Bill Text: IL SB3245 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Liquor Control Act of 1934. Provides that any person licensed as a brewer, class 1 brewer, or class 2 brewer shall be permitted to sell on the licensed premises to non-licensees for on-premises or off-premises consumption (instead of for on or off-premises consumption for the premises in which he or she actually conducts such business). Provides that any person licensed as a brewer, class 1 brewer, or class 2 brewer may sell wine or spirits on the licensed premises for off-premises consumption. Provides that any person licensed as a brewer may designate, contract with, use, and pay reasonable compensation to a management company, including a retail licensee, to provide services to the licensed brewer for the licensed premises if: (1) the compensation paid to the management company represents fair market value for the services provided; (2) the agreements under which the arrangements are made were approved by the Illinois Liquor Control Commission; and (3) the arrangements are not a subterfuge to provide any retailer with a prohibited thing of value.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB3245 Detail]

Download: Illinois-2023-SB3245-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3245 Introduced 2/6/2024, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
235 ILCS 5/6-4 from Ch. 43, par. 121
Amends the Liquor Control Act of 1934. Provides that any person licensed as a brewer, class 1 brewer, or class 2 brewer shall be permitted to sell on the licensed premises to non-licensees for on-premises or off-premises consumption (instead of for on or off-premises consumption for the premises in which he or she actually conducts such business). Provides that any person licensed as a brewer, class 1 brewer, or class 2 brewer may sell wine or spirits on the licensed premises for off-premises consumption. Provides that any person licensed as a brewer may designate, contract with, use, and pay reasonable compensation to a management company, including a retail licensee, to provide services to the licensed brewer for the licensed premises if: (1) the compensation paid to the management company represents fair market value for the services provided; (2) the agreements under which the arrangements are made were approved by the Illinois Liquor Control Commission; and (3) the arrangements are not a subterfuge to provide any retailer with a prohibited thing of value.
LRB103 37761 RPS 67889 b
A BILL FOR
SB3245 LRB103 37761 RPS 67889 b
AN ACT concerning liquor.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Liquor Control Act of 1934 is amended by
changing Section 6-4 as follows:
(235 ILCS 5/6-4) (from Ch. 43, par. 121)
Sec. 6-4. (a) No person licensed by any licensing
authority as a distiller, or a wine manufacturer, or any
subsidiary or affiliate thereof, or any officer, associate,
member, partner, representative, employee, agent or
shareholder owning more than 5% of the outstanding shares of
such person shall be issued an importing distributor's or
distributor's license, nor shall any person licensed by any
licensing authority as an importing distributor, distributor
or retailer, or any subsidiary or affiliate thereof, or any
officer or associate, member, partner, representative,
employee, agent or shareholder owning more than 5% of the
outstanding shares of such person be issued a distiller's
license, a craft distiller's license, or a wine manufacturer's
license; and no person or persons licensed as a distiller,
craft distiller, class 1 craft distiller, or class 2 craft
distiller by any licensing authority shall have any interest,
directly or indirectly, with such distributor or importing

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distributor.
However, an importing distributor or distributor, which on
January 1, 1985 is owned by a brewer, or any subsidiary or
affiliate thereof or any officer, associate, member, partner,
representative, employee, agent or shareholder owning more
than 5% of the outstanding shares of the importing distributor
or distributor referred to in this paragraph, may own or
acquire an ownership interest of more than 5% of the
outstanding shares of a wine manufacturer and be issued a wine
manufacturer's license by any licensing authority.
(b) The foregoing provisions shall not apply to any person
licensed by any licensing authority as a distiller or wine
manufacturer, or to any subsidiary or affiliate of any
distiller or wine manufacturer who shall have been heretofore
licensed by the State Commission as either an importing
distributor or distributor during the annual licensing period
expiring June 30, 1947, and shall actually have made sales
regularly to retailers.
(c) Provided, however, that in such instances where a
distributor's or importing distributor's license has been
issued to any distiller or wine manufacturer or to any
subsidiary or affiliate of any distiller or wine manufacturer
who has, during the licensing period ending June 30, 1947,
sold or distributed as such licensed distributor or importing
distributor alcoholic liquors and wines to retailers, such
distiller or wine manufacturer or any subsidiary or affiliate

