Illinois-2023-SB3358-Introduced

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

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LRB103 38772 RPS 68909 b

1 AN ACT concerning liquor.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Liquor Control Act of 1934 is amended by

5 changing Sections 3-12, 5-1, and 5-3 and by adding Section

6 6-29.05 as follows:

7 (235 ILCS 5/3-12)

8 Sec. 3-12. Powers and duties of State Commission.

9 (a) The State Commission shall have the following powers,

10 functions, and duties:

11 (1) To receive applications and to issue licenses to

12 manufacturers, foreign importers, importing distributors,

13 distributors, non-resident dealers, on premise consumption

14 retailers, off premise sale retailers, special event

15 retailer licensees, special use permit licenses, auction

16 liquor licenses, brew pubs, caterer retailers,

17 non-beverage users, railroads, including owners and

18 lessees of sleeping, dining and cafe cars, airplanes,

19 boats, brokers, and wine maker's premises licensees in

20 accordance with the provisions of this Act, and to suspend

21 or revoke such licenses upon the State Commission's

22 determination, upon notice after hearing, that a licensee

23 has violated any provision of this Act or any rule or

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1 regulation issued pursuant thereto and in effect for 30

2 days prior to such violation. Except in the case of an

3 action taken pursuant to a violation of Section 6-3, 6-5,

4 or 6-9, any action by the State Commission to suspend or

5 revoke a licensee's license may be limited to the license

6 for the specific premises where the violation occurred. An

7 action for a violation of this Act shall be commenced by

8 the State Commission within 2 years after the date the

9 State Commission becomes aware of the violation.

10 In lieu of suspending or revoking a license, the

11 commission may impose a fine, upon the State Commission's

12 determination and notice after hearing, that a licensee

13 has violated any provision of this Act or any rule or

14 regulation issued pursuant thereto and in effect for 30

15 days prior to such violation.

16 For the purpose of this paragraph (1), when

17 determining multiple violations for the sale of alcohol to

18 a person under the age of 21, a second or subsequent

19 violation for the sale of alcohol to a person under the age

20 of 21 shall only be considered if it was committed within 5

21 years after the date when a prior violation for the sale of

22 alcohol to a person under the age of 21 was committed.

23 The fine imposed under this paragraph may not exceed

24 $500 for each violation. Each day that the activity, which

25 gave rise to the original fine, continues is a separate

26 violation. The maximum fine that may be levied against any

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1 licensee, for the period of the license, shall not exceed

2 $20,000. The maximum penalty that may be imposed on a

3 licensee for selling a bottle of alcoholic liquor with a

4 foreign object in it or serving from a bottle of alcoholic

5 liquor with a foreign object in it shall be the

6 destruction of that bottle of alcoholic liquor for the

7 first 10 bottles so sold or served from by the licensee.

8 For the eleventh bottle of alcoholic liquor and for each

9 third bottle thereafter sold or served from by the

10 licensee with a foreign object in it, the maximum penalty

11 that may be imposed on the licensee is the destruction of

12 the bottle of alcoholic liquor and a fine of up to $50.

13 Any notice issued by the State Commission to a

14 licensee for a violation of this Act or any notice with

15 respect to settlement or offer in compromise shall include

16 the field report, photographs, and any other supporting

17 documentation necessary to reasonably inform the licensee

18 of the nature and extent of the violation or the conduct

19 alleged to have occurred. The failure to include such

20 required documentation shall result in the dismissal of

21 the action.

22 (2) To adopt such rules and regulations consistent

23 with the provisions of this Act which shall be necessary

24 to carry on its functions and duties to the end that the

25 health, safety and welfare of the People of the State of

26 Illinois shall be protected and temperance in the

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1 consumption of alcoholic liquors shall be fostered and

2 promoted and to distribute copies of such rules and

3 regulations to all licensees affected thereby.

4 (3) To call upon other administrative departments of

5 the State, county and municipal governments, county and

6 city police departments and upon prosecuting officers for

7 such information and assistance as it deems necessary in

8 the performance of its duties.

9 (4) To recommend to local commissioners rules and

10 regulations, not inconsistent with the law, for the

11 distribution and sale of alcoholic liquors throughout the

12 State.

13 (5) To inspect, or cause to be inspected, any premises

14 in this State where alcoholic liquors are manufactured,

15 distributed, warehoused, or sold. Nothing in this Act

16 authorizes an agent of the State Commission to inspect

17 private areas within the premises without reasonable

18 suspicion or a warrant during an inspection. "Private

19 areas" include, but are not limited to, safes, personal

20 property, and closed desks.

21 (5.1) Upon receipt of a complaint or upon having

22 knowledge that any person is engaged in business as a

23 manufacturer, importing distributor, distributor, or

24 retailer without a license or valid license, to conduct an

25 investigation. If, after conducting an investigation, the

26 State Commission is satisfied that the alleged conduct

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1 occurred or is occurring, it may issue a cease and desist

2 notice as provided in this Act, impose civil penalties as

3 provided in this Act, notify the local liquor authority,

4 or file a complaint with the State's Attorney's Office of

5 the county where the incident occurred or the Attorney

6 General.

7 (5.2) Upon receipt of a complaint or upon having

8 knowledge that any person is shipping alcoholic liquor

9 into this State from a point outside of this State if the

10 shipment is in violation of this Act, to conduct an

11 investigation. If, after conducting an investigation, the

12 State Commission is satisfied that the alleged conduct

13 occurred or is occurring, it may issue a cease and desist

14 notice as provided in this Act, impose civil penalties as

15 provided in this Act, notify the foreign jurisdiction, or

16 file a complaint with the State's Attorney's Office of the

17 county where the incident occurred or the Attorney

18 General.

19 (5.3) To receive complaints from licensees, local

20 officials, law enforcement agencies, organizations, and

21 persons stating that any licensee has been or is violating

22 any provision of this Act or the rules and regulations

23 issued pursuant to this Act. Such complaints shall be in

24 writing, signed and sworn to by the person making the

25 complaint, and shall state with specificity the facts in

26 relation to the alleged violation. If the State Commission

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1 has reasonable grounds to believe that the complaint

2 substantially alleges a violation of this Act or rules and

3 regulations adopted pursuant to this Act, it shall conduct

4 an investigation. If, after conducting an investigation,

5 the State Commission is satisfied that the alleged

6 violation did occur, it shall proceed with disciplinary

7 action against the licensee as provided in this Act.

8 (5.4) To make arrests and issue notices of civil

9 violations where necessary for the enforcement of this

10 Act.

11 (5.5) To investigate any and all unlicensed activity.

12 (5.6) To impose civil penalties or fines to any person

13 who, without holding a valid license, engages in conduct

14 that requires a license pursuant to this Act, in an amount

15 not to exceed $20,000 for each offense as determined by

16 the State Commission. A civil penalty shall be assessed by

17 the State Commission after a hearing is held in accordance

18 with the provisions set forth in this Act regarding the

19 provision of a hearing for the revocation or suspension of

20 a license.

21 (6) To hear and determine appeals from orders of a

22 local commission in accordance with the provisions of this

23 Act, as hereinafter set forth. Hearings under this

24 subsection shall be held in Springfield or Chicago, at

25 whichever location is the more convenient for the majority

26 of persons who are parties to the hearing.

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1 (7) The State Commission shall establish uniform

2 systems of accounts to be kept by all retail licensees

3 having more than 4 employees, and for this purpose the

4 State Commission may classify all retail licensees having

5 more than 4 employees and establish a uniform system of

6 accounts for each class and prescribe the manner in which

7 such accounts shall be kept. The State Commission may also

8 prescribe the forms of accounts to be kept by all retail

9 licensees having more than 4 employees, including, but not

10 limited to, accounts of earnings and expenses and any

11 distribution, payment, or other distribution of earnings

12 or assets, and any other forms, records, and memoranda

13 which in the judgment of the commission may be necessary

14 or appropriate to carry out any of the provisions of this

15 Act, including, but not limited to, such forms, records,

16 and memoranda as will readily and accurately disclose at

17 all times the beneficial ownership of such retail licensed

18 business. The accounts, forms, records, and memoranda

19 shall be available at all reasonable times for inspection

20 by authorized representatives of the State Commission or

21 by any local liquor control commissioner or his or her

22 authorized representative. The commission may, from time

23 to time, alter, amend, or repeal, in whole or in part, any

24 uniform system of accounts, or the form and manner of

25 keeping accounts.

26 (8) In the conduct of any hearing authorized to be

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1 held by the State Commission, to appoint, at the

2 commission's discretion, hearing officers to conduct

3 hearings involving complex issues or issues that will

4 require a protracted period of time to resolve, to

5 examine, or cause to be examined, under oath, any

6 licensee, and to examine or cause to be examined the books

7 and records of such licensee; to hear testimony and take

8 proof material for its information in the discharge of its

9 duties hereunder; to administer or cause to be

10 administered oaths; for any such purpose to issue subpoena

11 or subpoenas to require the attendance of witnesses and

12 the production of books, which shall be effective in any

13 part of this State, and to adopt rules to implement its

14 powers under this paragraph (8).

15 Any circuit court may, by order duly entered, require

16 the attendance of witnesses and the production of relevant

17 books subpoenaed by the State Commission and the court may

18 compel obedience to its order by proceedings for contempt.

19 (9) To investigate the administration of laws in

20 relation to alcoholic liquors in this and other states and

21 any foreign countries, and to recommend from time to time

22 to the Governor and through him or her to the legislature

23 of this State, such amendments to this Act, if any, as it

24 may think desirable and as will serve to further the

25 general broad purposes contained in Section 1-2 hereof.

26 (10) To adopt such rules and regulations consistent

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1 with the provisions of this Act which shall be necessary

2 for the control, sale, or disposition of alcoholic liquor

3 damaged as a result of an accident, wreck, flood, fire, or

4 other similar occurrence.

5 (11) To develop industry educational programs related

6 to responsible serving and selling, particularly in the

7 areas of overserving consumers and illegal underage

8 purchasing and consumption of alcoholic beverages.

9 (11.1) To license persons providing education and

10 training to alcohol beverage sellers and servers for

11 mandatory and non-mandatory training under the Beverage

12 Alcohol Sellers and Servers Education and Training

13 (BASSET) programs and to develop and administer a public

14 awareness program in Illinois to reduce or eliminate the

15 illegal purchase and consumption of alcoholic beverage

16 products by persons under the age of 21. Application for a

17 license shall be made on forms provided by the State

18 Commission.

19 (12) To develop and maintain a repository of license

20 and regulatory information.

21 (13) (Blank).

22 (14) On or before April 30, 2008 and every 2 years

23 thereafter, the State Commission shall present a written

24 report to the Governor and the General Assembly that shall

25 be based on a study of the impact of Public Act 95-634 on

26 the business of soliciting, selling, and shipping wine

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1 from inside and outside of this State directly to

2 residents of this State. As part of its report, the State

3 Commission shall provide all of the following information:

4 (A) The amount of State excise and sales tax

5 revenues generated.

6 (B) The amount of licensing fees received.

7 (C) The number of cases of wine shipped from

8 inside and outside of this State directly to residents

9 of this State.

10 (D) The number of alcohol compliance operations

11 conducted.

12 (E) The number of winery shipper's licenses

13 issued.

14 (F) The number of each of the following: reported

15 violations; cease and desist notices issued by the

16 Commission; notices of violations issued by the

17 Commission and to the Department of Revenue; and

18 notices and complaints of violations to law

19 enforcement officials, including, without limitation,

20 the Illinois Attorney General and the U.S. Department

21 of Treasury's Alcohol and Tobacco Tax and Trade

22 Bureau.

23 (15) As a means to reduce the underage consumption of

24 alcoholic liquors, the State Commission shall conduct

25 alcohol compliance operations to investigate whether

26 businesses that are soliciting, selling, and shipping wine

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1 from inside or outside of this State directly to residents

2 of this State are licensed by this State or are selling or

3 attempting to sell wine to persons under 21 years of age in

4 violation of this Act.

