Bill Text: IL SB3358 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Liquor Control Act of 1934. Creates the distillery shipper's license. Provides that a distillery shipper's license shall allow a person with an Illinois distiller license, a craft distiller license, a class 1 craft distiller license, or class 2 craft distiller license or who is licensed to make spirits under the laws of another state to ship spirits directly to a resident of this State who is 21 years of age or older for that resident's personal use and not for resale. Sets forth provisions concerning licensure application; fees; recordkeeping; and shipping and delivery of spirits. Preempts home rule powers. Makes conforming and other changes.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB3358 Detail]

Download: Illinois-2023-SB3358-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3358 Introduced 2/7/2024, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
235 ILCS 5/3-12
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/5-3 from Ch. 43, par. 118
235 ILCS 5/6-29.05 new
Amends the Liquor Control Act of 1934. Creates the distillery shipper's license. Provides that a distillery shipper's license shall allow a person with an Illinois distiller license, a craft distiller license, a class 1 craft distiller license, or class 2 craft distiller license or who is licensed to make spirits under the laws of another state to ship spirits directly to a resident of this State who is 21 years of age or older for that resident's personal use and not for resale. Sets forth provisions concerning licensure application; fees; recordkeeping; and shipping and delivery of spirits. Preempts home rule powers. Makes conforming and other changes.
LRB103 38772 RPS 68909 b
A BILL FOR
SB3358 LRB103 38772 RPS 68909 b
AN ACT concerning liquor.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Liquor Control Act of 1934 is amended by
changing Sections 3-12, 5-1, and 5-3 and by adding Section
6-29.05 as follows:
(235 ILCS 5/3-12)
Sec. 3-12. Powers and duties of State Commission.
(a) The State Commission shall have the following powers,
functions, and duties:
(1) To receive applications and to issue licenses to
manufacturers, foreign importers, importing distributors,
distributors, non-resident dealers, on premise consumption
retailers, off premise sale retailers, special event
retailer licensees, special use permit licenses, auction
liquor licenses, brew pubs, caterer retailers,
non-beverage users, railroads, including owners and
lessees of sleeping, dining and cafe cars, airplanes,
boats, brokers, and wine maker's premises licensees in
accordance with the provisions of this Act, and to suspend
or revoke such licenses upon the State Commission's
determination, upon notice after hearing, that a licensee
has violated any provision of this Act or any rule or

SB3358 - 2 - LRB103 38772 RPS 68909 b
regulation issued pursuant thereto and in effect for 30
days prior to such violation. Except in the case of an
action taken pursuant to a violation of Section 6-3, 6-5,
or 6-9, any action by the State Commission to suspend or
revoke a licensee's license may be limited to the license
for the specific premises where the violation occurred. An
action for a violation of this Act shall be commenced by
the State Commission within 2 years after the date the
State Commission becomes aware of the violation.
In lieu of suspending or revoking a license, the
commission may impose a fine, upon the State Commission's
determination and notice after hearing, that a licensee
has violated any provision of this Act or any rule or
regulation issued pursuant thereto and in effect for 30
days prior to such violation.
For the purpose of this paragraph (1), when
determining multiple violations for the sale of alcohol to
a person under the age of 21, a second or subsequent
violation for the sale of alcohol to a person under the age
of 21 shall only be considered if it was committed within 5
years after the date when a prior violation for the sale of
alcohol to a person under the age of 21 was committed.
The fine imposed under this paragraph may not exceed
$500 for each violation. Each day that the activity, which
gave rise to the original fine, continues is a separate
violation. The maximum fine that may be levied against any

SB3358 - 3 - LRB103 38772 RPS 68909 b
licensee, for the period of the license, shall not exceed
$20,000. The maximum penalty that may be imposed on a
licensee for selling a bottle of alcoholic liquor with a
foreign object in it or serving from a bottle of alcoholic
liquor with a foreign object in it shall be the
destruction of that bottle of alcoholic liquor for the
first 10 bottles so sold or served from by the licensee.
For the eleventh bottle of alcoholic liquor and for each
third bottle thereafter sold or served from by the
licensee with a foreign object in it, the maximum penalty
that may be imposed on the licensee is the destruction of
the bottle of alcoholic liquor and a fine of up to $50.
Any notice issued by the State Commission to a
licensee for a violation of this Act or any notice with
respect to settlement or offer in compromise shall include
the field report, photographs, and any other supporting
documentation necessary to reasonably inform the licensee
of the nature and extent of the violation or the conduct
alleged to have occurred. The failure to include such
required documentation shall result in the dismissal of
the action.
(2) To adopt such rules and regulations consistent
with the provisions of this Act which shall be necessary
to carry on its functions and duties to the end that the
health, safety and welfare of the People of the State of
Illinois shall be protected and temperance in the

SB3358 - 4 - LRB103 38772 RPS 68909 b
consumption of alcoholic liquors shall be fostered and
promoted and to distribute copies of such rules and
regulations to all licensees affected thereby.
(3) To call upon other administrative departments of
the State, county and municipal governments, county and
city police departments and upon prosecuting officers for
such information and assistance as it deems necessary in
the performance of its duties.
(4) To recommend to local commissioners rules and
regulations, not inconsistent with the law, for the
distribution and sale of alcoholic liquors throughout the
State.
(5) To inspect, or cause to be inspected, any premises
in this State where alcoholic liquors are manufactured,
distributed, warehoused, or sold. Nothing in this Act
authorizes an agent of the State Commission to inspect
private areas within the premises without reasonable
suspicion or a warrant during an inspection. "Private
areas" include, but are not limited to, safes, personal
property, and closed desks.
(5.1) Upon receipt of a complaint or upon having
knowledge that any person is engaged in business as a
manufacturer, importing distributor, distributor, or
retailer without a license or valid license, to conduct an
investigation. If, after conducting an investigation, the
State Commission is satisfied that the alleged conduct

SB3358 - 5 - LRB103 38772 RPS 68909 b
occurred or is occurring, it may issue a cease and desist
notice as provided in this Act, impose civil penalties as
provided in this Act, notify the local liquor authority,
or file a complaint with the State's Attorney's Office of
the county where the incident occurred or the Attorney
General.
(5.2) Upon receipt of a complaint or upon having
knowledge that any person is shipping alcoholic liquor
into this State from a point outside of this State if the
shipment is in violation of this Act, to conduct an
investigation. If, after conducting an investigation, the
State Commission is satisfied that the alleged conduct
occurred or is occurring, it may issue a cease and desist
notice as provided in this Act, impose civil penalties as
provided in this Act, notify the foreign jurisdiction, or
file a complaint with the State's Attorney's Office of the
county where the incident occurred or the Attorney
General.
(5.3) To receive complaints from licensees, local
officials, law enforcement agencies, organizations, and
persons stating that any licensee has been or is violating
any provision of this Act or the rules and regulations
issued pursuant to this Act. Such complaints shall be in
writing, signed and sworn to by the person making the
complaint, and shall state with specificity the facts in
relation to the alleged violation. If the State Commission

SB3358 - 6 - LRB103 38772 RPS 68909 b
has reasonable grounds to believe that the complaint
substantially alleges a violation of this Act or rules and
regulations adopted pursuant to this Act, it shall conduct
an investigation. If, after conducting an investigation,
the State Commission is satisfied that the alleged
violation did occur, it shall proceed with disciplinary
action against the licensee as provided in this Act.
(5.4) To make arrests and issue notices of civil
violations where necessary for the enforcement of this
Act.
(5.5) To investigate any and all unlicensed activity.
(5.6) To impose civil penalties or fines to any person
who, without holding a valid license, engages in conduct
that requires a license pursuant to this Act, in an amount
not to exceed $20,000 for each offense as determined by
the State Commission. A civil penalty shall be assessed by
the State Commission after a hearing is held in accordance
with the provisions set forth in this Act regarding the
provision of a hearing for the revocation or suspension of
a license.
(6) To hear and determine appeals from orders of a
local commission in accordance with the provisions of this
Act, as hereinafter set forth. Hearings under this
subsection shall be held in Springfield or Chicago, at
whichever location is the more convenient for the majority
of persons who are parties to the hearing.

SB3358 - 7 - LRB103 38772 RPS 68909 b
(7) The State Commission shall establish uniform
systems of accounts to be kept by all retail licensees
having more than 4 employees, and for this purpose the
State Commission may classify all retail licensees having
more than 4 employees and establish a uniform system of
accounts for each class and prescribe the manner in which
such accounts shall be kept. The State Commission may also
prescribe the forms of accounts to be kept by all retail
licensees having more than 4 employees, including, but not
limited to, accounts of earnings and expenses and any
distribution, payment, or other distribution of earnings
or assets, and any other forms, records, and memoranda
which in the judgment of the commission may be necessary
or appropriate to carry out any of the provisions of this
Act, including, but not limited to, such forms, records,
and memoranda as will readily and accurately disclose at
all times the beneficial ownership of such retail licensed
business. The accounts, forms, records, and memoranda
shall be available at all reasonable times for inspection
by authorized representatives of the State Commission or
by any local liquor control commissioner or his or her
authorized representative. The commission may, from time
to time, alter, amend, or repeal, in whole or in part, any
uniform system of accounts, or the form and manner of
keeping accounts.
(8) In the conduct of any hearing authorized to be

SB3358 - 8 - LRB103 38772 RPS 68909 b
held by the State Commission, to appoint, at the
commission's discretion, hearing officers to conduct
hearings involving complex issues or issues that will
require a protracted period of time to resolve, to
examine, or cause to be examined, under oath, any
licensee, and to examine or cause to be examined the books
and records of such licensee; to hear testimony and take
proof material for its information in the discharge of its
duties hereunder; to administer or cause to be
administered oaths; for any such purpose to issue subpoena
or subpoenas to require the attendance of witnesses and
the production of books, which shall be effective in any
part of this State, and to adopt rules to implement its
powers under this paragraph (8).
Any circuit court may, by order duly entered, require
the attendance of witnesses and the production of relevant
books subpoenaed by the State Commission and the court may
compel obedience to its order by proceedings for contempt.
(9) To investigate the administration of laws in
relation to alcoholic liquors in this and other states and
any foreign countries, and to recommend from time to time
to the Governor and through him or her to the legislature
of this State, such amendments to this Act, if any, as it
may think desirable and as will serve to further the
general broad purposes contained in Section 1-2 hereof.
(10) To adopt such rules and regulations consistent

SB3358 - 9 - LRB103 38772 RPS 68909 b
with the provisions of this Act which shall be necessary
for the control, sale, or disposition of alcoholic liquor
damaged as a result of an accident, wreck, flood, fire, or
other similar occurrence.
(11) To develop industry educational programs related
to responsible serving and selling, particularly in the
areas of overserving consumers and illegal underage
purchasing and consumption of alcoholic beverages.
(11.1) To license persons providing education and
training to alcohol beverage sellers and servers for
mandatory and non-mandatory training under the Beverage
Alcohol Sellers and Servers Education and Training
(BASSET) programs and to develop and administer a public
awareness program in Illinois to reduce or eliminate the
illegal purchase and consumption of alcoholic beverage
products by persons under the age of 21. Application for a
license shall be made on forms provided by the State
Commission.
(12) To develop and maintain a repository of license
and regulatory information.
(13) (Blank).
(14) On or before April 30, 2008 and every 2 years
thereafter, the State Commission shall present a written
report to the Governor and the General Assembly that shall
be based on a study of the impact of Public Act 95-634 on
the business of soliciting, selling, and shipping wine

