has filed a final tax return, and has paid to the
20Department an amount sufficient to discharge his remaining tax
21liability as determined by the Department under this Act.
22(Source: P.A. 95-769, eff. 7-29-08.)
 
23    (235 ILCS 5/8-5)  (from Ch. 43, par. 163a)
24    Sec. 8-5. As soon as practicable after any return is filed,
25the Department shall examine such return and shall correct such

 

 

09900SB3095sam001- 171 -LRB099 20651 RPS 46232 a

1return according to its best judgment and information, which
2return so corrected by the Department shall be prima facie
3correct and shall be prima facie evidence of the correctness of
4the amount of tax due, as shown therein. Instead of requiring
5the licensee to file an amended return, the Department may
6simply notify the licensee of the correction or corrections it
7has made. Proof of such correction by the Department, or of the
8determination of the amount of tax due as provided in Sections
98-4 and 8-10, may be made at any hearing before the Department
10or in any legal proceeding by a reproduced copy of the
11Department's record relating thereto in the name of the
12Department under the certificate of the Director of Revenue.
13Such reproduced copy shall, without further proof, be admitted
14into evidence before the Department or in any legal proceeding
15and shall be prima facie proof of the correctness of the amount
16of tax due, as shown therein. If the return so corrected by the
17Department discloses the sale or use, by a licensed
18manufacturer or importing distributor, of alcoholic liquors as
19to which the tax provided for in this Article should have been
20paid, but has not been paid, in excess of the alcoholic liquors
21reported as being taxable by the licensee, and as to which the
22proper tax was paid the Department shall notify the licensee
23that it shall issue the taxpayer a notice of tax liability for
24the amount of tax claimed by the Department to be due, together
25with penalties at the rates prescribed by Sections 3-3, 3-5 and
263-6 of the Uniform Penalty and Interest Act, which amount of

 

 

09900SB3095sam001- 172 -LRB099 20651 RPS 46232 a

1tax shall be equivalent to the amount of tax which, at the
2prescribed rate per gallon, should have been paid with respect
3to the alcoholic liquors disposed of in excess of those
4reported as being taxable. In a case where no return has been
5filed, the Department shall determine the amount of tax due
6according to its best judgment and information and shall issue
7the taxpayer a notice of tax liability for the amount of tax
8claimed by the Department to be due as herein provided together
9with penalties at the rates prescribed by Sections 3-3, 3-5 and
103-6 of the Uniform Penalty and Interest Act. If, in
11administering the provisions of this Act, a comparison of a
12licensee's return or returns with the books, records and
13physical inventories of such licensee discloses a deficiency
14which cannot be allocated by the Department to a particular
15month or months, the Department shall issue the taxpayer a
16notice of tax liability for the amount of tax claimed by the
17Department to be due for a given period, but without any
18obligation upon the Department to allocate such deficiency to
19any particular month or months, together with penalties at the
20rates prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform
21Penalty and Interest Act, which amount of tax shall be
22equivalent to the amount of tax which, at the prescribed rate
23per gallon, should have been paid with respect to the alcoholic
24liquors disposed of in excess of those reported being taxable,
25with the tax thereon having been paid under which circumstances
26the aforesaid notice of tax liability shall be prima facie

 

 

09900SB3095sam001- 173 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 174 -LRB099 20651 RPS 46232 a

1issued and shall be deemed to be a final assessment.
2    In case of failure to pay the tax, or any portion thereof,
3or any penalty provided for herein, when due, the Department
4may recover the amount of such tax, or portion thereof, or
5penalty in a civil action; or if the licensee dies or becomes a
6person under legal disability, by filing a claim therefor
7against his or her estate; provided that no such claim shall be
8filed against the estate of any deceased or of the licensee who
9is under legal disability for any tax or penalty or portion
10thereof except in the manner prescribed and within the time
11limited by the Probate Act of 1975, as amended.
12    The collection of any such tax and penalty, or either, by
13any means provided for herein, shall not be a bar to any
14prosecution under this Act.
15    In addition to any other penalty provided for in this
16Article, any licensee who fails to pay any tax within the time
17required by this Article shall be subject to assessment of
18penalties and interest at rates set forth in the Uniform
19Penalty and Interest Act.
20(Source: P.A. 87-205; 87-879.)
 
