State of Illinois
90th General Assembly
Legislation

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[ Senate Amendment 001 ]

90_SB1326

      235 ILCS 5/5-1            from Ch. 43, par. 115
          Amends the Liquor Control Act of 1934.  Provides that  an
      applicant  for  a  special  event retailer's license must, in
      addition to current requirements, (i)  show  proof  that  the
      applicant  is  a  valid  educational,  fraternal,  political,
      civic, religious, or non-profit organization, (ii) not hold a
      retailer's  license,  (iii)  not  have  received  more than 3
      special event retailer's licenses in the prior 12 months, and
      (iv) show proof to the State Commission that it has  obtained
      local authority approval.  Effective immediately.
                                                    LRB9009516LDdvA
                                              LRB9009516LDdvA
 1        AN  ACT  to  amend  the  Liquor  Control  Act  of 1934 by
 2    changing Section 5-1.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The Liquor Control Act of 1934 is amended by
 6    changing Section 5-1 as follows:
 7        (235 ILCS 5/5-1) (from Ch. 43, par. 115)
 8        Sec. 5-1.  Licenses issued by the Illinois Liquor Control
 9    Commission shall be of the following classes:
10        (a)  Manufacturer's license - Class 1.  Distiller,  Class
11    2.   Rectifier,  Class 3.  Brewer, Class 4.  First Class Wine
12    Manufacturer,  Class  5.   Second  Class  Wine  Manufacturer,
13    Class  6.  First  Class  Winemaker,  Class  7.  Second  Class
14    Winemaker, Class 8.  Limited Wine Manufacturer,
15        (b)  Distributor's license,
16        (c)  Importing Distributor's license,
17        (d)  Retailer's license,
18        (e)  Special Event Retailer's license (not-for-profit),
19        (f)  Railroad license,
20        (g)  Boat license,
21        (h)  Non-Beverage User's license,
22        (i)  Wine-maker's retail license,
23        (j)  Airplane license,
24        (k)  Foreign importer's license,
25        (l)  Broker's license,
26        (m)  Non-resident dealer's license,
27        (n)  Brew Pub license,
28        (o)  Auction liquor license,
29        (p)  Caterer retailer license,
30        (q)  Special use permit license.
31        Nothing   in   this  provision,  nor  in  any  subsequent
                            -2-               LRB9009516LDdvA
 1    provision of this Act shall be interpreted as  forbidding  an
 2    individual  or firm from concurrently obtaining and holding a
 3    Winemaker's and a Wine manufacturer's license.
 4        (a)  A   manufacturer's   license   shall    allow    the
 5    manufacture,  importation  in bulk, storage, distribution and
 6    sale of alcoholic liquor to persons without the State, as may
 7    be permitted by  law  and  to  licensees  in  this  State  as
 8    follows:
 9        Class  1.  A  Distiller  may make sales and deliveries of
10    alcoholic  liquor  to   distillers,   rectifiers,   importing
11    distributors,  distributors  and non-beverage users and to no
12    other licensees.
13        Class 2. A Rectifier, who is not a distiller, as  defined
14    herein,  may make sales and deliveries of alcoholic liquor to
15    rectifiers, importing distributors,  distributors,  retailers
16    and non-beverage users and to no other licensees.
17        Class  3.  A Brewer may make sales and deliveries of beer
18    to   importing    distributors,    distributors,    and    to
19    non-licensees,  and  to retailers provided the brewer obtains
20    an importing distributor's license or  distributor's  license
21    in accordance with the provisions of this Act.
22        Class  4.  A first class wine-manufacturer may make sales
23    and deliveries of between 40,000 and 50,000 gallons  of  wine
24    to  manufacturers,  importing  distributors and distributors,
25    and to no other licensees.
26        Class 5. A second class Wine manufacturer may make  sales
27    and  deliveries  of  more  than  50,000  gallons  of  wine to
28    manufacturers, importing distributors and distributors and to
29    no other licensees.
30        Class 6. A first-class wine-maker's license  shall  allow
31    the manufacture of less than 20,000 gallons of wine per year,
32    and  the  storage  and  sale of such wine to distributors and
33    retailers in the State and to persons without the  State,  as
34    may be permitted by law.
