Full Text of HB1404 100th General Assembly
HB1404ham001 100TH GENERAL ASSEMBLY | Rep. Jay Hoffman Filed: 3/26/2018
| | 10000HB1404ham001 | | LRB100 03121 RPS 36414 a |
|
| 1 | | AMENDMENT TO HOUSE BILL 1404
| 2 | | AMENDMENT NO. ______. Amend House Bill 1404 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Liquor Control Act of 1934 is amended by | 5 | | changing Sections 1-3.33 and 5-1 as follows:
| 6 | | (235 ILCS 5/1-3.33)
| 7 | | Sec. 1-3.33.
"Brew Pub" means a person who manufactures no | 8 | | more than 155,000 gallons of beer per year only at a
designated | 9 | | licensed premises , except as otherwise provided for a person | 10 | | who simultaneously holds more than one brew pub license, to | 11 | | make sales to importing distributors, distributors,
and to | 12 | | non-licensees for use and consumption only, who stores beer
at | 13 | | the designated premises, and who is allowed to sell at retail | 14 | | from the
licensed premises, provided that a brew pub licensee | 15 | | shall not sell for
off-premises consumption more than 155,000 | 16 | | gallons per year.
|
| | | 10000HB1404ham001 | - 2 - | LRB100 03121 RPS 36414 a |
|
| 1 | | (Source: P.A. 99-448, eff. 8-24-15.)
| 2 | | (235 ILCS 5/5-1) (from Ch. 43, par. 115) | 3 | | Sec. 5-1. Licenses issued by the Illinois Liquor Control | 4 | | Commission
shall be of the following classes: | 5 | | (a) Manufacturer's license - Class 1.
Distiller, Class 2. | 6 | | Rectifier, Class 3. Brewer, Class 4. First Class Wine
| 7 | | Manufacturer, Class 5. Second Class Wine Manufacturer,
Class 6. | 8 | | First Class Winemaker, Class 7. Second Class Winemaker, Class | 9 | | 8.
Limited Wine Manufacturer, Class 9. Craft Distiller, Class | 10 | | 10. Class 1 Brewer, Class 11. Class 2 Brewer, | 11 | | (b) Distributor's license, | 12 | | (c) Importing Distributor's license, | 13 | | (d) Retailer's license, | 14 | | (e) Special Event Retailer's license (not-for-profit), | 15 | | (f) Railroad license, | 16 | | (g) Boat license, | 17 | | (h) Non-Beverage User's license, | 18 | | (i) Wine-maker's premises license, | 19 | | (j) Airplane license, | 20 | | (k) Foreign importer's license, | 21 | | (l) Broker's license, | 22 | | (m) Non-resident dealer's
license, | 23 | | (n) Brew Pub license, | 24 | | (o) Auction liquor license, | 25 | | (p) Caterer retailer license, |
| | | 10000HB1404ham001 | - 3 - | LRB100 03121 RPS 36414 a |
|
| 1 | | (q) Special use permit license, | 2 | | (r) Winery shipper's license, | 3 | | (s) Craft distiller tasting permit. | 4 | | No
person, firm, partnership, corporation, or other legal | 5 | | business entity that is
engaged in the manufacturing of wine | 6 | | may concurrently obtain and hold a
wine-maker's license and a | 7 | | wine manufacturer's license. | 8 | | (a) A manufacturer's license shall allow the manufacture,
| 9 | | importation in bulk, storage, distribution and sale of | 10 | | alcoholic liquor
to persons without the State, as may be | 11 | | permitted by law and to licensees
in this State as follows: | 12 | | Class 1. A Distiller may make sales and deliveries of | 13 | | alcoholic liquor to
distillers, rectifiers, importing | 14 | | distributors, distributors and
non-beverage users and to no | 15 | | other licensees. | 16 | | Class 2. A Rectifier, who is not a distiller, as defined | 17 | | herein, may make
sales and deliveries of alcoholic liquor to | 18 | | rectifiers, importing distributors,
distributors, retailers | 19 | | and non-beverage users and to no other licensees. | 20 | | Class 3. A Brewer may make sales and deliveries of beer to | 21 | | importing
distributors and distributors and may make sales as | 22 | | authorized under subsection (e) of Section 6-4 of this Act. | 23 | | Class 4. A first class wine-manufacturer may make sales and | 24 | | deliveries of
up to 50,000 gallons of wine to manufacturers,
| 25 | | importing
distributors and distributors, and to no other | 26 | | licensees. |
| | | 10000HB1404ham001 | - 4 - | LRB100 03121 RPS 36414 a |
|
| 1 | | Class 5. A second class Wine manufacturer may make sales | 2 | | and deliveries
of more than 50,000 gallons of wine to | 3 | | manufacturers, importing distributors
and distributors and to | 4 | | no other licensees. | 5 | | Class 6. A first-class wine-maker's license shall allow the | 6 | | manufacture
of up to 50,000 gallons of wine per year, and the
| 7 | | storage
and sale of such
wine to distributors in the State and | 8 | | to persons without the
State, as may be permitted by law. A | 9 | | person who, prior to June 1, 2008 (the effective date of Public | 10 | | Act 95-634), is a holder of a first-class wine-maker's license | 11 | | and annually produces more than 25,000 gallons of its own wine | 12 | | and who distributes its wine to licensed retailers shall cease | 13 | | this practice on or before July 1, 2008 in compliance with | 14 | | Public Act 95-634. | 15 | | Class 7. A second-class wine-maker's license shall allow | 16 | | the manufacture
of between 50,000 and 150,000 gallons of wine | 17 | | per year, and
the
storage and sale of such wine
to distributors | 18 | | in this State and to persons without the State, as may be
