Bill Text: IL HB2399 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Liquor Control Act of 1934. Provides for the registration of third-party providers that ship wine to residents of this State on behalf of winery shippers. With regard to third-party providers, sets forth provisions concerning registration applications; recordkeeping; reporting; and suspending, revoking, or refusing to issue or renew a registration. Provides that a carrier may not deliver to a consumer a package known by the carrier to contain wine unless the consignor is a licensed winery shipper or registered third-party provider and the carrier has verified that license or registration for the current license period. Requires winery shippers, third-party providers, and carriers to file with the Illinois Liquor Control Commission a monthly report containing specified information concerning wine shipments. Provides that the State Commission may suspend, revoke, or refuse to issue or renew a license to manufacture, distribute, or sell alcoholic liquor issued by the State Commission if the State Commission finds, after notice and an opportunity for an evidentiary hearing, that the person holding the license has shipped alcoholic liquor into another state in violation of that state's law. Makes other changes. Amends the Freedom of Information Act to make a conforming change.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB2399 Detail]
Download: Illinois-2023-HB2399-Introduced.html
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1 | AN ACT concerning liquor.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Freedom of Information Act is amended by | |||||||||||||||||||||||||||||||||
5 | changing Section 7.5 as follows:
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6 | (5 ILCS 140/7.5)
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7 | Sec. 7.5. Statutory exemptions. To the extent provided for | |||||||||||||||||||||||||||||||||
8 | by the statutes referenced below, the following shall be | |||||||||||||||||||||||||||||||||
9 | exempt from inspection and copying: | |||||||||||||||||||||||||||||||||
10 | (a) All information determined to be confidential | |||||||||||||||||||||||||||||||||
11 | under Section 4002 of the Technology Advancement and | |||||||||||||||||||||||||||||||||
12 | Development Act. | |||||||||||||||||||||||||||||||||
13 | (b) Library circulation and order records identifying | |||||||||||||||||||||||||||||||||
14 | library users with specific materials under the Library | |||||||||||||||||||||||||||||||||
15 | Records Confidentiality Act. | |||||||||||||||||||||||||||||||||
16 | (c) Applications, related documents, and medical | |||||||||||||||||||||||||||||||||
17 | records received by the Experimental Organ Transplantation | |||||||||||||||||||||||||||||||||
18 | Procedures Board and any and all documents or other | |||||||||||||||||||||||||||||||||
19 | records prepared by the Experimental Organ Transplantation | |||||||||||||||||||||||||||||||||
20 | Procedures Board or its staff relating to applications it | |||||||||||||||||||||||||||||||||
21 | has received. | |||||||||||||||||||||||||||||||||
22 | (d) Information and records held by the Department of | |||||||||||||||||||||||||||||||||
23 | Public Health and its authorized representatives relating |
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1 | to known or suspected cases of sexually transmissible | ||||||
2 | disease or any information the disclosure of which is | ||||||
3 | restricted under the Illinois Sexually Transmissible | ||||||
4 | Disease Control Act. | ||||||
5 | (e) Information the disclosure of which is exempted | ||||||
6 | under Section 30 of the Radon Industry Licensing Act. | ||||||
7 | (f) Firm performance evaluations under Section 55 of | ||||||
8 | the Architectural, Engineering, and Land Surveying | ||||||
9 | Qualifications Based Selection Act. | ||||||
10 | (g) Information the disclosure of which is restricted | ||||||
11 | and exempted under Section 50 of the Illinois Prepaid | ||||||
12 | Tuition Act. | ||||||
13 | (h) Information the disclosure of which is exempted | ||||||
14 | under the State Officials and Employees Ethics Act, and | ||||||
15 | records of any lawfully created State or local inspector | ||||||
16 | general's office that would be exempt if created or | ||||||
17 | obtained by an Executive Inspector General's office under | ||||||
18 | that Act. | ||||||
19 | (i) Information contained in a local emergency energy | ||||||
20 | plan submitted to a municipality in accordance with a | ||||||
21 | local emergency energy plan ordinance that is adopted | ||||||
22 | under Section 11-21.5-5 of the Illinois Municipal Code. | ||||||
23 | (j) Information and data concerning the distribution | ||||||
24 | of surcharge moneys collected and remitted by carriers | ||||||
25 | under the Emergency Telephone System Act. | ||||||
26 | (k) Law enforcement officer identification information |
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1 | or driver identification information compiled by a law | ||||||
2 | enforcement agency or the Department of Transportation | ||||||
3 | under Section 11-212 of the Illinois Vehicle Code. | ||||||
4 | (l) Records and information provided to a residential | ||||||
5 | health care facility resident sexual assault and death | ||||||
6 | review team or the Executive Council under the Abuse | ||||||
7 | Prevention Review Team Act. | ||||||
8 | (m) Information provided to the predatory lending | ||||||
9 | database created pursuant to Article 3 of the Residential | ||||||
10 | Real Property Disclosure Act, except to the extent | ||||||
11 | authorized under that Article. | ||||||
12 | (n) Defense budgets and petitions for certification of | ||||||
13 | compensation and expenses for court appointed trial | ||||||
14 | counsel as provided under Sections 10 and 15 of the | ||||||
15 | Capital Crimes Litigation Act. This subsection (n) shall | ||||||
16 | apply until the conclusion of the trial of the case, even | ||||||
17 | if the prosecution chooses not to pursue the death penalty | ||||||
18 | prior to trial or sentencing. | ||||||
19 | (o) Information that is prohibited from being | ||||||
20 | disclosed under Section 4 of the Illinois Health and | ||||||
21 | Hazardous Substances Registry Act. | ||||||
22 | (p) Security portions of system safety program plans, | ||||||
23 | investigation reports, surveys, schedules, lists, data, or | ||||||
24 | information compiled, collected, or prepared by or for the | ||||||
25 | Department of Transportation under Sections 2705-300 and | ||||||
26 | 2705-616 of the Department of Transportation Law of the |
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1 | Civil Administrative Code of Illinois, the Regional | ||||||
2 | Transportation Authority under Section 2.11 of the | ||||||
3 | Regional Transportation Authority Act, or the St. Clair | ||||||
4 | County Transit District under the Bi-State Transit Safety | ||||||
5 | Act. | ||||||
6 | (q) Information prohibited from being disclosed by the | ||||||
7 | Personnel Record Review Act. | ||||||
8 | (r) Information prohibited from being disclosed by the | ||||||
9 | Illinois School Student Records Act. | ||||||
10 | (s) Information the disclosure of which is restricted | ||||||
11 | under Section 5-108 of the Public Utilities Act.
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12 | (t) All identified or deidentified health information | ||||||
13 | in the form of health data or medical records contained | ||||||
14 | in, stored in, submitted to, transferred by, or released | ||||||
15 | from the Illinois Health Information Exchange, and | ||||||
16 | identified or deidentified health information in the form | ||||||
17 | of health data and medical records of the Illinois Health | ||||||
18 | Information Exchange in the possession of the Illinois | ||||||
19 | Health Information Exchange Office due to its | ||||||
20 | administration of the Illinois Health Information | ||||||
21 | Exchange. The terms "identified" and "deidentified" shall | ||||||
22 | be given the same meaning as in the Health Insurance | ||||||
23 | Portability and Accountability Act of 1996, Public Law | ||||||
24 | 104-191, or any subsequent amendments thereto, and any | ||||||
25 | regulations promulgated thereunder. | ||||||
26 | (u) Records and information provided to an independent |
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1 | team of experts under the Developmental Disability and | ||||||
2 | Mental Health Safety Act (also known as Brian's Law). | ||||||
3 | (v) Names and information of people who have applied | ||||||
4 | for or received Firearm Owner's Identification Cards under | ||||||
5 | the Firearm Owners Identification Card Act or applied for | ||||||
6 | or received a concealed carry license under the Firearm | ||||||
7 | Concealed Carry Act, unless otherwise authorized by the | ||||||
8 | Firearm Concealed Carry Act; and databases under the | ||||||
9 | Firearm Concealed Carry Act, records of the Concealed | ||||||
10 | Carry Licensing Review Board under the Firearm Concealed | ||||||
11 | Carry Act, and law enforcement agency objections under the | ||||||
12 | Firearm Concealed Carry Act. | ||||||
13 | (v-5) Records of the Firearm Owner's Identification | ||||||
14 | Card Review Board that are exempted from disclosure under | ||||||
15 | Section 10 of the Firearm Owners Identification Card Act. | ||||||
16 | (w) Personally identifiable information which is | ||||||
17 | exempted from disclosure under subsection (g) of Section | ||||||
18 | 19.1 of the Toll Highway Act. | ||||||
19 | (x) Information which is exempted from disclosure | ||||||
20 | under Section 5-1014.3 of the Counties Code or Section | ||||||
21 | 8-11-21 of the Illinois Municipal Code. | ||||||
22 | (y) Confidential information under the Adult | ||||||
23 | Protective Services Act and its predecessor enabling | ||||||
24 | statute, the Elder Abuse and Neglect Act, including | ||||||
25 | information about the identity and administrative finding | ||||||
26 | against any caregiver of a verified and substantiated |
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1 | decision of abuse, neglect, or financial exploitation of | ||||||
2 | an eligible adult maintained in the Registry established | ||||||
3 | under Section 7.5 of the Adult Protective Services Act. | ||||||
4 | (z) Records and information provided to a fatality | ||||||
5 | review team or the Illinois Fatality Review Team Advisory | ||||||
6 | Council under Section 15 of the Adult Protective Services | ||||||
7 | Act. | ||||||
8 | (aa) Information which is exempted from disclosure | ||||||
9 | under Section 2.37 of the Wildlife Code. | ||||||
10 | (bb) Information which is or was prohibited from | ||||||
11 | disclosure by the Juvenile Court Act of 1987. | ||||||
12 | (cc) Recordings made under the Law Enforcement | ||||||
13 | Officer-Worn Body Camera Act, except to the extent | ||||||
14 | authorized under that Act. | ||||||
15 | (dd) Information that is prohibited from being | ||||||
16 | disclosed under Section 45 of the Condominium and Common | ||||||
17 | Interest Community Ombudsperson Act. | ||||||
18 | (ee) Information that is exempted from disclosure | ||||||
19 | under Section 30.1 of the Pharmacy Practice Act. | ||||||
20 | (ff) Information that is exempted from disclosure | ||||||
21 | under the Revised Uniform Unclaimed Property Act. | ||||||
22 | (gg) Information that is prohibited from being | ||||||
23 | disclosed under Section 7-603.5 of the Illinois Vehicle | ||||||
24 | Code. | ||||||
25 | (hh) Records that are exempt from disclosure under | ||||||
26 | Section 1A-16.7 of the Election Code. |
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1 | (ii) Information which is exempted from disclosure | ||||||
2 | under Section 2505-800 of the Department of Revenue Law of | ||||||
3 | the Civil Administrative Code of Illinois. | ||||||
4 | (jj) Information and reports that are required to be | ||||||
5 | submitted to the Department of Labor by registering day | ||||||
6 | and temporary labor service agencies but are exempt from | ||||||
7 | disclosure under subsection (a-1) of Section 45 of the Day | ||||||
8 | and Temporary Labor Services Act. | ||||||
9 | (kk) Information prohibited from disclosure under the | ||||||
10 | Seizure and Forfeiture Reporting Act. | ||||||
11 | (ll) Information the disclosure of which is restricted | ||||||
12 | and exempted under Section 5-30.8 of the Illinois Public | ||||||
13 | Aid Code. | ||||||
14 | (mm) Records that are exempt from disclosure under | ||||||
15 | Section 4.2 of the Crime Victims Compensation Act. | ||||||
16 | (nn) Information that is exempt from disclosure under | ||||||
17 | Section 70 of the Higher Education Student Assistance Act. | ||||||
18 | (oo) Communications, notes, records, and reports | ||||||
19 | arising out of a peer support counseling session | ||||||
20 | prohibited from disclosure under the First Responders | ||||||
21 | Suicide Prevention Act. | ||||||
22 | (pp) Names and all identifying information relating to | ||||||
23 | an employee of an emergency services provider or law | ||||||
24 | enforcement agency under the First Responders Suicide | ||||||
25 | Prevention Act. | ||||||
26 | (qq) Information and records held by the Department of |
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1 | Public Health and its authorized representatives collected | ||||||
2 | under the Reproductive Health Act. | ||||||
3 | (rr) Information that is exempt from disclosure under | ||||||
4 | the Cannabis Regulation and Tax Act. | ||||||
5 | (ss) Data reported by an employer to the Department of | ||||||
6 | Human Rights pursuant to Section 2-108 of the Illinois | ||||||
7 | Human Rights Act. | ||||||
8 | (tt) Recordings made under the Children's Advocacy | ||||||
9 | Center Act, except to the extent authorized under that | ||||||
10 | Act. | ||||||
11 | (uu) Information that is exempt from disclosure under | ||||||
12 | Section 50 of the Sexual Assault Evidence Submission Act. | ||||||
13 | (vv) Information that is exempt from disclosure under | ||||||
14 | subsections (f) and (j) of Section 5-36 of the Illinois | ||||||
15 | Public Aid Code. | ||||||
16 | (ww) Information that is exempt from disclosure under | ||||||
17 | Section 16.8 of the State Treasurer Act. | ||||||
18 | (xx) Information that is exempt from disclosure or | ||||||
19 | information that shall not be made public under the | ||||||
20 | Illinois Insurance Code. | ||||||
21 | (yy) Information prohibited from being disclosed under | ||||||
22 | the Illinois Educational Labor Relations Act. | ||||||
23 | (zz) Information prohibited from being disclosed under | ||||||
24 | the Illinois Public Labor Relations Act. | ||||||
25 | (aaa) Information prohibited from being disclosed | ||||||
26 | under Section 1-167 of the Illinois Pension Code. |
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1 | (bbb) Information that is prohibited from disclosure | ||||||
2 | by the Illinois Police Training Act and the Illinois State | ||||||
3 | Police Act. | ||||||
4 | (ccc) Records exempt from disclosure under Section
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5 | 2605-304 of the Illinois State Police Law of the Civil
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6 | Administrative Code of Illinois. | ||||||
7 | (ddd) Information prohibited from being disclosed | ||||||
8 | under Section 35 of the Address Confidentiality for | ||||||
9 | Victims of Domestic Violence, Sexual Assault, Human | ||||||
10 | Trafficking, or Stalking Act. | ||||||
11 | (eee) Information prohibited from being disclosed | ||||||
12 | under subsection (b) of Section 75 of the Domestic | ||||||
13 | Violence Fatality Review Act. | ||||||
14 | (fff) Images from cameras under the Expressway Camera | ||||||
15 | Act. This subsection (fff) is inoperative on and after | ||||||
16 | July 1, 2023. | ||||||
17 | (ggg) Information prohibited from disclosure under | ||||||
18 | paragraph (3) of subsection (a) of Section 14 of the Nurse | ||||||
19 | Agency Licensing Act. | ||||||
20 | (hhh) Information submitted to the Illinois Department | ||||||
21 | of State Police in an affidavit or application for an | ||||||
22 | assault weapon endorsement, assault weapon attachment | ||||||
23 | endorsement, .50 caliber rifle endorsement, or .50 caliber | ||||||
24 | cartridge endorsement under the Firearm Owners | ||||||
25 | Identification Card Act. | ||||||
26 | (iii) Information prohibited from being disclosed |
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1 | under Section 6-28 of the Liquor Control Act of 1934. | ||||||
2 | (Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19; | ||||||
3 | 101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff. | ||||||
4 | 1-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452, | ||||||
5 | eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19; | ||||||
6 | 101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff. | ||||||
7 | 1-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237, | ||||||
8 | eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; | ||||||
9 | 102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. | ||||||
10 | 7-1-22; 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; revised | ||||||
11 | 2-13-23.)
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12 | Section 10. The Liquor Control Act of 1934 is amended by | ||||||
13 | changing Sections 3-12, 5-1, and 6-29 and by adding Sections | ||||||
14 | 1-3.45, 5-8, 7-3.5, and 7-15 as follows:
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15 | (235 ILCS 5/1-3.45 new) | ||||||
16 | Sec. 1-3.45. Third-party provider. "Third-party provider" | ||||||
17 | means any entity that provides fulfillment house services, | ||||||
18 | including warehousing, packaging, distribution, order | ||||||
19 | processing, or shipment of wine, but not the sale of wine, on | ||||||
20 | behalf of a winery shipper.
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21 | (235 ILCS 5/3-12)
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22 | Sec. 3-12. Powers and duties of State Commission.
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23 | (a) The State Commission shall have the following powers, |
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1 | functions, and
duties:
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2 | (1) To receive applications , to register third-party | ||||||
3 | providers, and to issue licenses to manufacturers,
foreign | ||||||
4 | importers, importing distributors, distributors, | ||||||
5 | non-resident dealers,
on premise consumption retailers, | ||||||
6 | off premise sale retailers, special event
retailer | ||||||
7 | licensees, special use permit licenses, auction liquor | ||||||
8 | licenses, brew
pubs, caterer retailers, non-beverage | ||||||
9 | users, railroads, including owners and
lessees of | ||||||
10 | sleeping, dining and cafe cars, airplanes, boats, brokers, | ||||||
11 | and wine
maker's premises licensees in accordance with the | ||||||
12 | provisions of this Act, and
to suspend or revoke such | ||||||
13 | licenses and registrations upon the State Commission's | ||||||
14 | determination,
upon notice after hearing, that a licensee | ||||||
15 | or registrant has violated any provision of this
Act or | ||||||
16 | any rule or regulation issued pursuant thereto and in | ||||||
17 | effect for 30 days
prior to such violation. Except in the | ||||||
18 | case of an action taken pursuant to a
violation of Section | ||||||
19 | 6-3, 6-5, or 6-9, any action by the State Commission to
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20 | suspend or revoke a licensee's license or a registrant's | ||||||
21 | registration may be limited to the license or registration | ||||||
22 | for the
specific premises where the violation occurred.
An | ||||||
23 | action for a violation of this Act shall be commenced by | ||||||
24 | the State Commission within 2 years after the date the | ||||||
25 | State Commission becomes aware of the violation.
