Public Act 097-0005
 
SB0754 EnrolledLRB097 04475 ASK 44514 b

    AN ACT concerning liquor.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Liquor Control Act of 1934 is amended by
changing Sections 1-3.33, 3-12, 5-1, and 5-3 and by adding
Section 1-3.38 as follows:
 
    (235 ILCS 5/1-3.33)
    Sec. 1-3.33. "Brew Pub" means a person who manufactures
beer only at a designated premises to make sales to importing
distributors, distributors, and to non-licensees for use and
consumption only, who stores beer at the designated premises,
and who is allowed to sell at retail from the licensed
premises, provided that a brew pub licensee shall not sell for
off-premises consumption more than 50,000 gallons per year. A
person who holds a brew pub license may simultaneously hold a
craft brewer license if he or she otherwise qualifies for the
craft brewer license and the craft brewer license is for a
location separate from the brew pub's licensed premises.
(Source: P.A. 90-432, eff. 1-1-98.)
 
    (235 ILCS 5/1-3.38 new)
    Sec. 1-3.38. "Craft brewer" means a licensed brewer or
licensed non-resident dealer who manufactures up to 465,000
gallons of beer per year and who may make sales and deliveries
to importing distributors and distributors and to retail
licensees in accordance with the conditions set forth in
paragraph (18) of subsection (a) of Section 3-12 of this Act.
 
    (235 ILCS 5/3-12)
    Sec. 3-12. Powers and duties of State Commission.
    (a) The State commission shall have the following powers,
functions and duties:
        (1) To receive applications and to issue licenses to
    manufacturers, foreign importers, importing distributors,
    distributors, non-resident dealers, on premise consumption
    retailers, off premise sale retailers, special event
    retailer licensees, special use permit licenses, auction
    liquor licenses, brew pubs, caterer retailers,
    non-beverage users, railroads, including owners and
    lessees of sleeping, dining and cafe cars, airplanes,
    boats, brokers, and wine maker's premises licensees in
    accordance with the provisions of this Act, and to suspend
    or revoke such licenses upon the State commission's
    determination, upon notice after hearing, that a licensee
    has violated any provision of this Act or any rule or
    regulation issued pursuant thereto and in effect for 30
    days prior to such violation. Except in the case of an
    action taken pursuant to a violation of Section 6-3, 6-5,
    or 6-9, any action by the State Commission to suspend or
    revoke a licensee's license may be limited to the license
    for the specific premises where the violation occurred.
        In lieu of suspending or revoking a license, the
    commission may impose a fine, upon the State commission's
    determination and notice after hearing, that a licensee has
    violated any provision of this Act or any rule or
    regulation issued pursuant thereto and in effect for 30
    days prior to such violation. The fine imposed under this
    paragraph may not exceed $500 for each violation. Each day
    that the activity, which gave rise to the original fine,
    continues is a separate violation. The maximum fine that
    may be levied against any licensee, for the period of the
    license, shall not exceed $20,000. The maximum penalty that
    may be imposed on a licensee for selling a bottle of
    alcoholic liquor with a foreign object in it or serving
    from a bottle of alcoholic liquor with a foreign object in
    it shall be the destruction of that bottle of alcoholic
    liquor for the first 10 bottles so sold or served from by
    the licensee. For the eleventh bottle of alcoholic liquor
    and for each third bottle thereafter sold or served from by
    the licensee with a foreign object in it, the maximum
    penalty that may be imposed on the licensee is the
    destruction of the bottle of alcoholic liquor and a fine of
    up to $50.
        (2) To adopt such rules and regulations consistent with
    the provisions of this Act which shall be necessary to
    carry on its functions and duties to the end that the
    health, safety and welfare of the People of the State of
    Illinois shall be protected and temperance in the
    consumption of alcoholic liquors shall be fostered and
    promoted and to distribute copies of such rules and
    regulations to all licensees affected thereby.
        (3) To call upon other administrative departments of
    the State, county and municipal governments, county and
    city police departments and upon prosecuting officers for
    such information and assistance as it deems necessary in
    the performance of its duties.
        (4) To recommend to local commissioners rules and
    regulations, not inconsistent with the law, for the
    distribution and sale of alcoholic liquors throughout the
    State.
        (5) To inspect, or cause to be inspected, any premises
    in this State where alcoholic liquors are manufactured,
    distributed, warehoused, or sold.
        (5.1) Upon receipt of a complaint or upon having
    knowledge that any person is engaged in business as a
    manufacturer, importing distributor, distributor, or
    retailer without a license or valid license, to notify the
    local liquor authority, file a complaint with the State's
    Attorney's Office of the county where the incident
    occurred, or initiate an investigation with the
    appropriate law enforcement officials.
        (5.2) To issue a cease and desist notice to persons
    shipping alcoholic liquor into this State from a point
    outside of this State if the shipment is in violation of
    this Act.
        (5.3) To receive complaints from licensees, local
    officials, law enforcement agencies, organizations, and
    persons stating that any licensee has been or is violating
    any provision of this Act or the rules and regulations
    issued pursuant to this Act. Such complaints shall be in
    writing, signed and sworn to by the person making the
    complaint, and shall state with specificity the facts in
    relation to the alleged violation. If the Commission has
    reasonable grounds to believe that the complaint
    substantially alleges a violation of this Act or rules and
    regulations adopted pursuant to this Act, it shall conduct
    an investigation. If, after conducting an investigation,
    the Commission is satisfied that the alleged violation did
    occur, it shall proceed with disciplinary action against
    the licensee as provided in this Act.
