Bill Amendment: IL SB2989 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: LIQUOR-TRANSPORT OF ALCOHOL

Status: 2016-08-26 - Public Act . . . . . . . . . 99-0904 [SB2989 Detail]

Download: Illinois-2015-SB2989-Senate_Amendment_002.html

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Sen. James F. Clayborne, Jr.

Filed: 4/15/2016

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AMENDMENT TO SENATE BILL 2989
AMENDMENT NO. ______. Amend Senate Bill 2989 by replacing
everything after the enacting clause with the following:
"Section 5. The Liquor Control Act of 1934 is amended by
changing Sections 5-1, 6-16, 6-29.1, and 10-1 as follows:
(235 ILCS 5/5-1) (from Ch. 43, par. 115)
Sec. 5-1. Licenses issued by the Illinois Liquor Control
Commission shall be of the following classes:
(a) Manufacturer's license - Class 1. Distiller, Class 2.
Rectifier, Class 3. Brewer, Class 4. First Class Wine
Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
First Class Winemaker, Class 7. Second Class Winemaker, Class
8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
10. Class 1 Brewer, Class 11. Class 2 Brewer,
(b) Distributor's license,
(c) Importing Distributor's license,

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(d) Retailer's license,
(e) Special Event Retailer's license (not-for-profit),
(f) Railroad license,
(g) Boat license,
(h) Non-Beverage User's license,
(i) Wine-maker's premises license,
(j) Airplane license,
(k) Foreign importer's license,
(l) Broker's license,
(m) Non-resident dealer's license,
(n) Brew Pub license,
(o) Auction liquor license,
(p) Caterer retailer license,
(q) Special use permit license,
(r) Winery shipper's license.
No person, firm, partnership, corporation, or other legal
business entity that is engaged in the manufacturing of wine
may concurrently obtain and hold a wine-maker's license and a
wine manufacturer's license.
(a) A manufacturer's license shall allow the manufacture,
importation in bulk, storage, distribution and sale of
alcoholic liquor to persons without the State, as may be
permitted by law and to licensees in this State as follows:
Class 1. A Distiller may make sales and deliveries of
alcoholic liquor to distillers, rectifiers, importing
distributors, distributors and non-beverage users and to no

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other licensees.
Class 2. A Rectifier, who is not a distiller, as defined
herein, may make sales and deliveries of alcoholic liquor to
rectifiers, importing distributors, distributors, retailers
and non-beverage users and to no other licensees.
Class 3. A Brewer may make sales and deliveries of beer to
importing distributors and distributors and may make sales as
authorized under subsection (e) of Section 6-4 of this Act.
Class 4. A first class wine-manufacturer may make sales and
deliveries of up to 50,000 gallons of wine to manufacturers,
importing distributors and distributors, and to no other
licensees.
Class 5. A second class Wine manufacturer may make sales
and deliveries of more than 50,000 gallons of wine to
manufacturers, importing distributors and distributors and to
no other licensees.
Class 6. A first-class wine-maker's license shall allow the
manufacture of up to 50,000 gallons of wine per year, and the
storage and sale of such wine to distributors in the State and
to persons without the State, as may be permitted by law. A
person who, prior to June 1, 2008 (the effective date of Public
Act 95-634) this amendatory Act of the 95th General Assembly,
is a holder of a first-class wine-maker's license and annually
produces more than 25,000 gallons of its own wine and who
distributes its wine to licensed retailers shall cease this
practice on or before July 1, 2008 in compliance with Public

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Act 95-634 this amendatory Act of the 95th General Assembly.
Class 7. A second-class wine-maker's license shall allow
the manufacture of between 50,000 and 150,000 gallons of wine
per year, and the storage and sale of such wine to distributors
in this State and to persons without the State, as may be
permitted by law. A person who, prior to June 1, 2008 (the
effective date of Public Act 95-634) this amendatory Act of the
95th General Assembly, is a holder of a second-class
wine-maker's license and annually produces more than 25,000
gallons of its own wine and who distributes its wine to
licensed retailers shall cease this practice on or before July
1, 2008 in compliance with Public Act 95-634 this amendatory
Act of the 95th General Assembly.
Class 8. A limited wine-manufacturer may make sales and
deliveries not to exceed 40,000 gallons of wine per year to
distributors, and to non-licensees in accordance with the
provisions of this Act.
Class 9. A craft distiller license shall allow the
manufacture of up to 30,000 gallons of spirits by distillation
for one year after March 1, 2013 (the effective date of Public
Act 97-1166) this amendatory Act of the 97th General Assembly
and up to 35,000 gallons of spirits by distillation per year
thereafter and the storage of such spirits. If a craft
distiller licensee is not affiliated with any other
manufacturer, then the craft distiller licensee may sell such
spirits to distributors in this State and up to 2,500 gallons

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of such spirits to non-licensees to the extent permitted by any
exemption approved by the Commission pursuant to Section 6-4 of
this Act.
Any craft distiller licensed under this Act who on July 28,
2010 (the effective date of Public Act 96-1367) this amendatory
Act of the 96th General Assembly was licensed as a distiller
and manufactured no more spirits than permitted by this Section
shall not be required to pay the initial licensing fee.
Class 10. A class 1 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 930,000 gallons of beer
per year provided that the class 1 brewer licensee does not
manufacture more than a combined 930,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 930,000
gallons of beer per year or any other alcoholic liquor. A class
1 brewer licensee may make sales and deliveries to importing
distributors and distributors and to retail licensees in
accordance with the conditions set forth in paragraph (18) of
subsection (a) of Section 3-12 of this Act.
Class 11. A class 2 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 3,720,000 gallons of beer
per year provided that the class 2 brewer licensee does not
manufacture more than a combined 3,720,000 gallons of beer per
year and is not a member of or affiliated with, directly or

