Full Text of SB3022 100th General Assembly
SB3022enr 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning liquor.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Executive Reorganization Implementation Act | 5 | | is amended by changing Section 3.1 as follows:
| 6 | | (15 ILCS 15/3.1) (from Ch. 127, par. 1803.1)
| 7 | | Sec. 3.1. "Agency directly responsible to the Governor" or | 8 | | "agency" means
any office, officer, division, or part thereof,
| 9 | | and any other office, nonelective officer, department, | 10 | | division, bureau,
board, or commission in the executive branch | 11 | | of State government,
except that it does not apply to any | 12 | | agency whose primary function is service
to the General | 13 | | Assembly or the Judicial Branch of State government, or to
any | 14 | | agency administered by the Attorney General, Secretary of | 15 | | State, State
Comptroller or State Treasurer. In addition the | 16 | | term does not apply to
the following agencies created by law | 17 | | with the primary responsibility of
exercising regulatory
or | 18 | | adjudicatory functions independently of the Governor:
| 19 | | (1) the State Board of Elections;
| 20 | | (2) the State Board of Education;
| 21 | | (3) the Illinois Commerce Commission;
| 22 | | (4) the Illinois Workers' Compensation
Commission;
| 23 | | (5) the Civil Service Commission;
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| 1 | | (6) the Fair Employment Practices Commission;
| 2 | | (7) the Pollution Control Board;
| 3 | | (8) the Department of State Police Merit Board; | 4 | | (9) the Illinois Racing Board;
| 5 | | (10) the Illinois Power Agency ; . | 6 | | (11) the Illinois Liquor Control Commission. | 7 | | (Source: P.A. 96-796, eff. 10-29-09; 97-618, eff. 10-26-11.)
| 8 | | Section 10. The Liquor Control Act of 1934 is amended by | 9 | | changing Sections 3-1, 3-2, 3-5, 3-6, 3-7, 3-10, 3-12, 5-1, and | 10 | | 8-5 and by adding Section 3-20 as follows:
| 11 | | (235 ILCS 5/3-1) (from Ch. 43, par. 97)
| 12 | | Sec. 3-1.
There is hereby created an Illinois Liquor | 13 | | Control Commission
consisting of 7 members to be appointed by | 14 | | the Governor
with the advice and consent of the Senate, no more | 15 | | than 4
of whom shall be members of the same political party. | 16 | | The Executive Director of the Illinois Liquor Control | 17 | | Commission shall be appointed by the Governor with the advice | 18 | | and consent of the Senate.
| 19 | | (Source: P.A. 91-798, eff. 7-9-00.)
| 20 | | (235 ILCS 5/3-2) (from Ch. 43, par. 98)
| 21 | | Sec. 3-2.
Immediately, or soon as may be after the | 22 | | effective date of this
Act, the Governor shall appoint 3 | 23 | | members of the commission,
one of whom shall be designated as |
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| 1 | | "Chairman", one to hold office for a
period of 2 years, one to | 2 | | hold office for a period of 4
years and one to hold office for a | 3 | | period of 6 years. Immediately,
or as soon as may be after the | 4 | | effective
date of this amendatory Act of 1983, the Governor | 5 | | shall appoint 2 members
to the commission to the offices | 6 | | created by this amendatory Act of 1983,
one for an initial term | 7 | | expiring the third Monday in January of 1986 and
one for an | 8 | | initial term expiring the third Monday in January of
1988. At | 9 | | the expiration of the
term of any such commissioner the | 10 | | Governor shall reappoint said commissioner
or appoint a | 11 | | successor of said commissioner for a period of
6 years. The | 12 | | Governor shall have power to fill vacancies in the
office of | 13 | | any commissioner.
| 14 | | Notwithstanding any provision of this Section to the | 15 | | contrary, the term
of office of each member of the commission | 16 | | is abolished on the effective
date of this amendatory Act of | 17 | | 1985, but the incumbent members shall
continue to exercise all | 18 | | of the powers and be subject to all of the duties
of members of | 19 | | the commission until their respective successors are
appointed | 20 | | and qualified. The Governor shall appoint 2 members of the
| 21 | | commission whose terms of office shall expire on February 1, | 22 | | 1986, 2
members of the commission whose terms of office shall | 23 | | expire on February 1,
1988, and one member of the commission | 24 | | whose term shall expire on February
1, 1990. Their respective | 25 | | successors shall be appointed for terms of 6
years from the | 26 | | first day of February of the year of appointment. Each
member |
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| 1 | | shall serve until his successor is appointed and qualified.
| 2 | | The initial term of both of the 2 additional members | 3 | | appointed pursuant to
this amendatory Act of the 91st General | 4 | | Assembly shall expire on February 1,
2006. Their respective | 5 | | successors shall be appointed for terms of 6 years from
the | 6 | | first day of February of the year of appointment. Each member | 7 | | shall serve
until his or her successor is appointed and | 8 | | qualified.
| 9 | | Notwithstanding any action taken to fill the office on an | 10 | | acting, temporary, or other basis, the office of Executive | 11 | | Director of the Commission shall be vacant on January 1, 2019. | 12 | | On and after January 1, 2019, the Governor shall appoint the | 13 | | Executive Director of the Commission for a 4-year term, with | 14 | | the advice and consent of the Senate. | 15 | | (Source: P.A. 91-798, eff. 7-9-00.)
| 16 | | (235 ILCS 5/3-5) (from Ch. 43, par. 101)
| 17 | | Sec. 3-5.
Each commissioner, the secretary, the Executive | 18 | | Director, and each person
appointed by the
commission shall, | 19 | | before entering upon the duties of his or her office, take and
| 20 | | subscribe to the constitutional oath of office. The secretary , | 21 | | the Executive Director, and each
inspector, clerk , and other | 22 | | employee shall devote his or her entire time to the
duties of | 23 | | his or her office.
| 24 | | (Source: P.A. 82-783.)
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| 1 | | (235 ILCS 5/3-6) (from Ch. 43, par. 102)
| 2 | | Sec. 3-6.
No person shall be appointed a commissioner, | 3 | | secretary, Executive Director, or
inspector for the commission | 4 | | who is not a citizen of the United States. No commissioner,
| 5 | | secretary, Executive Director, inspector, or other employee | 6 | | shall be appointed who has been
convicted of any violation of | 7 | | any Federal or State law concerning the
manufacture or sale of | 8 | | alcoholic liquor prior or subsequent to the passage
of this Act | 9 | | or who has paid a fine or penalty in settlement of any
| 10 | | prosecution against him or her for any violation of such laws | 11 | | or shall have
forfeited his or her bond to appear in court to | 12 | | answer charges for any such
violation, nor shall any person be | 13 | | appointed who has been convicted of a
felony. No commissioner, | 14 | | Executive Director, inspector , or other employee, may, | 15 | | directly or
indirectly, individually or as a member of a | 16 | | partnership, or as a
shareholder of a corporation, have any | 17 | | interest whatsoever in the
manufacture, sale or distribution of | 18 | | alcoholic liquor, nor receive any
compensation or profit | 19 | | therefrom, nor have any interest whatsoever in the
purchases or | 20 | | sales made by the persons authorized by this Act, or to
| 21 | | purchase or to sell alcoholic liquor. No provision of this | 22 | | section shall
prevent any such commissioner, secretary, | 23 | | Executive Director, inspector , or other employee from
| 24 | | purchasing and keeping in his or her possession for the use of | 25 | | himself or herself or members
of his or her family or guests | 26 | | any alcoholic liquor which may be purchased or kept
by any |
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| 1 | | person by virtue of this Act.
| 2 | | (Source: P.A. 83-1254.)
| 3 | | (235 ILCS 5/3-7) (from Ch. 43, par. 103)
| 4 | | Sec. 3-7.
No commissioner, secretary, Executive Director, | 5 | | or person appointed or employed by the
commission, shall | 6 | | solicit or accept any gift, gratuity, emolument or
employment | 7 | | from any person subject to the provisions of this Act, or from
| 8 | | any officer, agent or employee thereof, nor solicit, request | 9 | | from or
recommend, directly or indirectly, to any such person | 10 | | or to any officer,
agent or employee thereof, the appointment | 11 | | of any person to any place or
position, and every such person, | 12 | | and every officer, agent or employee
thereof, is hereby | 13 | | forbidden to offer to any commissioner, secretary, Executive | 14 | | Director, or to
any person appointed or employed by the | 15 | | commission, any gift, gratuity,
emolument or employment. If any | 16 | | commissioner, secretary , Executive Director, or any person
| 17 | | appointed or employed by the commission , shall violate any of | 18 | | the
provisions of this Section, he or she shall be removed from | 19 | | the office or
employment held by him or her . Every person | 20 | | violating the provisions of this
Section shall be guilty of a | 21 | | Class A misdemeanor.
| 22 | | (Source: P.A. 82-783.)
| 23 | | (235 ILCS 5/3-10) (from Ch. 43, par. 106)
| 24 | | Sec. 3-10.
The commissioners, the secretary, the Executive |
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| 1 | | Director, and all clerks,
inspectors , and
other employees shall | 2 | | be reimbursed for all actual and necessary traveling
and other | 3 | | expenses and disbursements incurred or made by them in the
| 4 | | discharge of their official duties. The commission may also | 5 | | incur necessary
expenses for office furniture and other | 6 | | incidental expenses.
| 7 | | (Source: P.A. 82-783.)
| 8 | | (235 ILCS 5/3-12)
| 9 | | Sec. 3-12. Powers and duties of State Commission.
| 10 | | (a) The State commission shall have the following powers, | 11 | | functions, and
duties:
| 12 | | (1) To receive applications and to issue licenses to | 13 | | manufacturers,
foreign importers, importing distributors, | 14 | | distributors, non-resident dealers,
on premise consumption | 15 | | retailers, off premise sale retailers, special event
| 16 | | retailer licensees, special use permit licenses, auction | 17 | | liquor licenses, brew
pubs, caterer retailers, | 18 | | non-beverage users, railroads, including owners and
| 19 | | lessees of sleeping, dining and cafe cars, airplanes, | 20 | | boats, brokers, and wine
maker's premises licensees in | 21 | | accordance with the provisions of this Act, and
to suspend | 22 | | or revoke such licenses upon the State commission's | 23 | | determination,
upon notice after hearing, that a licensee | 24 | | has violated any provision of this
Act or any rule or | 25 | | regulation issued pursuant thereto and in effect for 30 |
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| 1 | | days
prior to such violation. Except in the case of an | 2 | | action taken pursuant to a
violation of Section 6-3, 6-5, | 3 | | or 6-9, any action by the State Commission to
suspend or | 4 | | revoke a licensee's license may be limited to the license | 5 | | for the
specific premises where the violation occurred.