SB3358 - 10 - LRB103 38772 RPS 68909 b
from inside and outside of this State directly to
residents of this State. As part of its report, the State
Commission shall provide all of the following information:
(A) The amount of State excise and sales tax
revenues generated.
(B) The amount of licensing fees received.
(C) The number of cases of wine shipped from
inside and outside of this State directly to residents
of this State.
(D) The number of alcohol compliance operations
conducted.
(E) The number of winery shipper's licenses
issued.
(F) The number of each of the following: reported
violations; cease and desist notices issued by the
Commission; notices of violations issued by the
Commission and to the Department of Revenue; and
notices and complaints of violations to law
enforcement officials, including, without limitation,
the Illinois Attorney General and the U.S. Department
of Treasury's Alcohol and Tobacco Tax and Trade
Bureau.
(15) As a means to reduce the underage consumption of
alcoholic liquors, the State Commission shall conduct
alcohol compliance operations to investigate whether
businesses that are soliciting, selling, and shipping wine

SB3358 - 11 - LRB103 38772 RPS 68909 b
from inside or outside of this State directly to residents
of this State are licensed by this State or are selling or
attempting to sell wine to persons under 21 years of age in
violation of this Act.
(16) The State Commission shall, in addition to
notifying any appropriate law enforcement agency, submit
notices of complaints or violations of Sections 6-29,
6-29.05, and 6-29.1 by persons who do not hold a winery
shipper's license or distillery shipper's license under
this Act to the Illinois Attorney General and to the U.S.
Department of Treasury's Alcohol and Tobacco Tax and Trade
Bureau.
(17)(A) A person licensed to make wine under the laws
of another state who has a winery shipper's license under
this Act and annually produces less than 25,000 gallons of
wine or a person who has a first-class or second-class
wine manufacturer's license, a first-class or second-class
wine-maker's license, or a limited wine manufacturer's
license under this Act and annually produces less than
25,000 gallons of wine may make application to the
Commission for a self-distribution exemption to allow the
sale of not more than 5,000 gallons of the exemption
holder's wine to retail licensees per year and to sell
cider, mead, or both cider and mead to brewers, class 1
brewers, class 2 brewers, and class 3 brewers that,
pursuant to subsection (e) of Section 6-4 of this Act,

SB3358 - 12 - LRB103 38772 RPS 68909 b
sell beer, cider, mead, or any combination thereof to
non-licensees at their breweries.
(B) In the application, which shall be sworn under
penalty of perjury, such person shall state (1) the date
it was established; (2) its volume of production and sales
for each year since its establishment; (3) its efforts to
establish distributor relationships; (4) that a
self-distribution exemption is necessary to facilitate the
marketing of its wine; and (5) that it will comply with the
liquor and revenue laws of the United States, this State,
and any other state where it is licensed.
(C) The State Commission shall approve the application
for a self-distribution exemption if such person: (1) is
in compliance with State revenue and liquor laws; (2) is
not a member of any affiliated group that produces
directly or indirectly more than 25,000 gallons of wine
per annum, 930,000 gallons of beer per annum, or 50,000
gallons of spirits per annum; (3) will not annually
produce for sale more than 25,000 gallons of wine, 930,000
gallons of beer, or 50,000 gallons of spirits; and (4)
will not annually sell more than 5,000 gallons of its wine
to retail licensees.
(D) A self-distribution exemption holder shall
annually certify to the State Commission its production of
wine in the previous 12 months and its anticipated
production and sales for the next 12 months. The State

SB3358 - 13 - LRB103 38772 RPS 68909 b
Commission may fine, suspend, or revoke a
self-distribution exemption after a hearing if it finds
that the exemption holder has made a material
misrepresentation in its application, violated a revenue
or liquor law of Illinois, exceeded production of 25,000
gallons of wine, 930,000 gallons of beer, or 50,000
gallons of spirits in any calendar year, or become part of
an affiliated group producing more than 25,000 gallons of
wine, 930,000 gallons of beer, or 50,000 gallons of
spirits.
(E) Except in hearings for violations of this Act or
Public Act 95-634 or a bona fide investigation by duly
sworn law enforcement officials, the State Commission, or
its agents, the State Commission shall maintain the
production and sales information of a self-distribution
exemption holder as confidential and shall not release
such information to any person.
(F) The State Commission shall issue regulations
governing self-distribution exemptions consistent with
this Section and this Act.
(G) Nothing in this paragraph (17) shall prohibit a
self-distribution exemption holder from entering into or
simultaneously having a distribution agreement with a
licensed Illinois distributor.
(H) It is the intent of this paragraph (17) to promote
and continue orderly markets. The General Assembly finds

SB3358 - 14 - LRB103 38772 RPS 68909 b
that, in order to preserve Illinois' regulatory
distribution system, it is necessary to create an
exception for smaller makers of wine as their wines are
frequently adjusted in varietals, mixes, vintages, and
taste to find and create market niches sometimes too small
for distributor or importing distributor business
strategies. Limited self-distribution rights will afford
and allow smaller makers of wine access to the marketplace
in order to develop a customer base without impairing the
integrity of the 3-tier system.
(18)(A) A class 1 brewer licensee, who must also be
either a licensed brewer or licensed non-resident dealer
and annually manufacture less than 930,000 gallons of
beer, may make application to the State Commission for a
self-distribution exemption to allow the sale of not more
than 232,500 gallons per year of the exemption holder's
beer to retail licensees and to brewers, class 1 brewers,
and class 2 brewers that, pursuant to subsection (e) of
Section 6-4 of this Act, sell beer, cider, mead, or any
combination thereof to non-licensees at their breweries.
(B) In the application, which shall be sworn under
penalty of perjury, the class 1 brewer licensee shall
state (1) the date it was established; (2) its volume of
beer manufactured and sold for each year since its
establishment; (3) its efforts to establish distributor
relationships; (4) that a self-distribution exemption is

SB3358 - 15 - LRB103 38772 RPS 68909 b
necessary to facilitate the marketing of its beer; and (5)
that it will comply with the alcoholic beverage and
revenue laws of the United States, this State, and any
other state where it is licensed.
(C) Any application submitted shall be posted on the
State Commission's website at least 45 days prior to
action by the State Commission. The State Commission shall
approve the application for a self-distribution exemption
if the class 1 brewer licensee: (1) is in compliance with
the State, revenue, and alcoholic beverage laws; (2) is
not a member of any affiliated group that manufactures,
directly or indirectly, more than 930,000 gallons of beer
per annum, 25,000 gallons of wine per annum, or 50,000
gallons of spirits per annum; (3) shall not annually
manufacture for sale more than 930,000 gallons of beer,
25,000 gallons of wine, or 50,000 gallons of spirits; (4)
shall not annually sell more than 232,500 gallons of its
beer to retail licensees and class 3 brewers and to
brewers, class 1 brewers, and class 2 brewers that,
pursuant to subsection (e) of Section 6-4 of this Act,
sell beer, cider, mead, or any combination thereof to
non-licensees at their breweries; and (5) has relinquished
any brew pub license held by the licensee, including any
ownership interest it held in the licensed brew pub.
(D) A self-distribution exemption holder shall
annually certify to the State Commission its manufacture

SB3358 - 16 - LRB103 38772 RPS 68909 b
of beer during the previous 12 months and its anticipated
manufacture and sales of beer for the next 12 months. The
State Commission may fine, suspend, or revoke a
self-distribution exemption after a hearing if it finds
that the exemption holder has made a material
misrepresentation in its application, violated a revenue
or alcoholic beverage law of Illinois, exceeded the
manufacture of 930,000 gallons of beer, 25,000 gallons of
wine, or 50,000 gallons of spirits in any calendar year or
became part of an affiliated group manufacturing more than
930,000 gallons of beer, 25,000 gallons of wine, or 50,000
gallons of spirits.
(E) The State Commission shall issue rules and
regulations governing self-distribution exemptions
consistent with this Act.
(F) Nothing in this paragraph (18) shall prohibit a
self-distribution exemption holder from entering into or
simultaneously having a distribution agreement with a
licensed Illinois importing distributor or a distributor.
If a self-distribution exemption holder enters into a
distribution agreement and has assigned distribution
rights to an importing distributor or distributor, then
the self-distribution exemption holder's distribution
rights in the assigned territories shall cease in a
reasonable time not to exceed 60 days.
(G) It is the intent of this paragraph (18) to promote

SB3358 - 17 - LRB103 38772 RPS 68909 b
and continue orderly markets. The General Assembly finds
that in order to preserve Illinois' regulatory
distribution system, it is necessary to create an
exception for smaller manufacturers in order to afford and
allow such smaller manufacturers of beer access to the
marketplace in order to develop a customer base without
impairing the integrity of the 3-tier system.
(19)(A) A class 1 craft distiller licensee or a
non-resident dealer who manufactures less than 50,000
gallons of distilled spirits per year may make application
to the State Commission for a self-distribution exemption
to allow the sale of not more than 5,000 gallons of the
exemption holder's spirits to retail licensees per year.
(B) In the application, which shall be sworn under
penalty of perjury, the class 1 craft distiller licensee
or non-resident dealer shall state (1) the date it was
established; (2) its volume of spirits manufactured and
sold for each year since its establishment; (3) its
efforts to establish distributor relationships; (4) that a
self-distribution exemption is necessary to facilitate the
marketing of its spirits; and (5) that it will comply with
the alcoholic beverage and revenue laws of the United
States, this State, and any other state where it is
licensed.
(C) Any application submitted shall be posted on the
State Commission's website at least 45 days prior to

SB3358 - 18 - LRB103 38772 RPS 68909 b
action by the State Commission. The State Commission shall
approve the application for a self-distribution exemption
if the applicant: (1) is in compliance with State revenue
and alcoholic beverage laws; (2) is not a member of any
affiliated group that produces more than 50,000 gallons of
spirits per annum, 930,000 gallons of beer per annum, or
25,000 gallons of wine per annum; (3) does not annually
manufacture for sale more than 50,000 gallons of spirits,
930,000 gallons of beer, or 25,000 gallons of wine; and
(4) does not annually sell more than 5,000 gallons of its
spirits to retail licensees.
(D) A self-distribution exemption holder shall
annually certify to the State Commission its manufacture
of spirits during the previous 12 months and its
anticipated manufacture and sales of spirits for the next
12 months. The State Commission may fine, suspend, or
revoke a self-distribution exemption after a hearing if it
finds that the exemption holder has made a material
misrepresentation in its application, violated a revenue
or alcoholic beverage law of Illinois, exceeded the
manufacture of 50,000 gallons of spirits, 930,000 gallons
of beer, or 25,000 gallons of wine in any calendar year, or
has become part of an affiliated group manufacturing more
than 50,000 gallons of spirits, 930,000 gallons of beer,
or 25,000 gallons of wine.
(E) The State Commission shall adopt rules governing