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indirectly, a manufacturer that produces more than 3,720,000
gallons of beer per year or any other alcoholic liquor. A class
2 brewer licensee may make sales and deliveries to importing
distributors and distributors, but shall not make sales or
deliveries to any other licensee. If the State Commission
provides prior approval, a class 2 brewer licensee may annually
transfer up to 3,720,000 gallons of beer manufactured by that
class 2 brewer licensee to the premises of a licensed class 2
brewer wholly owned and operated by the same licensee.
(a-1) A manufacturer which is licensed in this State to
make sales or deliveries of alcoholic liquor to licensed
distributors or importing distributors and which enlists
agents, representatives, or individuals acting on its behalf
who contact licensed retailers on a regular and continual basis
in this State must register those agents, representatives, or
persons acting on its behalf with the State Commission.
Registration of agents, representatives, or persons acting
on behalf of a manufacturer is fulfilled by submitting a form
to the Commission. The form shall be developed by the
Commission and shall include the name and address of the
applicant, the name and address of the manufacturer he or she
represents, the territory or areas assigned to sell to or
discuss pricing terms of alcoholic liquor, and any other
questions deemed appropriate and necessary. All statements in
the forms required to be made by law or by rule shall be deemed
material, and any person who knowingly misstates any material

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fact under oath in an application is guilty of a Class B
misdemeanor. Fraud, misrepresentation, false statements,
misleading statements, evasions, or suppression of material
facts in the securing of a registration are grounds for
suspension or revocation of the registration. The State
Commission shall post a list of registered agents on the
Commission's website.
(b) A distributor's license shall allow the wholesale
purchase and storage of alcoholic liquors and sale of alcoholic
liquors to licensees in this State and to persons without the
State, as may be permitted by law.
(c) An importing distributor's license may be issued to and
held by those only who are duly licensed distributors, upon the
filing of an application by a duly licensed distributor, with
the Commission and the Commission shall, without the payment of
any fee, immediately issue such importing distributor's
license to the applicant, which shall allow the importation of
alcoholic liquor by the licensee into this State from any point
in the United States outside this State, and the purchase of
alcoholic liquor in barrels, casks or other bulk containers and
the bottling of such alcoholic liquors before resale thereof,
but all bottles or containers so filled shall be sealed,
labeled, stamped and otherwise made to comply with all
provisions, rules and regulations governing manufacturers in
the preparation and bottling of alcoholic liquors. The
importing distributor's license shall permit such licensee to

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purchase alcoholic liquor from Illinois licensed non-resident
dealers and foreign importers only.
(d) A retailer's license shall allow the licensee to sell
and offer for sale at retail, only in the premises specified in
the license, alcoholic liquor for use or consumption, but not
for resale in any form. Nothing in Public Act 95-634 this
amendatory Act of the 95th General Assembly shall deny, limit,
remove, or restrict the ability of a holder of a retailer's
license to transfer, deliver, or ship alcoholic liquor to the
purchaser for use or consumption subject to any applicable
local law or ordinance. Any retail license issued to a
manufacturer shall only permit the manufacturer to sell beer at
retail on the premises actually occupied by the manufacturer.
For the purpose of further describing the type of business
conducted at a retail licensed premises, a retailer's licensee
may be designated by the State Commission as (i) an on premise
consumption retailer, (ii) an off premise sale retailer, or
(iii) a combined on premise consumption and off premise sale
retailer.
Notwithstanding any other provision of this subsection
(d), a retail licensee may sell alcoholic liquors to a special
event retailer licensee for resale to the extent permitted
under subsection (e).
(e) A special event retailer's license (not-for-profit)
shall permit the licensee to purchase alcoholic liquors from an
Illinois licensed distributor (unless the licensee purchases

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less than $500 of alcoholic liquors for the special event, in
which case the licensee may purchase the alcoholic liquors from
a licensed retailer) and shall allow the licensee to sell and
offer for sale, at retail, alcoholic liquors for use or
consumption, but not for resale in any form and only at the
location and on the specific dates designated for the special
event in the license. An applicant for a special event retailer
license must (i) furnish with the application: (A) a resale
number issued under Section 2c of the Retailers' Occupation Tax
Act or evidence that the applicant is registered under Section
2a of the Retailers' Occupation Tax Act, (B) a current, valid
exemption identification number issued under Section 1g of the
Retailers' Occupation Tax Act, and a certification to the
Commission that the purchase of alcoholic liquors will be a
tax-exempt purchase, or (C) a statement that the applicant is
not registered under Section 2a of the Retailers' Occupation
Tax Act, does not hold a resale number under Section 2c of the
Retailers' Occupation Tax Act, and does not hold an exemption
number under Section 1g of the Retailers' Occupation Tax Act,
in which event the Commission shall set forth on the special
event retailer's license a statement to that effect; (ii)
submit with the application proof satisfactory to the State
Commission that the applicant will provide dram shop liability
insurance in the maximum limits; and (iii) show proof
satisfactory to the State Commission that the applicant has
obtained local authority approval.

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(f) A railroad license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on a club, buffet, lounge or dining car
operated on an electric, gas or steam railway in this State;
and provided further, that railroad licensees exercising the
above powers shall be subject to all provisions of Article VIII
of this Act as applied to importing distributors. A railroad
license shall also permit the licensee to sell or dispense
alcoholic liquors on any club, buffet, lounge or dining car
operated on an electric, gas or steam railway regularly
operated by a common carrier in this State, but shall not
permit the sale for resale of any alcoholic liquors to any
licensee within this State. A license shall be obtained for
each car in which such sales are made.
(g) A boat license shall allow the sale of alcoholic liquor
in individual drinks, on any passenger boat regularly operated
as a common carrier on navigable waters in this State or on any
riverboat operated under the Riverboat Gambling Act, which boat
or riverboat maintains a public dining room or restaurant

