Public Act 098-0394

HB1486 Enrolled LRB098 07352 MGM 37415 b

AN ACT concerning liquor.

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

represented in the General Assembly:

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

changing Sections 5-1 and 8-10 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. Craft Brewer,

(b) Distributor's license,

(c) Importing Distributor's license,

(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

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 the effective date of 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 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 the effective date of

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 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 the effective date of 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 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 the

effective date of 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 craft brewer's license, which may only be

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

shall allow the manufacture of up to 465,000 gallons of beer

per year. A craft 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.

(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

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

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 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

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.

(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

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

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

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

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

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

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 (i) to

manufacture beer only on the premises specified in the license,

(ii) to 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 substantially owned

and operated by the same licensee to importing distributors,

distributors, and to non-licensees for use and consumption,

(iii) to store the beer upon the premises, and (iv) to sell and

offer for sale at retail from the licensed premises, provided

that a brew pub licensee shall not sell for off-premises

consumption more than 50,000 gallons per year. A person who

holds a brew pub license may simultaneously hold a craft brewer

license if he or she otherwise qualifies for the craft brewer

license and the craft brewer license is for a location separate

from the brew pub's licensed premises. A brew pub license shall

permit a person who has received prior approval from the

Commission to annually transfer no more than a total of 50,000

gallons of beer manufactured on premises to all other licensed

brew pubs that are substantially owned and operated by the same

person.

(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

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 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.

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

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.

(Source: P.A. 96-1367, eff. 7-28-10; 97-5, eff. 6-1-11; 97-455,

eff. 8-19-11; 97-813, eff. 7-13-12; 97-1166, eff. 3-1-13.)

(235 ILCS 5/8-10) (from Ch. 43, par. 164)

Sec. 8-10. It is the duty of each manufacturer, importing

distributor and foreign importer to keep, at his licensed

address or place of business, complete and accurate records of

all sales or other dispositions of alcoholic liquor, and

complete and accurate records of all alcoholic liquor produced,

manufactured, compounded or imported, whether for himself or

for another, together with a physical inventory made as of the

close of each period for which a return is required, covering

all alcoholic liquors on hand. However, the Department of

Revenue may grant an importing distributor a waiver to permit

such records to be kept at a central business location within

the State upon written request by the importing distributor.

The central business location shall be located at a licensed

importing distributor's premises. The Department of Revenue

may in its discretion prescribe reasonable and uniform methods

for keeping such records by manufacturers and importing

distributors and foreign importers.

In case of failure by manufacturers and importing

distributors to keep such records or to make them available to

the Department on demand, the Department shall determine the

amount of tax due according to its best judgment and

information, which amount so determined by the Department shall

be prima facie correct, and the Department's notice of tax

liability shall be given, and protest thereto and demand for a

hearing may be made and final assessments arrived at, in

accordance with the provisions of Section 8-5 hereof.

It is the duty of each manufacturer, importing distributor

and foreign importer, who imports alcoholic liquor into the

State, and each non-resident dealer who ships alcoholic liquor

into the State, to mail to the Department one duplicate

invoice, together with a bill of lading, covering such shipment

and stating the quantity and, except in the case of alcoholic

liquor imported in bulk to be bottled by an authorized licensee

in this State using his own label and brand, the invoice shall

also state the brand, labels and size of containers.

It is the duty of each manufacturer, importing distributor

and foreign importer, who imports spirits into the State, and

each non-resident dealer who ships spirits into the State, to

mail to the State Commission monthly a report containing a

compilation of the information required to be furnished to the

Department by the preceding paragraph, except that information

concerning spirits imported in bulk need not be included. The

report shall include all information mailed to the Department

during the preceding month.

All books and records, which manufacturers, importing

distributors, non-resident dealers and foreign importers are

required by this Section to keep, shall be preserved for a

period of 3 years, unless the Department, in writing,

authorizes their destruction or disposal at an earlier date.

(Source: P.A. 86-654.)

Section 99. Effective date. This Act takes effect upon

becoming law.