An | 6 | | action for a violation of this Act shall be commenced by | 7 | | the State Commission within 2 years after the date the | 8 | | State Commission becomes aware of the violation.
| 9 | | In lieu of suspending or revoking a license, the | 10 | | commission may impose
a fine, upon the State commission's | 11 | | determination and notice after hearing,
that a licensee has | 12 | | violated any provision of this Act or any rule or
| 13 | | regulation issued pursuant thereto and in effect for 30 | 14 | | days prior to such
violation. | 15 | | For the purpose of this paragraph (1), when determining | 16 | | multiple violations for the sale of alcohol to a person | 17 | | under the age of 21, a second or subsequent violation for | 18 | | the sale of alcohol to a person under the age of 21 shall | 19 | | only be considered if it was committed within 5 years after | 20 | | the date when a prior violation for the sale of alcohol to | 21 | | a person under the age of 21 was committed. | 22 | | The fine imposed under this paragraph may not exceed | 23 | | $500 for each
violation. Each day that the activity, which | 24 | | gave rise to the original fine,
continues is a separate | 25 | | violation. The maximum fine that may be levied against
any | 26 | | licensee, for the period of the license, shall not exceed |
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| 1 | | $20,000.
The maximum penalty that may be imposed on a | 2 | | licensee for selling a bottle of
alcoholic liquor with a | 3 | | foreign object in it or serving from a bottle of
alcoholic | 4 | | liquor with a foreign object in it shall be the destruction | 5 | | of that
bottle of alcoholic liquor for the first 10 bottles | 6 | | so sold or served from by
the licensee. For the eleventh | 7 | | bottle of alcoholic liquor and for each third
bottle | 8 | | thereafter sold or served from by the licensee with a | 9 | | foreign object in
it, the maximum penalty that may be | 10 | | imposed on the licensee is the destruction
of the bottle of | 11 | | alcoholic liquor and a fine of up to $50.
| 12 | | Any notice issued by the State Commission to a licensee | 13 | | for a violation of this Act or any notice with respect to | 14 | | settlement or offer in compromise shall include the field | 15 | | report, photographs, and any other supporting | 16 | | documentation necessary to reasonably inform the licensee | 17 | | of the nature and extent of the violation or the conduct | 18 | | alleged to have occurred. The failure to include such | 19 | | required documentation shall result in the dismissal of the | 20 | | action. | 21 | | (2) To adopt such rules and regulations consistent with | 22 | | the
provisions of this Act which shall be necessary to | 23 | | carry on its
functions and duties to the end that the | 24 | | health, safety and welfare of
the People of the State of | 25 | | Illinois shall be protected and temperance in
the | 26 | | consumption of alcoholic liquors shall be fostered and |
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| 1 | | promoted and
to distribute copies of such rules and | 2 | | regulations to all licensees
affected thereby.
| 3 | | (3) To call upon other administrative departments of | 4 | | the State,
county and municipal governments, county and | 5 | | city police departments and
upon prosecuting officers for | 6 | | such information and assistance as it
deems necessary in | 7 | | the performance of its duties.
| 8 | | (4) To recommend to local commissioners rules and | 9 | | regulations, not
inconsistent with the law, for the | 10 | | distribution and sale of alcoholic
liquors throughout the | 11 | | State.
| 12 | | (5) To inspect, or cause to be inspected, any
premises | 13 | | in this State
where alcoholic liquors are manufactured, | 14 | | distributed, warehoused, or
sold. Nothing in this Act
| 15 | | authorizes an agent of the Commission to inspect private
| 16 | | areas within the premises without reasonable suspicion or a | 17 | | warrant
during an inspection. "Private areas" include, but | 18 | | are not limited to, safes, personal property, and closed | 19 | | desks.
| 20 | | (5.1) Upon receipt of a complaint or upon having | 21 | | knowledge that any person
is engaged in business as a | 22 | | manufacturer, importing distributor, distributor,
or | 23 | | retailer without a license or valid license, to notify the | 24 | | local liquor
authority, file a complaint with the State's | 25 | | Attorney's Office of the county
where the incident | 26 | | occurred, or initiate an investigation with the |
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| 1 | | appropriate
law enforcement officials.
| 2 | | (5.2) To issue a cease and desist notice to persons | 3 | | shipping alcoholic
liquor
into this State from a point | 4 | | outside of this State if the shipment is in
violation of | 5 | | this Act.
| 6 | | (5.3) To receive complaints from licensees, local | 7 | | officials, law
enforcement agencies, organizations, and | 8 | | persons stating that any licensee has
been or is violating | 9 | | any provision of this Act or the rules and regulations
| 10 | | issued pursuant to this Act. Such complaints shall be in | 11 | | writing, signed and
sworn to by the person making the | 12 | | complaint, and shall state with specificity
the facts in | 13 | | relation to the alleged violation. If the Commission has
| 14 | | reasonable grounds to believe that the complaint | 15 | | substantially alleges a
violation of this Act or rules and | 16 | | regulations adopted pursuant to this Act, it
shall conduct | 17 | | an investigation. If, after conducting an investigation, | 18 | | the
Commission is satisfied that the alleged violation did | 19 | | occur, it shall proceed
with disciplinary action against | 20 | | the licensee as provided in this Act.
| 21 | | (6) To hear and determine appeals from orders of a | 22 | | local commission
in accordance with the provisions of this | 23 | | Act, as hereinafter set forth.
Hearings under this | 24 | | subsection shall be held in Springfield or Chicago,
at | 25 | | whichever location is the more convenient for the majority | 26 | | of persons
who are parties to the hearing.
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| 1 | | (7) The commission shall establish uniform systems of | 2 | | accounts to be
kept by all retail licensees having more | 3 | | than 4 employees, and for this
purpose the commission may | 4 | | classify all retail licensees having more
than 4 employees | 5 | | and establish a uniform system of accounts for each
class | 6 | | and prescribe the manner in which such accounts shall be | 7 | | kept.
The commission may also prescribe the forms of | 8 | | accounts to be kept by
all retail licensees having more | 9 | | than 4 employees, including but not
limited to accounts of | 10 | | earnings and expenses and any distribution,
payment, or | 11 | | other distribution of earnings or assets, and any other
| 12 | | forms, records and memoranda which in the judgment of the | 13 | | commission may
be necessary or appropriate to carry out any | 14 | | of the provisions of this
Act, including but not limited to | 15 | | such forms, records and memoranda as
will readily and | 16 | | accurately disclose at all times the beneficial
ownership | 17 | | of such retail licensed business. The accounts, forms,
| 18 | | records and memoranda shall be available at all reasonable | 19 | | times for
inspection by authorized representatives of the | 20 | | State commission or by
any local liquor control | 21 | | commissioner or his or her authorized representative.
The | 22 | | commission, may, from time to time, alter, amend or repeal, | 23 | | in whole
or in part, any uniform system of accounts, or the | 24 | | form and manner of
keeping accounts.
| 25 | | (8) In the conduct of any hearing authorized to be held | 26 | | by the
commission, to appoint, at the commission's |
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| 1 | | discretion, hearing officers
to conduct hearings involving | 2 | | complex issues or issues that will require a
protracted | 3 | | period of time to resolve, to examine, or cause to be | 4 | | examined,
under oath, any licensee, and to examine or cause | 5 | | to be examined the books and
records
of such licensee; to | 6 | | hear testimony and take proof material for its
information | 7 | | in the discharge of its duties hereunder; to administer or
| 8 | | cause to be administered oaths; for any such purpose to | 9 | | issue
subpoena or subpoenas to require the attendance of | 10 | | witnesses and the
production of books, which shall be | 11 | | effective in any part of this State, and
to adopt rules to | 12 | | implement its powers under this paragraph (8).
| 13 | | Any Circuit Court may by order duly entered,
require | 14 | | the attendance of witnesses and the production of relevant | 15 | | books
subpoenaed by the State commission and the court may | 16 | | compel
obedience to its order by proceedings for contempt.
| 17 | | (9) To investigate the administration of laws in | 18 | | relation to
alcoholic liquors in this and other states and | 19 | | any foreign countries,
and to recommend from time to time | 20 | | to the Governor and through him or
her to the legislature | 21 | | of this State, such amendments to this Act, if any, as
it | 22 | | may think desirable and as will serve to further the | 23 | | general broad
purposes contained in Section 1-2 hereof.
| 24 | | (10) To adopt such rules and regulations consistent | 25 | | with the
provisions of this Act which shall be necessary | 26 | | for the control, sale or
disposition of alcoholic liquor |
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| 1 | | damaged as a result of an accident, wreck,
flood, fire or | 2 | | other similar occurrence.
| 3 | | (11) To develop industry educational programs related | 4 | | to responsible
serving and selling, particularly in the | 5 | | areas of overserving consumers and
illegal underage | 6 | | purchasing and consumption of alcoholic beverages.
| 7 | | (11.1) To license persons providing education and | 8 | | training to alcohol
beverage sellers and servers for | 9 | | mandatory and non-mandatory training under the
Beverage | 10 | | Alcohol Sellers and Servers
Education and Training | 11 | | (BASSET) programs and to develop and administer a public
| 12 | | awareness program in Illinois to reduce or eliminate the | 13 | | illegal purchase and
consumption of alcoholic beverage | 14 | | products by persons under the age of 21.