        (6) To hear and determine appeals from orders of a
    local commission in accordance with the provisions of this
    Act, as hereinafter set forth. Hearings under this
    subsection shall be held in Springfield or Chicago, at
    whichever location is the more convenient for the majority
    of persons who are parties to the hearing.
        (7) The commission shall establish uniform systems of
    accounts to be kept by all retail licensees having more
    than 4 employees, and for this purpose the commission may
    classify all retail licensees having more than 4 employees
    and establish a uniform system of accounts for each class
    and prescribe the manner in which such accounts shall be
    kept. The commission may also prescribe the forms of
    accounts to be kept by all retail licensees having more
    than 4 employees, including but not limited to accounts of
    earnings and expenses and any distribution, payment, or
    other distribution of earnings or assets, and any other
    forms, records and memoranda which in the judgment of the
    commission may be necessary or appropriate to carry out any
    of the provisions of this Act, including but not limited to
    such forms, records and memoranda as will readily and
    accurately disclose at all times the beneficial ownership
    of such retail licensed business. The accounts, forms,
    records and memoranda shall be available at all reasonable
    times for inspection by authorized representatives of the
    State commission or by any local liquor control
    commissioner or his or her authorized representative. The
    commission, may, from time to time, alter, amend or repeal,
    in whole or in part, any uniform system of accounts, or the
    form and manner of keeping accounts.
        (8) In the conduct of any hearing authorized to be held
    by the commission, to appoint, at the commission's
    discretion, hearing officers to conduct hearings involving
    complex issues or issues that will require a protracted
    period of time to resolve, to examine, or cause to be
    examined, under oath, any licensee, and to examine or cause
    to be examined the books and records of such licensee; to
    hear testimony and take proof material for its information
    in the discharge of its duties hereunder; to administer or
    cause to be administered oaths; for any such purpose to
    issue subpoena or subpoenas to require the attendance of
    witnesses and the production of books, which shall be
    effective in any part of this State, and to adopt rules to
    implement its powers under this paragraph (8).
        Any Circuit Court may by order duly entered, require
    the attendance of witnesses and the production of relevant
    books subpoenaed by the State commission and the court may
    compel obedience to its order by proceedings for contempt.
        (9) To investigate the administration of laws in
    relation to alcoholic liquors in this and other states and
    any foreign countries, and to recommend from time to time
    to the Governor and through him or her to the legislature
    of this State, such amendments to this Act, if any, as it
    may think desirable and as will serve to further the
    general broad purposes contained in Section 1-2 hereof.
        (10) To adopt such rules and regulations consistent
    with the provisions of this Act which shall be necessary
    for the control, sale or disposition of alcoholic liquor
    damaged as a result of an accident, wreck, flood, fire or
    other similar occurrence.
        (11) To develop industry educational programs related
    to responsible serving and selling, particularly in the
    areas of overserving consumers and illegal underage
    purchasing and consumption of alcoholic beverages.
        (11.1) To license persons providing education and
    training to alcohol beverage sellers and servers under the
    Beverage Alcohol Sellers and Servers Education and
    Training (BASSET) programs and to develop and administer a
    public awareness program in Illinois to reduce or eliminate
    the illegal purchase and consumption of alcoholic beverage
    products by persons under the age of 21. Application for a
    license shall be made on forms provided by the State
    Commission.
        (12) To develop and maintain a repository of license
    and regulatory information.
        (13) On or before January 15, 1994, the Commission
    shall issue a written report to the Governor and General
    Assembly that is to be based on a comprehensive study of
    the impact on and implications for the State of Illinois of
    Section 1926 of the Federal ADAMHA Reorganization Act of
    1992 (Public Law 102-321). This study shall address the
    extent to which Illinois currently complies with the
    provisions of P.L. 102-321 and the rules promulgated
    pursuant thereto.
        As part of its report, the Commission shall provide the
    following essential information:
            (i) the number of retail distributors of tobacco
        products, by type and geographic area, in the State;
            (ii) the number of reported citations and
        successful convictions, categorized by type and
        location of retail distributor, for violation of the
        Prevention of Tobacco Use by Minors and Sale and
        Distribution of Tobacco Products Act and the Smokeless
        Tobacco Limitation Act;
            (iii) the extent and nature of organized
        educational and governmental activities that are
        intended to promote, encourage or otherwise secure
        compliance with any Illinois laws that prohibit the
        sale or distribution of tobacco products to minors; and
            (iv) the level of access and availability of
        tobacco products to individuals under the age of 18.
        To obtain the data necessary to comply with the
    provisions of P.L. 102-321 and the requirements of this
    report, the Commission shall conduct random, unannounced
    inspections of a geographically and scientifically
    representative sample of the State's retail tobacco
    distributors.
        The Commission shall consult with the Department of
    Public Health, the Department of Human Services, the
    Illinois State Police and any other executive branch
    agency, and private organizations that may have
    information relevant to this report.
        The Commission may contract with the Food and Drug
    Administration of the U.S. Department of Health and Human
    Services to conduct unannounced investigations of Illinois
    tobacco vendors to determine compliance with federal laws
    relating to the illegal sale of cigarettes and smokeless
    tobacco products to persons under the age of 18.
