Illinois General Assembly - Full Text of HB2941
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Full Text of HB2941  102nd General Assembly

HB2941 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2941

 

Introduced 2/19/2021, by Rep. Charles Meier

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/5-1  from Ch. 43, par. 115
235 ILCS 5/6-9.2 new

    Amends the Liquor Control Act of 1934. Provides that if a licensed distributor of wine or spirits fails to meet specified delivery requirements for the holder of that license, any retailer affected by the failure shall have the right to submit an Emergency Alcohol Resale Application to the State Commission. Provides that the application fee is $100. Requires the retailer to submit a copy of the Emergency Alcohol Resale Application to its distributor. Provides that a retail licensee may sell alcoholic liquors to another retail licensee for resale if the retail licensee presents a completed Emergency Alcohol Resale Application that has been submitted under specified conditions. Contains provisions concerning application requirements and rulemaking.


LRB102 05149 RPS 15170 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2941LRB102 05149 RPS 15170 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Section 5-1 and by adding Section 6-9.2 as follows:
 
6    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
7    Sec. 5-1. Licenses issued by the Illinois Liquor Control
8Commission shall be of the following classes:
9    (a) Manufacturer's license - Class 1. Distiller, Class 2.
10Rectifier, Class 3. Brewer, Class 4. First Class Wine
11Manufacturer, Class 5. Second Class Wine Manufacturer, Class
126. First Class Winemaker, Class 7. Second Class Winemaker,
13Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
14Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
15Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
16    (b) Distributor's license,
17    (c) Importing Distributor's license,
18    (d) Retailer's license,
19    (e) Special Event Retailer's license (not-for-profit),
20    (f) Railroad license,
21    (g) Boat license,
22    (h) Non-Beverage User's license,
23    (i) Wine-maker's premises license,

 

 

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

 

 

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

 

 

HB2941- 4 -LRB102 05149 RPS 15170 b

1per year, and the storage and sale of such wine to distributors
2in this State and to persons without the State, as may be
3permitted by law. A person who, prior to June 1, 2008 (the
4effective date of Public Act 95-634), is a holder of a
5second-class wine-maker's license and annually produces more
6than 25,000 gallons of its own wine and who distributes its
7wine to licensed retailers shall cease this practice on or
8before July 1, 2008 in compliance with Public Act 95-634.
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, which may only be held
14by a class 1 craft distiller licensee or class 2 craft
15distiller licensee but not held by both a class 1 craft
16distiller licensee and a class 2 craft distiller licensee,
17shall grant all rights conveyed by either: (i) a class 1 craft
18distiller license if the craft distiller holds a class 1 craft
19distiller license; or (ii) a class 2 craft distiller licensee
20if the craft distiller holds a class 2 craft distiller
21license.
22    Class 10. A class 1 craft distiller license, which may
23only be issued to a licensed craft distiller or licensed
24non-resident dealer, shall allow the manufacture of up to
2550,000 gallons of spirits per year provided that the class 1
26craft distiller licensee does not manufacture more than a

 

 

HB2941- 5 -LRB102 05149 RPS 15170 b

1combined 50,000 gallons of spirits per year and is not a member
2of or affiliated with, directly or indirectly, a manufacturer
3that produces more than 50,000 gallons of spirits per year or
4any other alcoholic liquor. A class 1 craft distiller licensee
5may make sales and deliveries to importing distributors and
6distributors and to retail licensees in accordance with the
7conditions set forth in paragraph (19) of subsection (a) of
8Section 3-12 of this Act. However, the aggregate amount of
9spirits sold to non-licensees and sold or delivered to retail
10licensees may not exceed 5,000 gallons per year.
11    A class 1 craft distiller licensee may sell up to 5,000
12gallons of such spirits to non-licensees to the extent
13permitted by any exemption approved by the State Commission
14pursuant to Section 6-4 of this Act. A class 1 craft distiller
15license holder may store such spirits at a non-contiguous
16licensed location, but at no time shall a class 1 craft
17distiller license holder directly or indirectly produce in the
18aggregate more than 50,000 gallons of spirits per year.
19    A class 1 craft distiller licensee may hold more than one
20class 1 craft distiller's license. However, a class 1 craft
21distiller that holds more than one class 1 craft distiller
22license shall not manufacture, in the aggregate, more than
2350,000 gallons of spirits by distillation per year and shall
24not sell, in the aggregate, more than 5,000 gallons of such
25spirits to non-licensees in accordance with an exemption
26approved by the State Commission pursuant to Section 6-4 of