5 (16) The State Commission shall, in addition to

6 notifying any appropriate law enforcement agency, submit

7 notices of complaints or violations of Sections 6-29,

8 6-29.05, and 6-29.1 by persons who do not hold a winery

9 shipper's license or distillery shipper's license under

10 this Act to the Illinois Attorney General and to the U.S.

11 Department of Treasury's Alcohol and Tobacco Tax and Trade

12 Bureau.

13 (17)(A) A person licensed to make wine under the laws

14 of another state who has a winery shipper's license under

15 this Act and annually produces less than 25,000 gallons of

16 wine or a person who has a first-class or second-class

17 wine manufacturer's license, a first-class or second-class

18 wine-maker's license, or a limited wine manufacturer's

19 license under this Act and annually produces less than

20 25,000 gallons of wine may make application to the

21 Commission for a self-distribution exemption to allow the

22 sale of not more than 5,000 gallons of the exemption

23 holder's wine to retail licensees per year and to sell

24 cider, mead, or both cider and mead to brewers, class 1

25 brewers, class 2 brewers, and class 3 brewers that,

26 pursuant to subsection (e) of Section 6-4 of this Act,

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1 sell beer, cider, mead, or any combination thereof to

2 non-licensees at their breweries.

3 (B) In the application, which shall be sworn under

4 penalty of perjury, such person shall state (1) the date

5 it was established; (2) its volume of production and sales

6 for each year since its establishment; (3) its efforts to

7 establish distributor relationships; (4) that a

8 self-distribution exemption is necessary to facilitate the

9 marketing of its wine; and (5) that it will comply with the

10 liquor and revenue laws of the United States, this State,

11 and any other state where it is licensed.

12 (C) The State Commission shall approve the application

13 for a self-distribution exemption if such person: (1) is

14 in compliance with State revenue and liquor laws; (2) is

15 not a member of any affiliated group that produces

16 directly or indirectly more than 25,000 gallons of wine

17 per annum, 930,000 gallons of beer per annum, or 50,000

18 gallons of spirits per annum; (3) will not annually

19 produce for sale more than 25,000 gallons of wine, 930,000

20 gallons of beer, or 50,000 gallons of spirits; and (4)

21 will not annually sell more than 5,000 gallons of its wine

22 to retail licensees.

23 (D) A self-distribution exemption holder shall

24 annually certify to the State Commission its production of

25 wine in the previous 12 months and its anticipated

26 production and sales for the next 12 months. The State

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1 Commission may fine, suspend, or revoke a

2 self-distribution exemption after a hearing if it finds

3 that the exemption holder has made a material

4 misrepresentation in its application, violated a revenue

5 or liquor law of Illinois, exceeded production of 25,000

6 gallons of wine, 930,000 gallons of beer, or 50,000

7 gallons of spirits in any calendar year, or become part of

8 an affiliated group producing more than 25,000 gallons of

9 wine, 930,000 gallons of beer, or 50,000 gallons of

10 spirits.

11 (E) Except in hearings for violations of this Act or

12 Public Act 95-634 or a bona fide investigation by duly

13 sworn law enforcement officials, the State Commission, or

14 its agents, the State Commission shall maintain the

15 production and sales information of a self-distribution

16 exemption holder as confidential and shall not release

17 such information to any person.

18 (F) The State Commission shall issue regulations

19 governing self-distribution exemptions consistent with

20 this Section and this Act.

21 (G) Nothing in this paragraph (17) shall prohibit a

22 self-distribution exemption holder from entering into or

23 simultaneously having a distribution agreement with a

24 licensed Illinois distributor.

25 (H) It is the intent of this paragraph (17) to promote

26 and continue orderly markets. The General Assembly finds

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1 that, in order to preserve Illinois' regulatory

2 distribution system, it is necessary to create an

3 exception for smaller makers of wine as their wines are

4 frequently adjusted in varietals, mixes, vintages, and

5 taste to find and create market niches sometimes too small

6 for distributor or importing distributor business

7 strategies. Limited self-distribution rights will afford

8 and allow smaller makers of wine access to the marketplace

9 in order to develop a customer base without impairing the

10 integrity of the 3-tier system.

11 (18)(A) A class 1 brewer licensee, who must also be

12 either a licensed brewer or licensed non-resident dealer

13 and annually manufacture less than 930,000 gallons of

14 beer, may make application to the State Commission for a

15 self-distribution exemption to allow the sale of not more

16 than 232,500 gallons per year of the exemption holder's

17 beer to retail licensees and to brewers, class 1 brewers,

18 and class 2 brewers that, pursuant to subsection (e) of

19 Section 6-4 of this Act, sell beer, cider, mead, or any

20 combination thereof to non-licensees at their breweries.

21 (B) In the application, which shall be sworn under

22 penalty of perjury, the class 1 brewer licensee shall

23 state (1) the date it was established; (2) its volume of

24 beer manufactured and sold for each year since its

25 establishment; (3) its efforts to establish distributor

26 relationships; (4) that a self-distribution exemption is

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1 necessary to facilitate the marketing of its beer; and (5)

2 that it will comply with the alcoholic beverage and

3 revenue laws of the United States, this State, and any

4 other state where it is licensed.

5 (C) Any application submitted shall be posted on the

6 State Commission's website at least 45 days prior to

7 action by the State Commission. The State Commission shall

8 approve the application for a self-distribution exemption

9 if the class 1 brewer licensee: (1) is in compliance with

10 the State, revenue, and alcoholic beverage laws; (2) is

11 not a member of any affiliated group that manufactures,

12 directly or indirectly, more than 930,000 gallons of beer

13 per annum, 25,000 gallons of wine per annum, or 50,000

14 gallons of spirits per annum; (3) shall not annually

15 manufacture for sale more than 930,000 gallons of beer,

16 25,000 gallons of wine, or 50,000 gallons of spirits; (4)

17 shall not annually sell more than 232,500 gallons of its

18 beer to retail licensees and class 3 brewers and to

19 brewers, class 1 brewers, and class 2 brewers that,

20 pursuant to subsection (e) of Section 6-4 of this Act,

21 sell beer, cider, mead, or any combination thereof to

22 non-licensees at their breweries; and (5) has relinquished

23 any brew pub license held by the licensee, including any

24 ownership interest it held in the licensed brew pub.

25 (D) A self-distribution exemption holder shall

26 annually certify to the State Commission its manufacture

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1 of beer during the previous 12 months and its anticipated

2 manufacture and sales of beer for the next 12 months. The

3 State Commission may fine, suspend, or revoke a

4 self-distribution exemption after a hearing if it finds

5 that the exemption holder has made a material

6 misrepresentation in its application, violated a revenue

7 or alcoholic beverage law of Illinois, exceeded the

8 manufacture of 930,000 gallons of beer, 25,000 gallons of

9 wine, or 50,000 gallons of spirits in any calendar year or

10 became part of an affiliated group manufacturing more than

11 930,000 gallons of beer, 25,000 gallons of wine, or 50,000

12 gallons of spirits.

13 (E) The State Commission shall issue rules and

14 regulations governing self-distribution exemptions

15 consistent with this Act.

16 (F) Nothing in this paragraph (18) shall prohibit a

17 self-distribution exemption holder from entering into or

18 simultaneously having a distribution agreement with a

19 licensed Illinois importing distributor or a distributor.

20 If a self-distribution exemption holder enters into a

21 distribution agreement and has assigned distribution

22 rights to an importing distributor or distributor, then

23 the self-distribution exemption holder's distribution

24 rights in the assigned territories shall cease in a

25 reasonable time not to exceed 60 days.

26 (G) It is the intent of this paragraph (18) to promote

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1 and continue orderly markets. The General Assembly finds

2 that in order to preserve Illinois' regulatory

3 distribution system, it is necessary to create an

4 exception for smaller manufacturers in order to afford and

5 allow such smaller manufacturers of beer access to the

6 marketplace in order to develop a customer base without

7 impairing the integrity of the 3-tier system.

8 (19)(A) A class 1 craft distiller licensee or a

9 non-resident dealer who manufactures less than 50,000

10 gallons of distilled spirits per year may make application

11 to the State Commission for a self-distribution exemption

12 to allow the sale of not more than 5,000 gallons of the

13 exemption holder's spirits to retail licensees per year.

14 (B) In the application, which shall be sworn under

15 penalty of perjury, the class 1 craft distiller licensee

16 or non-resident dealer shall state (1) the date it was

17 established; (2) its volume of spirits manufactured and

18 sold for each year since its establishment; (3) its

19 efforts to establish distributor relationships; (4) that a

20 self-distribution exemption is necessary to facilitate the

21 marketing of its spirits; and (5) that it will comply with

22 the alcoholic beverage and revenue laws of the United

23 States, this State, and any other state where it is

24 licensed.

25 (C) Any application submitted shall be posted on the

26 State Commission's website at least 45 days prior to

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1 action by the State Commission. The State Commission shall

2 approve the application for a self-distribution exemption

3 if the applicant: (1) is in compliance with State revenue

4 and alcoholic beverage laws; (2) is not a member of any

5 affiliated group that produces more than 50,000 gallons of

6 spirits per annum, 930,000 gallons of beer per annum, or

7 25,000 gallons of wine per annum; (3) does not annually

8 manufacture for sale more than 50,000 gallons of spirits,

9 930,000 gallons of beer, or 25,000 gallons of wine; and

10 (4) does not annually sell more than 5,000 gallons of its

11 spirits to retail licensees.

12 (D) A self-distribution exemption holder shall

13 annually certify to the State Commission its manufacture

14 of spirits during the previous 12 months and its

15 anticipated manufacture and sales of spirits for the next

16 12 months. The State Commission may fine, suspend, or

17 revoke a self-distribution exemption after a hearing if it

18 finds that the exemption holder has made a material

19 misrepresentation in its application, violated a revenue

20 or alcoholic beverage law of Illinois, exceeded the

21 manufacture of 50,000 gallons of spirits, 930,000 gallons

22 of beer, or 25,000 gallons of wine in any calendar year, or

23 has become part of an affiliated group manufacturing more

24 than 50,000 gallons of spirits, 930,000 gallons of beer,

25 or 25,000 gallons of wine.

26 (E) The State Commission shall adopt rules governing

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1 self-distribution exemptions consistent with this Act.

2 (F) Nothing in this paragraph (19) shall prohibit a

3 self-distribution exemption holder from entering into or

4 simultaneously having a distribution agreement with a

5 licensed Illinois importing distributor or a distributor.

6 (G) It is the intent of this paragraph (19) to promote

7 and continue orderly markets. The General Assembly finds

8 that in order to preserve Illinois' regulatory

9 distribution system, it is necessary to create an

10 exception for smaller manufacturers in order to afford and

11 allow such smaller manufacturers of spirits access to the

12 marketplace in order to develop a customer base without

13 impairing the integrity of the 3-tier system.

14 (20)(A) A class 3 brewer licensee who must manufacture

15 less than 465,000 gallons of beer in the aggregate and not

16 more than 155,000 gallons at any single brewery premises

17 may make application to the State Commission for a

18 self-distribution exemption to allow the sale of not more

19 than 6,200 gallons of beer from each in-state or

20 out-of-state class 3 brewery premises, which shall not

21 exceed 18,600 gallons annually in the aggregate, that is

22 manufactured at a wholly owned class 3 brewer's in-state

23 or out-of-state licensed premises to retail licensees and

24 class 3 brewers and to brewers, class 1 brewers, class 2

25 brewers that, pursuant to subsection (e) of Section 6-4,

26 sell beer, cider, or both beer and cider to non-licensees

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1 at their licensed breweries.