        (14) On or before April 30, 2008 and every 2 years
    thereafter, the Commission shall present a written report
    to the Governor and the General Assembly that shall be
    based on a study of the impact of this amendatory Act of
    the 95th General Assembly on the business of soliciting,
    selling, and shipping wine from inside and outside of this
    State directly to residents of this State. As part of its
    report, the Commission shall provide all of the following
    information:
            (A) The amount of State excise and sales tax
        revenues generated.
            (B) The amount of licensing fees received.
            (C) The number of cases of wine shipped from inside
        and outside of this State directly to residents of this
        State.
            (D) The number of alcohol compliance operations
        conducted.
            (E) The number of winery shipper's licenses
        issued.
            (F) The number of each of the following: reported
        violations; cease and desist notices issued by the
        Commission; notices of violations issued by the
        Commission and to the Department of Revenue; and
        notices and complaints of violations to law
        enforcement officials, including, without limitation,
        the Illinois Attorney General and the U.S. Department
        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
        (15) As a means to reduce the underage consumption of
    alcoholic liquors, the Commission shall conduct alcohol
    compliance operations to investigate whether businesses
    that are soliciting, selling, and shipping wine from inside
    or outside of this State directly to residents of this
    State are licensed by this State or are selling or
    attempting to sell wine to persons under 21 years of age in
    violation of this Act.
        (16) The Commission shall, in addition to notifying any
    appropriate law enforcement agency, submit notices of
    complaints or violations of Sections 6-29 and 6-29.1 by
    persons who do not hold a winery shipper's license under
    this amendatory Act to the Illinois Attorney General and to
    the U.S. Department of Treasury's Alcohol and Tobacco Tax
    and Trade Bureau.
        (17) (A) A person licensed to make wine under the laws
    of another state who has a winery shipper's license under
    this amendatory Act and annually produces less than 25,000
    gallons of wine or a person who has a first-class or
    second-class wine manufacturer's license, a first-class or
    second-class wine-maker's license, or a limited wine
    manufacturer's license under this Act and annually
    produces less than 25,000 gallons of wine may make
    application to the Commission for a self-distribution
    exemption to allow the sale of not more than 5,000 gallons
    of the exemption holder's wine to retail licensees per
    year.
            (B) In the application, which shall be sworn under
        penalty of perjury, such person shall state (1) the
        date it was established; (2) its volume of production
        and sales for each year since its establishment; (3)
        its efforts to establish distributor relationships;
        (4) that a self-distribution exemption is necessary to
        facilitate the marketing of its wine; and (5) that it
        will comply with the liquor and revenue laws of the
        United States, this State, and any other state where it
        is licensed.
            (C) The Commission shall approve the application
        for a self-distribution exemption if such person: (1)
        is in compliance with State revenue and liquor laws;
        (2) is not a member of any affiliated group that
        produces more than 25,000 gallons of wine per annum or
        produces any other alcoholic liquor; (3) will not
        annually produce for sale more than 25,000 gallons of
        wine; and (4) will not annually sell more than 5,000
        gallons of its wine to retail licensees.
            (D) A self-distribution exemption holder shall
        annually certify to the Commission its production of
        wine in the previous 12 months and its anticipated
        production and sales for the next 12 months. The
        Commission may fine, suspend, or revoke a
        self-distribution exemption after a hearing if it
        finds that the exemption holder has made a material
        misrepresentation in its application, violated a
        revenue or liquor law of Illinois, exceeded production
        of 25,000 gallons of wine in any calendar year, or
        become part of an affiliated group producing more than
        25,000 gallons of wine or any other alcoholic liquor.
            (E) Except in hearings for violations of this Act
        or amendatory Act or a bona fide investigation by duly
        sworn law enforcement officials, the Commission, or
        its agents, the Commission shall maintain the
        production and sales information of a
        self-distribution exemption holder as confidential and
        shall not release such information to any person.
            (F) The Commission shall issue regulations
        governing self-distribution exemptions consistent with
        this Section and this Act.
            (G) Nothing in this subsection (17) shall prohibit
        a self-distribution exemption holder from entering
        into or simultaneously having a distribution agreement
        with a licensed Illinois distributor.
            (H) It is the intent of this subsection (17) to
        promote and continue orderly markets. The General
        Assembly finds that in order to preserve Illinois'
        regulatory distribution system it is necessary to
        create an exception for smaller makers of wine as their
        wines are frequently adjusted in varietals, mixes,
        vintages, and taste to find and create market niches
        sometimes too small for distributor or importing
        distributor business strategies. Limited
        self-distribution rights will afford and allow smaller
        makers of wine access to the marketplace in order to
        develop a customer base without impairing the
        integrity of the 3-tier system.
        (18) (A) A craft brewer licensee, who must also be
    either a licensed brewer or licensed non-resident dealer
    and annually manufacture less than 465,000 gallons of beer,
    may make application to the Commission for a
    self-distribution exemption to allow the sale of not more
    than 232,500 gallons of the exemption holder's beer to
    retail licensees per year.
            (B) In the application, which shall be sworn under
        penalty of perjury, the craft brewer licensee shall
        state (1) the date it was established; (2) its volume
        of beer manufactured and sold for each year since its
        establishment; (3) its efforts to establish
        distributor relationships; (4) that a
        self-distribution exemption is necessary to facilitate
        the marketing of its beer; and (5) that it will comply
        with the alcoholic beverage and revenue laws of the
        United States, this State, and any other state where it
        is licensed.