Application for a | 15 | | license shall be made on forms provided by the State
| 16 | | Commission.
| 17 | | (12) To develop and maintain a repository of license | 18 | | and regulatory
information.
| 19 | | (13) On or before January 15, 1994, the Commission | 20 | | shall issue
a written report to the Governor and General | 21 | | Assembly that is to be based on a
comprehensive study of | 22 | | the impact on and implications for the State of Illinois
of | 23 | | Section 1926 of the federal ADAMHA Reorganization Act of | 24 | | 1992 (Public Law
102-321). This study shall address the | 25 | | extent to which Illinois currently
complies with the | 26 | | provisions of P.L. 102-321 and the rules promulgated |
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| 1 | | pursuant
thereto.
| 2 | | As part of its report, the Commission shall provide the | 3 | | following essential
information:
| 4 | | (i) the number of retail distributors of tobacco | 5 | | products, by type and
geographic area, in the State;
| 6 | | (ii) the number of reported citations and | 7 | | successful convictions,
categorized by type and | 8 | | location of retail distributor, for violation of the
| 9 | | Prevention of Tobacco Use by Minors and Sale and | 10 | | Distribution of Tobacco Products Act and the Smokeless
| 11 | | Tobacco Limitation Act;
| 12 | | (iii) the extent and nature of organized | 13 | | educational and governmental
activities that are | 14 | | intended to promote, encourage or otherwise secure
| 15 | | compliance with any Illinois laws that prohibit the | 16 | | sale or distribution of
tobacco products to minors; and
| 17 | | (iv) the level of access and availability of | 18 | | tobacco products to
individuals under the age of 18.
| 19 | | To obtain the data necessary to comply with the | 20 | | provisions of P.L. 102-321
and the requirements of this | 21 | | report, the Commission shall conduct random,
unannounced | 22 | | inspections of a geographically and scientifically | 23 | | representative
sample of the State's retail tobacco | 24 | | distributors.
| 25 | | The Commission shall consult with the Department of | 26 | | Public Health, the
Department of Human Services, the
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| 1 | | Illinois State Police and any
other executive branch | 2 | | agency, and private organizations that may have
| 3 | | information relevant to this report.
| 4 | | The Commission may contract with the Food and Drug | 5 | | Administration of the
U.S. Department of Health and Human | 6 | | Services to conduct unannounced
investigations of Illinois | 7 | | tobacco vendors to determine compliance with federal
laws | 8 | | relating to the illegal sale of cigarettes and smokeless | 9 | | tobacco products
to persons under the age of 18.
| 10 | | (14) On or before April 30, 2008 and every 2 years
| 11 | | thereafter, the Commission shall present a written
report | 12 | | to the Governor and the General Assembly that shall
be | 13 | | based on a study of the impact of Public Act 95-634 on the | 14 | | business of soliciting,
selling, and shipping wine from | 15 | | inside and outside of this
State directly to residents of | 16 | | this State. As part of its
report, the Commission shall | 17 | | provide all of the
following information: | 18 | | (A) The amount of State excise and sales tax
| 19 | | revenues generated. | 20 | | (B) The amount of licensing fees received. | 21 | | (C) The number of cases of wine shipped from inside
| 22 | | and outside of this State directly to residents of this
| 23 | | State. | 24 | | (D) The number of alcohol compliance operations
| 25 | | conducted. | 26 | | (E) The number of winery shipper's licenses
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| 1 | | issued. | 2 | | (F) The number of each of the following: reported
| 3 | | violations; cease and desist notices issued by the
| 4 | | Commission; notices of violations issued by
the | 5 | | Commission and to the Department of Revenue;
and | 6 | | notices and complaints of violations to law
| 7 | | enforcement officials, including, without limitation,
| 8 | | the Illinois Attorney General and the U.S. Department
| 9 | | of Treasury's Alcohol and Tobacco Tax and Trade Bureau. | 10 | | (15) As a means to reduce the underage consumption of
| 11 | | alcoholic liquors, the Commission shall conduct
alcohol | 12 | | compliance operations to investigate whether
businesses | 13 | | that are soliciting, selling, and shipping wine
from inside | 14 | | or outside of this State directly to residents
of this | 15 | | State are licensed by this State or are selling or
| 16 | | attempting to sell wine to persons under 21 years of age in
| 17 | | violation of this Act. | 18 | | (16) The Commission shall, in addition to
notifying any | 19 | | appropriate law enforcement agency, submit
notices of | 20 | | complaints or violations of Sections 6-29 and
6-29.1 by | 21 | | persons who do not hold a winery shipper's
license under | 22 | | this Act to the Illinois Attorney General and
to the U.S. | 23 | | Department of Treasury's Alcohol and Tobacco Tax and Trade | 24 | | Bureau. | 25 | | (17)(A) A person licensed to make wine under the laws | 26 | | of another state who has a winery shipper's license under |
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| 1 | | this Act and annually produces less than 25,000 gallons of | 2 | | wine or a person who has a first-class or second-class wine | 3 | | manufacturer's license, a first-class or second-class | 4 | | wine-maker's license, or a limited wine manufacturer's | 5 | | license under this Act and annually produces less than | 6 | | 25,000 gallons of wine may make application to the | 7 | | Commission for a self-distribution exemption to allow the | 8 | | sale of not more than 5,000 gallons of the exemption | 9 | | holder's wine to retail licensees per year. | 10 | | (B) In the application, which shall be sworn under | 11 | | penalty of perjury, such person shall state (1) the date it | 12 | | was established; (2) its volume of production and sales for | 13 | | each year since its establishment; (3) its efforts to | 14 | | establish distributor relationships; (4) that a | 15 | | self-distribution exemption is necessary to facilitate the | 16 | | marketing of its wine; and (5) that it will comply with the | 17 | | liquor and revenue laws of the United States, this State, | 18 | | and any other state where it is licensed. | 19 | | (C) The Commission shall approve the application for a | 20 | | self-distribution exemption if such person: (1) is in | 21 | | compliance with State revenue and liquor laws; (2) is not a | 22 | | member of any affiliated group that produces more than | 23 | | 25,000 gallons of wine per annum or produces any other | 24 | | alcoholic liquor; (3) will not annually produce for sale | 25 | | more than 25,000 gallons of wine; and (4) will not annually | 26 | | sell more than 5,000 gallons of its wine to retail |
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| 1 | | licensees. | 2 | | (D) A self-distribution exemption holder shall | 3 | | annually certify to the Commission its production of wine | 4 | | in the previous 12 months and its anticipated production | 5 | | and sales for the next 12 months. The Commission may fine, | 6 | | suspend, or revoke a self-distribution exemption after a | 7 | | hearing if it finds that the exemption holder has made a | 8 | | material misrepresentation in its application, violated a | 9 | | revenue or liquor law of Illinois, exceeded production of | 10 | | 25,000 gallons of wine in any calendar year, or become part | 11 | | of an affiliated group producing more than 25,000 gallons | 12 | | of wine or any other alcoholic liquor. | 13 | | (E) Except in hearings for violations of this Act or | 14 | | Public Act 95-634 or a bona fide investigation by duly | 15 | | sworn law enforcement officials, the Commission, or its | 16 | | agents, the Commission shall maintain the production and | 17 | | sales information of a self-distribution exemption holder | 18 | | as confidential and shall not release such information to | 19 | | any person. | 20 | | (F) The Commission shall issue regulations governing | 21 | | self-distribution exemptions consistent with this Section | 22 | | and this Act. | 23 | | (G) Nothing in this subsection (17) shall prohibit a | 24 | | self-distribution exemption holder from entering into or | 25 | | simultaneously having a distribution agreement with a | 26 | | licensed Illinois distributor. |
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| 1 | | (H) It is the intent of this subsection (17) to promote | 2 | | and continue orderly markets. The General Assembly finds | 3 | | that in order to preserve Illinois' regulatory | 4 | | distribution system it is necessary to create an exception | 5 | | for smaller makers of wine as their wines are frequently | 6 | | adjusted in varietals, mixes, vintages, and taste to find | 7 | | and create market niches sometimes too small for | 8 | | distributor or importing distributor business strategies. | 9 | | Limited self-distribution rights will afford and allow | 10 | | smaller makers of wine access to the marketplace in order | 11 | | to develop a customer base without impairing the integrity | 12 | | of the 3-tier system.
