Bill Text: IL HB2620 | 2021-2022 | 102nd General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Liquor Control Act of 1934. In provisions concerning the powers and duties of the Illinois Liquor Control Commission, provides that the Commission shall approve self-distribution exemptions if the applicant is not a member of any affiliated group that produces directly or indirectly more than a specified amount of gallons of wine, beer, and spirits per annum, and will not annually produce for sale more than the specified amount of gallons of wine, beer, and spirits per annum. Provides that the Commission may fine, suspend, or revoke a self-distribution exemption after a hearing if it finds that the exemption holder has exceeded production of a specified amount of gallons of wine, beer, or spirits in any calendar year. Sets forth provisions concerning requirements for class 3 brewer licensees. Provides that the Commission may adopt rules governing self-distribution examples. Authorizes a distributor licensee to sell mead to brewers, class 1 brewers, and class 2 brewers that sell beer, cider, or mead to non-licensees at their breweries. Provides that a self-distribution exemption for certain wine manufacturers shall allow the sale of cider, mead, or both cider and mead to brewers, class 1 brewers, class 2 brewers, and class 3 brewers that sell beer, cider, mead, or any combination thereof to non-licensees at their breweries. Sets forth provisions concerning requirements for first class and second class wine-manufacturers that manufacture beer or spirits, class 1 and class 2 craft distillers that manufacture beer, and class 1 and class 2 brewers that manufacture spirits or wine. Provides that a brewer, class 1 brewer, or class 2 brewer may sell mead for on-premises or off-premises consumption. Provides that a first class wine-maker that concurrently holds a class 1 brewer license or a class 1 craft distiller license shall not be eligible to hold a wine-maker's premises license. Provides that the Commission may issue beer showcase permit licenses. Sets forth provisions concerning beer showcase permit licenses. Changes fees for first-class wine manufacturer and first-class wine-maker licenses and establishes fees for class 3 brewer and beer showcase permit licenses. Sets forth provisions concerning stocking, rotation, resetting, and pricing services; cooperative purchase agreements; quantity discounting programs; transfer of wine or spirits by a retail licensee with multiple licenses; one-time inventory transfer of wine or spirits by a retail licensee with multiple licenses; and beer production quantity reporting. Defines terms. Makes other changes. Effective immediately.
Spectrum: Moderate Partisan Bill (Democrat 7-1)
Status: (Passed) 2021-08-20 - Public Act . . . . . . . . . 102-0442 [HB2620 Detail]
Download: Illinois-2021-HB2620-Enrolled.html
Bill Title: Amends the Liquor Control Act of 1934. In provisions concerning the powers and duties of the Illinois Liquor Control Commission, provides that the Commission shall approve self-distribution exemptions if the applicant is not a member of any affiliated group that produces directly or indirectly more than a specified amount of gallons of wine, beer, and spirits per annum, and will not annually produce for sale more than the specified amount of gallons of wine, beer, and spirits per annum. Provides that the Commission may fine, suspend, or revoke a self-distribution exemption after a hearing if it finds that the exemption holder has exceeded production of a specified amount of gallons of wine, beer, or spirits in any calendar year. Sets forth provisions concerning requirements for class 3 brewer licensees. Provides that the Commission may adopt rules governing self-distribution examples. Authorizes a distributor licensee to sell mead to brewers, class 1 brewers, and class 2 brewers that sell beer, cider, or mead to non-licensees at their breweries. Provides that a self-distribution exemption for certain wine manufacturers shall allow the sale of cider, mead, or both cider and mead to brewers, class 1 brewers, class 2 brewers, and class 3 brewers that sell beer, cider, mead, or any combination thereof to non-licensees at their breweries. Sets forth provisions concerning requirements for first class and second class wine-manufacturers that manufacture beer or spirits, class 1 and class 2 craft distillers that manufacture beer, and class 1 and class 2 brewers that manufacture spirits or wine. Provides that a brewer, class 1 brewer, or class 2 brewer may sell mead for on-premises or off-premises consumption. Provides that a first class wine-maker that concurrently holds a class 1 brewer license or a class 1 craft distiller license shall not be eligible to hold a wine-maker's premises license. Provides that the Commission may issue beer showcase permit licenses. Sets forth provisions concerning beer showcase permit licenses. Changes fees for first-class wine manufacturer and first-class wine-maker licenses and establishes fees for class 3 brewer and beer showcase permit licenses. Sets forth provisions concerning stocking, rotation, resetting, and pricing services; cooperative purchase agreements; quantity discounting programs; transfer of wine or spirits by a retail licensee with multiple licenses; one-time inventory transfer of wine or spirits by a retail licensee with multiple licenses; and beer production quantity reporting. Defines terms. Makes other changes. Effective immediately.
Spectrum: Moderate Partisan Bill (Democrat 7-1)
Status: (Passed) 2021-08-20 - Public Act . . . . . . . . . 102-0442 [HB2620 Detail]
Download: Illinois-2021-HB2620-Enrolled.html
| |||||||
| |||||||
| |||||||
1 | AN ACT concerning regulation.
| ||||||
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 1-3.03, 3-12, 5-1, 5-3, 6-4, 6-5, and 6-9.1 | ||||||
6 | and by adding Sections 1-3.43, 1-3.44, 6-6.1, 6-9.5, 6-9.10, | ||||||
7 | 6-9.15, 6-17.5, 6-37, 6-38 and 8-10.5 as follows:
| ||||||
8 | (235 ILCS 5/1-3.03) (from Ch. 43, par. 95.03)
| ||||||
9 | Sec. 1-3.03.
"Wine" means any alcoholic beverage obtained
| ||||||
10 | by the fermentation
of the natural contents of fruits, or | ||||||
11 | vegetables , or honey , containing sugar,
including mead and | ||||||
12 | such beverages when fortified by the addition of alcohol or
| ||||||
13 | spirits, as above defined.
| ||||||
14 | (Source: P.A. 82-783.)
| ||||||
15 | (235 ILCS 5/1-3.43 new) | ||||||
16 | Sec. 1-3.43. Beer showcase permit license. "Beer showcase | ||||||
17 | permit" means a license for use by a class 3 brewer, or | ||||||
18 | distributor to allow for the transfer of beer only from an | ||||||
19 | existing licensed premises of a class 3 brewer or distributor | ||||||
20 | to a designated site for a specific event.
| ||||||
21 | (235 ILCS 5/1-3.44 new) |
| |||||||
| |||||||
1 | Sec. 1-3.44. Class 3 brewer. "Class 3 brewer" means a | ||||||
2 | holder of a brewer's license or a non-resident dealer's | ||||||
3 | license who manufactures no more than 155,000 gallons at any | ||||||
4 | single brewery premises and no more than 465,000 gallons of | ||||||
5 | beer per year in the aggregate, and to make sales to importing | ||||||
6 | distributors, distributors, and retail licensees in accordance | ||||||
7 | with the conditions set forth in paragraph (20) of subsection | ||||||
8 | (a) of Section 3-12.
| ||||||
9 | (235 ILCS 5/3-12)
| ||||||
10 | Sec. 3-12. Powers and duties of State Commission.
| ||||||
11 | (a) The State Commission shall have the following powers, | ||||||
12 | functions, and
duties:
| ||||||
13 | (1) To receive applications and to issue licenses to | ||||||
14 | manufacturers,
foreign importers, importing distributors, | ||||||
15 | distributors, non-resident dealers,
on premise consumption | ||||||
16 | retailers, off premise sale retailers, special event
| ||||||
17 | retailer licensees, special use permit licenses, auction | ||||||
18 | liquor licenses, brew
pubs, caterer retailers, | ||||||
19 | non-beverage users, railroads, including owners and
| ||||||
20 | lessees of sleeping, dining and cafe cars, airplanes, | ||||||
21 | boats, brokers, and wine
maker's premises licensees in | ||||||
22 | accordance with the provisions of this Act, and
to suspend | ||||||
23 | or revoke such licenses upon the State Commission's | ||||||
24 | determination,
upon notice after hearing, that a licensee | ||||||
25 | has violated any provision of this
Act or any rule or |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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.
|
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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
|
| |||||||
| |||||||
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 and
| ||||||
8 | 6-29.1 by persons who do not hold a winery shipper's
| ||||||
9 | license under this Act to the Illinois Attorney General | ||||||
10 | and
to the U.S. Department of Treasury's Alcohol and | ||||||
11 | Tobacco Tax and Trade Bureau. | ||||||
12 | (17)(A) A person licensed to make wine under the laws | ||||||
13 | of another state who has a winery shipper's license under | ||||||
14 | this Act and annually produces less than 25,000 gallons of | ||||||
15 | wine or a person who has a first-class or second-class | ||||||
16 | wine manufacturer's license, a first-class or second-class | ||||||
17 | wine-maker's license, or a limited wine manufacturer's | ||||||
18 | license under this Act and annually produces less than | ||||||
19 | 25,000 gallons of wine may make application to the | ||||||
20 | Commission for a self-distribution exemption to allow the | ||||||
21 | sale of not more than 5,000 gallons of the exemption | ||||||
22 | holder's wine to retail licensees per year and to sell | ||||||
23 | cider, mead, or both cider and mead to brewers, class 1 | ||||||
24 | brewers, class 2 brewers, and class 3 brewers that, | ||||||
25 | pursuant to subsection (e) of Section 6-4 of this Act, | ||||||
26 | sell beer, cider, mead, or any combination thereof to |
| |||||||
| |||||||
1 | non-licensees at their breweries . | ||||||
2 | (B) In the application, which shall be sworn under | ||||||
3 | penalty of perjury, such person shall state (1) the date | ||||||
4 | it was established; (2) its volume of production and sales | ||||||
5 | for each year since its establishment; (3) its efforts to | ||||||
6 | establish distributor relationships; (4) that a | ||||||
7 | self-distribution exemption is necessary to facilitate the | ||||||
8 | marketing of its wine; and (5) that it will comply with the | ||||||
9 | liquor and revenue laws of the United States, this State, | ||||||
10 | and any other state where it is licensed. | ||||||
11 | (C) The State Commission shall approve the application | ||||||
12 | for a self-distribution exemption if such person: (1) is | ||||||
13 | in compliance with State revenue and liquor laws; (2) is | ||||||
14 | not a member of any affiliated group that produces | ||||||
15 | directly or indirectly more than 25,000 gallons of wine | ||||||
16 | per annum , 930,000 gallons of beer per annum, or 50,000 | ||||||
17 | gallons of spirits per annum or produces any other | ||||||
18 | alcoholic liquor ; (3) will not annually produce for sale | ||||||
19 | more than 25,000 gallons of wine , 930,000 gallons of beer, | ||||||
20 | or 50,000 gallons of spirits ; and (4) will not annually | ||||||
21 | sell more than 5,000 gallons of its wine to retail | ||||||
22 | 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 |
| |||||||
| |||||||
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 or any other alcoholic liquor . | ||||||
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 |
| |||||||
| |||||||
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 per year to retail licensees and to brewers, class 1 | ||||||
18 | brewers, and class 2 brewers that, pursuant to subsection | ||||||
19 | (e) of Section 6-4 of this Act, sell beer, cider, , mead, or | ||||||
20 | any combination thereof or both beer and cider to | ||||||
21 | non-licensees at their breweries. | ||||||
22 | (B) In the application, which shall be sworn under | ||||||
23 | penalty of perjury, the class 1 brewer licensee shall | ||||||
24 | state (1) the date it was established; (2) its volume of | ||||||
25 | beer manufactured and sold for each year since its | ||||||
26 | establishment; (3) its efforts to establish distributor |
| |||||||
| |||||||
1 | relationships; (4) that a self-distribution exemption is | ||||||
2 | necessary to facilitate the marketing of its beer; and (5) | ||||||
3 | that it will comply with the alcoholic beverage and | ||||||
4 | revenue laws of the United States, this State, and any | ||||||
5 | other state where it is licensed. | ||||||
6 | (C) Any application submitted shall be posted on the | ||||||
7 | State Commission's website at least 45 days prior to | ||||||
8 | action by the State Commission. The State Commission shall | ||||||
9 | approve the application for a self-distribution exemption | ||||||
10 | if the class 1 brewer licensee: (1) is in compliance with | ||||||
11 | the State, revenue, and alcoholic beverage laws; (2) is | ||||||
12 | not a member of any affiliated group that manufactures , | ||||||
13 | directly or indirectly, more than 930,000 gallons of beer | ||||||
14 | per annum , 25,000 gallons of wine per annum, or 50,000 | ||||||
15 | gallons of spirits per annum or produces any other | ||||||
16 | alcoholic beverages ; (3) shall not annually manufacture | ||||||
17 | for sale more than 930,000 gallons of beer , 25,000 gallons | ||||||
18 | of wine, or 50,000 gallons of spirits ; (4) shall not | ||||||
19 | annually sell more than 232,500 gallons of its beer to | ||||||
20 | retail licensees and class 3 brewers and or 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, | ||||||
23 | cider, mead, or any combination thereof or both beer and | ||||||
24 | cider to non-licensees at their breweries; and (5) has | ||||||
25 | relinquished any brew pub license held by the licensee, | ||||||
26 | including any ownership interest it held in the licensed |
| |||||||
| |||||||
1 | brew pub. | ||||||
2 | (D) A self-distribution exemption holder shall | ||||||
3 | annually certify to the State Commission its manufacture | ||||||
4 | of beer during the previous 12 months and its anticipated | ||||||
5 | manufacture and sales of beer for the next 12 months. The | ||||||
6 | State Commission may fine, suspend, or revoke a | ||||||
7 | self-distribution exemption after a hearing if it finds | ||||||
8 | that the exemption holder has made a material | ||||||
9 | misrepresentation in its application, violated a revenue | ||||||
10 | or alcoholic beverage law of Illinois, exceeded the | ||||||
11 | manufacture of 930,000 gallons of beer , 25,000 gallons of | ||||||
12 | wine, or 50,000 gallons of spirits in any calendar year or | ||||||
13 | became part of an affiliated group manufacturing more than | ||||||
14 | 930,000 gallons of beer , 25,000 gallons of wine, or 50,000 | ||||||
15 | gallons of spirits or any other alcoholic beverage . | ||||||
16 | (E) The State Commission shall issue rules and | ||||||
17 | regulations governing self-distribution exemptions | ||||||
18 | consistent with this Act. | ||||||
19 | (F) Nothing in this paragraph (18) shall prohibit a | ||||||
20 | self-distribution exemption holder from entering into or | ||||||
21 | simultaneously having a distribution agreement with a | ||||||
22 | licensed Illinois importing distributor or a distributor. | ||||||
23 | If a self-distribution exemption holder enters into a | ||||||
24 | distribution agreement and has assigned distribution | ||||||
25 | rights to an importing distributor or distributor, then | ||||||
26 | the self-distribution exemption holder's distribution |
| |||||||
| |||||||
1 | rights in the assigned territories shall cease in a | ||||||
2 | reasonable time not to exceed 60 days. | ||||||
3 | (G) It is the intent of this paragraph (18) to promote | ||||||
4 | and continue orderly markets. The General Assembly finds | ||||||
5 | that in order to preserve Illinois' regulatory | ||||||
6 | distribution system, it is necessary to create an | ||||||
7 | exception for smaller manufacturers in order to afford and | ||||||
8 | allow such smaller manufacturers of beer access to the | ||||||
9 | marketplace in order to develop a customer base without | ||||||
10 | impairing the integrity of the 3-tier system. | ||||||
11 | (19)(A) A class 1 craft distiller licensee or a | ||||||
12 | non-resident dealer who manufactures less than 50,000 | ||||||
13 | gallons of distilled spirits per year may make application | ||||||
14 | to the State Commission for a self-distribution exemption | ||||||
15 | to allow the sale of not more
than 5,000 gallons of the | ||||||
16 | exemption holder's spirits to retail licensees per year. | ||||||
17 | (B) In the application, which shall be sworn under | ||||||
18 | penalty of perjury, the class 1 craft distiller licensee | ||||||
19 | or non-resident dealer shall state (1) the date it was | ||||||
20 | established; (2) its volume of spirits manufactured and | ||||||
21 | sold for each year since its establishment; (3) its | ||||||
22 | efforts to establish distributor relationships; (4) that a | ||||||
23 | self-distribution exemption is necessary to facilitate the | ||||||
24 | marketing of its spirits; and (5) that it will comply with | ||||||
25 | the alcoholic beverage and revenue laws of the United | ||||||
26 | States, this State, and any other state where it is |
| |||||||
| |||||||
1 | licensed. | ||||||
2 | (C) Any application submitted shall be posted on the | ||||||
3 | State Commission's website at least 45 days prior to | ||||||
4 | action by the State Commission. The State Commission shall | ||||||
5 | approve the application for a self-distribution exemption | ||||||
6 | if the applicant: (1) is in compliance with State revenue | ||||||
7 | and alcoholic beverage laws; (2) is not a member of any | ||||||
8 | affiliated group that produces more than 50,000 gallons of | ||||||
9 | spirits per annum , 930,000 gallons of beer per annum, or | ||||||
10 | 25,000 gallons of wine per annum or produces any other | ||||||
11 | alcoholic liquor ; (3) does not annually manufacture for | ||||||
12 | sale more than 50,000 gallons of spirits , 930,000 gallons | ||||||
13 | of beer, or 25,000 gallons of wine ; and (4) does not | ||||||
14 | annually sell more than 5,000 gallons of its spirits to | ||||||
15 | retail licensees. | ||||||
16 | (D) A self-distribution exemption holder shall | ||||||
17 | annually certify to the State Commission its manufacture | ||||||
18 | of spirits during the previous 12 months and its | ||||||
19 | anticipated manufacture and sales of spirits for the next | ||||||
20 | 12 months. The State Commission may fine, suspend, or | ||||||
21 | revoke a self-distribution exemption after a hearing if it | ||||||
22 | finds that the exemption holder has made a material | ||||||
23 | misrepresentation in its application, violated a revenue | ||||||
24 | or alcoholic beverage law of Illinois, exceeded the | ||||||
25 | manufacture of 50,000 gallons of spirits , 930,000 gallons | ||||||
26 | of beer, or 25,000 gallons of wine in any calendar year, or |
| |||||||
| |||||||
1 | has become part of an affiliated group manufacturing more | ||||||
2 | than 50,000 gallons of spirits , 930,000 gallons of beer, | ||||||
3 | or 25,000 gallons of wine or any other alcoholic beverage . | ||||||
4 | (E) The State Commission shall adopt rules governing | ||||||
5 | self-distribution exemptions consistent with this Act. | ||||||
6 | (F) Nothing in this paragraph (19) shall prohibit a | ||||||
7 | self-distribution exemption holder from entering into or | ||||||
8 | simultaneously having a distribution agreement with a | ||||||
9 | licensed Illinois importing distributor or a distributor. | ||||||
10 | (G) It is the intent of this paragraph (19) to promote | ||||||
11 | and continue orderly markets. The General Assembly finds | ||||||
12 | that in order to preserve Illinois' regulatory | ||||||
13 | distribution system, it is necessary to create an | ||||||
14 | exception for smaller manufacturers in order to afford and | ||||||
15 | allow such smaller manufacturers of spirits access to the | ||||||
16 | marketplace in order to develop a customer base without | ||||||
17 | impairing the
integrity of the 3-tier system. | ||||||
18 | (20)(A) A class 3 brewer licensee who must manufacture | ||||||
19 | less than 465,000 gallons of beer in the aggregate and not | ||||||
20 | more than 155,000 gallons at any single brewery premises | ||||||
21 | may make application to the State Commission for a | ||||||
22 | self-distribution exemption to allow the sale of not more | ||||||
23 | than 6,200 gallons of beer from each in-state or | ||||||
24 | out-of-state class 3 brewery premises, which shall not | ||||||
25 | exceed 18,600 gallons annually in the aggregate, that is | ||||||
26 | manufactured at a wholly owned class 3 brewer's in-state |
| |||||||
| |||||||
1 | or out-of-state licensed premises to retail licensees and | ||||||
2 | class 3 brewers and to brewers, class 1 brewers, class 2 | ||||||
3 | brewers that, pursuant to subsection (e) of Section 6-4, | ||||||
4 | sell beer, cider, or both beer and cider to non-licensees | ||||||
5 | at their licensed breweries. | ||||||
6 | (B) In the application, which shall be sworn under | ||||||
7 | penalty of perjury, the class 3 brewer licensee shall | ||||||
8 | state: | ||||||
9 | (1) the date it was established; | ||||||
10 | (2) its volume of beer manufactured and sold for | ||||||
11 | each year since its establishment; | ||||||
12 | (3) its efforts to establish distributor | ||||||
13 | relationships; | ||||||
14 | (4) that a self-distribution exemption is | ||||||
15 | necessary to facilitate the marketing of its beer; and | ||||||
16 | (5) that it will comply with the alcoholic | ||||||
17 | beverage and revenue laws of the United States, this | ||||||
18 | State, and any other state where it is licensed. | ||||||
19 | (C) Any application submitted shall be posted on the | ||||||
20 | State Commission's website at least 45 days before action | ||||||
21 | by the State Commission. The State Commission shall | ||||||
22 | approve the application for a self-distribution exemption | ||||||
23 | if the class 3 brewer licensee: (1) is in compliance with | ||||||
24 | the State, revenue, and alcoholic beverage laws; (2) is | ||||||
25 | not a member of any affiliated group that manufacturers, | ||||||
26 | directly or indirectly, more than 465,000 gallons of beer |
| |||||||
| |||||||
1 | per annum, (3) shall not annually manufacture for sale | ||||||
2 | more than 465,000 gallons of beer or more than 155,000 | ||||||
3 | gallons at any single brewery premises; and (4) shall not | ||||||
4 | annually sell more than 6,200 gallons of beer from each | ||||||
5 | in-state or out-of-state class 3 brewery premises, and | ||||||
6 | shall not exceed 18,600 gallons annually in the aggregate, | ||||||
7 | to retail licensees and class 3 brewers and to brewers, | ||||||
8 | class 1 brewers, and class 2 brewers that, pursuant to | ||||||
9 | subsection (e) of Section 6-4 of this Act, sell beer, | ||||||
10 | cider, or both beer and cider to non-licensees at their | ||||||
11 | breweries. | ||||||
12 | (D) A self-distribution exemption holder shall | ||||||
13 | annually certify to the State Commission its manufacture | ||||||
14 | of beer during the previous 12 months and its anticipated | ||||||
15 | manufacture and sales of beer for the next 12 months. The | ||||||
16 | State Commission may fine, suspend, or revoke a | ||||||
17 | self-distribution exemption after a hearing if it finds | ||||||
18 | 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 465,000 gallons of beer in any calendar | ||||||
22 | year or became part of an affiliated group manufacturing | ||||||
23 | more than 465,000 gallons of beer, or exceeded the sale to | ||||||
24 | retail licensees, brewers, class 1 brewers, class 2 | ||||||
25 | brewers, and class 3 brewers of 6,200 gallons per brewery | ||||||
26 | location or 18,600 gallons in the aggregate. |
| |||||||
| |||||||
1 | (E) The State Commission may adopt rules governing | ||||||
2 | self-distribution exemptions consistent with this Act. | ||||||
3 | (F) Nothing in this paragraph shall prohibit a | ||||||
4 | self-distribution exemption holder from entering into or | ||||||
5 | simultaneously having a distribution agreement with a | ||||||
6 | licensed Illinois importing distributor or a distributor. | ||||||
7 | If a self-distribution exemption holder enters into a | ||||||
8 | distribution agreement and has assigned distribution | ||||||
9 | rights to an importing distributor or distributor, then | ||||||
10 | the self-distribution exemption holder's distribution | ||||||
11 | rights in the assigned territories shall cease in a | ||||||
12 | reasonable time not to exceed 60 days. | ||||||
13 | (G) It is the intent of this paragraph to promote and | ||||||
14 | continue orderly markets. The General Assembly finds that | ||||||
15 | in order to preserve Illinois' regulatory distribution | ||||||
16 | system, it is necessary to create an exception for smaller | ||||||
17 | manufacturers in order to afford and allow such smaller | ||||||
18 | manufacturers of beer access to the marketplace in order | ||||||
19 | to develop a customer base without impairing the integrity | ||||||
20 | of the 3-tier system. | ||||||
21 | (b) On or before April 30, 1999, the Commission shall | ||||||
22 | present a written
report to the Governor and the General | ||||||
23 | Assembly that shall be based on a study
of the impact of Public | ||||||
24 | Act 90-739 on the business of soliciting,
selling, and | ||||||
25 | shipping
alcoholic liquor from outside of this State directly | ||||||
26 | to residents of this
State.