21    (235 ILCS 5/8-10)  (from Ch. 43, par. 164)
22    Sec. 8-10. It is the duty of each manufacturer, importing
23distributor and foreign importer to keep, at his licensed
24address or place of business, complete and accurate records of
25all sales or other dispositions of alcoholic liquor, and

 

 

09900SB3095sam001- 175 -LRB099 20651 RPS 46232 a

1complete and accurate records of all alcoholic liquor produced,
2manufactured, compounded or imported, whether for himself or
3for another, together with a physical inventory made as of the
4close of each period for which a return is required, covering
5all alcoholic liquors on hand. However, the Department of
6Revenue may grant a an importing distributor a waiver to permit
7such records to be kept at a central business location within
8the State upon written request by the importing distributor.
9The central business location shall be located at a licensed
10importing distributor's premises. The Department of Revenue
11may in its discretion prescribe reasonable and uniform methods
12for keeping such records by manufacturers and importing
13distributors and foreign importers.
14    In case of failure by manufacturers and importing
15distributors to keep such records or to make them available to
16the Department on demand, the Department shall determine the
17amount of tax due according to its best judgment and
18information, which amount so determined by the Department shall
19be prima facie correct, and the Department's notice of tax
20liability shall be given, and protest thereto and demand for a
21hearing may be made and final assessments arrived at, in
22accordance with the provisions of Section 8-5 hereof.
23    It is the duty of each manufacturer, importing distributor,
24and foreign importer, who imports alcoholic liquor into the
25State, and each non-resident dealer who ships alcoholic liquor
26into the State, to mail to the Department one duplicate

 

 

09900SB3095sam001- 176 -LRB099 20651 RPS 46232 a

1invoice, together with a bill of lading, covering such shipment
2and stating the quantity and, except in the case of alcoholic
3liquor imported in bulk to be bottled by an authorized licensee
4in this State using his own label and brand, the invoice shall
5also state the brand, labels and size of containers.
6    It is the duty of each manufacturer, importing distributor,
7and foreign importer, who imports spirits into the State, and
8each non-resident dealer who ships spirits into the State, to
9mail to the State Commission monthly a report containing a
10compilation of the information required to be furnished to the
11Department by the preceding paragraph, except that information
12concerning spirits imported in bulk need not be included. The
13report shall include all information mailed to the Department
14during the preceding month.
15    All books and records, which manufacturers, importing
16distributors, non-resident dealers, and foreign importers are
17required by this Section to keep, shall be preserved for a
18period of 3 years, unless the Department, in writing,
19authorizes their destruction or disposal at an earlier date.
20(Source: P.A. 98-394, eff. 8-16-13.)
 
21    (235 ILCS 5/9-13)  (from Ch. 43, par. 176)
22    Sec. 9-13. It is unlawful to sell alcoholic liquor at
23retail or to grant or issue, or cause to be granted or issued,
24any license to sell alcoholic liquor at retail within the
25limits of any political subdivision or precinct or at any

 

 

09900SB3095sam001- 177 -LRB099 20651 RPS 46232 a

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

 

 

09900SB3095sam001- 178 -LRB099 20651 RPS 46232 a

1to do so, and whereas such threat is especially serious along
2the borders of this State, and whereas such threat requires
3immediate correction by this Act, by active investigation and
4prosecution by law enforcement officials and prosecutors, and
5by prompt and strict enforcement through the courts of this
6State to punish violators and to deter such conduct in the
7future:
8    (a) Any person who manufactures, imports for distribution
9or use, or distributes or sells alcoholic liquor at any place
10within the State without having first obtained a valid license
11to do so under the provisions of this Act shall be guilty of a
12business offense and fined not more than $1,000 for the first
13such offense and shall be guilty of a Class 4 felony for each
14subsequent offense.
15    (b) (1) Any retailer, licensed in this State, who knowingly
16causes to furnish, give, sell, or otherwise being within the
17State, any alcoholic liquor destined to be used, distributed,
18consumed or sold in another state, unless such alcoholic liquor
19was received in this State by a duly licensed distributor, or
20importing distributors shall have his license suspended for 7
21days for the first offense and for the second offense, shall
22have his license revoked by the Commission.
23    (2) In the event the Commission receives a certified copy
24of a final order from a foreign jurisdiction that an Illinois
25retail licensee has been found to have violated that foreign
26jurisdiction's laws, rules, or regulations concerning the

 

 