 

 

HB2941- 6 -LRB102 05149 RPS 15170 b

1this Act.
2    Class 11. A class 2 craft distiller license, which may
3only be issued to a licensed craft distiller or licensed
4non-resident dealer, shall allow the manufacture of up to
5100,000 gallons of spirits per year provided that the class 2
6craft distiller licensee does not manufacture more than a
7combined 100,000 gallons of spirits per year and is not a
8member of or affiliated with, directly or indirectly, a
9manufacturer that produces more than 100,000 gallons of
10spirits per year or any other alcoholic liquor. A class 2 craft
11distiller licensee may make sales and deliveries to importing
12distributors and distributors, but shall not make sales or
13deliveries to any other licensee. If the State Commission
14provides prior approval, a class 2 craft distiller licensee
15may annually transfer up to 100,000 gallons of spirits
16manufactured by that class 2 craft distiller licensee to the
17premises of a licensed class 2 craft distiller wholly owned
18and operated by the same licensee. A class 2 craft distiller
19may transfer spirits to a distilling pub wholly owned and
20operated by the class 2 craft distiller subject to the
21following limitations and restrictions: (i) the transfer shall
22not annually exceed more than 5,000 gallons; (ii) the annual
23amount transferred shall reduce the distilling pub's annual
24permitted production limit; (iii) all spirits transferred
25shall be subject to Article VIII of this Act; (iv) a written
26record shall be maintained by the distiller and distilling pub

 

 

HB2941- 7 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 8 -LRB102 05149 RPS 15170 b

1distributors and distributors and to retail licensees in
2accordance with the conditions set forth in paragraph (18) of
3subsection (a) of Section 3-12 of this Act. If the State
4Commission provides prior approval, a class 1 brewer may
5annually transfer up to 930,000 gallons of beer manufactured
6by that class 1 brewer to the premises of a licensed class 1
7brewer wholly owned and operated by the same licensee.
8    Class 13. A class 2 brewer license, which may only be
9issued to a licensed brewer or licensed non-resident dealer,
10shall allow the manufacture of up to 3,720,000 gallons of beer
11per year provided that the class 2 brewer licensee does not
12manufacture more than a combined 3,720,000 gallons of beer per
13year and is not a member of or affiliated with, directly or
14indirectly, a manufacturer that produces more than 3,720,000
15gallons of beer per year or any other alcoholic liquor. A class
162 brewer licensee may make sales and deliveries to importing
17distributors and distributors, but shall not make sales or
18deliveries to any other licensee. If the State Commission
19provides prior approval, a class 2 brewer licensee may
20annually transfer up to 3,720,000 gallons of beer manufactured
21by that class 2 brewer licensee to the premises of a licensed
22class 2 brewer wholly owned and operated by the same licensee.
23    A class 2 brewer may transfer beer to a brew pub wholly
24owned and operated by the class 2 brewer subject to the
25following limitations and restrictions: (i) the transfer shall
26not annually exceed more than 31,000 gallons; (ii) the annual

 

 