| 13 | | (18)(A) A class 1 brewer licensee, who must also be | 14 | | either a licensed brewer or licensed non-resident dealer | 15 | | and annually manufacture less than 930,000 gallons of beer, | 16 | | may make application to the State Commission for a | 17 | | self-distribution exemption to allow the sale of not more | 18 | | than 232,500 gallons of the exemption holder's beer to | 19 | | retail licensees per year. | 20 | | (B) In the application, which shall be sworn under | 21 | | penalty of perjury, the class 1 brewer licensee shall state | 22 | | (1) the date it was established; (2) its volume of beer | 23 | | manufactured and sold for each year since its | 24 | | establishment; (3) its efforts to establish distributor | 25 | | relationships; (4) that a self-distribution exemption is | 26 | | necessary to facilitate the marketing of its beer; and (5) |
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| 1 | | that it will comply with the alcoholic beverage and revenue | 2 | | laws of the United States, this State, and any other state | 3 | | where it is licensed. | 4 | | (C) Any application submitted shall be posted on the | 5 | | State Commission's website at least 45 days prior to action | 6 | | by the State Commission. The State Commission shall approve | 7 | | the application for a self-distribution exemption if the | 8 | | class 1 brewer licensee: (1) is in compliance with the | 9 | | State, revenue, and alcoholic beverage laws; (2) is not a | 10 | | member of any affiliated group that manufactures more than | 11 | | 930,000 gallons of beer per annum or produces any other | 12 | | alcoholic beverages; (3) shall not annually manufacture | 13 | | for sale more than 930,000 gallons of beer; (4) shall not | 14 | | annually sell more than 232,500 gallons of its beer to | 15 | | retail licensees; and (5) has relinquished any brew pub | 16 | | license held by the licensee, including any ownership | 17 | | interest it held in the licensed brew pub. | 18 | | (D) A self-distribution exemption holder shall | 19 | | annually certify to the State Commission its manufacture of | 20 | | beer during the previous 12 months and its anticipated | 21 | | manufacture and sales of beer for the next 12 months. The | 22 | | State Commission may fine, suspend, or revoke a | 23 | | self-distribution exemption after a hearing if it finds | 24 | | that the exemption holder has made a material | 25 | | misrepresentation in its application, violated a revenue | 26 | | or alcoholic beverage law of Illinois, exceeded the |
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| 1 | | manufacture of 930,000 gallons of beer in any calendar year | 2 | | or became part of an affiliated group manufacturing more | 3 | | than 930,000 gallons of beer or any other alcoholic | 4 | | beverage. | 5 | | (E) The State Commission shall issue rules and | 6 | | regulations governing self-distribution exemptions | 7 | | consistent with this Act. | 8 | | (F) Nothing in this paragraph (18) shall prohibit a | 9 | | self-distribution exemption holder from entering into or | 10 | | simultaneously having a distribution agreement with a | 11 | | licensed Illinois importing distributor or a distributor. | 12 | | If a self-distribution exemption holder enters into a | 13 | | distribution agreement and has assigned distribution | 14 | | rights to an importing distributor or distributor, then the | 15 | | self-distribution exemption holder's distribution rights | 16 | | in the assigned territories shall cease in a reasonable | 17 | | time not to exceed 60 days. | 18 | | (G) It is the intent of this paragraph (18) to promote | 19 | | and continue orderly markets. The General Assembly finds | 20 | | that in order to preserve Illinois' regulatory | 21 | | distribution system, it is necessary to create an exception | 22 | | for smaller manufacturers in order to afford and allow such | 23 | | smaller manufacturers of beer access to the marketplace in | 24 | | order to develop a customer base without impairing the | 25 | | integrity of the 3-tier system. | 26 | | (b) On or before April 30, 1999, the Commission shall |
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| 1 | | present a written
report to the Governor and the General | 2 | | Assembly that shall be based on a study
of the impact of Public | 3 | | Act 90-739 on the business of soliciting,
selling, and shipping
| 4 | | alcoholic liquor from outside of this State directly to | 5 | | residents of this
State.
| 6 | | As part of its report, the Commission shall provide the | 7 | | following
information:
| 8 | | (i) the amount of State excise and sales tax revenues | 9 | | generated as a
result of Public Act 90-739;
| 10 | | (ii) the amount of licensing fees received as a result | 11 | | of Public Act 90-739;
| 12 | | (iii) the number of reported violations, the number of | 13 | | cease and desist
notices issued by the Commission, the | 14 | | number of notices of violations issued
to the Department of | 15 | | Revenue, and the number of notices and complaints of
| 16 | | violations to law enforcement officials.
| 17 | | (Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15; | 18 | | 100-134, eff. 8-18-17; 100-201, eff. 8-18-17.) | 19 | | (235 ILCS 5/3-20 new) | 20 | | Sec. 3-20. State Commission; separation from the | 21 | | Department of Revenue. | 22 | | (a) Executive Order No. 2003-9 is hereby superseded by this | 23 | | amendatory Act of the 100th General Assembly to the extent that | 24 | | Executive Order No. 2003-9 transferred clerks, management and | 25 | | staff support, employees, and other resources from the State |
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| 1 | | Commission to the Department of Revenue. | 2 | | (b) To the extent that Executive Order No. 2003-9 | 3 | | transferred personnel and the Executive Director to the | 4 | | Department of Revenue from the State Commission, those | 5 | | personnel and the Executive Director shall be transferred to | 6 | | the State Commission. The status and rights of such employees | 7 | | under the Personnel Code shall not be affected by the transfer. | 8 | | The status and rights of the
employees and the State of | 9 | | Illinois and its agencies under the
Personnel Code, the | 10 | | Illinois Public Labor Relations Act, and
applicable collective | 11 | | bargaining agreements or under any pension, retirement, or | 12 | | annuity plan shall not be affected by this amendatory Act of | 13 | | the 100th General Assembly. To the extent that an employee | 14 | | performs duties for the State Commission and the Department of | 15 | | Revenue itself or any other division or agency within the | 16 | | Department of Revenue, that employee shall be transferred at | 17 | | the Governor's discretion. | 18 | | (c) All books, records, papers, documents, property (real | 19 | | and personal), contracts, causes of action, and pending | 20 | | business pertaining to the powers, duties, rights, and | 21 | | responsibilities transferred by this amendatory Act of the | 22 | | 100th General Assembly from the Department of Revenue to the | 23 | | State Commission, including, but not limited to, material in | 24 | | electronic or magnetic format and necessary computer hardware | 25 | | and software, shall be transferred to the State Commission. | 26 | | (d) All unexpended appropriations and balances and other |
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| 1 | | funds available for use by the Department of Revenue to operate | 2 | | the State Commission shall be transferred for use by the State | 3 | | Commission. Unexpended balances so transferred shall be | 4 | | expended only for the purpose for which the appropriations were | 5 | | originally made. | 6 | | (e) The powers, duties, rights, and responsibilities | 7 | | transferred from the Department of Revenue by this amendatory | 8 | | Act of the 100th General Assembly shall be vested in and shall | 9 | | be exercised by the State Commission. | 10 | | (f) Whenever reports or notices are now required to be made | 11 | | or given or papers or documents furnished or served by any | 12 | | person to or upon the Department of Revenue in connection with | 13 | | any of the powers, duties, rights, and responsibilities | 14 | | transferred by this amendatory Act of the 100th General | 15 | | Assembly, the same shall be made, given, furnished, or served | 16 | | in the same manner to or upon the State Commission. | 17 | | (g) Any rules of the Department of Revenue that relate to | 18 | | the functions transferred from the State Commission to the | 19 | | Department of Revenue by Executive Order No. 2003-9 that are in | 20 | | full force on the effective date of this amendatory Act of the | 21 | | 100th General Assembly shall become the rules of the State | 22 | | Commission. This amendatory Act of the 100th General Assembly | 23 | | does not affect the legality of any such rules in the Illinois | 24 | | Administrative Code. | 25 | | Any proposed rules filed with the Secretary of State by the | 26 | | Department of Revenue that are pending in the rulemaking |
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| 1 | | process on the effective date of this amendatory Act of the | 2 | | 100th General Assembly and pertain to the functions transferred | 3 | | from the State Commission to the Department of Revenue by | 4 | | Executive Order No. 2003-9 shall be deemed to have been filed | 5 | | by the State Commission. As soon as practicable hereafter, the | 6 | | State Commission shall revise and clarify the rules transferred | 7 | | to it under this amendatory Act of the 100th General Assembly | 8 | | to reflect the reorganization of powers, duties, rights, and | 9 | | responsibilities affected by this amendatory Act of the 100th | 10 | | General Assembly, using the procedures for recodification of | 11 | | rules available under the Illinois Administrative Procedure | 12 | | Act, except that existing title, part, and section numbering | 13 | | for the affected rules may be retained. | 14 | | (235 ILCS 5/5-1) (from Ch. 43, par. 115) | 15 | | Sec. 5-1. Licenses issued by the Illinois Liquor Control | 16 | | Commission
shall be of the following classes: | 17 | | (a) Manufacturer's license - Class 1.
Distiller, Class 2. | 18 | | Rectifier, Class 3. Brewer, Class 4. First Class Wine
| 19 | | Manufacturer, Class 5. Second Class Wine Manufacturer,
Class 6. | 20 | | First Class Winemaker, Class 7. Second Class Winemaker, Class | 21 | | 8.