SB3358 - 19 - LRB103 38772 RPS 68909 b
self-distribution exemptions consistent with this Act.
(F) Nothing in this paragraph (19) shall prohibit a
self-distribution exemption holder from entering into or
simultaneously having a distribution agreement with a
licensed Illinois importing distributor or a distributor.
(G) It is the intent of this paragraph (19) to promote
and continue orderly markets. The General Assembly finds
that in order to preserve Illinois' regulatory
distribution system, it is necessary to create an
exception for smaller manufacturers in order to afford and
allow such smaller manufacturers of spirits access to the
marketplace in order to develop a customer base without
impairing the integrity of the 3-tier system.
(20)(A) A class 3 brewer licensee who must manufacture
less than 465,000 gallons of beer in the aggregate and not
more than 155,000 gallons at any single brewery premises
may make application to the State Commission for a
self-distribution exemption to allow the sale of not more
than 6,200 gallons of beer from each in-state or
out-of-state class 3 brewery premises, which shall not
exceed 18,600 gallons annually in the aggregate, that is
manufactured at a wholly owned class 3 brewer's in-state
or out-of-state licensed premises to retail licensees and
class 3 brewers and to brewers, class 1 brewers, class 2
brewers that, pursuant to subsection (e) of Section 6-4,
sell beer, cider, or both beer and cider to non-licensees

SB3358 - 20 - LRB103 38772 RPS 68909 b
at their licensed breweries.
(B) In the application, which shall be sworn under
penalty of perjury, the class 3 brewer licensee shall
state:
(1) the date it was established;
(2) its volume of beer manufactured and sold for
each year since its establishment;
(3) its efforts to establish distributor
relationships;
(4) that a self-distribution exemption is
necessary to facilitate the marketing of its beer; and
(5) that it will comply with the alcoholic
beverage and revenue laws of the United States, this
State, and any other state where it is licensed.
(C) Any application submitted shall be posted on the
State Commission's website at least 45 days before action
by the State Commission. The State Commission shall
approve the application for a self-distribution exemption
if the class 3 brewer licensee: (1) is in compliance with
the State, revenue, and alcoholic beverage laws; (2) is
not a member of any affiliated group that manufacturers,
directly or indirectly, more than 465,000 gallons of beer
per annum; (3) shall not annually manufacture for sale
more than 465,000 gallons of beer or more than 155,000
gallons at any single brewery premises; and (4) shall not
annually sell more than 6,200 gallons of beer from each

SB3358 - 21 - LRB103 38772 RPS 68909 b
in-state or out-of-state class 3 brewery premises, and
shall not exceed 18,600 gallons annually in the aggregate,
to retail licensees and class 3 brewers and to brewers,
class 1 brewers, and class 2 brewers that, pursuant to
subsection (e) of Section 6-4 of this Act, sell beer,
cider, or both beer and cider to non-licensees at their
breweries.
(D) A self-distribution exemption holder shall
annually certify to the State Commission its manufacture
of beer during the previous 12 months and its anticipated
manufacture and sales of beer for the next 12 months. The
State Commission may fine, suspend, or revoke a
self-distribution exemption after a hearing if it finds
that the exemption holder has made a material
misrepresentation in its application, violated a revenue
or alcoholic beverage law of Illinois, exceeded the
manufacture of 465,000 gallons of beer in any calendar
year or became part of an affiliated group manufacturing
more than 465,000 gallons of beer, or exceeded the sale to
retail licensees, brewers, class 1 brewers, class 2
brewers, and class 3 brewers of 6,200 gallons per brewery
location or 18,600 gallons in the aggregate.
(E) The State Commission may adopt rules governing
self-distribution exemptions consistent with this Act.
(F) Nothing in this paragraph shall prohibit a
self-distribution exemption holder from entering into or

SB3358 - 22 - LRB103 38772 RPS 68909 b
simultaneously having a distribution agreement with a
licensed Illinois importing distributor or a distributor.
If a self-distribution exemption holder enters into a
distribution agreement and has assigned distribution
rights to an importing distributor or distributor, then
the self-distribution exemption holder's distribution
rights in the assigned territories shall cease in a
reasonable time not to exceed 60 days.
(G) It is the intent of this paragraph to promote and
continue orderly markets. The General Assembly finds that
in order to preserve Illinois' regulatory distribution
system, it is necessary to create an exception for smaller
manufacturers in order to afford and allow such smaller
manufacturers of beer access to the marketplace in order
to develop a customer base without impairing the integrity
of the 3-tier system.
(b) On or before April 30, 1999, the Commission shall
present a written report to the Governor and the General
Assembly that shall be based on a study of the impact of Public
Act 90-739 on the business of soliciting, selling, and
shipping alcoholic liquor from outside of this State directly
to residents of this State.
As part of its report, the Commission shall provide the
following information:
(i) the amount of State excise and sales tax revenues
generated as a result of Public Act 90-739;

SB3358 - 23 - LRB103 38772 RPS 68909 b
(ii) the amount of licensing fees received as a result
of Public Act 90-739;
(iii) the number of reported violations, the number of
cease and desist notices issued by the Commission, the
number of notices of violations issued to the Department
of Revenue, and the number of notices and complaints of
violations to law enforcement officials.
(Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19;
101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff.
8-20-21; 102-813, eff. 5-13-22.)
(235 ILCS 5/5-1) (from Ch. 43, par. 115)
Sec. 5-1. Licenses issued by the Illinois Liquor Control
Commission shall be of the following classes:
(a) Manufacturer's license - Class 1. Distiller, Class 2.
Rectifier, Class 3. Brewer, Class 4. First Class Wine
Manufacturer, Class 5. Second Class Wine Manufacturer, Class
6. First Class Winemaker, Class 7. Second Class Winemaker,
Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
Class 14. Class 3 Brewer,
(b) Distributor's license,
(c) Importing Distributor's license,
(d) Retailer's license,
(e) Special Event Retailer's license (not-for-profit),

SB3358 - 24 - LRB103 38772 RPS 68909 b
(f) Railroad license,
(g) Boat license,
(h) Non-Beverage User's license,
(i) Wine-maker's premises license,
(j) Airplane license,
(k) Foreign importer's license,
(l) Broker's license,
(m) Non-resident dealer's license,
(n) Brew Pub license,
(o) Auction liquor license,
(p) Caterer retailer license,
(q) Special use permit license,
(r) Winery shipper's license,
(s) Craft distiller tasting permit,
(t) Brewer warehouse permit,
(u) Distilling pub license,
(v) Craft distiller warehouse permit,
(w) Beer showcase permit, .
(x) Distillery shipper's license.
No person, firm, partnership, corporation, or other legal
business entity that is engaged in the manufacturing of wine
may concurrently obtain and hold a wine-maker's license and a
wine manufacturer's license.
(a) A manufacturer's license shall allow the manufacture,
importation in bulk, storage, distribution and sale of
alcoholic liquor to persons without the State, as may be

SB3358 - 25 - LRB103 38772 RPS 68909 b
permitted by law and to licensees in this State as follows:
Class 1. A Distiller may make sales and deliveries of
alcoholic liquor to distillers, rectifiers, importing
distributors, distributors and non-beverage users and to no
other licensees.
Class 2. A Rectifier, who is not a distiller, as defined
herein, may make sales and deliveries of alcoholic liquor to
rectifiers, importing distributors, distributors, retailers
and non-beverage users and to no other licensees.
Class 3. A Brewer may make sales and deliveries of beer to
importing distributors and distributors and may make sales as
authorized under subsection (e) of Section 6-4 of this Act,
including any alcoholic liquor that subsection (e) of Section
6-4 authorizes a brewer to sell in its original package only to
a non-licensee for pick-up by a non-licensee either within the
interior of the brewery premises or at outside of the brewery
premises at a curb-side or parking lot adjacent to the brewery
premises, subject to any local ordinance.
Class 4. A first class wine-manufacturer may make sales
and deliveries of up to 50,000 gallons of wine to
manufacturers, importing distributors and distributors, and to
no other licensees. If a first-class wine-manufacturer
manufactures beer, it shall also obtain and shall only be
eligible for, in addition to any current license, a class 1
brewer license, shall not manufacture more than 930,000
gallons of beer per year, and shall not be a member of or

SB3358 - 26 - LRB103 38772 RPS 68909 b
affiliated with, directly or indirectly, a manufacturer that
produces more than 930,000 gallons of beer per year. If the
first-class wine-manufacturer manufactures spirits, it shall
also obtain and shall only be eligible for, in addition to any
current license, a class 1 craft distiller license, shall not
manufacture more than 50,000 gallons of spirits per year, and
shall not be a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 50,000
gallons of spirits per year. A first-class wine-manufacturer
shall be permitted to sell wine manufactured at the
first-class wine-manufacturer premises to non-licensees.
Class 5. A second class Wine manufacturer may make sales
and deliveries of more than 50,000 gallons of wine to
manufacturers, importing distributors and distributors and to
no other licensees.
Class 6. A first-class wine-maker's license shall allow
the manufacture of up to 50,000 gallons of wine per year, and
the storage and sale of such wine to distributors in the State
and to persons without the State, as may be permitted by law. A
person who, prior to June 1, 2008 (the effective date of Public
Act 95-634), is a holder of a first-class wine-maker's license
and annually produces more than 25,000 gallons of its own wine
and who distributes its wine to licensed retailers shall cease
this practice on or before July 1, 2008 in compliance with
Public Act 95-634. If a first-class wine-maker manufactures
beer, it shall also obtain and shall only be eligible for, in

SB3358 - 27 - LRB103 38772 RPS 68909 b
addition to any current license, a class 1 brewer license,
shall not manufacture more than 930,000 gallons of beer per
year, and shall not be a member of or affiliated with, directly
or indirectly, a manufacturer that produces more than 930,000
gallons of beer per year. If the first-class wine-maker
manufactures spirits, it shall also obtain and shall only be
eligible for, in addition to any current license, a class 1
craft distiller license, shall not manufacture more than
50,000 gallons of spirits per year, and shall not be a member
of or affiliated with, directly or indirectly, a manufacturer
that produces more than 50,000 gallons of spirits per year. A
first-class wine-maker holding a class 1 brewer license or a
class 1 craft distiller license shall not be eligible for a
wine-maker's premises license but shall be permitted to sell
wine manufactured at the first-class wine-maker premises to
non-licensees.
Class 7. A second-class wine-maker's license shall allow
the manufacture of up to 150,000 gallons of wine per year, and
the storage and sale of such wine to distributors in this State
and to persons without the State, as may be permitted by law. A
person who, prior to June 1, 2008 (the effective date of Public
Act 95-634), is a holder of a second-class wine-maker's
license and annually produces more than 25,000 gallons of its
own wine and who distributes its wine to licensed retailers
shall cease this practice on or before July 1, 2008 in
compliance with Public Act 95-634. If a second-class

SB3358 - 28 - LRB103 38772 RPS 68909 b
wine-maker manufactures beer, it shall also obtain and shall
only be eligible for, in addition to any current license, a
class 2 brewer license, shall not manufacture more than
3,720,000 gallons of beer per year, and shall not be a member
of or affiliated with, directly or indirectly, a manufacturer
that produces more than 3,720,000 gallons of beer per year. If
a second-class wine-maker manufactures spirits, it shall also
obtain and shall only be eligible for, in addition to any
current license, a class 2 craft distiller license, shall not
manufacture more than 100,000 gallons of spirits per year, and
shall not be a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 100,000
gallons of spirits per year.
Class 8. A limited wine-manufacturer may make sales and
deliveries not to exceed 40,000 gallons of wine per year to
distributors, and to non-licensees in accordance with the
provisions of this Act.
Class 9. A craft distiller license, which may only be held
by a class 1 craft distiller licensee or class 2 craft
distiller licensee but not held by both a class 1 craft
distiller licensee and a class 2 craft distiller licensee,
shall grant all rights conveyed by either: (i) a class 1 craft
distiller license if the craft distiller holds a class 1 craft
distiller license; or (ii) a class 2 craft distiller licensee
if the craft distiller holds a class 2 craft distiller
license.