2 (B) In the application, which shall be sworn under

3 penalty of perjury, the class 3 brewer licensee shall

4 state:

5 (1) the date it was established;

6 (2) its volume of beer manufactured and sold for

7 each year since its establishment;

8 (3) its efforts to establish distributor

9 relationships;

10 (4) that a self-distribution exemption is

11 necessary to facilitate the marketing of its beer; and

12 (5) that it will comply with the alcoholic

13 beverage and revenue laws of the United States, this

14 State, and any other state where it is licensed.

15 (C) Any application submitted shall be posted on the

16 State Commission's website at least 45 days before action

17 by the State Commission. The State Commission shall

18 approve the application for a self-distribution exemption

19 if the class 3 brewer licensee: (1) is in compliance with

20 the State, revenue, and alcoholic beverage laws; (2) is

21 not a member of any affiliated group that manufacturers,

22 directly or indirectly, more than 465,000 gallons of beer

23 per annum; (3) shall not annually manufacture for sale

24 more than 465,000 gallons of beer or more than 155,000

25 gallons at any single brewery premises; and (4) shall not

26 annually sell more than 6,200 gallons of beer from each

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1 in-state or out-of-state class 3 brewery premises, and

2 shall not exceed 18,600 gallons annually in the aggregate,

3 to retail licensees and class 3 brewers and to brewers,

4 class 1 brewers, and class 2 brewers that, pursuant to

5 subsection (e) of Section 6-4 of this Act, sell beer,

6 cider, or both beer and cider to non-licensees at their

7 breweries.

8 (D) A self-distribution exemption holder shall

9 annually certify to the State Commission its manufacture

10 of beer during the previous 12 months and its anticipated

11 manufacture and sales of beer for the next 12 months. The

12 State Commission may fine, suspend, or revoke a

13 self-distribution exemption after a hearing if it finds

14 that the exemption holder has made a material

15 misrepresentation in its application, violated a revenue

16 or alcoholic beverage law of Illinois, exceeded the

17 manufacture of 465,000 gallons of beer in any calendar

18 year or became part of an affiliated group manufacturing

19 more than 465,000 gallons of beer, or exceeded the sale to

20 retail licensees, brewers, class 1 brewers, class 2

21 brewers, and class 3 brewers of 6,200 gallons per brewery

22 location or 18,600 gallons in the aggregate.

23 (E) The State Commission may adopt rules governing

24 self-distribution exemptions consistent with this Act.

25 (F) Nothing in this paragraph shall prohibit a

26 self-distribution exemption holder from entering into or

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1 simultaneously having a distribution agreement with a

2 licensed Illinois importing distributor or a distributor.

3 If a self-distribution exemption holder enters into a

4 distribution agreement and has assigned distribution

5 rights to an importing distributor or distributor, then

6 the self-distribution exemption holder's distribution

7 rights in the assigned territories shall cease in a

8 reasonable time not to exceed 60 days.

9 (G) It is the intent of this paragraph to promote and

10 continue orderly markets. The General Assembly finds that

11 in order to preserve Illinois' regulatory distribution

12 system, it is necessary to create an exception for smaller

13 manufacturers in order to afford and allow such smaller

14 manufacturers of beer access to the marketplace in order

15 to develop a customer base without impairing the integrity

16 of the 3-tier system.

17 (b) On or before April 30, 1999, the Commission shall

18 present a written report to the Governor and the General

19 Assembly that shall be based on a study of the impact of Public

20 Act 90-739 on the business of soliciting, selling, and

21 shipping alcoholic liquor from outside of this State directly

22 to residents of this State.

23 As part of its report, the Commission shall provide the

24 following information:

25 (i) the amount of State excise and sales tax revenues

26 generated as a result of Public Act 90-739;

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LRB103 38772 RPS 68909 b

1 (ii) the amount of licensing fees received as a result

2 of Public Act 90-739;

3 (iii) the number of reported violations, the number of

4 cease and desist notices issued by the Commission, the

5 number of notices of violations issued to the Department

6 of Revenue, and the number of notices and complaints of

7 violations to law enforcement officials.

8 (Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19;

9 101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff.

10 8-20-21; 102-813, eff. 5-13-22.)

11 (235 ILCS 5/5-1) (from Ch. 43, par. 115)

12 Sec. 5-1. Licenses issued by the Illinois Liquor Control

13 Commission shall be of the following classes:

14 (a) Manufacturer's license - Class 1. Distiller, Class 2.

15 Rectifier, Class 3. Brewer, Class 4. First Class Wine

16 Manufacturer, Class 5. Second Class Wine Manufacturer, Class

17 6. First Class Winemaker, Class 7. Second Class Winemaker,

18 Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,

19 Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft

20 Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,

21 Class 14. Class 3 Brewer,

22 (b) Distributor's license,

23 (c) Importing Distributor's license,

24 (d) Retailer's license,

25 (e) Special Event Retailer's license (not-for-profit),

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LRB103 38772 RPS 68909 b

1 (f) Railroad license,

2 (g) Boat license,

3 (h) Non-Beverage User's license,

4 (i) Wine-maker's premises license,

5 (j) Airplane license,

6 (k) Foreign importer's license,

7 (l) Broker's license,

8 (m) Non-resident dealer's license,

9 (n) Brew Pub license,

10 (o) Auction liquor license,

11 (p) Caterer retailer license,

12 (q) Special use permit license,

13 (r) Winery shipper's license,

14 (s) Craft distiller tasting permit,

15 (t) Brewer warehouse permit,

16 (u) Distilling pub license,

17 (v) Craft distiller warehouse permit,

18 (w) Beer showcase permit, ~~.~~

19 (x) Distillery shipper's license.

20 No person, firm, partnership, corporation, or other legal

21 business entity that is engaged in the manufacturing of wine

22 may concurrently obtain and hold a wine-maker's license and a

23 wine manufacturer's license.

24 (a) A manufacturer's license shall allow the manufacture,

25 importation in bulk, storage, distribution and sale of

26 alcoholic liquor to persons without the State, as may be

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1 permitted by law and to licensees in this State as follows:

2 Class 1. A Distiller may make sales and deliveries of

3 alcoholic liquor to distillers, rectifiers, importing

4 distributors, distributors and non-beverage users and to no

5 other licensees.

6 Class 2. A Rectifier, who is not a distiller, as defined

7 herein, may make sales and deliveries of alcoholic liquor to

8 rectifiers, importing distributors, distributors, retailers

9 and non-beverage users and to no other licensees.

10 Class 3. A Brewer may make sales and deliveries of beer to

11 importing distributors and distributors and may make sales as

12 authorized under subsection (e) of Section 6-4 of this Act,

13 including any alcoholic liquor that subsection (e) of Section

14 6-4 authorizes a brewer to sell in its original package only to

15 a non-licensee for pick-up by a non-licensee either within the

16 interior of the brewery premises or at outside of the brewery

17 premises at a curb-side or parking lot adjacent to the brewery

18 premises, subject to any local ordinance.

19 Class 4. A first class wine-manufacturer may make sales

20 and deliveries of up to 50,000 gallons of wine to

21 manufacturers, importing distributors and distributors, and to

22 no other licensees. If a first-class wine-manufacturer

23 manufactures beer, it shall also obtain and shall only be

24 eligible for, in addition to any current license, a class 1

25 brewer license, shall not manufacture more than 930,000

26 gallons of beer per year, and shall not be a member of or

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1 affiliated with, directly or indirectly, a manufacturer that

2 produces more than 930,000 gallons of beer per year. If the

3 first-class wine-manufacturer manufactures spirits, it shall

4 also obtain and shall only be eligible for, in addition to any

5 current license, a class 1 craft distiller license, shall not

6 manufacture more than 50,000 gallons of spirits per year, and

7 shall not be a member of or affiliated with, directly or

8 indirectly, a manufacturer that produces more than 50,000

9 gallons of spirits per year. A first-class wine-manufacturer

10 shall be permitted to sell wine manufactured at the

11 first-class wine-manufacturer premises to non-licensees.

12 Class 5. A second class Wine manufacturer may make sales

13 and deliveries of more than 50,000 gallons of wine to

14 manufacturers, importing distributors and distributors and to

15 no other licensees.

16 Class 6. A first-class wine-maker's license shall allow

17 the manufacture of up to 50,000 gallons of wine per year, and

18 the storage and sale of such wine to distributors in the State

19 and to persons without the State, as may be permitted by law. A

20 person who, prior to June 1, 2008 (the effective date of Public

21 Act 95-634), is a holder of a first-class wine-maker's license

22 and annually produces more than 25,000 gallons of its own wine

23 and who distributes its wine to licensed retailers shall cease

24 this practice on or before July 1, 2008 in compliance with

25 Public Act 95-634. If a first-class wine-maker manufactures

26 beer, it shall also obtain and shall only be eligible for, in

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1 addition to any current license, a class 1 brewer license,

2 shall not manufacture more than 930,000 gallons of beer per

3 year, and shall not be a member of or affiliated with, directly

4 or indirectly, a manufacturer that produces more than 930,000

5 gallons of beer per year. If the first-class wine-maker

6 manufactures spirits, it shall also obtain and shall only be

7 eligible for, in addition to any current license, a class 1

8 craft distiller license, shall not manufacture more than

9 50,000 gallons of spirits per year, and shall not be a member

10 of or affiliated with, directly or indirectly, a manufacturer

11 that produces more than 50,000 gallons of spirits per year. A

12 first-class wine-maker holding a class 1 brewer license or a

13 class 1 craft distiller license shall not be eligible for a

14 wine-maker's premises license but shall be permitted to sell

15 wine manufactured at the first-class wine-maker premises to

16 non-licensees.

17 Class 7. A second-class wine-maker's license shall allow

18 the manufacture of up to 150,000 gallons of wine per year, and

19 the storage and sale of such wine to distributors in this State

20 and to persons without the State, as may be permitted by law. A

21 person who, prior to June 1, 2008 (the effective date of Public

22 Act 95-634), is a holder of a second-class wine-maker's

23 license and annually produces more than 25,000 gallons of its

24 own wine and who distributes its wine to licensed retailers

25 shall cease this practice on or before July 1, 2008 in

26 compliance with Public Act 95-634. If a second-class

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1 wine-maker manufactures beer, it shall also obtain and shall

2 only be eligible for, in addition to any current license, a

3 class 2 brewer license, shall not manufacture more than

4 3,720,000 gallons of beer per year, and shall not be a member

5 of or affiliated with, directly or indirectly, a manufacturer

6 that produces more than 3,720,000 gallons of beer per year. If

7 a second-class wine-maker manufactures spirits, it shall also

8 obtain and shall only be eligible for, in addition to any

9 current license, a class 2 craft distiller license, shall not

10 manufacture more than 100,000 gallons of spirits per year, and

11 shall not be a member of or affiliated with, directly or

12 indirectly, a manufacturer that produces more than 100,000

13 gallons of spirits per year.

14 Class 8. A limited wine-manufacturer may make sales and

15 deliveries not to exceed 40,000 gallons of wine per year to

16 distributors, and to non-licensees in accordance with the

17 provisions of this Act.

18 Class 9. A craft distiller license, which may only be held

19 by a class 1 craft distiller licensee or class 2 craft

20 distiller licensee but not held by both a class 1 craft

21 distiller licensee and a class 2 craft distiller licensee,

22 shall grant all rights conveyed by either: (i) a class 1 craft

23 distiller license if the craft distiller holds a class 1 craft

24 distiller license; or (ii) a class 2 craft distiller licensee

25 if the craft distiller holds a class 2 craft distiller

26 license.

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1 Class 10. A class 1 craft distiller license, which may

2 only be issued to a licensed craft distiller or licensed

3 non-resident dealer, shall allow the manufacture of up to

4 50,000 gallons of spirits per year provided that the class 1

5 craft distiller licensee does not manufacture more than a

6 combined 50,000 gallons of spirits per year and is not a member

7 of or affiliated with, directly or indirectly, a manufacturer

8 that produces more than 50,000 gallons of spirits per year. If

9 a class 1 craft distiller manufactures beer, it shall also

10 obtain and shall only be eligible for, in addition to any

11 current license, a class 1 brewer license, shall not

12 manufacture more than 930,000 gallons of beer per year, and

13 shall not be a member of or affiliated with, directly or

14 indirectly, a manufacturer that produces more than 930,000

15 gallons of beer per year. If a class 1 craft distiller

16 manufactures wine, it shall also obtain and shall only be

17 eligible for, in addition to any current license, a

18 first-class wine-manufacturer license or a first-class

19 wine-maker's license, shall not manufacture more than 50,000

20 gallons of wine per year, and shall not be a member of or

21 affiliated with, directly or indirectly, a manufacturer that

22 produces more than 50,000 gallons of wine per year. A class 1

23 craft distiller licensee may make sales and deliveries to

24 importing distributors and distributors and to retail

25 licensees in accordance with the conditions set forth in

26 paragraph (19) of subsection (a) of Section 3-12 of this Act.