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thereon.
(h) A non-beverage user's license shall allow the licensee
to purchase alcoholic liquor from a licensed manufacturer or
importing distributor, without the imposition of any tax upon
the business of such licensed manufacturer or importing
distributor as to such alcoholic liquor to be used by such
licensee solely for the non-beverage purposes set forth in
subsection (a) of Section 8-1 of this Act, and such licenses
shall be divided and classified and shall permit the purchase,
possession and use of limited and stated quantities of
alcoholic liquor as follows:
Class 1, not to exceed ......................... 500 gallons
Class 2, not to exceed ....................... 1,000 gallons
Class 3, not to exceed ....................... 5,000 gallons
Class 4, not to exceed ...................... 10,000 gallons
Class 5, not to exceed ....................... 50,000 gallons
(i) A wine-maker's premises license shall allow a licensee
that concurrently holds a first-class wine-maker's license to
sell and offer for sale at retail in the premises specified in
such license not more than 50,000 gallons of the first-class
wine-maker's wine that is made at the first-class wine-maker's
licensed premises per year for use or consumption, but not for
resale in any form. A wine-maker's premises license shall allow
a licensee who concurrently holds a second-class wine-maker's
license to sell and offer for sale at retail in the premises
specified in such license up to 100,000 gallons of the

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second-class wine-maker's wine that is made at the second-class
wine-maker's licensed premises per year for use or consumption
but not for resale in any form. A wine-maker's premises license
shall allow a licensee that concurrently holds a first-class
wine-maker's license or a second-class wine-maker's license to
sell and offer for sale at retail at the premises specified in
the wine-maker's premises license, for use or consumption but
not for resale in any form, any beer, wine, and spirits
purchased from a licensed distributor. Upon approval from the
State Commission, a wine-maker's premises license shall allow
the licensee to sell and offer for sale at (i) the wine-maker's
licensed premises and (ii) at up to 2 additional locations for
use and consumption and not for resale. Each location shall
require additional licensing per location as specified in
Section 5-3 of this Act. A wine-maker's premises licensee shall
secure liquor liability insurance coverage in an amount at
least equal to the maximum liability amounts set forth in
subsection (a) of Section 6-21 of this Act.
(j) An airplane license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with

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the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on an airplane; and provided further, that
airplane licensees exercising the above powers shall be subject
to all provisions of Article VIII of this Act as applied to
importing distributors. An airplane licensee shall also permit
the sale or dispensing of alcoholic liquors on any passenger
airplane regularly operated by a common carrier in this State,
but shall not permit the sale for resale of any alcoholic
liquors to any licensee within this State. A single airplane
license shall be required of an airline company if liquor
service is provided on board aircraft in this State. The annual
fee for such license shall be as determined in Section 5-3.
(k) A foreign importer's license shall permit such licensee
to purchase alcoholic liquor from Illinois licensed
non-resident dealers only, and to import alcoholic liquor other
than in bulk from any point outside the United States and to
sell such alcoholic liquor to Illinois licensed importing
distributors and to no one else in Illinois; provided that (i)
the foreign importer registers with the State Commission every
brand of alcoholic liquor that it proposes to sell to Illinois
licensees during the license period, (ii) the foreign importer
complies with all of the provisions of Section 6-9 of this Act
with respect to registration of such Illinois licensees as may
be granted the right to sell such brands at wholesale, and
(iii) the foreign importer complies with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these

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provisions apply to manufacturers.
(l) (i) A broker's license shall be required of all persons
who solicit orders for, offer to sell or offer to supply
alcoholic liquor to retailers in the State of Illinois, or who
offer to retailers to ship or cause to be shipped or to make
contact with distillers, rectifiers, brewers or manufacturers
or any other party within or without the State of Illinois in
order that alcoholic liquors be shipped to a distributor,
importing distributor or foreign importer, whether such
solicitation or offer is consummated within or without the
State of Illinois.
No holder of a retailer's license issued by the Illinois
Liquor Control Commission shall purchase or receive any
alcoholic liquor, the order for which was solicited or offered
for sale to such retailer by a broker unless the broker is the
holder of a valid broker's license.
The broker shall, upon the acceptance by a retailer of the
broker's solicitation of an order or offer to sell or supply or
deliver or have delivered alcoholic liquors, promptly forward
to the Illinois Liquor Control Commission a notification of
said transaction in such form as the Commission may by
regulations prescribe.
(ii) A broker's license shall be required of a person
within this State, other than a retail licensee, who, for a fee
or commission, promotes, solicits, or accepts orders for
alcoholic liquor, for use or consumption and not for resale, to

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be shipped from this State and delivered to residents outside
of this State by an express company, common carrier, or
contract carrier. This Section does not apply to any person who
promotes, solicits, or accepts orders for wine as specifically
authorized in Section 6-29 of this Act.
A broker's license under this subsection (l) shall not
entitle the holder to buy or sell any alcoholic liquors for his
own account or to take or deliver title to such alcoholic
liquors.
This subsection (l) shall not apply to distributors,
employees of distributors, or employees of a manufacturer who
has registered the trademark, brand or name of the alcoholic
liquor pursuant to Section 6-9 of this Act, and who regularly
sells such alcoholic liquor in the State of Illinois only to
its registrants thereunder.
Any agent, representative, or person subject to
registration pursuant to subsection (a-1) of this Section shall
not be eligible to receive a broker's license.
(m) A non-resident dealer's license shall permit such
licensee to ship into and warehouse alcoholic liquor into this
State from any point outside of this State, and to sell such
alcoholic liquor to Illinois licensed foreign importers and
importing distributors and to no one else in this State;
provided that (i) said non-resident dealer shall register with
the Illinois Liquor Control Commission each and every brand of
alcoholic liquor which it proposes to sell to Illinois

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licensees during the license period, (ii) it shall comply with
all of the provisions of Section 6-9 hereof with respect to
registration of such Illinois licensees as may be granted the
right to sell such brands at wholesale, and (iii) the
non-resident dealer shall comply with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers.
(n) A brew pub license shall allow the licensee to only (i)
manufacture up to 155,000 gallons of beer per year only on the
premises specified in the license, (ii) make sales of the beer
manufactured on the premises or, with the approval of the
Commission, beer manufactured on another brew pub licensed
premises that is wholly owned and operated by the same licensee
to importing distributors, distributors, and to non-licensees
for use and consumption, (iii) store the beer upon the
premises, (iv) sell and offer for sale at retail from the
licensed premises for off-premises consumption no more than
155,000 gallons per year so long as such sales are only made
in-person, (v) sell and offer for sale at retail for use and
consumption on the premises specified in the license any form
of alcoholic liquor purchased from a licensed distributor or
importing distributor, and (vi) with the prior approval of the
Commission, annually transfer no more than 155,000 gallons of
beer manufactured on the premises to a licensed brew pub wholly
owned and operated by the same licensee.
A brew pub licensee shall not under any circumstance sell