            (C) Any application submitted shall be posted on
        the Commission's website at least 45 days prior to
        action by the Commission. The Commission shall approve
        the application for a self-distribution exemption if
        the craft brewer licensee: (1) is in compliance with
        the State, revenue, and alcoholic beverage laws; (2) is
        not a member of any affiliated group that manufacturers
        more than 465,000 gallons of beer per annum or produces
        any other alcoholic beverages; (3) shall not annually
        manufacture for sale more than 465,000 gallons of beer;
        and (4) shall not annually sell more than 232,500
        gallons of its beer to retail licensees.
            (D) A self-distribution exemption holder shall
        annually certify to the Commission its manufacture of
        beer during the previous 12 months and its anticipated
        manufacture and sales of beer for the next 12 months.
        The Commission may fine, suspend, or revoke a
        self-distribution exemption after a hearing if it
        finds that the exemption holder has made a material
        misrepresentation in its application, violated a
        revenue or alcoholic beverage law of Illinois,
        exceeded the manufacture of 465,000 gallons of beer in
        any calendar year or became part of an affiliated group
        manufacturing more than 465,000 gallons of beer or any
        other alcoholic beverage.
            (E) The Commission shall issue rules and
        regulations governing self-distribution exemptions
        consistent with this Act.
            (F) Nothing in this paragraph (18) shall prohibit a
        self-distribution exemption holder from entering into
        or simultaneously having a distribution agreement with
        a licensed Illinois importing distributor or a
        distributor. If a self-distribution exemption holder
        enters into a distribution agreement and has assigned
        distribution rights to an importing distributor or
        distributor, then the self-distribution exemption
        holder's distribution rights in the assigned
        territories shall cease in a reasonable time not to
        exceed 60 days.
            (G) It is the intent of this paragraph (18) to
        promote and continue orderly markets. The General
        Assembly finds that in order to preserve Illinois'
        regulatory distribution system, it is necessary to
        create an exception for smaller manufacturers in order
        to afford and allow such smaller manufacturers of beer
        access to the marketplace in order to develop a
        customer base without impairing the integrity of the
        3-tier system.
    (b) On or before April 30, 1999, the Commission shall
present a written report to the Governor and the General
Assembly that shall be based on a study of the impact of this
amendatory Act of 1998 on the business of soliciting, selling,
and shipping alcoholic liquor from outside of this State
directly to residents of this State.
    As part of its report, the Commission shall provide the
following information:
        (i) the amount of State excise and sales tax revenues
    generated as a result of this amendatory Act of 1998;
        (ii) the amount of licensing fees received as a result
    of this amendatory Act of 1998;
        (iii) the number of reported violations, the number of
    cease and desist notices issued by the Commission, the
    number of notices of violations issued to the Department of
    Revenue, and the number of notices and complaints of
    violations to law enforcement officials.
(Source: P.A. 95-634, eff. 6-1-08; 96-179, eff. 8-10-09;
96-446, eff. 1-1-10; 96-1000, eff. 7-2-10.)
 
    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
    Sec. 5-1. Licenses issued by the Illinois Liquor Control
Commission shall be of the following classes:
    (a) Manufacturer's license - Class 1. Distiller, Class 2.
Rectifier, Class 3. Brewer, Class 4. First Class Wine
Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
First Class Winemaker, Class 7. Second Class Winemaker, Class
8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
10. Craft Brewer,
    (b) Distributor's license,
    (c) Importing Distributor's license,
    (d) Retailer's license,
    (e) Special Event Retailer's license (not-for-profit),
    (f) Railroad license,
    (g) Boat license,
    (h) Non-Beverage User's license,
    (i) Wine-maker's premises license,
    (j) Airplane license,
    (k) Foreign importer's license,
    (l) Broker's license,
    (m) Non-resident dealer's license,
    (n) Brew Pub license,
    (o) Auction liquor license,
    (p) Caterer retailer license,
    (q) Special use permit license,
    (r) Winery shipper's license.
    No person, firm, partnership, corporation, or other legal
business entity that is engaged in the manufacturing of wine
may concurrently obtain and hold a wine-maker's license and a
wine manufacturer's license.
    (a) A manufacturer's license shall allow the manufacture,
importation in bulk, storage, distribution and sale of
alcoholic liquor to persons without the State, as may be
permitted by law and to licensees in this State as follows:
    Class 1. A Distiller may make sales and deliveries of
alcoholic liquor to distillers, rectifiers, importing
distributors, distributors and non-beverage users and to no
other licensees.
    Class 2. A Rectifier, who is not a distiller, as defined
herein, may make sales and deliveries of alcoholic liquor to
rectifiers, importing distributors, distributors, retailers
and non-beverage users and to no other licensees.
    Class 3. A Brewer may make sales and deliveries of beer to
importing distributors and , distributors and may make sales as
authorized under subsection (e) of Section 6-4 of this Act , and
to non-licensees, and to retailers provided the brewer obtains
an importing distributor's license or distributor's license in
accordance with the provisions of this Act.
    Class 4. A first class wine-manufacturer may make sales and
deliveries of up to 50,000 gallons of wine to manufacturers,
importing distributors and distributors, and to no other
licensees.