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26 | In lieu of suspending or revoking a license or |
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1 | registration , the commission may impose
a fine, upon the | ||||||
2 | State Commission's determination and notice after hearing,
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3 | that a licensee or registrant has violated any provision | ||||||
4 | of this Act or any rule or
regulation issued pursuant | ||||||
5 | thereto and in effect for 30 days prior to such
violation. | ||||||
6 | For the purpose of this paragraph (1), when | ||||||
7 | determining multiple violations for the sale of alcohol to | ||||||
8 | a person under the age of 21, a second or subsequent | ||||||
9 | violation for the sale of alcohol to a person under the age | ||||||
10 | of 21 shall only be considered if it was committed within 5 | ||||||
11 | years after the date when a prior violation for the sale of | ||||||
12 | alcohol to a person under the age of 21 was committed. | ||||||
13 | The fine imposed under this paragraph may not exceed | ||||||
14 | $500 for each
violation. Each day that the activity, which | ||||||
15 | gave rise to the original fine,
continues is a separate | ||||||
16 | violation. The maximum fine that may be levied against
any | ||||||
17 | licensee or registrant , for the period of the license or | ||||||
18 | registration , shall not exceed $20,000.
The maximum | ||||||
19 | penalty that may be imposed on a licensee for selling a | ||||||
20 | bottle of
alcoholic liquor with a foreign object in it or | ||||||
21 | serving from a bottle of
alcoholic liquor with a foreign | ||||||
22 | object in it shall be the destruction of that
bottle of | ||||||
23 | alcoholic liquor for the first 10 bottles so sold or | ||||||
24 | served from by
the licensee. For the eleventh bottle of | ||||||
25 | alcoholic liquor and for each third
bottle thereafter sold | ||||||
26 | or served from by the licensee with a foreign object in
it, |
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1 | the maximum penalty that may be imposed on the licensee is | ||||||
2 | the destruction
of the bottle of alcoholic liquor and a | ||||||
3 | fine of up to $50.
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4 | Any notice issued by the State Commission to a | ||||||
5 | licensee or registrant for a violation of this Act or any | ||||||
6 | notice with respect to settlement or offer in compromise | ||||||
7 | shall include the field report, photographs, and any other | ||||||
8 | supporting documentation necessary to reasonably inform | ||||||
9 | the licensee of the nature and extent of the violation or | ||||||
10 | the conduct alleged to have occurred. The failure to | ||||||
11 | include such required documentation shall result in the | ||||||
12 | dismissal of the action. | ||||||
13 | (2) To adopt such rules and regulations consistent | ||||||
14 | with the
provisions of this Act which shall be necessary | ||||||
15 | to carry on its
functions and duties to the end that the | ||||||
16 | health, safety and welfare of
the People of the State of | ||||||
17 | Illinois shall be protected and temperance in
the | ||||||
18 | consumption of alcoholic liquors shall be fostered and | ||||||
19 | promoted and
to distribute copies of such rules and | ||||||
20 | regulations to all licensees
affected thereby.
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21 | (3) To call upon other administrative departments of | ||||||
22 | the State,
county and municipal governments, county and | ||||||
23 | city police departments and
upon prosecuting officers for | ||||||
24 | such information and assistance as it
deems necessary in | ||||||
25 | the performance of its duties.
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26 | (4) To recommend to local commissioners rules and |
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1 | regulations, not
inconsistent with the law, for the | ||||||
2 | distribution and sale of alcoholic
liquors throughout the | ||||||
3 | State.
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4 | (5) To inspect, or cause to be inspected, any
premises | ||||||
5 | in this State
where alcoholic liquors are manufactured, | ||||||
6 | distributed, warehoused, or
sold. Nothing in this Act
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7 | authorizes an agent of the State Commission to inspect | ||||||
8 | private
areas within the premises without reasonable | ||||||
9 | suspicion or a warrant
during an inspection. "Private | ||||||
10 | areas" include, but are not limited to, safes, personal | ||||||
11 | property, and closed desks.
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12 | (5.1) Upon receipt of a complaint or upon having | ||||||
13 | knowledge that any person
is engaged in business as a | ||||||
14 | manufacturer, importing distributor, distributor,
or | ||||||
15 | retailer without a license or valid license or as a | ||||||
16 | third-party provider without registering with the State | ||||||
17 | Commission , to conduct an investigation. If, after | ||||||
18 | conducting an investigation, the State Commission is | ||||||
19 | satisfied that the alleged conduct occurred or is | ||||||
20 | occurring, it may issue a cease and desist notice as | ||||||
21 | provided in this Act, impose civil penalties as provided | ||||||
22 | in this Act, notify the local liquor
authority, or file a | ||||||
23 | complaint with the State's Attorney's Office of the county
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24 | where the incident occurred or the Attorney General.
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25 | (5.2) Upon receipt of a complaint or upon having | ||||||
26 | knowledge that any person is shipping alcoholic
liquor
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1 | into this State from a point outside of this State if the | ||||||
2 | shipment is in
violation of this Act, to conduct an | ||||||
3 | investigation. If, after conducting an investigation, the | ||||||
4 | State Commission is satisfied that the alleged conduct | ||||||
5 | occurred or is occurring, it may issue a cease and desist | ||||||
6 | notice as provided in this Act, impose civil penalties as | ||||||
7 | provided in this Act, notify the foreign jurisdiction, or | ||||||
8 | file a complaint with the State's Attorney's Office of the | ||||||
9 | county where the incident occurred or the Attorney | ||||||
10 | General.
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11 | (5.3) To receive complaints from licensees, | ||||||
12 | registrants, local officials, law
enforcement agencies, | ||||||
13 | organizations, and persons stating that any licensee or | ||||||
14 | registrant has
been or is violating any provision of this | ||||||
15 | Act or the rules and regulations
issued pursuant to this | ||||||
16 | Act. Such complaints shall be in writing, signed and
sworn | ||||||
17 | to by the person making the complaint, and shall state | ||||||
18 | with specificity
the facts in relation to the alleged | ||||||
19 | violation. If the State Commission has
reasonable grounds | ||||||
20 | to believe that the complaint substantially alleges a
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21 | violation of this Act or rules and regulations adopted | ||||||
22 | pursuant to this Act, it
shall conduct an investigation. | ||||||
23 | If, after conducting an investigation, the
State | ||||||
24 | Commission is satisfied that the alleged violation did | ||||||
25 | occur, it shall proceed
with disciplinary action against | ||||||
26 | the licensee or registrant as provided in this Act.
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1 | (5.4) To make arrests and issue notices of civil | ||||||
2 | violations where necessary for the enforcement of this | ||||||
3 | Act. | ||||||
4 | (5.5) To investigate any and all unlicensed or | ||||||
5 | unregistered activity. | ||||||
6 | (5.6) To impose civil penalties or fines to any person | ||||||
7 | who, without holding a valid license or registration , | ||||||
8 | engages in conduct that requires a license or registration | ||||||
9 | pursuant to this Act, in an amount not to exceed $20,000 | ||||||
10 | for each offense as determined by the State Commission. A | ||||||
11 | civil penalty shall be assessed by the State Commission | ||||||
12 | after a hearing is held in accordance with the provisions | ||||||
13 | set forth in this Act regarding the provision of a hearing | ||||||
14 | for the revocation or suspension of a license or | ||||||
15 | registration . | ||||||
16 | (6) To hear and determine appeals from orders of a | ||||||
17 | local commission
in accordance with the provisions of this | ||||||
18 | Act, as hereinafter set forth.
Hearings under this | ||||||
19 | subsection shall be held in Springfield or Chicago,
at | ||||||
20 | whichever location is the more convenient for the majority | ||||||
21 | of persons
who are parties to the hearing.
| ||||||
22 | (7) The State Commission shall establish uniform | ||||||
23 | systems of accounts to be
kept by all retail licensees | ||||||
24 | having more than 4 employees, and for this
purpose the | ||||||
25 | State Commission may classify all retail licensees having | ||||||
26 | more
than 4 employees and establish a uniform system of |
| |||||||
| |||||||
1 | accounts for each
class and prescribe the manner in which | ||||||
2 | such accounts shall be kept.
The State Commission may also | ||||||
3 | prescribe the forms of accounts to be kept by
all retail | ||||||
4 | licensees having more than 4 employees, including, but not
| ||||||
5 | limited to, accounts of earnings and expenses and any | ||||||
6 | distribution,
payment, or other distribution of earnings | ||||||
7 | or assets, and any other
forms, records, and memoranda | ||||||
8 | which in the judgment of the commission may
be necessary | ||||||
9 | or appropriate to carry out any of the provisions of this
| ||||||
10 | Act, including, but not limited to, such forms, records, | ||||||
11 | and memoranda as
will readily and accurately disclose at | ||||||
12 | all times the beneficial
ownership of such retail licensed | ||||||
13 | business. The accounts, forms,
records, and memoranda | ||||||
14 | shall be available at all reasonable times for
inspection | ||||||
15 | by authorized representatives of the State Commission or | ||||||
16 | by
any local liquor control commissioner or his or her | ||||||
17 | authorized representative.
The commission may, from time | ||||||
18 | to time, alter, amend, or repeal, in whole
or in part, any | ||||||
19 | uniform system of accounts, or the form and manner of
| ||||||
20 | keeping accounts.
| ||||||
21 | (8) In the conduct of any hearing authorized to be | ||||||
22 | held by the State Commission, to appoint, at the | ||||||
23 | commission's discretion, hearing officers
to conduct | ||||||
24 | hearings involving complex issues or issues that will | ||||||
25 | require a
protracted period of time to resolve, to | ||||||
26 | examine, or cause to be examined,
under oath, any licensee |
| |||||||
| |||||||
1 | or registrant , and to examine or cause to be examined the | ||||||
2 | books and
records
of such licensee or registrant ; to hear | ||||||
3 | testimony and take proof material for its
information in | ||||||
4 | the discharge of its duties hereunder; to administer or
| ||||||
5 | cause to be administered oaths; for any such purpose to | ||||||
6 | issue
subpoena or subpoenas to require the attendance of | ||||||
7 | witnesses and the
production of books, which shall be | ||||||
8 | effective in any part of this State, and
to adopt rules to | ||||||
9 | implement its powers under this paragraph (8).
| ||||||
10 | Any circuit court may, by order duly entered,
require | ||||||
11 | the attendance of witnesses and the production of relevant | ||||||
12 | books
subpoenaed by the State Commission and the court may | ||||||
13 | compel
obedience to its order by proceedings for contempt.
| ||||||
14 | (9) To investigate the administration of laws in | ||||||
15 | relation to
alcoholic liquors in this and other states and | ||||||
16 | any foreign countries,
and to recommend from time to time | ||||||
17 | to the Governor and through him or
her to the legislature | ||||||
18 | of this State, such amendments to this Act, if any, as
it | ||||||
19 | may think desirable and as will serve to further the | ||||||
20 | general broad
purposes contained in Section 1-2 hereof.
| ||||||
21 | (10) To adopt such rules and regulations consistent | ||||||
22 | with the
provisions of this Act which shall be necessary | ||||||
23 | for the control, sale, or
disposition of alcoholic liquor | ||||||
24 | damaged as a result of an accident, wreck,
flood, fire, or | ||||||
25 | other similar occurrence.
| ||||||
26 | (11) To develop industry educational programs related |
| |||||||
| |||||||
1 | to responsible
serving and selling, particularly in the | ||||||
2 | areas of overserving consumers and
illegal underage | ||||||
3 | purchasing and consumption of alcoholic beverages.
| ||||||
4 | (11.1) To license persons providing education and | ||||||
5 | training to alcohol
beverage sellers and servers for | ||||||
6 | mandatory and non-mandatory training under the
Beverage | ||||||
7 | Alcohol Sellers and Servers
Education and Training | ||||||
8 | (BASSET) programs and to develop and administer a public
| ||||||
9 | awareness program in Illinois to reduce or eliminate the | ||||||
10 | illegal purchase and
consumption of alcoholic beverage | ||||||
11 | products by persons under the age of 21.
Application for a | ||||||
12 | license shall be made on forms provided by the State
| ||||||
13 | Commission.
| ||||||
14 | (12) To develop and maintain a repository of license | ||||||
15 | and regulatory
information.
| ||||||
16 | (13) (Blank).
| ||||||
17 | (14) On or before April 30, 2008 and every 2 years
| ||||||
18 | thereafter, the State Commission shall present a written
| ||||||
19 | report to the Governor and the General Assembly that shall
| ||||||
20 | be based on a study of the impact of Public Act 95-634 on | ||||||
21 | the business of soliciting,
selling, and shipping wine | ||||||
22 | from inside and outside of this
State directly to | ||||||
23 | residents of this State. As part of its
report, the State | ||||||
24 | Commission shall provide all of the
following information: | ||||||
25 | (A) The amount of State excise and sales tax
| ||||||
26 | revenues generated. |
| |||||||
| |||||||
1 | (B) The amount of licensing fees received. | ||||||
2 | (C) The number of cases of wine shipped from | ||||||
3 | inside
and outside of this State directly to residents | ||||||
4 | of this
State. | ||||||
5 | (D) The number of alcohol compliance operations
| ||||||
6 | conducted. | ||||||
7 | (E) The number of winery shipper's licenses
| ||||||
8 | issued. | ||||||
9 | (F) The number of each of the following: reported
| ||||||
10 | violations; cease and desist notices issued by the
| ||||||
11 | Commission; notices of violations issued by
the | ||||||
12 | Commission and to the Department of Revenue;
and | ||||||
13 | notices and complaints of violations to law
| ||||||
14 | enforcement officials, including, without limitation,
| ||||||
15 | the Illinois Attorney General and the U.S. Department
| ||||||
16 | of Treasury's Alcohol and Tobacco Tax and Trade | ||||||
17 | Bureau. | ||||||
18 | (15) As a means to reduce the underage consumption of
| ||||||
19 | alcoholic liquors, the State Commission shall conduct
| ||||||
20 | alcohol compliance operations to investigate whether
| ||||||
21 | businesses that are soliciting, selling, and shipping wine
| ||||||
22 | from inside or outside of this State directly to residents
| ||||||
23 | of this State are licensed by this State or are selling or
| ||||||
24 | attempting to sell wine to persons under 21 years of age in
| ||||||
25 | violation of this Act. | ||||||
26 | (16) The State Commission shall, in addition to
|
| |||||||
| |||||||
1 | notifying any appropriate law enforcement agency, submit
| ||||||
2 | notices of complaints or violations of Sections 6-29 and
| ||||||
3 | 6-29.1 by persons who do not hold a winery shipper's
| ||||||
4 | license under this Act to the Illinois Attorney General | ||||||
5 | and
to the U.S. Department of Treasury's Alcohol and | ||||||
6 | Tobacco Tax and Trade Bureau. | ||||||
7 | (17)(A) A person licensed to make wine under the laws | ||||||
8 | of another state who has a winery shipper's license under | ||||||
9 | this Act and annually produces less than 25,000 gallons of | ||||||
10 | wine or a person who has a first-class or second-class | ||||||
11 | wine manufacturer's license, a first-class or second-class | ||||||
12 | wine-maker's license, or a limited wine manufacturer's | ||||||
13 | license under this Act and annually produces less than | ||||||
14 | 25,000 gallons of wine may make application to the | ||||||
15 | Commission for a self-distribution exemption to allow the | ||||||
16 | sale of not more than 5,000 gallons of the exemption | ||||||
17 | holder's wine to retail licensees per year and to sell | ||||||
18 | cider, mead, or both cider and mead to brewers, class 1 | ||||||
19 | brewers, class 2 brewers, and class 3 brewers that, | ||||||
20 | pursuant to subsection (e) of Section 6-4 of this Act, | ||||||
21 | sell beer, cider, mead, or any combination thereof to | ||||||
22 | non-licensees at their breweries. | ||||||
23 | (B) In the application, which shall be sworn under | ||||||
24 | penalty of perjury, such person shall state (1) the date | ||||||
25 | it was established; (2) its volume of production and sales | ||||||
26 | for each year since its establishment; (3) its efforts to |
| |||||||
| |||||||
1 | establish distributor relationships; (4) that a | ||||||
2 | self-distribution exemption is necessary to facilitate the | ||||||
3 | marketing of its wine; and (5) that it will comply with the | ||||||
4 | liquor and revenue laws of the United States, this State, | ||||||
5 | and any other state where it is licensed. | ||||||
6 | (C) The State Commission shall approve the application | ||||||
7 | for a self-distribution exemption if such person: (1) is | ||||||
8 | in compliance with State revenue and liquor laws; (2) is | ||||||
9 | not a member of any affiliated group that produces | ||||||
10 | directly or indirectly more than 25,000 gallons of wine | ||||||
11 | per annum, 930,000 gallons of beer per annum, or 50,000 | ||||||
12 | gallons of spirits per annum; (3) will not annually | ||||||
13 | produce for sale more than 25,000 gallons of wine, 930,000 | ||||||
14 | gallons of beer, or 50,000 gallons of spirits; and (4) | ||||||
15 | will not annually sell more than 5,000 gallons of its wine | ||||||
16 | to retail licensees. | ||||||
17 | (D) A self-distribution exemption holder shall | ||||||
18 | annually certify to the State Commission its production of | ||||||
19 | wine in the previous 12 months and its anticipated | ||||||
20 | production and sales for the next 12 months. The State | ||||||
21 | Commission may fine, suspend, or revoke a | ||||||
22 | self-distribution exemption after a hearing if it finds | ||||||
23 | that the exemption holder has made a material | ||||||
24 | misrepresentation in its application, violated a revenue | ||||||
25 | or liquor law of Illinois, exceeded production of 25,000 | ||||||
26 | gallons of wine, 930,000 gallons of beer, or 50,000 |
| |||||||
| |||||||
1 | gallons of spirits in any calendar year, or become part of | ||||||
2 | an affiliated group producing more than 25,000 gallons of | ||||||
3 | wine, 930,000 gallons of beer, or 50,000 gallons of | ||||||
4 | spirits. | ||||||
5 | (E) Except in hearings for violations of this Act or | ||||||
6 | Public Act 95-634 or a bona fide investigation by duly | ||||||
7 | sworn law enforcement officials, the State Commission, or | ||||||
8 | its agents, the State Commission shall maintain the | ||||||
9 | production and sales information of a self-distribution | ||||||
10 | exemption holder as confidential and shall not release | ||||||
11 | such information to any person. | ||||||
12 | (F) The State Commission shall issue regulations | ||||||
13 | governing self-distribution exemptions consistent with | ||||||
14 | this Section and this Act. | ||||||
15 | (G) Nothing in this paragraph (17) shall prohibit a | ||||||
16 | self-distribution exemption holder from entering into or | ||||||
17 | simultaneously having a distribution agreement with a | ||||||
18 | licensed Illinois distributor. | ||||||
19 | (H) It is the intent of this paragraph (17) to promote | ||||||
20 | and continue orderly markets. The General Assembly finds | ||||||
21 | that, in order to preserve Illinois' regulatory | ||||||
22 | distribution system, it is necessary to create an | ||||||
23 | exception for smaller makers of wine as their wines are | ||||||
24 | frequently adjusted in varietals, mixes, vintages, and | ||||||
25 | taste to find and create market niches sometimes too small | ||||||
26 | for distributor or importing distributor business |
| |||||||
| |||||||
1 | strategies. Limited self-distribution rights will afford | ||||||
2 | and allow smaller makers of wine access to the marketplace | ||||||
3 | in order to develop a customer base without impairing the | ||||||
4 | integrity of the 3-tier system.