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1 However, the aggregate amount of spirits sold to non-licensees

2 and sold or delivered to retail licensees may not exceed 5,000

3 gallons per year.

4 A class 1 craft distiller licensee may sell up to 5,000

5 gallons of such spirits to non-licensees to the extent

6 permitted by any exemption approved by the State Commission

7 pursuant to Section 6-4 of this Act. A class 1 craft distiller

8 license holder may store such spirits at a non-contiguous

9 licensed location, but at no time shall a class 1 craft

10 distiller license holder directly or indirectly produce in the

11 aggregate more than 50,000 gallons of spirits per year.

12 A class 1 craft distiller licensee may hold more than one

13 class 1 craft distiller's license. However, a class 1 craft

14 distiller that holds more than one class 1 craft distiller

15 license shall not manufacture, in the aggregate, more than

16 50,000 gallons of spirits by distillation per year and shall

17 not sell, in the aggregate, more than 5,000 gallons of such

18 spirits to non-licensees in accordance with an exemption

19 approved by the State Commission pursuant to Section 6-4 of

20 this Act.

21 Class 11. A class 2 craft distiller license, which may

22 only be issued to a licensed craft distiller or licensed

23 non-resident dealer, shall allow the manufacture of up to

24 100,000 gallons of spirits per year provided that the class 2

25 craft distiller licensee does not manufacture more than a

26 combined 100,000 gallons of spirits per year and is not a

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1 member of or affiliated with, directly or indirectly, a

2 manufacturer that produces more than 100,000 gallons of

3 spirits per year. If a class 2 craft distiller manufactures

4 beer, it shall also obtain and shall only be eligible for, in

5 addition to any current license, a class 2 brewer license,

6 shall not manufacture more than 3,720,000 gallons of beer per

7 year, and shall not be a member of or affiliated with, directly

8 or indirectly, a manufacturer that produces more than

9 3,720,000 gallons of beer per year. If a class 2 craft

10 distiller manufactures wine, it shall also obtain and shall

11 only be eligible for, in addition to any current license, a

12 second-class wine-maker's license, shall not manufacture more

13 than 150,000 gallons of wine per year, and shall not be a

14 member of or affiliated with, directly or indirectly, a

15 manufacturer that produces more than 150,000 gallons of wine

16 per year. A class 2 craft distiller licensee may make sales and

17 deliveries to importing distributors and distributors, but

18 shall not make sales or deliveries to any other licensee. If

19 the State Commission provides prior approval, a class 2 craft

20 distiller licensee may annually transfer up to 100,000 gallons

21 of spirits manufactured by that class 2 craft distiller

22 licensee to the premises of a licensed class 2 craft distiller

23 wholly owned and operated by the same licensee. A class 2 craft

24 distiller may transfer spirits to a distilling pub wholly

25 owned and operated by the class 2 craft distiller subject to

26 the following limitations and restrictions: (i) the transfer

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1 shall not annually exceed more than 5,000 gallons; (ii) the

2 annual amount transferred shall reduce the distilling pub's

3 annual permitted production limit; (iii) all spirits

4 transferred shall be subject to Article VIII of this Act; (iv)

5 a written record shall be maintained by the distiller and

6 distilling pub specifying the amount, date of delivery, and

7 receipt of the product by the distilling pub; and (v) the

8 distilling pub shall be located no farther than 80 miles from

9 the class 2 craft distiller's licensed location.

10 A class 2 craft distiller shall, prior to transferring

11 spirits to a distilling pub wholly owned by the class 2 craft

12 distiller, furnish a written notice to the State Commission of

13 intent to transfer spirits setting forth the name and address

14 of the distilling pub and shall annually submit to the State

15 Commission a verified report identifying the total gallons of

16 spirits transferred to the distilling pub wholly owned by the

17 class 2 craft distiller.

18 A class 2 craft distiller license holder may store such

19 spirits at a non-contiguous licensed location, but at no time

20 shall a class 2 craft distiller license holder directly or

21 indirectly produce in the aggregate more than 100,000 gallons

22 of spirits per year.

23 Class 12. A class 1 brewer license, which may only be

24 issued to a licensed brewer or licensed non-resident dealer,

25 shall allow the manufacture of up to 930,000 gallons of beer

26 per year provided that the class 1 brewer licensee does not

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1 manufacture more than a combined 930,000 gallons of beer per

2 year and is not a member of or affiliated with, directly or

3 indirectly, a manufacturer that produces more than 930,000

4 gallons of beer per year. If a class 1 brewer manufactures

5 spirits, it shall also obtain and shall only be eligible for,

6 in addition to any current license, a class 1 craft distiller

7 license, shall not manufacture more than 50,000 gallons of

8 spirits per year, and shall not be a member of or affiliated

9 with, directly or indirectly, a manufacturer that produces

10 more than 50,000 gallons of spirits per year. If a class 1

11 craft brewer manufactures wine, it shall also obtain and shall

12 only be eligible for, in addition to any current license, a

13 first-class wine-manufacturer license or a first-class

14 wine-maker's license, shall not manufacture more than 50,000

15 gallons of wine per year, and shall not be a member of or

16 affiliated with, directly or indirectly, a manufacturer that

17 produces more than 50,000 gallons of wine per year. A class 1

18 brewer licensee may make sales and deliveries to importing

19 distributors and distributors and to retail licensees in

20 accordance with the conditions set forth in paragraph (18) of

21 subsection (a) of Section 3-12 of this Act. If the State

22 Commission provides prior approval, a class 1 brewer may

23 annually transfer up to 930,000 gallons of beer manufactured

24 by that class 1 brewer to the premises of a licensed class 1

25 brewer wholly owned and operated by the same licensee.

26 Class 13. A class 2 brewer license, which may only be

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1 issued to a licensed brewer or licensed non-resident dealer,

2 shall allow the manufacture of up to 3,720,000 gallons of beer

3 per year provided that the class 2 brewer licensee does not

4 manufacture more than a combined 3,720,000 gallons of beer per

5 year and is not a member of or affiliated with, directly or

6 indirectly, a manufacturer that produces more than 3,720,000

7 gallons of beer per year. If a class 2 brewer manufactures

8 spirits, it shall also obtain and shall only be eligible for,

9 in addition to any current license, a class 2 craft distiller

10 license, shall not manufacture more than 100,000 gallons of

11 spirits per year, and shall not be a member of or affiliated

12 with, directly or indirectly, a manufacturer that produces

13 more than 100,000 gallons of spirits per year. If a class 2

14 craft distiller manufactures wine, it shall also obtain and

15 shall only be eligible for, in addition to any current

16 license, a second-class wine-maker's license, shall not

17 manufacture more than 150,000 gallons of wine per year, and

18 shall not be a member of or affiliated with, directly or

19 indirectly, a manufacturer that produces more than 150,000

20 gallons of wine a year. A class 2 brewer licensee may make

21 sales and deliveries to importing distributors and

22 distributors, but shall not make sales or deliveries to any

23 other licensee. If the State Commission provides prior

24 approval, a class 2 brewer licensee may annually transfer up

25 to 3,720,000 gallons of beer manufactured by that class 2

26 brewer licensee to the premises of a licensed class 2 brewer

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1 wholly owned and operated by the same licensee.

2 A class 2 brewer may transfer beer to a brew pub wholly

3 owned and operated by the class 2 brewer subject to the

4 following limitations and restrictions: (i) the transfer shall

5 not annually exceed more than 31,000 gallons; (ii) the annual

6 amount transferred shall reduce the brew pub's annual

7 permitted production limit; (iii) all beer transferred shall

8 be subject to Article VIII of this Act; (iv) a written record

9 shall be maintained by the brewer and brew pub specifying the

10 amount, date of delivery, and receipt of the product by the

11 brew pub; and (v) the brew pub shall be located no farther than

12 80 miles from the class 2 brewer's licensed location.

13 A class 2 brewer shall, prior to transferring beer to a

14 brew pub wholly owned by the class 2 brewer, furnish a written

15 notice to the State Commission of intent to transfer beer

16 setting forth the name and address of the brew pub and shall

17 annually submit to the State Commission a verified report

18 identifying the total gallons of beer transferred to the brew

19 pub wholly owned by the class 2 brewer.

20 Class 14. A class 3 brewer license, which may be issued to

21 a brewer or a non-resident dealer, shall allow the manufacture

22 of no more than 465,000 gallons of beer per year and no more

23 than 155,000 gallons at a single brewery premises, and shall

24 allow the sale of no more than 6,200 gallons of beer from each

25 in-state or out-of-state class 3 brewery premises, or 18,600

26 gallons in the aggregate, to retail licensees, class 1

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LRB103 38772 RPS 68909 b

1 brewers, class 2 brewers, and class 3 brewers as long as the

2 class 3 brewer licensee does not manufacture more than a

3 combined 465,000 gallons of beer per year and is not a member

4 of or affiliated with, directly or indirectly, a manufacturer

5 that produces more than 465,000 gallons of beer per year to

6 make sales to importing distributors, distributors, retail

7 licensees, brewers, class 1 brewers, class 2 brewers, and

8 class 3 brewers in accordance with the conditions set forth in

9 paragraph (20) of subsection (a) of Section 3-12. If the State

10 Commission provides prior approval, a class 3 brewer may

11 annually transfer up to 155,000 gallons of beer manufactured

12 by that class 3 brewer to the premises of a licensed class 3

13 brewer wholly owned and operated by the same licensee. A class

14 3 brewer shall manufacture beer at the brewer's class 3

15 designated licensed premises, and may sell beer as otherwise

16 provided in this Act.

17 (a-1) A manufacturer which is licensed in this State to

18 make sales or deliveries of alcoholic liquor to licensed

19 distributors or importing distributors and which enlists

20 agents, representatives, or individuals acting on its behalf

21 who contact licensed retailers on a regular and continual

22 basis in this State must register those agents,

23 representatives, or persons acting on its behalf with the

24 State Commission.

25 Registration of agents, representatives, or persons acting

26 on behalf of a manufacturer is fulfilled by submitting a form

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LRB103 38772 RPS 68909 b

1 to the Commission. The form shall be developed by the

2 Commission and shall include the name and address of the

3 applicant, the name and address of the manufacturer he or she

4 represents, the territory or areas assigned to sell to or

5 discuss pricing terms of alcoholic liquor, and any other

6 questions deemed appropriate and necessary. All statements in

7 the forms required to be made by law or by rule shall be deemed

8 material, and any person who knowingly misstates any material

9 fact under oath in an application is guilty of a Class B

10 misdemeanor. Fraud, misrepresentation, false statements,

11 misleading statements, evasions, or suppression of material

12 facts in the securing of a registration are grounds for

13 suspension or revocation of the registration. The State

14 Commission shall post a list of registered agents on the

15 Commission's website.

16 (b) A distributor's license shall allow (i) the wholesale

17 purchase and storage of alcoholic liquors and sale of

18 alcoholic liquors to licensees in this State and to persons

19 without the State, as may be permitted by law; (ii) the sale of

20 beer, cider, mead, or any combination thereof to brewers,

21 class 1 brewers, and class 2 brewers that, pursuant to

22 subsection (e) of Section 6-4 of this Act, sell beer, cider,

23 mead, or any combination thereof to non-licensees at their

24 breweries; (iii) the sale of vermouth to class 1 craft

25 distillers and class 2 craft distillers that, pursuant to

26 subsection (e) of Section 6-4 of this Act, sell spirits,

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LRB103 38772 RPS 68909 b

1 vermouth, or both spirits and vermouth to non-licensees at

2 their distilleries; or (iv) as otherwise provided in this Act.