| 19 | | permitted by law. A person who, prior to June 1, 2008 (the | 20 | | effective date of Public Act 95-634), is a holder of a | 21 | | second-class wine-maker's license and annually produces more | 22 | | than 25,000 gallons of its own wine and who distributes its | 23 | | wine to licensed retailers shall cease this practice on or | 24 | | before July 1, 2008 in compliance with Public Act 95-634. | 25 | | Class 8. A limited wine-manufacturer may make sales and | 26 | | deliveries not to
exceed 40,000 gallons of wine per year to |
| | | 10000HB1404ham001 | - 5 - | LRB100 03121 RPS 36414 a |
|
| 1 | | distributors, and to
non-licensees in accordance with the | 2 | | provisions of this Act. | 3 | | Class 9. A craft distiller license shall allow the | 4 | | manufacture of up to 100,000 gallons of spirits by distillation | 5 | | per year and the storage of such spirits. If a craft distiller | 6 | | licensee, including a craft distiller licensee who holds more | 7 | | than one craft distiller license, is not affiliated with any | 8 | | other manufacturer of spirits, then the craft distiller | 9 | | licensee may sell such spirits to distributors in this State | 10 | | and up to 2,500 gallons of such spirits to non-licensees to the | 11 | | extent permitted by any exemption approved by the Commission | 12 | | pursuant to Section 6-4 of this Act. A craft distiller license | 13 | | holder may store such spirits at a non-contiguous licensed | 14 | | location, but at no time shall a craft distiller license holder | 15 | | directly or indirectly produce in the aggregate more than | 16 | | 100,000 gallons of spirits per year. | 17 | | A craft distiller licensee may hold more than one craft | 18 | | distiller's license. However, a craft distiller that holds more | 19 | | than one craft distiller license shall not manufacture, in the | 20 | | aggregate, more than 100,000 gallons of spirits by distillation | 21 | | per year and shall not sell, in the aggregate, more than 2,500 | 22 | | gallons of such spirits to non-licensees in accordance with an | 23 | | exemption approved by the State Commission pursuant to Section | 24 | | 6-4 of this Act. | 25 | | Any craft distiller licensed under this Act who on July 28, | 26 | | 2010 (the effective date of Public Act 96-1367) was licensed as |
| | | 10000HB1404ham001 | - 6 - | LRB100 03121 RPS 36414 a |
|
| 1 | | a distiller and manufactured no more spirits than permitted by | 2 | | this Section shall not be required to pay the initial licensing | 3 | | fee. | 4 | | Class 10. A class 1 brewer license, which may only be | 5 | | issued to a licensed brewer or licensed non-resident dealer, | 6 | | shall allow the manufacture of up to 930,000 gallons of beer | 7 | | per year provided that the class 1 brewer licensee does not | 8 | | manufacture more than a combined 930,000 gallons of beer per | 9 | | year and is not a member of or affiliated with, directly or | 10 | | indirectly, a manufacturer that produces more than 930,000 | 11 | | gallons of beer per year or any other alcoholic liquor. A class | 12 | | 1 brewer licensee may make sales and deliveries to importing | 13 | | distributors and distributors and to retail licensees in | 14 | | accordance with the conditions set forth in paragraph (18) of | 15 | | subsection (a) of Section 3-12 of this Act. | 16 | | Class 11. A class 2 brewer license, which may only be | 17 | | issued to a licensed brewer or licensed non-resident dealer, | 18 | | shall allow the manufacture of up to 3,720,000 gallons of beer | 19 | | per year provided that the class 2 brewer licensee does not | 20 | | manufacture more than a combined 3,720,000 gallons of beer per | 21 | | year and is not a member of or affiliated with, directly or | 22 | | indirectly, a manufacturer that produces more than 3,720,000 | 23 | | gallons of beer per year or any other alcoholic liquor. A class | 24 | | 2 brewer licensee may make sales and deliveries to importing | 25 | | distributors and distributors, but shall not make sales or | 26 | | deliveries to any other licensee. If the State Commission |
| | | 10000HB1404ham001 | - 7 - | LRB100 03121 RPS 36414 a |
|
| 1 | | provides prior approval, a class 2 brewer licensee may annually | 2 | | transfer up to 3,720,000 gallons of beer manufactured by that | 3 | | class 2 brewer licensee to the premises of a licensed class 2 | 4 | | brewer wholly owned and operated by the same licensee. | 5 | | (a-1) A manufacturer which is licensed in this State to | 6 | | make sales or
deliveries of alcoholic liquor to licensed | 7 | | distributors or importing distributors and which enlists | 8 | | agents, representatives, or
individuals acting on its behalf | 9 | | who contact licensed retailers on a regular
and continual basis | 10 | | in this State must register those agents, representatives,
or | 11 | | persons acting on its behalf with the State Commission. | 12 | | Registration of agents, representatives, or persons acting | 13 | | on behalf of a
manufacturer is fulfilled by submitting a form | 14 | | to the Commission. The form
shall be developed by the | 15 | | Commission and shall include the name and address of
the | 16 | | applicant, the name and address of the manufacturer he or she | 17 | | represents,
the territory or areas assigned to sell to or | 18 | | discuss pricing terms of
alcoholic liquor, and any other | 19 | | questions deemed appropriate and necessary.