SB3358 - 29 - LRB103 38772 RPS 68909 b
Class 10. A class 1 craft distiller license, which may
only be issued to a licensed craft distiller or licensed
non-resident dealer, shall allow the manufacture of up to
50,000 gallons of spirits per year provided that the class 1
craft distiller licensee does not manufacture more than a
combined 50,000 gallons of spirits per year and is not a member
of or affiliated with, directly or indirectly, a manufacturer
that produces more than 50,000 gallons of spirits per year. If
a class 1 craft distiller manufactures beer, it shall also
obtain and shall only be eligible for, in addition to any
current license, a class 1 brewer license, shall not
manufacture more than 930,000 gallons of beer per year, and
shall not be a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 930,000
gallons of beer per year. If a class 1 craft distiller
manufactures wine, it shall also obtain and shall only be
eligible for, in addition to any current license, a
first-class wine-manufacturer license or a first-class
wine-maker's license, shall not manufacture more than 50,000
gallons of wine per year, and shall not be a member of or
affiliated with, directly or indirectly, a manufacturer that
produces more than 50,000 gallons of wine per year. A class 1
craft distiller licensee may make sales and deliveries to
importing distributors and distributors and to retail
licensees in accordance with the conditions set forth in
paragraph (19) of subsection (a) of Section 3-12 of this Act.

SB3358 - 30 - LRB103 38772 RPS 68909 b
However, the aggregate amount of spirits sold to non-licensees
and sold or delivered to retail licensees may not exceed 5,000
gallons per year.
A class 1 craft distiller licensee may sell up to 5,000
gallons of such spirits to non-licensees to the extent
permitted by any exemption approved by the State Commission
pursuant to Section 6-4 of this Act. A class 1 craft distiller
license holder may store such spirits at a non-contiguous
licensed location, but at no time shall a class 1 craft
distiller license holder directly or indirectly produce in the
aggregate more than 50,000 gallons of spirits per year.
A class 1 craft distiller licensee may hold more than one
class 1 craft distiller's license. However, a class 1 craft
distiller that holds more than one class 1 craft distiller
license shall not manufacture, in the aggregate, more than
50,000 gallons of spirits by distillation per year and shall
not sell, in the aggregate, more than 5,000 gallons of such
spirits to non-licensees in accordance with an exemption
approved by the State Commission pursuant to Section 6-4 of
this Act.
Class 11. A class 2 craft distiller license, which may
only be issued to a licensed craft distiller or licensed
non-resident dealer, shall allow the manufacture of up to
100,000 gallons of spirits per year provided that the class 2
craft distiller licensee does not manufacture more than a
combined 100,000 gallons of spirits per year and is not a

SB3358 - 31 - LRB103 38772 RPS 68909 b
member of or affiliated with, directly or indirectly, a
manufacturer that produces more than 100,000 gallons of
spirits per year. If a class 2 craft distiller manufactures
beer, it shall also obtain and shall only be eligible for, in
addition to any current license, a class 2 brewer license,
shall not manufacture more than 3,720,000 gallons of beer per
year, and shall not be a member of or affiliated with, directly
or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year. If a class 2 craft
distiller manufactures wine, it shall also obtain and shall
only be eligible for, in addition to any current license, a
second-class wine-maker's license, shall not manufacture more
than 150,000 gallons of wine per year, and shall not be a
member of or affiliated with, directly or indirectly, a
manufacturer that produces more than 150,000 gallons of wine
per year. A class 2 craft distiller licensee may make sales and
deliveries to importing distributors and distributors, but
shall not make sales or deliveries to any other licensee. If
the State Commission provides prior approval, a class 2 craft
distiller licensee may annually transfer up to 100,000 gallons
of spirits manufactured by that class 2 craft distiller
licensee to the premises of a licensed class 2 craft distiller
wholly owned and operated by the same licensee. A class 2 craft
distiller may transfer spirits to a distilling pub wholly
owned and operated by the class 2 craft distiller subject to
the following limitations and restrictions: (i) the transfer

SB3358 - 32 - LRB103 38772 RPS 68909 b
shall not annually exceed more than 5,000 gallons; (ii) the
annual amount transferred shall reduce the distilling pub's
annual permitted production limit; (iii) all spirits
transferred shall be subject to Article VIII of this Act; (iv)
a written record shall be maintained by the distiller and
distilling pub specifying the amount, date of delivery, and
receipt of the product by the distilling pub; and (v) the
distilling pub shall be located no farther than 80 miles from
the class 2 craft distiller's licensed location.
A class 2 craft distiller shall, prior to transferring
spirits to a distilling pub wholly owned by the class 2 craft
distiller, furnish a written notice to the State Commission of
intent to transfer spirits setting forth the name and address
of the distilling pub and shall annually submit to the State
Commission a verified report identifying the total gallons of
spirits transferred to the distilling pub wholly owned by the
class 2 craft distiller.
A class 2 craft distiller license holder may store such
spirits at a non-contiguous licensed location, but at no time
shall a class 2 craft distiller license holder directly or
indirectly produce in the aggregate more than 100,000 gallons
of spirits per year.
Class 12. A class 1 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 930,000 gallons of beer
per year provided that the class 1 brewer licensee does not

SB3358 - 33 - LRB103 38772 RPS 68909 b
manufacture more than a combined 930,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 930,000
gallons of beer per year. If a class 1 brewer manufactures
spirits, it shall also obtain and shall only be eligible for,
in addition to any current license, a class 1 craft distiller
license, shall not manufacture more than 50,000 gallons of
spirits per year, and shall not be a member of or affiliated
with, directly or indirectly, a manufacturer that produces
more than 50,000 gallons of spirits per year. If a class 1
craft brewer manufactures wine, it shall also obtain and shall
only be eligible for, in addition to any current license, a
first-class wine-manufacturer license or a first-class
wine-maker's license, shall not manufacture more than 50,000
gallons of wine per year, and shall not be a member of or
affiliated with, directly or indirectly, a manufacturer that
produces more than 50,000 gallons of wine per year. A class 1
brewer licensee may make sales and deliveries to importing
distributors and distributors and to retail licensees in
accordance with the conditions set forth in paragraph (18) of
subsection (a) of Section 3-12 of this Act. If the State
Commission provides prior approval, a class 1 brewer may
annually transfer up to 930,000 gallons of beer manufactured
by that class 1 brewer to the premises of a licensed class 1
brewer wholly owned and operated by the same licensee.
Class 13. A class 2 brewer license, which may only be

SB3358 - 34 - LRB103 38772 RPS 68909 b
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 3,720,000 gallons of beer
per year provided that the class 2 brewer licensee does not
manufacture more than a combined 3,720,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 3,720,000
gallons of beer per year. If a class 2 brewer manufactures
spirits, it shall also obtain and shall only be eligible for,
in addition to any current license, a class 2 craft distiller
license, shall not manufacture more than 100,000 gallons of
spirits per year, and shall not be a member of or affiliated
with, directly or indirectly, a manufacturer that produces
more than 100,000 gallons of spirits per year. If a class 2
craft distiller manufactures wine, it shall also obtain and
shall only be eligible for, in addition to any current
license, a second-class wine-maker's license, shall not
manufacture more than 150,000 gallons of wine per year, and
shall not be a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 150,000
gallons of wine a year. A class 2 brewer licensee may make
sales and deliveries to importing distributors and
distributors, but shall not make sales or deliveries to any
other licensee. If the State Commission provides prior
approval, a class 2 brewer licensee may annually transfer up
to 3,720,000 gallons of beer manufactured by that class 2
brewer licensee to the premises of a licensed class 2 brewer

SB3358 - 35 - LRB103 38772 RPS 68909 b
wholly owned and operated by the same licensee.
A class 2 brewer may transfer beer to a brew pub wholly
owned and operated by the class 2 brewer subject to the
following limitations and restrictions: (i) the transfer shall
not annually exceed more than 31,000 gallons; (ii) the annual
amount transferred shall reduce the brew pub's annual
permitted production limit; (iii) all beer transferred shall
be subject to Article VIII of this Act; (iv) a written record
shall be maintained by the brewer and brew pub specifying the
amount, date of delivery, and receipt of the product by the
brew pub; and (v) the brew pub shall be located no farther than
80 miles from the class 2 brewer's licensed location.
A class 2 brewer shall, prior to transferring beer to a
brew pub wholly owned by the class 2 brewer, furnish a written
notice to the State Commission of intent to transfer beer
setting forth the name and address of the brew pub and shall
annually submit to the State Commission a verified report
identifying the total gallons of beer transferred to the brew
pub wholly owned by the class 2 brewer.
Class 14. A class 3 brewer license, which may be issued to
a brewer or a non-resident dealer, shall allow the manufacture
of no more than 465,000 gallons of beer per year and no more
than 155,000 gallons at a single brewery premises, and shall
allow the sale of no more than 6,200 gallons of beer from each
in-state or out-of-state class 3 brewery premises, or 18,600
gallons in the aggregate, to retail licensees, class 1

SB3358 - 36 - LRB103 38772 RPS 68909 b
brewers, class 2 brewers, and class 3 brewers as long as the
class 3 brewer licensee does not manufacture more than a
combined 465,000 gallons of beer per year and is not a member
of or affiliated with, directly or indirectly, a manufacturer
that produces more than 465,000 gallons of beer per year to
make sales to importing distributors, distributors, retail
licensees, brewers, class 1 brewers, class 2 brewers, and
class 3 brewers in accordance with the conditions set forth in
paragraph (20) of subsection (a) of Section 3-12. If the State
Commission provides prior approval, a class 3 brewer may
annually transfer up to 155,000 gallons of beer manufactured
by that class 3 brewer to the premises of a licensed class 3
brewer wholly owned and operated by the same licensee. A class
3 brewer shall manufacture beer at the brewer's class 3
designated licensed premises, and may sell beer as otherwise
provided in this Act.
(a-1) A manufacturer which is licensed in this State to
make sales or deliveries of alcoholic liquor to licensed
distributors or importing distributors and which enlists
agents, representatives, or individuals acting on its behalf
who contact licensed retailers on a regular and continual
basis in this State must register those agents,
representatives, or persons acting on its behalf with the
State Commission.
Registration of agents, representatives, or persons acting
on behalf of a manufacturer is fulfilled by submitting a form