3 No person licensed as a distributor shall be granted a

4 non-resident dealer's license.

5 (c) An importing distributor's license may be issued to

6 and held by those only who are duly licensed distributors,

7 upon the filing of an application by a duly licensed

8 distributor, with the Commission and the Commission shall,

9 without the payment of any fee, immediately issue such

10 importing distributor's license to the applicant, which shall

11 allow the importation of alcoholic liquor by the licensee into

12 this State from any point in the United States outside this

13 State, and the purchase of alcoholic liquor in barrels, casks

14 or other bulk containers and the bottling of such alcoholic

15 liquors before resale thereof, but all bottles or containers

16 so filled shall be sealed, labeled, stamped and otherwise made

17 to comply with all provisions, rules and regulations governing

18 manufacturers in the preparation and bottling of alcoholic

19 liquors. The importing distributor's license shall permit such

20 licensee to purchase alcoholic liquor from Illinois licensed

21 non-resident dealers and foreign importers only. No person

22 licensed as an importing distributor shall be granted a

23 non-resident dealer's license.

24 (d) A retailer's license shall allow the licensee to sell

25 and offer for sale at retail, only in the premises specified in

26 the license, alcoholic liquor for use or consumption, but not

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LRB103 38772 RPS 68909 b

1 for resale in any form. Except as provided in Section 6-16,

2 6-29, or 6-29.1, nothing in this Act shall deny, limit,

3 remove, or restrict the ability of a holder of a retailer's

4 license to transfer or ship alcoholic liquor to the purchaser

5 for use or consumption subject to any applicable local law or

6 ordinance. For the purposes of this Section, "shipping" means

7 the movement of alcoholic liquor from a licensed retailer to a

8 consumer via a common carrier. Except as provided in Section

9 6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,

10 remove, or restrict the ability of a holder of a retailer's

11 license to deliver alcoholic liquor to the purchaser for use

12 or consumption. The delivery shall be made only within 12

13 hours from the time the alcoholic liquor leaves the licensed

14 premises of the retailer for delivery. For the purposes of

15 this Section, "delivery" means the movement of alcoholic

16 liquor purchased from a licensed retailer to a consumer

17 through the following methods:

18 (1) delivery within licensed retailer's parking lot,

19 including curbside, for pickup by the consumer;

20 (2) delivery by an owner, officer, director,

21 shareholder, or employee of the licensed retailer; or

22 (3) delivery by a third-party contractor, independent

23 contractor, or agent with whom the licensed retailer has

24 contracted to make deliveries of alcoholic liquors.

25 Under subsection (1), (2), or (3), delivery shall not

26 include the use of common carriers.

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1 Any retail license issued to a manufacturer shall only

2 permit the manufacturer to sell beer at retail on the premises

3 actually occupied by the manufacturer. For the purpose of

4 further describing the type of business conducted at a retail

5 licensed premises, a retailer's licensee may be designated by

6 the State Commission as (i) an on premise consumption

7 retailer, (ii) an off premise sale retailer, or (iii) a

8 combined on premise consumption and off premise sale retailer.

9 Except for a municipality with a population of more than

10 1,000,000 inhabitants, a home rule unit may not regulate the

11 delivery of alcoholic liquor inconsistent with this

12 subsection. This paragraph is a limitation under subsection

13 (i) of Section 6 of Article VII of the Illinois Constitution on

14 the concurrent exercise by home rule units of powers and

15 functions exercised by the State. A non-home rule municipality

16 may not regulate the delivery of alcoholic liquor inconsistent

17 with this subsection.

18 Notwithstanding any other provision of this subsection

19 (d), a retail licensee may sell alcoholic liquors to a special

20 event retailer licensee for resale to the extent permitted

21 under subsection (e).

22 (e) A special event retailer's license (not-for-profit)

23 shall permit the licensee to purchase alcoholic liquors from

24 an Illinois licensed distributor (unless the licensee

25 purchases less than $500 of alcoholic liquors for the special

26 event, in which case the licensee may purchase the alcoholic

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1 liquors from a licensed retailer) and shall allow the licensee

2 to sell and offer for sale, at retail, alcoholic liquors for

3 use or consumption, but not for resale in any form and only at

4 the location and on the specific dates designated for the

5 special event in the license. An applicant for a special event

6 retailer license must (i) furnish with the application: (A) a

7 resale number issued under Section 2c of the Retailers'

8 Occupation Tax Act or evidence that the applicant is

9 registered under Section 2a of the Retailers' Occupation Tax

10 Act, (B) a current, valid exemption identification number

11 issued under Section 1g of the Retailers' Occupation Tax Act,

12 and a certification to the Commission that the purchase of

13 alcoholic liquors will be a tax-exempt purchase, or (C) a

14 statement that the applicant is not registered under Section

15 2a of the Retailers' Occupation Tax Act, does not hold a resale

16 number under Section 2c of the Retailers' Occupation Tax Act,

17 and does not hold an exemption number under Section 1g of the

18 Retailers' Occupation Tax Act, in which event the Commission

19 shall set forth on the special event retailer's license a

20 statement to that effect; (ii) submit with the application

21 proof satisfactory to the State Commission that the applicant

22 will provide dram shop liability insurance in the maximum

23 limits; and (iii) show proof satisfactory to the State

24 Commission that the applicant has obtained local authority

25 approval.

26 Nothing in this Act prohibits an Illinois licensed

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LRB103 38772 RPS 68909 b

1 distributor from offering credit or a refund for unused,

2 salable alcoholic liquors to a holder of a special event

3 retailer's license or the special event retailer's licensee

4 from accepting the credit or refund of alcoholic liquors at

5 the conclusion of the event specified in the license.

6 (f) A railroad license shall permit the licensee to import

7 alcoholic liquors into this State from any point in the United

8 States outside this State and to store such alcoholic liquors

9 in this State; to make wholesale purchases of alcoholic

10 liquors directly from manufacturers, foreign importers,

11 distributors and importing distributors from within or outside

12 this State; and to store such alcoholic liquors in this State;

13 provided that the above powers may be exercised only in

14 connection with the importation, purchase or storage of

15 alcoholic liquors to be sold or dispensed on a club, buffet,

16 lounge or dining car operated on an electric, gas or steam

17 railway in this State; and provided further, that railroad

18 licensees exercising the above powers shall be subject to all

19 provisions of Article VIII of this Act as applied to importing

20 distributors. A railroad license shall also permit the

21 licensee to sell or dispense alcoholic liquors on any club,

22 buffet, lounge or dining car operated on an electric, gas or

23 steam railway regularly operated by a common carrier in this

24 State, but shall not permit the sale for resale of any

25 alcoholic liquors to any licensee within this State. A license

26 shall be obtained for each car in which such sales are made.

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1 (g) A boat license shall allow the sale of alcoholic

2 liquor in individual drinks, on any passenger boat regularly

3 operated as a common carrier on navigable waters in this State

4 or on any riverboat operated under the Illinois Gambling Act,

5 which boat or riverboat maintains a public dining room or

6 restaurant thereon.

7 (h) A non-beverage user's license shall allow the licensee

8 to purchase alcoholic liquor from a licensed manufacturer or

9 importing distributor, without the imposition of any tax upon

10 the business of such licensed manufacturer or importing

11 distributor as to such alcoholic liquor to be used by such

12 licensee solely for the non-beverage purposes set forth in

13 subsection (a) of Section 8-1 of this Act, and such licenses

14 shall be divided and classified and shall permit the purchase,

15 possession and use of limited and stated quantities of

16 alcoholic liquor as follows:

17 Class 1, not to exceed .........................500 gallons

18 Class 2, not to exceed .......................1,000 gallons

19 Class 3, not to exceed .......................5,000 gallons

20 Class 4, not to exceed ......................10,000 gallons

21 Class 5, not to exceed ....................... 50,000 gallons

22 (i) A wine-maker's premises license shall allow a licensee

23 that concurrently holds a first-class wine-maker's license to

24 sell and offer for sale at retail in the premises specified in

25 such license not more than 50,000 gallons of the first-class

26 wine-maker's wine that is made at the first-class wine-maker's

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1 licensed premises per year for use or consumption, but not for

2 resale in any form. A wine-maker's premises license shall

3 allow a licensee who concurrently holds a second-class

4 wine-maker's license to sell and offer for sale at retail in

5 the premises specified in such license up to 100,000 gallons

6 of the second-class wine-maker's wine that is made at the

7 second-class wine-maker's licensed premises per year for use

8 or consumption but not for resale in any form. A first-class

9 wine-maker that concurrently holds a class 1 brewer license or

10 a class 1 craft distiller license shall not be eligible to hold

11 a wine-maker's premises license. A wine-maker's premises

12 license shall allow a licensee that concurrently holds a

13 first-class wine-maker's license or a second-class

14 wine-maker's license to sell and offer for sale at retail at

15 the premises specified in the wine-maker's premises license,

16 for use or consumption but not for resale in any form, any

17 beer, wine, and spirits purchased from a licensed distributor.

18 Upon approval from the State Commission, a wine-maker's

19 premises license shall allow the licensee to sell and offer

20 for sale at (i) the wine-maker's licensed premises and (ii) at

21 up to 2 additional locations for use and consumption and not

22 for resale. Each location shall require additional licensing

23 per location as specified in Section 5-3 of this Act. A

24 wine-maker's premises licensee shall secure liquor liability

25 insurance coverage in an amount at least equal to the maximum

26 liability amounts set forth in subsection (a) of Section 6-21

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1 of this Act.

2 (j) An airplane license shall permit the licensee to

3 import alcoholic liquors into this State from any point in the

4 United States outside this State and to store such alcoholic

5 liquors in this State; to make wholesale purchases of

6 alcoholic liquors directly from manufacturers, foreign

7 importers, distributors and importing distributors from within

8 or outside this State; and to store such alcoholic liquors in

9 this State; provided that the above powers may be exercised

10 only in connection with the importation, purchase or storage

11 of alcoholic liquors to be sold or dispensed on an airplane;

12 and provided further, that airplane licensees exercising the

13 above powers shall be subject to all provisions of Article

14 VIII of this Act as applied to importing distributors. An

15 airplane licensee shall also permit the sale or dispensing of

16 alcoholic liquors on any passenger airplane regularly operated

17 by a common carrier in this State, but shall not permit the

18 sale for resale of any alcoholic liquors to any licensee

19 within this State. A single airplane license shall be required

20 of an airline company if liquor service is provided on board

21 aircraft in this State. The annual fee for such license shall

22 be as determined in Section 5-3.

23 (k) A foreign importer's license shall permit such

24 licensee to purchase alcoholic liquor from Illinois licensed

25 non-resident dealers only, and to import alcoholic liquor

26 other than in bulk from any point outside the United States and

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1 to sell such alcoholic liquor to Illinois licensed importing

2 distributors and to no one else in Illinois; provided that (i)

3 the foreign importer registers with the State Commission every

4 brand of alcoholic liquor that it proposes to sell to Illinois

5 licensees during the license period, (ii) the foreign importer

6 complies with all of the provisions of Section 6-9 of this Act

7 with respect to registration of such Illinois licensees as may

8 be granted the right to sell such brands at wholesale, and

9 (iii) the foreign importer complies with the provisions of

10 Sections 6-5 and 6-6 of this Act to the same extent that these

11 provisions apply to manufacturers.

12 (l) (i) A broker's license shall be required of all

13 persons who solicit orders for, offer to sell or offer to

14 supply alcoholic liquor to retailers in the State of Illinois,

15 or who offer to retailers to ship or cause to be shipped or to

16 make contact with distillers, craft distillers, rectifiers,

17 brewers or manufacturers or any other party within or without

18 the State of Illinois in order that alcoholic liquors be

19 shipped to a distributor, importing distributor or foreign

20 importer, whether such solicitation or offer is consummated

21 within or without the State of Illinois.