Limited Wine Manufacturer, Class 9. Craft Distiller, Class | 22 | | 10. Class 1 Brewer, Class 11. Class 2 Brewer, | 23 | | (b) Distributor's license, | 24 | | (c) Importing Distributor's license, | 25 | | (d) Retailer's license, |
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| 1 | | (e) Special Event Retailer's license (not-for-profit), | 2 | | (f) Railroad license, | 3 | | (g) Boat license, | 4 | | (h) Non-Beverage User's license, | 5 | | (i) Wine-maker's premises license, | 6 | | (j) Airplane license, | 7 | | (k) Foreign importer's license, | 8 | | (l) Broker's license, | 9 | | (m) Non-resident dealer's
license, | 10 | | (n) Brew Pub license, | 11 | | (o) Auction liquor license, | 12 | | (p) Caterer retailer license, | 13 | | (q) Special use permit license, | 14 | | (r) Winery shipper's license, | 15 | | (s) Craft distiller tasting permit. | 16 | | No
person, firm, partnership, corporation, or other legal | 17 | | business entity that is
engaged in the manufacturing of wine | 18 | | may concurrently obtain and hold a
wine-maker's license and a | 19 | | wine manufacturer's license. | 20 | | (a) A manufacturer's license shall allow the manufacture,
| 21 | | importation in bulk, storage, distribution and sale of | 22 | | alcoholic liquor
to persons without the State, as may be | 23 | | permitted by law and to licensees
in this State as follows: | 24 | | Class 1. A Distiller may make sales and deliveries of | 25 | | alcoholic liquor to
distillers, rectifiers, importing | 26 | | distributors, distributors and
non-beverage users and to no |
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| 1 | | other licensees. | 2 | | Class 2. A Rectifier, who is not a distiller, as defined | 3 | | herein, may make
sales and deliveries of alcoholic liquor to | 4 | | rectifiers, importing distributors,
distributors, retailers | 5 | | and non-beverage users and to no other licensees. | 6 | | Class 3. A Brewer may make sales and deliveries of beer to | 7 | | importing
distributors and distributors and may make sales as | 8 | | authorized under subsection (e) of Section 6-4 of this Act. | 9 | | Class 4. A first class wine-manufacturer may make sales and | 10 | | deliveries of
up to 50,000 gallons of wine to manufacturers,
| 11 | | importing
distributors and distributors, and to no other | 12 | | licensees. | 13 | | Class 5. A second class Wine manufacturer may make sales | 14 | | and deliveries
of more than 50,000 gallons of wine to | 15 | | manufacturers, importing distributors
and distributors and to | 16 | | no other licensees. | 17 | | Class 6. A first-class wine-maker's license shall allow the | 18 | | manufacture
of up to 50,000 gallons of wine per year, and the
| 19 | | storage
and sale of such
wine to distributors in the State and | 20 | | to persons without the
State, as may be permitted by law. A | 21 | | person who, prior to June 1, 2008 (the effective date of Public | 22 | | Act 95-634), is a holder of a first-class wine-maker's license | 23 | | and annually produces more than 25,000 gallons of its own wine | 24 | | and who distributes its wine to licensed retailers shall cease | 25 | | this practice on or before July 1, 2008 in compliance with | 26 | | Public Act 95-634. |
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| 1 | | Class 7. A second-class wine-maker's license shall allow | 2 | | the manufacture
of between 50,000 and 150,000 gallons of wine | 3 | | per year, and
the
storage and sale of such wine
to distributors | 4 | | in this State and to persons without the State, as may be
| 5 | | permitted by law. A person who, prior to June 1, 2008 (the | 6 | | effective date of Public Act 95-634), is a holder of a | 7 | | second-class wine-maker's license and annually produces more | 8 | | than 25,000 gallons of its own wine and who distributes its | 9 | | wine to licensed retailers shall cease this practice on or | 10 | | before July 1, 2008 in compliance with Public Act 95-634. | 11 | | Class 8. A limited wine-manufacturer may make sales and | 12 | | deliveries not to
exceed 40,000 gallons of wine per year to | 13 | | distributors, and to
non-licensees in accordance with the | 14 | | provisions of this Act. | 15 | | Class 9. A craft distiller license shall allow the | 16 | | manufacture of up to 100,000 gallons of spirits by distillation | 17 | | per year and the storage of such spirits. If a craft distiller | 18 | | licensee, including a craft distiller licensee who holds more | 19 | | than one craft distiller license, is not affiliated with any | 20 | | other manufacturer of spirits, then the craft distiller | 21 | | licensee may sell such spirits to distributors in this State | 22 | | and up to 2,500 gallons of such spirits to non-licensees to the | 23 | | extent permitted by any exemption approved by the Commission | 24 | | pursuant to Section 6-4 of this Act. A craft distiller license | 25 | | holder may store such spirits at a non-contiguous licensed | 26 | | location, but at no time shall a craft distiller license holder |
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| 1 | | directly or indirectly produce in the aggregate more than | 2 | | 100,000 gallons of spirits per year. | 3 | | A craft distiller licensee may hold more than one craft | 4 | | distiller's license. However, a craft distiller that holds more | 5 | | than one craft distiller license shall not manufacture, in the | 6 | | aggregate, more than 100,000 gallons of spirits by distillation | 7 | | per year and shall not sell, in the aggregate, more than 2,500 | 8 | | gallons of such spirits to non-licensees in accordance with an | 9 | | exemption approved by the State Commission pursuant to Section | 10 | | 6-4 of this Act. | 11 | | Any craft distiller licensed under this Act who on July 28, | 12 | | 2010 (the effective date of Public Act 96-1367) was licensed as | 13 | | a distiller and manufactured no more spirits than permitted by | 14 | | this Section shall not be required to pay the initial licensing | 15 | | fee. | 16 | | Class 10. A class 1 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 930,000 gallons of beer | 19 | | per year provided that the class 1 brewer licensee does not | 20 | | manufacture more than a combined 930,000 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 930,000 | 23 | | gallons of beer per year or any other alcoholic liquor. A class | 24 | | 1 brewer licensee may make sales and deliveries to importing | 25 | | distributors and distributors and to retail licensees in | 26 | | accordance with the conditions set forth in paragraph (18) of |
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| 1 | | subsection (a) of Section 3-12 of this Act. | 2 | | Class 11. A class 2 brewer license, which may only be | 3 | | issued to a licensed brewer or licensed non-resident dealer, | 4 | | shall allow the manufacture of up to 3,720,000 gallons of beer | 5 | | per year provided that the class 2 brewer licensee does not | 6 | | manufacture more than a combined 3,720,000 gallons of beer per | 7 | | year and is not a member of or affiliated with, directly or | 8 | | indirectly, a manufacturer that produces more than 3,720,000 | 9 | | gallons of beer per year or any other alcoholic liquor. A class | 10 | | 2 brewer licensee may make sales and deliveries to importing | 11 | | distributors and distributors, but shall not make sales or | 12 | | deliveries to any other licensee. If the State Commission | 13 | | provides prior approval, a class 2 brewer licensee may annually | 14 | | transfer up to 3,720,000 gallons of beer manufactured by that | 15 | | class 2 brewer licensee to the premises of a licensed class 2 | 16 | | brewer wholly owned and operated by the same licensee. | 17 | | (a-1) A manufacturer which is licensed in this State to | 18 | | make sales or
deliveries of alcoholic liquor to licensed | 19 | | distributors or importing distributors and which enlists | 20 | | agents, representatives, or
individuals acting on its behalf | 21 | | who contact licensed retailers on a regular
and continual basis | 22 | | in this State must register those agents, representatives,
or | 23 | | persons acting on its behalf with the State Commission. | 24 | | Registration of agents, representatives, or persons acting | 25 | | on behalf of a
manufacturer is fulfilled by submitting a form | 26 | | to the Commission. The form
shall be developed by the |
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| 1 | | Commission and shall include the name and address of
the | 2 | | applicant, the name and address of the manufacturer he or she | 3 | | represents,
the territory or areas assigned to sell to or | 4 | | discuss pricing terms of
alcoholic liquor, and any other | 5 | | questions deemed appropriate and necessary.
All statements in | 6 | | the forms required to be made by law or by rule shall be
deemed | 7 | | material, and any person who knowingly misstates any material | 8 | | fact under
oath in an application is guilty of a Class B | 9 | | misdemeanor. Fraud,
misrepresentation, false statements, | 10 | | misleading statements, evasions, or
suppression of material | 11 | | facts in the securing of a registration are grounds for
| 12 | | suspension or revocation of the registration. The State | 13 | | Commission shall post a list of registered agents on the | 14 | | Commission's website. | 15 | | (b) A distributor's license shall allow the wholesale | 16 | | purchase and storage
of alcoholic liquors and sale of alcoholic | 17 | | liquors to licensees
in this State and to persons without the | 18 | | State, as may be permitted by law. No person licensed as a | 19 | | distributor shall be granted a non-resident dealer's license. | 20 | | (c) An importing distributor's license may be issued to and | 21 | | held by
those only who are duly licensed distributors, upon the | 22 | | filing of an
application by a duly licensed distributor, with | 23 | | the Commission and
the Commission shall, without the
payment of | 24 | | any fee, immediately issue such importing distributor's
| 25 | | license to the applicant, which shall allow the importation of | 26 | | alcoholic
liquor by the licensee into this State from any point |
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| 1 | | in the United
States outside this State, and the purchase of | 2 | | alcoholic liquor in
barrels, casks or other bulk containers and | 3 | | the bottling of such
alcoholic liquors before resale thereof, | 4 | | but all bottles or containers
so filled shall be sealed, | 5 | | labeled, stamped and otherwise made to comply
with all | 6 | | provisions, rules and regulations governing manufacturers in
| 7 | | the preparation and bottling of alcoholic liquors. The | 8 | | importing
distributor's license shall permit such licensee to | 9 | | purchase alcoholic
liquor from Illinois licensed non-resident | 10 | | dealers and foreign importers only. No person licensed as an | 11 | | importing distributor shall be granted a non-resident dealer's | 12 | | license. | 13 | | (d) A retailer's license shall allow the licensee to sell | 14 | | and offer
for sale at retail, only in the premises specified in | 15 | | the license,
alcoholic liquor for use or consumption, but not | 16 | | for resale in any form. Nothing in Public Act 95-634 shall | 17 | | deny, limit, remove, or restrict the ability of a holder of a | 18 | | retailer's license to transfer, deliver, or ship alcoholic | 19 | | liquor to the purchaser for use or consumption subject to any | 20 | | applicable local law or ordinance. Any retail license issued to | 21 | | a manufacturer shall only
permit the manufacturer to sell beer | 22 | | at retail on the premises actually
occupied by the | 23 | | manufacturer. For the purpose of further describing the type of | 24 | | business conducted at a retail licensed premises, a retailer's | 25 | | licensee may be designated by the State Commission as (i) an on | 26 | | premise consumption retailer, (ii) an off premise sale |
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| 1 | | retailer, or (iii) a combined on premise consumption and off | 2 | | premise sale retailer.