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or offer for sale beer manufactured by the brew pub licensee to
retail licensees.
A person who holds a class 2 brewer license may
simultaneously hold a brew pub license if the class 2 brewer
(i) does not, under any circumstance, sell or offer for sale
beer manufactured by the class 2 brewer to retail licensees;
(ii) does not hold more than 3 brew pub licenses in this State;
(iii) does not manufacture more than a combined 3,720,000
gallons of beer per year, including the beer manufactured at
the brew pub; and (iv) is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or any other alcoholic
liquor.
Notwithstanding any other provision of this Act, a licensed
brewer, class 2 brewer, or non-resident dealer who before July
1, 2015 manufactured less than than 3,720,000 gallons of beer
per year and held a brew pub license on or before July 1, 2015
may (i) continue to qualify for and hold that brew pub license
for the licensed premises and (ii) manufacture more than
3,720,000 gallons of beer per year and continue to qualify for
and hold that brew pub license if that brewer, class 2 brewer,
or non-resident dealer does not simultaneously hold a class 1
brewer license and is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or that produces any other
alcoholic liquor.

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(o) A caterer retailer license shall allow the holder to
serve alcoholic liquors as an incidental part of a food service
that serves prepared meals which excludes the serving of snacks
as the primary meal, either on or off-site whether licensed or
unlicensed.
(p) An auction liquor license shall allow the licensee to
sell and offer for sale at auction wine and spirits for use or
consumption, or for resale by an Illinois liquor licensee in
accordance with provisions of this Act. An auction liquor
license will be issued to a person and it will permit the
auction liquor licensee to hold the auction anywhere in the
State. An auction liquor license must be obtained for each
auction at least 14 days in advance of the auction date.
(q) A special use permit license shall allow an Illinois
licensed retailer to transfer a portion of its alcoholic liquor
inventory from its retail licensed premises to the premises
specified in the license hereby created, and to sell or offer
for sale at retail, only in the premises specified in the
license hereby created, the transferred alcoholic liquor for
use or consumption, but not for resale in any form. A special
use permit license may be granted for the following time
periods: one day or less; 2 or more days to a maximum of 15 days
per location in any 12 month period. An applicant for the
special use permit license must also submit with the
application proof satisfactory to the State Commission that the
applicant will provide dram shop liability insurance to the

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maximum limits and have local authority approval.
(r) A winery shipper's license shall allow a person with a
first-class or second-class wine manufacturer's license, a
first-class or second-class wine-maker's license, or a limited
wine manufacturer's license or who is licensed to make wine
under the laws of another state to ship wine made by that
licensee directly to a resident of this State who is 21 years
of age or older for that resident's personal use and not for
resale. Prior to receiving a winery shipper's license, an
applicant for the license must provide the Commission with a
true copy of its current license in any state in which it is
licensed as a manufacturer of wine. An applicant for a winery
shipper's license must also complete an application form that
provides any other information the Commission deems necessary.
The application form shall include all addresses from which the
applicant for a winery shipper's license intends to ship wine,
including the name and address of any third party authorized to
ship wine on behalf of the manufacturer. The application form
shall include an acknowledgement consenting to the
jurisdiction of the Commission, the Illinois Department of
Revenue, and the courts of this State concerning the
enforcement of this Act and any related laws, rules, and
regulations, including authorizing the Department of Revenue
and the Commission to conduct audits for the purpose of
ensuring compliance with this amendatory Act, and an
acknowledgement that the wine manufacturer is in compliance

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with Section 6-2 of this Act. Any third party authorized to
ship wine on behalf of a first-class or second-class wine
manufacturer's licensee, a first-class or second-class
wine-maker's licensee, a limited wine manufacturer's licensee,
or a person who is licensed to make wine under the laws of
another state shall also be disclosed by the winery shipper's
licensee, and a copy of the written appointment of the
third-party wine provider to the wine manufacturer shall be
filed with the State Commission as a supplement to the winery
shipper's license application or any renewal thereof. The
winery shipper's license holder shall affirm under penalty of
perjury, as part of the winery shipper's license application or
renewal, that he or she only ships wine, either directly or
indirectly through a third-party provider, from the licensee's
own production.
A third-party provider shipping wine on behalf of a winery
shipper's license holder is the agent of the winery shipper's
license holder and, as such, a winery shipper's license holder
is responsible for the acts and omissions of the third-party
provider acting on behalf of the license holder. A third-party
provider that engages in shipping wine into Illinois on behalf
of a winery shipper's license holder shall consent to the
jurisdiction of the State Commission and the State. Any
third-party holding such an appointment shall, by February 1 of
each calendar year, file with the State Commission a statement
detailing each shipment made to an Illinois resident. The State

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Commission shall adopt rules as soon as practicable to
implement the requirements of this amendatory Act of the 99th
General Assembly and shall adopt rules prohibiting any such
third-party appointment of a third-party provider that has been
deemed by the State Commission to have violated the provisions
of this Act with regard to any winery shipper licensee.
A winery shipper licensee must pay to the Department of
Revenue the State liquor gallonage tax under Section 8-1 for
all wine that is sold by the licensee and shipped to a person
in this State. For the purposes of Section 8-1, a winery
shipper licensee shall be taxed in the same manner as a
manufacturer of wine. A licensee who is not otherwise required
to register under the Retailers' Occupation Tax Act must
register under the Use Tax Act to collect and remit use tax to
the Department of Revenue for all gallons of wine that are sold
by the licensee and shipped to persons in this State. If a
licensee fails to remit the tax imposed under this Act in
accordance with the provisions of Article VIII of this Act, the
winery shipper's license shall be revoked in accordance with
the provisions of Article VII of this Act. If a licensee fails
to properly register and remit tax under the Use Tax Act or the
Retailers' Occupation Tax Act for all wine that is sold by the
winery shipper and shipped to persons in this State, the winery
shipper's license shall be revoked in accordance with the
provisions of Article VII of this Act.
A winery shipper licensee must collect, maintain, and