22 No holder of a retailer's license issued by the Illinois

23 Liquor Control Commission shall purchase or receive any

24 alcoholic liquor, the order for which was solicited or offered

25 for sale to such retailer by a broker unless the broker is the

26 holder of a valid broker's license.

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1 The broker shall, upon the acceptance by a retailer of the

2 broker's solicitation of an order or offer to sell or supply or

3 deliver or have delivered alcoholic liquors, promptly forward

4 to the Illinois Liquor Control Commission a notification of

5 said transaction in such form as the Commission may by

6 regulations prescribe.

7 (ii) A broker's license shall be required of a person

8 within this State, other than a retail licensee, who, for a fee

9 or commission, promotes, solicits, or accepts orders for

10 alcoholic liquor, for use or consumption and not for resale,

11 to be shipped from this State and delivered to residents

12 outside of this State by an express company, common carrier,

13 or contract carrier. This Section does not apply to any person

14 who promotes, solicits, or accepts orders for wine as

15 specifically authorized in Section 6-29 of this Act.

16 A broker's license under this subsection (l) shall not

17 entitle the holder to buy or sell any alcoholic liquors for his

18 own account or to take or deliver title to such alcoholic

19 liquors.

20 This subsection (l) shall not apply to distributors,

21 employees of distributors, or employees of a manufacturer who

22 has registered the trademark, brand or name of the alcoholic

23 liquor pursuant to Section 6-9 of this Act, and who regularly

24 sells such alcoholic liquor in the State of Illinois only to

25 its registrants thereunder.

26 Any agent, representative, or person subject to

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1 registration pursuant to subsection (a-1) of this Section

2 shall not be eligible to receive a broker's license.

3 (m) A non-resident dealer's license shall permit such

4 licensee to ship into and warehouse alcoholic liquor into this

5 State from any point outside of this State, and to sell such

6 alcoholic liquor to Illinois licensed foreign importers and

7 importing distributors and to no one else in this State;

8 provided that (i) said non-resident dealer shall register with

9 the Illinois Liquor Control Commission each and every brand of

10 alcoholic liquor which it proposes to sell to Illinois

11 licensees during the license period, (ii) it shall comply with

12 all of the provisions of Section 6-9 hereof with respect to

13 registration of such Illinois licensees as may be granted the

14 right to sell such brands at wholesale by duly filing such

15 registration statement, thereby authorizing the non-resident

16 dealer to proceed to sell such brands at wholesale, and (iii)

17 the non-resident dealer shall comply with the provisions of

18 Sections 6-5 and 6-6 of this Act to the same extent that these

19 provisions apply to manufacturers. No person licensed as a

20 non-resident dealer shall be granted a distributor's or

21 importing distributor's license.

22 (n) A brew pub license shall allow the licensee to only (i)

23 manufacture up to 155,000 gallons of beer per year only on the

24 premises specified in the license, (ii) make sales of the beer

25 manufactured on the premises or, with the approval of the

26 Commission, beer manufactured on another brew pub licensed

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1 premises that is wholly owned and operated by the same

2 licensee to importing distributors, distributors, and to

3 non-licensees for use and consumption, (iii) store the beer

4 upon the premises, (iv) sell and offer for sale at retail from

5 the licensed premises for off-premises consumption no more

6 than 155,000 gallons per year so long as such sales are only

7 made in-person, (v) sell and offer for sale at retail for use

8 and consumption on the premises specified in the license any

9 form of alcoholic liquor purchased from a licensed distributor

10 or importing distributor, (vi) with the prior approval of the

11 Commission, annually transfer no more than 155,000 gallons of

12 beer manufactured on the premises to a licensed brew pub

13 wholly owned and operated by the same licensee, and (vii)

14 notwithstanding item (i) of this subsection, brew pubs wholly

15 owned and operated by the same licensee may combine each

16 location's production limit of 155,000 gallons of beer per

17 year and allocate the aggregate total between the wholly

18 owned, operated, and licensed locations.

19 A brew pub licensee shall not under any circumstance sell

20 or offer for sale beer manufactured by the brew pub licensee to

21 retail licensees.

22 A person who holds a class 2 brewer license may

23 simultaneously hold a brew pub license if the class 2 brewer

24 (i) does not, under any circumstance, sell or offer for sale

25 beer manufactured by the class 2 brewer to retail licensees;

26 (ii) does not hold more than 3 brew pub licenses in this State;

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1 (iii) does not manufacture more than a combined 3,720,000

2 gallons of beer per year, including the beer manufactured at

3 the brew pub; and (iv) is not a member of or affiliated with,

4 directly or indirectly, a manufacturer that produces more than

5 3,720,000 gallons of beer per year or any other alcoholic

6 liquor.

7 Notwithstanding any other provision of this Act, a

8 licensed brewer, class 2 brewer, or non-resident dealer who

9 before July 1, 2015 manufactured less than 3,720,000 gallons

10 of beer per year and held a brew pub license on or before July

11 1, 2015 may (i) continue to qualify for and hold that brew pub

12 license for the licensed premises and (ii) manufacture more

13 than 3,720,000 gallons of beer per year and continue to

14 qualify for and hold that brew pub license if that brewer,

15 class 2 brewer, or non-resident dealer does not simultaneously

16 hold a class 1 brewer license and is not a member of or

17 affiliated with, directly or indirectly, a manufacturer that

18 produces more than 3,720,000 gallons of beer per year or that

19 produces any other alcoholic liquor.

20 A brew pub licensee may apply for a class 3 brewer license

21 and, upon meeting all applicable qualifications of this Act

22 and relinquishing all commonly owned brew pub or retail

23 licenses, shall be issued a class 3 brewer license. Nothing in

24 this Act shall prohibit the issuance of a class 3 brewer

25 license if the applicant:

26 (1) has a valid retail license on or before May 1,

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1 2021;

2 (2) has an ownership interest in at least two brew

3 pubs licenses on or before May 1, 2021;

4 (3) the brew pub licensee applies for a class 3 brewer

5 license on or before October 1, 2022 and relinquishes all

6 commonly owned brew pub licenses; and

7 (4) relinquishes all commonly owned retail licenses on

8 or before December 31, 2022.

9 If a brew pub licensee is issued a class 3 brewer license,

10 the class 3 brewer license shall expire on the same date as the

11 existing brew pub license and the State Commission shall not

12 require a class 3 brewer licensee to obtain a brewer license,

13 or in the alternative to pay a fee for a brewer license, until

14 the date the brew pub license of the applicant would have

15 expired.

16 (o) A caterer retailer license shall allow the holder to

17 serve alcoholic liquors as an incidental part of a food

18 service that serves prepared meals which excludes the serving

19 of snacks as the primary meal, either on or off-site whether

20 licensed or unlicensed. A caterer retailer license shall allow

21 the holder, a distributor, or an importing distributor to

22 transfer any inventory to and from the holder's retail

23 premises and shall allow the holder to purchase alcoholic

24 liquor from a distributor or importing distributor to be

25 delivered directly to an off-site event.

26 Nothing in this Act prohibits a distributor or importing

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1 distributor from offering credit or a refund for unused,

2 salable beer to a holder of a caterer retailer license or a

3 caterer retailer licensee from accepting a credit or refund

4 for unused, salable beer, in the event an act of God is the

5 sole reason an off-site event is cancelled and if: (i) the

6 holder of a caterer retailer license has not transferred

7 alcoholic liquor from its caterer retailer premises to an

8 off-site location; (ii) the distributor or importing

9 distributor offers the credit or refund for the unused,

10 salable beer that it delivered to the off-site premises and

11 not for any unused, salable beer that the distributor or

12 importing distributor delivered to the caterer retailer's

13 premises; and (iii) the unused, salable beer would likely

14 spoil if transferred to the caterer retailer's premises. A

15 caterer retailer license shall allow the holder to transfer

16 any inventory from any off-site location to its caterer

17 retailer premises at the conclusion of an off-site event or

18 engage a distributor or importing distributor to transfer any

19 inventory from any off-site location to its caterer retailer

20 premises at the conclusion of an off-site event, provided that

21 the distributor or importing distributor issues bona fide

22 charges to the caterer retailer licensee for fuel, labor, and

23 delivery and the distributor or importing distributor collects

24 payment from the caterer retailer licensee prior to the

25 distributor or importing distributor transferring inventory to

26 the caterer retailer premises.

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1 For purposes of this subsection (o), an "act of God" means

2 an unforeseeable event, such as a rain or snow storm, hail, a

3 flood, or a similar event, that is the sole cause of the

4 cancellation of an off-site, outdoor event.

5 (p) An auction liquor license shall allow the licensee to

6 sell and offer for sale at auction wine and spirits for use or

7 consumption, or for resale by an Illinois liquor licensee in

8 accordance with provisions of this Act. An auction liquor

9 license will be issued to a person and it will permit the

10 auction liquor licensee to hold the auction anywhere in the

11 State. An auction liquor license must be obtained for each

12 auction at least 14 days in advance of the auction date.

13 (q) A special use permit license shall allow an Illinois

14 licensed retailer to transfer a portion of its alcoholic

15 liquor inventory from its retail licensed premises to the

16 premises specified in the license hereby created; to purchase

17 alcoholic liquor from a distributor or importing distributor

18 to be delivered directly to the location specified in the

19 license hereby created; and to sell or offer for sale at

20 retail, only in the premises specified in the license hereby

21 created, the transferred or delivered alcoholic liquor for use

22 or consumption, but not for resale in any form. A special use

23 permit license may be granted for the following time periods:

24 one day or less; 2 or more days to a maximum of 15 days per

25 location in any 12-month period. An applicant for the special

26 use permit license must also submit with the application proof

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1 satisfactory to the State Commission that the applicant will

2 provide dram shop liability insurance to the maximum limits

3 and have local authority approval.

4 A special use permit license shall allow the holder to

5 transfer any inventory from the holder's special use premises

6 to its retail premises at the conclusion of the special use

7 event or engage a distributor or importing distributor to

8 transfer any inventory from the holder's special use premises

9 to its retail premises at the conclusion of an off-site event,

10 provided that the distributor or importing distributor issues

11 bona fide charges to the special use permit licensee for fuel,

12 labor, and delivery and the distributor or importing

13 distributor collects payment from the retail licensee prior to

14 the distributor or importing distributor transferring

15 inventory to the retail premises.

16 Nothing in this Act prohibits a distributor or importing

17 distributor from offering credit or a refund for unused,

18 salable beer to a special use permit licensee or a special use

19 permit licensee from accepting a credit or refund for unused,

20 salable beer at the conclusion of the event specified in the

21 license if: (i) the holder of the special use permit license

22 has not transferred alcoholic liquor from its retail licensed

23 premises to the premises specified in the special use permit

24 license; (ii) the distributor or importing distributor offers

25 the credit or refund for the unused, salable beer that it

26 delivered to the premises specified in the special use permit

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1 license and not for any unused, salable beer that the

2 distributor or importing distributor delivered to the

3 retailer's premises; and (iii) the unused, salable beer would

4 likely spoil if transferred to the retailer premises.

5 (r) A winery shipper's license shall allow a person with a

6 first-class or second-class wine manufacturer's license, a

7 first-class or second-class wine-maker's license, or a limited

8 wine manufacturer's license or who is licensed to make wine

9 under the laws of another state to ship wine made by that

10 licensee directly to a resident of this State who is 21 years

11 of age or older for that resident's personal use and not for

12 resale. Prior to receiving a winery shipper's license, an

13 applicant for the license must provide the Commission with a

14 true copy of its current license in any state in which it is

15 licensed as a manufacturer of wine. An applicant for a winery

16 shipper's license must also complete an application form that

17 provides any other information the Commission deems necessary.