HB2941- 9 -LRB102 05149 RPS 15170 b

1amount transferred shall reduce the brew pub's annual
2permitted production limit; (iii) all beer transferred shall
3be subject to Article VIII of this Act; (iv) a written record
4shall be maintained by the brewer and brew pub specifying the
5amount, date of delivery, and receipt of the product by the
6brew pub; and (v) the brew pub shall be located no farther than
780 miles from the class 2 brewer's licensed location.
8    A class 2 brewer shall, prior to transferring beer to a
9brew pub wholly owned by the class 2 brewer, furnish a written
10notice to the State Commission of intent to transfer beer
11setting forth the name and address of the brew pub and shall
12annually submit to the State Commission a verified report
13identifying the total gallons of beer transferred to the brew
14pub wholly owned by the class 2 brewer.
15    (a-1) A manufacturer which is licensed in this State to
16make sales or deliveries of alcoholic liquor to licensed
17distributors or importing distributors and which enlists
18agents, representatives, or individuals acting on its behalf
19who contact licensed retailers on a regular and continual
20basis in this State must register those agents,
21representatives, or persons acting on its behalf with the
22State Commission.
23    Registration of agents, representatives, or persons acting
24on behalf of a manufacturer is fulfilled by submitting a form
25to the Commission. The form shall be developed by the
26Commission and shall include the name and address of the

 

 

HB2941- 10 -LRB102 05149 RPS 15170 b

1applicant, the name and address of the manufacturer he or she
2represents, the territory or areas assigned to sell to or
3discuss pricing terms of alcoholic liquor, and any other
4questions deemed appropriate and necessary. All statements in
5the forms required to be made by law or by rule shall be deemed
6material, and any person who knowingly misstates any material
7fact under oath in an application is guilty of a Class B
8misdemeanor. Fraud, misrepresentation, false statements,
9misleading statements, evasions, or suppression of material
10facts in the securing of a registration are grounds for
11suspension or revocation of the registration. The State
12Commission shall post a list of registered agents on the
13Commission's website.
14    (b) A distributor's license shall allow (i) the wholesale
15purchase and storage of alcoholic liquors and sale of
16alcoholic liquors to licensees in this State and to persons
17without the State, as may be permitted by law; (ii) the sale of
18beer, cider, or both beer and cider to brewers, class 1
19brewers, and class 2 brewers that, pursuant to subsection (e)
20of Section 6-4 of this Act, sell beer, cider, or both beer and
21cider to non-licensees at their breweries; and (iii) the sale
22of vermouth to class 1 craft distillers and class 2 craft
23distillers that, pursuant to subsection (e) of Section 6-4 of
24this Act, sell spirits, vermouth, or both spirits and vermouth
25to non-licensees at their distilleries. No person licensed as
26a distributor shall be granted a non-resident dealer's

 

 

HB2941- 11 -LRB102 05149 RPS 15170 b

1license.
2    (c) An importing distributor's license may be issued to
3and held by those only who are duly licensed distributors,
4upon the filing of an application by a duly licensed
5distributor, with the Commission and the Commission shall,
6without the payment of any fee, immediately issue such
7importing distributor's license to the applicant, which shall
8allow the importation of alcoholic liquor by the licensee into
9this State from any point in the United States outside this
10State, and the purchase of alcoholic liquor in barrels, casks
11or other bulk containers and the bottling of such alcoholic
12liquors before resale thereof, but all bottles or containers
13so filled shall be sealed, labeled, stamped and otherwise made
14to comply with all provisions, rules and regulations governing
15manufacturers in the preparation and bottling of alcoholic
16liquors. The importing distributor's license shall permit such
17licensee to purchase alcoholic liquor from Illinois licensed
18non-resident dealers and foreign importers only. No person
19licensed as an importing distributor shall be granted a
20non-resident dealer's license.
21    (d) A retailer's license shall allow the licensee to sell
22and offer for sale at retail, only in the premises specified in
23the license, alcoholic liquor for use or consumption, but not
24for resale in any form. Nothing in Public Act 95-634 shall
25deny, limit, remove, or restrict the ability of a holder of a
26retailer's license to transfer, deliver, or ship alcoholic

 

 