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submit to the Commission on a semi-annual basis the total
number of cases per resident of wine shipped to residents of
this State. A winery shipper licensed under this subsection (r)
must comply with the requirements of Section 6-29 of this
amendatory Act.
Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
Section 3-12, the State Commission may receive, respond to, and
investigate any complaint and impose any of the remedies
specified in paragraph (1) of subsection (a) of Section 3-12.
(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
98-756, eff. 7-16-14; 99-448, eff. 8-24-15; revised 10-27-15.)
(235 ILCS 5/6-16) (from Ch. 43, par. 131)
Sec. 6-16. Prohibited sales and possession.
(a) (i) No licensee nor any officer, associate, member,
representative, agent, or employee of such licensee shall sell,
give, or deliver alcoholic liquor to any person under the age
of 21 years or to any intoxicated person, except as provided in
Section 6-16.1. (ii) No express company, common carrier, or
contract carrier nor any representative, agent, or employee on
behalf of an express company, common carrier, or contract
carrier that carries or transports alcoholic liquor for
delivery within this State shall knowingly give or knowingly
deliver to a residential address any shipping container clearly
labeled as containing alcoholic liquor and labeled as requiring
signature of an adult of at least 21 years of age to any person

09900SB2989sam002 - 23 - LRB099 20595 RPS 47687 a
in this State under the age of 21 years. An express company,
common carrier, or contract carrier that carries or transports
such alcoholic liquor for delivery within this State shall
obtain a signature at the time of delivery acknowledging
receipt of the alcoholic liquor by an adult who is at least 21
years of age. At no time while delivering alcoholic beverages
within this State may any representative, agent, or employee of
an express company, common carrier, or contract carrier that
carries or transports alcoholic liquor for delivery within this
State deliver the alcoholic liquor to a residential address
without the acknowledgment of the consignee and without first
obtaining a signature at the time of the delivery by an adult
who is at least 21 years of age. A signature of a person on file
with the express company, common carrier, or contract carrier
does not constitute acknowledgement of the consignee. Any
express company, common carrier, or contract carrier that
transports alcoholic liquor for delivery within this State that
violates this item (ii) of this subsection (a) by delivering
alcoholic liquor without the acknowledgement of the consignee
and without first obtaining a signature at the time of the
delivery by an adult who is at least 21 years of age is guilty
of a Class A misdemeanor business offense for which the express
company, common carrier, or contract carrier that transports
alcoholic liquor within this State shall be held vicariously
liable for the actions of its representatives, agents, and
employees, and the sentence shall include, but shall not be

09900SB2989sam002 - 24 - LRB099 20595 RPS 47687 a
limited to, a fine of not less than $5,000 for a first offense
and not less than $10,000 for a second or subsequent offense
shall be fined not more than $1,001 for a first offense, not
more than $5,000 for a second offense, and not more than
$10,000 for a third or subsequent offense. An express company,
common carrier, or contract carrier shall be held vicariously
liable for the actions of its representatives, agents, or
employees. For purposes of this Act, in addition to other
methods authorized by law, an express company, common carrier,
or contract carrier shall be considered served with process
when a representative, agent, or employee alleged to have
violated this Act is personally served. Each shipment of
alcoholic liquor delivered in violation of this item (ii) of
this subsection (a) constitutes a separate offense. (iii) No
person, after purchasing or otherwise obtaining alcoholic
liquor, shall sell, give, or deliver such alcoholic liquor to
another person under the age of 21 years, except in the
performance of a religious ceremony or service. Except as
otherwise provided in item (ii), any express company, common
carrier, or contract carrier that transports alcoholic liquor
within this State that violates the provisions of item (i),
(ii), or (iii) of this paragraph of this subsection (a) is
guilty of a Class A misdemeanor and the sentence shall include,
but shall not be limited to, a fine of not less than $500. Any
person who violates the provisions of item (iii) of this
paragraph of this subsection (a) is guilty of a Class A

09900SB2989sam002 - 25 - LRB099 20595 RPS 47687 a
misdemeanor and the sentence shall include, but shall not be
limited to a fine of not less than $500 for a first offense and
not less than $2,000 for a second or subsequent offense. Any
person who knowingly violates the provisions of item (iii) of
this paragraph of this subsection (a) is guilty of a Class 4
felony if a death occurs as the result of the violation.
If a licensee or officer, associate, member,
representative, agent, or employee of the licensee, or a
representative, agent, or employee of an express company,
common carrier, or contract carrier that carries or transports
alcoholic liquor for delivery within this State, is prosecuted
under this paragraph of this subsection (a) for selling,
giving, or delivering alcoholic liquor to a person under the
age of 21 years, the person under 21 years of age who attempted
to buy or receive the alcoholic liquor may be prosecuted
pursuant to Section 6-20 of this Act, unless the person under
21 years of age was acting under the authority of a law
enforcement agency, the Illinois Liquor Control Commission, or
a local liquor control commissioner pursuant to a plan or
action to investigate, patrol, or conduct any similar
enforcement action.
For the purpose of preventing the violation of this
Section, any licensee, or his agent or employee, or a
representative, agent, or employee of an express company,
common carrier, or contract carrier that carries or transports
alcoholic liquor for delivery within this State, shall refuse