18 The application form shall include all addresses from which

19 the applicant for a winery shipper's license intends to ship

20 wine, including the name and address of any third party,

21 except for a common carrier, authorized to ship wine on behalf

22 of the manufacturer. The application form shall include an

23 acknowledgement consenting to the jurisdiction of the

24 Commission, the Illinois Department of Revenue, and the courts

25 of this State concerning the enforcement of this Act and any

26 related laws, rules, and regulations, including authorizing

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1 the Department of Revenue and the Commission to conduct audits

2 for the purpose of ensuring compliance with Public Act 95-634,

3 and an acknowledgement that the wine manufacturer is in

4 compliance with Section 6-2 of this Act. Any third party,

5 except for a common carrier, authorized to ship wine on behalf

6 of a first-class or second-class wine manufacturer's licensee,

7 a first-class or second-class wine-maker's licensee, a limited

8 wine manufacturer's licensee, or a person who is licensed to

9 make wine under the laws of another state shall also be

10 disclosed by the winery shipper's licensee, and a copy of the

11 written appointment of the third-party wine provider, except

12 for a common carrier, to the wine manufacturer shall be filed

13 with the State Commission as a supplement to the winery

14 shipper's license application or any renewal thereof. The

15 winery shipper's license holder shall affirm under penalty of

16 perjury, as part of the winery shipper's license application

17 or renewal, that he or she only ships wine, either directly or

18 indirectly through a third-party provider, from the licensee's

19 own production.

20 Except for a common carrier, a third-party provider

21 shipping wine on behalf of a winery shipper's license holder

22 is the agent of the winery shipper's license holder and, as

23 such, a winery shipper's license holder is responsible for the

24 acts and omissions of the third-party provider acting on

25 behalf of the license holder. A third-party provider, except

26 for a common carrier, that engages in shipping wine into

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LRB103 38772 RPS 68909 b

1 Illinois on behalf of a winery shipper's license holder shall

2 consent to the jurisdiction of the State Commission and the

3 State. Any third-party, except for a common carrier, holding

4 such an appointment shall, by February 1 of each calendar year

5 and upon request by the State Commission or the Department of

6 Revenue, file with the State Commission a statement detailing

7 each shipment made to an Illinois resident. The statement

8 shall include the name and address of the third-party provider

9 filing the statement, the time period covered by the

10 statement, and the following information:

11 (1) the name, address, and license number of the

12 winery shipper on whose behalf the shipment was made;

13 (2) the quantity of the products delivered; and

14 (3) the date and address of the shipment.

15 If the Department of Revenue or the State Commission requests

16 a statement under this paragraph, the third-party provider

17 must provide that statement no later than 30 days after the

18 request is made. Any books, records, supporting papers, and

19 documents containing information and data relating to a

20 statement under this paragraph shall be kept and preserved for

21 a period of 3 years, unless their destruction sooner is

22 authorized, in writing, by the Director of Revenue, and shall

23 be open and available to inspection by the Director of Revenue

24 or the State Commission or any duly authorized officer, agent,

25 or employee of the State Commission or the Department of

26 Revenue, at all times during business hours of the day. Any

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LRB103 38772 RPS 68909 b

1 person who violates any provision of this paragraph or any

2 rule of the State Commission for the administration and

3 enforcement of the provisions of this paragraph is guilty of a

4 Class C misdemeanor. In case of a continuing violation, each

5 day's continuance thereof shall be a separate and distinct

6 offense.

7 The State Commission shall adopt rules as soon as

8 practicable to implement the requirements of Public Act 99-904

9 and shall adopt rules prohibiting any such third-party

10 appointment of a third-party provider, except for a common

11 carrier, that has been deemed by the State Commission to have

12 violated the provisions of this Act with regard to any winery

13 shipper licensee.

14 A winery shipper licensee must pay to the Department of

15 Revenue the State liquor gallonage tax under Section 8-1 for

16 all wine that is sold by the licensee and shipped to a person

17 in this State. For the purposes of Section 8-1, a winery

18 shipper licensee shall be taxed in the same manner as a

19 manufacturer of wine. A licensee who is not otherwise required

20 to register under the Retailers' Occupation Tax Act must

21 register under the Use Tax Act to collect and remit use tax to

22 the Department of Revenue for all gallons of wine that are sold

23 by the licensee and shipped to persons in this State. If a

24 licensee fails to remit the tax imposed under this Act in

25 accordance with the provisions of Article VIII of this Act,

26 the winery shipper's license shall be revoked in accordance

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1 with the provisions of Article VII of this Act. If a licensee

2 fails to properly register and remit tax under the Use Tax Act

3 or the Retailers' Occupation Tax Act for all wine that is sold

4 by the winery shipper and shipped to persons in this State, the

5 winery shipper's license shall be revoked in accordance with

6 the provisions of Article VII of this Act.

7 A winery shipper licensee must collect, maintain, and

8 submit to the Commission on a semi-annual basis the total

9 number of cases per resident of wine shipped to residents of

10 this State. A winery shipper licensed under this subsection

11 (r) must comply with the requirements of Section 6-29 of this

12 Act.

13 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of

14 Section 3-12, the State Commission may receive, respond to,

15 and investigate any complaint and impose any of the remedies

16 specified in paragraph (1) of subsection (a) of Section 3-12.

17 As used in this subsection, "third-party provider" means

18 any entity that provides fulfillment house services, including

19 warehousing, packaging, distribution, order processing, or

20 shipment of wine, but not the sale of wine, on behalf of a

21 licensed winery shipper.

22 (s) A craft distiller tasting permit license shall allow

23 an Illinois licensed class 1 craft distiller or class 2 craft

24 distiller to transfer a portion of its alcoholic liquor

25 inventory from its class 1 craft distiller or class 2 craft

26 distiller licensed premises to the premises specified in the

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LRB103 38772 RPS 68909 b

1 license hereby created and to conduct a sampling, only in the

2 premises specified in the license hereby created, of the

3 transferred alcoholic liquor in accordance with subsection (c)

4 of Section 6-31 of this Act. The transferred alcoholic liquor

5 may not be sold or resold in any form. An applicant for the

6 craft distiller tasting permit license must also submit with

7 the application proof satisfactory to the State Commission

8 that the applicant will provide dram shop liability insurance

9 to the maximum limits and have local authority approval.

10 (t) A brewer warehouse permit may be issued to the holder

11 of a class 1 brewer license or a class 2 brewer license. If the

12 holder of the permit is a class 1 brewer licensee, the brewer

13 warehouse permit shall allow the holder to store or warehouse

14 up to 930,000 gallons of tax-determined beer manufactured by

15 the holder of the permit at the premises specified on the

16 permit. If the holder of the permit is a class 2 brewer

17 licensee, the brewer warehouse permit shall allow the holder

18 to store or warehouse up to 3,720,000 gallons of

19 tax-determined beer manufactured by the holder of the permit

20 at the premises specified on the permit. Sales to

21 non-licensees are prohibited at the premises specified in the

22 brewer warehouse permit.

23 (u) A distilling pub license shall allow the licensee to

24 only (i) manufacture up to 5,000 gallons of spirits per year

25 only on the premises specified in the license, (ii) make sales

26 of the spirits manufactured on the premises or, with the

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1 approval of the State Commission, spirits manufactured on

2 another distilling pub licensed premises that is wholly owned

3 and operated by the same licensee to importing distributors

4 and distributors and to non-licensees for use and consumption,

5 (iii) store the spirits upon the premises, (iv) sell and offer

6 for sale at retail from the licensed premises for off-premises

7 consumption no more than 5,000 gallons per year so long as such

8 sales are only made in-person, (v) sell and offer for sale at

9 retail for use and consumption on the premises specified in

10 the license any form of alcoholic liquor purchased from a

11 licensed distributor or importing distributor, and (vi) with

12 the prior approval of the State Commission, annually transfer

13 no more than 5,000 gallons of spirits manufactured on the

14 premises to a licensed distilling pub wholly owned and

15 operated by the same licensee.

16 A distilling pub licensee shall not under any circumstance

17 sell or offer for sale spirits manufactured by the distilling

18 pub licensee to retail licensees.

19 A person who holds a class 2 craft distiller license may

20 simultaneously hold a distilling pub license if the class 2

21 craft distiller (i) does not, under any circumstance, sell or

22 offer for sale spirits manufactured by the class 2 craft

23 distiller to retail licensees; (ii) does not hold more than 3

24 distilling pub licenses in this State; (iii) does not

25 manufacture more than a combined 100,000 gallons of spirits

26 per year, including the spirits manufactured at the distilling

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LRB103 38772 RPS 68909 b

1 pub; and (iv) is not a member of or affiliated with, directly

2 or indirectly, a manufacturer that produces more than 100,000

3 gallons of spirits per year or any other alcoholic liquor.

4 (v) A craft distiller warehouse permit may be issued to

5 the holder of a class 1 craft distiller or class 2 craft

6 distiller license. The craft distiller warehouse permit shall

7 allow the holder to store or warehouse up to 500,000 gallons of

8 spirits manufactured by the holder of the permit at the

9 premises specified on the permit. Sales to non-licensees are

10 prohibited at the premises specified in the craft distiller

11 warehouse permit.

12 (w) A beer showcase permit license shall allow an

13 Illinois-licensed distributor to transfer a portion of its

14 beer inventory from its licensed premises to the premises

15 specified in the beer showcase permit license, and, in the

16 case of a class 3 brewer, transfer only beer the class 3 brewer

17 manufactures from its licensed premises to the premises

18 specified in the beer showcase permit license; and to sell or

19 offer for sale at retail, only in the premises specified in the

20 beer showcase permit license, the transferred or delivered

21 beer for on or off premise consumption, but not for resale in

22 any form and to sell to non-licensees not more than 96 fluid

23 ounces of beer per person. A beer showcase permit license may

24 be granted for the following time periods: one day or less; or

25 2 or more days to a maximum of 15 days per location in any

26 12-month period. An applicant for a beer showcase permit

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1 license must also submit with the application proof

2 satisfactory to the State Commission that the applicant will

3 provide dram shop liability insurance to the maximum limits

4 and have local authority approval. The State Commission shall

5 require the beer showcase applicant to comply with Section

6 6-27.1.

7 (x) A distillery shipper's license shall allow a person

8 with an Illinois distiller license, a craft distiller license,

9 a class 1 craft distiller license, or a class 2 craft distiller

10 license or who is licensed to make spirits under the laws of

11 another state to ship spirits directly to a resident of this

12 State who is 21 years of age or older for that resident's

13 personal use and not for resale. Prior to receiving a

14 distillery shipper's license, an applicant for the license

15 must provide the State Commission with a true copy of its

16 current license in any state in which it is licensed as a

17 distiller. An applicant for a distillery shipper's license

18 must also complete an application form that provides any other

19 information the State Commission deems necessary. The

20 application form shall include an acknowledgement consenting

21 to the jurisdiction of the State Commission, the Illinois

22 Department of Revenue, and the courts of this State concerning

23 the enforcement of this Act and any related laws, rules, and

24 regulations, including authorizing the Illinois Department of

25 Revenue and the State Commission to conduct audits for the

26 purpose of ensuring compliance with this amendatory Act of the

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1 103rd General Assembly.

2 A distillery shipper's licensee must pay to the Illinois

3 Department of Revenue the State liquor gallonage tax under

4 Section 8-1 for all spirits that are sold by the licensee and

5 shipped to a person in this State. For the purposes of Section

6 8-1, an out-of-state distillery shipper's licensee shall be

7 taxed in the same manner as a manufacturer of spirits. A

8 licensee who is not otherwise required to register under the

9 Retailers' Occupation Tax Act must register under the Use Tax

10 Act to collect and remit use tax to the Illinois Department of

11 Revenue for all gallons of spirits that are sold by the

12 licensee and shipped to persons in this State. If a licensee

13 fails to remit the tax imposed under this Act in accordance

14 with the provisions of Article VIII of this Act, the

15 distillery shipper's license shall be revoked in accordance

16 with the provisions of Article VII of this Act. If a licensee

17 fails to properly register and remit tax under the Use Tax Act

18 or the Retailers' Occupation Tax Act for all spirits that is

19 sold by the distillery shipper and shipped to persons in this

20 State, the distillery shipper's license shall be revoked in

21 accordance with the provisions of Article VII of this Act.