SB3358 - 37 - LRB103 38772 RPS 68909 b
to the Commission. The form shall be developed by the
Commission and shall include the name and address of the
applicant, the name and address of the manufacturer he or she
represents, the territory or areas assigned to sell to or
discuss pricing terms of alcoholic liquor, and any other
questions deemed appropriate and necessary. All statements in
the forms required to be made by law or by rule shall be deemed
material, and any person who knowingly misstates any material
fact under oath in an application is guilty of a Class B
misdemeanor. Fraud, misrepresentation, false statements,
misleading statements, evasions, or suppression of material
facts in the securing of a registration are grounds for
suspension or revocation of the registration. The State
Commission shall post a list of registered agents on the
Commission's website.
(b) A distributor's license shall allow (i) the wholesale
purchase and storage of alcoholic liquors and sale of
alcoholic liquors to licensees in this State and to persons
without the State, as may be permitted by law; (ii) the sale of
beer, cider, mead, or any combination thereof to brewers,
class 1 brewers, and class 2 brewers that, pursuant to
subsection (e) of Section 6-4 of this Act, sell beer, cider,
mead, or any combination thereof to non-licensees at their
breweries; (iii) the sale of vermouth to class 1 craft
distillers and class 2 craft distillers that, pursuant to
subsection (e) of Section 6-4 of this Act, sell spirits,

SB3358 - 38 - LRB103 38772 RPS 68909 b
vermouth, or both spirits and vermouth to non-licensees at
their distilleries; or (iv) as otherwise provided in this Act.
No person licensed as a distributor shall be granted a
non-resident dealer's license.
(c) An importing distributor's license may be issued to
and held by those only who are duly licensed distributors,
upon the filing of an application by a duly licensed
distributor, with the Commission and the Commission shall,
without the payment of any fee, immediately issue such
importing distributor's license to the applicant, which shall
allow the importation of alcoholic liquor by the licensee into
this State from any point in the United States outside this
State, and the purchase of alcoholic liquor in barrels, casks
or other bulk containers and the bottling of such alcoholic
liquors before resale thereof, but all bottles or containers
so filled shall be sealed, labeled, stamped and otherwise made
to comply with all provisions, rules and regulations governing
manufacturers in the preparation and bottling of alcoholic
liquors. The importing distributor's license shall permit such
licensee to purchase alcoholic liquor from Illinois licensed
non-resident dealers and foreign importers only. No person
licensed as an importing distributor shall be granted a
non-resident dealer's license.
(d) A retailer's license shall allow the licensee to sell
and offer for sale at retail, only in the premises specified in
the license, alcoholic liquor for use or consumption, but not

SB3358 - 39 - LRB103 38772 RPS 68909 b
for resale in any form. Except as provided in Section 6-16,
6-29, or 6-29.1, nothing in this Act shall deny, limit,
remove, or restrict the ability of a holder of a retailer's
license to transfer or ship alcoholic liquor to the purchaser
for use or consumption subject to any applicable local law or
ordinance. For the purposes of this Section, "shipping" means
the movement of alcoholic liquor from a licensed retailer to a
consumer via a common carrier. Except as provided in Section
6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,
remove, or restrict the ability of a holder of a retailer's
license to deliver alcoholic liquor to the purchaser for use
or consumption. The delivery shall be made only within 12
hours from the time the alcoholic liquor leaves the licensed
premises of the retailer for delivery. For the purposes of
this Section, "delivery" means the movement of alcoholic
liquor purchased from a licensed retailer to a consumer
through the following methods:
(1) delivery within licensed retailer's parking lot,
including curbside, for pickup by the consumer;
(2) delivery by an owner, officer, director,
shareholder, or employee of the licensed retailer; or
(3) delivery by a third-party contractor, independent
contractor, or agent with whom the licensed retailer has
contracted to make deliveries of alcoholic liquors.
Under subsection (1), (2), or (3), delivery shall not
include the use of common carriers.

SB3358 - 40 - LRB103 38772 RPS 68909 b
Any retail license issued to a manufacturer shall only
permit the manufacturer to sell beer at retail on the premises
actually occupied by the manufacturer. For the purpose of
further describing the type of business conducted at a retail
licensed premises, a retailer's licensee may be designated by
the State Commission as (i) an on premise consumption
retailer, (ii) an off premise sale retailer, or (iii) a
combined on premise consumption and off premise sale retailer.
Except for a municipality with a population of more than
1,000,000 inhabitants, a home rule unit may not regulate the
delivery of alcoholic liquor inconsistent with this
subsection. This paragraph is a limitation under subsection
(i) of Section 6 of Article VII of the Illinois Constitution on
the concurrent exercise by home rule units of powers and
functions exercised by the State. A non-home rule municipality
may not regulate the delivery of alcoholic liquor inconsistent
with this subsection.
Notwithstanding any other provision of this subsection
(d), a retail licensee may sell alcoholic liquors to a special
event retailer licensee for resale to the extent permitted
under subsection (e).
(e) A special event retailer's license (not-for-profit)
shall permit the licensee to purchase alcoholic liquors from
an Illinois licensed distributor (unless the licensee
purchases less than $500 of alcoholic liquors for the special
event, in which case the licensee may purchase the alcoholic

SB3358 - 41 - LRB103 38772 RPS 68909 b
liquors from a licensed retailer) and shall allow the licensee
to sell and offer for sale, at retail, alcoholic liquors for
use or consumption, but not for resale in any form and only at
the location and on the specific dates designated for the
special event in the license. An applicant for a special event
retailer license must (i) furnish with the application: (A) a
resale number issued under Section 2c of the Retailers'
Occupation Tax Act or evidence that the applicant is
registered under Section 2a of the Retailers' Occupation Tax
Act, (B) a current, valid exemption identification number
issued under Section 1g of the Retailers' Occupation Tax Act,
and a certification to the Commission that the purchase of
alcoholic liquors will be a tax-exempt purchase, or (C) a
statement that the applicant is not registered under Section
2a of the Retailers' Occupation Tax Act, does not hold a resale
number under Section 2c of the Retailers' Occupation Tax Act,
and does not hold an exemption number under Section 1g of the
Retailers' Occupation Tax Act, in which event the Commission
shall set forth on the special event retailer's license a
statement to that effect; (ii) submit with the application
proof satisfactory to the State Commission that the applicant
will provide dram shop liability insurance in the maximum
limits; and (iii) show proof satisfactory to the State
Commission that the applicant has obtained local authority
approval.
Nothing in this Act prohibits an Illinois licensed

SB3358 - 42 - LRB103 38772 RPS 68909 b
distributor from offering credit or a refund for unused,
salable alcoholic liquors to a holder of a special event
retailer's license or the special event retailer's licensee
from accepting the credit or refund of alcoholic liquors at
the conclusion of the event specified in the license.
(f) A railroad license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic
liquors directly from manufacturers, foreign importers,
distributors and importing distributors from within or outside
this State; and to store such alcoholic liquors in this State;
provided that the above powers may be exercised only in
connection with the importation, purchase or storage of
alcoholic liquors to be sold or dispensed on a club, buffet,
lounge or dining car operated on an electric, gas or steam
railway in this State; and provided further, that railroad
licensees exercising the above powers shall be subject to all
provisions of Article VIII of this Act as applied to importing
distributors. A railroad license shall also permit the
licensee to sell or dispense alcoholic liquors on any club,
buffet, lounge or dining car operated on an electric, gas or
steam railway regularly operated by a common carrier in this
State, but shall not permit the sale for resale of any
alcoholic liquors to any licensee within this State. A license
shall be obtained for each car in which such sales are made.

SB3358 - 43 - LRB103 38772 RPS 68909 b
(g) A boat license shall allow the sale of alcoholic
liquor in individual drinks, on any passenger boat regularly
operated as a common carrier on navigable waters in this State
or on any riverboat operated under the Illinois Gambling Act,
which boat or riverboat maintains a public dining room or
restaurant thereon.
(h) A non-beverage user's license shall allow the licensee
to purchase alcoholic liquor from a licensed manufacturer or
importing distributor, without the imposition of any tax upon
the business of such licensed manufacturer or importing
distributor as to such alcoholic liquor to be used by such
licensee solely for the non-beverage purposes set forth in
subsection (a) of Section 8-1 of this Act, and such licenses
shall be divided and classified and shall permit the purchase,
possession and use of limited and stated quantities of
alcoholic liquor as follows:
Class 1, not to exceed ......................... 500 gallons
Class 2, not to exceed ....................... 1,000 gallons
Class 3, not to exceed ....................... 5,000 gallons
Class 4, not to exceed ...................... 10,000 gallons
Class 5, not to exceed ....................... 50,000 gallons
(i) A wine-maker's premises license shall allow a licensee
that concurrently holds a first-class wine-maker's license to
sell and offer for sale at retail in the premises specified in
such license not more than 50,000 gallons of the first-class
wine-maker's wine that is made at the first-class wine-maker's

SB3358 - 44 - LRB103 38772 RPS 68909 b
licensed premises per year for use or consumption, but not for
resale in any form. A wine-maker's premises license shall
allow a licensee who concurrently holds a second-class
wine-maker's license to sell and offer for sale at retail in
the premises specified in such license up to 100,000 gallons
of the second-class wine-maker's wine that is made at the
second-class wine-maker's licensed premises per year for use
or consumption but not for resale in any form. A first-class
wine-maker that concurrently holds a class 1 brewer license or
a class 1 craft distiller license shall not be eligible to hold
a wine-maker's premises license. A wine-maker's premises
license shall allow a licensee that concurrently holds a
first-class wine-maker's license or a second-class
wine-maker's license to sell and offer for sale at retail at
the premises specified in the wine-maker's premises license,
for use or consumption but not for resale in any form, any
beer, wine, and spirits purchased from a licensed distributor.
Upon approval from the State Commission, a wine-maker's
premises license shall allow the licensee to sell and offer
for sale at (i) the wine-maker's licensed premises and (ii) at
up to 2 additional locations for use and consumption and not
for resale. Each location shall require additional licensing
per location as specified in Section 5-3 of this Act. A
wine-maker's premises licensee shall secure liquor liability
insurance coverage in an amount at least equal to the maximum
liability amounts set forth in subsection (a) of Section 6-21

SB3358 - 45 - LRB103 38772 RPS 68909 b
of this Act.
(j) An airplane license shall permit the licensee to
import alcoholic liquors into this State from any point in the
United States outside this State and to store such alcoholic
liquors in this State; to make wholesale purchases of
alcoholic liquors directly from manufacturers, foreign
importers, distributors and importing distributors from within
or outside this State; and to store such alcoholic liquors in
this State; provided that the above powers may be exercised
only in connection with the importation, purchase or storage
of alcoholic liquors to be sold or dispensed on an airplane;
and provided further, that airplane licensees exercising the
above powers shall be subject to all provisions of Article
VIII of this Act as applied to importing distributors. An
airplane licensee shall also permit the sale or dispensing of
alcoholic liquors on any passenger airplane regularly operated
by a common carrier in this State, but shall not permit the
sale for resale of any alcoholic liquors to any licensee
within this State. A single airplane license shall be required
of an airline company if liquor service is provided on board
aircraft in this State. The annual fee for such license shall
be as determined in Section 5-3.
(k) A foreign importer's license shall permit such
licensee to purchase alcoholic liquor from Illinois licensed
non-resident dealers only, and to import alcoholic liquor
other than in bulk from any point outside the United States and

SB3358 - 46 - LRB103 38772 RPS 68909 b
to sell such alcoholic liquor to Illinois licensed importing
distributors and to no one else in Illinois; provided that (i)
the foreign importer registers with the State Commission every
brand of alcoholic liquor that it proposes to sell to Illinois
licensees during the license period, (ii) the foreign importer
complies with all of the provisions of Section 6-9 of this Act
with respect to registration of such Illinois licensees as may
be granted the right to sell such brands at wholesale, and
(iii) the foreign importer complies with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers.
(l) (i) A broker's license shall be required of all
persons who solicit orders for, offer to sell or offer to
supply alcoholic liquor to retailers in the State of Illinois,
or who offer to retailers to ship or cause to be shipped or to
make contact with distillers, craft distillers, rectifiers,
brewers or manufacturers or any other party within or without
the State of Illinois in order that alcoholic liquors be
shipped to a distributor, importing distributor or foreign
importer, whether such solicitation or offer is consummated
within or without the State of Illinois.
No holder of a retailer's license issued by the Illinois
Liquor Control Commission shall purchase or receive any
alcoholic liquor, the order for which was solicited or offered
for sale to such retailer by a broker unless the broker is the
holder of a valid broker's license.