|
| |||||||
| |||||||
1 | As part of its report, the Commission shall provide the | ||||||
2 | following
information:
| ||||||
3 | (i) the amount of State excise and sales tax revenues | ||||||
4 | generated as a
result of Public Act 90-739;
| ||||||
5 | (ii) the amount of licensing fees received as a result | ||||||
6 | of Public Act 90-739;
| ||||||
7 | (iii) the number of reported violations, the number of | ||||||
8 | cease and desist
notices issued by the Commission, the | ||||||
9 | number of notices of violations issued
to the Department | ||||||
10 | of Revenue, and the number of notices and complaints of
| ||||||
11 | violations to law enforcement officials.
| ||||||
12 | (Source: P.A. 100-134, eff. 8-18-17; 100-201, eff. 8-18-17; | ||||||
13 | 100-816, eff. 8-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. | ||||||
14 | 8-23-18; 101-37, eff. 7-3-19; 101-81, eff. 7-12-19; 101-482, | ||||||
15 | eff. 8-23-19; revised 9-20-19.)
| ||||||
16 | (235 ILCS 5/5-1) (from Ch. 43, par. 115) | ||||||
17 | (Text of Section before amendment by P.A. 101-668 ) | ||||||
18 | Sec. 5-1. Licenses issued by the Illinois Liquor Control | ||||||
19 | Commission
shall be of the following classes: | ||||||
20 | (a) Manufacturer's license - Class 1.
Distiller, Class 2. | ||||||
21 | Rectifier, Class 3. Brewer, Class 4. First Class Wine
| ||||||
22 | Manufacturer, Class 5. Second Class Wine Manufacturer, Class | ||||||
23 | 6. First Class Winemaker, Class 7. Second Class Winemaker, | ||||||
24 | Class 8.
Limited Wine Manufacturer, Class 9. Craft Distiller, | ||||||
25 | Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft |
| |||||||
| |||||||
1 | Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer, | ||||||
2 | Class 14. Class 3 Brewer, | ||||||
3 | (b) Distributor's license, | ||||||
4 | (c) Importing Distributor's license, | ||||||
5 | (d) Retailer's license, | ||||||
6 | (e) Special Event Retailer's license (not-for-profit), | ||||||
7 | (f) Railroad license, | ||||||
8 | (g) Boat license, | ||||||
9 | (h) Non-Beverage User's license, | ||||||
10 | (i) Wine-maker's premises license, | ||||||
11 | (j) Airplane license, | ||||||
12 | (k) Foreign importer's license, | ||||||
13 | (l) Broker's license, | ||||||
14 | (m) Non-resident dealer's
license, | ||||||
15 | (n) Brew Pub license, | ||||||
16 | (o) Auction liquor license, | ||||||
17 | (p) Caterer retailer license, | ||||||
18 | (q) Special use permit license, | ||||||
19 | (r) Winery shipper's license, | ||||||
20 | (s) Craft distiller tasting permit, | ||||||
21 | (t) Brewer warehouse permit, | ||||||
22 | (u) Distilling pub license, | ||||||
23 | (v) Craft distiller warehouse permit , . | ||||||
24 | (w) Beer showcase permit. | ||||||
25 | No
person, firm, partnership, corporation, or other legal | ||||||
26 | business entity that is
engaged in the manufacturing of wine |
| |||||||
| |||||||
1 | may concurrently obtain and hold a
wine-maker's license and a | ||||||
2 | wine manufacturer's license. | ||||||
3 | (a) A manufacturer's license shall allow the manufacture,
| ||||||
4 | importation in bulk, storage, distribution and sale of | ||||||
5 | alcoholic liquor
to persons without the State, as may be | ||||||
6 | permitted by law and to licensees
in this State as follows: | ||||||
7 | Class 1. A Distiller may make sales and deliveries of | ||||||
8 | alcoholic liquor to
distillers, rectifiers, importing | ||||||
9 | distributors, distributors and
non-beverage users and to no | ||||||
10 | other licensees. | ||||||
11 | Class 2. A Rectifier, who is not a distiller, as defined | ||||||
12 | herein, may make
sales and deliveries of alcoholic liquor to | ||||||
13 | rectifiers, importing distributors,
distributors, retailers | ||||||
14 | and non-beverage users and to no other licensees. | ||||||
15 | Class 3. A Brewer may make sales and deliveries of beer to | ||||||
16 | importing
distributors and distributors and may make sales as | ||||||
17 | authorized under subsection (e) of Section 6-4 of this Act , | ||||||
18 | including any alcoholic liquor that subsection (e) of Section | ||||||
19 | 6-4 authorizes a brewer to sell in its original package only to | ||||||
20 | a non-licensee for pick-up by a non-licensee either within the | ||||||
21 | interior of the brewery premises or at outside of the brewery | ||||||
22 | premises at a curb-side or parking lot adjacent to the brewery | ||||||
23 | premises, subject to any local ordinance . | ||||||
24 | Class 4. A first class wine-manufacturer may make sales | ||||||
25 | and deliveries of
up to 50,000 gallons of wine to | ||||||
26 | manufacturers,
importing
distributors and distributors, and to |
| |||||||
| |||||||
1 | no other licensees. If a first-class wine-manufacturer | ||||||
2 | manufactures beer, it shall also obtain and shall only be | ||||||
3 | eligible for, in addition to any current license, a class 1 | ||||||
4 | brewer license, shall not manufacture more than 930,000 | ||||||
5 | gallons of beer per year, and shall not be a member of or | ||||||
6 | affiliated with, directly or indirectly, a manufacturer that | ||||||
7 | produces more than 930,000 gallons of beer per year. If the | ||||||
8 | first-class wine-manufacturer manufactures spirits, it shall | ||||||
9 | also obtain and shall only be eligible for, in addition to any | ||||||
10 | current license, a class 1 craft distiller license, shall not | ||||||
11 | manufacture more than 50,000 gallons of spirits per year, and | ||||||
12 | shall not be a member of or affiliated with, directly or | ||||||
13 | indirectly, a manufacturer that produces more than 50,000 | ||||||
14 | gallons of spirits per year. A first-class wine-manufacturer | ||||||
15 | shall be permitted to sell wine manufactured at the | ||||||
16 | first-class wine-manufacturer premises to non-licensees. | ||||||
17 | Class 5. A second class Wine manufacturer may make sales | ||||||
18 | and deliveries
of more than 50,000 gallons of wine to | ||||||
19 | manufacturers, importing distributors
and distributors and to | ||||||
20 | no other licensees. | ||||||
21 | Class 6. A first-class wine-maker's license shall allow | ||||||
22 | the manufacture
of up to 50,000 gallons of wine per year, and | ||||||
23 | the
storage
and sale of such
wine to distributors in the State | ||||||
24 | and to persons without the
State, as may be permitted by law. A | ||||||
25 | person who, prior to June 1, 2008 (the effective date of Public | ||||||
26 | Act 95-634), is a holder of a first-class wine-maker's license |
| |||||||
| |||||||
1 | and annually produces more than 25,000 gallons of its own wine | ||||||
2 | and who distributes its wine to licensed retailers shall cease | ||||||
3 | this practice on or before July 1, 2008 in compliance with | ||||||
4 | Public Act 95-634. If a first-class wine-maker manufactures | ||||||
5 | beer, it shall also obtain and shall only be eligible for, in | ||||||
6 | addition to any current license, a class 1 brewer license, | ||||||
7 | shall not manufacture more than 930,000 gallons of beer per | ||||||
8 | year, and shall not be a member of or affiliated with, directly | ||||||
9 | or indirectly, a manufacturer that produces more than 930,000 | ||||||
10 | gallons of beer per year. If the first-class wine-maker | ||||||
11 | manufactures spirits, it shall also obtain and shall only be | ||||||
12 | eligible for, in addition to any current license, a class 1 | ||||||
13 | craft distiller license, shall not manufacture more than | ||||||
14 | 50,000 gallons of spirits per year, and shall not be a member | ||||||
15 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
16 | that produces more than 50,000 gallons of spirits per year. A | ||||||
17 | first-class wine-maker holding a class 1 brewer license or a | ||||||
18 | class 1 craft distiller license shall not be eligible for a | ||||||
19 | wine-maker's premises license but shall be permitted to sell | ||||||
20 | wine manufactured at the first-class wine-maker premises to | ||||||
21 | non-licensees. | ||||||
22 | Class 7. A second-class wine-maker's license shall allow | ||||||
23 | the manufacture
of up to between 50,000 and 150,000 gallons of | ||||||
24 | wine per year, and
the
storage and sale of such wine
to | ||||||
25 | distributors in this State and to persons without the State, | ||||||
26 | as may be
permitted by law. A person who, prior to June 1, 2008 |
| |||||||
| |||||||
1 | (the effective date of Public Act 95-634), is a holder of a | ||||||
2 | second-class wine-maker's license and annually produces more | ||||||
3 | than 25,000 gallons of its own wine and who distributes its | ||||||
4 | wine to licensed retailers shall cease this practice on or | ||||||
5 | before July 1, 2008 in compliance with Public Act 95-634. If a | ||||||
6 | second-class wine-maker manufactures beer, it shall also | ||||||
7 | obtain and shall only be eligible for, in addition to any | ||||||
8 | current license, a class 2 brewer license, shall not | ||||||
9 | manufacture more than 3,720,000 gallons of beer per year, and | ||||||
10 | shall not be a member of or affiliated with, directly or | ||||||
11 | indirectly, a manufacturer that produces more than 3,720,000 | ||||||
12 | gallons of beer per year. If a second-class wine-maker | ||||||
13 | manufactures spirits, it shall also obtain and shall only be | ||||||
14 | eligible for, in addition to any current license, a class 2 | ||||||
15 | craft distiller license, shall not manufacture more than | ||||||
16 | 100,000 gallons of spirits per year, and shall not be a member | ||||||
17 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
18 | that produces more than 100,000 gallons of spirits per year. | ||||||
19 | Class 8. A limited wine-manufacturer may make sales and | ||||||
20 | deliveries not to
exceed 40,000 gallons of wine per year to | ||||||
21 | distributors, and to
non-licensees in accordance with the | ||||||
22 | provisions of this Act. | ||||||
23 | Class 9. A craft distiller license, which may only be held | ||||||
24 | by a class 1 craft distiller licensee or class 2 craft | ||||||
25 | distiller licensee but not held by both a class 1 craft | ||||||
26 | distiller licensee and a class 2 craft distiller licensee, |
| |||||||
| |||||||
1 | shall grant all rights conveyed by either: (i) a class 1 craft | ||||||
2 | distiller license if the craft distiller holds a class 1 craft | ||||||
3 | distiller license; or (ii) a class 2 craft distiller licensee | ||||||
4 | if the craft distiller holds a class 2 craft distiller | ||||||
5 | license. | ||||||
6 | Class 10. A class 1 craft distiller license, which may | ||||||
7 | only be issued to a licensed craft distiller or licensed | ||||||
8 | non-resident dealer, shall allow the manufacture of up to | ||||||
9 | 50,000 gallons of spirits per year provided that the class 1 | ||||||
10 | craft distiller licensee does not manufacture more than a | ||||||
11 | combined 50,000 gallons of spirits per year and is not a member | ||||||
12 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
13 | that produces more than 50,000 gallons of spirits per year or | ||||||
14 | any other alcoholic liquor . If a class 1 craft distiller | ||||||
15 | manufactures beer, it shall also obtain and shall only be | ||||||
16 | eligible for, in addition to any current license, a class 1 | ||||||
17 | brewer license, shall not manufacture more than 930,000 | ||||||
18 | gallons of beer per year, and shall not be a member of or | ||||||
19 | affiliated with, directly or indirectly, a manufacturer that | ||||||
20 | produces more than 930,000 gallons of beer per year. If a class | ||||||
21 | 1 craft distiller manufactures wine, it shall also obtain and | ||||||
22 | shall only be eligible for, in addition to any current | ||||||
23 | license, a first-class wine-manufacturer license or a | ||||||
24 | first-class wine-maker's license, shall not manufacture more | ||||||
25 | than 50,000 gallons of wine per year, and shall not be a member | ||||||
26 | of or affiliated with, directly or indirectly, a manufacturer |
| |||||||
| |||||||
1 | that produces more than 50,000 gallons of wine per year. A | ||||||
2 | class 1 craft distiller licensee may make sales and deliveries | ||||||
3 | to importing distributors and distributors and to retail | ||||||
4 | licensees in accordance with the conditions set forth in | ||||||
5 | paragraph (19) of subsection (a) of Section 3-12 of this Act. | ||||||
6 | However, the aggregate amount of spirits sold to non-licensees | ||||||
7 | and sold or delivered to retail licensees may not exceed 5,000 | ||||||
8 | gallons per year. | ||||||
9 | A class 1 craft distiller licensee may sell up to 5,000 | ||||||
10 | gallons of such spirits to non-licensees to the extent | ||||||
11 | permitted by any exemption approved by the State Commission | ||||||
12 | pursuant to Section 6-4 of this Act. A class 1 craft distiller | ||||||
13 | license holder may store such spirits at a non-contiguous | ||||||
14 | licensed location, but at no time shall a class 1 craft | ||||||
15 | distiller license holder directly or indirectly produce in the | ||||||
16 | aggregate more than 50,000 gallons of spirits per year. | ||||||
17 | A class 1 craft distiller licensee may hold more than one | ||||||
18 | class 1 craft distiller's license. However, a class 1 craft | ||||||
19 | distiller that holds more than one class 1 craft distiller | ||||||
20 | license shall not manufacture, in the aggregate, more than | ||||||
21 | 50,000 gallons of spirits by distillation per year and shall | ||||||
22 | not sell, in the aggregate, more than 5,000 gallons of such | ||||||
23 | spirits to non-licensees in accordance with an exemption | ||||||
24 | approved by the State Commission pursuant to Section 6-4 of | ||||||
25 | this Act. | ||||||
26 | Class 11. A class 2 craft distiller license, which may |
| |||||||
| |||||||
1 | only be issued to a licensed craft distiller or licensed | ||||||
2 | non-resident dealer, shall allow the manufacture of up to | ||||||
3 | 100,000 gallons of spirits per year provided that the class 2 | ||||||
4 | craft distiller licensee does not manufacture more than a | ||||||
5 | combined 100,000 gallons of spirits per year and is not a | ||||||
6 | member of or affiliated with, directly or indirectly, a | ||||||
7 | manufacturer that produces more than 100,000 gallons of | ||||||
8 | spirits per year or any other alcoholic liquor . If a class 2 | ||||||
9 | craft distiller manufactures beer, it shall also obtain and | ||||||
10 | shall only be eligible for, in addition to any current | ||||||
11 | license, a class 2 brewer license, shall not manufacture more | ||||||
12 | than 3,720,000 gallons of beer per year, and shall not be a | ||||||
13 | member of or affiliated with, directly or indirectly, a | ||||||
14 | manufacturer that produces more than 3,720,000 gallons of beer | ||||||
15 | per year. If a class 2 craft distiller manufactures wine, it | ||||||
16 | shall also obtain and shall only be eligible for, in addition | ||||||
17 | to any current license, a second-class wine-maker's license, | ||||||
18 | shall not manufacture more than 150,000 gallons of wine per | ||||||
19 | year, and shall not be a member of or affiliated with, directly | ||||||
20 | or indirectly, a manufacturer that produces more than 150,000 | ||||||
21 | gallons of wine per year. A class 2 craft distiller licensee | ||||||
22 | may make sales and deliveries to importing distributors and | ||||||
23 | distributors, but shall not make sales or deliveries to any | ||||||
24 | other licensee. If the State Commission provides prior | ||||||
25 | approval, a class 2 craft distiller licensee may annually | ||||||
26 | transfer up to 100,000 gallons of spirits manufactured by that |
| |||||||
| |||||||
1 | class 2 craft distiller licensee to the premises of a licensed | ||||||
2 | class 2 craft distiller wholly owned and operated by the same | ||||||
3 | licensee. A class 2 craft distiller may transfer spirits to a | ||||||
4 | distilling pub wholly owned and operated by the class 2 craft | ||||||
5 | distiller subject to the following limitations and | ||||||
6 | restrictions: (i) the transfer shall not annually exceed more | ||||||
7 | than 5,000 gallons; (ii) the annual amount transferred shall | ||||||
8 | reduce the distilling pub's annual permitted production limit; | ||||||
9 | (iii) all spirits transferred shall be subject to Article VIII | ||||||
10 | of this Act; (iv) a written record shall be maintained by the | ||||||
11 | distiller and distilling pub specifying the amount, date of | ||||||
12 | delivery, and receipt of the product by the distilling pub; | ||||||
13 | and (v) the distilling pub shall be located no farther than 80 | ||||||
14 | miles from the class 2 craft distiller's licensed location. | ||||||
15 | A class 2 craft distiller shall, prior to transferring | ||||||
16 | spirits to a distilling pub wholly owned by the class 2 craft | ||||||
17 | distiller, furnish a written notice to the State Commission of | ||||||
18 | intent to transfer spirits setting forth the name and address | ||||||
19 | of the distilling pub and shall annually submit to the State | ||||||
20 | Commission a verified report identifying the total gallons of | ||||||
21 | spirits transferred to the distilling pub wholly owned by the | ||||||
22 | class 2 craft distiller. | ||||||
23 | A class 2 craft distiller license holder may store such | ||||||
24 | spirits at a non-contiguous licensed location, but at no time | ||||||
25 | shall a class 2 craft distiller license holder directly or | ||||||
26 | indirectly produce in the aggregate more than 100,000 gallons |
| |||||||
| |||||||
1 | of spirits per year. | ||||||
2 | Class 12. A class 1 brewer license, which may only be | ||||||
3 | issued to a licensed brewer or licensed non-resident dealer, | ||||||
4 | shall allow the manufacture of up to 930,000 gallons of beer | ||||||
5 | per year provided that the class 1 brewer licensee does not | ||||||
6 | manufacture more than a combined 930,000 gallons of beer per | ||||||
7 | year and is not a member of or affiliated with, directly or | ||||||
8 | indirectly, a manufacturer that produces more than 930,000 | ||||||
9 | gallons of beer per year or any other alcoholic liquor . If a | ||||||
10 | class 1 brewer manufactures spirits, it shall also obtain and | ||||||
11 | shall only be eligible for, in addition to any current | ||||||
12 | license, a class 1 craft distiller license, shall not | ||||||
13 | manufacture more than 50,000 gallons of spirits per year, and | ||||||
14 | shall not be a member of or affiliated with, directly or | ||||||
15 | indirectly, a manufacturer that produces more than 50,000 | ||||||
16 | gallons of spirits per year. If a class 1 craft brewer | ||||||
17 | manufactures wine, it shall also obtain and shall only be | ||||||
18 | eligible for, in addition to any current license, a | ||||||
19 | first-class wine-manufacturer license or a first-class | ||||||
20 | wine-maker's license, shall not manufacture more than 50,000 | ||||||
21 | gallons of wine per year, and shall not be a member of or | ||||||
22 | affiliated with, directly or indirectly, a manufacturer that | ||||||