09900SB3095sam001- 179 -LRB099 20651 RPS 46232 a

1importation of alcoholic liquor into that foreign
2jurisdiction, the violation may be grounds for the Commission
3to revoke, suspend, or refuse to issue or renew a license, to
4impose a fine, or to take any additional action provided by
5this Act with respect to the Illinois retail license or
6licensee. Any such action on the part of the Commission shall
7be in accordance with this Act and implementing rules.
8    For the purposes of paragraph (2): (i) "foreign
9jurisdiction" means a state, territory, or possession of the
10United States, the District of Columbia, or the Commonwealth of
11Puerto Rico, and (ii) "final order" means an order or judgment
12of a court or administrative body that determines the rights of
13the parties respecting the subject matter of the proceeding,
14that remains in full force and effect, and from which no appeal
15can be taken.
16    (c) Any person who shall make any false statement or
17otherwise violates any of the provisions of this Act in
18obtaining any license hereunder, or who having obtained a
19license hereunder shall violate any of the provisions of this
20Act with respect to the manufacture, possession, distribution
21or sale of alcoholic liquor, or with respect to the maintenance
22of the licensed premises, or shall violate any other provision
23of this Act, shall for a first offense be guilty of a petty
24offense and fined not more than $500, and for a second or
25subsequent offense shall be guilty of a Class B misdemeanor.
26    (c-5) Any owner of an establishment that serves alcohol on

 

 

09900SB3095sam001- 180 -LRB099 20651 RPS 46232 a

1its premises, if more than 50% of the establishment's gross
2receipts within the prior 3 months is from the sale of alcohol,
3who knowingly fails to prohibit concealed firearms on its
4premises or who knowingly makes a false statement or record to
5avoid the prohibition of concealed firearms on its premises
6under the Firearm Concealed Carry Act shall be guilty of a
7business offense with a fine up to $5,000.
8    (d) Each day any person engages in business as a
9manufacturer, foreign importer, importing distributor,
10distributor, or retailer in violation of the provisions of this
11Act shall constitute a separate offense.
12    (e) Any person, under the age of 21 years who, for the
13purpose of buying, accepting or receiving alcoholic liquor from
14a licensee, represents that he is 21 years of age or over shall
15be guilty of a Class A misdemeanor.
16    (f) In addition to the penalties herein provided, any
17person licensed as a wine-maker in either class who
18manufactures more wine than authorized by his license shall be
19guilty of a business offense and shall be fined $1 for each
20gallon so manufactured.
21    (g) A person shall be exempt from prosecution for a
22violation of this Act if he is a peace officer in the
23enforcement of the criminal laws and such activity is approved
24in writing by one of the following:
25        (1) In all counties, the respective State's Attorney;
26        (2) The Director of State Police under Section 2605-10,

 

 

09900SB3095sam001- 181 -LRB099 20651 RPS 46232 a

1    2605-15, 2605-75, 2605-100, 2605-105, 2605-110, 2605-115,
2    2605-120, 2605-130, 2605-140, 2605-190, 2605-200,
3    2605-205, 2605-210, 2605-215, 2605-250, 2605-275,
4    2605-300, 2605-305, 2605-315, 2605-325, 2605-335,
5    2605-340, 2605-350, 2605-355, 2605-360, 2605-365,
6    2605-375, 2605-390, 2605-400, 2605-405, 2605-420,
7    2605-430, 2605-435, 2605-500, 2605-525, or 2605-550 of the
8    Department of State Police Law (20 ILCS 2605/2605-10,
9    2605/2605-15, 2605/2605-75, 2605/2605-100, 2605/2605-105,
10    2605/2605-110, 2605/2605-115, 2605/2605-120,
11    2605/2605-130, 2605/2605-140, 2605/2605-190,
12    2605/2605-200, 2605/2605-205, 2605/2605-210,
13    2605/2605-215, 2605/2605-250, 2605/2605-275,
14    2605/2605-300, 2605/2605-305, 2605/2605-315,
15    2605/2605-325, 2605/2605-335, 2605/2605-340,
16    2605/2605-350, 2605/2605-355, 2605/2605-360,
17    2605/2605-365, 2605/2605-375, 2605/2605-390,
18    2605/2605-400, 2605/2605-405, 2605/2605-420,
19    2605/2605-430, 2605/2605-435, 2605/2605-500,
20    2605/2605-525, or 2605/2605-550); or
21        (3) In cities over 1,000,000, the Superintendent of
22    Police.
23(Source: P.A. 98-63, eff. 7-9-13.)
 
24    (235 ILCS 5/10-7.1)  (from Ch. 43, par. 189.1)
25    Sec. 10-7.1. The Commission, upon receipt of a complaint or

 

 

09900SB3095sam001- 182 -LRB099 20651 RPS 46232 a

1upon having knowledge that any person is engaged in the
2business as a manufacturer, importing distributor,
3distributor, or retailer without a license or valid license,
4shall notify the Department of Revenue and the local liquor
5authority, and file a complaint with the State's Attorney's
6Office of the County where the incident occurred or initiate an
7investigation with the appropriate law enforcement officials.
8(Source: P.A. 90-739, eff. 8-13-98.)
 
9    (235 ILCS 5/1-3.16 rep.)
10    Section 35. The Liquor Control Act of 1934 is amended by
11repealing Section 1-3.16.".