HB2941- 12 -LRB102 05149 RPS 15170 b

1liquor to the purchaser for use or consumption subject to any
2applicable local law or ordinance. Any retail license issued
3to a manufacturer shall only permit the manufacturer to sell
4beer at retail on the premises actually occupied by the
5manufacturer. For the purpose of further describing the type
6of business conducted at a retail licensed premises, a
7retailer's licensee may be designated by the State Commission
8as (i) an on premise consumption retailer, (ii) an off premise
9sale retailer, or (iii) a combined on premise consumption and
10off premise sale retailer.
11    Notwithstanding any other provision of this subsection
12(d), a retail licensee may sell alcoholic liquors to a special
13event retailer licensee for resale to the extent permitted
14under subsection (e).
15    Notwithstanding any other provision of this Act, a retail
16licensee may sell alcoholic liquors to another retail licensee
17for resale if the retail licensee presents a completed
18Emergency Alcohol Resale Application that has been submitted
19under the conditions specified in Section 6-9.2.
20    (e) A special event retailer's license (not-for-profit)
21shall permit the licensee to purchase alcoholic liquors from
22an Illinois licensed distributor (unless the licensee
23purchases less than $500 of alcoholic liquors for the special
24event, in which case the licensee may purchase the alcoholic
25liquors from a licensed retailer) and shall allow the licensee
26to sell and offer for sale, at retail, alcoholic liquors for

 

 

HB2941- 13 -LRB102 05149 RPS 15170 b

1use or consumption, but not for resale in any form and only at
2the location and on the specific dates designated for the
3special event in the license. An applicant for a special event
4retailer license must (i) furnish with the application: (A) a
5resale number issued under Section 2c of the Retailers'
6Occupation Tax Act or evidence that the applicant is
7registered under Section 2a of the Retailers' Occupation Tax
8Act, (B) a current, valid exemption identification number
9issued under Section 1g of the Retailers' Occupation Tax Act,
10and a certification to the Commission that the purchase of
11alcoholic liquors will be a tax-exempt purchase, or (C) a
12statement that the applicant is not registered under Section
132a of the Retailers' Occupation Tax Act, does not hold a resale
14number under Section 2c of the Retailers' Occupation Tax Act,
15and does not hold an exemption number under Section 1g of the
16Retailers' Occupation Tax Act, in which event the Commission
17shall set forth on the special event retailer's license a
18statement to that effect; (ii) submit with the application
19proof satisfactory to the State Commission that the applicant
20will provide dram shop liability insurance in the maximum
21limits; and (iii) show proof satisfactory to the State
22Commission that the applicant has obtained local authority
23approval.
24    Nothing in this Act prohibits an Illinois licensed
25distributor from offering credit or a refund for unused,
26salable alcoholic liquors to a holder of a special event

 

 

HB2941- 14 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 15 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 16 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 17 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 18 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 19 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 20 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 21 -LRB102 05149 RPS 15170 b

1than 155,000 gallons per year so long as such sales are only
2made in-person, (v) sell and offer for sale at retail for use
3and consumption on the premises specified in the license any
4form of alcoholic liquor purchased from a licensed distributor
5or importing distributor, (vi) with the prior approval of the
6Commission, annually transfer no more than 155,000 gallons of
7beer manufactured on the premises to a licensed brew pub
8wholly owned and operated by the same licensee, and (vii)
9notwithstanding item (i) of this subsection, brew pubs wholly
10owned and operated by the same licensee may combine each
11location's production limit of 155,000 gallons of beer per
12year and allocate the aggregate total between the wholly
13owned, operated, and licensed locations.
14    A brew pub licensee shall not under any circumstance sell
15or offer for sale beer manufactured by the brew pub licensee to
16retail licensees.
17    A person who holds a class 2 brewer license may
18simultaneously hold a brew pub license if the class 2 brewer
19(i) does not, under any circumstance, sell or offer for sale
20beer manufactured by the class 2 brewer to retail licensees;
21(ii) does not hold more than 3 brew pub licenses in this State;
22(iii) does not manufacture more than a combined 3,720,000
23gallons of beer per year, including the beer manufactured at
24the brew pub; and (iv) is not a member of or affiliated with,
25directly or indirectly, a manufacturer that produces more than
263,720,000 gallons of beer per year or any other alcoholic