    Class 5. A second class Wine manufacturer may make sales
and deliveries of more than 50,000 gallons of wine to
manufacturers, importing distributors and distributors and to
no other licensees.
    Class 6. A first-class wine-maker's license shall allow the
manufacture of up to 50,000 gallons of wine per year, and the
storage and sale of such wine to distributors in the State and
to persons without the State, as may be permitted by law. A
person who, prior to the effective date of this amendatory Act
of the 95th General Assembly, is a holder of a first-class
wine-maker's license and annually produces more than 25,000
gallons of its own wine and who distributes its wine to
licensed retailers shall cease this practice on or before July
1, 2008 in compliance with this amendatory Act of the 95th
General Assembly.
    Class 7. A second-class wine-maker's license shall allow
the manufacture of between 50,000 and 150,000 gallons of wine
per year, and the storage and sale of such wine to distributors
in this State and to persons without the State, as may be
permitted by law. A person who, prior to the effective date of
this amendatory Act of the 95th General Assembly, is a holder
of a second-class wine-maker's license and annually produces
more than 25,000 gallons of its own wine and who distributes
its wine to licensed retailers shall cease this practice on or
before July 1, 2008 in compliance with this amendatory Act of
the 95th General Assembly.
    Class 8. A limited wine-manufacturer may make sales and
deliveries not to exceed 40,000 gallons of wine per year to
distributors, and to non-licensees in accordance with the
provisions of this Act.
    Class 9. A craft distiller license shall allow the
manufacture of up to 5,000 gallons of spirits by distillation
per year and the storage of such spirits. If a craft distiller
licensee is not affiliated with any other manufacturer, then
the craft distiller licensee may sell such spirits to
distributors in this State and non-licensees to the extent
permitted by any exemption approved by the Commission pursuant
to Section 6-4 of this Act.
    Any craft distiller licensed under this Act who on the
effective date of this amendatory Act of the 96th General
Assembly was licensed as a distiller and manufactured no more
spirits than permitted by this Section shall not be required to
pay the initial licensing fee.
    Class 10. A craft brewer's license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 465,000 gallons of beer
per year. A craft brewer licensee may make sales and deliveries
to importing distributors and distributors and to retail
licensees in accordance with the conditions set forth in
paragraph (18) of subsection (a) of Section 3-12 of this Act.
    (a-1) A manufacturer which is licensed in this State to
make sales or deliveries of alcoholic liquor and which enlists
agents, representatives, or individuals acting on its behalf
who contact licensed retailers on a regular and continual basis
in this State must register those agents, representatives, or
persons acting on its behalf with the State Commission.
    Registration of agents, representatives, or persons acting
on behalf of a manufacturer is fulfilled by submitting a form
to the Commission. The form shall be developed by the
Commission and shall include the name and address of the
applicant, the name and address of the manufacturer he or she
represents, the territory or areas assigned to sell to or
discuss pricing terms of alcoholic liquor, and any other
questions deemed appropriate and necessary. All statements in
the forms required to be made by law or by rule shall be deemed
material, and any person who knowingly misstates any material
fact under oath in an application is guilty of a Class B
misdemeanor. Fraud, misrepresentation, false statements,
misleading statements, evasions, or suppression of material
facts in the securing of a registration are grounds for
suspension or revocation of the registration.
    (b) A distributor's license shall allow the wholesale
purchase and storage of alcoholic liquors and sale of alcoholic
liquors to licensees in this State and to persons without the
State, as may be permitted by law.
    (c) An importing distributor's license may be issued to and
held by those only who are duly licensed distributors, upon the
filing of an application by a duly licensed distributor, with
the Commission and the Commission shall, without the payment of
any fee, immediately issue such importing distributor's
license to the applicant, which shall allow the importation of
alcoholic liquor by the licensee into this State from any point
in the United States outside this State, and the purchase of
alcoholic liquor in barrels, casks or other bulk containers and
the bottling of such alcoholic liquors before resale thereof,
but all bottles or containers so filled shall be sealed,
labeled, stamped and otherwise made to comply with all
provisions, rules and regulations governing manufacturers in
the preparation and bottling of alcoholic liquors. The
importing distributor's license shall permit such licensee to
purchase alcoholic liquor from Illinois licensed non-resident
dealers and foreign importers only.
    (d) A retailer's license shall allow the licensee to sell
and offer for sale at retail, only in the premises specified in
the license, alcoholic liquor for use or consumption, but not
for resale in any form. Nothing in this amendatory Act of the
95th General Assembly shall deny, limit, remove, or restrict
the ability of a holder of a retailer's license to transfer,
deliver, or ship alcoholic liquor to the purchaser for use or
consumption subject to any applicable local law or ordinance.
Any retail license issued to a manufacturer shall only permit
the manufacturer to sell beer at retail on the premises
actually occupied by the manufacturer. For the purpose of
further describing the type of business conducted at a retail
licensed premises, a retailer's licensee may be designated by
the State Commission as (i) an on premise consumption retailer,
(ii) an off premise sale retailer, or (iii) a combined on
premise consumption and off premise sale retailer.
    Notwithstanding any other provision of this subsection
(d), a retail licensee may sell alcoholic liquors to a special
event retailer licensee for resale to the extent permitted
under subsection (e).
