Illinois General Assembly - Full Text of SB0754
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Full Text of SB0754  97th General Assembly

SB0754sam002 97TH GENERAL ASSEMBLY

Sen. Donne E. Trotter

Filed: 4/11/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 754

2    AMENDMENT NO. ______. Amend Senate Bill 754 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 3-12, 5-1, and 5-3 and by adding Section
61-3.38 as follows:
 
7    (235 ILCS 5/1-3.38 new)
8    Sec. 1-3.38. "Craft brewer" means a licensed brewer or
9licensed non-resident dealer who manufactures up to 465,000
10gallons of beer per year and who may make sales and deliveries
11to importing distributors and distributors and to retail
12licensees in accordance with the conditions set forth in
13paragraph (18) of subsection (a) of Section 3-12 of this Act.
 
14    (235 ILCS 5/3-12)
15    Sec. 3-12. Powers and duties of State Commission.

 

 

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

 

 

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

 

 

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1    the State, county and municipal governments, county and
2    city police departments and upon prosecuting officers for
3    such information and assistance as it deems necessary in
4    the performance of its duties.
5        (4) To recommend to local commissioners rules and
6    regulations, not inconsistent with the law, for the
7    distribution and sale of alcoholic liquors throughout the
8    State.
9        (5) To inspect, or cause to be inspected, any premises
10    in this State where alcoholic liquors are manufactured,
11    distributed, warehoused, or sold.
12        (5.1) Upon receipt of a complaint or upon having
13    knowledge that any person is engaged in business as a
14    manufacturer, importing distributor, distributor, or
15    retailer without a license or valid license, to notify the
16    local liquor authority, file a complaint with the State's
17    Attorney's Office of the county where the incident
18    occurred, or initiate an investigation with the
19    appropriate law enforcement officials.
20        (5.2) To issue a cease and desist notice to persons
21    shipping alcoholic liquor into this State from a point
22    outside of this State if the shipment is in violation of
23    this Act.
24        (5.3) To receive complaints from licensees, local
25    officials, law enforcement agencies, organizations, and
26    persons stating that any licensee has been or is violating

 

 

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

 

 

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

 

 

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1    issue subpoena or subpoenas to require the attendance of
2    witnesses and the production of books, which shall be
3    effective in any part of this State, and to adopt rules to
4    implement its powers under this paragraph (8).
5        Any Circuit Court may by order duly entered, require
6    the attendance of witnesses and the production of relevant
7    books subpoenaed by the State commission and the court may
8    compel obedience to its order by proceedings for contempt.
9        (9) To investigate the administration of laws in
10    relation to alcoholic liquors in this and other states and
11    any foreign countries, and to recommend from time to time
12    to the Governor and through him or her to the legislature
13    of this State, such amendments to this Act, if any, as it
14    may think desirable and as will serve to further the
15    general broad purposes contained in Section 1-2 hereof.
16        (10) To adopt such rules and regulations consistent
17    with the provisions of this Act which shall be necessary
18    for the control, sale or disposition of alcoholic liquor
19    damaged as a result of an accident, wreck, flood, fire or
20    other similar occurrence.
21        (11) To develop industry educational programs related
22    to responsible serving and selling, particularly in the
23    areas of overserving consumers and illegal underage
24    purchasing and consumption of alcoholic beverages.
25        (11.1) To license persons providing education and
26    training to alcohol beverage sellers and servers under the

 

 

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

 

 

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

 

 

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1        (14) On or before April 30, 2008 and every 2 years
2    thereafter, the Commission shall present a written report
3    to the Governor and the General Assembly that shall be
4    based on a study of the impact of this amendatory Act of
5    the 95th General Assembly on the business of soliciting,
6    selling, and shipping wine from inside and outside of this
7    State directly to residents of this State. As part of its
8    report, the Commission shall provide all of the following
9    information:
10            (A) The amount of State excise and sales tax
11        revenues generated.
12            (B) The amount of licensing fees received.
13            (C) The number of cases of wine shipped from inside
14        and outside of this State directly to residents of this
15        State.
16            (D) The number of alcohol compliance operations
17        conducted.
18            (E) The number of winery shipper's licenses
19        issued.
20            (F) The number of each of the following: reported
21        violations; cease and desist notices issued by the
22        Commission; notices of violations issued by the
23        Commission and to the Department of Revenue; and
24        notices and complaints of violations to law
25        enforcement officials, including, without limitation,
26        the Illinois Attorney General and the U.S. Department