09900SB2989sam002 - 26 - LRB099 20595 RPS 47687 a
to sell, deliver, or serve alcoholic beverages to any person
who is unable to produce adequate written evidence of identity
and of the fact that he or she is over the age of 21 years, if
requested by the licensee, agent, employee, or representative.
Adequate written evidence of age and identity of the person
is a document issued by a federal, state, county, or municipal
government, or subdivision or agency thereof, including, but
not limited to, a motor vehicle operator's license, a
registration certificate issued under the Federal Selective
Service Act, or an identification card issued to a member of
the Armed Forces. Proof that the defendant-licensee, or his
employee or agent, or the representative, agent, or employee of
the express company, common carrier, or contract carrier that
carries or transports alcoholic liquor for delivery within this
State demanded, was shown and reasonably relied upon such
written evidence in any transaction forbidden by this Section
is an affirmative defense in any criminal prosecution therefor
or to any proceedings for the suspension or revocation of any
license based thereon. It shall not, however, be an affirmative
defense if the agent or employee accepted the written evidence
knowing it to be false or fraudulent. If a false or fraudulent
Illinois driver's license or Illinois identification card is
presented by a person less than 21 years of age to a licensee
or the licensee's agent or employee for the purpose of
ordering, purchasing, attempting to purchase, or otherwise
obtaining or attempting to obtain the serving of any alcoholic

09900SB2989sam002 - 27 - LRB099 20595 RPS 47687 a
beverage, the law enforcement officer or agency investigating
the incident shall, upon the conviction of the person who
presented the fraudulent license or identification, make a
report of the matter to the Secretary of State on a form
provided by the Secretary of State.
However, no agent or employee of the licensee or employee
of an express company, common carrier, or contract carrier that
carries or transports alcoholic liquor for delivery within this
State shall be disciplined or discharged for selling or
furnishing liquor to a person under 21 years of age if the
agent or employee demanded and was shown, before furnishing
liquor to a person under 21 years of age, adequate written
evidence of age and identity of the person issued by a federal,
state, county or municipal government, or subdivision or agency
thereof, including but not limited to a motor vehicle
operator's license, a registration certificate issued under
the Federal Selective Service Act, or an identification card
issued to a member of the Armed Forces. This paragraph,
however, shall not apply if the agent or employee accepted the
written evidence knowing it to be false or fraudulent.
Any person who sells, gives, or furnishes to any person
under the age of 21 years any false or fraudulent written,
printed, or photostatic evidence of the age and identity of
such person or who sells, gives or furnishes to any person
under the age of 21 years evidence of age and identification of
any other person is guilty of a Class A misdemeanor and the

09900SB2989sam002 - 28 - LRB099 20595 RPS 47687 a
person's sentence shall include, but shall not be limited to, a
fine of not less than $500.
Any person under the age of 21 years who presents or offers
to any licensee, his agent or employee, any written, printed or
photostatic evidence of age and identity that is false,
fraudulent, or not actually his or her own for the purpose of
ordering, purchasing, attempting to purchase or otherwise
procuring or attempting to procure, the serving of any
alcoholic beverage, who falsely states in writing that he or
she is at least 21 years of age when receiving alcoholic liquor
from a representative, agent, or employee of an express
company, common carrier, or contract carrier, or who has in his
or her possession any false or fraudulent written, printed, or
photostatic evidence of age and identity, is guilty of a Class
A misdemeanor and the person's sentence shall include, but
shall not be limited to, the following: a fine of not less than
$500 and at least 25 hours of community service. If possible,
any community service shall be performed for an alcohol abuse
prevention program.
Any person under the age of 21 years who has any alcoholic
beverage in his or her possession on any street or highway or
in any public place or in any place open to the public is
guilty of a Class A misdemeanor. This Section does not apply to
possession by a person under the age of 21 years making a
delivery of an alcoholic beverage in pursuance of the order of
his or her parent or in pursuance of his or her employment.

09900SB2989sam002 - 29 - LRB099 20595 RPS 47687 a
(a-1) It is unlawful for any parent or guardian to
knowingly permit his or her residence, any other private
property under his or her control, or any vehicle, conveyance,
or watercraft under his or her control to be used by an invitee
of the parent's child or the guardian's ward, if the invitee is
under the age of 21, in a manner that constitutes a violation
of this Section. A parent or guardian is deemed to have
knowingly permitted his or her residence, any other private
property under his or her control, or any vehicle, conveyance,
or watercraft under his or her control to be used in violation
of this Section if he or she knowingly authorizes or permits
consumption of alcoholic liquor by underage invitees. Any
person who violates this subsection (a-1) is guilty of a Class
A misdemeanor and the person's sentence shall include, but
shall not be limited to, a fine of not less than $500. Where a
violation of this subsection (a-1) directly or indirectly
results in great bodily harm or death to any person, the person
violating this subsection shall be guilty of a Class 4 felony.
Nothing in this subsection (a-1) shall be construed to prohibit
the giving of alcoholic liquor to a person under the age of 21
years in the performance of a religious ceremony or service in
observation of a religious holiday.
For the purposes of this subsection (a-1) where the
residence or other property has an owner and a tenant or
lessee, the trier of fact may infer that the residence or other
property is occupied only by the tenant or lessee.

09900SB2989sam002 - 30 - LRB099 20595 RPS 47687 a
(b) Except as otherwise provided in this Section whoever
violates this Section shall, in addition to other penalties
provided for in this Act, be guilty of a Class A misdemeanor.
(c) Any person shall be guilty of a Class A misdemeanor
where he or she knowingly authorizes or permits a residence
which he or she occupies to be used by an invitee under 21
years of age and:
(1) the person occupying the residence knows that any
such person under the age of 21 is in possession of or is
consuming any alcoholic beverage; and
(2) the possession or consumption of the alcohol by the
person under 21 is not otherwise permitted by this Act.
For the purposes of this subsection (c) where the residence
has an owner and a tenant or lessee, the trier of fact may
infer that the residence is occupied only by the tenant or
lessee. The sentence of any person who violates this subsection
(c) shall include, but shall not be limited to, a fine of not
less than $500. Where a violation of this subsection (c)
directly or indirectly results in great bodily harm or death to
any person, the person violating this subsection (c) shall be
guilty of a Class 4 felony. Nothing in this subsection (c)
shall be construed to prohibit the giving of alcoholic liquor
to a person under the age of 21 years in the performance of a
religious ceremony or service in observation of a religious
holiday.
A person shall not be in violation of this subsection (c)