| 3 | | Notwithstanding any other provision of this subsection | 4 | | (d), a retail
licensee may sell alcoholic liquors to a special | 5 | | event retailer licensee for
resale to the extent permitted | 6 | | under subsection (e). | 7 | | (e) A special event retailer's license (not-for-profit) | 8 | | shall permit the
licensee to purchase alcoholic liquors from an | 9 | | Illinois licensed distributor
(unless the licensee purchases | 10 | | less than $500 of alcoholic liquors for the
special event, in | 11 | | which case the licensee may purchase the alcoholic liquors
from | 12 | | a licensed retailer) and shall allow the licensee to sell and | 13 | | offer for
sale, at retail, alcoholic liquors for use or | 14 | | consumption, but not for resale
in any form and only at the | 15 | | location and on the specific dates designated for
the special | 16 | | event in the license. An applicant for a special event retailer
| 17 | | license must
(i) furnish with the application: (A) a resale | 18 | | number issued under Section
2c of the Retailers' Occupation Tax | 19 | | Act or evidence that the applicant is
registered under Section | 20 | | 2a of the Retailers' Occupation Tax Act, (B) a
current, valid | 21 | | exemption identification
number issued under Section 1g of the | 22 | | Retailers' Occupation Tax Act, and a
certification to the | 23 | | Commission that the purchase of alcoholic liquors will be
a | 24 | | tax-exempt purchase, or (C) a statement that the applicant is | 25 | | not registered
under Section 2a of the Retailers' Occupation | 26 | | Tax Act, does not hold a resale
number under Section 2c of the |
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| 1 | | Retailers' Occupation Tax Act, and does not
hold an exemption | 2 | | number under Section 1g of the Retailers' Occupation Tax
Act, | 3 | | in which event the Commission shall set forth on the special | 4 | | event
retailer's license a statement to that effect; (ii) | 5 | | submit with the application proof satisfactory to
the State | 6 | | Commission that the applicant will provide dram shop liability
| 7 | | insurance in the maximum limits; and (iii) show proof | 8 | | satisfactory to the
State Commission that the applicant has | 9 | | obtained local authority
approval. | 10 | | (f) A railroad license shall permit the licensee to import | 11 | | alcoholic
liquors into this State from any point in the United | 12 | | States outside this
State and to store such alcoholic liquors | 13 | | in this State; to make wholesale
purchases of alcoholic liquors | 14 | | directly from manufacturers, foreign
importers, distributors | 15 | | and importing distributors from within or outside
this State; | 16 | | and to store such alcoholic liquors in this State; provided
| 17 | | that the above powers may be exercised only in connection with | 18 | | the
importation, purchase or storage of alcoholic liquors to be | 19 | | sold or
dispensed on a club, buffet, lounge or dining car | 20 | | operated on an electric,
gas or steam railway in this State; | 21 | | and provided further, that railroad
licensees exercising the | 22 | | above powers shall be subject to all provisions of
Article VIII | 23 | | of this Act as applied to importing distributors. A railroad
| 24 | | license shall also permit the licensee to sell or dispense | 25 | | alcoholic
liquors on any club, buffet, lounge or dining car | 26 | | operated on an electric,
gas or steam railway regularly |
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| 1 | | operated by a common carrier in this State,
but shall not | 2 | | permit the sale for resale of any alcoholic liquors to any
| 3 | | licensee within this State. A license shall be obtained for | 4 | | each car in which
such sales are made. | 5 | | (g) A boat license shall allow the sale of alcoholic liquor | 6 | | in
individual drinks, on any passenger boat regularly operated | 7 | | as a common
carrier on navigable waters in this State or on any | 8 | | riverboat operated
under
the Riverboat Gambling Act, which boat | 9 | | or riverboat maintains a public
dining room or restaurant | 10 | | thereon. | 11 | | (h) A non-beverage user's license shall allow the licensee | 12 | | to
purchase alcoholic liquor from a licensed manufacturer or | 13 | | importing
distributor, without the imposition of any tax upon | 14 | | the business of such
licensed manufacturer or importing | 15 | | distributor as to such alcoholic
liquor to be used by such | 16 | | licensee solely for the non-beverage purposes
set forth in | 17 | | subsection (a) of Section 8-1 of this Act, and
such licenses | 18 | | shall be divided and classified and shall permit the
purchase, | 19 | | possession and use of limited and stated quantities of
| 20 | | alcoholic liquor as follows: | 21 | | Class 1, not to exceed ......................... 500 gallons
| 22 | | Class 2, not to exceed ....................... 1,000 gallons
| 23 | | Class 3, not to exceed ....................... 5,000 gallons
| 24 | | Class 4, not to exceed ...................... 10,000 gallons
| 25 | | Class 5, not to exceed ....................... 50,000 gallons | 26 | | (i) A wine-maker's premises license shall allow a
licensee |
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| 1 | | that concurrently holds a first-class wine-maker's license to | 2 | | sell
and offer for sale at retail in the premises specified in | 3 | | such license
not more than 50,000 gallons of the first-class | 4 | | wine-maker's wine that is
made at the first-class wine-maker's | 5 | | licensed premises per year for use or
consumption, but not for | 6 | | resale in any form. A wine-maker's premises
license shall allow | 7 | | a licensee who concurrently holds a second-class
wine-maker's | 8 | | license to sell and offer for sale at retail in the premises
| 9 | | specified in such license up to 100,000 gallons of the
| 10 | | second-class wine-maker's wine that is made at the second-class | 11 | | wine-maker's
licensed premises per year
for use or consumption | 12 | | but not for resale in any form. A wine-maker's premises license | 13 | | shall allow a
licensee that concurrently holds a first-class | 14 | | wine-maker's license or a second-class
wine-maker's license to | 15 | | sell
and offer for sale at retail at the premises specified in | 16 | | the wine-maker's premises license, for use or consumption but | 17 | | not for resale in any form, any beer, wine, and spirits | 18 | | purchased from a licensed distributor. Upon approval from the
| 19 | | State Commission, a wine-maker's premises license
shall allow | 20 | | the licensee to sell and offer for sale at (i) the wine-maker's
| 21 | | licensed premises and (ii) at up to 2 additional locations for | 22 | | use and
consumption and not for resale. Each location shall | 23 | | require additional
licensing per location as specified in | 24 | | Section 5-3 of this Act. A wine-maker's premises licensee shall
| 25 | | secure liquor liability insurance coverage in an amount at
| 26 | | least equal to the maximum liability amounts set forth in
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| 1 | | subsection (a) of Section 6-21 of this Act.
| 2 | | (j) An airplane license shall permit the licensee to import
| 3 | | alcoholic liquors into this State from any point in the United | 4 | | States
outside this State and to store such alcoholic liquors | 5 | | in this State; to
make wholesale purchases of alcoholic liquors | 6 | | directly from
manufacturers, foreign importers, distributors | 7 | | and importing
distributors from within or outside this State; | 8 | | and to store such
alcoholic liquors in this State; provided | 9 | | that the above powers may be
exercised only in connection with | 10 | | the importation, purchase or storage
of alcoholic liquors to be | 11 | | sold or dispensed on an airplane; and
provided further, that | 12 | | airplane licensees exercising the above powers
shall be subject | 13 | | to all provisions of Article VIII of this Act as
applied to | 14 | | importing distributors. An airplane licensee shall also
permit | 15 | | the sale or dispensing of alcoholic liquors on any passenger
| 16 | | airplane regularly operated by a common carrier in this State, | 17 | | but shall
not permit the sale for resale of any alcoholic | 18 | | liquors to any licensee
within this State. A single airplane | 19 | | license shall be required of an
airline company if liquor | 20 | | service is provided on board aircraft in this
State. The annual | 21 | | fee for such license shall be as determined in
Section 5-3. | 22 | | (k) A foreign importer's license shall permit such licensee | 23 | | to purchase
alcoholic liquor from Illinois licensed | 24 | | non-resident dealers only, and to
import alcoholic liquor other | 25 | | than in bulk from any point outside the
United States and to | 26 | | sell such alcoholic liquor to Illinois licensed
importing |
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| 1 | | distributors and to no one else in Illinois;
provided that (i) | 2 | | the foreign importer registers with the State Commission
every
| 3 | | brand of
alcoholic liquor that it proposes to sell to Illinois | 4 | | licensees during the
license period, (ii) the foreign importer | 5 | | complies with all of the provisions
of Section
6-9 of this Act | 6 | | with respect to registration of such Illinois licensees as may
| 7 | | be granted the
right to sell such brands at wholesale, and | 8 | | (iii) the foreign importer complies with the provisions of | 9 | | Sections 6-5 and 6-6 of this Act to the same extent that these | 10 | | provisions apply to manufacturers. | 11 | | (l) (i) A broker's license shall be required of all persons
| 12 | | who solicit
orders for, offer to sell or offer to supply | 13 | | alcoholic liquor to
retailers in the State of Illinois, or who | 14 | | offer to retailers to ship or
cause to be shipped or to make | 15 | | contact with distillers, rectifiers,
brewers or manufacturers | 16 | | or any other party within or without the State
of Illinois in | 17 | | order that alcoholic liquors be shipped to a distributor,
| 18 | | importing distributor or foreign importer, whether such | 19 | | solicitation or
offer is consummated within or without the | 20 | | State of Illinois. | 21 | | No holder of a retailer's license issued by the Illinois | 22 | | Liquor
Control Commission shall purchase or receive any | 23 | | alcoholic liquor, the
order for which was solicited or offered | 24 | | for sale to such retailer by a
broker unless the broker is the | 25 | | holder of a valid broker's license. | 26 | | The broker shall, upon the acceptance by a retailer of the |
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| 1 | | broker's
solicitation of an order or offer to sell or supply or | 2 | | deliver or have
delivered alcoholic liquors, promptly forward | 3 | | to the Illinois Liquor
Control Commission a notification of | 4 | | said transaction in such form as
the Commission may by | 5 | | regulations prescribe. | 6 | | (ii) A broker's license shall be required of
a person | 7 | | within this State, other than a retail licensee,
who, for a fee | 8 | | or commission, promotes, solicits, or accepts orders for
| 9 | | alcoholic liquor, for use or consumption and not for
resale, to | 10 | | be shipped from this State and delivered to residents outside | 11 | | of
this State by an express company, common carrier, or | 12 | | contract carrier.