 

 

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1        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
2        (15) As a means to reduce the underage consumption of
3    alcoholic liquors, the Commission shall conduct alcohol
4    compliance operations to investigate whether businesses
5    that are soliciting, selling, and shipping wine from inside
6    or outside of this State directly to residents of this
7    State are licensed by this State or are selling or
8    attempting to sell wine to persons under 21 years of age in
9    violation of this Act.
10        (16) The Commission shall, in addition to notifying any
11    appropriate law enforcement agency, submit notices of
12    complaints or violations of Sections 6-29 and 6-29.1 by
13    persons who do not hold a winery shipper's license under
14    this amendatory Act to the Illinois Attorney General and to
15    the U.S. Department of Treasury's Alcohol and Tobacco Tax
16    and Trade Bureau.
17        (17) (A) A person licensed to make wine under the laws
18    of another state who has a winery shipper's license under
19    this amendatory Act and annually produces less than 25,000
20    gallons of wine or a person who has a first-class or
21    second-class wine manufacturer's license, a first-class or
22    second-class wine-maker's license, or a limited wine
23    manufacturer's license under this Act and annually
24    produces less than 25,000 gallons of wine may make
25    application to the Commission for a self-distribution
26    exemption to allow the sale of not more than 5,000 gallons

 

 

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

 

 

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

 

 

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1        wines are frequently adjusted in varietals, mixes,
2        vintages, and taste to find and create market niches
3        sometimes too small for distributor or importing
4        distributor business strategies. Limited
5        self-distribution rights will afford and allow smaller
6        makers of wine access to the marketplace in order to
7        develop a customer base without impairing the
8        integrity of the 3-tier system.
9        (18)(A) A craft brewer licensee, who must also be
10    either a licensed brewer or licensed non-resident dealer
11    and annually manufacture less than 465,000 gallons of beer,
12    may make application to the Commission for a
13    self-distribution exemption to allow the sale of not more
14    than 232,500 gallons of the exemption holder's beer to
15    retail licensees per year.
16            (B) In the application, which shall be sworn under
17        penalty of perjury, the craft brewer licensee shall
18        state (1) the date it was established; (2) its volume
19        of beer manufactured and sold for each year since its
20        establishment; (3) its efforts to establish
21        distributor relationships; (4) that a
22        self-distribution exemption is necessary to facilitate
23        the marketing of its beer; and (5) that it will comply
24        with the alcoholic beverage and revenue laws of the
25        United States, this State, and any other state where it
26        is licensed.

 

 

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1            (C) Any application submitted shall be posted on
2        the Commission's website at least 45 days prior to
3        action by the Commission. The Commission shall approve
4        the application for a self-distribution exemption if
5        the craft brewer licensee: (1) is in compliance with
6        the State, revenue, and alcoholic beverage laws; (2) is
7        not a member of any affiliated group that manufacturers
8        more than 465,000 gallons of beer per annum or produces
9        any other alcoholic beverages; (3) shall not annually
10        manufacture for sale more than 465,000 gallons of beer;
11        and (4) shall not annually sell more than 232,500
12        gallons of its beer to retail licensees.
13            (D) A self-distribution exemption holder shall
14        annually certify to the Commission its manufacture of
15        beer during the previous 12 months and its anticipated
16        manufacture and sales of beer for the next 12 months.
17        The Commission may fine, suspend, or revoke a
18        self-distribution exemption after a hearing if it
19        finds that the exemption holder has made a material
20        misrepresentation in its application, violated a
21        revenue or alcoholic beverage law of Illinois,
22        exceeded the manufacture of 465,000 gallons of beer in
23        any calendar year or became part of an affiliated group
24        manufacturing more than 465,000 gallons of beer or any
25        other alcoholic beverage.
26            (E) The Commission shall issue rules and