| ||||||
5 | (18)(A) A class 1 brewer licensee, who must also be | ||||||
6 | either a licensed brewer or licensed non-resident dealer | ||||||
7 | and annually manufacture less than 930,000 gallons of | ||||||
8 | beer, may make application to the State Commission for a | ||||||
9 | self-distribution exemption to allow the sale of not more | ||||||
10 | than 232,500 gallons per year of the exemption holder's | ||||||
11 | beer to retail licensees and to brewers, class 1 brewers, | ||||||
12 | and class 2 brewers that, pursuant to subsection (e) of | ||||||
13 | Section 6-4 of this Act, sell beer, cider, mead, or any | ||||||
14 | combination thereof to non-licensees at their breweries. | ||||||
15 | (B) In the application, which shall be sworn under | ||||||
16 | penalty of perjury, the class 1 brewer licensee shall | ||||||
17 | state (1) the date it was established; (2) its volume of | ||||||
18 | beer manufactured and sold for each year since its | ||||||
19 | establishment; (3) its efforts to establish distributor | ||||||
20 | relationships; (4) that a self-distribution exemption is | ||||||
21 | necessary to facilitate the marketing of its beer; and (5) | ||||||
22 | that it will comply with the alcoholic beverage and | ||||||
23 | revenue laws of the United States, this State, and any | ||||||
24 | other state where it is licensed. | ||||||
25 | (C) Any application submitted shall be posted on the | ||||||
26 | State Commission's website at least 45 days prior to |
| |||||||
| |||||||
1 | action by the State Commission. The State Commission shall | ||||||
2 | approve the application for a self-distribution exemption | ||||||
3 | if the class 1 brewer licensee: (1) is in compliance with | ||||||
4 | the State, revenue, and alcoholic beverage laws; (2) is | ||||||
5 | not a member of any affiliated group that manufactures, | ||||||
6 | directly or indirectly, more than 930,000 gallons of beer | ||||||
7 | per annum, 25,000 gallons of wine per annum, or 50,000 | ||||||
8 | gallons of spirits per annum; (3) shall not annually | ||||||
9 | manufacture for sale more than 930,000 gallons of beer, | ||||||
10 | 25,000 gallons of wine, or 50,000 gallons of spirits; (4) | ||||||
11 | shall not annually sell more than 232,500 gallons of its | ||||||
12 | beer to retail licensees and class 3 brewers and to | ||||||
13 | brewers, class 1 brewers, and class 2 brewers that, | ||||||
14 | pursuant to subsection (e) of Section 6-4 of this Act, | ||||||
15 | sell beer, cider, mead, or any combination thereof to | ||||||
16 | non-licensees at their breweries; and (5) has relinquished | ||||||
17 | any brew pub license held by the licensee, including any | ||||||
18 | ownership interest it held in the licensed brew pub. | ||||||
19 | (D) A self-distribution exemption holder shall | ||||||
20 | annually certify to the State Commission its manufacture | ||||||
21 | of beer during the previous 12 months and its anticipated | ||||||
22 | manufacture and sales of beer for the next 12 months. The | ||||||
23 | State Commission may fine, suspend, or revoke a | ||||||
24 | self-distribution exemption after a hearing if it finds | ||||||
25 | that the exemption holder has made a material | ||||||
26 | misrepresentation in its application, violated a revenue |
| |||||||
| |||||||
1 | or alcoholic beverage law of Illinois, exceeded the | ||||||
2 | manufacture of 930,000 gallons of beer, 25,000 gallons of | ||||||
3 | wine, or 50,000 gallons of spirits in any calendar year or | ||||||
4 | became part of an affiliated group manufacturing more than | ||||||
5 | 930,000 gallons of beer, 25,000 gallons of wine, or 50,000 | ||||||
6 | gallons of spirits. | ||||||
7 | (E) The State Commission shall issue rules and | ||||||
8 | regulations governing self-distribution exemptions | ||||||
9 | consistent with this Act. | ||||||
10 | (F) Nothing in this paragraph (18) shall prohibit a | ||||||
11 | self-distribution exemption holder from entering into or | ||||||
12 | simultaneously having a distribution agreement with a | ||||||
13 | licensed Illinois importing distributor or a distributor. | ||||||
14 | If a self-distribution exemption holder enters into a | ||||||
15 | distribution agreement and has assigned distribution | ||||||
16 | rights to an importing distributor or distributor, then | ||||||
17 | the self-distribution exemption holder's distribution | ||||||
18 | rights in the assigned territories shall cease in a | ||||||
19 | reasonable time not to exceed 60 days. | ||||||
20 | (G) It is the intent of this paragraph (18) to promote | ||||||
21 | and continue orderly markets. The General Assembly finds | ||||||
22 | that in order to preserve Illinois' regulatory | ||||||
23 | distribution system, it is necessary to create an | ||||||
24 | exception for smaller manufacturers in order to afford and | ||||||
25 | allow such smaller manufacturers of beer access to the | ||||||
26 | marketplace in order to develop a customer base without |
| |||||||
| |||||||
1 | impairing the integrity of the 3-tier system. | ||||||
2 | (19)(A) A class 1 craft distiller licensee or a | ||||||
3 | non-resident dealer who manufactures less than 50,000 | ||||||
4 | gallons of distilled spirits per year may make application | ||||||
5 | to the State Commission for a self-distribution exemption | ||||||
6 | to allow the sale of not more
than 5,000 gallons of the | ||||||
7 | exemption holder's spirits to retail licensees per year. | ||||||
8 | (B) In the application, which shall be sworn under | ||||||
9 | penalty of perjury, the class 1 craft distiller licensee | ||||||
10 | or non-resident dealer shall state (1) the date it was | ||||||
11 | established; (2) its volume of spirits manufactured and | ||||||
12 | sold for each year since its establishment; (3) its | ||||||
13 | efforts to establish distributor relationships; (4) that a | ||||||
14 | self-distribution exemption is necessary to facilitate the | ||||||
15 | marketing of its spirits; and (5) that it will comply with | ||||||
16 | the alcoholic beverage and revenue laws of the United | ||||||
17 | States, this State, and any other state where it is | ||||||
18 | licensed. | ||||||
19 | (C) Any application submitted shall be posted on the | ||||||
20 | State Commission's website at least 45 days prior to | ||||||
21 | action by the State Commission. The State Commission shall | ||||||
22 | approve the application for a self-distribution exemption | ||||||
23 | if the applicant: (1) is in compliance with State revenue | ||||||
24 | and alcoholic beverage laws; (2) is not a member of any | ||||||
25 | affiliated group that produces more than 50,000 gallons of | ||||||
26 | spirits per annum, 930,000 gallons of beer per annum, or |
| |||||||
| |||||||
1 | 25,000 gallons of wine per annum; (3) does not annually | ||||||
2 | manufacture for sale more than 50,000 gallons of spirits, | ||||||
3 | 930,000 gallons of beer, or 25,000 gallons of wine; and | ||||||
4 | (4) does not annually sell more than 5,000 gallons of its | ||||||
5 | spirits to retail licensees. | ||||||
6 | (D) A self-distribution exemption holder shall | ||||||
7 | annually certify to the State Commission its manufacture | ||||||
8 | of spirits during the previous 12 months and its | ||||||
9 | anticipated manufacture and sales of spirits for the next | ||||||
10 | 12 months. The State Commission may fine, suspend, or | ||||||
11 | revoke a self-distribution exemption after a hearing if it | ||||||
12 | finds that the exemption holder has made a material | ||||||
13 | misrepresentation in its application, violated a revenue | ||||||
14 | or alcoholic beverage law of Illinois, exceeded the | ||||||
15 | manufacture of 50,000 gallons of spirits, 930,000 gallons | ||||||
16 | of beer, or 25,000 gallons of wine in any calendar year, or | ||||||
17 | has become part of an affiliated group manufacturing more | ||||||
18 | than 50,000 gallons of spirits, 930,000 gallons of beer, | ||||||
19 | or 25,000 gallons of wine. | ||||||
20 | (E) The State Commission shall adopt rules governing | ||||||
21 | self-distribution exemptions consistent with this Act. | ||||||
22 | (F) Nothing in this paragraph (19) shall prohibit a | ||||||
23 | self-distribution exemption holder from entering into or | ||||||
24 | simultaneously having a distribution agreement with a | ||||||
25 | licensed Illinois importing distributor or a distributor. | ||||||
26 | (G) It is the intent of this paragraph (19) to promote |
| |||||||
| |||||||
1 | and continue orderly markets. The General Assembly finds | ||||||
2 | that in order to preserve Illinois' regulatory | ||||||
3 | distribution system, it is necessary to create an | ||||||
4 | exception for smaller manufacturers in order to afford and | ||||||
5 | allow such smaller manufacturers of spirits access to the | ||||||
6 | marketplace in order to develop a customer base without | ||||||
7 | impairing the
integrity of the 3-tier system. | ||||||
8 | (20)(A) A class 3 brewer licensee who must manufacture | ||||||
9 | less than 465,000 gallons of beer in the aggregate and not | ||||||
10 | more than 155,000 gallons at any single brewery premises | ||||||
11 | may make application to the State Commission for a | ||||||
12 | self-distribution exemption to allow the sale of not more | ||||||
13 | than 6,200 gallons of beer from each in-state or | ||||||
14 | out-of-state class 3 brewery premises, which shall not | ||||||
15 | exceed 18,600 gallons annually in the aggregate, that is | ||||||
16 | manufactured at a wholly owned class 3 brewer's in-state | ||||||
17 | or out-of-state licensed premises to retail licensees and | ||||||
18 | class 3 brewers and to brewers, class 1 brewers, class 2 | ||||||
19 | brewers that, pursuant to subsection (e) of Section 6-4, | ||||||
20 | sell beer, cider, or both beer and cider to non-licensees | ||||||
21 | at their licensed breweries. | ||||||
22 | (B) In the application, which shall be sworn under | ||||||
23 | penalty of perjury, the class 3 brewer licensee shall | ||||||
24 | state: | ||||||
25 | (1) the date it was established; | ||||||
26 | (2) its volume of beer manufactured and sold for |
| |||||||
| |||||||
1 | each year since its establishment; | ||||||
2 | (3) its efforts to establish distributor | ||||||
3 | relationships; | ||||||
4 | (4) that a self-distribution exemption is | ||||||
5 | necessary to facilitate the marketing of its beer; and | ||||||
6 | (5) that it will comply with the alcoholic | ||||||
7 | beverage and revenue laws of the United States, this | ||||||
8 | State, and any other state where it is licensed. | ||||||
9 | (C) Any application submitted shall be posted on the | ||||||
10 | State Commission's website at least 45 days before action | ||||||
11 | by the State Commission. The State Commission shall | ||||||
12 | approve the application for a self-distribution exemption | ||||||
13 | if the class 3 brewer licensee: (1) is in compliance with | ||||||
14 | the State, revenue, and alcoholic beverage laws; (2) is | ||||||
15 | not a member of any affiliated group that manufacturers, | ||||||
16 | directly or indirectly, more than 465,000 gallons of beer | ||||||
17 | per annum; (3) shall not annually manufacture for sale | ||||||
18 | more than 465,000 gallons of beer or more than 155,000 | ||||||
19 | gallons at any single brewery premises; and (4) shall not | ||||||
20 | annually sell more than 6,200 gallons of beer from each | ||||||
21 | in-state or out-of-state class 3 brewery premises, and | ||||||
22 | shall not exceed 18,600 gallons annually in the aggregate, | ||||||
23 | to retail licensees and class 3 brewers and to brewers, | ||||||
24 | class 1 brewers, and class 2 brewers that, pursuant to | ||||||
25 | subsection (e) of Section 6-4 of this Act, sell beer, | ||||||
26 | cider, or both beer and cider to non-licensees at their |
| |||||||
| |||||||
1 | breweries. | ||||||
2 | (D) A self-distribution exemption holder shall | ||||||
3 | annually certify to the State Commission its manufacture | ||||||
4 | of beer during the previous 12 months and its anticipated | ||||||
5 | manufacture and sales of beer for the next 12 months. The | ||||||
6 | State Commission may fine, suspend, or revoke a | ||||||
7 | self-distribution exemption after a hearing if it finds | ||||||
8 | that the exemption holder has made a material | ||||||
9 | misrepresentation in its application, violated a revenue | ||||||
10 | or alcoholic beverage law of Illinois, exceeded the | ||||||
11 | manufacture of 465,000 gallons of beer in any calendar | ||||||
12 | year or became part of an affiliated group manufacturing | ||||||
13 | more than 465,000 gallons of beer, or exceeded the sale to | ||||||
14 | retail licensees, brewers, class 1 brewers, class 2 | ||||||
15 | brewers, and class 3 brewers of 6,200 gallons per brewery | ||||||
16 | location or 18,600 gallons in the aggregate. | ||||||
17 | (E) The State Commission may adopt rules governing | ||||||
18 | self-distribution exemptions consistent with this Act. | ||||||
19 | (F) Nothing in this paragraph shall prohibit a | ||||||
20 | self-distribution exemption holder from entering into or | ||||||
21 | simultaneously having a distribution agreement with a | ||||||
22 | licensed Illinois importing distributor or a distributor. | ||||||
23 | If a self-distribution exemption holder enters into a | ||||||
24 | distribution agreement and has assigned distribution | ||||||
25 | rights to an importing distributor or distributor, then | ||||||
26 | the self-distribution exemption holder's distribution |
| |||||||
| |||||||
1 | rights in the assigned territories shall cease in a | ||||||
2 | reasonable time not to exceed 60 days. | ||||||
3 | (G) It is the intent of this paragraph to promote and | ||||||
4 | continue orderly markets. The General Assembly finds that | ||||||
5 | in order to preserve Illinois' regulatory distribution | ||||||
6 | system, it is necessary to create an exception for smaller | ||||||
7 | manufacturers in order to afford and allow such smaller | ||||||
8 | manufacturers of beer access to the marketplace in order | ||||||
9 | to develop a customer base without impairing the integrity | ||||||
10 | of the 3-tier system. | ||||||
11 | (b) On or before April 30, 1999, the Commission shall | ||||||
12 | present a written
report to the Governor and the General | ||||||
13 | Assembly that shall be based on a study
of the impact of Public | ||||||
14 | Act 90-739 on the business of soliciting,
selling, and | ||||||
15 | shipping
alcoholic liquor from outside of this State directly | ||||||
16 | to residents of this
State.
| ||||||
17 | As part of its report, the Commission shall provide the | ||||||
18 | following
information:
| ||||||
19 | (i) the amount of State excise and sales tax revenues | ||||||
20 | generated as a
result of Public Act 90-739;
| ||||||
21 | (ii) the amount of licensing fees received as a result | ||||||
22 | of Public Act 90-739;
| ||||||
23 | (iii) the number of reported violations, the number of | ||||||
24 | cease and desist
notices issued by the Commission, the | ||||||
25 | number of notices of violations issued
to the Department | ||||||
26 | of Revenue, and the number of notices and complaints of
|
| |||||||
| |||||||
1 | violations to law enforcement officials.
| ||||||
2 | (Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19; | ||||||
3 | 101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff. | ||||||
4 | 8-20-21; 102-813, eff. 5-13-22.)
| ||||||
5 | (235 ILCS 5/5-1) (from Ch. 43, par. 115) | ||||||
6 | Sec. 5-1. Licenses issued by the Illinois Liquor Control | ||||||
7 | Commission
shall be of the following classes: | ||||||
8 | (a) Manufacturer's license - Class 1.
Distiller, Class 2. | ||||||
9 | Rectifier, Class 3. Brewer, Class 4. First Class Wine
| ||||||
10 | Manufacturer, Class 5. Second Class Wine Manufacturer, Class | ||||||
11 | 6. First Class Winemaker, Class 7. Second Class Winemaker, | ||||||
12 | Class 8.