    (e) A special event retailer's license (not-for-profit)
shall permit the licensee to purchase alcoholic liquors from an
Illinois licensed distributor (unless the licensee purchases
less than $500 of alcoholic liquors for the special event, in
which case the licensee may purchase the alcoholic liquors from
a licensed retailer) and shall allow the licensee to sell and
offer for sale, at retail, alcoholic liquors for use or
consumption, but not for resale in any form and only at the
location and on the specific dates designated for the special
event in the license. An applicant for a special event retailer
license must (i) furnish with the application: (A) a resale
number issued under Section 2c of the Retailers' Occupation Tax
Act or evidence that the applicant is registered under Section
2a of the Retailers' Occupation Tax Act, (B) a current, valid
exemption identification number issued under Section 1g of the
Retailers' Occupation Tax Act, and a certification to the
Commission that the purchase of alcoholic liquors will be a
tax-exempt purchase, or (C) a statement that the applicant is
not registered under Section 2a of the Retailers' Occupation
Tax Act, does not hold a resale number under Section 2c of the
Retailers' Occupation Tax Act, and does not hold an exemption
number under Section 1g of the Retailers' Occupation Tax Act,
in which event the Commission shall set forth on the special
event retailer's license a statement to that effect; (ii)
submit with the application proof satisfactory to the State
Commission that the applicant will provide dram shop liability
insurance in the maximum limits; and (iii) show proof
satisfactory to the State Commission that the applicant has
obtained local authority approval.
    (f) A railroad license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on a club, buffet, lounge or dining car
operated on an electric, gas or steam railway in this State;
and provided further, that railroad licensees exercising the
above powers shall be subject to all provisions of Article VIII
of this Act as applied to importing distributors. A railroad
license shall also permit the licensee to sell or dispense
alcoholic liquors on any club, buffet, lounge or dining car
operated on an electric, gas or steam railway regularly
operated by a common carrier in this State, but shall not
permit the sale for resale of any alcoholic liquors to any
licensee within this State. A license shall be obtained for
each car in which such sales are made.
    (g) A boat license shall allow the sale of alcoholic liquor
in individual drinks, on any passenger boat regularly operated
as a common carrier on navigable waters in this State or on any
riverboat operated under the Riverboat Gambling Act, which boat
or riverboat maintains a public dining room or restaurant
thereon.
    (h) A non-beverage user's license shall allow the licensee
to purchase alcoholic liquor from a licensed manufacturer or
importing distributor, without the imposition of any tax upon
the business of such licensed manufacturer or importing
distributor as to such alcoholic liquor to be used by such
licensee solely for the non-beverage purposes set forth in
subsection (a) of Section 8-1 of this Act, and such licenses
shall be divided and classified and shall permit the purchase,
possession and use of limited and stated quantities of
alcoholic liquor as follows:
Class 1, not to exceed ......................... 500 gallons
Class 2, not to exceed ....................... 1,000 gallons
Class 3, not to exceed ....................... 5,000 gallons
Class 4, not to exceed ...................... 10,000 gallons
Class 5, not to exceed ....................... 50,000 gallons
    (i) A wine-maker's premises license shall allow a licensee
that concurrently holds a first-class wine-maker's license to
sell and offer for sale at retail in the premises specified in
such license not more than 50,000 gallons of the first-class
wine-maker's wine that is made at the first-class wine-maker's
licensed premises per year for use or consumption, but not for
resale in any form. A wine-maker's premises license shall allow
a licensee who concurrently holds a second-class wine-maker's
license to sell and offer for sale at retail in the premises
specified in such license up to 100,000 gallons of the
second-class wine-maker's wine that is made at the second-class
wine-maker's licensed premises per year for use or consumption
but not for resale in any form. A wine-maker's premises license
shall allow a licensee that concurrently holds a first-class
wine-maker's license or a second-class wine-maker's license to
sell and offer for sale at retail at the premises specified in
the wine-maker's premises license, for use or consumption but
not for resale in any form, any beer, wine, and spirits
purchased from a licensed distributor. Upon approval from the
State Commission, a wine-maker's premises license shall allow
the licensee to sell and offer for sale at (i) the wine-maker's
licensed premises and (ii) at up to 2 additional locations for
use and consumption and not for resale. Each location shall
require additional licensing per location as specified in
Section 5-3 of this Act. A wine-maker's premises licensee shall
secure liquor liability insurance coverage in an amount at
least equal to the maximum liability amounts set forth in
subsection (a) of Section 6-21 of this Act.
    (j) An airplane license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on an airplane; and provided further, that
airplane licensees exercising the above powers shall be subject
to all provisions of Article VIII of this Act as applied to
importing distributors. An airplane licensee shall also permit
the sale or dispensing of alcoholic liquors on any passenger
airplane regularly operated by a common carrier in this State,
but shall not permit the sale for resale of any alcoholic
liquors to any licensee within this State. A single airplane
license shall be required of an airline company if liquor
service is provided on board aircraft in this State. The annual
fee for such license shall be as determined in Section 5-3.
    (k) A foreign importer's license shall permit such licensee
to purchase alcoholic liquor from Illinois licensed
non-resident dealers only, and to import alcoholic liquor other
than in bulk from any point outside the United States and to
sell such alcoholic liquor to Illinois licensed importing
distributors and to no one else in Illinois; provided that (i)
the foreign importer registers with the State Commission every
brand of alcoholic liquor that it proposes to sell to Illinois
licensees during the license period, (ii) the foreign importer
complies with all of the provisions of Section 6-9 of this Act
with respect to registration of such Illinois licensees as may
be granted the right to sell such brands at wholesale, and
(iii) the foreign importer complies with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers.