                            -3-               LRB9009516LDdvA
 1        Class  7. A second-class wine-maker's license shall allow
 2    the manufacture of up to 50,000 gallons of wine per year, and
 3    the storage and sale of such wine  to  distributors  in  this
 4    State  and  to persons without the State, as may be permitted
 5    by law.  A second-class wine-maker's license shall allow  the
 6    sale  of  no  more than 10,000 gallons of the licensee's wine
 7    directly to retailers.
 8        Class 8. A limited wine-manufacturer may make  sales  and
 9    deliveries  not  to exceed 40,000 gallons of wine per year to
10    distributors, and to non-licensees  in  accordance  with  the
11    provisions of this Act.
12        (a-1)  A  manufacturer which is licensed in this State to
13    make sales  or  deliveries  of  alcoholic  liquor  and  which
14    enlists agents, representatives, or individuals acting on its
15    behalf  who  contact  licensed  retailers  on  a  regular and
16    continual basis in this State  must  register  those  agents,
17    representatives,  or  persons  acting  on its behalf with the
18    State Commission.
19        Registration  of  agents,  representatives,  or   persons
20    acting on behalf of a manufacturer is fulfilled by submitting
21    a form to the Commission.  The form shall be developed by the
22    Commission  and  shall  include  the  name and address of the
23    applicant, the name and address of the manufacturer he or she
24    represents, the territory or areas assigned  to  sell  to  or
25    discuss  pricing  terms  of  alcoholic  liquor, and any other
26    questions deemed appropriate and necessary.   All  statements
27    in  the  forms required to be made by law or by rule shall be
28    deemed material, and any person who knowingly  misstates  any
29    material  fact  under  oath  in an application is guilty of a
30    Class  B  misdemeanor.    Fraud,   misrepresentation,   false
31    statements,  misleading  statements, evasions, or suppression
32    of material facts in  the  securing  of  a  registration  are
33    grounds for suspension or revocation of the registration.
34        (b)  A  distributor's  license  shall allow the wholesale
                            -4-               LRB9009516LDdvA
 1    purchase  and  storage  of  alcoholic  liquors  and  sale  of
 2    alcoholic liquors to licensees in this State and  to  persons
 3    without the State, as may be permitted by law.
 4        (c)  An  importing distributor's license may be issued to
 5    and held by those only who are  duly  licensed  distributors,
 6    upon  the  filing  of  an  application  by  a  duly  licensed
 7    distributor,  with  the  Commission and the Commission shall,
 8    without the  payment  of  any  fee,  immediately  issue  such
 9    importing distributor's license to the applicant, which shall
10    allow  the  importation  of  alcoholic liquor by the licensee
11    into this State from any point in the United  States  outside
12    this  State, and the purchase of alcoholic liquor in barrels,
13    casks or other bulk  containers  and  the  bottling  of  such
14    alcoholic  liquors  before resale thereof, but all bottles or
15    containers so filled shall be sealed,  labeled,  stamped  and
16    otherwise  made  to  comply  with  all  provisions, rules and
17    regulations governing manufacturers in  the  preparation  and
18    bottling  of  alcoholic liquors.  The importing distributor's
19    license shall permit  such  licensee  to  purchase  alcoholic
20    liquor   from  Illinois  licensed  non-resident  dealers  and
21    foreign importers only.
22        (d)  A retailer's license shall  allow  the  licensee  to
23    sell  and  offer  for  sale  at  retail, only in the premises
24    specified in  such  license,  alcoholic  liquor  for  use  or
25    consumption,  but  not  for resale in any form: Provided that
26    any retail license issued to a manufacturer shall only permit
27    such manufacturer to sell beer  at  retail  on  the  premises
28    actually occupied by such manufacturer.
29        After  January  1,  1995  there  shall  be  2  classes of
30    licenses issued under a retailers license.
31             (1)  A "retailers on  premise  consumption  license"
32        shall  allow  the  licensee to sell and offer for sale at
33        retail, only on the premises specified  in  the  license,
34        alcoholic  liquor  for use or consumption on the premises
                            -5-               LRB9009516LDdvA
 1        or on and off the premises, but not  for  resale  in  any
 2        form.