Limited Wine Manufacturer, Class 9. Craft Distiller, | ||||||
13 | Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft | ||||||
14 | Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer, | ||||||
15 | Class 14. Class 3 Brewer, | ||||||
16 | (b) Distributor's license, | ||||||
17 | (c) Importing Distributor's license, | ||||||
18 | (d) Retailer's license, | ||||||
19 | (e) Special Event Retailer's license (not-for-profit), | ||||||
20 | (f) Railroad license, | ||||||
21 | (g) Boat license, | ||||||
22 | (h) Non-Beverage User's license, | ||||||
23 | (i) Wine-maker's premises license, | ||||||
24 | (j) Airplane license, | ||||||
25 | (k) Foreign importer's license, |
| |||||||
| |||||||
1 | (l) Broker's license, | ||||||
2 | (m) Non-resident dealer's
license, | ||||||
3 | (n) Brew Pub license, | ||||||
4 | (o) Auction liquor license, | ||||||
5 | (p) Caterer retailer license, | ||||||
6 | (q) Special use permit license, | ||||||
7 | (r) Winery shipper's license, | ||||||
8 | (s) Craft distiller tasting permit, | ||||||
9 | (t) Brewer warehouse permit, | ||||||
10 | (u) Distilling pub license, | ||||||
11 | (v) Craft distiller warehouse permit, | ||||||
12 | (w) Beer showcase permit. | ||||||
13 | No
person, firm, partnership, corporation, or other legal | ||||||
14 | business entity that is
engaged in the manufacturing of wine | ||||||
15 | may concurrently obtain and hold a
wine-maker's license and a | ||||||
16 | wine manufacturer's license. | ||||||
17 | (a) A manufacturer's license shall allow the manufacture,
| ||||||
18 | importation in bulk, storage, distribution and sale of | ||||||
19 | alcoholic liquor
to persons without the State, as may be | ||||||
20 | permitted by law and to licensees
in this State as follows: | ||||||
21 | Class 1. A Distiller may make sales and deliveries of | ||||||
22 | alcoholic liquor to
distillers, rectifiers, importing | ||||||
23 | distributors, distributors and
non-beverage users and to no | ||||||
24 | other licensees. | ||||||
25 | Class 2. A Rectifier, who is not a distiller, as defined | ||||||
26 | herein, may make
sales and deliveries of alcoholic liquor to |
| |||||||
| |||||||
1 | rectifiers, importing distributors,
distributors, retailers | ||||||
2 | and non-beverage users and to no other licensees. | ||||||
3 | Class 3. A Brewer may make sales and deliveries of beer to | ||||||
4 | importing
distributors and distributors and may make sales as | ||||||
5 | authorized under subsection (e) of Section 6-4 of this Act, | ||||||
6 | including any alcoholic liquor that subsection (e) of Section | ||||||
7 | 6-4 authorizes a brewer to sell in its original package only to | ||||||
8 | a non-licensee for pick-up by a non-licensee either within the | ||||||
9 | interior of the brewery premises or at outside of the brewery | ||||||
10 | premises at a curb-side or parking lot adjacent to the brewery | ||||||
11 | premises, subject to any local ordinance. | ||||||
12 | Class 4. A first class wine-manufacturer may make sales | ||||||
13 | and deliveries of
up to 50,000 gallons of wine to | ||||||
14 | manufacturers,
importing
distributors and distributors, and to | ||||||
15 | no other licensees. If a first-class wine-manufacturer | ||||||
16 | manufactures beer, it shall also obtain and shall only be | ||||||
17 | eligible for, in addition to any current license, a class 1 | ||||||
18 | brewer license, shall not manufacture more than 930,000 | ||||||
19 | gallons of beer per year, and shall not be a member of or | ||||||
20 | affiliated with, directly or indirectly, a manufacturer that | ||||||
21 | produces more than 930,000 gallons of beer per year. If the | ||||||
22 | first-class wine-manufacturer manufactures spirits, it shall | ||||||
23 | also obtain and shall only be eligible for, in addition to any | ||||||
24 | current license, a class 1 craft distiller license, shall not | ||||||
25 | manufacture more than 50,000 gallons of spirits per year, and | ||||||
26 | shall not be a member of or affiliated with, directly or |
| |||||||
| |||||||
1 | indirectly, a manufacturer that produces more than 50,000 | ||||||
2 | gallons of spirits per year. A first-class wine-manufacturer | ||||||
3 | shall be permitted to sell wine manufactured at the | ||||||
4 | first-class wine-manufacturer premises to non-licensees. | ||||||
5 | Class 5. A second class Wine manufacturer may make sales | ||||||
6 | and deliveries
of more than 50,000 gallons of wine to | ||||||
7 | manufacturers, importing distributors
and distributors and to | ||||||
8 | no other licensees. | ||||||
9 | Class 6. A first-class wine-maker's license shall allow | ||||||
10 | the manufacture
of up to 50,000 gallons of wine per year, and | ||||||
11 | the
storage
and sale of such
wine to distributors in the State | ||||||
12 | and to persons without the
State, as may be permitted by law. A | ||||||
13 | person who, prior to June 1, 2008 (the effective date of Public | ||||||
14 | Act 95-634), is a holder of a first-class wine-maker's license | ||||||
15 | and annually produces more than 25,000 gallons of its own wine | ||||||
16 | and who distributes its wine to licensed retailers shall cease | ||||||
17 | this practice on or before July 1, 2008 in compliance with | ||||||
18 | Public Act 95-634. If a first-class wine-maker manufactures | ||||||
19 | beer, it shall also obtain and shall only be eligible for, in | ||||||
20 | addition to any current license, a class 1 brewer license, | ||||||
21 | shall not manufacture more than 930,000 gallons of beer per | ||||||
22 | year, and shall not be a member of or affiliated with, directly | ||||||
23 | or indirectly, a manufacturer that produces more than 930,000 | ||||||
24 | gallons of beer per year. If the first-class wine-maker | ||||||
25 | manufactures spirits, it shall also obtain and shall only be | ||||||
26 | eligible for, in addition to any current license, a class 1 |
| |||||||
| |||||||
1 | craft distiller license, shall not manufacture more than | ||||||
2 | 50,000 gallons of spirits per year, and shall not be a member | ||||||
3 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
4 | that produces more than 50,000 gallons of spirits per year. A | ||||||
5 | first-class wine-maker holding a class 1 brewer license or a | ||||||
6 | class 1 craft distiller license shall not be eligible for a | ||||||
7 | wine-maker's premises license but shall be permitted to sell | ||||||
8 | wine manufactured at the first-class wine-maker premises to | ||||||
9 | non-licensees. | ||||||
10 | Class 7. A second-class wine-maker's license shall allow | ||||||
11 | the manufacture
of up to 150,000 gallons of wine per year, and
| ||||||
12 | the
storage and sale of such wine
to distributors in this State | ||||||
13 | and to persons without the State, as may be
permitted by law. A | ||||||
14 | person who, prior to June 1, 2008 (the effective date of Public | ||||||
15 | Act 95-634), is a holder of a second-class wine-maker's | ||||||
16 | license and annually produces more than 25,000 gallons of its | ||||||
17 | own wine and who distributes its wine to licensed retailers | ||||||
18 | shall cease this practice on or before July 1, 2008 in | ||||||
19 | compliance with Public Act 95-634. If a second-class | ||||||
20 | wine-maker manufactures beer, it shall also obtain and shall | ||||||
21 | only be eligible for, in addition to any current license, a | ||||||
22 | class 2 brewer license, shall not manufacture more than | ||||||
23 | 3,720,000 gallons of beer per year, and shall not be a member | ||||||
24 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
25 | that produces more than 3,720,000 gallons of beer per year. If | ||||||
26 | a second-class wine-maker manufactures spirits, it shall also |
| |||||||
| |||||||
1 | obtain and shall only be eligible for, in addition to any | ||||||
2 | current license, a class 2 craft distiller license, shall not | ||||||
3 | manufacture more than 100,000 gallons of spirits per year, and | ||||||
4 | shall not be a member of or affiliated with, directly or | ||||||
5 | indirectly, a manufacturer that produces more than 100,000 | ||||||
6 | gallons of spirits per year. | ||||||
7 | Class 8. A limited wine-manufacturer may make sales and | ||||||
8 | deliveries not to
exceed 40,000 gallons of wine per year to | ||||||
9 | distributors, and to
non-licensees in accordance with the | ||||||
10 | provisions of this Act. | ||||||
11 | Class 9. A craft distiller license, which may only be held | ||||||
12 | by a class 1 craft distiller licensee or class 2 craft | ||||||
13 | distiller licensee but not held by both a class 1 craft | ||||||
14 | distiller licensee and a class 2 craft distiller licensee, | ||||||
15 | shall grant all rights conveyed by either: (i) a class 1 craft | ||||||
16 | distiller license if the craft distiller holds a class 1 craft | ||||||
17 | distiller license; or (ii) a class 2 craft distiller licensee | ||||||
18 | if the craft distiller holds a class 2 craft distiller | ||||||
19 | license. | ||||||
20 | Class 10. A class 1 craft distiller license, which may | ||||||
21 | only be issued to a licensed craft distiller or licensed | ||||||
22 | non-resident dealer, shall allow the manufacture of up to | ||||||
23 | 50,000 gallons of spirits per year provided that the class 1 | ||||||
24 | craft distiller licensee does not manufacture more than a | ||||||
25 | combined 50,000 gallons of spirits per year and is not a member | ||||||
26 | of or affiliated with, directly or indirectly, a manufacturer |
| |||||||
| |||||||
1 | that produces more than 50,000 gallons of spirits per year. If | ||||||
2 | a class 1 craft distiller manufactures beer, it shall also | ||||||
3 | obtain and shall only be eligible for, in addition to any | ||||||
4 | current license, a class 1 brewer license, shall not | ||||||
5 | manufacture more than 930,000 gallons of beer per year, and | ||||||
6 | shall not be a member of or affiliated with, directly or | ||||||
7 | indirectly, a manufacturer that produces more than 930,000 | ||||||
8 | gallons of beer per year. If a class 1 craft distiller | ||||||
9 | manufactures wine, it shall also obtain and shall only be | ||||||
10 | eligible for, in addition to any current license, a | ||||||
11 | first-class wine-manufacturer license or a first-class | ||||||
12 | wine-maker's license, shall not manufacture more than 50,000 | ||||||
13 | gallons of wine per year, and shall not be a member of or | ||||||
14 | affiliated with, directly or indirectly, a manufacturer that | ||||||
15 | produces more than 50,000 gallons of wine per year. A class 1 | ||||||
16 | craft distiller licensee may make sales and deliveries to | ||||||
17 | importing distributors and distributors and to retail | ||||||
18 | licensees in accordance with the conditions set forth in | ||||||
19 | paragraph (19) of subsection (a) of Section 3-12 of this Act. | ||||||
20 | However, the aggregate amount of spirits sold to non-licensees | ||||||
21 | and sold or delivered to retail licensees may not exceed 5,000 | ||||||
22 | gallons per year. | ||||||
23 | A class 1 craft distiller licensee may sell up to 5,000 | ||||||
24 | gallons of such spirits to non-licensees to the extent | ||||||
25 | permitted by any exemption approved by the State Commission | ||||||
26 | pursuant to Section 6-4 of this Act. A class 1 craft distiller |
| |||||||
| |||||||
1 | license holder may store such spirits at a non-contiguous | ||||||
2 | licensed location, but at no time shall a class 1 craft | ||||||
3 | distiller license holder directly or indirectly produce in the | ||||||
4 | aggregate more than 50,000 gallons of spirits per year. | ||||||
5 | A class 1 craft distiller licensee may hold more than one | ||||||
6 | class 1 craft distiller's license. However, a class 1 craft | ||||||
7 | distiller that holds more than one class 1 craft distiller | ||||||
8 | license shall not manufacture, in the aggregate, more than | ||||||
9 | 50,000 gallons of spirits by distillation per year and shall | ||||||
10 | not sell, in the aggregate, more than 5,000 gallons of such | ||||||
11 | spirits to non-licensees in accordance with an exemption | ||||||
12 | approved by the State Commission pursuant to Section 6-4 of | ||||||
13 | this Act. | ||||||
14 | Class 11. A class 2 craft distiller license, which may | ||||||
15 | only be issued to a licensed craft distiller or licensed | ||||||
16 | non-resident dealer, shall allow the manufacture of up to | ||||||
17 | 100,000 gallons of spirits per year provided that the class 2 | ||||||
18 | craft distiller licensee does not manufacture more than a | ||||||
19 | combined 100,000 gallons of spirits per year and is not a | ||||||
20 | member of or affiliated with, directly or indirectly, a | ||||||
21 | manufacturer that produces more than 100,000 gallons of | ||||||
22 | spirits per year. If a class 2 craft distiller manufactures | ||||||
23 | beer, it shall also obtain and shall only be eligible for, in | ||||||
24 | addition to any current license, a class 2 brewer license, | ||||||
25 | shall not manufacture more than 3,720,000 gallons of beer per | ||||||
26 | year, and shall not be a member of or affiliated with, directly |
| |||||||
| |||||||
1 | or indirectly, a manufacturer that produces more than | ||||||
2 | 3,720,000 gallons of beer per year. If a class 2 craft | ||||||
3 | distiller manufactures wine, it shall also obtain and shall | ||||||
4 | only be eligible for, in addition to any current license, a | ||||||
5 | second-class wine-maker's license, shall not manufacture more | ||||||
6 | than 150,000 gallons of wine per year, and shall not be a | ||||||
7 | member of or affiliated with, directly or indirectly, a | ||||||
8 | manufacturer that produces more than 150,000 gallons of wine | ||||||
9 | per year. A class 2 craft distiller licensee may make sales and | ||||||
10 | deliveries to importing distributors and distributors, but | ||||||
11 | shall not make sales or deliveries to any other licensee. If | ||||||
12 | the State Commission provides prior approval, a class 2 craft | ||||||
13 | distiller licensee may annually transfer up to 100,000 gallons | ||||||
14 | of spirits manufactured by that class 2 craft distiller | ||||||
15 | licensee to the premises of a licensed class 2 craft distiller | ||||||
16 | wholly owned and operated by the same licensee. A class 2 craft | ||||||
17 | distiller may transfer spirits to a distilling pub wholly | ||||||
18 | owned and operated by the class 2 craft distiller subject to | ||||||
19 | the following limitations and restrictions: (i) the transfer | ||||||
20 | shall not annually exceed more than 5,000 gallons; (ii) the | ||||||
21 | annual amount transferred shall reduce the distilling pub's | ||||||
22 | annual permitted production limit; (iii) all spirits | ||||||
23 | transferred shall be subject to Article VIII of this Act; (iv) | ||||||
24 | a written record shall be maintained by the distiller and | ||||||
25 | distilling pub specifying the amount, date of delivery, and | ||||||
26 | receipt of the product by the distilling pub; and (v) the |
| |||||||
| |||||||
1 | distilling pub shall be located no farther than 80 miles from | ||||||
2 | the class 2 craft distiller's licensed location. | ||||||
3 | A class 2 craft distiller shall, prior to transferring | ||||||
4 | spirits to a distilling pub wholly owned by the class 2 craft | ||||||
5 | distiller, furnish a written notice to the State Commission of | ||||||
6 | intent to transfer spirits setting forth the name and address | ||||||
7 | of the distilling pub and shall annually submit to the State | ||||||
8 | Commission a verified report identifying the total gallons of | ||||||
9 | spirits transferred to the distilling pub wholly owned by the | ||||||
10 | class 2 craft distiller. | ||||||
11 | A class 2 craft distiller license holder may store such | ||||||
12 | spirits at a non-contiguous licensed location, but at no time | ||||||
13 | shall a class 2 craft distiller license holder directly or | ||||||
14 | indirectly produce in the aggregate more than 100,000 gallons | ||||||
15 | of spirits per year. | ||||||
16 | Class 12. 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. If a class 1 brewer manufactures | ||||||
24 | spirits, it shall also obtain and shall only be eligible for, | ||||||
25 | in addition to any current license, a class 1 craft distiller | ||||||
26 | license, shall not manufacture more than 50,000 gallons of |
| |||||||
| |||||||
1 | spirits per year, and shall not be a member of or affiliated | ||||||
2 | with, directly or indirectly, a manufacturer that produces | ||||||
3 | more than 50,000 gallons of spirits per year. If a class 1 | ||||||
4 | craft brewer manufactures wine, it shall also obtain and shall | ||||||
5 | only be eligible for, in addition to any current license, a | ||||||
6 | first-class wine-manufacturer license or a first-class | ||||||
7 | wine-maker's license, shall not manufacture more than 50,000 | ||||||
8 | gallons of wine per year, and shall not be a member of or | ||||||
9 | affiliated with, directly or indirectly, a manufacturer that | ||||||
10 | produces more than 50,000 gallons of wine per year. A class 1 | ||||||
11 | brewer licensee may make sales and deliveries to importing | ||||||
12 | distributors and distributors and to retail licensees in | ||||||
13 | accordance with the conditions set forth in paragraph (18) of | ||||||
14 | subsection (a) of Section 3-12 of this Act. If the State | ||||||
15 | Commission provides prior approval, a class 1 brewer may | ||||||
16 | annually transfer up to 930,000 gallons of beer manufactured | ||||||
17 | by that class 1 brewer to the premises of a licensed class 1 | ||||||
18 | brewer wholly owned and operated by the same licensee. | ||||||
19 | Class 13. A class 2 brewer license, which may only be | ||||||
20 | issued to a licensed brewer or licensed non-resident dealer, | ||||||
21 | shall allow the manufacture of up to 3,720,000 gallons of beer | ||||||
22 | per year provided that the class 2 brewer licensee does not | ||||||
23 | manufacture more than a combined 3,720,000 gallons of beer per | ||||||
24 | year and is not a member of or affiliated with, directly or | ||||||
25 | indirectly, a manufacturer that produces more than 3,720,000 | ||||||
26 | gallons of beer per year. If a class 2 brewer manufactures |
| |||||||
| |||||||
1 | spirits, it shall also obtain and shall only be eligible for, | ||||||
2 | in addition to any current license, a class 2 craft distiller | ||||||
3 | license, shall not manufacture more than 100,000 gallons of | ||||||
4 | spirits per year, and shall not be a member of or affiliated | ||||||
5 | with, directly or indirectly, a manufacturer that produces | ||||||
6 | more than 100,000 gallons of spirits per year. If a class 2 | ||||||
7 | craft distiller manufactures wine, it shall also obtain and | ||||||
8 | shall only be eligible for, in addition to any current | ||||||
9 | license, a second-class wine-maker's license, shall not | ||||||
10 | manufacture more than 150,000 gallons of wine per year, and | ||||||
11 | shall not be a member of or affiliated with, directly or | ||||||
12 | indirectly, a manufacturer that produces more than 150,000 | ||||||
13 | gallons of wine a year. A class 2 brewer licensee may make | ||||||
14 | sales and deliveries to importing distributors and | ||||||
15 | distributors, but shall not make sales or deliveries to any | ||||||
16 | other licensee. If the State Commission provides prior | ||||||
17 | approval, a class 2 brewer licensee may annually transfer up | ||||||
18 | to 3,720,000 gallons of beer manufactured by that class 2 | ||||||
19 | brewer licensee to the premises of a licensed class 2 brewer | ||||||
20 | wholly owned and operated by the same licensee. | ||||||
21 | A class 2 brewer may transfer beer to a brew pub wholly | ||||||
22 | owned and operated by the class 2 brewer subject to the | ||||||
23 | following limitations and restrictions: (i) the transfer shall | ||||||
24 | not annually exceed more than 31,000 gallons; (ii) the annual | ||||||
25 | amount transferred shall reduce the brew pub's annual | ||||||
26 | permitted production limit; (iii) all beer transferred shall |
| |||||||
| |||||||
1 | be subject to Article VIII of this Act; (iv) a written record | ||||||
2 | shall be maintained by the brewer and brew pub specifying the | ||||||
3 | amount, date of delivery, and receipt of the product by the | ||||||
4 | brew pub; and (v) the brew pub shall be located no farther than | ||||||
5 | 80 miles from the class 2 brewer's licensed location. | ||||||
6 | A class 2 brewer shall, prior to transferring beer to a | ||||||
7 | brew pub wholly owned by the class 2 brewer, furnish a written | ||||||
8 | notice to the State Commission of intent to transfer beer | ||||||
9 | setting forth the name and address of the brew pub and shall | ||||||
10 | annually submit to the State Commission a verified report | ||||||
11 | identifying the total gallons of beer transferred to the brew | ||||||
12 | pub wholly owned by the class 2 brewer. | ||||||
13 | Class 14. A class 3 brewer license, which may be issued to | ||||||
14 | a brewer or a non-resident dealer, shall allow the manufacture | ||||||
15 | of no more than 465,000 gallons of beer per year and no more | ||||||
16 | than 155,000 gallons at a single brewery premises, and shall | ||||||
17 | allow the sale of no more than 6,200 gallons of beer from each | ||||||
18 | in-state or out-of-state class 3 brewery premises, or 18,600 | ||||||
19 | gallons in the aggregate, to retail licensees, class 1 | ||||||
20 | brewers, class 2 brewers, and class 3 brewers as long as the | ||||||
21 | class 3 brewer licensee does not manufacture more than a | ||||||
22 | combined 465,000 gallons of beer per year and is not a member | ||||||
23 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
24 | that produces more than 465,000 gallons of beer per year to | ||||||
25 | make sales to importing distributors, distributors, retail | ||||||
26 | licensees, brewers, class 1 brewers, class 2 brewers, and |
| |||||||
| |||||||
1 | class 3 brewers in accordance with the conditions set forth in | ||||||
2 | paragraph (20) of subsection (a) of Section 3-12. If the State | ||||||
3 | Commission provides prior approval, a class 3 brewer may | ||||||
4 | annually transfer up to 155,000 gallons of beer manufactured | ||||||
5 | by that class 3 brewer to the premises of a licensed class 3 | ||||||
6 | brewer wholly owned and operated by the same licensee. A class | ||||||
7 | 3 brewer shall manufacture beer at the brewer's class 3 | ||||||
8 | designated licensed premises, and may sell beer as otherwise | ||||||
9 | provided in this Act. | ||||||
10 | (a-1) A manufacturer which is licensed in this State to | ||||||
11 | make sales or
deliveries of alcoholic liquor to licensed | ||||||
12 | distributors or importing distributors and which enlists | ||||||
13 | agents, representatives, or
individuals acting on its behalf | ||||||
14 | who contact licensed retailers on a regular
and continual | ||||||
15 | basis in this State must register those agents, | ||||||
16 | representatives,
or persons acting on its behalf with the | ||||||
17 | State Commission. | ||||||
18 | Registration of agents, representatives, or persons acting | ||||||
19 | on behalf of a
manufacturer is fulfilled by submitting a form | ||||||
20 | to the Commission. The form
shall be developed by the | ||||||
21 | Commission and shall include the name and address of
the | ||||||
22 | applicant, the name and address of the manufacturer he or she | ||||||
23 | represents,
the territory or areas assigned to sell to or | ||||||
24 | discuss pricing terms of
alcoholic liquor, and any other | ||||||
25 | questions deemed appropriate and necessary.