SB3358 - 47 - LRB103 38772 RPS 68909 b
The broker shall, upon the acceptance by a retailer of the
broker's solicitation of an order or offer to sell or supply or
deliver or have delivered alcoholic liquors, promptly forward
to the Illinois Liquor Control Commission a notification of
said transaction in such form as the Commission may by
regulations prescribe.
(ii) A broker's license shall be required of a person
within this State, other than a retail licensee, who, for a fee
or commission, promotes, solicits, or accepts orders for
alcoholic liquor, for use or consumption and not for resale,
to be shipped from this State and delivered to residents
outside of this State by an express company, common carrier,
or contract carrier. This Section does not apply to any person
who promotes, solicits, or accepts orders for wine as
specifically authorized in Section 6-29 of this Act.
A broker's license under this subsection (l) shall not
entitle the holder to buy or sell any alcoholic liquors for his
own account or to take or deliver title to such alcoholic
liquors.
This subsection (l) shall not apply to distributors,
employees of distributors, or employees of a manufacturer who
has registered the trademark, brand or name of the alcoholic
liquor pursuant to Section 6-9 of this Act, and who regularly
sells such alcoholic liquor in the State of Illinois only to
its registrants thereunder.
Any agent, representative, or person subject to

SB3358 - 48 - LRB103 38772 RPS 68909 b
registration pursuant to subsection (a-1) of this Section
shall not be eligible to receive a broker's license.
(m) A non-resident dealer's license shall permit such
licensee to ship into and warehouse alcoholic liquor into this
State from any point outside of this State, and to sell such
alcoholic liquor to Illinois licensed foreign importers and
importing distributors and to no one else in this State;
provided that (i) said non-resident dealer shall register with
the Illinois Liquor Control Commission each and every brand of
alcoholic liquor which it proposes to sell to Illinois
licensees during the license period, (ii) it shall comply with
all of the provisions of Section 6-9 hereof with respect to
registration of such Illinois licensees as may be granted the
right to sell such brands at wholesale by duly filing such
registration statement, thereby authorizing the non-resident
dealer to proceed to sell such brands at wholesale, and (iii)
the non-resident dealer shall comply with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers. No person licensed as a
non-resident dealer shall be granted a distributor's or
importing distributor's license.
(n) A brew pub license shall allow the licensee to only (i)
manufacture up to 155,000 gallons of beer per year only on the
premises specified in the license, (ii) make sales of the beer
manufactured on the premises or, with the approval of the
Commission, beer manufactured on another brew pub licensed

SB3358 - 49 - LRB103 38772 RPS 68909 b
premises that is wholly owned and operated by the same
licensee to importing distributors, distributors, and to
non-licensees for use and consumption, (iii) store the beer
upon the premises, (iv) sell and offer for sale at retail from
the licensed premises for off-premises consumption no more
than 155,000 gallons per year so long as such sales are only
made in-person, (v) sell and offer for sale at retail for use
and consumption on the premises specified in the license any
form of alcoholic liquor purchased from a licensed distributor
or importing distributor, (vi) with the prior approval of the
Commission, annually transfer no more than 155,000 gallons of
beer manufactured on the premises to a licensed brew pub
wholly owned and operated by the same licensee, and (vii)
notwithstanding item (i) of this subsection, brew pubs wholly
owned and operated by the same licensee may combine each
location's production limit of 155,000 gallons of beer per
year and allocate the aggregate total between the wholly
owned, operated, and licensed locations.
A brew pub licensee shall not under any circumstance sell
or offer for sale beer manufactured by the brew pub licensee to
retail licensees.
A person who holds a class 2 brewer license may
simultaneously hold a brew pub license if the class 2 brewer
(i) does not, under any circumstance, sell or offer for sale
beer manufactured by the class 2 brewer to retail licensees;
(ii) does not hold more than 3 brew pub licenses in this State;

SB3358 - 50 - LRB103 38772 RPS 68909 b
(iii) does not manufacture more than a combined 3,720,000
gallons of beer per year, including the beer manufactured at
the brew pub; and (iv) is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or any other alcoholic
liquor.
Notwithstanding any other provision of this Act, a
licensed brewer, class 2 brewer, or non-resident dealer who
before July 1, 2015 manufactured less than 3,720,000 gallons
of beer per year and held a brew pub license on or before July
1, 2015 may (i) continue to qualify for and hold that brew pub
license for the licensed premises and (ii) manufacture more
than 3,720,000 gallons of beer per year and continue to
qualify for and hold that brew pub license if that brewer,
class 2 brewer, or non-resident dealer does not simultaneously
hold a class 1 brewer license and is not a member of or
affiliated with, directly or indirectly, a manufacturer that
produces more than 3,720,000 gallons of beer per year or that
produces any other alcoholic liquor.
A brew pub licensee may apply for a class 3 brewer license
and, upon meeting all applicable qualifications of this Act
and relinquishing all commonly owned brew pub or retail
licenses, shall be issued a class 3 brewer license. Nothing in
this Act shall prohibit the issuance of a class 3 brewer
license if the applicant:
(1) has a valid retail license on or before May 1,

SB3358 - 51 - LRB103 38772 RPS 68909 b
2021;
(2) has an ownership interest in at least two brew
pubs licenses on or before May 1, 2021;
(3) the brew pub licensee applies for a class 3 brewer
license on or before October 1, 2022 and relinquishes all
commonly owned brew pub licenses; and
(4) relinquishes all commonly owned retail licenses on
or before December 31, 2022.
If a brew pub licensee is issued a class 3 brewer license,
the class 3 brewer license shall expire on the same date as the
existing brew pub license and the State Commission shall not
require a class 3 brewer licensee to obtain a brewer license,
or in the alternative to pay a fee for a brewer license, until
the date the brew pub license of the applicant would have
expired.
(o) A caterer retailer license shall allow the holder to
serve alcoholic liquors as an incidental part of a food
service that serves prepared meals which excludes the serving
of snacks as the primary meal, either on or off-site whether
licensed or unlicensed. A caterer retailer license shall allow
the holder, a distributor, or an importing distributor to
transfer any inventory to and from the holder's retail
premises and shall allow the holder to purchase alcoholic
liquor from a distributor or importing distributor to be
delivered directly to an off-site event.
Nothing in this Act prohibits a distributor or importing

SB3358 - 52 - LRB103 38772 RPS 68909 b
distributor from offering credit or a refund for unused,
salable beer to a holder of a caterer retailer license or a
caterer retailer licensee from accepting a credit or refund
for unused, salable beer, in the event an act of God is the
sole reason an off-site event is cancelled and if: (i) the
holder of a caterer retailer license has not transferred
alcoholic liquor from its caterer retailer premises to an
off-site location; (ii) the distributor or importing
distributor offers the credit or refund for the unused,
salable beer that it delivered to the off-site premises and
not for any unused, salable beer that the distributor or
importing distributor delivered to the caterer retailer's
premises; and (iii) the unused, salable beer would likely
spoil if transferred to the caterer retailer's premises. A
caterer retailer license shall allow the holder to transfer
any inventory from any off-site location to its caterer
retailer premises at the conclusion of an off-site event or
engage a distributor or importing distributor to transfer any
inventory from any off-site location to its caterer retailer
premises at the conclusion of an off-site event, provided that
the distributor or importing distributor issues bona fide
charges to the caterer retailer licensee for fuel, labor, and
delivery and the distributor or importing distributor collects
payment from the caterer retailer licensee prior to the
distributor or importing distributor transferring inventory to
the caterer retailer premises.

SB3358 - 53 - LRB103 38772 RPS 68909 b
For purposes of this subsection (o), an "act of God" means
an unforeseeable event, such as a rain or snow storm, hail, a
flood, or a similar event, that is the sole cause of the
cancellation of an off-site, outdoor event.
(p) An auction liquor license shall allow the licensee to
sell and offer for sale at auction wine and spirits for use or
consumption, or for resale by an Illinois liquor licensee in
accordance with provisions of this Act. An auction liquor
license will be issued to a person and it will permit the
auction liquor licensee to hold the auction anywhere in the
State. An auction liquor license must be obtained for each
auction at least 14 days in advance of the auction date.
(q) A special use permit license shall allow an Illinois
licensed retailer to transfer a portion of its alcoholic
liquor inventory from its retail licensed premises to the
premises specified in the license hereby created; to purchase
alcoholic liquor from a distributor or importing distributor
to be delivered directly to the location specified in the
license hereby created; and to sell or offer for sale at
retail, only in the premises specified in the license hereby
created, the transferred or delivered alcoholic liquor for use
or consumption, but not for resale in any form. A special use
permit license may be granted for the following time periods:
one day or less; 2 or more days to a maximum of 15 days per
location in any 12-month period. An applicant for the special
use permit license must also submit with the application proof

SB3358 - 54 - LRB103 38772 RPS 68909 b
satisfactory to the State Commission that the applicant will
provide dram shop liability insurance to the maximum limits
and have local authority approval.
A special use permit license shall allow the holder to
transfer any inventory from the holder's special use premises
to its retail premises at the conclusion of the special use
event or engage a distributor or importing distributor to
transfer any inventory from the holder's special use premises
to its retail premises at the conclusion of an off-site event,
provided that the distributor or importing distributor issues
bona fide charges to the special use permit licensee for fuel,
labor, and delivery and the distributor or importing
distributor collects payment from the retail licensee prior to
the distributor or importing distributor transferring
inventory to the retail premises.
Nothing in this Act prohibits a distributor or importing
distributor from offering credit or a refund for unused,
salable beer to a special use permit licensee or a special use
permit licensee from accepting a credit or refund for unused,
salable beer at the conclusion of the event specified in the
license if: (i) the holder of the special use permit license
has not transferred alcoholic liquor from its retail licensed
premises to the premises specified in the special use permit
license; (ii) the distributor or importing distributor offers
the credit or refund for the unused, salable beer that it
delivered to the premises specified in the special use permit