 

 

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1        regulations governing self-distribution exemptions
2        consistent with this Act.
3            (F) Nothing in this paragraph (18) shall prohibit a
4        self-distribution exemption holder from entering into
5        or simultaneously having a distribution agreement with
6        a licensed Illinois importing distributor or a
7        distributor. If a self-distribution exemption holder
8        enters into a distribution agreement and has assigned
9        distribution rights to an importing distributor or
10        distributor, then the self-distribution exemption
11        holder's distribution rights in the assigned
12        territories shall cease in a reasonable time not to
13        exceed 60 days.
14            (G) It is the intent of this paragraph (18) to
15        promote and continue orderly markets. The General
16        Assembly finds that in order to preserve Illinois'
17        regulatory distribution system it is necessary to
18        create an exception for smaller manufacturers in order
19        to afford and allow such smaller manufacturers of beer
20        access to the marketplace in order to develop a
21        customer base without impairing the integrity of the
22        3-tier system.
23    (b) On or before April 30, 1999, the Commission shall
24present a written report to the Governor and the General
25Assembly that shall be based on a study of the impact of this
26amendatory Act of 1998 on the business of soliciting, selling,

 

 

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1and shipping alcoholic liquor from outside of this State
2directly to residents of this State.
3    As part of its report, the Commission shall provide the
4following information:
5        (i) the amount of State excise and sales tax revenues
6    generated as a result of this amendatory Act of 1998;
7        (ii) the amount of licensing fees received as a result
8    of this amendatory Act of 1998;
9        (iii) the number of reported violations, the number of
10    cease and desist notices issued by the Commission, the
11    number of notices of violations issued to the Department of
12    Revenue, and the number of notices and complaints of
13    violations to law enforcement officials.
14(Source: P.A. 95-634, eff. 6-1-08; 96-179, eff. 8-10-09;
1596-446, eff. 1-1-10; 96-1000, eff. 7-2-10.)
 
16    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
17    Sec. 5-1. Licenses issued by the Illinois Liquor Control
18Commission shall be of the following classes:
19    (a) Manufacturer's license - Class 1. Distiller, Class 2.
20Rectifier, Class 3. Brewer, Class 4. First Class Wine
21Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
22First Class Winemaker, Class 7. Second Class Winemaker, Class
238. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
2410. Craft Brewer,
25    (b) Distributor's license,

 

 

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

 

 

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1distributors, distributors and non-beverage users and to no
2other licensees.
3    Class 2. A Rectifier, who is not a distiller, as defined
4herein, may make sales and deliveries of alcoholic liquor to
5rectifiers, importing distributors, distributors, retailers
6and non-beverage users and to no other licensees.
7    Class 3. A Brewer may make sales and deliveries of beer to
8importing distributors and , distributors and may make sales as
9authorized under subsection (e) of Section 6-4 of this Act ,
10and to non-licensees, and to retailers provided the brewer
11obtains an importing distributor's license or distributor's
12license in accordance with the provisions of this Act.
13    Class 4. A first class wine-manufacturer may make sales and
14deliveries of up to 50,000 gallons of wine to manufacturers,
15importing distributors and distributors, and to no other
16licensees.
17    Class 5. A second class Wine manufacturer may make sales
18and deliveries of more than 50,000 gallons of wine to
19manufacturers, importing distributors and distributors and to
20no other licensees.
21    Class 6. A first-class wine-maker's license shall allow the
22manufacture of up to 50,000 gallons of wine per year, and the
23storage and sale of such wine to distributors in the State and
24to persons without the State, as may be permitted by law. A
25person who, prior to the effective date of this amendatory Act
26of the 95th General Assembly, is a holder of a first-class

 

 