09900SB2989sam002 - 31 - LRB099 20595 RPS 47687 a
if (A) he or she requests assistance from the police department
or other law enforcement agency to either (i) remove any person
who refuses to abide by the person's performance of the duties
imposed by this subsection (c) or (ii) terminate the activity
because the person has been unable to prevent a person under
the age of 21 years from consuming alcohol despite having taken
all reasonable steps to do so and (B) this assistance is
requested before any other person makes a formal complaint to
the police department or other law enforcement agency about the
activity.
(d) Any person who rents a hotel or motel room from the
proprietor or agent thereof for the purpose of or with the
knowledge that such room shall be used for the consumption of
alcoholic liquor by persons under the age of 21 years shall be
guilty of a Class A misdemeanor.
(e) Except as otherwise provided in this Act, any person
who has alcoholic liquor in his or her possession on public
school district property on school days or at events on public
school district property when children are present is guilty of
a petty offense, unless the alcoholic liquor (i) is in the
original container with the seal unbroken and is in the
possession of a person who is not otherwise legally prohibited
from possessing the alcoholic liquor or (ii) is in the
possession of a person in or for the performance of a religious
service or ceremony authorized by the school board.
(Source: P.A. 97-1049, eff. 1-1-13; 98-1017, eff. 1-1-15.)

09900SB2989sam002 - 32 - LRB099 20595 RPS 47687 a
(235 ILCS 5/6-29.1)
Sec. 6-29.1. Direct shipments of alcoholic liquor.
(a) The General Assembly makes the following findings:
(1) The General Assembly of Illinois, having reviewed
this Act in light of the United States Supreme Court's 2005
decision in Granholm v. Heald, has determined to conform
that law to the constitutional principles enunciated by the
Court in a manner that best preserves the temperance,
revenue, and orderly distribution values of this Act.
(2) Minimizing automobile accidents and fatalities,
domestic violence, health problems, loss of productivity,
unemployment, and other social problems associated with
dependency and improvident use of alcoholic beverages
remains the policy of Illinois.
(3) To the maximum extent constitutionally feasible,
Illinois desires to collect sufficient revenue from excise
and use taxes on alcoholic beverages for the purpose of
responding to such social problems.
(4) Combined with family education and individual
discipline, retail validation of age, and assessment of the
capacity of the consumer remains the best pre-sale social
protection against the problems associated with the abuse
of alcoholic liquor.
(5) Therefore, the paramount purpose of this
amendatory Act is to continue to carefully limit direct

09900SB2989sam002 - 33 - LRB099 20595 RPS 47687 a
shipment sales of wine produced by makers of wine and to
continue to prohibit such direct shipment sales for spirits
and beer.
For these reasons, the Commission shall establish a system
to notify the out-of-state trade of this prohibition and to
detect violations. The Commission shall request the Attorney
General to extradite any offender.
(b) Pursuant to the Twenty-First Amendment of the United
States Constitution allowing states to regulate the
distribution and sale of alcoholic liquor and pursuant to the
federal Webb-Kenyon Act declaring that alcoholic liquor
shipped in interstate commerce must comply with state laws, the
General Assembly hereby finds and declares that selling
alcoholic liquor from a point outside this State through
various direct marketing means, such as catalogs, newspapers,
mailers, and the Internet, directly to residents of this State
poses a serious threat to the State's efforts to prevent youths
from accessing alcoholic liquor; to State revenue collections;
and to the economy of this State.
Any person manufacturing, distributing, or selling
alcoholic liquor who knowingly ships or transports or causes
the shipping or transportation of any alcoholic liquor from a
point outside this State to a person in this State who does not
hold a manufacturer's, distributor's, importing distributor's,
or non-resident dealer's license issued by the Liquor Control
Commission, other than a shipment of sacramental wine to a bona

09900SB2989sam002 - 34 - LRB099 20595 RPS 47687 a
fide religious organization, a shipment authorized by Section
6-29, subparagraph (17) of Section 3-12, or any other shipment
authorized by this Act, is in violation of this Act.
The Commission, upon determining, after investigation,
that a person has violated this Section, shall give notice to
the person by certified mail to cease and desist all shipments
of alcoholic liquor into this State and to withdraw from this
State within 5 working days after receipt of the notice all
shipments of alcoholic liquor then in transit. A person who
violates the cease and desist notice is subject to the
applicable penalties in subsection (a) of Section 10-1 of this
Act.
Whenever the Commission has reason to believe that a person
has failed to comply with the Commission notice under this
Section, it shall notify the Department of Revenue and file a
complaint with the State's Attorney of the county where the
alcoholic liquor was delivered or with appropriate law
enforcement officials.
Failure to comply with the notice issued by the Commission
under this Section constitutes a business offense for which the
person shall be fined not more than $1,000 for a first offense,
not more than $5,000 for a second offense, and not more than
$10,000 for a third or subsequent offense. Each shipment of
alcoholic liquor delivered in violation of the cease and desist
notice shall constitute a separate offense.
(Source: P.A. 95-634, eff. 6-1-08.)

09900SB2989sam002 - 35 - LRB099 20595 RPS 47687 a
(235 ILCS 5/10-1) (from Ch. 43, par. 183)
Sec. 10-1. Violations; penalties. Whereas a substantial
threat to the sound and careful control, regulation, and
taxation of the manufacture, sale, and distribution of
alcoholic liquors exists by virtue of individuals who
manufacture, import, distribute, or sell alcoholic liquors
within the State without having first obtained a valid license
to do so, and whereas such threat is especially serious along
the borders of this State, and whereas such threat requires
immediate correction by this Act, by active investigation and
prosecution by law enforcement officials and prosecutors, and
by prompt and strict enforcement through the courts of this
State to punish violators and to deter such conduct in the
future:
(a) Any person who manufactures, imports for distribution
or use, transports from outside this State into this State, or
distributes or sells 108 liters (28.53 gallons) or more of
wine, 45 liters (11.88 gallons) or more of distilled spirits,
or 118 liters (31.17 gallons) or more of beer alcoholic liquor
at any place within the State without having first obtained a
valid license to do so under the provisions of this Act shall
be guilty of a business offense and fined not more than $1,000
for the first such offense and shall be guilty of a Class 4
felony for each subsequent offense.
Any person who manufactures, imports for distribution,