All statements in | ||||||
26 | the forms required to be made by law or by rule shall be
deemed |
| |||||||
| |||||||
1 | material, and any person who knowingly misstates any material | ||||||
2 | fact under
oath in an application is guilty of a Class B | ||||||
3 | misdemeanor. Fraud,
misrepresentation, false statements, | ||||||
4 | misleading statements, evasions, or
suppression of material | ||||||
5 | facts in the securing of a registration are grounds for
| ||||||
6 | suspension or revocation of the registration. The State | ||||||
7 | Commission shall post a list of registered agents on the | ||||||
8 | Commission's website. | ||||||
9 | (b) A distributor's license shall allow (i) the wholesale | ||||||
10 | purchase and storage
of alcoholic liquors and sale of | ||||||
11 | alcoholic liquors to licensees in this State and to persons | ||||||
12 | without the State, as may be permitted by law; (ii) the sale of | ||||||
13 | beer, cider, mead, or any combination thereof to brewers, | ||||||
14 | class 1 brewers, and class 2 brewers that, pursuant to | ||||||
15 | subsection (e) of Section 6-4 of this Act, sell beer, cider, | ||||||
16 | mead, or any combination thereof to non-licensees at their | ||||||
17 | breweries; (iii) the sale of vermouth to class 1 craft | ||||||
18 | distillers and class 2 craft distillers that, pursuant to | ||||||
19 | subsection (e) of Section 6-4 of this Act, sell spirits, | ||||||
20 | vermouth, or both spirits and vermouth to non-licensees at | ||||||
21 | their distilleries; or (iv) as otherwise provided in this Act. | ||||||
22 | No person licensed as a distributor shall be granted a | ||||||
23 | non-resident dealer's license. | ||||||
24 | (c) An importing distributor's license may be issued to | ||||||
25 | and held by
those only who are duly licensed distributors, | ||||||
26 | upon the filing of an
application by a duly licensed |
| |||||||
| |||||||
1 | distributor, with the Commission and
the Commission shall, | ||||||
2 | without the
payment of any fee, immediately issue such | ||||||
3 | importing distributor's
license to the applicant, which shall | ||||||
4 | allow the importation of alcoholic
liquor by the licensee into | ||||||
5 | this State from any point in the United
States outside this | ||||||
6 | State, and the purchase of alcoholic liquor in
barrels, casks | ||||||
7 | or other bulk containers and the bottling of such
alcoholic | ||||||
8 | liquors before resale thereof, but all bottles or containers
| ||||||
9 | so filled shall be sealed, labeled, stamped and otherwise made | ||||||
10 | to comply
with all provisions, rules and regulations governing | ||||||
11 | manufacturers in
the preparation and bottling of alcoholic | ||||||
12 | liquors. The importing
distributor's license shall permit such | ||||||
13 | licensee to purchase alcoholic
liquor from Illinois licensed | ||||||
14 | non-resident dealers and foreign importers only. No person | ||||||
15 | licensed as an importing distributor shall be granted a | ||||||
16 | non-resident dealer's license. | ||||||
17 | (d) A retailer's license shall allow the licensee to sell | ||||||
18 | and offer
for sale at retail, only in the premises specified in | ||||||
19 | the license,
alcoholic liquor for use or consumption, but not | ||||||
20 | for resale in any form. Except as provided in Section 6-16, | ||||||
21 | 6-29, or 6-29.1, nothing in this Act shall deny, limit, | ||||||
22 | remove, or restrict the ability of a holder of a retailer's | ||||||
23 | license to transfer or ship alcoholic liquor to the purchaser | ||||||
24 | for use or consumption subject to any applicable local law or | ||||||
25 | ordinance. For the purposes of this Section, "shipping" means | ||||||
26 | the movement of alcoholic liquor from a licensed retailer to a |
| |||||||
| |||||||
1 | consumer via a common carrier. Except as provided in Section | ||||||
2 | 6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit, | ||||||
3 | remove, or restrict the ability of a holder of a retailer's | ||||||
4 | license to deliver alcoholic liquor to the purchaser for use | ||||||
5 | or consumption. The delivery shall be made only within 12 | ||||||
6 | hours from the time the alcoholic liquor leaves the licensed | ||||||
7 | premises of the retailer for delivery. For the purposes of | ||||||
8 | this Section, "delivery" means the movement of alcoholic | ||||||
9 | liquor purchased from a licensed retailer to a consumer | ||||||
10 | through the following methods: | ||||||
11 | (1) delivery within licensed retailer's parking lot, | ||||||
12 | including curbside, for pickup by the consumer; | ||||||
13 | (2) delivery by an owner, officer, director, | ||||||
14 | shareholder, or employee of the licensed retailer; or | ||||||
15 | (3) delivery by a third-party contractor, independent | ||||||
16 | contractor, or agent with whom the licensed retailer has | ||||||
17 | contracted to make deliveries of alcoholic liquors. | ||||||
18 | Under subsection (1), (2), or (3), delivery shall not | ||||||
19 | include the use of common carriers. | ||||||
20 | Any retail license issued to a manufacturer shall only
| ||||||
21 | permit the manufacturer to sell beer at retail on the premises | ||||||
22 | actually
occupied by the manufacturer. For the purpose of | ||||||
23 | further describing the type of business conducted at a retail | ||||||
24 | licensed premises, a retailer's licensee may be designated by | ||||||
25 | the State Commission as (i) an on premise consumption | ||||||
26 | retailer, (ii) an off premise sale retailer, or (iii) a |
| |||||||
| |||||||
1 | combined on premise consumption and off premise sale retailer.
| ||||||
2 | Except for a municipality with a population of more than | ||||||
3 | 1,000,000 inhabitants, a home rule unit may not regulate the | ||||||
4 | delivery of alcoholic liquor inconsistent with this | ||||||
5 | subsection. This paragraph is a limitation under subsection | ||||||
6 | (i) of Section 6 of Article VII of the Illinois Constitution on | ||||||
7 | the concurrent exercise by home rule units of powers and | ||||||
8 | functions exercised by the State. | ||||||
9 | Notwithstanding any other provision of this subsection | ||||||
10 | (d), a retail
licensee may sell alcoholic liquors to a special | ||||||
11 | event retailer licensee for
resale to the extent permitted | ||||||
12 | under subsection (e). | ||||||
13 | (e) A special event retailer's license (not-for-profit) | ||||||
14 | shall permit the
licensee to purchase alcoholic liquors from | ||||||
15 | an Illinois licensed distributor
(unless the licensee | ||||||
16 | purchases less than $500 of alcoholic liquors for the
special | ||||||
17 | event, in which case the licensee may purchase the alcoholic | ||||||
18 | liquors
from a licensed retailer) and shall allow the licensee | ||||||
19 | to sell and offer for
sale, at retail, alcoholic liquors for | ||||||
20 | use or consumption, but not for resale
in any form and only at | ||||||
21 | the location and on the specific dates designated for
the | ||||||
22 | special event in the license. An applicant for a special event | ||||||
23 | retailer
license must
(i) furnish with the application: (A) a | ||||||
24 | resale number issued under Section
2c of the Retailers' | ||||||
25 | Occupation Tax Act or evidence that the applicant is
| ||||||
26 | registered under Section 2a of the Retailers' Occupation Tax |
| |||||||
| |||||||
1 | Act, (B) a
current, valid exemption identification
number | ||||||
2 | issued under Section 1g of the Retailers' Occupation Tax Act, | ||||||
3 | and a
certification to the Commission that the purchase of | ||||||
4 | alcoholic liquors will be
a tax-exempt purchase, or (C) a | ||||||
5 | statement that the applicant is not registered
under Section | ||||||
6 | 2a of the Retailers' Occupation Tax Act, does not hold a resale
| ||||||
7 | number under Section 2c of the Retailers' Occupation Tax Act, | ||||||
8 | and does not
hold an exemption number under Section 1g of the | ||||||
9 | Retailers' Occupation Tax
Act, in which event the Commission | ||||||
10 | shall set forth on the special event
retailer's license a | ||||||
11 | statement to that effect; (ii) submit with the application | ||||||
12 | proof satisfactory to
the State Commission that the applicant | ||||||
13 | will provide dram shop liability
insurance in the maximum | ||||||
14 | limits; and (iii) show proof satisfactory to the
State | ||||||
15 | Commission that the applicant has obtained local authority
| ||||||
16 | approval. | ||||||
17 | Nothing in this Act prohibits an Illinois licensed | ||||||
18 | distributor from offering credit or a refund for unused, | ||||||
19 | salable alcoholic liquors to a holder of a special event | ||||||
20 | retailer's license or the special event retailer's licensee | ||||||
21 | from accepting the credit or refund of alcoholic liquors at | ||||||
22 | the conclusion of the event specified in the license. | ||||||
23 | (f) A railroad license shall permit the licensee to import | ||||||
24 | alcoholic
liquors into this State from any point in the United | ||||||
25 | States outside this
State and to store such alcoholic liquors | ||||||
26 | in this State; to make wholesale
purchases of alcoholic |
| |||||||
| |||||||
1 | liquors directly from manufacturers, foreign
importers, | ||||||
2 | distributors and importing distributors from within or outside
| ||||||
3 | this State; and to store such alcoholic liquors in this State; | ||||||
4 | provided
that the above powers may be exercised only in | ||||||
5 | connection with the
importation, purchase or storage of | ||||||
6 | alcoholic liquors to be sold or
dispensed on a club, buffet, | ||||||
7 | lounge or dining car operated on an electric,
gas or steam | ||||||
8 | railway in this State; and provided further, that railroad
| ||||||
9 | licensees exercising the above powers shall be subject to all | ||||||
10 | provisions of
Article VIII of this Act as applied to importing | ||||||
11 | distributors. A railroad
license shall also permit the | ||||||
12 | licensee to sell or dispense alcoholic
liquors on any club, | ||||||
13 | buffet, lounge or dining car operated on an electric,
gas or | ||||||
14 | steam railway regularly operated by a common carrier in this | ||||||
15 | State,
but shall not permit the sale for resale of any | ||||||
16 | alcoholic liquors to any
licensee within this State. A license | ||||||
17 | shall be obtained for each car in which
such sales are made. | ||||||
18 | (g) A boat license shall allow the sale of alcoholic | ||||||
19 | liquor in
individual drinks, on any passenger boat regularly | ||||||
20 | operated as a common
carrier on navigable waters in this State | ||||||
21 | or on any riverboat operated
under
the Illinois Gambling Act, | ||||||
22 | which boat or riverboat maintains a public
dining room or | ||||||
23 | restaurant thereon. | ||||||
24 | (h) A non-beverage user's license shall allow the licensee | ||||||
25 | to
purchase alcoholic liquor from a licensed manufacturer or | ||||||
26 | importing
distributor, without the imposition of any tax upon |
| |||||||
| |||||||
1 | the business of such
licensed manufacturer or importing | ||||||
2 | distributor as to such alcoholic
liquor to be used by such | ||||||
3 | licensee solely for the non-beverage purposes
set forth in | ||||||
4 | subsection (a) of Section 8-1 of this Act, and
such licenses | ||||||
5 | shall be divided and classified and shall permit the
purchase, | ||||||
6 | possession and use of limited and stated quantities of
| ||||||
7 | alcoholic liquor as follows: | ||||||
8 | Class 1, not to exceed ......................... 500 gallons
| ||||||
9 | Class 2, not to exceed ....................... 1,000 gallons
| ||||||
10 | Class 3, not to exceed ....................... 5,000 gallons
| ||||||
11 | Class 4, not to exceed ...................... 10,000 gallons
| ||||||
12 | Class 5, not to exceed ....................... 50,000 gallons | ||||||
13 | (i) A wine-maker's premises license shall allow a
licensee | ||||||
14 | that concurrently holds a first-class wine-maker's license to | ||||||
15 | sell
and offer for sale at retail in the premises specified in | ||||||
16 | such license
not more than 50,000 gallons of the first-class | ||||||
17 | wine-maker's wine that is
made at the first-class wine-maker's | ||||||
18 | licensed premises per year for use or
consumption, but not for | ||||||
19 | resale in any form. A wine-maker's premises
license shall | ||||||
20 | allow a licensee who concurrently holds a second-class
| ||||||
21 | wine-maker's license to sell and offer for sale at retail in | ||||||
22 | the premises
specified in such license up to 100,000 gallons | ||||||
23 | of the
second-class wine-maker's wine that is made at the | ||||||
24 | second-class wine-maker's
licensed premises per year
for use | ||||||
25 | or consumption but not for resale in any form. A first-class | ||||||
26 | wine-maker that concurrently holds a class 1 brewer license or |
| |||||||
| |||||||
1 | a class 1 craft distiller license shall not be eligible to hold | ||||||
2 | a wine-maker's premises license. A wine-maker's premises | ||||||
3 | license shall allow a
licensee that concurrently holds a | ||||||
4 | first-class wine-maker's license or a second-class
| ||||||
5 | wine-maker's license to sell
and offer for sale at retail at | ||||||
6 | the premises specified in the wine-maker's premises license, | ||||||
7 | for use or consumption but not for resale in any form, any | ||||||
8 | beer, wine, and spirits purchased from a licensed distributor. | ||||||
9 | Upon approval from the
State Commission, a wine-maker's | ||||||
10 | premises license
shall allow the licensee to sell and offer | ||||||
11 | for sale at (i) the wine-maker's
licensed premises and (ii) at | ||||||
12 | up to 2 additional locations for use and
consumption and not | ||||||
13 | for resale. Each location shall require additional
licensing | ||||||
14 | per location as specified in Section 5-3 of this Act. A | ||||||
15 | wine-maker's premises licensee shall
secure liquor liability | ||||||
16 | insurance coverage in an amount at
least equal to the maximum | ||||||
17 | liability amounts set forth in
subsection (a) of Section 6-21 | ||||||
18 | of this Act.