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1wine-maker's license and annually produces more than 25,000
2gallons of its own wine and who distributes its wine to
3licensed retailers shall cease this practice on or before July
41, 2008 in compliance with this amendatory Act of the 95th
5General Assembly.
6    Class 7. A second-class wine-maker's license shall allow
7the manufacture of between 50,000 and 150,000 gallons of wine
8per year, and the storage and sale of such wine to distributors
9in this State and to persons without the State, as may be
10permitted by law. A person who, prior to the effective date of
11this amendatory Act of the 95th General Assembly, is a holder
12of a second-class wine-maker's license and annually produces
13more than 25,000 gallons of its own wine and who distributes
14its wine to licensed retailers shall cease this practice on or
15before July 1, 2008 in compliance with this amendatory Act of
16the 95th General Assembly.
17    Class 8. A limited wine-manufacturer may make sales and
18deliveries not to exceed 40,000 gallons of wine per year to
19distributors, and to non-licensees in accordance with the
20provisions of this Act.
21    Class 9. A craft distiller license shall allow the
22manufacture of up to 5,000 gallons of spirits by distillation
23per year and the storage of such spirits. If a craft distiller
24licensee is not affiliated with any other manufacturer, then
25the craft distiller licensee may sell such spirits to
26distributors in this State and non-licensees to the extent

 

 

09700SB0754sam002- 21 -LRB097 04475 ASK 54391 a

1permitted by any exemption approved by the Commission pursuant
2to Section 6-4 of this Act.
3    Any craft distiller licensed under this Act who on the
4effective date of this amendatory Act of the 96th General
5Assembly was licensed as a distiller and manufactured no more
6spirits than permitted by this Section shall not be required to
7pay the initial licensing fee.
8    Class 10. A craft brewer's license, which may only be
9issued to a licensed brewer or licensed non-resident dealer,
10shall allow the manufacture of up to 465,000 gallons of beer
11per year. A craft brewer licensee may make sales and deliveries
12to importing distributors and distributors and to retail
13licensees in accordance with the conditions set forth in
14paragraph (18) of subsection (a) of Section 3-12 of this Act.
15    (a-1) A manufacturer which is licensed in this State to
16make sales or deliveries of alcoholic liquor and which enlists
17agents, representatives, or individuals acting on its behalf
18who contact licensed retailers on a regular and continual basis
19in this State must register those agents, representatives, or
20persons acting on its behalf with the State Commission.
21    Registration of agents, representatives, or persons acting
22on behalf of a manufacturer is fulfilled by submitting a form
23to the Commission. The form shall be developed by the
24Commission and shall include the name and address of the
25applicant, the name and address of the manufacturer he or she
26represents, the territory or areas assigned to sell to or

 

 

09700SB0754sam002- 22 -LRB097 04475 ASK 54391 a

1discuss pricing terms of alcoholic liquor, and any other
2questions deemed appropriate and necessary. All statements in
3the forms required to be made by law or by rule shall be deemed
4material, and any person who knowingly misstates any material
5fact under oath in an application is guilty of a Class B
6misdemeanor. Fraud, misrepresentation, false statements,
7misleading statements, evasions, or suppression of material
8facts in the securing of a registration are grounds for
9suspension or revocation of the registration.
10    (b) A distributor's license shall allow the wholesale
11purchase and storage of alcoholic liquors and sale of alcoholic
12liquors to licensees in this State and to persons without the
13State, as may be permitted by law.
14    (c) An importing distributor's license may be issued to and
15held by those only who are duly licensed distributors, upon the
16filing of an application by a duly licensed distributor, with
17the Commission and the Commission shall, without the payment of
18any fee, immediately issue such importing distributor's
19license to the applicant, which shall allow the importation of
20alcoholic liquor by the licensee into this State from any point
21in the United States outside this State, and the purchase of
22alcoholic liquor in barrels, casks or other bulk containers and
23the bottling of such alcoholic liquors before resale thereof,
24but all bottles or containers so filled shall be sealed,
25labeled, stamped and otherwise made to comply with all
26provisions, rules and regulations governing manufacturers in

 

 