 3             (2)  An  "off  premise sale license" shall allow the
 4        licensee to sell, or offer for sale at retail,  alcoholic
 5        liquor  intended only for off premise consumption and not
 6        for resale in any form.
 7        Notwithstanding any other provision  of  this  subsection
 8    (d),  a  retail  licensee  may  sell  alcoholic  liquors to a
 9    special event retailer licensee  for  resale  to  the  extent
10    permitted under subsection (e).
11        (e)  A  special event retailer's license (not-for-profit)
12    shall permit the licensee to purchase alcoholic liquors  from
13    an   Illinois  licensed   distributor  (unless  the  licensee
14    purchases less than $500 of alcoholic liquors for the special
15    event, in which case the licensee may purchase the  alcoholic
16    liquors  from  a  licensed  retailer)  and  shall  allow  the
17    licensee  to  sell  and  offer for sale, at retail, alcoholic
18    liquors for use or consumption, but not  for  resale  in  any
19    form  and  only  at  the  location  and on the specific dates
20    designated  for  the  special  event  in  the  license.    An
21    applicant  for a special event retailer license must (i) show
22    proof satisfactory to the State Commission that the applicant
23    is  a  valid  educational,   fraternal,   political,   civic,
24    religious,  or non-profit organization by submitting with the
25    application  a   certified   copy   of   the   not-for-profit
26    corporation  certificate  filed with the Secretary of State's
27    Office or by submitting a certified copy of the  association,
28    trust, partnership, or other organization documents including
29    federal  or  State  identification  and tax numbers; (ii) not
30    hold a retailer's license; (iii) not have received more  than
31    3  special  event retailer's licenses in the prior 12 months;
32    (iv) also submit with the application proof  satisfactory  to
33    the  State  Commission  that  the applicant will provide dram
34    shop liability insurance in the maximum limits and  (v)  show
                            -6-               LRB9009516LDdvA
 1    proof satisfactory to the State Commission that the applicant
 2    has obtained have local authority approval.
 3        (f)  A  railroad  license  shall  permit  the licensee to
 4    import alcoholic liquors into this State from  any  point  in
 5    the  United  States  outside  this  State  and  to store such
 6    alcoholic liquors in this State; to make wholesale  purchases
 7    of  alcoholic  liquors  directly  from manufacturers, foreign
 8    importers,  distributors  and  importing  distributors   from
 9    within  or  outside  this  State; and to store such alcoholic
10    liquors in this State; provided that the above powers may  be
11    exercised  only  in connection with the importation, purchase
12    or storage of alcoholic liquors to be sold or dispensed on  a
13    club,  buffet,  lounge or dining car operated on an electric,
14    gas or steam railway in this  State;  and  provided  further,
15    that  railroad licensees exercising the above powers shall be
16    subject to all provisions of Article  VIII  of  this  Act  as
17    applied  to importing distributors.  A railroad license shall
18    also permit  the  licensee  to  sell  or  dispense  alcoholic
19    liquors on any club, buffet, lounge or dining car operated on
20    an  electric,  gas  or  steam railway regularly operated by a
21    common carrier in this State, but shall not permit  the  sale
22    for  resale  of  any alcoholic liquors to any licensee within
23    this State.  A license shall be  obtained  for  each  car  in
24    which such sales are made.
25        (g)  A  boat  license  shall  allow the sale of alcoholic
26    liquor in individual drinks, on any passenger boat  regularly
27    operated  as  a  common  carrier  on navigable waters in this
28    State,  which  boat  maintains  a  public  dining   room   or
29    restaurant thereon.