All statements in | 20 | | the forms required to be made by law or by rule shall be
deemed | 21 | | material, and any person who knowingly misstates any material | 22 | | fact under
oath in an application is guilty of a Class B | 23 | | misdemeanor. Fraud,
misrepresentation, false statements, | 24 | | misleading statements, evasions, or
suppression of material | 25 | | facts in the securing of a registration are grounds for
| 26 | | suspension or revocation of the registration. The State |
| | | 10000HB1404ham001 | - 8 - | LRB100 03121 RPS 36414 a |
|
| 1 | | Commission shall post a list of registered agents on the | 2 | | Commission's website. | 3 | | (b) A distributor's license shall allow the wholesale | 4 | | purchase and storage
of alcoholic liquors and sale of alcoholic | 5 | | liquors to licensees
in this State and to persons without the | 6 | | State, as may be permitted by law. No person licensed as a | 7 | | distributor shall be granted a non-resident dealer's license. | 8 | | (c) An importing distributor's license may be issued to and | 9 | | held by
those only who are duly licensed distributors, upon the | 10 | | filing of an
application by a duly licensed distributor, with | 11 | | the Commission and
the Commission shall, without the
payment of | 12 | | any fee, immediately issue such importing distributor's
| 13 | | license to the applicant, which shall allow the importation of | 14 | | alcoholic
liquor by the licensee into this State from any point | 15 | | in the United
States outside this State, and the purchase of | 16 | | alcoholic liquor in
barrels, casks or other bulk containers and | 17 | | the bottling of such
alcoholic liquors before resale thereof, | 18 | | but all bottles or containers
so filled shall be sealed, | 19 | | labeled, stamped and otherwise made to comply
with all | 20 | | provisions, rules and regulations governing manufacturers in
| 21 | | the preparation and bottling of alcoholic liquors. The | 22 | | importing
distributor's license shall permit such licensee to | 23 | | purchase alcoholic
liquor from Illinois licensed non-resident | 24 | | dealers and foreign importers only. No person licensed as an | 25 | | importing distributor shall be granted a non-resident dealer's | 26 | | license. |
| | | 10000HB1404ham001 | - 9 - | LRB100 03121 RPS 36414 a |
|
| 1 | | (d) A retailer's license shall allow the licensee to sell | 2 | | and offer
for sale at retail, only in the premises specified in | 3 | | the license,
alcoholic liquor for use or consumption, but not | 4 | | for resale in any form. Nothing in Public Act 95-634 shall | 5 | | deny, limit, remove, or restrict the ability of a holder of a | 6 | | retailer's license to transfer, deliver, or ship alcoholic | 7 | | liquor to the purchaser for use or consumption subject to any | 8 | | applicable local law or ordinance. Any retail license issued to | 9 | | a manufacturer shall only
permit the manufacturer to sell beer | 10 | | at retail on the premises actually
occupied by the | 11 | | manufacturer. For the purpose of further describing the type of | 12 | | business conducted at a retail licensed premises, a retailer's | 13 | | licensee may be designated by the State Commission as (i) an on | 14 | | premise consumption retailer, (ii) an off premise sale | 15 | | retailer, or (iii) a combined on premise consumption and off | 16 | | premise sale retailer.