09700SB0754sam002- 23 -LRB097 04475 ASK 54391 a

1the preparation and bottling of alcoholic liquors. The
2importing distributor's license shall permit such licensee to
3purchase alcoholic liquor from Illinois licensed non-resident
4dealers and foreign importers only.
5    (d) A retailer's license shall allow the licensee to sell
6and offer for sale at retail, only in the premises specified in
7the license, alcoholic liquor for use or consumption, but not
8for resale in any form. Nothing in this amendatory Act of the
995th General Assembly shall deny, limit, remove, or restrict
10the ability of a holder of a retailer's license to transfer,
11deliver, or ship alcoholic liquor to the purchaser for use or
12consumption subject to any applicable local law or ordinance.
13Any retail license issued to a manufacturer shall only permit
14the manufacturer to sell beer at retail on the premises
15actually occupied by the manufacturer. For the purpose of
16further describing the type of business conducted at a retail
17licensed premises, a retailer's licensee may be designated by
18the State Commission as (i) an on premise consumption retailer,
19(ii) an off premise sale retailer, or (iii) a combined on
20premise consumption and off premise sale retailer.
21    Notwithstanding any other provision of this subsection
22(d), a retail licensee may sell alcoholic liquors to a special
23event retailer licensee for resale to the extent permitted
24under subsection (e).
25    (e) A special event retailer's license (not-for-profit)
26shall permit the licensee to purchase alcoholic liquors from an

 

 

09700SB0754sam002- 24 -LRB097 04475 ASK 54391 a

1Illinois licensed distributor (unless the licensee purchases
2less than $500 of alcoholic liquors for the special event, in
3which case the licensee may purchase the alcoholic liquors from
4a licensed retailer) and shall allow the licensee to sell and
5offer for sale, at retail, alcoholic liquors for use or
6consumption, but not for resale in any form and only at the
7location and on the specific dates designated for the special
8event in the license. An applicant for a special event retailer
9license must (i) furnish with the application: (A) a resale
10number issued under Section 2c of the Retailers' Occupation Tax
11Act or evidence that the applicant is registered under Section
122a of the Retailers' Occupation Tax Act, (B) a current, valid
13exemption identification number issued under Section 1g of the
14Retailers' Occupation Tax Act, and a certification to the
15Commission that the purchase of alcoholic liquors will be a
16tax-exempt purchase, or (C) a statement that the applicant is
17not registered under Section 2a of the Retailers' Occupation
18Tax Act, does not hold a resale number under Section 2c of the
19Retailers' Occupation Tax Act, and does not hold an exemption
20number under Section 1g of the Retailers' Occupation Tax Act,
21in which event the Commission shall set forth on the special
22event retailer's license a statement to that effect; (ii)
23submit with the application proof satisfactory to the State
24Commission that the applicant will provide dram shop liability
25insurance in the maximum limits; and (iii) show proof
26satisfactory to the State Commission that the applicant has

 

 

09700SB0754sam002- 25 -LRB097 04475 ASK 54391 a

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

 

 

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

 

 

09700SB0754sam002- 27 -LRB097 04475 ASK 54391 a

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

 

 

09700SB0754sam002- 28 -LRB097 04475 ASK 54391 a

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

 

 

09700SB0754sam002- 29 -LRB097 04475 ASK 54391 a

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

 

 

09700SB0754sam002- 30 -LRB097 04475 ASK 54391 a

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

 

 

09700SB0754sam002- 31 -LRB097 04475 ASK 54391 a

1alcoholic liquor which it proposes to sell to Illinois
2licensees during the license period, (ii) it shall comply with
3all of the provisions of Section 6-9 hereof with respect to
4registration of such Illinois licensees as may be granted the
5right to sell such brands at wholesale, and (iii) the
6non-resident dealer shall comply with the provisions of
7Sections 6-5 and 6-6 of this Act to the same extent that these
8provisions apply to manufacturers.
9    (n) A brew pub license shall allow the licensee to
10manufacture beer only on the premises specified in the license,
11to make sales of the beer manufactured on the premises to
12importing distributors, distributors, and to non-licensees for
13use and consumption, to store the beer upon the premises, and
14to sell and offer for sale at retail from the licensed
15premises, provided that a brew pub licensee shall not sell for
16off-premises consumption more than 50,000 gallons per year.
17    (o) A caterer retailer license shall allow the holder to
18serve alcoholic liquors as an incidental part of a food service
19that serves prepared meals which excludes the serving of snacks
20as the primary meal, either on or off-site whether licensed or
21unlicensed.
22    (p) An auction liquor license shall allow the licensee to
23sell and offer for sale at auction wine and spirits for use or
24consumption, or for resale by an Illinois liquor licensee in
25accordance with provisions of this Act. An auction liquor
26license will be issued to a person and it will permit the