This Section does not apply to any person who | 13 | | promotes, solicits, or accepts
orders for wine as specifically | 14 | | authorized in Section 6-29 of this Act. | 15 | | A broker's license under this subsection (l)
shall not | 16 | | entitle the holder to
buy or sell any
alcoholic liquors for his | 17 | | own account or to take or deliver title to
such alcoholic | 18 | | liquors. | 19 | | This subsection (l)
shall not apply to distributors, | 20 | | employees of
distributors, or employees of a manufacturer who | 21 | | has registered the
trademark, brand or name of the alcoholic | 22 | | liquor pursuant to Section 6-9
of this Act, and who regularly | 23 | | sells such alcoholic liquor
in the State of Illinois only to | 24 | | its registrants thereunder. | 25 | | Any agent, representative, or person subject to | 26 | | registration pursuant to
subsection (a-1) of this Section shall |
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| 1 | | not be eligible to receive a broker's
license. | 2 | | (m) A non-resident dealer's license shall permit such | 3 | | licensee to ship
into and warehouse alcoholic liquor into this | 4 | | State from any point
outside of this State, and to sell such | 5 | | alcoholic liquor to Illinois licensed
foreign importers and | 6 | | importing distributors and to no one else in this State;
| 7 | | provided that (i) said non-resident dealer shall register with | 8 | | the Illinois Liquor
Control Commission each and every brand of | 9 | | alcoholic liquor which it proposes
to sell to Illinois | 10 | | licensees during the license period, (ii) it shall comply with | 11 | | all of the provisions of Section 6-9 hereof with
respect to | 12 | | registration of such Illinois licensees as may be granted the | 13 | | right
to sell such brands at wholesale by duly filing such | 14 | | registration statement, thereby authorizing the non-resident | 15 | | dealer to proceed to sell such brands at wholesale , and (iii) | 16 | | the non-resident dealer shall comply with the provisions of | 17 | | Sections 6-5 and 6-6 of this Act to the same extent that these | 18 | | provisions apply to manufacturers. No person licensed as a | 19 | | non-resident dealer shall be granted a distributor's or | 20 | | importing distributor's license. | 21 | | (n) A brew pub license shall allow the licensee to only (i) | 22 | | manufacture up to 155,000 gallons of beer per year only
on the | 23 | | premises specified in the license, (ii) make sales of the
beer | 24 | | manufactured on the premises or, with the approval of the | 25 | | Commission, beer manufactured on another brew pub licensed | 26 | | premises that is wholly owned and operated by the same licensee |
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| 1 | | to importing distributors, distributors,
and to non-licensees | 2 | | for use and consumption, (iii) store the beer upon
the | 3 | | premises, (iv) sell and offer for sale at retail from the | 4 | | licensed
premises for off-premises
consumption no more than | 5 | | 155,000 gallons per year so long as such sales are only made | 6 | | in-person, (v) sell and offer for sale at retail for use and | 7 | | consumption on the premises specified in the license any form | 8 | | of alcoholic liquor purchased from a licensed distributor or | 9 | | importing distributor, and (vi) with the prior approval of the | 10 | | Commission, annually transfer no more than 155,000 gallons of | 11 | | beer manufactured on the premises to a licensed brew pub wholly | 12 | | owned and operated by the same licensee. | 13 | | A brew pub licensee shall not under any circumstance sell | 14 | | or offer for sale beer manufactured by the brew pub licensee to | 15 | | retail licensees. | 16 | | A person who holds a class 2 brewer license may | 17 | | simultaneously hold a brew pub license if the class 2 brewer | 18 | | (i) does not, under any circumstance, sell or offer for sale | 19 | | beer manufactured by the class 2 brewer to retail licensees; | 20 | | (ii) does not hold more than 3 brew pub licenses in this State; | 21 | | (iii) does not manufacture more than a combined 3,720,000 | 22 | | gallons of beer per year, including the beer manufactured at | 23 | | the brew pub; and (iv) is not a member of or affiliated with, | 24 | | directly or indirectly, a manufacturer that produces more than | 25 | | 3,720,000 gallons of beer per year or any other alcoholic | 26 | | liquor. |
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| 1 | | Notwithstanding any other provision of this Act, a licensed | 2 | | brewer, class 2 brewer, or non-resident dealer who before July | 3 | | 1, 2015 manufactured less than 3,720,000 gallons of beer per | 4 | | year and held a brew pub license on or before July 1, 2015 may | 5 | | (i) continue to qualify for and hold that brew pub license for | 6 | | the licensed premises and (ii) manufacture more than 3,720,000 | 7 | | gallons of beer per year and continue to qualify for and hold | 8 | | that brew pub license if that brewer, class 2 brewer, or | 9 | | non-resident dealer does not simultaneously hold a class 1 | 10 | | brewer license and is not a member of or affiliated with, | 11 | | directly or indirectly, a manufacturer that produces more than | 12 | | 3,720,000 gallons of beer per year or that produces any other | 13 | | alcoholic liquor. | 14 | | (o) A caterer retailer license shall allow the holder
to | 15 | | serve alcoholic liquors as an incidental part of a food service | 16 | | that serves
prepared meals which excludes the serving of snacks | 17 | | as
the primary meal, either on or off-site whether licensed or | 18 | | unlicensed. | 19 | | (p) An auction liquor license shall allow the licensee to | 20 | | sell and offer
for sale at auction wine and spirits for use or | 21 | | consumption, or for resale by
an Illinois liquor licensee in | 22 | | accordance with provisions of this Act. An
auction liquor | 23 | | license will be issued to a person and it will permit the
| 24 | | auction liquor licensee to hold the auction anywhere in the | 25 | | State. An auction
liquor license must be obtained for each | 26 | | auction at least 14 days in advance of
the auction date. |
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| 1 | | (q) A special use permit license shall allow an Illinois | 2 | | licensed
retailer to transfer a portion of its alcoholic liquor | 3 | | inventory from its
retail licensed premises to the premises | 4 | | specified in the license hereby
created, and to sell or offer | 5 | | for sale at retail, only in the premises
specified in the | 6 | | license hereby created, the transferred alcoholic liquor for
| 7 | | use or consumption, but not for resale in any form. A special | 8 | | use permit
license may be granted for the following time | 9 | | periods: one day or less; 2 or
more days to a maximum of 15 days | 10 | | per location in any 12-month period. An
applicant for the | 11 | | special use permit license must also submit with the
| 12 | | application proof satisfactory to the State Commission that the | 13 | | applicant will
provide dram shop liability insurance to the | 14 | | maximum limits and have local
authority approval. | 15 | | (r) A winery shipper's license shall allow a person
with a | 16 | | first-class or second-class wine manufacturer's
license, a | 17 | | first-class or second-class wine-maker's license,
or a limited | 18 | | wine manufacturer's license or who is licensed to
make wine | 19 | | under the laws of another state to ship wine
made by that | 20 | | licensee directly to a resident of this
State who is 21 years | 21 | | of age or older for that resident's
personal use and not for | 22 | | resale. Prior to receiving a
winery shipper's license, an | 23 | | applicant for the license must
provide the Commission with a | 24 | | true copy of its current
license in any state in which it is | 25 | | licensed as a manufacturer
of wine. An applicant for a winery | 26 | | shipper's license must
also complete an application form that |
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| 1 | | provides any other
information the Commission deems necessary. | 2 | | The application form shall include all addresses from which the | 3 | | applicant for a winery shipper's license intends to ship wine, | 4 | | including the name and address of any third party, except for a | 5 | | common carrier, authorized to ship wine on behalf of the | 6 | | manufacturer. The
application form shall include an | 7 | | acknowledgement consenting
to the jurisdiction of the | 8 | | Commission, the Illinois
Department of Revenue, and the courts | 9 | | of this State concerning
the enforcement of this Act and any | 10 | | related laws, rules, and
regulations, including authorizing | 11 | | the Department of Revenue
and the Commission to conduct audits | 12 | | for the purpose of
ensuring compliance with Public Act 95-634, | 13 | | and an acknowledgement that the wine manufacturer is in | 14 | | compliance with Section 6-2 of this Act. Any third party, | 15 | | except for a common carrier, authorized to ship wine on behalf | 16 | | of a first-class or second-class wine manufacturer's licensee, | 17 | | a first-class or second-class wine-maker's licensee, a limited | 18 | | wine manufacturer's licensee, or a person who is licensed to | 19 | | make wine under the laws of another state shall also be | 20 | | disclosed by the winery shipper's licensee, and a copy of the | 21 | | written appointment of the third-party wine provider, except | 22 | | for a common carrier, to the wine manufacturer shall be filed | 23 | | with the State Commission as a supplement to the winery | 24 | | shipper's license application or any renewal thereof. The | 25 | | winery shipper's license holder shall affirm under penalty of | 26 | | perjury, as part of the winery shipper's license application or |
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| 1 | | renewal, that he or she only ships wine, either directly or | 2 | | indirectly through a third-party provider, from the licensee's | 3 | | own production. | 4 | | Except for a common carrier, a third-party provider | 5 | | shipping wine on behalf of a winery shipper's license holder is | 6 | | the agent of the winery shipper's license holder and, as such, | 7 | | a winery shipper's license holder is responsible for the acts | 8 | | and omissions of the third-party provider acting on behalf of | 9 | | the license holder. A third-party provider, except for a common | 10 | | carrier, that engages in shipping wine into Illinois on behalf | 11 | | of a winery shipper's license holder shall consent to the | 12 | | jurisdiction of the State Commission and the State. Any | 13 | | third-party, except for a common carrier, holding such an | 14 | | appointment shall, by February 1 of each calendar year and upon | 15 | | request by the State Commission or the Department of Revenue, | 16 | | file with the State Commission a statement detailing each | 17 | | shipment made to an Illinois resident. The statement shall | 18 | | include the name and address of the third-party provider filing | 19 | | the statement, the time period covered by the statement, and | 20 | | the following information: | 21 | | (1) the name, address, and license number of the winery | 22 | | shipper on whose behalf the shipment was made; | 23 | | (2) the quantity of the products delivered; and | 24 | | (3) the date and address of the shipment. | 25 | | If the Department of Revenue or the State Commission requests a | 26 | | statement under this paragraph, the third-party provider must |
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| 1 | | provide that statement no later than 30 days after the request | 2 | | is made. Any books, records, supporting papers, and documents | 3 | | containing information and data relating to a statement under | 4 | | this paragraph shall be kept and preserved for a period of 3 | 5 | | years, unless their destruction sooner is authorized, in | 6 | | writing, by the Director of Revenue, and shall be open and | 7 | | available to inspection by the Director of Revenue or the State | 8 | | Commission or any duly authorized officer, agent, or employee | 9 | | of the State Commission or the Department of Revenue, at all | 10 | | times during business hours of the day. Any person who violates | 11 | | any provision of this paragraph or any rule of the State | 12 | | Commission for the administration and enforcement of the | 13 | | provisions of this paragraph is guilty of a Class C | 14 | | misdemeanor. In case of a continuing violation, each day's | 15 | | continuance thereof shall be a separate and distinct offense. | 16 | | The State Commission shall adopt rules as soon as | 17 | | practicable to implement the requirements of Public Act 99-904 | 18 | | and shall adopt rules prohibiting any such third-party | 19 | | appointment of a third-party provider, except for a common | 20 | | carrier, that has been deemed by the State Commission to have | 21 | | violated the provisions of this Act with regard to any winery | 22 | | shipper licensee. | 23 | | A winery shipper licensee must pay to the Department
of | 24 | | Revenue the State liquor gallonage tax under Section 8-1 for
| 25 | | all wine that is sold by the licensee and shipped to a person
| 26 | | in this State. For the purposes of Section 8-1, a winery
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| 1 | | shipper licensee shall be taxed in the same manner as a
| 2 | | manufacturer of wine. A licensee who is not otherwise required | 3 | | to register under the Retailers' Occupation Tax Act must
| 4 | | register under the Use Tax Act to collect and remit use tax to
| 5 | | the Department of Revenue for all gallons of wine that are sold
| 6 | | by the licensee and shipped to persons in this State. If a
| 7 | | licensee fails to remit the tax imposed under this Act in
| 8 | | accordance with the provisions of Article VIII of this Act, the
| 9 | | winery shipper's license shall be revoked in accordance
with | 10 | | the provisions of Article VII of this Act. If a licensee
fails | 11 | | to properly register and remit tax under the Use Tax Act
or the | 12 | | Retailers' Occupation Tax Act for all wine that is sold
by the | 13 | | winery shipper and shipped to persons in this
State, the winery | 14 | | shipper's license shall be revoked in
accordance with the | 15 | | provisions of Article VII of this Act. | 16 | | A winery shipper licensee must collect, maintain, and
| 17 | | submit to the Commission on a semi-annual basis the
total | 18 | | number of cases per resident of wine shipped to residents
of | 19 | | this State.