| 17 | | Notwithstanding any other provision of this subsection | 18 | | (d), a retail
licensee may sell alcoholic liquors to a special | 19 | | event retailer licensee for
resale to the extent permitted | 20 | | under subsection (e). | 21 | | (e) A special event retailer's license (not-for-profit) | 22 | | shall permit the
licensee to purchase alcoholic liquors from an | 23 | | Illinois licensed distributor
(unless the licensee purchases | 24 | | less than $500 of alcoholic liquors for the
special event, in | 25 | | which case the licensee may purchase the alcoholic liquors
from | 26 | | a licensed retailer) and shall allow the licensee to sell and |
| | | 10000HB1404ham001 | - 10 - | LRB100 03121 RPS 36414 a |
|
| 1 | | offer for
sale, at retail, alcoholic liquors for use or | 2 | | consumption, but not for resale
in any form and only at the | 3 | | location and on the specific dates designated for
the special | 4 | | event in the license. An applicant for a special event retailer
| 5 | | license must
(i) furnish with the application: (A) a resale | 6 | | number issued under Section
2c of the Retailers' Occupation Tax | 7 | | Act or evidence that the applicant is
registered under Section | 8 | | 2a of the Retailers' Occupation Tax Act, (B) a
current, valid | 9 | | exemption identification
number issued under Section 1g of the | 10 | | Retailers' Occupation Tax Act, and a
certification to the | 11 | | Commission that the purchase of alcoholic liquors will be
a | 12 | | tax-exempt purchase, or (C) a statement that the applicant is | 13 | | not registered
under Section 2a of the Retailers' Occupation | 14 | | Tax Act, does not hold a resale
number under Section 2c of the | 15 | | Retailers' Occupation Tax Act, and does not
hold an exemption | 16 | | number under Section 1g of the Retailers' Occupation Tax
Act, | 17 | | in which event the Commission shall set forth on the special | 18 | | event
retailer's license a statement to that effect; (ii) | 19 | | submit with the application proof satisfactory to
the State | 20 | | Commission that the applicant will provide dram shop liability
| 21 | | insurance in the maximum limits; and (iii) show proof | 22 | | satisfactory to the
State Commission that the applicant has | 23 | | obtained local authority
approval. | 24 | | (f) A railroad license shall permit the licensee to import | 25 | | alcoholic
liquors into this State from any point in the United | 26 | | States outside this
State and to store such alcoholic liquors |
| | | 10000HB1404ham001 | - 11 - | LRB100 03121 RPS 36414 a |
|
| 1 | | in this State; to make wholesale
purchases of alcoholic liquors | 2 | | directly from manufacturers, foreign
importers, distributors | 3 | | and importing distributors from within or outside
this State; | 4 | | and to store such alcoholic liquors in this State; provided
| 5 | | that the above powers may be exercised only in connection with | 6 | | the
importation, purchase or storage of alcoholic liquors to be | 7 | | sold or
dispensed on a club, buffet, lounge or dining car | 8 | | operated on an electric,
gas or steam railway in this State; | 9 | | and provided further, that railroad
licensees exercising the | 10 | | above powers shall be subject to all provisions of
Article VIII | 11 | | of this Act as applied to importing distributors. A railroad
| 12 | | license shall also permit the licensee to sell or dispense | 13 | | alcoholic
liquors on any club, buffet, lounge or dining car | 14 | | operated on an electric,
gas or steam railway regularly | 15 | | operated by a common carrier in this State,
but shall not | 16 | | permit the sale for resale of any alcoholic liquors to any
| 17 | | licensee within this State. A license shall be obtained for | 18 | | each car in which
such sales are made. | 19 | | (g) A boat license shall allow the sale of alcoholic liquor | 20 | | in
individual drinks, on any passenger boat regularly operated | 21 | | as a common
carrier on navigable waters in this State or on any | 22 | | riverboat operated
under
the Riverboat Gambling Act, which boat | 23 | | or riverboat maintains a public
dining room or restaurant | 24 | | thereon. | 25 | | (h) A non-beverage user's license shall allow the licensee | 26 | | to
purchase alcoholic liquor from a licensed manufacturer or |
| | | 10000HB1404ham001 | - 12 - | LRB100 03121 RPS 36414 a |
|
| 1 | | importing
distributor, without the imposition of any tax upon | 2 | | the business of such
licensed manufacturer or importing | 3 | | distributor as to such alcoholic
liquor to be used by such | 4 | | licensee solely for the non-beverage purposes
set forth in | 5 | | subsection (a) of Section 8-1 of this Act, and
such licenses | 6 | | shall be divided and classified and shall permit the
purchase, | 7 | | possession and use of limited and stated quantities of
| 8 | | alcoholic liquor as follows: | 9 | | Class 1, not to exceed ......................... 500 gallons
| 10 | | Class 2, not to exceed ....................... 1,000 gallons
| 11 | | Class 3, not to exceed ....................... 5,000 gallons
| 12 | | Class 4, not to exceed ...................... 10,000 gallons
| 13 | | Class 5, not to exceed ....................... 50,000 gallons | 14 | | (i) A wine-maker's premises license shall allow a
licensee | 15 | | that concurrently holds a first-class wine-maker's license to | 16 | | sell
and offer for sale at retail in the premises specified in | 17 | | such license
not more than 50,000 gallons of the first-class | 18 | | wine-maker's wine that is
made at the first-class wine-maker's | 19 | | licensed premises per year for use or
consumption, but not for | 20 | | resale in any form. A wine-maker's premises
license shall allow | 21 | | a licensee who concurrently holds a second-class
wine-maker's | 22 | | license to sell and offer for sale at retail in the premises
| 23 | | specified in such license up to 100,000 gallons of the
| 24 | | second-class wine-maker's wine that is made at the second-class | 25 | | wine-maker's
licensed premises per year
for use or consumption | 26 | | but not for resale in any form. A wine-maker's premises license |
| | | 10000HB1404ham001 | - 13 - | LRB100 03121 RPS 36414 a |
|
| 1 | | shall allow a
licensee that concurrently holds a first-class | 2 | | wine-maker's license or a second-class
wine-maker's license to | 3 | | sell
and offer for sale at retail at the premises specified in | 4 | | the wine-maker's premises license, for use or consumption but | 5 | | not for resale in any form, any beer, wine, and spirits | 6 | | purchased from a licensed distributor. Upon approval from the
| 7 | | State Commission, a wine-maker's premises license
shall allow | 8 | | the licensee to sell and offer for sale at (i) the wine-maker's
| 9 | | licensed premises and (ii) at up to 2 additional locations for | 10 | | use and
consumption and not for resale. Each location shall | 11 | | require additional
licensing per location as specified in | 12 | | Section 5-3 of this Act. A wine-maker's premises licensee shall
| 13 | | secure liquor liability insurance coverage in an amount at
| 14 | | least equal to the maximum liability amounts set forth in
| 15 | | subsection (a) of Section 6-21 of this Act.