09900SB2989sam002 - 36 - LRB099 20595 RPS 47687 a
transports from outside this State into this State for sale or
resale in this State, or distributes or sells less than 108
liters (28.53 gallons) of wine, less than 45 liters (11.88
gallons) of distilled spirits, or less than 118 liters (31.17
gallons) of beer at any place within the State without having
first obtained a valid license to do so under the provisions of
this Act shall be guilty of a business offense and fined not
more than $1,000 for the first such offense and shall be guilty
of a Class 4 felony for each subsequent offense. This
subsection does not apply to a motor carrier or freight
forwarder, as defined in Section 13102 of Title 49 of the
United States Code, or an air carrier, as defined in Section
40102 of Title 49 of the United States Code.
Any person who both has been issued an initial cease and
desist notice from the State Commission and for compensation
ships alcoholic liquor into this State without a license
authorized by Section 5-1 issued by the State Commission or in
violation of that license is guilty of a Class 4 felony for
each offense.
(b) (1) Any retailer, licensed in this State, who knowingly
causes to furnish, give, sell, or otherwise being within the
State, any alcoholic liquor destined to be used, distributed,
consumed or sold in another state, unless such alcoholic liquor
was received in this State by a duly licensed distributor, or
importing distributors shall have his license suspended for 7
days for the first offense and for the second offense, shall

09900SB2989sam002 - 37 - LRB099 20595 RPS 47687 a
have his license revoked by the Commission.
(2) In the event the Commission receives a certified copy
of a final order from a foreign jurisdiction that an Illinois
retail licensee has been found to have violated that foreign
jurisdiction's laws, rules, or regulations concerning the
importation of alcoholic liquor into that foreign
jurisdiction, the violation may be grounds for the Commission
to revoke, suspend, or refuse to issue or renew a license, to
impose a fine, or to take any additional action provided by
this Act with respect to the Illinois retail license or
licensee. Any such action on the part of the Commission shall
be in accordance with this Act and implementing rules.
For the purposes of paragraph (2): (i) "foreign
jurisdiction" means a state, territory, or possession of the
United States, the District of Columbia, or the Commonwealth of
Puerto Rico, and (ii) "final order" means an order or judgment
of a court or administrative body that determines the rights of
the parties respecting the subject matter of the proceeding,
that remains in full force and effect, and from which no appeal
can be taken.
(c) Any person who shall make any false statement or
otherwise violates any of the provisions of this Act in
obtaining any license hereunder, or who having obtained a
license hereunder shall violate any of the provisions of this
Act with respect to the manufacture, possession, distribution
or sale of alcoholic liquor, or with respect to the maintenance

09900SB2989sam002 - 38 - LRB099 20595 RPS 47687 a
of the licensed premises, or shall violate any other provision
of this Act, shall for a first offense be guilty of a petty
offense and fined not more than $500, and for a second or
subsequent offense shall be guilty of a Class B misdemeanor.
(c-5) Any owner of an establishment that serves alcohol on
its premises, if more than 50% of the establishment's gross
receipts within the prior 3 months is from the sale of alcohol,
who knowingly fails to prohibit concealed firearms on its
premises or who knowingly makes a false statement or record to
avoid the prohibition of concealed firearms on its premises
under the Firearm Concealed Carry Act shall be guilty of a
business offense with a fine up to $5,000.
(d) Each day any person engages in business as a
manufacturer, foreign importer, importing distributor,
distributor or retailer in violation of the provisions of this
Act shall constitute a separate offense.
(e) Any person, under the age of 21 years who, for the
purpose of buying, accepting or receiving alcoholic liquor from
a licensee, represents that he is 21 years of age or over shall
be guilty of a Class A misdemeanor.
(f) In addition to the penalties herein provided, any
person licensed as a wine-maker in either class who
manufactures more wine than authorized by his license shall be
guilty of a business offense and shall be fined $1 for each
gallon so manufactured.
(g) A person shall be exempt from prosecution for a

09900SB2989sam002 - 39 - LRB099 20595 RPS 47687 a
violation of this Act if he is a peace officer in the
enforcement of the criminal laws and such activity is approved
in writing by one of the following:
(1) In all counties, the respective State's Attorney;
(2) The Director of State Police under Section 2605-10,
2605-15, 2605-75, 2605-100, 2605-105, 2605-110, 2605-115,
2605-120, 2605-130, 2605-140, 2605-190, 2605-200,
2605-205, 2605-210, 2605-215, 2605-250, 2605-275,
2605-300, 2605-305, 2605-315, 2605-325, 2605-335,
2605-340, 2605-350, 2605-355, 2605-360, 2605-365,
2605-375, 2605-390, 2605-400, 2605-405, 2605-420,
2605-430, 2605-435, 2605-500, 2605-525, or 2605-550 of the
Department of State Police Law (20 ILCS 2605/2605-10,
2605/2605-15, 2605/2605-75, 2605/2605-100, 2605/2605-105,
2605/2605-110, 2605/2605-115, 2605/2605-120,
2605/2605-130, 2605/2605-140, 2605/2605-190,
2605/2605-200, 2605/2605-205, 2605/2605-210,
2605/2605-215, 2605/2605-250, 2605/2605-275,
2605/2605-300, 2605/2605-305, 2605/2605-315,
2605/2605-325, 2605/2605-335, 2605/2605-340,
2605/2605-350, 2605/2605-355, 2605/2605-360,
2605/2605-365, 2605/2605-375, 2605/2605-390,
2605/2605-400, 2605/2605-405, 2605/2605-420,
2605/2605-430, 2605/2605-435, 2605/2605-500,
2605/2605-525, or 2605/2605-550); or
(3) In cities over 1,000,000, the Superintendent of

09900SB2989sam002 - 40 - LRB099 20595 RPS 47687 a
Police.
(Source: P.A. 98-63, eff. 7-9-13.)
Section 99. Effective date. This Act takes effect January
1, 2017.".