    (l) (i) A broker's license shall be required of all persons
who solicit orders for, offer to sell or offer to supply
alcoholic liquor to retailers in the State of Illinois, or who
offer to retailers to ship or cause to be shipped or to make
contact with distillers, rectifiers, brewers or manufacturers
or any other party within or without the State of Illinois in
order that alcoholic liquors be shipped to a distributor,
importing distributor or foreign importer, whether such
solicitation or offer is consummated within or without the
State of Illinois.
    No holder of a retailer's license issued by the Illinois
Liquor Control Commission shall purchase or receive any
alcoholic liquor, the order for which was solicited or offered
for sale to such retailer by a broker unless the broker is the
holder of a valid broker's license.
    The broker shall, upon the acceptance by a retailer of the
broker's solicitation of an order or offer to sell or supply or
deliver or have delivered alcoholic liquors, promptly forward
to the Illinois Liquor Control Commission a notification of
said transaction in such form as the Commission may by
regulations prescribe.
    (ii) A broker's license shall be required of a person
within this State, other than a retail licensee, who, for a fee
or commission, promotes, solicits, or accepts orders for
alcoholic liquor, for use or consumption and not for resale, to
be shipped from this State and delivered to residents outside
of this State by an express company, common carrier, or
contract carrier. This Section does not apply to any person who
promotes, solicits, or accepts orders for wine as specifically
authorized in Section 6-29 of this Act.
    A broker's license under this subsection (l) shall not
entitle the holder to buy or sell any alcoholic liquors for his
own account or to take or deliver title to such alcoholic
liquors.
    This subsection (l) shall not apply to distributors,
employees of distributors, or employees of a manufacturer who
has registered the trademark, brand or name of the alcoholic
liquor pursuant to Section 6-9 of this Act, and who regularly
sells such alcoholic liquor in the State of Illinois only to
its registrants thereunder.
    Any agent, representative, or person subject to
registration pursuant to subsection (a-1) of this Section shall
not be eligible to receive a broker's license.
    (m) A non-resident dealer's license shall permit such
licensee to ship into and warehouse alcoholic liquor into this
State from any point outside of this State, and to sell such
alcoholic liquor to Illinois licensed foreign importers and
importing distributors and to no one else in this State;
provided that (i) said non-resident dealer shall register with
the Illinois Liquor Control Commission each and every brand of
alcoholic liquor which it proposes to sell to Illinois
licensees during the license period, (ii) it shall comply with
all of the provisions of Section 6-9 hereof with respect to
registration of such Illinois licensees as may be granted the
right to sell such brands at wholesale, and (iii) the
non-resident dealer shall comply with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers.
    (n) A brew pub license shall allow the licensee (i) to
manufacture beer only on the premises specified in the license,
(ii) to make sales of the beer manufactured on the premises or,
with the approval of the Commission, beer manufactured on
another brew pub licensed premises that is substantially owned
and operated by the same licensee to importing distributors,
distributors, and to non-licensees for use and consumption,
(iii) to store the beer upon the premises, and (iv) to sell and
offer for sale at retail from the licensed premises, provided
that a brew pub licensee shall not sell for off-premises
consumption more than 50,000 gallons per year. A person who
holds a brew pub license may simultaneously hold a craft brewer
license if he or she otherwise qualifies for the craft brewer
license and the craft brewer license is for a location separate
from the brew pub's licensed premises. A brew pub license shall
permit a person who has received prior approval from the
Commission to annually transfer no more than a total of 50,000
gallons of beer manufactured on premises to all other licensed
brew pubs that are substantially owned and operated by the same
person.
    (o) A caterer retailer license shall allow the holder to
serve alcoholic liquors as an incidental part of a food service
that serves prepared meals which excludes the serving of snacks
as the primary meal, either on or off-site whether licensed or
unlicensed.
    (p) An auction liquor license shall allow the licensee to
sell and offer for sale at auction wine and spirits for use or
consumption, or for resale by an Illinois liquor licensee in
accordance with provisions of this Act. An auction liquor
license will be issued to a person and it will permit the
auction liquor licensee to hold the auction anywhere in the
State. An auction liquor license must be obtained for each
auction at least 14 days in advance of the auction date.
    (q) A special use permit license shall allow an Illinois
licensed retailer to transfer a portion of its alcoholic liquor
inventory from its retail licensed premises to the premises
specified in the license hereby created, and to sell or offer
for sale at retail, only in the premises specified in the
license hereby created, the transferred alcoholic liquor for
use or consumption, but not for resale in any form. A special
use permit license may be granted for the following time
periods: one day or less; 2 or more days to a maximum of 15 days
per location in any 12 month period. An applicant for the
special use permit license must also submit with the
application proof satisfactory to the State Commission that the
applicant will provide dram shop liability insurance to the
maximum limits and have local authority approval.
    (r) A winery shipper's license shall allow a person with a
first-class or second-class wine manufacturer's license, a
first-class or second-class wine-maker's license, or a limited
wine manufacturer's license or who is licensed to make wine
under the laws of another state to ship wine made by that
licensee directly to a resident of this State who is 21 years
of age or older for that resident's personal use and not for
resale. Prior to receiving a winery shipper's license, an
applicant for the license must provide the Commission with a
true copy of its current license in any state in which it is
licensed as a manufacturer of wine. An applicant for a winery
shipper's license must also complete an application form that
provides any other information the Commission deems necessary.