23 | produces more than 50,000 gallons of wine per year. A class 1 | ||||||
24 | brewer licensee may make sales and deliveries to importing | ||||||
25 | distributors and distributors and to retail licensees in | ||||||
26 | accordance with the conditions set forth in paragraph (18) of |
| |||||||
| |||||||
1 | subsection (a) of Section 3-12 of this Act. If the State | ||||||
2 | Commission provides prior approval, a class 1 brewer may | ||||||
3 | annually transfer up to 930,000 gallons of beer manufactured | ||||||
4 | by that class 1 brewer to the premises of a licensed class 1 | ||||||
5 | brewer wholly owned and operated by the same licensee. | ||||||
6 | Class 13. A class 2 brewer license, which may only be | ||||||
7 | issued to a licensed brewer or licensed non-resident dealer, | ||||||
8 | shall allow the manufacture of up to 3,720,000 gallons of beer | ||||||
9 | per year provided that the class 2 brewer licensee does not | ||||||
10 | manufacture more than a combined 3,720,000 gallons of beer per | ||||||
11 | year and is not a member of or affiliated with, directly or | ||||||
12 | indirectly, a manufacturer that produces more than 3,720,000 | ||||||
13 | gallons of beer per year or any other alcoholic liquor . If a | ||||||
14 | class 2 brewer manufactures spirits, it shall also obtain and | ||||||
15 | shall only be eligible for, in addition to any current | ||||||
16 | license, a class 2 craft distiller license, shall not | ||||||
17 | manufacture more than 100,000 gallons of spirits per year, and | ||||||
18 | shall not be a member of or affiliated with, directly or | ||||||
19 | indirectly, a manufacturer that produces more than 100,000 | ||||||
20 | gallons of spirits per year. If a class 2 craft distiller | ||||||
21 | manufactures wine, it shall also obtain and shall only be | ||||||
22 | eligible for, in addition to any current license, a | ||||||
23 | second-class wine-maker's license, shall not manufacture more | ||||||
24 | than 150,000 gallons of wine per year, and shall not be a | ||||||
25 | member of or affiliated with, directly or indirectly, a | ||||||
26 | manufacturer that produces more than 150,000 gallons of wine a |
| |||||||
| |||||||
1 | year. A class 2 brewer licensee may make sales and deliveries | ||||||
2 | to importing distributors and distributors, but shall not make | ||||||
3 | sales or deliveries to any other licensee. If the State | ||||||
4 | Commission provides prior approval, a class 2 brewer licensee | ||||||
5 | may annually transfer up to 3,720,000 gallons of beer | ||||||
6 | manufactured by that class 2 brewer licensee to the premises | ||||||
7 | of a licensed class 2 brewer wholly owned and operated by the | ||||||
8 | same licensee. | ||||||
9 | A class 2 brewer may transfer beer to a brew pub wholly | ||||||
10 | owned and operated by the class 2 brewer subject to the | ||||||
11 | following limitations and restrictions: (i) the transfer shall | ||||||
12 | not annually exceed more than 31,000 gallons; (ii) the annual | ||||||
13 | amount transferred shall reduce the brew pub's annual | ||||||
14 | permitted production limit; (iii) all beer transferred shall | ||||||
15 | be subject to Article VIII of this Act; (iv) a written record | ||||||
16 | shall be maintained by the brewer and brew pub specifying the | ||||||
17 | amount, date of delivery, and receipt of the product by the | ||||||
18 | brew pub; and (v) the brew pub shall be located no farther than | ||||||
19 | 80 miles from the class 2 brewer's licensed location. | ||||||
20 | A class 2 brewer shall, prior to transferring beer to a | ||||||
21 | brew pub wholly owned by the class 2 brewer, furnish a written | ||||||
22 | notice to the State Commission of intent to transfer beer | ||||||
23 | setting forth the name and address of the brew pub and shall | ||||||
24 | annually submit to the State Commission a verified report | ||||||
25 | identifying the total gallons of beer transferred to the brew | ||||||
26 | pub wholly owned by the class 2 brewer. |
| |||||||
| |||||||
1 | Class 14. A class 3 brewer license, which may be issued to | ||||||
2 | a brewer or a non-resident dealer, shall allow the manufacture | ||||||
3 | of no more than 465,000 gallons of beer per year and no more | ||||||
4 | than 155,000 gallons at a single brewery premises, and shall | ||||||
5 | allow the sale of no more than 6,200 gallons of beer from each | ||||||
6 | in-state or out-of-state class 3 brewery premises, or 18,600 | ||||||
7 | gallons in the aggregate, to retail licensees, class 1 | ||||||
8 | brewers, class 2 brewers, and class 3 brewers as long as the | ||||||
9 | class 3 brewer licensee does not manufacture more than a | ||||||
10 | combined 465,000 gallons of beer per year and is not a member | ||||||
11 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
12 | that produces more than 465,000 gallons of beer per year to | ||||||
13 | make sales to importing distributors, distributors, retail | ||||||
14 | licensees, brewers, class 1 brewers, class 2 brewers, and | ||||||
15 | class 3 brewers in accordance with the conditions set forth in | ||||||
16 | paragraph (20) of subsection (a) of Section 3-12. If the State | ||||||
17 | Commission provides prior approval, a class 3 brewer may | ||||||
18 | annually transfer up to 155,000 gallons of beer manufactured | ||||||
19 | by that class 3 brewer to the premises of a licensed class 3 | ||||||
20 | brewer wholly owned and operated by the same licensee. A class | ||||||
21 | 3 brewer shall manufacture beer at the brewer's class 3 | ||||||
22 | designated licensed premises, and may sell beer as otherwise | ||||||
23 | provided in this Act. | ||||||
24 | (a-1) A manufacturer which is licensed in this State to | ||||||
25 | make sales or
deliveries of alcoholic liquor to licensed | ||||||
26 | distributors or importing distributors and which enlists |
| |||||||
| |||||||
1 | agents, representatives, or
individuals acting on its behalf | ||||||
2 | who contact licensed retailers on a regular
and continual | ||||||
3 | basis in this State must register those agents, | ||||||
4 | representatives,
or persons acting on its behalf with the | ||||||
5 | State Commission. | ||||||
6 | Registration of agents, representatives, or persons acting | ||||||
7 | on behalf of a
manufacturer is fulfilled by submitting a form | ||||||
8 | to the Commission. The form
shall be developed by the | ||||||
9 | Commission and shall include the name and address of
the | ||||||
10 | applicant, the name and address of the manufacturer he or she | ||||||
11 | represents,
the territory or areas assigned to sell to or | ||||||
12 | discuss pricing terms of
alcoholic liquor, and any other | ||||||
13 | questions deemed appropriate and necessary.
All statements in | ||||||
14 | the forms required to be made by law or by rule shall be
deemed | ||||||
15 | material, and any person who knowingly misstates any material | ||||||
16 | fact under
oath in an application is guilty of a Class B | ||||||
17 | misdemeanor. Fraud,
misrepresentation, false statements, | ||||||
18 | misleading statements, evasions, or
suppression of material | ||||||
19 | facts in the securing of a registration are grounds for
| ||||||
20 | suspension or revocation of the registration. The State | ||||||
21 | Commission shall post a list of registered agents on the | ||||||
22 | Commission's website. | ||||||
23 | (b) A distributor's license shall allow (i) the wholesale | ||||||
24 | purchase and storage
of alcoholic liquors and sale of | ||||||
25 | alcoholic liquors to licensees in this State and to persons | ||||||
26 | without the State, as may be permitted by law; (ii) the sale of |
| |||||||
| |||||||
1 | beer, cider, mead, or any combination thereof or both beer and | ||||||
2 | cider to brewers, class 1 brewers, and class 2 brewers that, | ||||||
3 | pursuant to subsection (e) of Section 6-4 of this Act, sell | ||||||
4 | beer, cider, mead, or any combination thereof or both beer and | ||||||
5 | cider to non-licensees at their breweries; and (iii) the sale | ||||||
6 | of vermouth to class 1 craft distillers and class 2 craft | ||||||
7 | distillers that, pursuant to subsection (e) of Section 6-4 of | ||||||
8 | this Act, sell spirits, vermouth, or both spirits and vermouth | ||||||
9 | to non-licensees at their distilleries ; or (iv) as otherwise | ||||||
10 | provided in this Act . No person licensed as a distributor | ||||||
11 | shall be granted a non-resident dealer's license. | ||||||
12 | (c) An importing distributor's license may be issued to | ||||||
13 | and held by
those only who are duly licensed distributors, | ||||||
14 | upon the filing of an
application by a duly licensed | ||||||
15 | distributor, with the Commission and
the Commission shall, | ||||||
16 | without the
payment of any fee, immediately issue such | ||||||
17 | importing distributor's
license to the applicant, which shall | ||||||
18 | allow the importation of alcoholic
liquor by the licensee into | ||||||
19 | this State from any point in the United
States outside this | ||||||
20 | State, and the purchase of alcoholic liquor in
barrels, casks | ||||||
21 | or other bulk containers and the bottling of such
alcoholic | ||||||
22 | liquors before resale thereof, but all bottles or containers
| ||||||
23 | so filled shall be sealed, labeled, stamped and otherwise made | ||||||
24 | to comply
with all provisions, rules and regulations governing | ||||||
25 | manufacturers in
the preparation and bottling of alcoholic | ||||||
26 | liquors. The importing
distributor's license shall permit such |
| |||||||
| |||||||
1 | licensee to purchase alcoholic
liquor from Illinois licensed | ||||||
2 | non-resident dealers and foreign importers only. No person | ||||||
3 | licensed as an importing distributor shall be granted a | ||||||
4 | non-resident dealer's license. | ||||||
5 | (d) A retailer's license shall allow the licensee to sell | ||||||
6 | and offer
for sale at retail, only in the premises specified in | ||||||
7 | the license,
alcoholic liquor for use or consumption, but not | ||||||
8 | for resale in any form. Nothing in Public Act 95-634 shall | ||||||
9 | deny, limit, remove, or restrict the ability of a holder of a | ||||||
10 | retailer's license to transfer, deliver, or ship alcoholic | ||||||
11 | liquor to the purchaser for use or consumption subject to any | ||||||
12 | applicable local law or ordinance. Any retail license issued | ||||||
13 | to a manufacturer shall only
permit the manufacturer to sell | ||||||
14 | beer at retail on the premises actually
occupied by the | ||||||
15 | manufacturer. For the purpose of further describing the type | ||||||
16 | of business conducted at a retail licensed premises, a | ||||||
17 | retailer's licensee may be designated by the State Commission | ||||||
18 | as (i) an on premise consumption retailer, (ii) an off premise | ||||||
19 | sale retailer, or (iii) a combined on premise consumption and | ||||||
20 | off premise sale retailer.
| ||||||
21 | Notwithstanding any other provision of this subsection | ||||||
22 | (d), a retail
licensee may sell alcoholic liquors to a special | ||||||
23 | event retailer licensee for
resale to the extent permitted | ||||||
24 | under subsection (e). | ||||||
25 | (e) A special event retailer's license (not-for-profit) | ||||||
26 | shall permit the
licensee to purchase alcoholic liquors from |
| |||||||
| |||||||
1 | an Illinois licensed distributor
(unless the licensee | ||||||
2 | purchases less than $500 of alcoholic liquors for the
special | ||||||
3 | event, in which case the licensee may purchase the alcoholic | ||||||
4 | liquors
from a licensed retailer) and shall allow the licensee | ||||||
5 | to sell and offer for
sale, at retail, alcoholic liquors for | ||||||
6 | use or consumption, but not for resale
in any form and only at | ||||||
7 | the location and on the specific dates designated for
the | ||||||
8 | special event in the license. An applicant for a special event | ||||||
9 | retailer
license must
(i) furnish with the application: (A) a | ||||||
10 | resale number issued under Section
2c of the Retailers' | ||||||
11 | Occupation Tax Act or evidence that the applicant is
| ||||||
12 | registered under Section 2a of the Retailers' Occupation Tax | ||||||
13 | Act, (B) a
current, valid exemption identification
number | ||||||
14 | issued under Section 1g of the Retailers' Occupation Tax Act, | ||||||
15 | and a
certification to the Commission that the purchase of | ||||||
16 | alcoholic liquors will be
a tax-exempt purchase, or (C) a | ||||||
17 | statement that the applicant is not registered
under Section | ||||||
18 | 2a of the Retailers' Occupation Tax Act, does not hold a resale
| ||||||
19 | number under Section 2c of the Retailers' Occupation Tax Act, | ||||||
20 | and does not
hold an exemption number under Section 1g of the | ||||||
21 | Retailers' Occupation Tax
Act, in which event the Commission | ||||||
22 | shall set forth on the special event
retailer's license a | ||||||
23 | statement to that effect; (ii) submit with the application | ||||||
24 | proof satisfactory to
the State Commission that the applicant | ||||||
25 | will provide dram shop liability
insurance in the maximum | ||||||
26 | limits; and (iii) show proof satisfactory to the
State |
| |||||||
| |||||||
1 | Commission that the applicant has obtained local authority
| ||||||
2 | approval. | ||||||
3 | Nothing in this Act prohibits an Illinois licensed | ||||||
4 | distributor from offering credit or a refund for unused, | ||||||
5 | salable alcoholic liquors to a holder of a special event | ||||||
6 | retailer's license or the special event retailer's licensee | ||||||
7 | from accepting the credit or refund of alcoholic liquors at | ||||||
8 | the conclusion of the event specified in the license. | ||||||
9 | (f) A railroad license shall permit the licensee to import | ||||||
10 | alcoholic
liquors into this State from any point in the United | ||||||
11 | States outside this
State and to store such alcoholic liquors | ||||||
12 | in this State; to make wholesale
purchases of alcoholic | ||||||
13 | liquors directly from manufacturers, foreign
importers, | ||||||
14 | distributors and importing distributors from within or outside
| ||||||
15 | this State; and to store such alcoholic liquors in this State; | ||||||
16 | provided
that the above powers may be exercised only in | ||||||
17 | connection with the
importation, purchase or storage of | ||||||
18 | alcoholic liquors to be sold or
dispensed on a club, buffet, | ||||||
19 | lounge or dining car operated on an electric,
gas or steam | ||||||
20 | railway in this State; and provided further, that railroad
| ||||||
21 | licensees exercising the above powers shall be subject to all | ||||||
22 | provisions of
Article VIII of this Act as applied to importing | ||||||
23 | distributors. A railroad
license shall also permit the | ||||||
24 | licensee to sell or dispense alcoholic
liquors on any club, | ||||||
25 | buffet, lounge or dining car operated on an electric,
gas or | ||||||
26 | steam railway regularly operated by a common carrier in this |
| |||||||
| |||||||
1 | State,
but shall not permit the sale for resale of any | ||||||
2 | alcoholic liquors to any
licensee within this State. A license | ||||||
3 | shall be obtained for each car in which
such sales are made. | ||||||
4 | (g) A boat license shall allow the sale of alcoholic | ||||||
5 | liquor in
individual drinks, on any passenger boat regularly | ||||||
6 | operated as a common
carrier on navigable waters in this State | ||||||
7 | or on any riverboat operated
under
the Illinois Gambling Act, | ||||||
8 | which boat or riverboat maintains a public
dining room or | ||||||
9 | restaurant thereon. | ||||||
10 | (h) A non-beverage user's license shall allow the licensee | ||||||
11 | to
purchase alcoholic liquor from a licensed manufacturer or | ||||||
12 | importing
distributor, without the imposition of any tax upon | ||||||
13 | the business of such
licensed manufacturer or importing | ||||||
14 | distributor as to such alcoholic
liquor to be used by such | ||||||
15 | licensee solely for the non-beverage purposes
set forth in | ||||||
16 | subsection (a) of Section 8-1 of this Act, and
such licenses | ||||||
17 | shall be divided and classified and shall permit the
purchase, | ||||||
18 | possession and use of limited and stated quantities of
| ||||||
19 | alcoholic liquor as follows: | ||||||
20 | Class 1, not to exceed ......................... 500 gallons
| ||||||
21 | Class 2, not to exceed ....................... 1,000 gallons
| ||||||
22 | Class 3, not to exceed ....................... 5,000 gallons
| ||||||
23 | Class 4, not to exceed ...................... 10,000 gallons
| ||||||
24 | Class 5, not to exceed ....................... 50,000 gallons | ||||||
25 | (i) A wine-maker's premises license shall allow a
licensee | ||||||
26 | that concurrently holds a first-class wine-maker's license to |
| |||||||
| |||||||
1 | sell
and offer for sale at retail in the premises specified in | ||||||
2 | such license
not more than 50,000 gallons of the first-class | ||||||
3 | wine-maker's wine that is
made at the first-class wine-maker's | ||||||
4 | licensed premises per year for use or
consumption, but not for | ||||||
5 | resale in any form. A first-class wine-maker that concurrently | ||||||
6 | holds a class 1 brewer license or a class 1 craft distiller | ||||||
7 | license shall not be eligible to hold a wine-maker's premises | ||||||
8 | license. A wine-maker's premises
license shall allow a | ||||||
9 | licensee who concurrently holds a second-class
wine-maker's | ||||||
10 | license to sell and offer for sale at retail in the premises
| ||||||
11 | specified in such license up to 100,000 gallons of the
| ||||||
12 | second-class wine-maker's wine that is made at the | ||||||
13 | second-class wine-maker's
licensed premises per year
for use | ||||||
14 | or consumption but not for resale in any form. A wine-maker's | ||||||
15 | premises license shall allow a
licensee that concurrently | ||||||
16 | holds a first-class wine-maker's license or a second-class
| ||||||
17 | wine-maker's license to sell
and offer for sale at retail at | ||||||
18 | the premises specified in the wine-maker's premises license, | ||||||
19 | for use or consumption but not for resale in any form, any | ||||||
20 | beer, wine, and spirits purchased from a licensed distributor. | ||||||
21 | Upon approval from the
State Commission, a wine-maker's | ||||||
22 | premises license
shall allow the licensee to sell and offer | ||||||
23 | for sale at (i) the wine-maker's
licensed premises and (ii) at | ||||||
24 | up to 2 additional locations for use and
consumption and not | ||||||
25 | for resale. Each location shall require additional
licensing | ||||||
26 | per location as specified in Section 5-3 of this Act. A |
| |||||||
| |||||||
1 | wine-maker's premises licensee shall
secure liquor liability | ||||||
2 | insurance coverage in an amount at
least equal to the maximum | ||||||
3 | liability amounts set forth in
subsection (a) of Section 6-21 | ||||||
4 | of this Act.