 

 

HB2941- 22 -LRB102 05149 RPS 15170 b

1liquor.
2    Notwithstanding any other provision of this Act, a
3licensed brewer, class 2 brewer, or non-resident dealer who
4before July 1, 2015 manufactured less than 3,720,000 gallons
5of beer per year and held a brew pub license on or before July
61, 2015 may (i) continue to qualify for and hold that brew pub
7license for the licensed premises and (ii) manufacture more
8than 3,720,000 gallons of beer per year and continue to
9qualify for and hold that brew pub license if that brewer,
10class 2 brewer, or non-resident dealer does not simultaneously
11hold a class 1 brewer license and is not a member of or
12affiliated with, directly or indirectly, a manufacturer that
13produces more than 3,720,000 gallons of beer per year or that
14produces any other alcoholic liquor.
15    (o) A caterer retailer license shall allow the holder to
16serve alcoholic liquors as an incidental part of a food
17service that serves prepared meals which excludes the serving
18of snacks as the primary meal, either on or off-site whether
19licensed or unlicensed. A caterer retailer license shall allow
20the holder, a distributor, or an importing distributor to
21transfer any inventory to and from the holder's retail
22premises and shall allow the holder to purchase alcoholic
23liquor from a distributor or importing distributor to be
24delivered directly to an off-site event.
25    Nothing in this Act prohibits a distributor or importing
26distributor from offering credit or a refund for unused,

 

 

HB2941- 23 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 24 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 25 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 26 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 27 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 28 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 29 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 30 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 31 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 32 -LRB102 05149 RPS 15170 b

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

 

 

HB2941- 33 -LRB102 05149 RPS 15170 b

1or indirectly, a manufacturer that produces more than 100,000
2gallons of spirits per year or any other alcoholic liquor.
3    (v) A craft distiller warehouse permit may be issued to
4the holder of a class 1 craft distiller or class 2 craft
5distiller license. The craft distiller warehouse permit shall
6allow the holder to store or warehouse up to 500,000 gallons of
7spirits manufactured by the holder of the permit at the
8premises specified on the permit. Sales to non-licensees are
9prohibited at the premises specified in the craft distiller
10warehouse permit.
11(Source: P.A. 100-17, eff. 6-30-17; 100-201, eff. 8-18-17;
12100-816, eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff.
138-23-18; 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; 101-81,
14eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. 8-23-19;
15101-615, eff. 12-20-19.)
 
16    (235 ILCS 5/6-9.2 new)
17    Sec. 6-9.2. Emergency Alcohol Resale Application.
18    (a) If a licensed distributor of wine or spirits fails to
19meet the requirements under Section 6-9.1 for the holder of
20that license, any retailer affected by that failure shall have
21the right to submit an Emergency Alcohol Resale Application to
22the State Commission.
23    (b) The Emergency Alcohol Resale Application shall set
24forth the trademark, brand, or name that was requested by the
25retailer and not delivered within the requested window of time

 

 

HB2941- 34 -LRB102 05149 RPS 15170 b

1for delivery. No such application shall be valid unless an
2order has been submitted by a licensed retailer to a licensed
3distributor and the licensed distributor is unable to make
4delivery within the requested window of time for delivery.
5    (c) The licensed retailer shall submit the Emergency
6Alcohol Resale Application and a fee of $100 to the State
7Commission. The licensed retailer must simultaneously submit a
8copy of the Emergency Alcohol Resale Application to its
9distributor. Submission of a valid application and fee shall
10constitute the legal right for the licensed retailer to go to
11another licensed retailer and buy alcohol, within the
12specified trademark, brand, or name and the requested window
13of time enumerated in the Emergency Alcohol Resale
14Application, for resale, in the amount requested and not
15delivered.
16    (d) The State Commission shall adopt rules for the
17implementation of this Section.