| 16 | | (j) An airplane license shall permit the licensee to import
| 17 | | alcoholic liquors into this State from any point in the United | 18 | | States
outside this State and to store such alcoholic liquors | 19 | | in this State; to
make wholesale purchases of alcoholic liquors | 20 | | directly from
manufacturers, foreign importers, distributors | 21 | | and importing
distributors from within or outside this State; | 22 | | and to store such
alcoholic liquors in this State; provided | 23 | | that the above powers may be
exercised only in connection with | 24 | | the importation, purchase or storage
of alcoholic liquors to be | 25 | | sold or dispensed on an airplane; and
provided further, that | 26 | | airplane licensees exercising the above powers
shall be subject |
| | | 10000HB1404ham001 | - 14 - | LRB100 03121 RPS 36414 a |
|
| 1 | | to all provisions of Article VIII of this Act as
applied to | 2 | | importing distributors. An airplane licensee shall also
permit | 3 | | the sale or dispensing of alcoholic liquors on any passenger
| 4 | | airplane regularly operated by a common carrier in this State, | 5 | | but shall
not permit the sale for resale of any alcoholic | 6 | | liquors to any licensee
within this State. A single airplane | 7 | | license shall be required of an
airline company if liquor | 8 | | service is provided on board aircraft in this
State. The annual | 9 | | fee for such license shall be as determined in
Section 5-3. | 10 | | (k) A foreign importer's license shall permit such licensee | 11 | | to purchase
alcoholic liquor from Illinois licensed | 12 | | non-resident dealers only, and to
import alcoholic liquor other | 13 | | than in bulk from any point outside the
United States and to | 14 | | sell such alcoholic liquor to Illinois licensed
importing | 15 | | distributors and to no one else in Illinois;
provided that (i) | 16 | | the foreign importer registers with the State Commission
every
| 17 | | brand of
alcoholic liquor that it proposes to sell to Illinois | 18 | | licensees during the
license period, (ii) the foreign importer | 19 | | complies with all of the provisions
of Section
6-9 of this Act | 20 | | with respect to registration of such Illinois licensees as may
| 21 | | be granted the
right to sell such brands at wholesale, and | 22 | | (iii) the foreign importer complies with the provisions of | 23 | | Sections 6-5 and 6-6 of this Act to the same extent that these | 24 | | provisions apply to manufacturers. | 25 | | (l) (i) A broker's license shall be required of all persons
| 26 | | who solicit
orders for, offer to sell or offer to supply |
| | | 10000HB1404ham001 | - 15 - | LRB100 03121 RPS 36414 a |
|
| 1 | | alcoholic liquor to
retailers in the State of Illinois, or who | 2 | | offer to retailers to ship or
cause to be shipped or to make | 3 | | contact with distillers, rectifiers,
brewers or manufacturers | 4 | | or any other party within or without the State
of Illinois in | 5 | | order that alcoholic liquors be shipped to a distributor,
| 6 | | importing distributor or foreign importer, whether such | 7 | | solicitation or
offer is consummated within or without the | 8 | | State of Illinois. | 9 | | No holder of a retailer's license issued by the Illinois | 10 | | Liquor
Control Commission shall purchase or receive any | 11 | | alcoholic liquor, the
order for which was solicited or offered | 12 | | for sale to such retailer by a
broker unless the broker is the | 13 | | holder of a valid broker's license. | 14 | | The broker shall, upon the acceptance by a retailer of the | 15 | | broker's
solicitation of an order or offer to sell or supply or | 16 | | deliver or have
delivered alcoholic liquors, promptly forward | 17 | | to the Illinois Liquor
Control Commission a notification of | 18 | | said transaction in such form as
the Commission may by | 19 | | regulations prescribe. | 20 | | (ii) A broker's license shall be required of
a person | 21 | | within this State, other than a retail licensee,
who, for a fee | 22 | | or commission, promotes, solicits, or accepts orders for
| 23 | | alcoholic liquor, for use or consumption and not for
resale, to | 24 | | be shipped from this State and delivered to residents outside | 25 | | of
this State by an express company, common carrier, or | 26 | | contract carrier.