| ||||||
5 | (j) An airplane license shall permit the licensee to | ||||||
6 | import
alcoholic liquors into this State from any point in the | ||||||
7 | United States
outside this State and to store such alcoholic | ||||||
8 | liquors in this State; to
make wholesale purchases of | ||||||
9 | alcoholic liquors directly from
manufacturers, foreign | ||||||
10 | importers, distributors and importing
distributors from within | ||||||
11 | or outside this State; and to store such
alcoholic liquors in | ||||||
12 | this State; provided that the above powers may be
exercised | ||||||
13 | only in connection with the importation, purchase or storage
| ||||||
14 | of alcoholic liquors to be sold or dispensed on an airplane; | ||||||
15 | and
provided further, that airplane licensees exercising the | ||||||
16 | above powers
shall be subject to all provisions of Article | ||||||
17 | VIII of this Act as
applied to importing distributors. An | ||||||
18 | airplane licensee shall also
permit the sale or dispensing of | ||||||
19 | alcoholic liquors on any passenger
airplane regularly operated | ||||||
20 | by a common carrier in this State, but shall
not permit the | ||||||
21 | sale for resale of any alcoholic liquors to any licensee
| ||||||
22 | within this State. A single airplane license shall be required | ||||||
23 | of an
airline company if liquor service is provided on board | ||||||
24 | aircraft in this
State. The annual fee for such license shall | ||||||
25 | be as determined in
Section 5-3. | ||||||
26 | (k) A foreign importer's license shall permit such |
| |||||||
| |||||||
1 | licensee to purchase
alcoholic liquor from Illinois licensed | ||||||
2 | non-resident dealers only, and to
import alcoholic liquor | ||||||
3 | other than in bulk from any point outside the
United States and | ||||||
4 | to sell such alcoholic liquor to Illinois licensed
importing | ||||||
5 | distributors and to no one else in Illinois;
provided that (i) | ||||||
6 | the foreign importer registers with the State Commission
every
| ||||||
7 | brand of
alcoholic liquor that it proposes to sell to Illinois | ||||||
8 | licensees during the
license period, (ii) the foreign importer | ||||||
9 | complies with all of the provisions
of Section
6-9 of this Act | ||||||
10 | with respect to registration of such Illinois licensees as may
| ||||||
11 | be granted the
right to sell such brands at wholesale, and | ||||||
12 | (iii) the foreign importer complies with the provisions of | ||||||
13 | Sections 6-5 and 6-6 of this Act to the same extent that these | ||||||
14 | provisions apply to manufacturers. | ||||||
15 | (l) (i) A broker's license shall be required of all | ||||||
16 | persons
who solicit
orders for, offer to sell or offer to | ||||||
17 | supply alcoholic liquor to
retailers in the State of Illinois, | ||||||
18 | or who offer to retailers to ship or
cause to be shipped or to | ||||||
19 | make contact with distillers, craft distillers, rectifiers,
| ||||||
20 | brewers or manufacturers or any other party within or without | ||||||
21 | the State
of Illinois in order that alcoholic liquors be | ||||||
22 | shipped to a distributor,
importing distributor or foreign | ||||||
23 | importer, whether such solicitation or
offer is consummated | ||||||
24 | within or without the State of Illinois. | ||||||
25 | No holder of a retailer's license issued by the Illinois | ||||||
26 | Liquor
Control Commission shall purchase or receive any |
| |||||||
| |||||||
1 | alcoholic liquor, the
order for which was solicited or offered | ||||||
2 | for sale to such retailer by a
broker unless the broker is the | ||||||
3 | holder of a valid broker's license. | ||||||
4 | The broker shall, upon the acceptance by a retailer of the | ||||||
5 | broker's
solicitation of an order or offer to sell or supply or | ||||||
6 | deliver or have
delivered alcoholic liquors, promptly forward | ||||||
7 | to the Illinois Liquor
Control Commission a notification of | ||||||
8 | said transaction in such form as
the Commission may by | ||||||
9 | regulations prescribe. | ||||||
10 | (ii) A broker's license shall be required of
a person | ||||||
11 | within this State, other than a retail licensee,
who, for a fee | ||||||
12 | or commission, promotes, solicits, or accepts orders for
| ||||||
13 | alcoholic liquor, for use or consumption and not for
resale, | ||||||
14 | to be shipped from this State and delivered to residents | ||||||
15 | outside of
this State by an express company, common carrier, | ||||||
16 | or contract carrier.
This Section does not apply to any person | ||||||
17 | who promotes, solicits, or accepts
orders for wine as | ||||||
18 | specifically authorized in Section 6-29 of this Act. | ||||||
19 | A broker's license under this subsection (l)
shall not | ||||||
20 | entitle the holder to
buy or sell any
alcoholic liquors for his | ||||||
21 | own account or to take or deliver title to
such alcoholic | ||||||
22 | liquors. | ||||||
23 | This subsection (l)
shall not apply to distributors, | ||||||
24 | employees of
distributors, or employees of a manufacturer who | ||||||
25 | has registered the
trademark, brand or name of the alcoholic | ||||||
26 | liquor pursuant to Section 6-9
of this Act, and who regularly |
| |||||||
| |||||||
1 | sells such alcoholic liquor
in the State of Illinois only to | ||||||
2 | its registrants thereunder. | ||||||
3 | Any agent, representative, or person subject to | ||||||
4 | registration pursuant to
subsection (a-1) of this Section | ||||||
5 | shall not be eligible to receive a broker's
license. | ||||||
6 | (m) A non-resident dealer's license shall permit such | ||||||
7 | licensee to ship
into and warehouse alcoholic liquor into this | ||||||
8 | State from any point
outside of this State, and to sell such | ||||||
9 | alcoholic liquor to Illinois licensed
foreign importers and | ||||||
10 | importing distributors and to no one else in this State;
| ||||||
11 | provided that (i) said non-resident dealer shall register with | ||||||
12 | the Illinois Liquor
Control Commission each and every brand of | ||||||
13 | alcoholic liquor which it proposes
to sell to Illinois | ||||||
14 | licensees during the license period, (ii) it shall comply with | ||||||
15 | all of the provisions of Section 6-9 hereof with
respect to | ||||||
16 | registration of such Illinois licensees as may be granted the | ||||||
17 | right
to sell such brands at wholesale by duly filing such | ||||||
18 | registration statement, thereby authorizing the non-resident | ||||||
19 | dealer to proceed to sell such brands at wholesale, and (iii) | ||||||
20 | the non-resident dealer shall comply with the provisions of | ||||||
21 | Sections 6-5 and 6-6 of this Act to the same extent that these | ||||||
22 | provisions apply to manufacturers. No person licensed as a | ||||||
23 | non-resident dealer shall be granted a distributor's or | ||||||
24 | importing distributor's license. | ||||||
25 | (n) A brew pub license shall allow the licensee to only (i) | ||||||
26 | manufacture up to 155,000 gallons of beer per year only
on the |
| |||||||
| |||||||
1 | premises specified in the license, (ii) make sales of the
beer | ||||||
2 | manufactured on the premises or, with the approval of the | ||||||
3 | Commission, beer manufactured on another brew pub licensed | ||||||
4 | premises that is wholly owned and operated by the same | ||||||
5 | licensee to importing distributors, distributors,
and to | ||||||
6 | non-licensees for use and consumption, (iii) store the beer | ||||||
7 | upon
the premises, (iv) sell and offer for sale at retail from | ||||||
8 | the licensed
premises for off-premises
consumption no more | ||||||
9 | than 155,000 gallons per year so long as such sales are only | ||||||
10 | made in-person, (v) sell and offer for sale at retail for use | ||||||
11 | and consumption on the premises specified in the license any | ||||||
12 | form of alcoholic liquor purchased from a licensed distributor | ||||||
13 | or importing distributor, (vi) with the prior approval of the | ||||||
14 | Commission, annually transfer no more than 155,000 gallons of | ||||||
15 | beer manufactured on the premises to a licensed brew pub | ||||||
16 | wholly owned and operated by the same licensee, and (vii) | ||||||
17 | notwithstanding item (i) of this subsection, brew pubs wholly | ||||||
18 | owned and operated by the same licensee may combine each | ||||||
19 | location's production limit of 155,000 gallons of beer per | ||||||
20 | year and allocate the aggregate total between the wholly | ||||||
21 | owned, operated, and licensed locations. | ||||||
22 | A brew pub licensee shall not under any circumstance sell | ||||||
23 | or offer for sale beer manufactured by the brew pub licensee to | ||||||
24 | retail licensees. | ||||||
25 | A person who holds a class 2 brewer license may | ||||||
26 | simultaneously hold a brew pub license if the class 2 brewer |
| |||||||
| |||||||
1 | (i) does not, under any circumstance, sell or offer for sale | ||||||
2 | beer manufactured by the class 2 brewer to retail licensees; | ||||||
3 | (ii) does not hold more than 3 brew pub licenses in this State; | ||||||
4 | (iii) does not manufacture more than a combined 3,720,000 | ||||||
5 | gallons of beer per year, including the beer manufactured at | ||||||
6 | the brew pub; and (iv) is not a member of or affiliated with, | ||||||
7 | directly or indirectly, a manufacturer that produces more than | ||||||
8 | 3,720,000 gallons of beer per year or any other alcoholic | ||||||
9 | liquor. | ||||||
10 | Notwithstanding any other provision of this Act, a | ||||||
11 | licensed brewer, class 2 brewer, or non-resident dealer who | ||||||
12 | before July 1, 2015 manufactured less than 3,720,000 gallons | ||||||
13 | of beer per year and held a brew pub license on or before July | ||||||
14 | 1, 2015 may (i) continue to qualify for and hold that brew pub | ||||||
15 | license for the licensed premises and (ii) manufacture more | ||||||
16 | than 3,720,000 gallons of beer per year and continue to | ||||||
17 | qualify for and hold that brew pub license if that brewer, | ||||||
18 | class 2 brewer, or non-resident dealer does not simultaneously | ||||||
19 | hold a class 1 brewer license and is not a member of or | ||||||
20 | affiliated with, directly or indirectly, a manufacturer that | ||||||
21 | produces more than 3,720,000 gallons of beer per year or that | ||||||
22 | produces any other alcoholic liquor. | ||||||
23 | A brew pub licensee may apply for a class 3 brewer license | ||||||
24 | and upon: (i) meeting all applicable qualifications of this | ||||||
25 | Act, and relinquishing all commonly owned brew pub or retail | ||||||
26 | licenses shall be issued a class 3 brewer license. Nothing in |
| |||||||
| |||||||
1 | this Act shall prohibit the issuance of a class 3 brewer | ||||||
2 | license if the applicant: | ||||||
3 | (1) has a valid retail license on or before May 1, | ||||||
4 | 2021; | ||||||
5 | (2) has an ownership interest in at least two brew | ||||||
6 | pubs licenses on or before May 1, 2021; | ||||||
7 | (3) the brew pub licensee applies for a class 3 brewer | ||||||
8 | license on or before October 1, 2022 and relinquishes all | ||||||
9 | commonly owned brew pub licenses; and | ||||||
10 | (4) relinquishes all commonly owned retail licenses on | ||||||
11 | or before December 31, 2022. | ||||||
12 | If a brew pub licensee is issued a class 3 brewer license, | ||||||
13 | the class 3 brewer license shall expire on the same date as the | ||||||
14 | existing brew pub license and the State Commission shall not | ||||||
15 | require a class 3 brewer licensee to obtain a brewer license, | ||||||
16 | or in the alternative to pay a fee for a brewer license, until | ||||||
17 | the date the brew pub license of the applicant would have | ||||||
18 | expired. | ||||||
19 | (o) A caterer retailer license shall allow the holder
to | ||||||
20 | serve alcoholic liquors as an incidental part of a food | ||||||
21 | service that serves
prepared meals which excludes the serving | ||||||
22 | of snacks as
the primary meal, either on or off-site whether | ||||||
23 | licensed or unlicensed. A caterer retailer license shall allow | ||||||
24 | the holder, a distributor, or an importing distributor to | ||||||
25 | transfer any inventory to and from the holder's retail | ||||||
26 | premises and shall allow the holder to purchase alcoholic |
| |||||||
| |||||||
1 | liquor from a distributor or importing distributor to be | ||||||
2 | delivered directly to an off-site event. | ||||||
3 | Nothing in this Act prohibits a distributor or importing | ||||||
4 | distributor from offering credit or a refund for unused, | ||||||
5 | salable beer to a holder of a caterer retailer license or a | ||||||
6 | caterer retailer licensee from accepting a credit or refund | ||||||
7 | for unused, salable beer, in the event an act of God is the | ||||||
8 | sole reason an off-site event is cancelled and if: (i) the | ||||||
9 | holder of a caterer retailer license has not transferred | ||||||
10 | alcoholic liquor from its caterer retailer premises to an | ||||||
11 | off-site location; (ii) the distributor or importing | ||||||
12 | distributor offers the credit or refund for the unused, | ||||||
13 | salable beer that it delivered to the off-site premises and | ||||||
14 | not for any unused, salable beer that the distributor or | ||||||
15 | importing distributor delivered to the caterer retailer's | ||||||
16 | premises; and (iii) the unused, salable beer would likely | ||||||
17 | spoil if transferred to the caterer retailer's premises. A | ||||||
18 | caterer retailer license shall allow the holder to transfer | ||||||
19 | any inventory from any off-site location to its caterer | ||||||
20 | retailer premises at the conclusion of an off-site event or | ||||||
21 | engage a distributor or importing distributor to transfer any | ||||||
22 | inventory from any off-site location to its caterer retailer | ||||||
23 | premises at the conclusion of an off-site event, provided that | ||||||
24 | the distributor or importing distributor issues bona fide | ||||||
25 | charges to the caterer retailer licensee for fuel, labor, and | ||||||
26 | delivery and the distributor or importing distributor collects |
| |||||||
| |||||||
1 | payment from the caterer retailer licensee prior to the | ||||||
2 | distributor or importing distributor transferring inventory to | ||||||
3 | the caterer retailer premises. | ||||||
4 | For purposes of this subsection (o), an "act of God" means | ||||||
5 | an unforeseeable event, such as a rain or snow storm, hail, a | ||||||
6 | flood, or a similar event, that is the sole cause of the | ||||||
7 | cancellation of an off-site, outdoor event. | ||||||
8 | (p) An auction liquor license shall allow the licensee to | ||||||
9 | sell and offer
for sale at auction wine and spirits for use or | ||||||
10 | consumption, or for resale by
an Illinois liquor licensee in | ||||||
11 | accordance with provisions of this Act. An
auction liquor | ||||||
12 | license will be issued to a person and it will permit the
| ||||||
13 | auction liquor licensee to hold the auction anywhere in the | ||||||
14 | State. An auction
liquor license must be obtained for each | ||||||
15 | auction at least 14 days in advance of
the auction date. | ||||||
16 | (q) A special use permit license shall allow an Illinois | ||||||
17 | licensed
retailer to transfer a portion of its alcoholic | ||||||
18 | liquor inventory from its
retail licensed premises to the | ||||||
19 | premises specified in the license hereby
created; to purchase | ||||||
20 | alcoholic liquor from a distributor or importing distributor | ||||||
21 | to be delivered directly to the location specified in the | ||||||
22 | license hereby created; and to sell or offer for sale at | ||||||
23 | retail, only in the premises
specified in the license hereby | ||||||
24 | created, the transferred or delivered alcoholic liquor for
use | ||||||
25 | or consumption, but not for resale in any form. A special use | ||||||
26 | permit
license may be granted for the following time periods: |
| |||||||
| |||||||
1 | one day or less; 2 or
more days to a maximum of 15 days per | ||||||
2 | location in any 12-month period. An
applicant for the special | ||||||
3 | use permit license must also submit with the
application proof | ||||||
4 | satisfactory to the State Commission that the applicant will
| ||||||
5 | provide dram shop liability insurance to the maximum limits | ||||||
6 | and have local
authority approval. | ||||||
7 | A special use permit license shall allow the holder to | ||||||
8 | transfer any inventory from the holder's special use premises | ||||||
9 | to its retail premises at the conclusion of the special use | ||||||
10 | event or engage a distributor or importing distributor to | ||||||
11 | transfer any inventory from the holder's special use premises | ||||||
12 | to its retail premises at the conclusion of an off-site event, | ||||||
13 | provided that the distributor or importing distributor issues | ||||||
14 | bona fide charges to the special use permit licensee for fuel, | ||||||