| ||||||
19 | (j) An airplane license shall permit the licensee to | ||||||
20 | import
alcoholic liquors into this State from any point in the | ||||||
21 | United States
outside this State and to store such alcoholic | ||||||
22 | liquors in this State; to
make wholesale purchases of | ||||||
23 | alcoholic liquors directly from
manufacturers, foreign | ||||||
24 | importers, distributors and importing
distributors from within | ||||||
25 | or outside this State; and to store such
alcoholic liquors in | ||||||
26 | this State; provided that the above powers may be
exercised |
| |||||||
| |||||||
1 | only in connection with the importation, purchase or storage
| ||||||
2 | of alcoholic liquors to be sold or dispensed on an airplane; | ||||||
3 | and
provided further, that airplane licensees exercising the | ||||||
4 | above powers
shall be subject to all provisions of Article | ||||||
5 | VIII of this Act as
applied to importing distributors. An | ||||||
6 | airplane licensee shall also
permit the sale or dispensing of | ||||||
7 | alcoholic liquors on any passenger
airplane regularly operated | ||||||
8 | by a common carrier in this State, but shall
not permit the | ||||||
9 | sale for resale of any alcoholic liquors to any licensee
| ||||||
10 | within this State. A single airplane license shall be required | ||||||
11 | of an
airline company if liquor service is provided on board | ||||||
12 | aircraft in this
State. The annual fee for such license shall | ||||||
13 | be as determined in
Section 5-3. | ||||||
14 | (k) A foreign importer's license shall permit such | ||||||
15 | licensee to purchase
alcoholic liquor from Illinois licensed | ||||||
16 | non-resident dealers only, and to
import alcoholic liquor | ||||||
17 | other than in bulk from any point outside the
United States and | ||||||
18 | to sell such alcoholic liquor to Illinois licensed
importing | ||||||
19 | distributors and to no one else in Illinois;
provided that (i) | ||||||
20 | the foreign importer registers with the State Commission
every
| ||||||
21 | brand of
alcoholic liquor that it proposes to sell to Illinois | ||||||
22 | licensees during the
license period, (ii) the foreign importer | ||||||
23 | complies with all of the provisions
of Section
6-9 of this Act | ||||||
24 | with respect to registration of such Illinois licensees as may
| ||||||
25 | be granted the
right to sell such brands at wholesale, and | ||||||
26 | (iii) the foreign importer complies with the provisions of |
| |||||||
| |||||||
1 | Sections 6-5 and 6-6 of this Act to the same extent that these | ||||||
2 | provisions apply to manufacturers. | ||||||
3 | (l) (i) A broker's license shall be required of all | ||||||
4 | persons
who solicit
orders for, offer to sell or offer to | ||||||
5 | supply alcoholic liquor to
retailers in the State of Illinois, | ||||||
6 | or who offer to retailers to ship or
cause to be shipped or to | ||||||
7 | make contact with distillers, craft distillers, rectifiers,
| ||||||
8 | brewers or manufacturers or any other party within or without | ||||||
9 | the State
of Illinois in order that alcoholic liquors be | ||||||
10 | shipped to a distributor,
importing distributor or foreign | ||||||
11 | importer, whether such solicitation or
offer is consummated | ||||||
12 | within or without the State of Illinois. | ||||||
13 | No holder of a retailer's license issued by the Illinois | ||||||
14 | Liquor
Control Commission shall purchase or receive any | ||||||
15 | alcoholic liquor, the
order for which was solicited or offered | ||||||
16 | for sale to such retailer by a
broker unless the broker is the | ||||||
17 | holder of a valid broker's license. | ||||||
18 | The broker shall, upon the acceptance by a retailer of the | ||||||
19 | broker's
solicitation of an order or offer to sell or supply or | ||||||
20 | deliver or have
delivered alcoholic liquors, promptly forward | ||||||
21 | to the Illinois Liquor
Control Commission a notification of | ||||||
22 | said transaction in such form as
the Commission may by | ||||||
23 | regulations prescribe. | ||||||
24 | (ii) A broker's license shall be required of
a person | ||||||
25 | within this State, other than a retail licensee,
who, for a fee | ||||||
26 | or commission, promotes, solicits, or accepts orders for
|
| |||||||
| |||||||
1 | alcoholic liquor, for use or consumption and not for
resale, | ||||||
2 | to be shipped from this State and delivered to residents | ||||||
3 | outside of
this State by an express company, common carrier, | ||||||
4 | or contract carrier.
This Section does not apply to any person | ||||||
5 | who promotes, solicits, or accepts
orders for wine as | ||||||
6 | specifically authorized in Section 6-29 of this Act. | ||||||
7 | A broker's license under this subsection (l)
shall not | ||||||
8 | entitle the holder to
buy or sell any
alcoholic liquors for his | ||||||
9 | own account or to take or deliver title to
such alcoholic | ||||||
10 | liquors. | ||||||
11 | This subsection (l)
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 this | ||||||
22 | State from any point
outside of this State, and to sell such | ||||||
23 | alcoholic liquor to Illinois licensed
foreign importers and | ||||||
24 | importing distributors and to no one else in this State;
| ||||||
25 | provided that (i) said non-resident dealer shall register with | ||||||
26 | the Illinois Liquor
Control Commission each and every brand of |
| |||||||
| |||||||
1 | alcoholic liquor which it proposes
to sell to Illinois | ||||||
2 | licensees during the license period, (ii) it shall comply with | ||||||
3 | all of the provisions of Section 6-9 hereof with
respect to | ||||||
4 | registration of such Illinois licensees as may be granted the | ||||||
5 | right
to sell such brands at wholesale by duly filing such | ||||||
6 | registration statement, thereby authorizing the non-resident | ||||||
7 | dealer to proceed to sell such brands at wholesale, and (iii) | ||||||
8 | the non-resident dealer shall comply 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. No person licensed as a | ||||||
11 | non-resident dealer shall be granted a distributor's or | ||||||
12 | importing distributor's license. | ||||||
13 | (n) A brew pub license shall allow the licensee to only (i) | ||||||
14 | manufacture up to 155,000 gallons of beer per year only
on the | ||||||
15 | premises specified in the license, (ii) make sales of the
beer | ||||||
16 | manufactured on the premises or, with the approval of the | ||||||
17 | Commission, beer manufactured on another brew pub licensed | ||||||
18 | premises that is wholly owned and operated by the same | ||||||
19 | licensee to importing distributors, distributors,
and to | ||||||
20 | non-licensees for use and consumption, (iii) store the beer | ||||||
21 | upon
the premises, (iv) sell and offer for sale at retail from | ||||||
22 | the licensed
premises for off-premises
consumption no more | ||||||
23 | than 155,000 gallons per year so long as such sales are only | ||||||
24 | made in-person, (v) sell and offer for sale at retail for use | ||||||
25 | and consumption on the premises specified in the license any | ||||||
26 | form of alcoholic liquor purchased from a licensed distributor |
| |||||||
| |||||||
1 | or importing distributor, (vi) with the prior approval of the | ||||||
2 | Commission, annually transfer no more than 155,000 gallons of | ||||||
3 | beer manufactured on the premises to a licensed brew pub | ||||||
4 | wholly owned and operated by the same licensee, and (vii) | ||||||
5 | notwithstanding item (i) of this subsection, brew pubs wholly | ||||||
6 | owned and operated by the same licensee may combine each | ||||||
7 | location's production limit of 155,000 gallons of beer per | ||||||
8 | year and allocate the aggregate total between the wholly | ||||||
9 | owned, operated, and licensed locations. | ||||||
10 | A brew pub licensee shall not under any circumstance sell | ||||||
11 | or offer for sale beer manufactured by the brew pub licensee to | ||||||
12 | retail licensees. | ||||||
13 | A person who holds a class 2 brewer license may | ||||||
14 | simultaneously hold a brew pub license if the class 2 brewer | ||||||
15 | (i) does not, under any circumstance, sell or offer for sale | ||||||
16 | beer manufactured by the class 2 brewer to retail licensees; | ||||||
17 | (ii) does not hold more than 3 brew pub licenses in this State; | ||||||
18 | (iii) does not manufacture more than a combined 3,720,000 | ||||||
19 | gallons of beer per year, including the beer manufactured at | ||||||
20 | the brew pub; and (iv) is not a member of or affiliated with, | ||||||
21 | directly or indirectly, a manufacturer that produces more than | ||||||
22 | 3,720,000 gallons of beer per year or any other alcoholic | ||||||
23 | liquor. | ||||||
24 | Notwithstanding any other provision of this Act, a | ||||||
25 | licensed brewer, class 2 brewer, or non-resident dealer who | ||||||
26 | before July 1, 2015 manufactured less than 3,720,000 gallons |
| |||||||
| |||||||
1 | of beer per year and held a brew pub license on or before July | ||||||
2 | 1, 2015 may (i) continue to qualify for and hold that brew pub | ||||||
3 | license for the licensed premises and (ii) manufacture more | ||||||
4 | than 3,720,000 gallons of beer per year and continue to | ||||||
5 | qualify for and hold that brew pub license if that brewer, | ||||||
6 | class 2 brewer, or non-resident dealer does not simultaneously | ||||||
7 | hold a class 1 brewer license and is not a member of or | ||||||
8 | affiliated with, directly or indirectly, a manufacturer that | ||||||
9 | produces more than 3,720,000 gallons of beer per year or that | ||||||
10 | produces any other alcoholic liquor. | ||||||
11 | A brew pub licensee may apply for a class 3 brewer license | ||||||
12 | and , upon : (i) meeting all applicable qualifications of this | ||||||
13 | Act , and relinquishing all commonly owned brew pub or retail | ||||||
14 | licenses , shall be issued a class 3 brewer license. Nothing in | ||||||
15 | this Act shall prohibit the issuance of a class 3 brewer | ||||||
16 | license if the applicant: | ||||||
17 | (1) has a valid retail license on or before May 1, | ||||||
18 | 2021; | ||||||
19 | (2) has an ownership interest in at least two brew | ||||||
20 | pubs licenses on or before May 1, 2021; | ||||||
21 | (3) the brew pub licensee applies for a class 3 brewer | ||||||
22 | license on or before October 1, 2022 and relinquishes all | ||||||
23 | commonly owned brew pub licenses; and | ||||||
24 | (4) relinquishes all commonly owned retail licenses on | ||||||
25 | or before December 31, 2022. | ||||||
26 | If a brew pub licensee is issued a class 3 brewer license, |
| |||||||
| |||||||
1 | the class 3 brewer license shall expire on the same date as the | ||||||
2 | existing brew pub license and the State Commission shall not | ||||||
3 | require a class 3 brewer licensee to obtain a brewer license, | ||||||
4 | or in the alternative to pay a fee for a brewer license, until | ||||||
5 | the date the brew pub license of the applicant would have | ||||||
6 | expired. | ||||||
7 | (o) A caterer retailer license shall allow the holder
to | ||||||
8 | serve alcoholic liquors as an incidental part of a food | ||||||
9 | service that serves
prepared meals which excludes the serving | ||||||
10 | of snacks as
the primary meal, either on or off-site whether | ||||||
11 | licensed or unlicensed. A caterer retailer license shall allow | ||||||
12 | the holder, a distributor, or an importing distributor to | ||||||
13 | transfer any inventory to and from the holder's retail | ||||||
14 | premises and shall allow the holder to purchase alcoholic | ||||||
15 | liquor from a distributor or importing distributor to be | ||||||
16 | delivered directly to an off-site event. | ||||||
17 | Nothing in this Act prohibits a distributor or importing | ||||||
18 | distributor from offering credit or a refund for unused, | ||||||
19 | salable beer to a holder of a caterer retailer license or a | ||||||
20 | caterer retailer licensee from accepting a credit or refund | ||||||
21 | for unused, salable beer, in the event an act of God is the | ||||||
22 | sole reason an off-site event is cancelled and if: (i) the | ||||||
23 | holder of a caterer retailer license has not transferred | ||||||
24 | alcoholic liquor from its caterer retailer premises to an | ||||||
25 | off-site location; (ii) the distributor or importing | ||||||
26 | distributor offers the credit or refund for the unused, |
| |||||||
| |||||||
1 | salable beer that it delivered to the off-site premises and | ||||||
2 | not for any unused, salable beer that the distributor or | ||||||
3 | importing distributor delivered to the caterer retailer's | ||||||
4 | premises; and (iii) the unused, salable beer would likely | ||||||
5 | spoil if transferred to the caterer retailer's premises. A | ||||||
6 | caterer retailer license shall allow the holder to transfer | ||||||
7 | any inventory from any off-site location to its caterer | ||||||
8 | retailer premises at the conclusion of an off-site event or | ||||||
9 | engage a distributor or importing distributor to transfer any | ||||||
10 | inventory from any off-site location to its caterer retailer | ||||||
11 | premises at the conclusion of an off-site event, provided that | ||||||
12 | the distributor or importing distributor issues bona fide | ||||||
13 | charges to the caterer retailer licensee for fuel, labor, and | ||||||
14 | delivery and the distributor or importing distributor collects | ||||||
15 | payment from the caterer retailer licensee prior to the | ||||||
16 | distributor or importing distributor transferring inventory to | ||||||
17 | the caterer retailer premises. | ||||||
18 | For purposes of this subsection (o), an "act of God" means | ||||||
19 | an unforeseeable event, such as a rain or snow storm, hail, a | ||||||
20 | flood, or a similar event, that is the sole cause of the | ||||||
21 | cancellation of an off-site, outdoor event. | ||||||
22 | (p) An auction liquor license shall allow the licensee to | ||||||
23 | sell and offer
for sale at auction wine and spirits for use or | ||||||
24 | consumption, or for resale by
an Illinois liquor licensee in | ||||||
25 | accordance with provisions of this Act. An
auction liquor | ||||||
26 | license will be issued to a person and it will permit the
|
| |||||||
| |||||||
1 | auction liquor licensee to hold the auction anywhere in the | ||||||
2 | State. An auction
liquor license must be obtained for each | ||||||
3 | auction at least 14 days in advance of
the auction date. | ||||||
4 | (q) A special use permit license shall allow an Illinois | ||||||
5 | licensed
retailer to transfer a portion of its alcoholic | ||||||
6 | liquor inventory from its
retail licensed premises to the | ||||||
7 | premises specified in the license hereby
created; to purchase | ||||||
8 | alcoholic liquor from a distributor or importing distributor | ||||||
9 | to be delivered directly to the location specified in the | ||||||
10 | license hereby created; and to sell or offer for sale at | ||||||
11 | retail, only in the premises
specified in the license hereby | ||||||
12 | created, the transferred or delivered alcoholic liquor for
use | ||||||
13 | or consumption, but not for resale in any form. A special use | ||||||
14 | permit
license may be granted for the following time periods: | ||||||
15 | one day or less; 2 or
more days to a maximum of 15 days per | ||||||
16 | location in any 12-month period. An
applicant for the special | ||||||
17 | use permit license must also submit with the
application proof | ||||||
18 | satisfactory to the State Commission that the applicant will
| ||||||
19 | provide dram shop liability insurance to the maximum limits | ||||||
20 | and have local
authority approval. | ||||||
21 | A special use permit license shall allow the holder to | ||||||
22 | transfer any inventory from the holder's special use premises | ||||||
23 | to its retail premises at the conclusion of the special use | ||||||
24 | event or engage a distributor or importing distributor to | ||||||
25 | transfer any inventory from the holder's special use premises | ||||||
26 | to its retail premises at the conclusion of an off-site event, |
| |||||||
| |||||||
1 | provided that the distributor or importing distributor issues | ||||||
2 | bona fide charges to the special use permit licensee for fuel, | ||||||
3 | labor, and delivery and the distributor or importing | ||||||
4 | distributor collects payment from the retail licensee prior to | ||||||
5 | the distributor or importing distributor transferring | ||||||
6 | inventory to the retail premises. | ||||||
7 | Nothing in this Act prohibits a distributor or importing | ||||||
8 | distributor from offering credit or a refund for unused, | ||||||
9 | salable beer to a special use permit licensee or a special use | ||||||
10 | permit licensee from accepting a credit or refund for unused, | ||||||
11 | salable beer at the conclusion of the event specified in the | ||||||
12 | license if: (i) the holder of the special use permit license | ||||||
13 | has not transferred alcoholic liquor from its retail licensed | ||||||
14 | premises to the premises specified in the special use permit | ||||||
15 | license; (ii) the distributor or importing distributor offers | ||||||
16 | the credit or refund for the unused, salable beer that it | ||||||
17 | delivered to the premises specified in the special use permit | ||||||
18 | license and not for any unused, salable beer that the | ||||||
19 | distributor or importing distributor delivered to the | ||||||
20 | retailer's premises; and (iii) the unused, salable beer would | ||||||
21 | likely spoil if transferred to the retailer premises. | ||||||
22 | (r) A winery shipper's license shall allow a person
with a | ||||||
23 | first-class or second-class wine manufacturer's
license, a | ||||||
24 | first-class or second-class wine-maker's license,
or a limited | ||||||
25 | wine manufacturer's license or who is licensed to
make wine | ||||||
26 | under the laws of another state to ship wine
made by that |
| |||||||
| |||||||
1 | licensee directly to a resident of this
State who is 21 years | ||||||
2 | of age or older for that resident's
personal use and not for | ||||||
3 | resale. Prior to receiving a
winery shipper's license, an | ||||||
4 | applicant for the license must
provide the Commission with a | ||||||
5 | true copy of its current
license in any state in which it is | ||||||
6 | licensed as a manufacturer
of wine. An applicant for a winery | ||||||
7 | shipper's license must
also complete an application form that | ||||||
8 | provides any other
information the Commission deems necessary. | ||||||
9 | The application form shall include all addresses from which | ||||||
10 | the applicant for a winery shipper's license intends to ship | ||||||
11 | wine, including the name and address of any third party, | ||||||
12 | except for a common carrier, authorized to ship wine on behalf | ||||||
13 | of the manufacturer. The
application form shall include an | ||||||
14 | acknowledgement consenting
to the jurisdiction of the | ||||||
15 | Commission, the Illinois
Department of Revenue, and the courts | ||||||
16 | of this State concerning
the enforcement of this Act and any | ||||||
17 | related laws, rules, and
regulations, including authorizing | ||||||
18 | the Department of Revenue
and the Commission to conduct audits | ||||||
19 | for the purpose of
ensuring compliance with Public Act 95-634, | ||||||
20 | and an acknowledgement that the wine manufacturer is in | ||||||
21 | compliance with Section 6-2 of this Act. Any third party, | ||||||