This Section does not apply to any person who |
| | | 10000HB1404ham001 | - 16 - | LRB100 03121 RPS 36414 a |
|
| 1 | | promotes, solicits, or accepts
orders for wine as specifically | 2 | | authorized in Section 6-29 of this Act. | 3 | | A broker's license under this subsection (l)
shall not | 4 | | entitle the holder to
buy or sell any
alcoholic liquors for his | 5 | | own account or to take or deliver title to
such alcoholic | 6 | | liquors. | 7 | | This subsection (l)
shall not apply to distributors, | 8 | | employees of
distributors, or employees of a manufacturer who | 9 | | has registered the
trademark, brand or name of the alcoholic | 10 | | liquor pursuant to Section 6-9
of this Act, and who regularly | 11 | | sells such alcoholic liquor
in the State of Illinois only to | 12 | | its registrants thereunder. | 13 | | Any agent, representative, or person subject to | 14 | | registration pursuant to
subsection (a-1) of this Section shall | 15 | | not be eligible to receive a broker's
license. | 16 | | (m) A non-resident dealer's license shall permit such | 17 | | licensee to ship
into and warehouse alcoholic liquor into this | 18 | | State from any point
outside of this State, and to sell such | 19 | | alcoholic liquor to Illinois licensed
foreign importers and | 20 | | importing distributors and to no one else in this State;
| 21 | | provided that (i) said non-resident dealer shall register with | 22 | | the Illinois Liquor
Control Commission each and every brand of | 23 | | alcoholic liquor which it proposes
to sell to Illinois | 24 | | licensees during the license period, (ii) it shall comply with | 25 | | all of the provisions of Section 6-9 hereof with
respect to | 26 | | registration of such Illinois licensees as may be granted the |
| | | 10000HB1404ham001 | - 17 - | LRB100 03121 RPS 36414 a |
|
| 1 | | right
to sell such brands at wholesale, and (iii) the | 2 | | non-resident dealer shall comply with the provisions of | 3 | | Sections 6-5 and 6-6 of this Act to the same extent that these | 4 | | provisions apply to manufacturers. No person licensed as a | 5 | | non-resident dealer shall be granted a distributor's or | 6 | | importing distributor's license. | 7 | | (n) A brew pub license shall allow the licensee to only (i) | 8 | | manufacture up to 155,000 gallons of beer per year only
on the | 9 | | premises specified in the license, (ii) make sales of the
beer | 10 | | manufactured on the premises or, with the approval of the | 11 | | Commission, beer manufactured on another brew pub licensed | 12 | | premises that is wholly owned and operated by the same licensee | 13 | | to importing distributors, distributors,
and to non-licensees | 14 | | for use and consumption, (iii) store the beer upon
the | 15 | | premises, (iv) sell and offer for sale at retail from the | 16 | | licensed
premises for off-premises
consumption no more than | 17 | | 155,000 gallons per year so long as such sales are only made | 18 | | in-person, (v) sell and offer for sale at retail for use and | 19 | | consumption on the premises specified in the license any form | 20 | | of alcoholic liquor purchased from a licensed distributor or | 21 | | importing distributor, and (vi) with the prior approval of the | 22 | | Commission, annually transfer no more than 155,000 gallons of | 23 | | beer manufactured on the premises to a licensed brew pub wholly | 24 | | owned and operated by the same licensee. | 25 | | A brew pub licensee shall not under any circumstance sell | 26 | | or offer for sale beer manufactured by the brew pub licensee to |
| | | 10000HB1404ham001 | - 18 - | LRB100 03121 RPS 36414 a |
|
| 1 | | retail licensees. | 2 | | A person who holds a class 2 brewer license may | 3 | | simultaneously hold a brew pub license if the class 2 brewer | 4 | | (i) does not, under any circumstance, sell or offer for sale | 5 | | beer manufactured by the class 2 brewer to retail licensees; | 6 | | (ii) does not hold more than 3 brew pub licenses in this State; | 7 | | (iii) does not manufacture more than a combined 3,720,000 | 8 | | gallons of beer per year, including the beer manufactured at | 9 | | the brew pub; and (iv) is not a member of or affiliated with, | 10 | | directly or indirectly, a manufacturer that produces more than | 11 | | 3,720,000 gallons of beer per year or any other alcoholic | 12 | | liquor. | 13 | | A person may simultaneously hold more than one brew pub | 14 | | license. A person who holds 2 brew pub licenses may, in the | 15 | | aggregate, manufacture up to 310,000 gallons of beer per year | 16 | | among the premises specified in the licenses. A person who | 17 | | holds 3 or more brew pub licenses may, in the aggregate, | 18 | | manufacture up to 465,000 gallons of beer among the premises | 19 | | specified in the licenses. | 20 | | Notwithstanding any other provision of this Act, a licensed | 21 | | brewer, class 2 brewer, or non-resident dealer who before July | 22 | | 1, 2015 manufactured less than 3,720,000 gallons of beer per | 23 | | year and held a brew pub license on or before July 1, 2015 may | 24 | | (i) continue to qualify for and hold that brew pub license for | 25 | | the licensed premises and (ii) manufacture more than 3,720,000 | 26 | | gallons of beer per year and continue to qualify for and hold |
| | | 10000HB1404ham001 | - 19 - | LRB100 03121 RPS 36414 a |
|
| 1 | | that brew pub license if that brewer, class 2 brewer, or | 2 | | non-resident dealer does not simultaneously hold a class 1 | 3 | | brewer license and is not a member of or affiliated with, | 4 | | directly or indirectly, a manufacturer that produces more than | 5 | | 3,720,000 gallons of beer per year or that produces any other | 6 | | alcoholic liquor. | 7 | | (o) A caterer retailer license shall allow the holder