15 | labor, and delivery and the distributor or importing | ||||||
16 | distributor collects payment from the retail licensee prior to | ||||||
17 | the distributor or importing distributor transferring | ||||||
18 | inventory to the retail premises. | ||||||
19 | Nothing in this Act prohibits a distributor or importing | ||||||
20 | distributor from offering credit or a refund for unused, | ||||||
21 | salable beer to a special use permit licensee or a special use | ||||||
22 | permit licensee from accepting a credit or refund for unused, | ||||||
23 | salable beer at the conclusion of the event specified in the | ||||||
24 | license if: (i) the holder of the special use permit license | ||||||
25 | has not transferred alcoholic liquor from its retail licensed | ||||||
26 | premises to the premises specified in the special use permit |
| |||||||
| |||||||
1 | license; (ii) the distributor or importing distributor offers | ||||||
2 | the credit or refund for the unused, salable beer that it | ||||||
3 | delivered to the premises specified in the special use permit | ||||||
4 | license and not for any unused, salable beer that the | ||||||
5 | distributor or importing distributor delivered to the | ||||||
6 | retailer's premises; and (iii) the unused, salable beer would | ||||||
7 | likely spoil if transferred to the retailer premises. | ||||||
8 | (r) A winery shipper's license shall allow a person
with a | ||||||
9 | first-class or second-class wine manufacturer's
license, a | ||||||
10 | first-class or second-class wine-maker's license,
or a limited | ||||||
11 | wine manufacturer's license or who is licensed to
make wine | ||||||
12 | under the laws of another state to ship wine
made by that | ||||||
13 | licensee directly to a resident of this
State who is 21 years | ||||||
14 | of age or older for that resident's
personal use and not for | ||||||
15 | resale. Prior to receiving a
winery shipper's license, an | ||||||
16 | applicant for the license must
provide the Commission with a | ||||||
17 | true copy of its current
license in any state in which it is | ||||||
18 | licensed as a manufacturer
of wine. An applicant for a winery | ||||||
19 | shipper's license must
also complete an application form that | ||||||
20 | provides any other
information the Commission deems necessary. | ||||||
21 | The application form shall include all addresses from which | ||||||
22 | the applicant for a winery shipper's license intends to ship | ||||||
23 | wine, including the name and address of any third party, | ||||||
24 | except for a common carrier, authorized to ship wine on behalf | ||||||
25 | of the manufacturer. The
application form shall include an | ||||||
26 | acknowledgement consenting
to the jurisdiction of the |
| |||||||
| |||||||
1 | Commission, the Illinois
Department of Revenue, and the courts | ||||||
2 | of this State concerning
the enforcement of this Act and any | ||||||
3 | related laws, rules, and
regulations, including authorizing | ||||||
4 | the Department of Revenue
and the Commission to conduct audits | ||||||
5 | for the purpose of
ensuring compliance with Public Act 95-634, | ||||||
6 | and an acknowledgement that the wine manufacturer is in | ||||||
7 | compliance with Section 6-2 of this Act. Any third party, | ||||||
8 | except for a common carrier, authorized to ship wine on behalf | ||||||
9 | of a first-class or second-class wine manufacturer's licensee, | ||||||
10 | a first-class or second-class wine-maker's licensee, a limited | ||||||
11 | wine manufacturer's licensee, or a person who is licensed to | ||||||
12 | make wine under the laws of another state shall also be | ||||||
13 | disclosed by the winery shipper's licensee, and a copy of the | ||||||
14 | written appointment of the third-party wine provider, except | ||||||
15 | for a common carrier, to the wine manufacturer shall be filed | ||||||
16 | with the State Commission as a supplement to the winery | ||||||
17 | shipper's license application or any renewal thereof. The | ||||||
18 | winery shipper's license holder shall affirm under penalty of | ||||||
19 | perjury, as part of the winery shipper's license application | ||||||
20 | or renewal, that he or she only ships wine, either directly or | ||||||
21 | indirectly through a third-party provider, from the licensee's | ||||||
22 | own production. | ||||||
23 | Except for a common carrier, a third-party provider | ||||||
24 | shipping wine on behalf of a winery shipper's license holder | ||||||
25 | is the agent of the winery shipper's license holder and, as | ||||||
26 | such, a winery shipper's license holder is responsible for the |
| |||||||
| |||||||
1 | acts and omissions of the third-party provider acting on | ||||||
2 | behalf of the license holder. A third-party provider, except | ||||||
3 | for a common carrier, that engages in shipping wine into | ||||||
4 | Illinois on behalf of a winery shipper's license holder shall | ||||||
5 | consent to the jurisdiction of the State Commission and the | ||||||
6 | State. Any third-party, except for a common carrier, holding | ||||||
7 | such an appointment shall, by February 1 of each calendar year | ||||||
8 | and upon request by the State Commission or the Department of | ||||||
9 | Revenue, file with the State Commission a statement detailing | ||||||
10 | each shipment made to an Illinois resident. The statement | ||||||
11 | shall include the name and address of the third-party provider | ||||||
12 | filing the statement, the time period covered by the | ||||||
13 | statement, and the following information: | ||||||
14 | (1) the name, address, and license number of the | ||||||
15 | winery shipper on whose behalf the shipment was made; | ||||||
16 | (2) the quantity of the products delivered; and | ||||||
17 | (3) the date and address of the shipment. | ||||||
18 | If the Department of Revenue or the State Commission requests | ||||||
19 | a statement under this paragraph, the third-party provider | ||||||
20 | must provide that statement no later than 30 days after the | ||||||
21 | request is made. Any books, records, supporting papers, and | ||||||
22 | documents containing information and data relating to a | ||||||
23 | statement under this paragraph shall be kept and preserved for | ||||||
24 | a period of 3 years, unless their destruction sooner is | ||||||
25 | authorized, in writing, by the Director of Revenue, and shall | ||||||
26 | be open and available to inspection by the Director of Revenue |
| |||||||
| |||||||
1 | or the State Commission or any duly authorized officer, agent, | ||||||
2 | or employee of the State Commission or the Department of | ||||||
3 | Revenue, at all times during business hours of the day. Any | ||||||
4 | person who violates any provision of this paragraph or any | ||||||
5 | rule of the State Commission for the administration and | ||||||
6 | enforcement of the provisions of this paragraph is guilty of a | ||||||
7 | Class C misdemeanor. In case of a continuing violation, each | ||||||
8 | day's continuance thereof shall be a separate and distinct | ||||||
9 | offense. | ||||||
10 | The State Commission shall adopt rules as soon as | ||||||
11 | practicable to implement the requirements of Public Act 99-904 | ||||||
12 | and shall adopt rules prohibiting any such third-party | ||||||
13 | appointment of a third-party provider, except for a common | ||||||
14 | carrier, that has been deemed by the State Commission to have | ||||||
15 | violated the provisions of this Act with regard to any winery | ||||||
16 | shipper licensee. | ||||||
17 | A winery shipper licensee must pay to the Department
of | ||||||
18 | Revenue the State liquor gallonage tax under Section 8-1 for
| ||||||
19 | all wine that is sold by the licensee and shipped to a person
| ||||||
20 | in this State. For the purposes of Section 8-1, a winery
| ||||||
21 | shipper licensee shall be taxed in the same manner as a
| ||||||
22 | manufacturer of wine. A licensee who is not otherwise required | ||||||
23 | to register under the Retailers' Occupation Tax Act must
| ||||||
24 | register under the Use Tax Act to collect and remit use tax to
| ||||||
25 | the Department of Revenue for all gallons of wine that are sold
| ||||||
26 | by the licensee and shipped to persons in this State. If a
|
| |||||||
| |||||||
1 | licensee fails to remit the tax imposed under this Act in
| ||||||
2 | accordance with the provisions of Article VIII of this Act, | ||||||
3 | the
winery shipper's license shall be revoked in accordance
| ||||||
4 | with the provisions of Article VII of this Act. If a licensee
| ||||||
5 | fails to properly register and remit tax under the Use Tax Act
| ||||||
6 | or the Retailers' Occupation Tax Act for all wine that is sold
| ||||||
7 | by the winery shipper and shipped to persons in this
State, the | ||||||
8 | winery shipper's license shall be revoked in
accordance with | ||||||
9 | the provisions of Article VII of this Act. | ||||||
10 | A winery shipper licensee must collect, maintain, and
| ||||||
11 | submit to the Commission on a semi-annual basis the
total | ||||||
12 | number of cases per resident of wine shipped to residents
of | ||||||
13 | this State.
A winery shipper licensed under this subsection | ||||||
14 | (r)
must comply with the requirements of Section 6-29 of this | ||||||
15 | Act. | ||||||
16 | Pursuant to paragraph (5.1) or (5.3) of subsection (a) of | ||||||
17 | Section 3-12, the State Commission may receive, respond to, | ||||||
18 | and investigate any complaint and impose any of the remedies | ||||||
19 | specified in paragraph (1) of subsection (a) of Section 3-12. | ||||||
20 | As used in this subsection, "third-party provider" means | ||||||
21 | any entity that provides fulfillment house services, including | ||||||
22 | warehousing, packaging, distribution, order processing, or | ||||||
23 | shipment of wine, but not the sale of wine, on behalf of a | ||||||
24 | licensed winery shipper. | ||||||
25 | (s) A craft distiller tasting permit license shall allow | ||||||
26 | an Illinois licensed class 1 craft distiller or class 2 craft |
| |||||||
| |||||||
1 | distiller to transfer a portion of its alcoholic liquor | ||||||
2 | inventory from its class 1 craft distiller or class 2 craft | ||||||
3 | distiller licensed premises to the premises specified in the | ||||||
4 | license hereby created and to conduct a sampling, only in the | ||||||
5 | premises specified in the license hereby created, of the | ||||||
6 | transferred alcoholic liquor in accordance with subsection (c) | ||||||
7 | of Section 6-31 of this Act. The transferred alcoholic liquor | ||||||
8 | may not be sold or resold in any form. An applicant for the | ||||||
9 | craft distiller tasting permit license must also submit with | ||||||
10 | the application proof satisfactory to the State Commission | ||||||
11 | that the applicant will provide dram shop liability insurance | ||||||
12 | to the maximum limits and have local authority approval. | ||||||
13 | (t) A brewer warehouse permit may be issued to the holder | ||||||
14 | of a class 1 brewer license or a class 2 brewer license. If the | ||||||
15 | holder of the permit is a class 1 brewer licensee, the brewer | ||||||
16 | warehouse permit shall allow the holder to store or warehouse | ||||||
17 | up to 930,000 gallons of tax-determined beer manufactured by | ||||||
18 | the holder of the permit at the premises specified on the | ||||||
19 | permit. If the holder of the permit is a class 2 brewer | ||||||
20 | licensee, the brewer warehouse permit shall allow the holder | ||||||
21 | to store or warehouse up to 3,720,000 gallons of | ||||||
22 | tax-determined beer manufactured by the holder of the permit | ||||||
23 | at the premises specified on the permit. Sales to | ||||||
24 | non-licensees are prohibited at the premises specified in the | ||||||
25 | brewer warehouse permit. | ||||||
26 | (u) A distilling pub license shall allow the licensee to |
| |||||||
| |||||||
1 | only (i) manufacture up to 5,000 gallons of spirits per year | ||||||
2 | only on the premises specified in the license, (ii) make sales | ||||||
3 | of the spirits manufactured on the premises or, with the | ||||||
4 | approval of the State Commission, spirits manufactured on | ||||||
5 | another distilling pub licensed premises that is wholly owned | ||||||
6 | and operated by the same licensee to importing distributors | ||||||
7 | and distributors and to non-licensees for use and consumption, | ||||||
8 | (iii) store the spirits upon the premises, (iv) sell and offer | ||||||
9 | for sale at retail from the licensed premises for off-premises | ||||||
10 | consumption no more than 5,000 gallons per year so long as such | ||||||
11 | sales are only made in-person, (v) sell and offer for sale at | ||||||
12 | retail for use and consumption on the premises specified in | ||||||
13 | the license any form of alcoholic liquor purchased from a | ||||||
14 | licensed distributor or importing distributor, and (vi) with | ||||||
15 | the prior approval of the State Commission, annually transfer | ||||||
16 | no more than 5,000 gallons of spirits manufactured on the | ||||||
17 | premises to a licensed distilling pub wholly owned and | ||||||
18 | operated by the same licensee. | ||||||
19 | A distilling pub licensee shall not under any circumstance | ||||||
20 | sell or offer for sale spirits manufactured by the distilling | ||||||
21 | pub licensee to retail licensees. | ||||||
22 | A person who holds a class 2 craft distiller license may | ||||||
23 | simultaneously hold a distilling pub license if the class 2 | ||||||
24 | craft distiller (i) does not, under any circumstance, sell or | ||||||
25 | offer for sale spirits manufactured by the class 2 craft | ||||||
26 | distiller to retail licensees; (ii) does not hold more than 3 |
| |||||||
| |||||||
1 | distilling pub licenses in this State; (iii) does not | ||||||
2 | manufacture more than a combined 100,000 gallons of spirits | ||||||
3 | per year, including the spirits manufactured at the distilling | ||||||
4 | pub; and (iv) is not a member of or affiliated with, directly | ||||||
5 | or indirectly, a manufacturer that produces more than 100,000 | ||||||
6 | gallons of spirits per year or any other alcoholic liquor. | ||||||
7 | (v) A craft distiller warehouse permit may be issued to | ||||||
8 | the holder of a class 1 craft distiller or class 2 craft | ||||||
9 | distiller license. The craft distiller warehouse permit shall | ||||||
10 | allow the holder to store or warehouse up to 500,000 gallons of | ||||||
11 | spirits manufactured by the holder of the permit at the | ||||||
12 | premises specified on the permit. Sales to non-licensees are | ||||||
13 | prohibited at the premises specified in the craft distiller | ||||||
14 | warehouse permit. | ||||||
15 | (w) A beer showcase permit license shall allow an | ||||||
16 | Illinois-licensed distributor to transfer a portion of its | ||||||
17 | beer inventory from its licensed premises to the premises | ||||||
18 | specified in the beer showcase permit license, and, in the | ||||||
19 | case of a class 3 brewer, transfer only beer the class 3 brewer | ||||||
20 | manufactures from its licensed premises to the premises | ||||||
21 | specified in the beer showcase permit license; and to sell or | ||||||
22 | offer for sale at retail, only in the premises specified in the | ||||||
23 | beer showcase permit license, the transferred or delivered | ||||||
24 | beer for on or off premise consumption, but not for resale in | ||||||
25 | any form and to sell to non-licensees not more than 96 fluid | ||||||
26 | ounces of beer per person. A beer showcase permit license may |
| |||||||
| |||||||
1 | be granted for the following time periods: one day or less; or | ||||||
2 | 2 or more days to a maximum of 15 days per location in any | ||||||
3 | 12-month period. An applicant for a beer showcase permit | ||||||
4 | license must also submit with the application proof | ||||||
5 | satisfactory to the State Commission that the applicant will | ||||||
6 | provide dram shop liability insurance to the maximum limits | ||||||
7 | and have local authority approval. The State Commission shall | ||||||
8 | require the beer showcase applicant to comply with Section | ||||||
9 | 6-27.1. | ||||||
10 | (Source: P.A. 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; | ||||||
11 | 100-816, eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. | ||||||
12 | 8-23-18; 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; 101-81, | ||||||
13 | eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. 8-23-19; | ||||||
14 | 101-615, eff. 12-20-19.)
| ||||||
15 | (Text of Section after amendment by P.A. 101-668 ) | ||||||
16 | Sec. 5-1. Licenses issued by the Illinois Liquor Control | ||||||
17 | Commission
shall be of the following classes: | ||||||
18 | (a) Manufacturer's license - Class 1.
Distiller, Class 2. | ||||||
19 | Rectifier, Class 3. Brewer, Class 4. First Class Wine
| ||||||
20 | Manufacturer, Class 5. Second Class Wine Manufacturer, Class | ||||||
21 | 6. First Class Winemaker, Class 7. Second Class Winemaker, | ||||||
22 | Class 8.