A winery shipper licensed under this subsection (r)
| 20 | | must comply with the requirements of Section 6-29 of this Act. | 21 | | Pursuant to paragraph (5.1) or (5.3) of subsection (a) of | 22 | | Section 3-12, the State Commission may receive, respond to, and | 23 | | investigate any complaint and impose any of the remedies | 24 | | specified in paragraph (1) of subsection (a) of Section 3-12. | 25 | | As used in this subsection, "third-party provider" means | 26 | | any entity that provides fulfillment house services, including |
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| 1 | | warehousing, packaging, distribution, order processing, or | 2 | | shipment of wine, but not the sale of wine, on behalf of a | 3 | | licensed winery shipper. | 4 | | (s) A craft distiller tasting permit license shall allow an | 5 | | Illinois licensed craft distiller to transfer a portion of its | 6 | | alcoholic liquor inventory from its craft distiller licensed | 7 | | premises to the premises specified in the license hereby | 8 | | created and to conduct a sampling, only in the premises | 9 | | specified in the license hereby created, of the transferred | 10 | | alcoholic liquor in accordance with subsection (c) of Section | 11 | | 6-31 of this Act. The transferred alcoholic liquor may not be | 12 | | sold or resold in any form. An applicant for the craft | 13 | | distiller tasting permit license must also submit with the | 14 | | application proof satisfactory to the State Commission that the | 15 | | applicant will provide dram shop liability insurance to the | 16 | | maximum limits and have local authority approval. | 17 | | (Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16; | 18 | | 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff. | 19 | | 1-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17.)
| 20 | | (235 ILCS 5/8-5) (from Ch. 43, par. 163a)
| 21 | | Sec. 8-5.
As soon as practicable after any return is filed | 22 | | but not before 90 days after the return is filed, or any | 23 | | amendments to that return, whichever is later , the Department
| 24 | | shall examine such return or amended return and shall correct | 25 | | such return according to its
best judgment and information, |
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| 1 | | which return so corrected by the Department
shall be prima | 2 | | facie correct and shall be prima facie evidence of the
| 3 | | correctness of the amount of tax due, as shown therein. Instead | 4 | | of
requiring the licensee to file an amended return, the | 5 | | Department may simply
notify the licensee of the correction or | 6 | | corrections it has made. Proof of
such correction by the | 7 | | Department, or of the determination of the amount of
tax due as | 8 | | provided in Sections 8-4 and 8-10, may be made at
any hearing | 9 | | before the Department or in any legal proceeding by a
| 10 | | reproduced copy of the Department's record relating thereto in | 11 | | the name of
the Department under the certificate of the | 12 | | Director of Revenue. Such
reproduced copy shall, without | 13 | | further proof, be admitted into evidence
before the Department | 14 | | or in any legal proceeding and shall be prima facie
proof of | 15 | | the correctness of the amount of tax due, as shown therein. If | 16 | | the
return so corrected by the Department discloses the sale or | 17 | | use, by a
licensed manufacturer or importing distributor, of | 18 | | alcoholic liquors as to
which the tax provided for in this | 19 | | Article should have been paid, but has
not been paid, in excess | 20 | | of the alcoholic liquors reported as being taxable
by the | 21 | | licensee, and as to which the proper tax was paid the | 22 | | Department
shall notify the licensee that it shall issue the | 23 | | taxpayer a notice of tax
liability for the amount of tax | 24 | | claimed by the Department to be due,
together with penalties at | 25 | | the rates prescribed by Sections 3-3, 3-5 and
3-6 of the | 26 | | Uniform Penalty and Interest Act, which amount of tax shall be
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| 1 | | equivalent to the amount of tax which, at the prescribed rate | 2 | | per gallon,
should have been paid with respect to the alcoholic | 3 | | liquors disposed of in
excess of those reported as being | 4 | | taxable. In a case where no return has
been filed, the | 5 | | Department shall determine the amount of tax due according
to | 6 | | its best judgment and information and shall issue the taxpayer | 7 | | a notice
of tax liability for the amount of tax claimed by the | 8 | | Department to be due
as herein provided together with penalties | 9 | | at the rates prescribed by
Sections 3-3, 3-5 and 3-6 of the | 10 | | Uniform Penalty and Interest Act. If, in
administering the | 11 | | provisions of this Act, a comparison of a licensee's
return or | 12 | | returns with the books, records and physical inventories of | 13 | | such
licensee discloses a deficiency which cannot be allocated | 14 | | by the Department
to a particular month or months, the | 15 | | Department shall issue the taxpayer a
notice of tax liability | 16 | | for the amount of tax claimed by the Department to
be due for a | 17 | | given period, but without any obligation upon the Department
to | 18 | | allocate such deficiency to any particular month or months, | 19 | | together
with penalties at the rates prescribed by Sections | 20 | | 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest Act, which | 21 | | amount of tax shall be equivalent to
the amount of tax which, | 22 | | at the prescribed rate per gallon, should have
been paid with | 23 | | respect to the alcoholic liquors disposed of in excess of
those | 24 | | reported being taxable, with the tax thereon having been paid | 25 | | under
which circumstances the aforesaid notice of tax liability | 26 | | shall be prima
facie correct and shall be prima facie evidence |
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| 1 | | of the correctness of the
amount of tax due as shown therein; | 2 | | and proof of such correctness may be
made in accordance with, | 3 | | and the admissibility of a reproduced copy of such
notice of | 4 | | the Department's notice of tax liability shall be governed by,
| 5 | | all the provisions of this Act applicable to corrected returns.
| 6 | | If the licensee dies or becomes a person under legal | 7 | | disability
at any time before the Department issues its notice | 8 | | of tax liability, such
notice shall be issued to the | 9 | | administrator, executor or other legal
representative, as | 10 | | such, of the deceased or licensee who is under legal
| 11 | | disability.
| 12 | | If such licensee or legal representative, within 60 days | 13 | | after such
notice of tax liability, files a protest to such | 14 | | notice of tax liability
and requests a hearing thereon, the | 15 | | Department shall give at least 7 days'
notice to such licensee | 16 | | or legal representative, as the case may be, of the
time and | 17 | | place fixed for such hearing and shall hold a hearing in
| 18 | | conformity with the provisions of this Act, and pursuant | 19 | | thereto shall
issue a final assessment to such licensee or | 20 | | legal representative for the
amount found to be due as a result | 21 | | of such hearing.
| 22 | | If a protest to the notice of tax liability and a request | 23 | | for a hearing
thereon is not filed within 60 days after such | 24 | | notice of tax liability,
such notice of tax liability shall | 25 | | become final without the necessity of a
final assessment being | 26 | | issued and shall be deemed to be a final assessment.
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| 1 | | In case of failure to pay the tax, or any portion thereof, | 2 | | or any
penalty provided for herein, when due, the Department | 3 | | may recover the
amount of such tax, or portion thereof, or | 4 | | penalty in a civil action; or if
the licensee dies or becomes a | 5 | | person under legal disability, by filing a
claim therefor | 6 | | against his or her estate; provided that no such claim shall
be | 7 | | filed against the estate of any deceased or of the licensee who | 8 | | is under
legal disability for any tax or penalty or portion | 9 | | thereof except in the
manner prescribed and within the time | 10 | | limited by the Probate Act of 1975,
as amended.
| 11 | | The collection of any such tax and penalty, or either, by | 12 | | any means
provided for herein, shall not be a bar to any | 13 | | prosecution under this Act.
| 14 | | In addition to any other penalty provided for in this | 15 | | Article, any
licensee who fails to pay any tax within the time | 16 | | required by this Article
shall be subject to assessment of | 17 | | penalties and interest at rates set
forth in the Uniform | 18 | | Penalty and Interest Act.
| 19 | | (Source: P.A. 87-205; 87-879 .)
| 20 | | Section 99. Effective date. This Act takes effect July 1, | 21 | | 2019, except that this Section and changes to Sections 3-12 and | 22 | | 5-1 of the Liquor Control Act of 1934 take effect upon becoming | 23 | | law.
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