30        (h)  A   non-beverage  user's  license  shall  allow  the
31    licensee  to  purchase  alcoholic  liquor  from  a   licensed
32    manufacturer or importing distributor, without the imposition
33    of any tax upon the business of such licensed manufacturer or
34    importing  distributor as to such alcoholic liquor to be used
                            -7-               LRB9009516LDdvA
 1    by such licensee solely for  the  non-beverage  purposes  set
 2    forth  in subsection (a) of Section 8-1 of this Act, and such
 3    licenses shall be divided and classified and shall permit the
 4    purchase, possession and use of limited and stated quantities
 5    of alcoholic liquor as follows:
 6    Class 1, not to exceed .......................    500 gallons
 7    Class 2, not to exceed .......................  1,000 gallons
 8    Class 3, not to exceed .......................  5,000 gallons
 9    Class 4, not to exceed ....................... 10,000 gallons
10    Class 5, not to exceed ....................... 50,000 gallons
11        (i)  A  wine-maker's  retail  license  shall  allow   the
12    licensee to sell and offer for sale at retail in the premises
13    specified  in  such  license  not more than 50,000 gallons of
14    wine per year for use or consumption, but not for  resale  in
15    any  form;  this  license  shall  be  issued only to a person
16    licensed as  a  first-class  or  second-class  wine-maker.  A
17    wine-maker's  retail licensee, upon receiving permission from
18    the Commission, may conduct business  at  a  second  location
19    that   is   separate  from  the  location  specified  in  its
20    wine-maker's  retail   license.   One   wine-maker's   retail
21    license-second  location  may  be  issued  to  a wine-maker's
22    retail licensee allowing the licensee to sell and  offer  for
23    sale  at retail in the premises specified in the wine-maker's
24    retail license-second location up to 50,000 gallons  of  wine
25    that  was  produced at the licensee's first location per year
26    for use and consumption and not for resale.
27        (j)  An airplane license shall  permit  the  licensee  to
28    import  alcoholic  liquors  into this State from any point in
29    the United States  outside  this  State  and  to  store  such
30    alcoholic  liquors in this State; to make wholesale purchases
31    of alcoholic liquors  directly  from  manufacturers,  foreign
32    importers,   distributors  and  importing  distributors  from
33    within or outside this State; and  to  store  such  alcoholic
34    liquors  in this State; provided that the above powers may be
                            -8-               LRB9009516LDdvA
 1    exercised only in connection with the  importation,  purchase
 2    or storage of alcoholic liquors to be sold or dispensed on an
 3    airplane;  and  provided  further,  that  airplane  licensees
 4    exercising   the   above  powers  shall  be  subject  to  all
 5    provisions  of  Article  VIII  of  this  Act  as  applied  to
 6    importing distributors.   An  airplane  licensee  shall  also
 7    permit  the  sale  or  dispensing of alcoholic liquors on any
 8    passenger airplane regularly operated by a common carrier  in
 9    this  State,  but shall not permit the sale for resale of any
10    alcoholic liquors to  any  licensee  within  this  State.   A
11    single  airplane  license  shall  be  required  of an airline
12    company if liquor service is provided on  board  aircraft  in
13    this  State.   The  annual  fee  for such license shall be as
14    determined in Section 5-3.
15        (k)  A  foreign  importer's  license  shall  permit  such
16    licensee to purchase alcoholic liquor from Illinois  licensed
17    non-resident  dealers  only,  and  to import alcoholic liquor
18    other than in bulk from any point outside the  United  States
19    and  to  sell  such  alcoholic  liquor  to  Illinois licensed
20    importing distributors and to no one else in Illinois.
21        (l)  A broker's license shall be required of all  brokers
22    who  solicit  orders  for,  offer  to sell or offer to supply
23    alcoholic liquor to retailers in the State  of  Illinois,  or
24    who  offer  to retailers to ship or cause to be shipped or to
25    make  contact  with  distillers,   rectifiers,   brewers   or
26    manufacturers  or any other party within or without the State
27    of Illinois in order that alcoholic liquors be shipped  to  a
28    distributor,   importing  distributor  or  foreign  importer,
29    whether such solicitation or offer is consummated  within  or
30    without the State of Illinois.
31        No  holder of a retailer's license issued by the Illinois
32    Liquor Control  Commission  shall  purchase  or  receive  any
33    alcoholic  liquor,  the  order  for  which  was  solicited or
34    offered for sale to such retailer  by  a  broker  unless  the
                            -9-               LRB9009516LDdvA
 1    broker is the holder of a valid broker's license.