to | 8 | | serve alcoholic liquors as an incidental part of a food service | 9 | | that serves
prepared meals which excludes the serving of snacks | 10 | | as
the primary meal, either on or off-site whether licensed or | 11 | | unlicensed. | 12 | | (p) An auction liquor license shall allow the licensee to | 13 | | sell and offer
for sale at auction wine and spirits for use or | 14 | | consumption, or for resale by
an Illinois liquor licensee in | 15 | | accordance with provisions of this Act. An
auction liquor | 16 | | license will be issued to a person and it will permit the
| 17 | | auction liquor licensee to hold the auction anywhere in the | 18 | | State. An auction
liquor license must be obtained for each | 19 | | auction at least 14 days in advance of
the auction date. | 20 | | (q) A special use permit license shall allow an Illinois | 21 | | licensed
retailer to transfer a portion of its alcoholic liquor | 22 | | inventory from its
retail licensed premises to the premises | 23 | | specified in the license hereby
created, and to sell or offer | 24 | | for sale at retail, only in the premises
specified in the | 25 | | license hereby created, the transferred alcoholic liquor for
| 26 | | use or consumption, but not for resale in any form. A special |
| | | 10000HB1404ham001 | - 20 - | LRB100 03121 RPS 36414 a |
|
| 1 | | use permit
license may be granted for the following time | 2 | | periods: one day or less; 2 or
more days to a maximum of 15 days | 3 | | per location in any 12-month period. An
applicant for the | 4 | | special use permit license must also submit with the
| 5 | | application proof satisfactory to the State Commission that the | 6 | | applicant will
provide dram shop liability insurance to the | 7 | | maximum limits and have local
authority approval. | 8 | | (r) A winery shipper's license shall allow a person
with a | 9 | | first-class or second-class wine manufacturer's
license, a | 10 | | first-class or second-class wine-maker's license,
or a limited | 11 | | wine manufacturer's license or who is licensed to
make wine | 12 | | under the laws of another state to ship wine
made by that | 13 | | licensee directly to a resident of this
State who is 21 years | 14 | | of age or older for that resident's
personal use and not for | 15 | | resale. Prior to receiving a
winery shipper's license, an | 16 | | applicant for the license must
provide the Commission with a | 17 | | true copy of its current
license in any state in which it is | 18 | | licensed as a manufacturer
of wine. An applicant for a winery | 19 | | shipper's license must
also complete an application form that | 20 | | provides any other
information the Commission deems necessary. | 21 | | The application form shall include all addresses from which the | 22 | | applicant for a winery shipper's license intends to ship wine, | 23 | | including the name and address of any third party, except for a | 24 | | common carrier, authorized to ship wine on behalf of the | 25 | | manufacturer. The
application form shall include an | 26 | | acknowledgement consenting
to the jurisdiction of the |
| | | 10000HB1404ham001 | - 21 - | LRB100 03121 RPS 36414 a |
|
| 1 | | Commission, the Illinois
Department of Revenue, and the courts | 2 | | of this State concerning
the enforcement of this Act and any | 3 | | related laws, rules, and
regulations, including authorizing | 4 | | the Department of Revenue
and the Commission to conduct audits | 5 | | for the purpose of
ensuring compliance with Public Act 95-634, | 6 | | and an acknowledgement that the wine manufacturer is in | 7 | | compliance with Section 6-2 of this Act. Any third party, | 8 | | except for a common carrier, authorized to ship wine on behalf | 9 | | of a first-class or second-class wine manufacturer's licensee, | 10 | | a first-class or second-class wine-maker's licensee, a limited | 11 | | wine manufacturer's licensee, or a person who is licensed to | 12 | | make wine under the laws of another state shall also be | 13 | | disclosed by the winery shipper's licensee, and a copy of the | 14 | | written appointment of the third-party wine provider, except | 15 | | for a common carrier, to the wine manufacturer shall be filed | 16 | | with the State Commission as a supplement to the winery | 17 | | shipper's license application or any renewal thereof. The | 18 | | winery shipper's license holder shall affirm under penalty of | 19 | | perjury, as part of the winery shipper's license application or | 20 | | renewal, that he or she only ships wine, either directly or | 21 | | indirectly through a third-party provider, from the licensee's | 22 | | own production. | 23 | | Except for a common carrier, a third-party provider | 24 | | shipping wine on behalf of a winery shipper's license holder is | 25 | | the agent of the winery shipper's license holder and, as such, | 26 | | a winery shipper's license holder is responsible for the acts |
| | | 10000HB1404ham001 | - 22 - | LRB100 03121 RPS 36414 a |
|