Limited Wine Manufacturer, Class 9. Craft Distiller, | ||||||
23 | Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft | ||||||
24 | Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer, | ||||||
25 | Class 14. Class 3 Brewer, |
| |||||||
| |||||||
1 | (b) Distributor's license, | ||||||
2 | (c) Importing Distributor's license, | ||||||
3 | (d) Retailer's license, | ||||||
4 | (e) Special Event Retailer's license (not-for-profit), | ||||||
5 | (f) Railroad license, | ||||||
6 | (g) Boat license, | ||||||
7 | (h) Non-Beverage User's license, | ||||||
8 | (i) Wine-maker's premises license, | ||||||
9 | (j) Airplane license, | ||||||
10 | (k) Foreign importer's license, | ||||||
11 | (l) Broker's license, | ||||||
12 | (m) Non-resident dealer's
license, | ||||||
13 | (n) Brew Pub license, | ||||||
14 | (o) Auction liquor license, | ||||||
15 | (p) Caterer retailer license, | ||||||
16 | (q) Special use permit license, | ||||||
17 | (r) Winery shipper's license, | ||||||
18 | (s) Craft distiller tasting permit, | ||||||
19 | (t) Brewer warehouse permit, | ||||||
20 | (u) Distilling pub license, | ||||||
21 | (v) Craft distiller warehouse permit , . | ||||||
22 | (w) Beer showcase permit. | ||||||
23 | No
person, firm, partnership, corporation, or other legal | ||||||
24 | business entity that is
engaged in the manufacturing of wine | ||||||
25 | may concurrently obtain and hold a
wine-maker's license and a | ||||||
26 | wine manufacturer's license. |
| |||||||
| |||||||
1 | (a) A manufacturer's license shall allow the manufacture,
| ||||||
2 | importation in bulk, storage, distribution and sale of | ||||||
3 | alcoholic liquor
to persons without the State, as may be | ||||||
4 | permitted by law and to licensees
in this State as follows: | ||||||
5 | Class 1. A Distiller may make sales and deliveries of | ||||||
6 | alcoholic liquor to
distillers, rectifiers, importing | ||||||
7 | distributors, distributors and
non-beverage users and to no | ||||||
8 | other licensees. | ||||||
9 | Class 2. A Rectifier, who is not a distiller, as defined | ||||||
10 | herein, may make
sales and deliveries of alcoholic liquor to | ||||||
11 | rectifiers, importing distributors,
distributors, retailers | ||||||
12 | and non-beverage users and to no other licensees. | ||||||
13 | Class 3. A Brewer may make sales and deliveries of beer to | ||||||
14 | importing
distributors and distributors and may make sales as | ||||||
15 | authorized under subsection (e) of Section 6-4 of this Act , | ||||||
16 | including any alcoholic liquor that subsection (e) of Section | ||||||
17 | 6-4 authorizes a brewer to sell in its original package only to | ||||||
18 | a non-licensee for pick-up by a non-licensee either within the | ||||||
19 | interior of the brewery premises or at outside of the brewery | ||||||
20 | premises at a curb-side or parking lot adjacent to the brewery | ||||||
21 | premises, subject to any local ordinance . | ||||||
22 | Class 4. A first class wine-manufacturer may make sales | ||||||
23 | and deliveries of
up to 50,000 gallons of wine to | ||||||
24 | manufacturers,
importing
distributors and distributors, and to | ||||||
25 | no other licensees. If a first-class wine-manufacturer | ||||||
26 | manufactures beer, it shall also obtain and shall only be |
| |||||||
| |||||||
1 | eligible for, in addition to any current license, a class 1 | ||||||
2 | brewer license, shall not manufacture more than 930,000 | ||||||
3 | gallons of beer per year, and shall not be a member of or | ||||||
4 | affiliated with, directly or indirectly, a manufacturer that | ||||||
5 | produces more than 930,000 gallons of beer per year. If the | ||||||
6 | first-class wine-manufacturer manufactures spirits, it shall | ||||||
7 | also obtain and shall only be eligible for, in addition to any | ||||||
8 | current license, a class 1 craft distiller license, shall not | ||||||
9 | manufacture more than 50,000 gallons of spirits per year, and | ||||||
10 | shall not be a member of or affiliated with, directly or | ||||||
11 | indirectly, a manufacturer that produces more than 50,000 | ||||||
12 | gallons of spirits per year. A first-class wine-manufacturer | ||||||
13 | shall be permitted to sell wine manufactured at the | ||||||
14 | first-class wine-manufacturer premises to non-licensees. | ||||||
15 | Class 5. A second class Wine manufacturer may make sales | ||||||
16 | and deliveries
of more than 50,000 gallons of wine to | ||||||
17 | manufacturers, importing distributors
and distributors and to | ||||||
18 | no other licensees. | ||||||
19 | Class 6. A first-class wine-maker's license shall allow | ||||||
20 | the manufacture
of up to 50,000 gallons of wine per year, and | ||||||
21 | the
storage
and sale of such
wine to distributors in the State | ||||||
22 | and to persons without the
State, as may be permitted by law. A | ||||||
23 | person who, prior to June 1, 2008 (the effective date of Public | ||||||
24 | Act 95-634), is a holder of a first-class wine-maker's license | ||||||
25 | and annually produces more than 25,000 gallons of its own wine | ||||||
26 | and who distributes its wine to licensed retailers shall cease |
| |||||||
| |||||||
1 | this practice on or before July 1, 2008 in compliance with | ||||||
2 | Public Act 95-634. If a first-class wine-maker manufactures | ||||||
3 | beer, it shall also obtain and shall only be eligible for, in | ||||||
4 | addition to any current license, a class 1 brewer license, | ||||||
5 | shall not manufacture more than 930,000 gallons of beer per | ||||||
6 | year, and shall not be a member of or affiliated with, directly | ||||||
7 | or indirectly, a manufacturer that produces more than 930,000 | ||||||
8 | gallons of beer per year. If the first-class wine-maker | ||||||
9 | manufactures spirits, it shall also obtain and shall only be | ||||||
10 | eligible for, in addition to any current license, a class 1 | ||||||
11 | craft distiller license, shall not manufacture more than | ||||||
12 | 50,000 gallons of spirits per year, and shall not be a member | ||||||
13 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
14 | that produces more than 50,000 gallons of spirits per year. A | ||||||
15 | first-class wine-maker holding a class 1 brewer license or a | ||||||
16 | class 1 craft distiller license shall not be eligible for a | ||||||
17 | wine-maker's premises license but shall be permitted to sell | ||||||
18 | wine manufactured at the first-class wine-maker premises to | ||||||
19 | non-licensees. | ||||||
20 | Class 7. A second-class wine-maker's license shall allow | ||||||
21 | the manufacture
of up to between 50,000 and 150,000 gallons of | ||||||
22 | wine per year, and
the
storage and sale of such wine
to | ||||||
23 | distributors in this State and to persons without the State, | ||||||
24 | as may be
permitted by law. A person who, prior to June 1, 2008 | ||||||
25 | (the effective date of Public Act 95-634), is a holder of a | ||||||
26 | second-class wine-maker's license and annually produces more |
| |||||||
| |||||||
1 | than 25,000 gallons of its own wine and who distributes its | ||||||
2 | wine to licensed retailers shall cease this practice on or | ||||||
3 | before July 1, 2008 in compliance with Public Act 95-634. If a | ||||||
4 | second-class wine-maker manufactures beer, it shall also | ||||||
5 | obtain and shall only be eligible for, in addition to any | ||||||
6 | current license, a class 2 brewer license, shall not | ||||||
7 | manufacture more than 3,720,000 gallons of beer per year, and | ||||||
8 | shall not be a member of or affiliated with, directly or | ||||||
9 | indirectly, a manufacturer that produces more than 3,720,000 | ||||||
10 | gallons of beer per year. If a second-class wine-maker | ||||||
11 | manufactures spirits, it shall also obtain and shall only be | ||||||
12 | eligible for, in addition to any current license, a class 2 | ||||||
13 | craft distiller license, shall not manufacture more than | ||||||
14 | 100,000 gallons of spirits per year, and shall not be a member | ||||||
15 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
16 | that produces more than 100,000 gallons of spirits per year. | ||||||
17 | Class 8. A limited wine-manufacturer may make sales and | ||||||
18 | deliveries not to
exceed 40,000 gallons of wine per year to | ||||||
19 | distributors, and to
non-licensees in accordance with the | ||||||
20 | provisions of this Act. | ||||||
21 | Class 9. A craft distiller license, which may only be held | ||||||
22 | by a class 1 craft distiller licensee or class 2 craft | ||||||
23 | distiller licensee but not held by both a class 1 craft | ||||||
24 | distiller licensee and a class 2 craft distiller licensee, | ||||||
25 | shall grant all rights conveyed by either: (i) a class 1 craft | ||||||
26 | distiller license if the craft distiller holds a class 1 craft |
| |||||||
| |||||||
1 | distiller license; or (ii) a class 2 craft distiller licensee | ||||||
2 | if the craft distiller holds a class 2 craft distiller | ||||||
3 | license. | ||||||
4 | Class 10. A class 1 craft distiller license, which may | ||||||
5 | only be issued to a licensed craft distiller or licensed | ||||||
6 | non-resident dealer, shall allow the manufacture of up to | ||||||
7 | 50,000 gallons of spirits per year provided that the class 1 | ||||||
8 | craft distiller licensee does not manufacture more than a | ||||||
9 | combined 50,000 gallons of spirits per year and is not a member | ||||||
10 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
11 | that produces more than 50,000 gallons of spirits per year or | ||||||
12 | any other alcoholic liquor . If a class 1 craft distiller | ||||||
13 | manufactures beer, it shall also obtain and shall only be | ||||||
14 | eligible for, in addition to any current license, a class 1 | ||||||
15 | brewer license, shall not manufacture more than 930,000 | ||||||
16 | gallons of beer per year, and shall not be a member of or | ||||||
17 | affiliated with, directly or indirectly, a manufacturer that | ||||||
18 | produces more than 930,000 gallons of beer per year. If a class | ||||||
19 | 1 craft distiller manufactures wine, it shall also obtain and | ||||||
20 | shall only be eligible for, in addition to any current | ||||||
21 | license, a first-class wine-manufacturer license or a | ||||||
22 | first-class wine-maker's license, shall not manufacture more | ||||||
23 | than 50,000 gallons of wine per year, and shall not be a member | ||||||
24 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
25 | that produces more than 50,000 gallons of wine per year. A | ||||||
26 | class 1 craft distiller licensee may make sales and deliveries |
| |||||||
| |||||||
1 | to importing distributors and distributors and to retail | ||||||
2 | licensees in accordance with the conditions set forth in | ||||||
3 | paragraph (19) of subsection (a) of Section 3-12 of this Act. | ||||||
4 | However, the aggregate amount of spirits sold to non-licensees | ||||||
5 | and sold or delivered to retail licensees may not exceed 5,000 | ||||||
6 | gallons per year. | ||||||
7 | A class 1 craft distiller licensee may sell up to 5,000 | ||||||
8 | gallons of such spirits to non-licensees to the extent | ||||||
9 | permitted by any exemption approved by the State Commission | ||||||
10 | pursuant to Section 6-4 of this Act. A class 1 craft distiller | ||||||
11 | license holder may store such spirits at a non-contiguous | ||||||
12 | licensed location, but at no time shall a class 1 craft | ||||||
13 | distiller license holder directly or indirectly produce in the | ||||||
14 | aggregate more than 50,000 gallons of spirits per year. | ||||||
15 | A class 1 craft distiller licensee may hold more than one | ||||||
16 | class 1 craft distiller's license. However, a class 1 craft | ||||||
17 | distiller that holds more than one class 1 craft distiller | ||||||
18 | license shall not manufacture, in the aggregate, more than | ||||||
19 | 50,000 gallons of spirits by distillation per year and shall | ||||||
20 | not sell, in the aggregate, more than 5,000 gallons of such | ||||||
21 | spirits to non-licensees in accordance with an exemption | ||||||
22 | approved by the State Commission pursuant to Section 6-4 of | ||||||
23 | this Act. | ||||||
24 | Class 11. A class 2 craft distiller license, which may | ||||||
25 | only be issued to a licensed craft distiller or licensed | ||||||
26 | non-resident dealer, shall allow the manufacture of up to |
| |||||||
| |||||||
1 | 100,000 gallons of spirits per year provided that the class 2 | ||||||
2 | craft distiller licensee does not manufacture more than a | ||||||
3 | combined 100,000 gallons of spirits per year and is not a | ||||||
4 | member of or affiliated with, directly or indirectly, a | ||||||
5 | manufacturer that produces more than 100,000 gallons of | ||||||
6 | spirits per year or any other alcoholic liquor . If a class 2 | ||||||
7 | craft distiller manufactures beer, it shall also obtain and | ||||||
8 | shall only be eligible for, in addition to any current | ||||||
9 | license, a class 2 brewer license, shall not manufacture more | ||||||
10 | than 3,720,000 gallons of beer per year, and shall not be a | ||||||
11 | member of or affiliated with, directly or indirectly, a | ||||||
12 | manufacturer that produces more than 3,720,000 gallons of beer | ||||||
13 | per year. If a class 2 craft distiller manufactures wine, it | ||||||
14 | shall also obtain and shall only be eligible for, in addition | ||||||
15 | to any current license, a second-class wine-maker's license, | ||||||
16 | shall not manufacture more than 150,000 gallons of wine per | ||||||
17 | year, and shall not be a member of or affiliated with, directly | ||||||
18 | or indirectly, a manufacturer that produces more than 150,000 | ||||||
19 | gallons of wine per year. A class 2 craft distiller licensee | ||||||
20 | may make sales and deliveries to importing distributors and | ||||||
21 | distributors, but shall not make sales or deliveries to any | ||||||
22 | other licensee. If the State Commission provides prior | ||||||
23 | approval, a class 2 craft distiller licensee may annually | ||||||
24 | transfer up to 100,000 gallons of spirits manufactured by that | ||||||
25 | class 2 craft distiller licensee to the premises of a licensed | ||||||
26 | class 2 craft distiller wholly owned and operated by the same |
| |||||||
| |||||||
1 | licensee. A class 2 craft distiller may transfer spirits to a | ||||||
2 | distilling pub wholly owned and operated by the class 2 craft | ||||||
3 | distiller subject to the following limitations and | ||||||
4 | restrictions: (i) the transfer shall not annually exceed more | ||||||
5 | than 5,000 gallons; (ii) the annual amount transferred shall | ||||||
6 | reduce the distilling pub's annual permitted production limit; | ||||||
7 | (iii) all spirits transferred shall be subject to Article VIII | ||||||
8 | of this Act; (iv) a written record shall be maintained by the | ||||||
9 | distiller and distilling pub specifying the amount, date of | ||||||
10 | delivery, and receipt of the product by the distilling pub; | ||||||
11 | and (v) the distilling pub shall be located no farther than 80 | ||||||
12 | miles from the class 2 craft distiller's licensed location. | ||||||
13 | A class 2 craft distiller shall, prior to transferring | ||||||
14 | spirits to a distilling pub wholly owned by the class 2 craft | ||||||
15 | distiller, furnish a written notice to the State Commission of | ||||||
16 | intent to transfer spirits setting forth the name and address | ||||||
17 | of the distilling pub and shall annually submit to the State | ||||||
18 | Commission a verified report identifying the total gallons of | ||||||
19 | spirits transferred to the distilling pub wholly owned by the | ||||||
20 | class 2 craft distiller. | ||||||
21 | A class 2 craft distiller license holder may store such | ||||||
22 | spirits at a non-contiguous licensed location, but at no time | ||||||
23 | shall a class 2 craft distiller license holder directly or | ||||||
24 | indirectly produce in the aggregate more than 100,000 gallons | ||||||
25 | of spirits per year. | ||||||
26 | Class 12. A class 1 brewer license, which may only be |
| |||||||
| |||||||
1 | issued to a licensed brewer or licensed non-resident dealer, | ||||||
2 | shall allow the manufacture of up to 930,000 gallons of beer | ||||||
3 | per year provided that the class 1 brewer licensee does not | ||||||
4 | manufacture more than a combined 930,000 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 930,000 | ||||||
7 | gallons of beer per year or any other alcoholic liquor . If a | ||||||
8 | class 1 brewer manufactures spirits, it shall also obtain and | ||||||
9 | shall only be eligible for, in addition to any current | ||||||
10 | license, a class 1 craft distiller license, shall not | ||||||
11 | manufacture more than 50,000 gallons of spirits per year, and | ||||||
12 | shall not be a member of or affiliated with, directly or | ||||||
13 | indirectly, a manufacturer that produces more than 50,000 | ||||||
14 | gallons of spirits per year. If a class 1 craft brewer | ||||||
15 | manufactures wine, it shall also obtain and shall only be | ||||||
16 | eligible for, in addition to any current license, a | ||||||
17 | first-class wine-manufacturer license or a first-class | ||||||
18 | wine-maker's license, shall not manufacture more than 50,000 | ||||||
19 | gallons of wine per year, and shall not be a member of or | ||||||
20 | affiliated with, directly or indirectly, a manufacturer that | ||||||
21 | produces more than 50,000 gallons of wine per year. A class 1 | ||||||
22 | brewer licensee may make sales and deliveries to importing | ||||||
23 | distributors and distributors and to retail licensees in | ||||||
24 | accordance with the conditions set forth in paragraph (18) of | ||||||
25 | subsection (a) of Section 3-12 of this Act. If the State | ||||||
26 | Commission provides prior approval, a class 1 brewer may |
| |||||||
| |||||||
1 | annually transfer up to 930,000 gallons of beer manufactured | ||||||
2 | by that class 1 brewer to the premises of a licensed class 1 | ||||||
3 | brewer wholly owned and operated by the same licensee. | ||||||
4 | Class 13. A class 2 brewer license, which may only be | ||||||
5 | issued to a licensed brewer or licensed non-resident dealer, | ||||||
6 | shall allow the manufacture of up to 3,720,000 gallons of beer | ||||||
7 | per year provided that the class 2 brewer licensee does not | ||||||
8 | manufacture more than a combined 3,720,000 gallons of beer per | ||||||
9 | year and is not a member of or affiliated with, directly or | ||||||
10 | indirectly, a manufacturer that produces more than 3,720,000 | ||||||
11 | gallons of beer per year or any other alcoholic liquor . If a | ||||||
12 | class 2 brewer manufactures spirits, it shall also obtain and | ||||||
13 | shall only be eligible for, in addition to any current | ||||||
14 | license, a class 2 craft distiller license, shall not | ||||||
15 | manufacture more than 100,000 gallons of spirits per year, and | ||||||
16 | shall not be a member of or affiliated with, directly or | ||||||
17 | indirectly, a manufacturer that produces more than 100,000 | ||||||
18 | gallons of spirits per year. If a class 2 craft distiller | ||||||
19 | manufactures wine, it shall also obtain and shall only be | ||||||
20 | eligible for, in addition to any current license, a | ||||||
21 | second-class wine-maker's license, shall not manufacture more | ||||||
22 | than 150,000 gallons of wine per year, and shall not be a | ||||||
23 | member of or affiliated with, directly or indirectly, a | ||||||
24 | manufacturer that produces more than 150,000 gallons of wine a | ||||||
25 | year. A class 2 brewer licensee may make sales and deliveries | ||||||
26 | to importing distributors and distributors, but shall not make |
| |||||||
| |||||||
1 | sales or deliveries to any other licensee. If the State | ||||||
2 | Commission provides prior approval, a class 2 brewer licensee | ||||||
3 | may annually transfer up to 3,720,000 gallons of beer | ||||||
4 | manufactured by that class 2 brewer licensee to the premises | ||||||
5 | of a licensed class 2 brewer wholly owned and operated by the | ||||||
6 | same licensee. | ||||||
7 | A class 2 brewer may transfer beer to a brew pub wholly | ||||||
8 | owned and operated by the class 2 brewer subject to the | ||||||
9 | following limitations and restrictions: (i) the transfer shall | ||||||
10 | not annually exceed more than 31,000 gallons; (ii) the annual | ||||||
11 | amount transferred shall reduce the brew pub's annual | ||||||
12 | permitted production limit; (iii) all beer transferred shall | ||||||
13 | be subject to Article VIII of this Act; (iv) a written record | ||||||
14 | shall be maintained by the brewer and brew pub specifying the | ||||||
15 | amount, date of delivery, and receipt of the product by the | ||||||
16 | brew pub; and (v) the brew pub shall be located no farther than | ||||||
17 | 80 miles from the class 2 brewer's licensed location. | ||||||
18 | A class 2 brewer shall, prior to transferring beer to a | ||||||
19 | brew pub wholly owned by the class 2 brewer, furnish a written | ||||||
20 | notice to the State Commission of intent to transfer beer | ||||||
21 | setting forth the name and address of the brew pub and shall | ||||||
22 | annually submit to the State Commission a verified report | ||||||
23 | identifying the total gallons of beer transferred to the brew | ||||||
24 | pub wholly owned by the class 2 brewer. | ||||||
25 | Class 14. A class 3 brewer license, which may be issued to | ||||||
26 | a brewer or a non-resident dealer, shall allow the manufacture |
| |||||||
| |||||||
1 | of no more than 465,000 gallons of beer per year and no more | ||||||
2 | than 155,000 gallons at a single brewery premises, and shall | ||||||
3 | allow the sale of no more than 6,200 gallons of beer from each | ||||||
4 | in-state or out-of-state class 3 brewery premises, or 18,600 | ||||||
5 | gallons in the aggregate, to retail licensees, class 1 | ||||||
6 | brewers, class 2 brewers, and class 3 brewers as long as the | ||||||
7 | class 3 brewer licensee does not manufacture more than a | ||||||
8 | combined 465,000 gallons of beer per year and is not a member | ||||||
9 | of or affiliated with, directly or indirectly, a manufacturer | ||||||
10 | that produces more than 465,000 gallons of beer per year to | ||||||
11 | make sales to importing distributors, distributors, retail | ||||||
12 | licensees, brewers, class 1 brewers, class 2 brewers, and | ||||||
13 | class 3 brewers in accordance with the conditions set forth in | ||||||
14 | paragraph (20) of subsection (a) of Section 3-12. If the State | ||||||
15 | Commission provides prior approval, a class 3 brewer may | ||||||
16 | annually transfer up to 155,000 gallons of beer manufactured | ||||||
17 | by that class 3 brewer to the premises of a licensed class 3 | ||||||
18 | brewer wholly owned and operated by the same licensee. A class | ||||||
19 | 3 brewer shall manufacture beer at the brewer's class 3 | ||||||
20 | designated licensed premises, and may sell beer as otherwise | ||||||
21 | provided in this Act. | ||||||
22 | (a-1) A manufacturer which is licensed in this State to | ||||||
23 | make sales or
deliveries of alcoholic liquor to licensed | ||||||
24 | distributors or importing distributors and which enlists | ||||||
25 | agents, representatives, or
individuals acting on its behalf | ||||||
26 | who contact licensed retailers on a regular
and continual |
| |||||||
| |||||||
1 | basis in this State must register those agents, | ||||||
2 | representatives,
or persons acting on its behalf with the | ||||||
3 | State Commission. | ||||||
4 | Registration of agents, representatives, or persons acting | ||||||
5 | on behalf of a
manufacturer is fulfilled by submitting a form | ||||||
6 | to the Commission. The form
shall be developed by the | ||||||
7 | Commission and shall include the name and address of
the | ||||||
8 | applicant, the name and address of the manufacturer he or she | ||||||
9 | represents,
the territory or areas assigned to sell to or | ||||||
10 | discuss pricing terms of
alcoholic liquor, and any other | ||||||
11 | questions deemed appropriate and necessary.