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of any distiller or wine manufacturer holding such
distributor's or importing distributor's license may continue
to sell or distribute to retailers such alcoholic liquors and
wines which are manufactured, distilled, processed or marketed
by distillers and wine manufacturers whose products it sold or
distributed to retailers during the whole or any part of its
licensing periods; and such additional brands and additional
products may be added to the line of such distributor or
importing distributor, provided, that such brands and such
products were not sold or distributed by any distributor or
importing distributor licensed by the State Commission during
the licensing period ending June 30, 1947, but can not sell or
distribute to retailers any other alcoholic liquors or wines.
(d) It shall be unlawful for any distiller licensed
anywhere to have any stock ownership or interest in any
distributor's or importing distributor's license wherein any
other person has an interest therein who is not a distiller and
does not own more than 5% of any stock in any distillery.
Nothing herein contained shall apply to such distillers or
their subsidiaries or affiliates, who had a distributor's or
importing distributor's license during the licensing period
ending June 30, 1947, which license was owned in whole by such
distiller, or subsidiaries or affiliates of such distiller.
(e) Any person licensed as a brewer, class 1 brewer, or
class 2 brewer shall be permitted to sell on the licensed
premises to non-licensees for on-premises on or off-premises

SB3245 - 4 - LRB103 37761 RPS 67889 b
consumption for the premises in which he or she actually
conducts such business: (i) beer manufactured by the brewer,
class 1 brewer, class 2 brewer, or class 3 brewer; (ii) beer
manufactured by any other brewer, class 1 brewer, class 2
brewer, or class 3 brewer; and (iii) cider, or mead, wine, or
spirits. Any person licensed as a class 3 brewer shall be
permitted to sell on the licensed premises to non-licensees
for on-premises on or off-premises off premises consumption
for the premises in which he or she actually conducts such
business: (i) beer manufactured by the class 3 brewer on the
premises; (ii) beer manufactured by any other brewer, class 1
brewer, class 2 brewer, or class 3 brewer; and (iii) cider,
wine, and spirits. All products sold under this subsection
that are not manufactured on premises must be purchased
through a licensed distributor, importing distributor, or
manufacturer with self-distribution privileges. Such sales
shall be limited to on-premises, in-person sales only, for
lawful consumption on or off premises. Such authorization
shall be considered a privilege granted by the brewer license
and, other than a manufacturer of beer as stated above or a
designated management company, including a retail licensee, as
described in this subsection, no manufacturer or distributor
or importing distributor, excluding airplane licensees
exercising powers provided in paragraph (i) of Section 5-1 of
this Act, or any subsidiary or affiliate thereof, or any
officer, associate, member, partner, representative, employee

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or agent, or shareholder shall be issued a retailer's license,
nor shall any person having a retailer's license, excluding
airplane licensees exercising powers provided in paragraph (i)
of Section 5-1 of this Act, or any subsidiary or affiliate
thereof, or any officer, associate, member, partner,
representative or agent, or shareholder be issued a
manufacturer's license or importing distributor's license.
Notwithstanding any other provision of this Act, any
person licensed as a brewer may designate, contract with, use,
and pay reasonable compensation to a management company,
including a retail licensee, to provide services to the
licensed brewer for the licensed premises if: (1) the
compensation paid to the management company represents fair
market value for the services provided; (2) the agreements
under which the arrangements are made were approved by the
State Commission; and (3) the arrangements are not a
subterfuge to provide any retailer with a prohibited thing of
value in violation of Section 6-5.
A manufacturer of beer that imports or transfers beer into
this State must comply with Sections 6-8 and 8-1 of this Act.
A person who holds a class 2 brewer license and is
authorized by this Section to sell beer to non-licensees shall
not sell beer to non-licensees from more than 3 total brewer or
commonly owned brew pub licensed locations in this State. The
class 2 brewer shall designate to the State Commission the
brewer or brew pub locations from which it will sell beer to