SB3358 - 55 - LRB103 38772 RPS 68909 b
license and not for any unused, salable beer that the
distributor or importing distributor delivered to the
retailer's premises; and (iii) the unused, salable beer would
likely spoil if transferred to the retailer premises.
(r) A winery shipper's license shall allow a person with a
first-class or second-class wine manufacturer's license, a
first-class or second-class wine-maker's license, or a limited
wine manufacturer's license or who is licensed to make wine
under the laws of another state to ship wine made by that
licensee directly to a resident of this State who is 21 years
of age or older for that resident's personal use and not for
resale. Prior to receiving a winery shipper's license, an
applicant for the license must provide the Commission with a
true copy of its current license in any state in which it is
licensed as a manufacturer of wine. An applicant for a winery
shipper's license must also complete an application form that
provides any other information the Commission deems necessary.
The application form shall include all addresses from which
the applicant for a winery shipper's license intends to ship
wine, including the name and address of any third party,
except for a common carrier, authorized to ship wine on behalf
of the manufacturer. The application form shall include an
acknowledgement consenting to the jurisdiction of the
Commission, the Illinois Department of Revenue, and the courts
of this State concerning the enforcement of this Act and any
related laws, rules, and regulations, including authorizing

SB3358 - 56 - LRB103 38772 RPS 68909 b
the Department of Revenue and the Commission to conduct audits
for the purpose of ensuring compliance with Public Act 95-634,
and an acknowledgement that the wine manufacturer is in
compliance with Section 6-2 of this Act. Any third party,
except for a common carrier, authorized to ship wine on behalf
of a first-class or second-class wine manufacturer's licensee,
a first-class or second-class wine-maker's licensee, a limited
wine manufacturer's licensee, or a person who is licensed to
make wine under the laws of another state shall also be
disclosed by the winery shipper's licensee, and a copy of the
written appointment of the third-party wine provider, except
for a common carrier, to the wine manufacturer shall be filed
with the State Commission as a supplement to the winery
shipper's license application or any renewal thereof. The
winery shipper's license holder shall affirm under penalty of
perjury, as part of the winery shipper's license application
or renewal, that he or she only ships wine, either directly or
indirectly through a third-party provider, from the licensee's
own production.
Except for a common carrier, a third-party provider
shipping wine on behalf of a winery shipper's license holder
is the agent of the winery shipper's license holder and, as
such, a winery shipper's license holder is responsible for the
acts and omissions of the third-party provider acting on
behalf of the license holder. A third-party provider, except
for a common carrier, that engages in shipping wine into

SB3358 - 57 - LRB103 38772 RPS 68909 b
Illinois on behalf of a winery shipper's license holder shall
consent to the jurisdiction of the State Commission and the
State. Any third-party, except for a common carrier, holding
such an appointment shall, by February 1 of each calendar year
and upon request by the State Commission or the Department of
Revenue, file with the State Commission a statement detailing
each shipment made to an Illinois resident. The statement
shall include the name and address of the third-party provider
filing the statement, the time period covered by the
statement, and the following information:
(1) the name, address, and license number of the
winery shipper on whose behalf the shipment was made;
(2) the quantity of the products delivered; and
(3) the date and address of the shipment.
If the Department of Revenue or the State Commission requests
a statement under this paragraph, the third-party provider
must provide that statement no later than 30 days after the
request is made. Any books, records, supporting papers, and
documents containing information and data relating to a
statement under this paragraph shall be kept and preserved for
a period of 3 years, unless their destruction sooner is
authorized, in writing, by the Director of Revenue, and shall
be open and available to inspection by the Director of Revenue
or the State Commission or any duly authorized officer, agent,
or employee of the State Commission or the Department of
Revenue, at all times during business hours of the day. Any

SB3358 - 58 - LRB103 38772 RPS 68909 b
person who violates any provision of this paragraph or any
rule of the State Commission for the administration and
enforcement of the provisions of this paragraph is guilty of a
Class C misdemeanor. In case of a continuing violation, each
day's continuance thereof shall be a separate and distinct
offense.
The State Commission shall adopt rules as soon as
practicable to implement the requirements of Public Act 99-904
and shall adopt rules prohibiting any such third-party
appointment of a third-party provider, except for a common
carrier, that has been deemed by the State Commission to have
violated the provisions of this Act with regard to any winery
shipper licensee.
A winery shipper licensee must pay to the Department of
Revenue the State liquor gallonage tax under Section 8-1 for
all wine that is sold by the licensee and shipped to a person
in this State. For the purposes of Section 8-1, a winery
shipper licensee shall be taxed in the same manner as a
manufacturer of wine. A licensee who is not otherwise required
to register under the Retailers' Occupation Tax Act must
register under the Use Tax Act to collect and remit use tax to
the Department of Revenue for all gallons of wine that are sold
by the licensee and shipped to persons in this State. If a
licensee fails to remit the tax imposed under this Act in
accordance with the provisions of Article VIII of this Act,
the winery shipper's license shall be revoked in accordance

SB3358 - 59 - LRB103 38772 RPS 68909 b
with the provisions of Article VII of this Act. If a licensee
fails to properly register and remit tax under the Use Tax Act
or the Retailers' Occupation Tax Act for all wine that is sold
by the winery shipper and shipped to persons in this State, the
winery shipper's license shall be revoked in accordance with
the provisions of Article VII of this Act.
A winery shipper licensee must collect, maintain, and
submit to the Commission on a semi-annual basis the total
number of cases per resident of wine shipped to residents of
this State. A winery shipper licensed under this subsection
(r) must comply with the requirements of Section 6-29 of this
Act.
Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
Section 3-12, the State Commission may receive, respond to,
and investigate any complaint and impose any of the remedies
specified in paragraph (1) of subsection (a) of Section 3-12.
As used in this subsection, "third-party provider" means
any entity that provides fulfillment house services, including
warehousing, packaging, distribution, order processing, or
shipment of wine, but not the sale of wine, on behalf of a
licensed winery shipper.
(s) A craft distiller tasting permit license shall allow
an Illinois licensed class 1 craft distiller or class 2 craft
distiller to transfer a portion of its alcoholic liquor
inventory from its class 1 craft distiller or class 2 craft
distiller licensed premises to the premises specified in the

SB3358 - 60 - LRB103 38772 RPS 68909 b
license hereby created and to conduct a sampling, only in the
premises specified in the license hereby created, of the
transferred alcoholic liquor in accordance with subsection (c)
of Section 6-31 of this Act. The transferred alcoholic liquor
may not be sold or resold in any form. An applicant for the
craft distiller tasting permit license must also submit with
the application proof satisfactory to the State Commission
that the applicant will provide dram shop liability insurance
to the maximum limits and have local authority approval.
(t) A brewer warehouse permit may be issued to the holder
of a class 1 brewer license or a class 2 brewer license. If the
holder of the permit is a class 1 brewer licensee, the brewer
warehouse permit shall allow the holder to store or warehouse
up to 930,000 gallons of tax-determined beer manufactured by
the holder of the permit at the premises specified on the
permit. If the holder of the permit is a class 2 brewer
licensee, the brewer warehouse permit shall allow the holder
to store or warehouse up to 3,720,000 gallons of
tax-determined beer manufactured by the holder of the permit
at the premises specified on the permit. Sales to
non-licensees are prohibited at the premises specified in the
brewer warehouse permit.
(u) A distilling pub license shall allow the licensee to
only (i) manufacture up to 5,000 gallons of spirits per year
only on the premises specified in the license, (ii) make sales
of the spirits manufactured on the premises or, with the

SB3358 - 61 - LRB103 38772 RPS 68909 b
approval of the State Commission, spirits manufactured on
another distilling pub licensed premises that is wholly owned
and operated by the same licensee to importing distributors
and distributors and to non-licensees for use and consumption,
(iii) store the spirits upon the premises, (iv) sell and offer
for sale at retail from the licensed premises for off-premises
consumption no more than 5,000 gallons per year so long as such
sales are only made in-person, (v) sell and offer for sale at
retail for use and consumption on the premises specified in
the license any form of alcoholic liquor purchased from a
licensed distributor or importing distributor, and (vi) with
the prior approval of the State Commission, annually transfer
no more than 5,000 gallons of spirits manufactured on the
premises to a licensed distilling pub wholly owned and
operated by the same licensee.
A distilling pub licensee shall not under any circumstance
sell or offer for sale spirits manufactured by the distilling
pub licensee to retail licensees.
A person who holds a class 2 craft distiller license may
simultaneously hold a distilling pub license if the class 2
craft distiller (i) does not, under any circumstance, sell or
offer for sale spirits manufactured by the class 2 craft
distiller to retail licensees; (ii) does not hold more than 3
distilling pub licenses in this State; (iii) does not
manufacture more than a combined 100,000 gallons of spirits
per year, including the spirits manufactured at the distilling

SB3358 - 62 - LRB103 38772 RPS 68909 b
pub; and (iv) is not a member of or affiliated with, directly
or indirectly, a manufacturer that produces more than 100,000
gallons of spirits per year or any other alcoholic liquor.
(v) A craft distiller warehouse permit may be issued to
the holder of a class 1 craft distiller or class 2 craft
distiller license. The craft distiller warehouse permit shall
allow the holder to store or warehouse up to 500,000 gallons of
spirits manufactured by the holder of the permit at the
premises specified on the permit. Sales to non-licensees are
prohibited at the premises specified in the craft distiller
warehouse permit.
(w) A beer showcase permit license shall allow an
Illinois-licensed distributor to transfer a portion of its
beer inventory from its licensed premises to the premises
specified in the beer showcase permit license, and, in the
case of a class 3 brewer, transfer only beer the class 3 brewer
manufactures from its licensed premises to the premises
specified in the beer showcase permit license; and to sell or
offer for sale at retail, only in the premises specified in the
beer showcase permit license, the transferred or delivered
beer for on or off premise consumption, but not for resale in
any form and to sell to non-licensees not more than 96 fluid
ounces of beer per person. A beer showcase permit license may
be granted for the following time periods: one day or less; or
2 or more days to a maximum of 15 days per location in any
12-month period. An applicant for a beer showcase permit

SB3358 - 63 - LRB103 38772 RPS 68909 b
license must also submit with the application proof
satisfactory to the State Commission that the applicant will
provide dram shop liability insurance to the maximum limits
and have local authority approval. The State Commission shall
require the beer showcase applicant to comply with Section
6-27.1.
(x) A distillery shipper's license shall allow a person
with an Illinois distiller license, a craft distiller license,
a class 1 craft distiller license, or a class 2 craft distiller
license or who is licensed to make spirits under the laws of
another state to ship spirits directly to a resident of this
State who is 21 years of age or older for that resident's
personal use and not for resale. Prior to receiving a
distillery shipper's license, an applicant for the license
must provide the State Commission with a true copy of its
current license in any state in which it is licensed as a
distiller. An applicant for a distillery shipper's license
must also complete an application form that provides any other
information the State Commission deems necessary. The
application form shall include an acknowledgement consenting
to the jurisdiction of the State Commission, the Illinois
Department of Revenue, and the courts of this State concerning
the enforcement of this Act and any related laws, rules, and
regulations, including authorizing the Illinois Department of
Revenue and the State Commission to conduct audits for the
purpose of ensuring compliance with this amendatory Act of the