All statements in | ||||||
12 | the forms required to be made by law or by rule shall be
deemed | ||||||
13 | material, and any person who knowingly misstates any material | ||||||
14 | fact under
oath in an application is guilty of a Class B | ||||||
15 | misdemeanor. Fraud,
misrepresentation, false statements, | ||||||
16 | misleading statements, evasions, or
suppression of material | ||||||
17 | facts in the securing of a registration are grounds for
| ||||||
18 | suspension or revocation of the registration. The State | ||||||
19 | Commission shall post a list of registered agents on the | ||||||
20 | Commission's website. | ||||||
21 | (b) A distributor's license shall allow (i) the wholesale | ||||||
22 | purchase and storage
of alcoholic liquors and sale of | ||||||
23 | alcoholic liquors to licensees in this State and to persons | ||||||
24 | without the State, as may be permitted by law; (ii) the sale of | ||||||
25 | beer, cider, mead, or any combination thereof or both beer and | ||||||
26 | cider to brewers, class 1 brewers, and class 2 brewers that, |
| |||||||
| |||||||
1 | pursuant to subsection (e) of Section 6-4 of this Act, sell | ||||||
2 | beer, cider, mead, or any combination thereof or both beer and | ||||||
3 | cider to non-licensees at their breweries; and (iii) the sale | ||||||
4 | of vermouth to class 1 craft distillers and class 2 craft | ||||||
5 | distillers that, pursuant to subsection (e) of Section 6-4 of | ||||||
6 | this Act, sell spirits, vermouth, or both spirits and vermouth | ||||||
7 | to non-licensees at their distilleries ; or (iv) as otherwise | ||||||
8 | provided in this Act . No person licensed as a distributor | ||||||
9 | shall be granted a non-resident dealer's license. | ||||||
10 | (c) An importing distributor's license may be issued to | ||||||
11 | and held by
those only who are duly licensed distributors, | ||||||
12 | upon the filing of an
application by a duly licensed | ||||||
13 | distributor, with the Commission and
the Commission shall, | ||||||
14 | without the
payment of any fee, immediately issue such | ||||||
15 | importing distributor's
license to the applicant, which shall | ||||||
16 | allow the importation of alcoholic
liquor by the licensee into | ||||||
17 | this State from any point in the United
States outside this | ||||||
18 | State, and the purchase of alcoholic liquor in
barrels, casks | ||||||
19 | or other bulk containers and the bottling of such
alcoholic | ||||||
20 | liquors before resale thereof, but all bottles or containers
| ||||||
21 | so filled shall be sealed, labeled, stamped and otherwise made | ||||||
22 | to comply
with all provisions, rules and regulations governing | ||||||
23 | manufacturers in
the preparation and bottling of alcoholic | ||||||
24 | liquors. The importing
distributor's license shall permit such | ||||||
25 | licensee to purchase alcoholic
liquor from Illinois licensed | ||||||
26 | non-resident dealers and foreign importers only. No person |
| |||||||
| |||||||
1 | licensed as an importing distributor shall be granted a | ||||||
2 | non-resident dealer's license. | ||||||
3 | (d) A retailer's license shall allow the licensee to sell | ||||||
4 | and offer
for sale at retail, only in the premises specified in | ||||||
5 | the license,
alcoholic liquor for use or consumption, but not | ||||||
6 | for resale in any form. Except as provided in Section 6-16, | ||||||
7 | 6-29, or 6-29.1, nothing in this Act shall deny, limit, | ||||||
8 | remove, or restrict the ability of a holder of a retailer's | ||||||
9 | license to transfer or ship alcoholic liquor to the purchaser | ||||||
10 | for use or consumption subject to any applicable local law or | ||||||
11 | ordinance. For the purposes of this Section, "shipping" means | ||||||
12 | the movement of alcoholic liquor from a licensed retailer to a | ||||||
13 | consumer via a common carrier. Except as provided in Section | ||||||
14 | 6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit, | ||||||
15 | remove, or restrict the ability of a holder of a retailer's | ||||||
16 | license to deliver alcoholic liquor to the purchaser for use | ||||||
17 | or consumption. The delivery shall be made only within 12 | ||||||
18 | hours from the time the alcoholic liquor leaves the licensed | ||||||
19 | premises of the retailer for delivery. For the purposes of | ||||||
20 | this Section, "delivery" means the movement of alcoholic | ||||||
21 | liquor purchased from a licensed retailer to a consumer | ||||||
22 | through the following methods: | ||||||
23 | (1) delivery within licensed retailer's parking lot, | ||||||
24 | including curbside, for pickup by the consumer; | ||||||
25 | (2) delivery by an owner, officer, director, | ||||||
26 | shareholder, or employee of the licensed retailer; or |
| |||||||
| |||||||
1 | (3) delivery by a third-party contractor, independent | ||||||
2 | contractor, or agent with whom the licensed retailer has | ||||||
3 | contracted to make deliveries of alcoholic liquors. | ||||||
4 | Under subsection (1), (2), or (3), delivery shall not | ||||||
5 | include the use of common carriers. | ||||||
6 | Any retail license issued to a manufacturer shall only
| ||||||
7 | permit the manufacturer to sell beer at retail on the premises | ||||||
8 | actually
occupied by the manufacturer. For the purpose of | ||||||
9 | further describing the type of business conducted at a retail | ||||||
10 | licensed premises, a retailer's licensee may be designated by | ||||||
11 | the State Commission as (i) an on premise consumption | ||||||
12 | retailer, (ii) an off premise sale retailer, or (iii) a | ||||||
13 | combined on premise consumption and off premise sale retailer.
| ||||||
14 | Except for a municipality with a population of more than | ||||||
15 | 1,000,000 inhabitants, a home rule unit may not regulate the | ||||||
16 | delivery of alcoholic liquor inconsistent with this | ||||||
17 | subsection. This paragraph is a limitation under subsection | ||||||
18 | (i) of Section 6 of Article VII of the Illinois Constitution on | ||||||
19 | the concurrent exercise by home rule units of powers and | ||||||
20 | functions exercised by the State. | ||||||
21 | Notwithstanding any other provision of this subsection | ||||||
22 | (d), a retail
licensee may sell alcoholic liquors to a special | ||||||
23 | event retailer licensee for
resale to the extent permitted | ||||||
24 | under subsection (e). | ||||||
25 | (e) A special event retailer's license (not-for-profit) | ||||||
26 | shall permit the
licensee to purchase alcoholic liquors from |
| |||||||
| |||||||
1 | an Illinois licensed distributor
(unless the licensee | ||||||
2 | purchases less than $500 of alcoholic liquors for the
special | ||||||
3 | event, in which case the licensee may purchase the alcoholic | ||||||
4 | liquors
from a licensed retailer) and shall allow the licensee | ||||||
5 | to sell and offer for
sale, at retail, alcoholic liquors for | ||||||
6 | use or consumption, but not for resale
in any form and only at | ||||||
7 | the location and on the specific dates designated for
the | ||||||
8 | special event in the license. An applicant for a special event | ||||||
9 | retailer
license must
(i) furnish with the application: (A) a | ||||||
10 | resale number issued under Section
2c of the Retailers' | ||||||
11 | Occupation Tax Act or evidence that the applicant is
| ||||||
12 | registered under Section 2a of the Retailers' Occupation Tax | ||||||
13 | Act, (B) a
current, valid exemption identification
number | ||||||
14 | issued under Section 1g of the Retailers' Occupation Tax Act, | ||||||
15 | and a
certification to the Commission that the purchase of | ||||||
16 | alcoholic liquors will be
a tax-exempt purchase, or (C) a | ||||||
17 | statement that the applicant is not registered
under Section | ||||||
18 | 2a of the Retailers' Occupation Tax Act, does not hold a resale
| ||||||
19 | number under Section 2c of the Retailers' Occupation Tax Act, | ||||||
20 | and does not
hold an exemption number under Section 1g of the | ||||||
21 | Retailers' Occupation Tax
Act, in which event the Commission | ||||||
22 | shall set forth on the special event
retailer's license a | ||||||
23 | statement to that effect; (ii) submit with the application | ||||||
24 | proof satisfactory to
the State Commission that the applicant | ||||||
25 | will provide dram shop liability
insurance in the maximum | ||||||
26 | limits; and (iii) show proof satisfactory to the
State |
| |||||||
| |||||||
1 | Commission that the applicant has obtained local authority
| ||||||
2 | approval. | ||||||
3 | Nothing in this Act prohibits an Illinois licensed | ||||||
4 | distributor from offering credit or a refund for unused, | ||||||
5 | salable alcoholic liquors to a holder of a special event | ||||||
6 | retailer's license or the special event retailer's licensee | ||||||
7 | from accepting the credit or refund of alcoholic liquors at | ||||||
8 | the conclusion of the event specified in the license. | ||||||
9 | (f) A railroad license shall permit the licensee to import | ||||||
10 | alcoholic
liquors into this State from any point in the United | ||||||
11 | States outside this
State and to store such alcoholic liquors | ||||||
12 | in this State; to make wholesale
purchases of alcoholic | ||||||
13 | liquors directly from manufacturers, foreign
importers, | ||||||
14 | distributors and importing distributors from within or outside
| ||||||
15 | this State; and to store such alcoholic liquors in this State; | ||||||
16 | provided
that the above powers may be exercised only in | ||||||
17 | connection with the
importation, purchase or storage of | ||||||
18 | alcoholic liquors to be sold or
dispensed on a club, buffet, | ||||||
19 | lounge or dining car operated on an electric,
gas or steam | ||||||
20 | railway in this State; and provided further, that railroad
| ||||||
21 | licensees exercising the above powers shall be subject to all | ||||||
22 | provisions of
Article VIII of this Act as applied to importing | ||||||
23 | distributors. A railroad
license shall also permit the | ||||||
24 | licensee to sell or dispense alcoholic
liquors on any club, | ||||||
25 | buffet, lounge or dining car operated on an electric,
gas or | ||||||
26 | steam railway regularly operated by a common carrier in this |
| |||||||
| |||||||
1 | State,
but shall not permit the sale for resale of any | ||||||
2 | alcoholic liquors to any
licensee within this State. A license | ||||||
3 | shall be obtained for each car in which
such sales are made. | ||||||
4 | (g) A boat license shall allow the sale of alcoholic | ||||||
5 | liquor in
individual drinks, on any passenger boat regularly | ||||||
6 | operated as a common
carrier on navigable waters in this State | ||||||
7 | or on any riverboat operated
under
the Illinois Gambling Act, | ||||||
8 | which boat or riverboat maintains a public
dining room or | ||||||
9 | restaurant thereon. | ||||||
10 | (h) A non-beverage user's license shall allow the licensee | ||||||
11 | to
purchase alcoholic liquor from a licensed manufacturer or | ||||||
12 | importing
distributor, without the imposition of any tax upon | ||||||
13 | the business of such
licensed manufacturer or importing | ||||||
14 | distributor as to such alcoholic
liquor to be used by such | ||||||
15 | licensee solely for the non-beverage purposes
set forth in | ||||||
16 | subsection (a) of Section 8-1 of this Act, and
such licenses | ||||||
17 | shall be divided and classified and shall permit the
purchase, | ||||||
18 | possession and use of limited and stated quantities of
| ||||||
19 | alcoholic liquor as follows: | ||||||
20 | Class 1, not to exceed ......................... 500 gallons
| ||||||
21 | Class 2, not to exceed ....................... 1,000 gallons
| ||||||
22 | Class 3, not to exceed ....................... 5,000 gallons
| ||||||
23 | Class 4, not to exceed ...................... 10,000 gallons
| ||||||
24 | Class 5, not to exceed ....................... 50,000 gallons | ||||||
25 | (i) A wine-maker's premises license shall allow a
licensee | ||||||
26 | that concurrently holds a first-class wine-maker's license to |
| |||||||
| |||||||
1 | sell
and offer for sale at retail in the premises specified in | ||||||
2 | such license
not more than 50,000 gallons of the first-class | ||||||
3 | wine-maker's wine that is
made at the first-class wine-maker's | ||||||
4 | licensed premises per year for use or
consumption, but not for | ||||||
5 | resale in any form. A wine-maker's premises
license shall | ||||||
6 | allow a licensee who concurrently holds a second-class
| ||||||
7 | wine-maker's license to sell and offer for sale at retail in | ||||||
8 | the premises
specified in such license up to 100,000 gallons | ||||||
9 | of the
second-class wine-maker's wine that is made at the | ||||||
10 | second-class wine-maker's
licensed premises per year
for use | ||||||
11 | or consumption but not for resale in any form. A first-class | ||||||
12 | wine-maker that concurrently holds a class 1 brewer license or | ||||||
13 | a class 1 craft distiller license shall not be eligible to hold | ||||||
14 | a wine-maker's premises license. A wine-maker's premises | ||||||
15 | license shall allow a
licensee that concurrently holds a | ||||||
16 | first-class wine-maker's license or a second-class
| ||||||
17 | wine-maker's license to sell
and offer for sale at retail at | ||||||
18 | the premises specified in the wine-maker's premises license, | ||||||
19 | for use or consumption but not for resale in any form, any | ||||||
20 | beer, wine, and spirits purchased from a licensed distributor. | ||||||
21 | Upon approval from the
State Commission, a wine-maker's | ||||||
22 | premises license
shall allow the licensee to sell and offer | ||||||
23 | for sale at (i) the wine-maker's
licensed premises and (ii) at | ||||||
24 | up to 2 additional locations for use and
consumption and not | ||||||
25 | for resale. Each location shall require additional
licensing | ||||||
26 | per location as specified in Section 5-3 of this Act. A |
| |||||||
| |||||||
1 | wine-maker's premises licensee shall
secure liquor liability | ||||||
2 | insurance coverage in an amount at
least equal to the maximum | ||||||
3 | liability amounts set forth in
subsection (a) of Section 6-21 | ||||||
4 | of this Act.
| ||||||
5 | (j) An airplane license shall permit the licensee to | ||||||
6 | import
alcoholic liquors into this State from any point in the | ||||||
7 | United States
outside this State and to store such alcoholic | ||||||
8 | liquors in this State; to
make wholesale purchases of | ||||||
9 | alcoholic liquors directly from
manufacturers, foreign | ||||||
10 | importers, distributors and importing
distributors from within | ||||||
11 | or outside this State; and to store such
alcoholic liquors in | ||||||
12 | this State; provided that the above powers may be
exercised | ||||||
13 | only in connection with the importation, purchase or storage
| ||||||
14 | of alcoholic liquors to be sold or dispensed on an airplane; | ||||||
15 | and
provided further, that airplane licensees exercising the | ||||||
16 | above powers
shall be subject to all provisions of Article | ||||||
17 | VIII of this Act as
applied to importing distributors. An | ||||||
18 | airplane licensee shall also
permit the sale or dispensing of | ||||||
19 | alcoholic liquors on any passenger
airplane regularly operated | ||||||
20 | by a common carrier in this State, but shall
not permit the | ||||||
21 | sale for resale of any alcoholic liquors to any licensee
| ||||||
22 | within this State. A single airplane license shall be required | ||||||
23 | of an
airline company if liquor service is provided on board | ||||||
24 | aircraft in this
State. The annual fee for such license shall | ||||||
25 | be as determined in
Section 5-3. | ||||||
26 | (k) A foreign importer's license shall permit such |
| |||||||
| |||||||
1 | licensee to purchase
alcoholic liquor from Illinois licensed | ||||||
2 | non-resident dealers only, and to
import alcoholic liquor | ||||||
3 | other than in bulk from any point outside the
United States and | ||||||
4 | to sell such alcoholic liquor to Illinois licensed
importing | ||||||
5 | distributors and to no one else in Illinois;
provided that (i) | ||||||
6 | the foreign importer registers with the State Commission
every
| ||||||
7 | brand of
alcoholic liquor that it proposes to sell to Illinois | ||||||
8 | licensees during the
license period, (ii) the foreign importer | ||||||
9 | complies with all of the provisions
of Section
6-9 of this Act | ||||||
10 | with respect to registration of such Illinois licensees as may
| ||||||
11 | be granted the
right to sell such brands at wholesale, and | ||||||
12 | (iii) the foreign importer complies with the provisions of | ||||||
13 | Sections 6-5 and 6-6 of this Act to the same extent that these | ||||||
14 | provisions apply to manufacturers. | ||||||
15 | (l) (i) A broker's license shall be required of all | ||||||
16 | persons
who solicit
orders for, offer to sell or offer to | ||||||
17 | supply alcoholic liquor to
retailers in the State of Illinois, | ||||||
18 | or who offer to retailers to ship or
cause to be shipped or to | ||||||
19 | make contact with distillers, craft distillers, rectifiers,
| ||||||
20 | brewers or manufacturers or any other party within or without | ||||||
21 | the State
of Illinois in order that alcoholic liquors be | ||||||
22 | shipped to a distributor,
importing distributor or foreign | ||||||
23 | importer, whether such solicitation or
offer is consummated | ||||||
24 | within or without the State of Illinois. | ||||||
25 | No holder of a retailer's license issued by the Illinois | ||||||
26 | Liquor
Control Commission shall purchase or receive any |
| |||||||
| |||||||
1 | alcoholic liquor, the
order for which was solicited or offered | ||||||
2 | for sale to such retailer by a
broker unless the broker is the | ||||||
3 | holder of a valid broker's license. | ||||||
4 | The broker shall, upon the acceptance by a retailer of the | ||||||
5 | broker's
solicitation of an order or offer to sell or supply or | ||||||
6 | deliver or have
delivered alcoholic liquors, promptly forward | ||||||
7 | to the Illinois Liquor
Control Commission a notification of | ||||||
8 | said transaction in such form as
the Commission may by | ||||||
9 | regulations prescribe. | ||||||
10 | (ii) A broker's license shall be required of
a person | ||||||
11 | within this State, other than a retail licensee,
who, for a fee | ||||||
12 | or commission, promotes, solicits, or accepts orders for
| ||||||
13 | alcoholic liquor, for use or consumption and not for
resale, | ||||||
14 | to be shipped from this State and delivered to residents | ||||||
15 | outside of
this State by an express company, common carrier, | ||||||
16 | or contract carrier.