| 1 | | and omissions of the third-party provider acting on behalf of | 2 | | the license holder. A third-party provider, except for a common | 3 | | carrier, that engages in shipping wine into Illinois on behalf | 4 | | of a winery shipper's license holder shall consent to the | 5 | | jurisdiction of the State Commission and the State. Any | 6 | | third-party, except for a common carrier, holding such an | 7 | | appointment shall, by February 1 of each calendar year and upon | 8 | | request by the State Commission or the Department of Revenue, | 9 | | file with the State Commission a statement detailing each | 10 | | shipment made to an Illinois resident. The statement shall | 11 | | include the name and address of the third-party provider filing | 12 | | the statement, the time period covered by the statement, and | 13 | | the following information: | 14 | | (1) the name, address, and license number of the winery | 15 | | shipper on whose behalf the shipment was made; | 16 | | (2) the quantity of the products delivered; and | 17 | | (3) the date and address of the shipment. | 18 | | If the Department of Revenue or the State Commission requests a | 19 | | statement under this paragraph, the third-party provider must | 20 | | provide that statement no later than 30 days after the request | 21 | | is made. Any books, records, supporting papers, and documents | 22 | | containing information and data relating to a statement under | 23 | | this paragraph shall be kept and preserved for a period of 3 | 24 | | years, unless their destruction sooner is authorized, in | 25 | | writing, by the Director of Revenue, and shall be open and | 26 | | available to inspection by the Director of Revenue or the State |
| | | 10000HB1404ham001 | - 23 - | LRB100 03121 RPS 36414 a |
|
| 1 | | Commission or any duly authorized officer, agent, or employee | 2 | | of the State Commission or the Department of Revenue, at all | 3 | | times during business hours of the day. Any person who violates | 4 | | any provision of this paragraph or any rule of the State | 5 | | Commission for the administration and enforcement of the | 6 | | provisions of this paragraph is guilty of a Class C | 7 | | misdemeanor. In case of a continuing violation, each day's | 8 | | continuance thereof shall be a separate and distinct offense. | 9 | | The State Commission shall adopt rules as soon as | 10 | | practicable to implement the requirements of Public Act 99-904 | 11 | | and shall adopt rules prohibiting any such third-party | 12 | | appointment of a third-party provider, except for a common | 13 | | carrier, that has been deemed by the State Commission to have | 14 | | violated the provisions of this Act with regard to any winery | 15 | | shipper licensee. | 16 | | A winery shipper licensee must pay to the Department
of | 17 | | Revenue the State liquor gallonage tax under Section 8-1 for
| 18 | | all wine that is sold by the licensee and shipped to a person
| 19 | | in this State. For the purposes of Section 8-1, a winery
| 20 | | shipper licensee shall be taxed in the same manner as a
| 21 | | manufacturer of wine. A licensee who is not otherwise required | 22 | | to register under the Retailers' Occupation Tax Act must
| 23 | | register under the Use Tax Act to collect and remit use tax to
| 24 | | the Department of Revenue for all gallons of wine that are sold
| 25 | | by the licensee and shipped to persons in this State. If a
| 26 | | licensee fails to remit the tax imposed under this Act in
|
| | | 10000HB1404ham001 | - 24 - | LRB100 03121 RPS 36414 a |
|
| 1 | | accordance with the provisions of Article VIII of this Act, the
| 2 | | winery shipper's license shall be revoked in accordance
with | 3 | | the provisions of Article VII of this Act. If a licensee
fails | 4 | | to properly register and remit tax under the Use Tax Act
or the | 5 | | Retailers' Occupation Tax Act for all wine that is sold
by the | 6 | | winery shipper and shipped to persons in this
State, the winery | 7 | | shipper's license shall be revoked in
accordance with the | 8 | | provisions of Article VII of this Act. | 9 | | A winery shipper licensee must collect, maintain, and
| 10 | | submit to the Commission on a semi-annual basis the
total | 11 | | number of cases per resident of wine shipped to residents
of | 12 | | this State.
A winery shipper licensed under this subsection (r)
| 13 | | must comply with the requirements of Section 6-29 of this Act. | 14 | | Pursuant to paragraph (5.1) or (5.3) of subsection (a) of | 15 | | Section 3-12, the State Commission may receive, respond to, and | 16 | | investigate any complaint and impose any of the remedies | 17 | | specified in paragraph (1) of subsection (a) of Section 3-12. | 18 | | As used in this subsection, "third-party provider" means | 19 | | any entity that provides fulfillment house services, including | 20 | | warehousing, packaging, distribution, order processing, or | 21 | | shipment of wine, but not the sale of wine, on behalf of a | 22 | | licensed winery shipper. | 23 | | (s) A craft distiller tasting permit license shall allow an | 24 | | Illinois licensed craft distiller to transfer a portion of its | 25 | | alcoholic liquor inventory from its craft distiller licensed | 26 | | premises to the premises specified in the license hereby |
| | | 10000HB1404ham001 | - 25 - | LRB100 03121 RPS 36414 a |
|
| 1 | | created and to conduct a sampling, only in the premises | 2 | | specified in the license hereby created, of the transferred | 3 | | alcoholic liquor in accordance with subsection (c) of Section | 4 | | 6-31 of this Act. The transferred alcoholic liquor may not be | 5 | | sold or resold in any form. An applicant for the craft | 6 | | distiller tasting permit license must also submit with the | 7 | | application proof satisfactory to the State Commission that the | 8 | | applicant will provide dram shop liability insurance to the | 9 | | maximum limits and have local authority approval. | 10 | | (Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16; | 11 | | 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff. | 12 | | 1-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17.)
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.".
|
|