22 A distillery shipper's licensee must collect, maintain,

23 and submit to the State Commission on a semi-annual basis the

24 total gallons of spirits per resident shipped to residents of

25 this State. A distillery shipper licensed under this

26 subsection must comply with the requirements of Section

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1 6-29.05 of this Act. Pursuant to paragraph (5.1) or (5.3) of

2 subsection (a) of Section 3-12, the State Commission may

3 receive, respond to, and investigate any complaint and impose

4 any of the remedies specified in paragraph (1) of subsection

5 (a) of Section 3-12.

6 Except as provided in Section 6-16, 6-29, or 6-29.05,

7 nothing in this Act shall deny, limit, remove, or restrict the

8 ability of a holder of a distilling pub license to transfer or

9 ship alcoholic liquor it produces to the purchaser for use or

10 consumption subject to any applicable local law or ordinance.

11 Except as provided in Section 6-16, 6-29, or 6-29.05, nothing

12 in this Act shall limit, remove, or restrict the ability of a

13 holder of a distilling pub license to deliver alcoholic liquor

14 to the purchaser for use or consumption. The delivery shall be

15 made only within 12 hours after the alcoholic liquor leaves

16 the licensed premises of the distilling pub for delivery.

17 For the purposes of this subsection, "delivery" means the

18 movement of alcoholic liquor purchased from a licensed

19 distilling pub to the consumer through the following methods:

20 (1) delivery within the licensed distilling pub

21 parking lot, including curbside, for pickup by the

22 consumer;

23 (2) delivery by an owner, officer, director,

24 shareholder, or employee of the licensed distilling pub;

25 or

26 (3) delivery by a third-party contractor, independent

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1 contractor, or agent with whom the licensed distilling pub

2 has contracted to make deliveries of alcoholic liquors.

3 Under paragraphs (1), (2), or (3) of this subsection,

4 "delivery" does not include common carriers.

5 For the purposes of this subsection, "ship" means to move

6 alcoholic liquor from a licensed distilling pub to a consumer

7 via a common carrier.

8 Except for a municipality with a population of more than

9 1,000,000 inhabitants, a home rule unit may not regulate the

10 delivery of alcoholic liquor in a manner inconsistent with

11 this subsection. This paragraph is a limitation under

12 subsection (i) of Section 6 of Article VII of the Illinois

13 Constitution on the concurrent exercise by home rule units of

14 powers and functions exercised by the State.

15 (Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19;

16 101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff.

17 8-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22;

18 102-442, eff. 8-20-21; 102-1142, eff. 2-17-23.)

19 (235 ILCS 5/5-3) (from Ch. 43, par. 118)

20 Sec. 5-3. License fees. Except as otherwise provided

21 herein, at the time application is made to the State

22 Commission for a license of any class, the applicant shall pay

23 to the State Commission the fee hereinafter provided for the

24 kind of license applied for.

25 The fee for licenses issued by the State Commission shall

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1 be as follows:

2	`Online`	`Initial`
3	`renewal`	`license`
4		`or`
5		`non-online`
6		`renewal`

7	`For a manufacturer's license:`
8	`Class 1. Distiller` .................	`$4,000`	`$5,000`
9	`Class 2. Rectifier` .................	`4,000`	`5,000`
10	`Class 3. Brewer` ....................	`1,200`	`1,500`
11	`Class 4. First-class Wine`
12	`Manufacturer` ...................	`750`	`900`
13	`Class 5. Second-class`
14	`Wine Manufacturer` ..............	`1,500`	`1,750`
15	`Class 6. First-class wine-maker` ....	`750`	`900`
16	`Class 7. Second-class wine-maker` ...	`1,500`	`1,750`
17	`Class 8. Limited Wine`
18	`Manufacturer`....................	`250`	`350`
19	`Class 9. Craft Distiller`............	`2,000`	`2,500`
20	`Class 10. Class 1 Craft Distiller`...	`50`	`75`
21	`Class 11. Class 2 Craft Distiller`...	`75`	`100`
22	`Class 12. Class 1 Brewer`............	`50`	`75`
23	`Class 13. Class 2 Brewer`............	`75`	`100`
24	`Class 14. Class 3 Brewer`............	`25`	`50`
25	`For a Brew Pub License`..............	`1,200`	`1,500`
26	`For a Distilling Pub License`........	`1,200`	`1,500`

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1	`For a caterer retailer's license`....	`350`	`500`
2	`For a foreign importer's license` ...	`25`	`25`
3	`For an importing distributor's`
4	`license`.........................	`25`	`25`
5	`For a distributor's license`
6	`(11,250,000 gallons`
7	`or over)`........................	`1,450`	`2,200`
8	`For a distributor's license`
9	`(over 4,500,000 gallons, but`
10	`under 11,250,000 gallons)`.......	`950`	`1,450`
11	`For a distributor's license`
12	`(4,500,000 gallons or under)`....	`300`	`450`
13	`For a non-resident dealer's license`
14	`(500,000 gallons or over)`
15	`or with self-distribution`
16	`privileges` .....................	`1,200`	`1,500`
17	`For a non-resident dealer's license`
18	`(under 500,000 gallons)` ........	`250`	`350`
19	`For a wine-maker's premises`
20	`license` ........................	`250`	`500`
21	`For a winery shipper's license`
22	`(under 250,000 gallons)`.........	`200`	`350`
23	`For a winery shipper's license`
24	`(250,000 or over, but`
25	`under 500,000 gallons)`..........	`750`	`1,000`
26	`For a winery shipper's license`

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1	`(500,000 gallons or over)`.......	`1,200`	`1,500`
2	`For a distillery shipper's license`
3	`(under 100,000 gallons)`.	`200`	`350`
4	`For a distillery shipper's license`
5	`(100,000 gallons or over)`.	`1,200`	`1,500`
6	`For a wine-maker's premises`
7	`license, second location` .......	`500`	`1,000`
8	`For a wine-maker's premises`
9	`license, third location` ........	`500`	`1,000`
10	`For a retailer's license` ...........	`600`	`750`
11	`For a special event retailer's`
12	`license, (not-for-profit)` ......	`25`	`25`
13	`For a beer showcase permit,`
14	`one day only` ...................	`100`	`150`
15	`2 days or more` .................	`150`	`250`
16	`For a special use permit license,`
17	`one day only` ...................	`100`	`150`
18	`2 days or more` .................	`150`	`250`
19	`For a railroad license` .............	`100`	`150`
20	`For a boat license` .................	`500`	`1,000`
21	`For an airplane license, times the`
22	`licensee's maximum number of`
23	`aircraft in flight, serving`
24	`liquor over the State at any`
25	`given time, which either`
26	`originate, terminate, or make`

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1	`an intermediate stop in`
2	`the State`.......................	`100`	`150`
3	`For a non-beverage user's license:`
4	`Class 1` ........................	`24`	`24`
5	`Class 2` ........................	`60`	`60`
6	`Class 3` ........................	`120`	`120`
7	`Class 4` ........................	`240`	`240`
8	`Class 5` ........................	`600`	`600`
9	`For a broker's license` .............	`750`	`1,000`
10	`For an auction liquor license` ......	`100`	`150`
11	`For a homebrewer special`
12	`event permit`....................	`25`	`25`
13	`For a craft distiller`
14	`tasting permit`..................	`25`	`25`
15	`For a BASSET trainer license`........	`300`	`350`
16	`For a tasting representative`
17	`license`.........................	`200`	`300`
18	`For a brewer warehouse permit`.......	`25`	`25`
19	`For a craft distiller`
20	`warehouse permit`................	`25`	`25`

21 Fees collected under this Section shall be paid into the

22 Dram Shop Fund. The State Commission shall waive license

23 renewal fees for those retailers' licenses that are designated

24 as "1A" by the State Commission and expire on or after July 1,

25 2022, and on or before June 30, 2023. One-half of the funds

26 received for a retailer's license shall be paid into the Dram

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1 Shop Fund and one-half of the funds received for a retailer's

2 license shall be paid into the General Revenue Fund.

3 No fee shall be paid for licenses issued by the State

4 Commission to the following non-beverage users:

5 (a) Hospitals, sanitariums, or clinics when their use

6 of alcoholic liquor is exclusively medicinal, mechanical,

7 or scientific.

8 (b) Universities, colleges of learning, or schools

9 when their use of alcoholic liquor is exclusively

10 medicinal, mechanical, or scientific.

11 (c) Laboratories when their use is exclusively for the

12 purpose of scientific research.

13 (Source: P.A. 102-442, eff. 8-20-21; 102-558, eff. 8-20-21;

14 102-699, eff. 4-19-22; 102-1142, eff. 2-17-23; 103-154, eff.

15 6-30-23; revised 9-5-23.)

16 (235 ILCS 5/6-29.05 new)

17 Sec. 6-29.05. Distillery shipper's license.

18 (a) The General Assembly declares that the following is

19 the intent of this Section:

20 (1) To authorize direct shipment of spirits by an

21 out-of-state distiller on the same basis permitted an

22 in-state distiller, an in-state craft distiller, an

23 in-state class 1 craft distiller, and an in-state class 2

24 craft distiller pursuant to the authority of the State

25 under the provisions of Section 2 of the Twenty-First

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1 Amendment to the United States Constitution and in

2 conformance with the United States Supreme Court decision

3 decided on May 16, 2005 in Granholm v. Heald.

4 (2) To reaffirm that the General Assembly's findings

5 and declarations that selling alcoholic liquor through

6 various direct marketing means, such as catalogs,

7 newspapers, mailings, and the Internet, directly to

8 consumers of this State poses a serious threat to the

9 State's efforts to further temperance and prevent youth

10 from accessing alcoholic liquor and the expansion of youth

11 access to additional types of alcoholic liquors.

12 (3) To maintain the State's broad powers granted by

13 Section 2 of the Twenty-First Amendment to the United

14 States Constitution to control the importation or sale of

15 alcoholic liquor and its right to structure its alcoholic

16 liquor distribution system.

17 (4) To ensure that the General Assembly, by

18 authorizing limited direct shipment of spirits to meet the

19 directives of the United States Supreme Court, does not

20 intend to impair or modify the State's distribution of

21 spirits through distributors or importing distributors,

22 but only to permit limited shipment of spirits for

23 personal use.

24 (5) To provide that if a court of competent

25 jurisdiction declares or finds that this Section, which is

26 enacted to conform Illinois law to the United States

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1 Supreme Court decision, is invalid or unconstitutional,

2 the Illinois General Assembly at its earliest general

3 session shall conduct hearings and study methods to

4 conform to any directive or order of the court consistent

5 with the temperance and revenue collection purposes of

6 this Act.

7 (b) Notwithstanding any other provision of law, a

8 distillery shipper's licensee may ship, for personal use and

9 not for resale, not more than 12 cases of spirits per year to

10 any resident of this State who is 21 years of age or older.

11 (c) Notwithstanding any other provision of law, sale and

12 shipment by a distillery shipper's licensee pursuant to this

13 Section shall be deemed to constitute a sale in this State.

14 (d) The shipping container of any spirit shipped under

15 this Section shall be clearly labeled with the following

16 words: "CONTAINS ALCOHOL. SIGNATURE OF A PERSON 21 YEARS OF

17 AGE OR OLDER REQUIRED FOR DELIVERY. PROOF OF AGE AND IDENTITY

18 MUST BE SHOWN BEFORE DELIVERY.". This warning must be

19 prominently displayed on the packaging. A licensee shall

20 require the transporter or common carrier that delivers the

21 spirits to obtain the signature of a person 21 years of age or

22 older at the delivery address at the time of delivery. At the

23 expense of the licensee, the licensee shall receive a delivery

24 confirmation from the express company, common carrier, or

25 contract carrier indicating the location of the delivery, time

26 of delivery, and the name and signature of the individual 21

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