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non-licensees.
A person licensed as a class 1 craft distiller or a class 2
craft distiller, including a person who holds more than one
class 1 craft distiller or class 2 craft distiller license,
not affiliated with any other person manufacturing spirits may
be authorized by the State Commission to sell (1) up to 5,000
gallons of spirits produced by the person to non-licensees for
on or off-premises consumption for the premises in which he or
she actually conducts business permitting only the retail sale
of spirits manufactured at such premises and (2) vermouth
purchased through a licensed distributor for on-premises
consumption. Such sales shall be limited to on-premises,
in-person sales only, for lawful consumption on or off
premises, and such authorization shall be considered a
privilege granted by the class 1 craft distiller or class 2
craft distiller license. A class 1 craft distiller or class 2
craft distiller licensed for retail sale shall secure liquor
liability insurance coverage in an amount at least equal to
the maximum liability amounts set forth in subsection (a) of
Section 6-21 of this Act.
A class 1 craft distiller or class 2 craft distiller
license holder shall not deliver any alcoholic liquor to any
non-licensee off the licensed premises. A class 1 craft
distiller or class 2 craft distiller shall affirm in its
annual license application that it does not produce more than
50,000 or 100,000 gallons of distilled spirits annually,

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whichever is applicable, and that the craft distiller does not
sell more than 5,000 gallons of spirits to non-licensees for
on or off-premises consumption. In the application, which
shall be sworn under penalty of perjury, the class 1 craft
distiller or class 2 craft distiller shall state the volume of
production and sales for each year since the class 1 craft
distiller's or class 2 craft distiller's establishment.
A person who holds a class 1 craft distiller or class 2
craft distiller license and is authorized by this Section to
sell spirits to non-licensees shall not sell spirits to
non-licensees from more than 3 total distillery or commonly
owned distilling pub licensed locations in this State. The
class 1 craft distiller or class 2 craft distiller shall
designate to the State Commission the distillery or distilling
pub locations from which it will sell spirits to
non-licensees.
(f) (Blank).
(g) Notwithstanding any of the foregoing prohibitions, a
limited wine manufacturer may sell at retail at its
manufacturing site for on or off premises consumption and may
sell to distributors. A limited wine manufacturer licensee
shall secure liquor liability insurance coverage in an amount
at least equal to the maximum liability amounts set forth in
subsection (a) of Section 6-21 of this Act.
(h) The changes made to this Section by Public Act 99-47
shall not diminish or impair the rights of any person, whether

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a distiller, wine manufacturer, agent, or affiliate thereof,
who requested in writing and submitted documentation to the
State Commission on or before February 18, 2015 to be approved
for a retail license pursuant to what has heretofore been
subsection (f); provided that, on or before that date, the
State Commission considered the intent of that person to apply
for the retail license under that subsection and, by recorded
vote, the State Commission approved a resolution indicating
that such a license application could be lawfully approved
upon that person duly filing a formal application for a retail
license and if that person, within 90 days of the State
Commission appearance and recorded vote, first filed an
application with the appropriate local commission, which
application was subsequently approved by the appropriate local
commission prior to consideration by the State Commission of
that person's application for a retail license. It is further
provided that the State Commission may approve the person's
application for a retail license or renewals of such license
if such person continues to diligently adhere to all
representations made in writing to the State Commission on or
before February 18, 2015, or thereafter, or in the affidavit
filed by that person with the State Commission to support the
issuance of a retail license and to abide by all applicable
laws and duly adopted rules.
(i) Notwithstanding any other provision of this Act, the
common ownership of a brewery, winery, or a distillery shall

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