 

 

09700SB0754sam002- 32 -LRB097 04475 ASK 54391 a

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

 

 

09700SB0754sam002- 33 -LRB097 04475 ASK 54391 a

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

 

 

09700SB0754sam002- 34 -LRB097 04475 ASK 54391 a

1Retailers' Occupation Tax Act for all wine that is sold by the
2winery shipper and shipped to persons in this State, the winery
3shipper's license shall be revoked in accordance with the
4provisions of Article VII of this Act.
5    A winery shipper licensee must collect, maintain, and
6submit to the Commission on a semi-annual basis the total
7number of cases per resident of wine shipped to residents of
8this State. A winery shipper licensed under this subsection (r)
9must comply with the requirements of Section 6-29 of this
10amendatory Act.
11(Source: P.A. 95-331, eff. 8-21-07; 95-634, eff. 6-1-08;
1295-769, eff. 7-29-08; 96-1367, eff. 7-28-10.)
 
13    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
14    Sec. 5-3. License fees. Except as otherwise provided
15herein, at the time application is made to the State Commission
16for a license of any class, the applicant shall pay to the
17State Commission the fee hereinafter provided for the kind of
18license applied for.
19    The fee for licenses issued by the State Commission shall
20be as follows:
21    For a manufacturer's license:
22    Class 1. Distiller .............................$3,600
23    Class 2. Rectifier .............................3,600
24    Class 3. Brewer ................................900
25    Class 4. First-class Wine Manufacturer .........600

 

 

09700SB0754sam002- 35 -LRB097 04475 ASK 54391 a

1    Class 5. Second-class
2        Wine Manufacturer ..........................1,200
3    Class 6. First-class wine-maker ................600
4    Class 7. Second-class wine-maker ...............1200
5    Class 8. Limited Wine Manufacturer..............120
6    Class 9. Craft Distiller........................ 1,800
7    Class 10. Craft 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,

 

 

09700SB0754sam002- 36 -LRB097 04475 ASK 54391 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    Fees collected under this Section shall be paid into the
25Dram Shop Fund. On and after July 1, 2003, of the funds
26received for a retailer's license, in addition to the first

 

 

09700SB0754sam002- 37 -LRB097 04475 ASK 54391 a

1$175, an additional $75 shall be paid into the Dram Shop Fund,
2and $250 shall be paid into the General Revenue Fund. Beginning
3June 30, 1990 and on June 30 of each subsequent year through
4June 29, 2003, any balance over $5,000,000 remaining in the
5Dram Shop Fund shall be credited to State liquor licensees and
6applied against their fees for State liquor licenses for the
7following year. The amount credited to each licensee shall be a
8proportion of the balance in the Dram Fund that is the same as
9the proportion of the license fee paid by the licensee under
10this Section for the period in which the balance was
11accumulated to the aggregate fees paid by all licensees during
12that period.
13    No fee shall be paid for licenses issued by the State
14Commission to the following non-beverage users:
15        (a) Hospitals, sanitariums, or clinics when their use
16    of alcoholic liquor is exclusively medicinal, mechanical
17    or scientific.
18        (b) Universities, colleges of learning or schools when
19    their use of alcoholic liquor is exclusively medicinal,
20    mechanical or scientific.
21        (c) Laboratories when their use is exclusively for the
22    purpose of scientific research.
23(Source: P.A. 95-634, eff. 6-1-08; 96-1367, eff. 7-28-10.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.".