 2        The  broker  shall,  upon the acceptance by a retailer of
 3    the broker's solicitation of an order or  offer  to  sell  or
 4    supply  or  deliver  or  have  delivered  alcoholic  liquors,
 5    promptly  forward to the Illinois Liquor Control Commission a
 6    notification  of  said  transaction  in  such  form  as   the
 7    Commission may by regulations prescribe.
 8        Such  license shall not entitle the holder to buy or sell
 9    any alcoholic liquors for his  own  account  or  to  take  or
10    deliver title to such alcoholic liquors.
11        This   subsection   shall   not  apply  to  distributors,
12    employees of distributors, or employees of a manufacturer who
13    has registered the trademark, brand or name of the  alcoholic
14    liquor pursuant to Section 6-9 of this Act, and who regularly
15    sells  such alcoholic liquor in the State of Illinois only to
16    its registrants thereunder.
17        Any  agent,  representative,   or   person   subject   to
18    registration  pursuant  to  subsection  (a-1) of this Section
19    shall not be eligible to receive a broker's license.
20        (m)  A non-resident dealer's license  shall  permit  such
21    licensee  to  ship  into  and warehouse alcoholic liquor into
22    this State from any point outside of this State, and to  sell
23    such  alcoholic liquor to Illinois licensed foreign importers
24    and importing distributors and to no one else in this  State;
25    provided  that  said  non-resident dealer shall register with
26    the Illinois Liquor Control Commission each and  every  brand
27    of  alcoholic  liquor  which  it proposes to sell to Illinois
28    licensees during the license  period;  and  further  provided
29    that  it  shall  comply with all of the provisions of Section
30    6-9 hereof with respect  to  registration  of  such  Illinois
31    licensees  as may be granted the right to sell such brands at
32    wholesale.
33        (n)  A brew pub  license  shall  allow  the  licensee  to
34    manufacture  beer  only  on  the  premises  specified  in the
                            -10-              LRB9009516LDdvA
 1    license, to make  sales  of  the  beer  manufactured  on  the
 2    premises  to  importing  distributors,  distributors,  and to
 3    non-licensees for use and consumption, to store the beer upon
 4    the premises, and to sell and offer for sale at  retail  from
 5    the  licensed  premises,  provided  that  a brew pub licensee
 6    shall not sell for off-premises consumption more than  50,000
 7    gallons per year.
 8        (o)  A caterer retailer license shall allow the holder to
 9    serve  alcoholic  liquors  as  an  incidental  part of a food
10    service that serves prepared meals which excludes the serving
11    of snacks as the primary meal, either on or off-site  whether
12    licensed or unlicensed.
13        (p)  An  auction  liquor license shall allow the licensee
14    to sell and offer for sale at auction wine  and  spirits  for
15    use  or  consumption,  or  for  resale  by an Illinois liquor
16    licensee in accordance  with  provisions  of  this  Act.   An
17    auction liquor license will be issued to a person and it will
18    permit  the  auction  liquor  licensee  to  hold  the auction
19    anywhere in the State.  An auction  liquor  license  must  be
20    obtained  for each auction at least 14 days in advance of the
21    auction date.
22        (q)  A special use permit license shall allow an Illinois
23    licensed retailer to transfer  a  portion  of  its  alcoholic
24    liquor  inventory  from  its  retail licensed premises to the
25    premises specified in the license hereby created, and to sell
26    or offer for sale at retail, only in the  premises  specified
27    in  the  license  hereby  created,  the transferred alcoholic
28    liquor for use or consumption, but  not  for  resale  in  any
29    form.   A  special  use permit license may be granted for the
30    following time periods: one day or less; 2 or more days to  a
31    maximum  of  15 days per location in any 12 month period.  An
32    applicant for the special use permit license must also submit
33    with  the  application  proof  satisfactory  to   the   State
34    Commission   that   the  applicant  will  provide  dram  shop
                            -11-              LRB9009516LDdvA
 1    liability insurance to the  maximum  limits  and  have  local
 2    authority approval.
 3    (Source:  P.A.  89-45,  eff.  6-23-95;  89-218,  eff. 1-1-96;
 4    89-626, eff. 8-9-96; 90-77, eff. 7-8-97; 90-432, eff. 1-1-98;
 5    revised 11-5-97.)
 6        Section 99.  Effective date.  This Act takes effect  upon
 7    becoming law.

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