22 | except for a common carrier, authorized to ship wine on behalf | ||||||
23 | of a first-class or second-class wine manufacturer's licensee, | ||||||
24 | a first-class or second-class wine-maker's licensee, a limited | ||||||
25 | wine manufacturer's licensee, or a person who is licensed to | ||||||
26 | make wine under the laws of another state shall also be |
| |||||||
| |||||||
1 | disclosed by the winery shipper's licensee, and a copy of the | ||||||
2 | written appointment of the third-party wine provider, except | ||||||
3 | for a common carrier, to the wine manufacturer shall be filed | ||||||
4 | with the State Commission as a supplement to the winery | ||||||
5 | shipper's license application or any renewal thereof. The | ||||||
6 | winery shipper's license holder shall affirm under penalty of | ||||||
7 | perjury, as part of the winery shipper's license application | ||||||
8 | or renewal, that he or she only ships wine, either directly or | ||||||
9 | indirectly through a third-party provider registered under | ||||||
10 | Section 5-8 , from the licensee's own production. A third-party | ||||||
11 | provider's shipment of wine on behalf of a winery shipper must | ||||||
12 | comply with Section 5-8. | ||||||
13 | Except for a common carrier, a third-party provider | ||||||
14 | shipping wine on behalf of a winery shipper's license holder | ||||||
15 | is the agent of the winery shipper's license holder and, as | ||||||
16 | such, a winery shipper's license holder is responsible for the | ||||||
17 | acts and omissions of the third-party provider acting on | ||||||
18 | behalf of the license holder. A winery shipper's use of the | ||||||
19 | services of a third-party provider does not relieve the winery | ||||||
20 | shipper of any obligation under this Act or any rule adopted | ||||||
21 | under this Act. A third-party provider , except for a common | ||||||
22 | carrier, that engages in shipping wine into Illinois must | ||||||
23 | comply with Section 5-8 and on behalf of a winery shipper's | ||||||
24 | license holder shall consent to the jurisdiction of the State | ||||||
25 | Commission and the State. Any third-party, except for a common | ||||||
26 | carrier, holding such an appointment shall, by February 1 of |
| |||||||
| |||||||
1 | each calendar year and upon request by the State Commission or | ||||||
2 | the Department of Revenue, file with the State Commission a | ||||||
3 | statement detailing each shipment made to an Illinois | ||||||
4 | resident. The statement shall include the name and address of | ||||||
5 | the third-party provider filing the statement, the time period | ||||||
6 | covered by the statement, and the following information: | ||||||
7 | (1) the name, address, and license number of the | ||||||
8 | winery shipper on whose behalf the shipment was made; | ||||||
9 | (2) the quantity of the products delivered; and | ||||||
10 | (3) the date and address of the shipment. | ||||||
11 | If the Department of Revenue or the State Commission requests | ||||||
12 | a statement under this paragraph, the third-party provider | ||||||
13 | must provide that statement no later than 30 days after the | ||||||
14 | request is made. Any books, records, supporting papers, and | ||||||
15 | documents containing information and data relating to a | ||||||
16 | statement under this paragraph shall be kept and preserved for | ||||||
17 | a period of 3 years, unless their destruction sooner is | ||||||
18 | authorized, in writing, by the Director of Revenue, and shall | ||||||
19 | be open and available to inspection by the Director of Revenue | ||||||
20 | or the State Commission or any duly authorized officer, agent, | ||||||
21 | or employee of the State Commission or the Department of | ||||||
22 | Revenue, at all times during business hours of the day. Any | ||||||
23 | person who violates any provision of this paragraph or any | ||||||
24 | rule of the State Commission for the administration and | ||||||
25 | enforcement of the provisions of this paragraph is guilty of a | ||||||
26 | Class C misdemeanor. In case of a continuing violation, each |
| |||||||
| |||||||
1 | day's continuance thereof shall be a separate and distinct | ||||||
2 | offense. | ||||||
3 | The State Commission shall adopt rules as soon as | ||||||
4 | practicable to implement the requirements of Public Act 99-904 | ||||||
5 | and shall adopt rules prohibiting any such third-party | ||||||
6 | appointment of a third-party provider, except for a common | ||||||
7 | carrier, that has been deemed by the State Commission to have | ||||||
8 | violated the provisions of this Act with regard to any winery | ||||||
9 | shipper licensee. | ||||||
10 | A winery shipper licensee must pay to the Department
of | ||||||
11 | Revenue the State liquor gallonage tax under Section 8-1 for
| ||||||
12 | all wine that is sold by the licensee and shipped to a person
| ||||||
13 | in this State. For the purposes of Section 8-1, a winery
| ||||||
14 | shipper licensee shall be taxed in the same manner as a
| ||||||
15 | manufacturer of wine. A licensee who is not otherwise required | ||||||
16 | to register under the Retailers' Occupation Tax Act must
| ||||||
17 | register under the Use Tax Act to collect and remit use tax to
| ||||||
18 | the Department of Revenue for all gallons of wine that are sold
| ||||||
19 | by the licensee and shipped to persons in this State. If a
| ||||||
20 | licensee fails to remit the tax imposed under this Act in
| ||||||
21 | accordance with the provisions of Article VIII of this Act, | ||||||
22 | the
winery shipper's license shall be revoked in accordance
| ||||||
23 | with the provisions of Article VII of this Act. If a licensee
| ||||||
24 | fails to properly register and remit tax under the Use Tax Act
| ||||||
25 | or the Retailers' Occupation Tax Act for all wine that is sold
| ||||||
26 | by the winery shipper and shipped to persons in this
State, the |
| |||||||
| |||||||
1 | winery shipper's license shall be revoked in
accordance with | ||||||
2 | the provisions of Article VII of this Act. | ||||||
3 | For tax purposes, a A winery shipper licensee must | ||||||
4 | collect, maintain, and
submit to the State Commission on a | ||||||
5 | semi-annual basis the
total number of cases per resident of | ||||||
6 | wine shipped to residents
of this State.
A winery shipper | ||||||
7 | licensed under this subsection (r)
must comply with the | ||||||
8 | requirements of Section 6-29 of this Act. | ||||||
9 | Pursuant to paragraph (5.1) or (5.3) of subsection (a) of | ||||||
10 | Section 3-12, the State Commission may receive, respond to, | ||||||
11 | and investigate any complaint and impose any of the remedies | ||||||
12 | specified in paragraph (1) of subsection (a) of Section 3-12. | ||||||
13 | As used in this subsection, "third-party provider" means | ||||||
14 | any entity that provides fulfillment house services, including | ||||||
15 | warehousing, packaging, distribution, order processing, or | ||||||
16 | shipment of wine, but not the sale of wine, on behalf of a | ||||||
17 | licensed winery shipper. | ||||||
18 | (s) A craft distiller tasting permit license shall allow | ||||||
19 | an Illinois licensed class 1 craft distiller or class 2 craft | ||||||
20 | distiller to transfer a portion of its alcoholic liquor | ||||||
21 | inventory from its class 1 craft distiller or class 2 craft | ||||||
22 | distiller licensed premises to the premises specified in the | ||||||
23 | license hereby created and to conduct a sampling, only in the | ||||||
24 | premises specified in the license hereby created, of the | ||||||
25 | transferred alcoholic liquor in accordance with subsection (c) | ||||||
26 | of Section 6-31 of this Act. The transferred alcoholic liquor |
| |||||||
| |||||||
1 | may not be sold or resold in any form. An applicant for the | ||||||
2 | craft distiller tasting permit license must also submit with | ||||||
3 | the application proof satisfactory to the State Commission | ||||||
4 | that the applicant will provide dram shop liability insurance | ||||||
5 | to the maximum limits and have local authority approval. | ||||||
6 | (t) A brewer warehouse permit may be issued to the holder | ||||||
7 | of a class 1 brewer license or a class 2 brewer license. If the | ||||||
8 | holder of the permit is a class 1 brewer licensee, the brewer | ||||||
9 | warehouse permit shall allow the holder to store or warehouse | ||||||
10 | up to 930,000 gallons of tax-determined beer manufactured by | ||||||
11 | the holder of the permit at the premises specified on the | ||||||
12 | permit. If the holder of the permit is a class 2 brewer | ||||||
13 | licensee, the brewer warehouse permit shall allow the holder | ||||||
14 | to store or warehouse up to 3,720,000 gallons of | ||||||
15 | tax-determined beer manufactured by the holder of the permit | ||||||
16 | at the premises specified on the permit. Sales to | ||||||
17 | non-licensees are prohibited at the premises specified in the | ||||||
18 | brewer warehouse permit. | ||||||
19 | (u) A distilling pub license shall allow the licensee to | ||||||
20 | only (i) manufacture up to 5,000 gallons of spirits per year | ||||||
21 | only on the premises specified in the license, (ii) make sales | ||||||
22 | of the spirits manufactured on the premises or, with the | ||||||
23 | approval of the State Commission, spirits manufactured on | ||||||
24 | another distilling pub licensed premises that is wholly owned | ||||||
25 | and operated by the same licensee to importing distributors | ||||||
26 | and distributors and to non-licensees for use and consumption, |
| |||||||
| |||||||
1 | (iii) store the spirits upon the premises, (iv) sell and offer | ||||||
2 | for sale at retail from the licensed premises for off-premises | ||||||
3 | consumption no more than 5,000 gallons per year so long as such | ||||||
4 | sales are only made in-person, (v) sell and offer for sale at | ||||||
5 | retail for use and consumption on the premises specified in | ||||||
6 | the license any form of alcoholic liquor purchased from a | ||||||
7 | licensed distributor or importing distributor, and (vi) with | ||||||
8 | the prior approval of the State Commission, annually transfer | ||||||
9 | no more than 5,000 gallons of spirits manufactured on the | ||||||
10 | premises to a licensed distilling pub wholly owned and | ||||||
11 | operated by the same licensee. | ||||||
12 | A distilling pub licensee shall not under any circumstance | ||||||
13 | sell or offer for sale spirits manufactured by the distilling | ||||||
14 | pub licensee to retail licensees. | ||||||
15 | A person who holds a class 2 craft distiller license may | ||||||
16 | simultaneously hold a distilling pub license if the class 2 | ||||||
17 | craft distiller (i) does not, under any circumstance, sell or | ||||||
18 | offer for sale spirits manufactured by the class 2 craft | ||||||
19 | distiller to retail licensees; (ii) does not hold more than 3 | ||||||
20 | distilling pub licenses in this State; (iii) does not | ||||||
21 | manufacture more than a combined 100,000 gallons of spirits | ||||||
22 | per year, including the spirits manufactured at the distilling | ||||||
23 | pub; and (iv) is not a member of or affiliated with, directly | ||||||
24 | or indirectly, a manufacturer that produces more than 100,000 | ||||||
25 | gallons of spirits per year or any other alcoholic liquor. | ||||||
26 | (v) A craft distiller warehouse permit may be issued to |
| |||||||
| |||||||
1 | the holder of a class 1 craft distiller or class 2 craft | ||||||
2 | distiller license. The craft distiller warehouse permit shall | ||||||
3 | allow the holder to store or warehouse up to 500,000 gallons of | ||||||
4 | spirits manufactured by the holder of the permit at the | ||||||
5 | premises specified on the permit. Sales to non-licensees are | ||||||
6 | prohibited at the premises specified in the craft distiller | ||||||
7 | warehouse permit. | ||||||
8 | (w) A beer showcase permit license shall allow an | ||||||
9 | Illinois-licensed distributor to transfer a portion of its | ||||||
10 | beer inventory from its licensed premises to the premises | ||||||
11 | specified in the beer showcase permit license, and, in the | ||||||
12 | case of a class 3 brewer, transfer only beer the class 3 brewer | ||||||
13 | manufactures from its licensed premises to the premises | ||||||
14 | specified in the beer showcase permit license; and to sell or | ||||||
15 | offer for sale at retail, only in the premises specified in the | ||||||
16 | beer showcase permit license, the transferred or delivered | ||||||
17 | beer for on or off premise consumption, but not for resale in | ||||||
18 | any form and to sell to non-licensees not more than 96 fluid | ||||||
19 | ounces of beer per person. A beer showcase permit license may | ||||||
20 | be granted for the following time periods: one day or less; or | ||||||
21 | 2 or more days to a maximum of 15 days per location in any | ||||||
22 | 12-month period. An applicant for a beer showcase permit | ||||||
23 | license must also submit with the application proof | ||||||
24 | satisfactory to the State Commission that the applicant will | ||||||
25 | provide dram shop liability insurance to the maximum limits | ||||||
26 | and have local authority approval. The State Commission shall |
| |||||||
| |||||||
1 | require the beer showcase applicant to comply with Section | ||||||
2 | 6-27.1. | ||||||
3 | (Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; | ||||||
4 | 101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. | ||||||
5 | 8-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22; | ||||||
6 | 102-442, eff. 8-20-21; revised 2-28-22.)
| ||||||
7 | (235 ILCS 5/5-8 new) | ||||||
8 | Sec. 5-8. Third-party provider registration. | ||||||
9 | (a) A third-party provider must register with the State | ||||||
10 | Commission before shipping wine into this State. Registration | ||||||
11 | as a third-party provider is valid for a 2-year period and may | ||||||
12 | be renewed. The application for registration as a third-party | ||||||
13 | provider must include: | ||||||
14 | (1) each address from which the third-party provider | ||||||
15 | will ship wine
to a consumer; | ||||||
16 | (2) the name, business address, and license number of | ||||||
17 | each winery shipper, with the name stated as it appears on | ||||||
18 | the winery shipper license, on whose behalf the | ||||||
19 | third-party provider will ship wine to a consumer; and | ||||||
20 | (3) any other information the State Commission may | ||||||
21 | require. | ||||||
22 | (b) To register as a third-party provider, the third-party | ||||||
23 | provider must pay a $50 fee and agree to: | ||||||
24 | (1) allow the State Commission to inspect and audit | ||||||
25 | its records under subsection (e); |
| |||||||
| |||||||
1 | (2) allow the State Commission to inspect a location | ||||||
2 | under Section 3-12; | ||||||
3 | (3) appoint and maintain an agent for service of | ||||||
4 | process under subsection (g); and | ||||||
5 | (4) submit to the jurisdiction of the State | ||||||
6 | Commission, the courts, and any other enforcement | ||||||
7 | authority of this State in a matter relating to | ||||||
8 | enforcement of a law of this State regulating shipment of | ||||||
9 | wine to a person in this State. | ||||||
10 | (c) A third-party provider may ship wine on behalf of a | ||||||
11 | winery shipper to a consumer only if: | ||||||
12 | (1) the third-party provider maintains a registration | ||||||
13 | under this Section that is not suspended, revoked, or | ||||||
14 | canceled; | ||||||
15 | (2) the wine was supplied to the third-party provider | ||||||
16 | by a licensed winery shipper; | ||||||
17 | (3) the package containing the wine clearly indicates: | ||||||
18 | (A) on the shipping label, the name and applicable | ||||||
19 | address of the third-party provider, as they appear in | ||||||
20 | the registration under this Section, as consignor, and | ||||||
21 | the name and address of the consumer, as intended | ||||||
22 | recipient; | ||||||
23 | (B) on the package or shipping label, the name and | ||||||
24 | winery shipper's license number of the licensed winery | ||||||
25 | shipper that supplied to the third-party provider the | ||||||
26 | wine contained in the package; and |
| |||||||
| |||||||
1 | (4) the shipment is otherwise authorized under this | ||||||
2 | Act. | ||||||
3 | (d) A registered third-party provider is subject to the | ||||||
4 | jurisdiction of the State Commission, the courts, and any | ||||||
5 | other enforcement authority of this State in a matter relating | ||||||
6 | to the enforcement of the laws of this State regulating | ||||||
7 | shipment of alcoholic liquor directly to a person in this | ||||||
8 | State. | ||||||
9 | (e) The State Commission may inspect and audit the records | ||||||
10 | of a registered third-party provider for compliance with the | ||||||
11 | laws of this State regulating shipment of wine directly to a | ||||||
12 | person in this State. A registered third-party provider shall | ||||||
13 | allow the State Commission to inspect and audit its records | ||||||
14 | and, at the State Commission's request in a record, provide | ||||||
15 | complete and accurate copies of its records to the State | ||||||
16 | Commission at a location specified by the State Commission, | ||||||
17 | not later than 15 days after the date of the request. | ||||||
18 | (f) The State Commission may inspect, during ordinary | ||||||
19 | hours of operation, a location where a registered third-party | ||||||
20 | provider conducts business to assess compliance with the laws | ||||||
21 | of this State regulating shipment of alcoholic liquor directly | ||||||
22 | to a person in this State. | ||||||
23 | (g) A registered third-party provider shall appoint and | ||||||
24 | continuously maintain with the State Commission an agent for | ||||||
25 | service of process. The agent may be located in this State or | ||||||
26 | another state. By appointing an agent under this subsection, |
| |||||||
| |||||||
1 | the registered third-party provider affirms that the agent | ||||||
2 | consents to accept service. Service of process on the agent | ||||||
3 | constitutes valid service of process on the registered | ||||||
4 | third-party provider in an action or proceeding arising out of | ||||||
5 | enforcement of law of this State regulating shipment of wine | ||||||
6 | directly to a person in this State. If a registered | ||||||
7 | third-party provider fails to maintain in the records of the | ||||||
8 | State Commission a current agent for service of process or if | ||||||
9 | the current agent cannot be served with reasonable diligence, | ||||||
10 | the State Commission is the agent for service of process. | ||||||
11 | (h) The State Commission may disclose a report, record, | ||||||
12 | order, or other information in its possession, for a | ||||||
13 | regulatory or enforcement purpose, to: | ||||||
14 | (1) a State agency or law enforcement agency; | ||||||
15 | (2) a local or state agency in another state with | ||||||
16 | regulatory authority over matters relating to alcoholic | ||||||
17 | liquor or taxation or a law enforcement agency of another | ||||||
18 | state; and | ||||||
19 | (3) a federal agency with regulatory authority | ||||||
20 | relating to alcoholic liquor or taxation or a federal law | ||||||
21 | enforcement agency. | ||||||
22 | (i) The State Commission may disclose to the public an | ||||||
23 | order resulting from a completed investigation.
| ||||||
24 | (235 ILCS 5/6-29) (from Ch. 43, par. 144e)
| ||||||
25 | Sec. 6-29. Winery shipper's license.