The application form shall include an acknowledgement
consenting to the jurisdiction of the Commission, the Illinois
Department of Revenue, and the courts of this State concerning
the enforcement of this Act and any related laws, rules, and
regulations, including authorizing the Department of Revenue
and the Commission to conduct audits for the purpose of
ensuring compliance with this amendatory Act.
    A winery shipper licensee must pay to the Department of
Revenue the State liquor gallonage tax under Section 8-1 for
all wine that is sold by the licensee and shipped to a person
in this State. For the purposes of Section 8-1, a winery
shipper licensee shall be taxed in the same manner as a
manufacturer of wine. A licensee who is not otherwise required
to register under the Retailers' Occupation Tax Act must
register under the Use Tax Act to collect and remit use tax to
the Department of Revenue for all gallons of wine that are sold
by the licensee and shipped to persons in this State. If a
licensee fails to remit the tax imposed under this Act in
accordance with the provisions of Article VIII of this Act, the
winery shipper's license shall be revoked in accordance with
the provisions of Article VII of this Act. If a licensee fails
to properly register and remit tax under the Use Tax Act or the
Retailers' Occupation Tax Act for all wine that is sold by the
winery shipper and shipped to persons in this State, the winery
shipper's license shall be revoked in accordance with the
provisions of Article VII of this Act.
    A winery shipper licensee must collect, maintain, and
submit to the Commission on a semi-annual basis the total
number of cases per resident of wine shipped to residents of
this State. A winery shipper licensed under this subsection (r)
must comply with the requirements of Section 6-29 of this
amendatory Act.
(Source: P.A. 95-331, eff. 8-21-07; 95-634, eff. 6-1-08;
95-769, eff. 7-29-08; 96-1367, eff. 7-28-10.)
 
    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
    Sec. 5-3. License fees. Except as otherwise provided
herein, at the time application is made to the State Commission
for a license of any class, the applicant shall pay to the
State Commission the fee hereinafter provided for the kind of
license applied for.
    The fee for licenses issued by the State Commission shall
be as follows:
    For a manufacturer's license:
    Class 1. Distiller .............................$3,600
    Class 2. Rectifier .............................3,600
    Class 3. Brewer ................................900
    Class 4. First-class Wine Manufacturer .........600
    Class 5. Second-class
        Wine Manufacturer ..........................1,200
    Class 6. First-class wine-maker ................600
    Class 7. Second-class wine-maker ...............1200
    Class 8. Limited Wine Manufacturer..............120
    Class 9. Craft Distiller........................ 1,800
    Class 10. Craft Brewer..........................25
    For a Brew Pub License .........................1,050
    For a caterer retailer's license................200
    For a foreign importer's license ...............25
    For an importing distributor's license .........25
    For a distributor's license ....................270
    For a non-resident dealer's license
        (500,000 gallons or over) ..................270
    For a non-resident dealer's license
        (under 500,000 gallons) ....................90
    For a wine-maker's premises license ............100
    For a winery shipper's license
        (under 250,000 gallons).....................150
    For a winery shipper's license
        (250,000 or over, but under 500,000 gallons).500
    For a winery shipper's license
        (500,000 gallons or over)...................1,000
    For a wine-maker's premises license,
        second location ............................350
    For a wine-maker's premises license,
        third location .............................350
    For a retailer's license .......................500
    For a special event retailer's license,
        (not-for-profit) ...........................25
    For a special use permit license,
        one day only ...............................50
        2 days or more .............................100
    For a railroad license .........................60
    For a boat license .............................180
    For an airplane license, times the
        licensee's maximum number of aircraft
        in flight, serving liquor over the
        State at any given time, which either
        originate, terminate, or make
        an intermediate stop in the State ..........60
    For a non-beverage user's license:
        Class 1 ....................................24
        Class 2 ....................................60
        Class 3 ....................................120
        Class 4 ....................................240
        Class 5 ....................................600
    For a broker's license .........................600
    For an auction liquor license ..................50
    Fees collected under this Section shall be paid into the
Dram Shop Fund. On and after July 1, 2003, of the funds
received for a retailer's license, in addition to the first
$175, an additional $75 shall be paid into the Dram Shop Fund,
and $250 shall be paid into the General Revenue Fund. Beginning
June 30, 1990 and on June 30 of each subsequent year through
June 29, 2003, any balance over $5,000,000 remaining in the
Dram Shop Fund shall be credited to State liquor licensees and
applied against their fees for State liquor licenses for the
following year. The amount credited to each licensee shall be a
proportion of the balance in the Dram Fund that is the same as
the proportion of the license fee paid by the licensee under
this Section for the period in which the balance was
accumulated to the aggregate fees paid by all licensees during
that period.
    No fee shall be paid for licenses issued by the State
Commission to the following non-beverage users:
        (a) Hospitals, sanitariums, or clinics when their use
    of alcoholic liquor is exclusively medicinal, mechanical
    or scientific.
        (b) Universities, colleges of learning or schools when
    their use of alcoholic liquor is exclusively medicinal,
    mechanical or scientific.
        (c) Laboratories when their use is exclusively for the
    purpose of scientific research.
(Source: P.A. 95-634, eff. 6-1-08; 96-1367, eff. 7-28-10.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.