SB3358 - 64 - LRB103 38772 RPS 68909 b
103rd General Assembly.
A distillery shipper's licensee must pay to the Illinois
Department of Revenue the State liquor gallonage tax under
Section 8-1 for all spirits that are sold by the licensee and
shipped to a person in this State. For the purposes of Section
8-1, an out-of-state distillery shipper's licensee shall be
taxed in the same manner as a manufacturer of spirits. A
licensee who is not otherwise required to register under the
Retailers' Occupation Tax Act must register under the Use Tax
Act to collect and remit use tax to the Illinois Department of
Revenue for all gallons of spirits that are sold by the
licensee and shipped to persons in this State. If a licensee
fails to remit the tax imposed under this Act in accordance
with the provisions of Article VIII of this Act, the
distillery shipper's license shall be revoked in accordance
with the provisions of Article VII of this Act. If a licensee
fails to properly register and remit tax under the Use Tax Act
or the Retailers' Occupation Tax Act for all spirits that is
sold by the distillery shipper and shipped to persons in this
State, the distillery shipper's license shall be revoked in
accordance with the provisions of Article VII of this Act.
A distillery shipper's licensee must collect, maintain,
and submit to the State Commission on a semi-annual basis the
total gallons of spirits per resident shipped to residents of
this State. A distillery shipper licensed under this
subsection must comply with the requirements of Section

SB3358 - 65 - LRB103 38772 RPS 68909 b
6-29.05 of this Act. Pursuant to paragraph (5.1) or (5.3) of
subsection (a) of Section 3-12, the State Commission may
receive, respond to, and investigate any complaint and impose
any of the remedies specified in paragraph (1) of subsection
(a) of Section 3-12.
Except as provided in Section 6-16, 6-29, or 6-29.05,
nothing in this Act shall deny, limit, remove, or restrict the
ability of a holder of a distilling pub license to transfer or
ship alcoholic liquor it produces to the purchaser for use or
consumption subject to any applicable local law or ordinance.
Except as provided in Section 6-16, 6-29, or 6-29.05, nothing
in this Act shall limit, remove, or restrict the ability of a
holder of a distilling pub license to deliver alcoholic liquor
to the purchaser for use or consumption. The delivery shall be
made only within 12 hours after the alcoholic liquor leaves
the licensed premises of the distilling pub for delivery.
For the purposes of this subsection, "delivery" means the
movement of alcoholic liquor purchased from a licensed
distilling pub to the consumer through the following methods:
(1) delivery within the licensed distilling pub
parking lot, including curbside, for pickup by the
consumer;
(2) delivery by an owner, officer, director,
shareholder, or employee of the licensed distilling pub;
or
(3) delivery by a third-party contractor, independent

SB3358 - 66 - LRB103 38772 RPS 68909 b
contractor, or agent with whom the licensed distilling pub
has contracted to make deliveries of alcoholic liquors.
Under paragraphs (1), (2), or (3) of this subsection,
"delivery" does not include common carriers.
For the purposes of this subsection, "ship" means to move
alcoholic liquor from a licensed distilling pub to a consumer
via a common carrier.
Except for a municipality with a population of more than
1,000,000 inhabitants, a home rule unit may not regulate the
delivery of alcoholic liquor in a manner inconsistent with
this subsection. This paragraph is a limitation under
subsection (i) of Section 6 of Article VII of the Illinois
Constitution on the concurrent exercise by home rule units of
powers and functions exercised by the State.
(Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19;
101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff.
8-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22;
102-442, eff. 8-20-21; 102-1142, eff. 2-17-23.)
(235 ILCS 5/5-3) (from Ch. 43, par. 118)
Sec. 5-3. License fees. Except as otherwise provided
herein, at the time application is made to the State
Commission for a license of any class, the applicant shall pay
to the State Commission the fee hereinafter provided for the
kind of license applied for.
The fee for licenses issued by the State Commission shall

SB3358 - 67 - LRB103 38772 RPS 68909 b
be as follows:
Online Initial
renewal license
or
non-online
renewal
For a manufacturer's license:
Class 1. Distiller ................. $4,000 $5,000
Class 2. Rectifier ................. 4,000 5,000
Class 3. Brewer .................... 1,200 1,500
Class 4. First-class Wine
Manufacturer ................... 750 900
Class 5. Second-class
Wine Manufacturer .............. 1,500 1,750
Class 6. First-class wine-maker .... 750 900
Class 7. Second-class wine-maker ... 1,500 1,750
Class 8. Limited Wine
Manufacturer.................... 250 350
Class 9. Craft Distiller............ 2,000 2,500
Class 10. Class 1 Craft Distiller... 50 75
Class 11. Class 2 Craft Distiller... 75 100
Class 12. Class 1 Brewer............ 50 75
Class 13. Class 2 Brewer............ 75 100
Class 14. Class 3 Brewer............ 25 50
For a Brew Pub License.............. 1,200 1,500
For a Distilling Pub License........ 1,200 1,500

SB3358 - 68 - LRB103 38772 RPS 68909 b
For a caterer retailer's license.... 350 500
For a foreign importer's license ... 25 25
For an importing distributor's
license......................... 25 25
For a distributor's license
(11,250,000 gallons
or over)........................ 1,450 2,200
For a distributor's license
(over 4,500,000 gallons, but
under 11,250,000 gallons)....... 950 1,450
For a distributor's license
(4,500,000 gallons or under).... 300 450
For a non-resident dealer's license
(500,000 gallons or over)
or with self-distribution
privileges ..................... 1,200 1,500
For a non-resident dealer's license
(under 500,000 gallons) ........ 250 350
For a wine-maker's premises
license ........................ 250 500
For a winery shipper's license
(under 250,000 gallons)......... 200 350
For a winery shipper's license
(250,000 or over, but
under 500,000 gallons).......... 750 1,000
For a winery shipper's license

SB3358 - 69 - LRB103 38772 RPS 68909 b
(500,000 gallons or over)....... 1,200 1,500
For a distillery shipper's license
(under 100,000 gallons). 200 350
For a distillery shipper's license
(100,000 gallons or over). 1,200 1,500
For a wine-maker's premises
license, second location ....... 500 1,000
For a wine-maker's premises
license, third location ........ 500 1,000
For a retailer's license ........... 600 750
For a special event retailer's
license, (not-for-profit) ...... 25 25
For a beer showcase permit,
one day only ................... 100 150
2 days or more ................. 150 250
For a special use permit license,
one day only ................... 100 150
2 days or more ................. 150 250
For a railroad license ............. 100 150
For a boat license ................. 500 1,000
For an airplane license, times the
licensee's maximum number of
aircraft in flight, serving
liquor over the State at any
given time, which either
originate, terminate, or make

SB3358 - 70 - LRB103 38772 RPS 68909 b
an intermediate stop in
the State....................... 100 150
For a non-beverage user's license:
Class 1 ........................ 24 24
Class 2 ........................ 60 60
Class 3 ........................ 120 120
Class 4 ........................ 240 240
Class 5 ........................ 600 600
For a broker's license ............. 750 1,000
For an auction liquor license ...... 100 150
For a homebrewer special
event permit.................... 25 25
For a craft distiller
tasting permit.................. 25 25
For a BASSET trainer license........ 300 350
For a tasting representative
license......................... 200 300
For a brewer warehouse permit....... 25 25
For a craft distiller
warehouse permit................ 25 25
Fees collected under this Section shall be paid into the
Dram Shop Fund. The State Commission shall waive license
renewal fees for those retailers' licenses that are designated
as "1A" by the State Commission and expire on or after July 1,
2022, and on or before June 30, 2023. One-half of the funds
received for a retailer's license shall be paid into the Dram

SB3358 - 71 - LRB103 38772 RPS 68909 b
Shop Fund and one-half of the funds received for a retailer's
license shall be paid into the General Revenue Fund.
No fee shall be paid for licenses issued by the State
Commission to the following non-beverage users:
(a) Hospitals, sanitariums, or clinics when their use
of alcoholic liquor is exclusively medicinal, mechanical,
or scientific.
(b) Universities, colleges of learning, or schools
when their use of alcoholic liquor is exclusively
medicinal, mechanical, or scientific.
(c) Laboratories when their use is exclusively for the
purpose of scientific research.
(Source: P.A. 102-442, eff. 8-20-21; 102-558, eff. 8-20-21;
102-699, eff. 4-19-22; 102-1142, eff. 2-17-23; 103-154, eff.
6-30-23; revised 9-5-23.)
(235 ILCS 5/6-29.05 new)
Sec. 6-29.05. Distillery shipper's license.
(a) The General Assembly declares that the following is
the intent of this Section:
(1) To authorize direct shipment of spirits by an
out-of-state distiller on the same basis permitted an
in-state distiller, an in-state craft distiller, an
in-state class 1 craft distiller, and an in-state class 2
craft distiller pursuant to the authority of the State
under the provisions of Section 2 of the Twenty-First

SB3358 - 72 - LRB103 38772 RPS 68909 b
Amendment to the United States Constitution and in
conformance with the United States Supreme Court decision
decided on May 16, 2005 in Granholm v. Heald.
(2) To reaffirm that the General Assembly's findings
and declarations that selling alcoholic liquor through
various direct marketing means, such as catalogs,
newspapers, mailings, and the Internet, directly to
consumers of this State poses a serious threat to the
State's efforts to further temperance and prevent youth
from accessing alcoholic liquor and the expansion of youth
access to additional types of alcoholic liquors.
(3) To maintain the State's broad powers granted by
Section 2 of the Twenty-First Amendment to the United
States Constitution to control the importation or sale of
alcoholic liquor and its right to structure its alcoholic
liquor distribution system.
(4) To ensure that the General Assembly, by
authorizing limited direct shipment of spirits to meet the
directives of the United States Supreme Court, does not
intend to impair or modify the State's distribution of
spirits through distributors or importing distributors,
but only to permit limited shipment of spirits for
personal use.
(5) To provide that if a court of competent
jurisdiction declares or finds that this Section, which is
enacted to conform Illinois law to the United States

SB3358 - 73 - LRB103 38772 RPS 68909 b
Supreme Court decision, is invalid or unconstitutional,
the Illinois General Assembly at its earliest general
session shall conduct hearings and study methods to
conform to any directive or order of the court consistent
with the temperance and revenue collection purposes of
this Act.
(b) Notwithstanding any other provision of law, a
distillery shipper's licensee may ship, for personal use and
not for resale, not more than 12 cases of spirits per year to
any resident of this State who is 21 years of age or older.
(c) Notwithstanding any other provision of law, sale and
shipment by a distillery shipper's licensee pursuant to this
Section shall be deemed to constitute a sale in this State.
(d) The shipping container of any spirit shipped under
this Section shall be clearly labeled with the following
words: "CONTAINS ALCOHOL. SIGNATURE OF A PERSON 21 YEARS OF
AGE OR OLDER REQUIRED FOR DELIVERY. PROOF OF AGE AND IDENTITY
MUST BE SHOWN BEFORE DELIVERY.". This warning must be
prominently displayed on the packaging. A licensee shall
require the transporter or common carrier that delivers the
spirits to obtain the signature of a person 21 years of age or
older at the delivery address at the time of delivery. At the
expense of the licensee, the licensee shall receive a delivery
confirmation from the express company, common carrier, or
contract carrier indicating the location of the delivery, time
of delivery, and the name and signature of the individual 21

SB3358 - 74 - LRB103 38772 RPS 68909 b