|
| |||||||
| |||||||
1 | (a) The General Assembly declares that the following is | ||||||
2 | the
intent of this Section: | ||||||
3 | (1) To authorize direct shipment of wine by an
| ||||||
4 | out-of-state maker of wine on the same basis permitted an
| ||||||
5 | in-state maker of wine pursuant to the authority of the | ||||||
6 | State
under the provisions of Section 2 of the | ||||||
7 | Twenty-First
Amendment to the United States Constitution | ||||||
8 | and in
conformance with the United States Supreme Court | ||||||
9 | decision
decided on May 16, 2005 in Granholm v. Heald. | ||||||
10 | (2) To reaffirm that the General Assembly's findings
| ||||||
11 | and declarations that selling alcoholic liquor through
| ||||||
12 | various direct marketing means such as catalogs,
| ||||||
13 | newspapers, mailings, and the Internet directly to
| ||||||
14 | consumers of this State poses a serious threat to the
| ||||||
15 | State's efforts to further temperance and prevent youth
| ||||||
16 | from accessing alcoholic liquor and the expansion of youth
| ||||||
17 | access to additional types of alcoholic liquors. | ||||||
18 | (3) To maintain the State's broad powers granted by
| ||||||
19 | Section 2 of the Twenty-First Amendment to the United
| ||||||
20 | States Constitution to control the importation or sale of
| ||||||
21 | alcoholic liquor and its right to structure its alcoholic
| ||||||
22 | liquor distribution system. | ||||||
23 | (4) To ensure that the General Assembly, by | ||||||
24 | authorizing
limited direct shipment of wine to meet the | ||||||
25 | directives of
the United States Supreme Court, does not | ||||||
26 | intend to impair
or modify the State's distribution of |
| |||||||
| |||||||
1 | wine through
distributors or importing distributors, but | ||||||
2 | only to permit
limited shipment of wine for personal use. | ||||||
3 | (5) To provide that, in the event that a court of
| ||||||
4 | competent jurisdiction declares or finds that this
| ||||||
5 | Section, which is enacted to conform Illinois law to the
| ||||||
6 | United States Supreme Court decision, is invalid or
| ||||||
7 | unconstitutional, the Illinois General Assembly at its
| ||||||
8 | earliest general session shall conduct hearings and study
| ||||||
9 | methods to conform to any directive or order of the court | ||||||
10 | consistent with the temperance and
revenue collection | ||||||
11 | purposes of this Act. | ||||||
12 | (a-5) In this Section, "carrier" means a person or entity | ||||||
13 | that: | ||||||
14 | (1) holds himself, herself, or itself out to the | ||||||
15 | general public as engaged in the business of
transporting | ||||||
16 | goods for a fee; and | ||||||
17 | (2) is engaged in the business of transporting and | ||||||
18 | delivering alcoholic
beverages in this State directly to | ||||||
19 | consumers. | ||||||
20 | (b) Notwithstanding any other provision of law, a
wine | ||||||
21 | shipper licensee may ship, for personal use and not for
| ||||||
22 | resale, not more than 12 cases of wine per year to any resident
| ||||||
23 | of this State who is 21 years of age or older. | ||||||
24 | (b-3) Notwithstanding any other provision of law, sale and
| ||||||
25 | shipment by a winery shipper licensee pursuant to this
Section | ||||||
26 | shall be deemed to constitute a sale in this State. |
| |||||||
| |||||||
1 | (b-5) The shipping container of any wine shipped under | ||||||
2 | this
Section shall be clearly labeled with the following | ||||||
3 | words:
"CONTAINS ALCOHOL. SIGNATURE OF A PERSON 21 YEARS OF | ||||||
4 | AGE OR
OLDER REQUIRED FOR DELIVERY. PROOF OF AGE AND IDENTITY | ||||||
5 | MUST BE
SHOWN BEFORE DELIVERY.". This warning must be | ||||||
6 | prominently
displayed on the packaging. A licensee shall | ||||||
7 | require the
transporter or common carrier that delivers the | ||||||
8 | wine to obtain
the signature of a person 21 years of age or | ||||||
9 | older at the
delivery address at the time of delivery. At the | ||||||
10 | expense of the
licensee, the licensee shall receive a delivery | ||||||
11 | confirmation
from the express company, common carrier, or | ||||||
12 | contract carrier
indicating the location of the delivery, time | ||||||
13 | of delivery, and
the name and signature of the individual 21 | ||||||
14 | years of age or
older who accepts delivery. The State | ||||||
15 | Commission shall design
and create a label or approve a label | ||||||
16 | that must be affixed to
the shipping container by the | ||||||
17 | licensee.
| ||||||
18 | (b-10) A carrier may not deliver to a consumer a package | ||||||
19 | known by
the carrier to contain wine unless: | ||||||
20 | (1) the consignor is a licensed winery shipper and the | ||||||
21 | carrier has verified its winery shipper license for the | ||||||
22 | current license period; or | ||||||
23 | (2) the consignor is a registered third-party provider | ||||||
24 | and the carrier has verified the
registration. | ||||||
25 | A carrier that verifies that a winery shipper has a winery | ||||||
26 | shipper license for the current
license period may consider |
| |||||||
| |||||||
1 | the license to be valid for the remainder of the license | ||||||
2 | period, unless
the carrier receives notice from the State | ||||||
3 | Commission that the license has been suspended or revoked. A | ||||||
4 | carrier that verifies that a third-party provider is | ||||||
5 | registered may
consider the registration to be valid unless | ||||||
6 | the carrier receives notice from the State Commission that
the | ||||||
7 | registration has been suspended or revoked. | ||||||
8 | (b-15) A registered third-party provider shall file with | ||||||
9 | the State Commission a monthly report that includes: | ||||||
10 | (1) the name, business address, and registration | ||||||
11 | number of the third-party provider; | ||||||
12 | (2) the total number of gallons of wine shipped to | ||||||
13 | consumers by the third-party provider during the reporting | ||||||
14 | period; and | ||||||
15 | (3) for each shipment of wine to a consumer during the | ||||||
16 | reporting period: | ||||||
17 | (A) the name, business address, and license number | ||||||
18 | of the winery shipper on whose behalf the third-party | ||||||
19 | provider shipped the wine, with the name stated, if | ||||||
20 | possible, as it appears on the winery shipper license; | ||||||
21 | (B) the name and address of the consumer to whom | ||||||
22 | the wine was shipped; | ||||||
23 | (C) the address from which the third-party | ||||||
24 | provider originated the shipment, stated identically | ||||||
25 | as an address provided by the third-party provider | ||||||
26 | under paragraph (1) of subsection (a) of Section 5-8; |
| |||||||
| |||||||
1 | (D) the date the shipment was delivered; | ||||||
2 | (E) the type and quantity by volume of wine | ||||||
3 | shipped; and | ||||||
4 | (F) the name and business address of the carrier | ||||||
5 | that delivered the wine and the carrier's parcel | ||||||
6 | tracking number for the shipment. | ||||||
7 | If no business was transacted in this State during the | ||||||
8 | reporting period, a report under this subsection must include | ||||||
9 | the information under paragraph (1) and report that no | ||||||
10 | business was transacted in this State during the reporting | ||||||
11 | period. | ||||||
12 | Any books, records, supporting papers, and documents | ||||||
13 | containing information and data relating to a statement under | ||||||
14 | this subsection shall be kept and preserved for a period of 3 | ||||||
15 | years, unless their destruction is authorized sooner in | ||||||
16 | writing by the Director of Revenue, and shall be open and | ||||||
17 | available to inspection by the Director of Revenue or the | ||||||
18 | State Commission or any duly authorized officer, agent, or | ||||||
19 | employee of the State Commission or the Department of Revenue, | ||||||
20 | at all times during business hours of the day. Any person who | ||||||
21 | violates any provision of this subsection or any rule of the | ||||||
22 | State Commission for the administration and enforcement of the | ||||||
23 | provisions of this subsection is guilty of a Class C | ||||||
24 | misdemeanor. In case of a continuing violation, each day's | ||||||
25 | continuance thereof shall be a separate and distinct offense. | ||||||
26 | (b-20) A licensed winery shipper shall file with the State |
| |||||||
| |||||||
1 | Commission a monthly report that includes: | ||||||
2 | (1) the name, business address, and license number of | ||||||
3 | the licensed winery shipper; | ||||||
4 | (2) the total gallons of each type of wine shipped to | ||||||
5 | consumers during the reporting period; and | ||||||
6 | (3) for each shipment of wine to a consumer during the | ||||||
7 | reporting period: | ||||||
8 | (A) the name and address of the consumer to whom | ||||||
9 | the wine was shipped; | ||||||
10 | (B) the date the shipment was delivered; | ||||||
11 | (C) the type and quantity by volume of wine | ||||||
12 | shipped; | ||||||
13 | (D) the purchase price of the wine shipped and the | ||||||
14 | amount and type of each tax charged in connection with | ||||||
15 | the wine; | ||||||
16 | (E) if the wine was shipped for the licensed | ||||||
17 | winery shipper by a third-party provider, the name, | ||||||
18 | business address, and registration number of the | ||||||
19 | third-party provider, with the name stated, if | ||||||
20 | possible, as it appears on the third-party provider's | ||||||
21 | registration; and | ||||||
22 | (F) if the wine was delivered by a carrier, the | ||||||
23 | name and business address of the carrier and the | ||||||
24 | carrier's parcel tracking number for the shipment. | ||||||
25 | If no business was transacted in this State during the | ||||||
26 | reporting period, a report under this subsection must include |
| |||||||
| |||||||
1 | the information under paragraph (1) and report that no | ||||||
2 | business was transacted in this State during the reporting | ||||||
3 | period. | ||||||
4 | (b-25) A carrier shall file with the State Commission a | ||||||
5 | monthly report that includes: | ||||||
6 | (1) the name and business address of the carrier; | ||||||
7 | (2) a list containing the name, business address, and | ||||||
8 | winery shipper license number or third-party provider | ||||||
9 | registration number of each licensed winery shipper and | ||||||
10 | registered third-party provider with which the carrier has | ||||||
11 | an agreement to ship wine, with the name stated, if | ||||||
12 | possible, as it appears on the winery shipper license or | ||||||
13 | third-party provider registration; and | ||||||
14 | (3) for each shipment known by the carrier to contain | ||||||
15 | wine that was delivered to a consumer during the reporting | ||||||
16 | period: | ||||||
17 | (A) the name and business address of the consignor | ||||||
18 | of the shipment; | ||||||
19 | (B) the name and address of the consumer; | ||||||
20 | (C) the date the shipment was delivered by the | ||||||
21 | carrier; | ||||||
22 | (D) the weight, in pounds, of the package; and | ||||||
23 | (E) the carrier's parcel tracking number for the | ||||||
24 | shipment. | ||||||
25 | If no business was transacted in this State during the | ||||||
26 | reporting period, a report under this subsection must include |
| |||||||
| |||||||
1 | the information under paragraph (1) and report that no | ||||||
2 | business was transacted in this State during the reporting | ||||||
3 | period. | ||||||
4 | (b-30) The State Commission shall prescribe the form and | ||||||
5 | deadline for filing a report under this Section. The State | ||||||
6 | Commission may require the report to be filed electronically. | ||||||
7 | The State Commission may require a person filing the report to | ||||||
8 | submit additional information, including business records, to | ||||||
9 | substantiate information in the report. | ||||||
10 | (b-35) Except as provided in subsection (b-40), a report | ||||||
11 | filed under this Section, and information obtained from the | ||||||
12 | report, is confidential, exempt from disclosure under the | ||||||
13 | Freedom of Information Act, and exempt from public inspection. | ||||||
14 | (b-40) The State Commission may disclose a report under | ||||||
15 | this Section or information from the report: | ||||||
16 | (1) as provided in subsections (f) and (g) of Section | ||||||
17 | 5-28; | ||||||
18 | (2) if reasonably necessary to enforce or implement | ||||||
19 | this Act or other law of this State relating to the | ||||||
20 | shipment of alcoholic liquor directly to individuals in | ||||||
21 | this State; or | ||||||
22 | (3) as a compilation of aggregated data if personally | ||||||
23 | identifiable information is not disclosed. | ||||||
24 | (b-42) A carrier shipping wine into or within this State | ||||||
25 | shall appoint and continuously maintain with the State | ||||||
26 | Commission an agent for service of process. The agent may be |
| |||||||
| |||||||
1 | located in this State or another state. By appointing an agent | ||||||
2 | under this subsection, the carrier affirms that the agent | ||||||
3 | consents to accept service. Service of process on the agent | ||||||
4 | constitutes valid service of process on the carrier in an | ||||||
5 | action or proceeding arising out of enforcement of law of this | ||||||
6 | State regulating shipment of wine directly to a person in this | ||||||
7 | State. If a carrier fails to maintain in the records of the | ||||||
8 | State Commission a current agent for service of process or if | ||||||
9 | the current agent cannot be served with reasonable diligence, | ||||||
10 | the State Commission is the agent for service of process. | ||||||
11 | (b-45) If the State Commission has reason to believe that | ||||||
12 | alcoholic liquor has been shipped unlawfully into or within | ||||||
13 | this State, the State Commission may give notice to the | ||||||
14 | consignor requiring the consignor to show cause why shipments | ||||||
15 | by the consignor into or within this State should not be | ||||||
16 | prohibited. If the State Commission, after an opportunity for | ||||||
17 | an evidentiary hearing, determines that the consignor shipped | ||||||
18 | alcoholic liquor into or within this State unlawfully, the | ||||||
19 | State Commission may issue an administrative order prohibiting | ||||||
20 | additional shipments by the consignor of alcoholic liquor into | ||||||
21 | or within this State. | ||||||
22 | (b-50) The State Commission may give notice to a carrier | ||||||
23 | of the administrative order under subsection (b-45). Except as | ||||||
24 | provided in subsection (b-60), beginning 10 days after the | ||||||
25 | date of the notice, and until the carrier receives notice that | ||||||
26 | the administrative order is rescinded, the carrier may not |
| |||||||
| |||||||
1 | accept from the consignor identified in the notice, for | ||||||
2 | shipment into or within this State, a package known by the | ||||||
3 | carrier to contain wine. | ||||||
4 | (b-55) For good cause, the State Commission may rescind an | ||||||
5 | administrative order issued under subsection (b-45). On | ||||||
6 | rescinding the order, the State Commission shall give notice | ||||||
7 | of the rescission to each carrier that received notice under | ||||||
8 | subsection (b-50) of the order. | ||||||
9 | (b-60) The State Commission may not hold a hearing under | ||||||
10 | subsection (a) less than 30 days after the date of the notice | ||||||
11 | requiring the consignor to show cause unless: | ||||||
12 | (1) the consignor agrees to an earlier hearing date; | ||||||
13 | or | ||||||
14 | (2) the notice describes with particularity how the | ||||||
15 | consignor's alleged unlawful shipment poses a serious risk | ||||||
16 | to public health or safety. | ||||||
17 | (b-65) If the notice includes a description under | ||||||
18 | paragraph (2) of subsection (b-60) and the State Commission | ||||||
19 | issues an administrative order under subsection (a): | ||||||
20 | (1) the order must identify the risk; and | ||||||
21 | (2) the State Commission's notice under subsection | ||||||
22 | (b-45) to a carrier must require the carrier to implement | ||||||
23 | the order as soon as possible. | ||||||
24 | (b-70) An administrative order issued under subsection (a) | ||||||
25 | is subject to judicial review under the Administrative Review | ||||||
26 | Law. |
| |||||||
| |||||||
1 | (b-75) This amendatory Act of the 103rd General Assembly | ||||||
2 | modifies, limits, or supersedes the Electronic Signatures in | ||||||
3 | Global and National Commerce Act, 15 U.S.C. Section 7001 et | ||||||
4 | seq., as amended, but does not modify, limit, or supersede 15 | ||||||
5 | U.S.C. Section 7001(c), or authorize electronic delivery of | ||||||
6 | any of the notices described in 15 U.S.C. Section 7003(b). | ||||||
7 | (c) No broker within this State shall solicit consumers to | ||||||
8 | engage in
direct wine shipments under this Section.
| ||||||
9 | (d) It is not the intent of this Section to impair the | ||||||
10 | distribution of
wine through distributors or importing | ||||||
11 | distributors, but only to permit
shipments of wine for | ||||||
12 | personal use.
| ||||||
13 | (Source: P.A. 95-634, eff. 6-1-08 .)
| ||||||
14 | (235 ILCS 5/7-3.5 new) | ||||||
15 | Sec. 7-3.5. Suspension, revocation, or nonrenewal of | ||||||
16 | license for unlawful
shipping into another state. | ||||||
17 | (a) The State Commission may suspend, revoke, or refuse to | ||||||
18 | issue or renew a license to manufacture, distribute, or sell | ||||||
19 | alcoholic liquor issued by the State Commission if the State | ||||||
20 | Commission finds, after notice and an opportunity for an | ||||||
21 | evidentiary hearing, that the person holding the license has | ||||||
22 | shipped alcoholic liquor into another state in violation of | ||||||
23 | that state's law. | ||||||
24 | (b) The State Commission may not suspend, revoke, or | ||||||
25 | refuse to issue or renew a license issued by the State |
| |||||||
| |||||||
1 | Commission under subsection (a) if the person holding the | ||||||
2 | license shows that: | ||||||
3 | (1) the violation of the other state's law is the | ||||||
4 | subject of an enforcement action in the other state that | ||||||
5 | is pending before an administrative body or trial or | ||||||
6 | appellate court in the other state; | ||||||
7 | (2) an enforcement action described in paragraph (1) | ||||||
8 | has concluded in the other state and resulted in a | ||||||
9 | determination that no violation of the other state's law | ||||||
10 | occurred; or | ||||||
11 | (3) the violation of the other state's law occurred | ||||||
12 | more than 2 years before the date of the notice under | ||||||
13 | subsection (a).
| ||||||
14 | (235 ILCS 5/7-15 new) | ||||||
15 | Sec. 7-15. Third-party provider registrations. | ||||||
16 | Registrations as a third-party provider shall be governed | ||||||
17 | under this Article in the same manner as licenses.
|