This Section does not apply to any person | ||||||
17 | who promotes, solicits, or accepts
orders for wine as | ||||||
18 | specifically authorized in Section 6-29 of this Act. | ||||||
19 | A broker's license under this subsection (l)
shall not | ||||||
20 | entitle the holder to
buy or sell any
alcoholic liquors for his | ||||||
21 | own account or to take or deliver title to
such alcoholic | ||||||
22 | liquors. | ||||||
23 | This subsection (l)
shall not apply to distributors, | ||||||
24 | employees of
distributors, or employees of a manufacturer who | ||||||
25 | has registered the
trademark, brand or name of the alcoholic | ||||||
26 | liquor pursuant to Section 6-9
of this Act, and who regularly |
| |||||||
| |||||||
1 | sells such alcoholic liquor
in the State of Illinois only to | ||||||
2 | its registrants thereunder. | ||||||
3 | Any agent, representative, or person subject to | ||||||
4 | registration pursuant to
subsection (a-1) of this Section | ||||||
5 | shall not be eligible to receive a broker's
license. | ||||||
6 | (m) A non-resident dealer's license shall permit such | ||||||
7 | licensee to ship
into and warehouse alcoholic liquor into this | ||||||
8 | State from any point
outside of this State, and to sell such | ||||||
9 | alcoholic liquor to Illinois licensed
foreign importers and | ||||||
10 | importing distributors and to no one else in this State;
| ||||||
11 | provided that (i) said non-resident dealer shall register with | ||||||
12 | the Illinois Liquor
Control Commission each and every brand of | ||||||
13 | alcoholic liquor which it proposes
to sell to Illinois | ||||||
14 | licensees during the license period, (ii) it shall comply with | ||||||
15 | all of the provisions of Section 6-9 hereof with
respect to | ||||||
16 | registration of such Illinois licensees as may be granted the | ||||||
17 | right
to sell such brands at wholesale by duly filing such | ||||||
18 | registration statement, thereby authorizing the non-resident | ||||||
19 | dealer to proceed to sell such brands at wholesale, and (iii) | ||||||
20 | the non-resident dealer shall comply with the provisions of | ||||||
21 | Sections 6-5 and 6-6 of this Act to the same extent that these | ||||||
22 | provisions apply to manufacturers. No person licensed as a | ||||||
23 | non-resident dealer shall be granted a distributor's or | ||||||
24 | importing distributor's license. | ||||||
25 | (n) A brew pub license shall allow the licensee to only (i) | ||||||
26 | manufacture up to 155,000 gallons of beer per year only
on the |
| |||||||
| |||||||
1 | premises specified in the license, (ii) make sales of the
beer | ||||||
2 | manufactured on the premises or, with the approval of the | ||||||
3 | Commission, beer manufactured on another brew pub licensed | ||||||
4 | premises that is wholly owned and operated by the same | ||||||
5 | licensee to importing distributors, distributors,
and to | ||||||
6 | non-licensees for use and consumption, (iii) store the beer | ||||||
7 | upon
the premises, (iv) sell and offer for sale at retail from | ||||||
8 | the licensed
premises for off-premises
consumption no more | ||||||
9 | than 155,000 gallons per year so long as such sales are only | ||||||
10 | made in-person, (v) sell and offer for sale at retail for use | ||||||
11 | and consumption on the premises specified in the license any | ||||||
12 | form of alcoholic liquor purchased from a licensed distributor | ||||||
13 | or importing distributor, (vi) with the prior approval of the | ||||||
14 | Commission, annually transfer no more than 155,000 gallons of | ||||||
15 | beer manufactured on the premises to a licensed brew pub | ||||||
16 | wholly owned and operated by the same licensee, and (vii) | ||||||
17 | notwithstanding item (i) of this subsection, brew pubs wholly | ||||||
18 | owned and operated by the same licensee may combine each | ||||||
19 | location's production limit of 155,000 gallons of beer per | ||||||
20 | year and allocate the aggregate total between the wholly | ||||||
21 | owned, operated, and licensed locations. | ||||||
22 | A brew pub licensee shall not under any circumstance sell | ||||||
23 | or offer for sale beer manufactured by the brew pub licensee to | ||||||
24 | retail licensees. | ||||||
25 | A person who holds a class 2 brewer license may | ||||||
26 | simultaneously hold a brew pub license if the class 2 brewer |
| |||||||
| |||||||
1 | (i) does not, under any circumstance, sell or offer for sale | ||||||
2 | beer manufactured by the class 2 brewer to retail licensees; | ||||||
3 | (ii) does not hold more than 3 brew pub licenses in this State; | ||||||
4 | (iii) does not manufacture more than a combined 3,720,000 | ||||||
5 | gallons of beer per year, including the beer manufactured at | ||||||
6 | the brew pub; and (iv) is not a member of or affiliated with, | ||||||
7 | directly or indirectly, a manufacturer that produces more than | ||||||
8 | 3,720,000 gallons of beer per year or any other alcoholic | ||||||
9 | liquor. | ||||||
10 | Notwithstanding any other provision of this Act, a | ||||||
11 | licensed brewer, class 2 brewer, or non-resident dealer who | ||||||
12 | before July 1, 2015 manufactured less than 3,720,000 gallons | ||||||
13 | of beer per year and held a brew pub license on or before July | ||||||
14 | 1, 2015 may (i) continue to qualify for and hold that brew pub | ||||||
15 | license for the licensed premises and (ii) manufacture more | ||||||
16 | than 3,720,000 gallons of beer per year and continue to | ||||||
17 | qualify for and hold that brew pub license if that brewer, | ||||||
18 | class 2 brewer, or non-resident dealer does not simultaneously | ||||||
19 | hold a class 1 brewer license and is not a member of or | ||||||
20 | affiliated with, directly or indirectly, a manufacturer that | ||||||
21 | produces more than 3,720,000 gallons of beer per year or that | ||||||
22 | produces any other alcoholic liquor. | ||||||
23 | A brew pub licensee may apply for a class 3 brewer license | ||||||
24 | and upon: (i) meeting all applicable qualifications of this | ||||||
25 | Act, and relinquishing all commonly owned brew pub or retail | ||||||
26 | licenses shall be issued a class 3 brewer license. Nothing in |
| |||||||
| |||||||
1 | this Act shall prohibit the issuance of a class 3 brewer | ||||||
2 | license if the applicant: | ||||||
3 | (1) has a valid retail license on or before May 1, | ||||||
4 | 2021; | ||||||
5 | (2) has an ownership interest in at least two brew | ||||||
6 | pubs licenses on or before May 1, 2021; | ||||||
7 | (3) the brew pub licensee applies for a class 3 brewer | ||||||
8 | license on or before October 1, 2022 and relinquishes all | ||||||
9 | commonly owned brew pub licenses; and | ||||||
10 | (4) relinquishes all commonly owned retail licenses on | ||||||
11 | or before December 31, 2022. | ||||||
12 | If a brew pub licensee is issued a class 3 brewer license, | ||||||
13 | the class 3 brewer license shall expire on the same date as the | ||||||
14 | existing brew pub license and the State Commission shall not | ||||||
15 | require a class 3 brewer licensee to obtain a brewer license, | ||||||
16 | or in the alternative to pay a fee for a brewer license, until | ||||||
17 | the date the brew pub license of the applicant would have | ||||||
18 | expired. | ||||||
19 | (o) A caterer retailer license shall allow the holder
to | ||||||
20 | serve alcoholic liquors as an incidental part of a food | ||||||
21 | service that serves
prepared meals which excludes the serving | ||||||
22 | of snacks as
the primary meal, either on or off-site whether | ||||||
23 | licensed or unlicensed. A caterer retailer license shall allow | ||||||
24 | the holder, a distributor, or an importing distributor to | ||||||
25 | transfer any inventory to and from the holder's retail | ||||||
26 | premises and shall allow the holder to purchase alcoholic |
| |||||||
| |||||||
1 | liquor from a distributor or importing distributor to be | ||||||
2 | delivered directly to an off-site event. | ||||||
3 | Nothing in this Act prohibits a distributor or importing | ||||||
4 | distributor from offering credit or a refund for unused, | ||||||
5 | salable beer to a holder of a caterer retailer license or a | ||||||
6 | caterer retailer licensee from accepting a credit or refund | ||||||
7 | for unused, salable beer, in the event an act of God is the | ||||||
8 | sole reason an off-site event is cancelled and if: (i) the | ||||||
9 | holder of a caterer retailer license has not transferred | ||||||
10 | alcoholic liquor from its caterer retailer premises to an | ||||||
11 | off-site location; (ii) the distributor or importing | ||||||
12 | distributor offers the credit or refund for the unused, | ||||||
13 | salable beer that it delivered to the off-site premises and | ||||||
14 | not for any unused, salable beer that the distributor or | ||||||
15 | importing distributor delivered to the caterer retailer's | ||||||
16 | premises; and (iii) the unused, salable beer would likely | ||||||
17 | spoil if transferred to the caterer retailer's premises. A | ||||||
18 | caterer retailer license shall allow the holder to transfer | ||||||
19 | any inventory from any off-site location to its caterer | ||||||
20 | retailer premises at the conclusion of an off-site event or | ||||||
21 | engage a distributor or importing distributor to transfer any | ||||||
22 | inventory from any off-site location to its caterer retailer | ||||||
23 | premises at the conclusion of an off-site event, provided that | ||||||
24 | the distributor or importing distributor issues bona fide | ||||||
25 | charges to the caterer retailer licensee for fuel, labor, and | ||||||
26 | delivery and the distributor or importing distributor collects |
| |||||||
| |||||||
1 | payment from the caterer retailer licensee prior to the | ||||||
2 | distributor or importing distributor transferring inventory to | ||||||
3 | the caterer retailer premises. | ||||||
4 | For purposes of this subsection (o), an "act of God" means | ||||||
5 | an unforeseeable event, such as a rain or snow storm, hail, a | ||||||
6 | flood, or a similar event, that is the sole cause of the | ||||||
7 | cancellation of an off-site, outdoor event. | ||||||
8 | (p) An auction liquor license shall allow the licensee to | ||||||
9 | sell and offer
for sale at auction wine and spirits for use or | ||||||
10 | consumption, or for resale by
an Illinois liquor licensee in | ||||||
11 | accordance with provisions of this Act. An
auction liquor | ||||||
12 | license will be issued to a person and it will permit the
| ||||||
13 | auction liquor licensee to hold the auction anywhere in the | ||||||
14 | State. An auction
liquor license must be obtained for each | ||||||
15 | auction at least 14 days in advance of
the auction date. | ||||||
16 | (q) A special use permit license shall allow an Illinois | ||||||
17 | licensed
retailer to transfer a portion of its alcoholic | ||||||
18 | liquor inventory from its
retail licensed premises to the | ||||||
19 | premises specified in the license hereby
created; to purchase | ||||||
20 | alcoholic liquor from a distributor or importing distributor | ||||||
21 | to be delivered directly to the location specified in the | ||||||
22 | license hereby created; and to sell or offer for sale at | ||||||
23 | retail, only in the premises
specified in the license hereby | ||||||
24 | created, the transferred or delivered alcoholic liquor for
use | ||||||
25 | or consumption, but not for resale in any form. A special use | ||||||
26 | permit
license may be granted for the following time periods: |
| |||||||
| |||||||
1 | one day or less; 2 or
more days to a maximum of 15 days per | ||||||
2 | location in any 12-month period. An
applicant for the special | ||||||
3 | use permit license must also submit with the
application proof | ||||||
4 | satisfactory to the State Commission that the applicant will
| ||||||
5 | provide dram shop liability insurance to the maximum limits | ||||||
6 | and have local
authority approval. | ||||||
7 | A special use permit license shall allow the holder to | ||||||
8 | transfer any inventory from the holder's special use premises | ||||||
9 | to its retail premises at the conclusion of the special use | ||||||
10 | event or engage a distributor or importing distributor to | ||||||
11 | transfer any inventory from the holder's special use premises | ||||||
12 | to its retail premises at the conclusion of an off-site event, | ||||||
13 | provided that the distributor or importing distributor issues | ||||||
14 | bona fide charges to the special use permit licensee for fuel, | ||||||
15 | labor, and delivery and the distributor or importing | ||||||
16 | distributor collects payment from the retail licensee prior to | ||||||
17 | the distributor or importing distributor transferring | ||||||
18 | inventory to the retail premises. | ||||||
19 | Nothing in this Act prohibits a distributor or importing | ||||||
20 | distributor from offering credit or a refund for unused, | ||||||
21 | salable beer to a special use permit licensee or a special use | ||||||
22 | permit licensee from accepting a credit or refund for unused, | ||||||
23 | salable beer at the conclusion of the event specified in the | ||||||
24 | license if: (i) the holder of the special use permit license | ||||||
25 | has not transferred alcoholic liquor from its retail licensed | ||||||
26 | premises to the premises specified in the special use permit |
| |||||||
| |||||||
1 | license; (ii) the distributor or importing distributor offers | ||||||
2 | the credit or refund for the unused, salable beer that it | ||||||
3 | delivered to the premises specified in the special use permit | ||||||
4 | license and not for any unused, salable beer that the | ||||||
5 | distributor or importing distributor delivered to the | ||||||
6 | retailer's premises; and (iii) the unused, salable beer would | ||||||
7 | likely spoil if transferred to the retailer premises. | ||||||
8 | (r) A winery shipper's license shall allow a person
with a | ||||||
9 | first-class or second-class wine manufacturer's
license, a | ||||||
10 | first-class or second-class wine-maker's license,
or a limited | ||||||
11 | wine manufacturer's license or who is licensed to
make wine | ||||||
12 | under the laws of another state to ship wine
made by that | ||||||
13 | licensee directly to a resident of this
State who is 21 years | ||||||
14 | of age or older for that resident's
personal use and not for | ||||||
15 | resale. Prior to receiving a
winery shipper's license, an | ||||||
16 | applicant for the license must
provide the Commission with a | ||||||
17 | true copy of its current
license in any state in which it is | ||||||
18 | licensed as a manufacturer
of wine. An applicant for a winery | ||||||
19 | shipper's license must
also complete an application form that | ||||||
20 | provides any other
information the Commission deems necessary. | ||||||
21 | The application form shall include all addresses from which | ||||||
22 | the applicant for a winery shipper's license intends to ship | ||||||
23 | wine, including the name and address of any third party, | ||||||
24 | except for a common carrier, authorized to ship wine on behalf | ||||||
25 | of the manufacturer. The
application form shall include an | ||||||
26 | acknowledgement consenting
to the jurisdiction of the |
| |||||||
| |||||||
1 | Commission, the Illinois
Department of Revenue, and the courts | ||||||
2 | of this State concerning
the enforcement of this Act and any | ||||||
3 | related laws, rules, and
regulations, including authorizing | ||||||
4 | the Department of Revenue
and the Commission to conduct audits | ||||||
5 | for the purpose of
ensuring compliance with Public Act 95-634, | ||||||
6 | and an acknowledgement that the wine manufacturer is in | ||||||
7 | compliance with Section 6-2 of this Act. Any third party, | ||||||
8 | except for a common carrier, authorized to ship wine on behalf | ||||||
9 | of a first-class or second-class wine manufacturer's licensee, | ||||||
10 | a first-class or second-class wine-maker's licensee, a limited | ||||||
11 | wine manufacturer's licensee, or a person who is licensed to | ||||||
12 | make wine under the laws of another state shall also be | ||||||
13 | disclosed by the winery shipper's licensee, and a copy of the | ||||||
14 | written appointment of the third-party wine provider, except | ||||||
15 | for a common carrier, to the wine manufacturer shall be filed | ||||||
16 | with the State Commission as a supplement to the winery | ||||||
17 | shipper's license application or any renewal thereof. The | ||||||
18 | winery shipper's license holder shall affirm under penalty of | ||||||
19 | perjury, as part of the winery shipper's license application | ||||||
20 | or renewal, that he or she only ships wine, either directly or | ||||||
21 | indirectly through a third-party provider, from the licensee's | ||||||
22 | own production. | ||||||
23 | Except for a common carrier, a third-party provider | ||||||
24 | shipping wine on behalf of a winery shipper's license holder | ||||||
25 | is the agent of the winery shipper's license holder and, as | ||||||
26 | such, a winery shipper's license holder is responsible for the |
| |||||||
| |||||||
1 | acts and omissions of the third-party provider acting on | ||||||
2 | behalf of the license holder. A third-party provider, except | ||||||
3 | for a common carrier, that engages in shipping wine into | ||||||
4 | Illinois on behalf of a winery shipper's license holder shall | ||||||
5 | consent to the jurisdiction of the State Commission and the | ||||||
6 | State. Any third-party, except for a common carrier, holding | ||||||
7 | such an appointment shall, by February 1 of each calendar year | ||||||
8 | and upon request by the State Commission or the Department of | ||||||
9 | Revenue, file with the State Commission a statement detailing | ||||||
10 | each shipment made to an Illinois resident. The statement | ||||||
11 | shall include the name and address of the third-party provider | ||||||
12 | filing the statement, the time period covered by the | ||||||
13 | statement, and the following information: | ||||||
14 | (1) the name, address, and license number of the | ||||||
15 | winery shipper on whose behalf the shipment was made; | ||||||
16 | (2) the quantity of the products delivered; and | ||||||
17 | (3) the date and address of the shipment. | ||||||
18 | If the Department of Revenue or the State Commission requests | ||||||
19 | a statement under this paragraph, the third-party provider | ||||||
20 | must provide that statement no later than 30 days after the | ||||||
21 | request is made. Any books, records, supporting papers, and | ||||||
22 | documents containing information and data relating to a | ||||||
23 | statement under this paragraph shall be kept and preserved for | ||||||
24 | a period of 3 years, unless their destruction sooner is | ||||||
25 | authorized, in writing, by the Director of Revenue, and shall | ||||||
26 | be open and available to inspection by the Director of Revenue |
| |||||||
| |||||||
1 | or the State Commission or any duly authorized officer, agent, | ||||||
2 | or employee of the State Commission or the Department of | ||||||
3 | Revenue, at all times during business hours of the day. Any | ||||||
4 | person who violates any provision of this paragraph or any | ||||||
5 | rule of the State Commission for the administration and | ||||||
6 | enforcement of the provisions of this paragraph is guilty of a | ||||||
7 | Class C misdemeanor. In case of a continuing violation, each | ||||||
8 | day's continuance thereof shall be a separate and distinct | ||||||
9 | offense. | ||||||
10 | The State Commission shall adopt rules as soon as | ||||||
11 | practicable to implement the requirements of Public Act 99-904 | ||||||
12 | and shall adopt rules prohibiting any such third-party | ||||||
13 | appointment of a third-party provider, except for a common | ||||||
14 | carrier, that has been deemed by the State Commission to have | ||||||
15 | violated the provisions of this Act with regard to any winery | ||||||
16 | shipper licensee. | ||||||
17 | A winery shipper licensee must pay to the Department
of | ||||||
18 | Revenue the State liquor gallonage tax under Section 8-1 for
| ||||||
19 | all wine that is sold by the licensee and shipped to a person
| ||||||
20 | in this State. For the purposes of Section 8-1, a winery
| ||||||
21 | shipper licensee shall be taxed in the same manner as a
| ||||||
22 | manufacturer of wine. A licensee who is not otherwise required | ||||||
23 | to register under the Retailers' Occupation Tax Act must
| ||||||
24 | register under the Use Tax Act to collect and remit use tax to
| ||||||
25 | the Department of Revenue for all gallons of wine that are sold
| ||||||
26 | by the licensee and shipped to persons in this State. If a
|
| |||||||
| |||||||
1 | licensee fails to remit the tax imposed under this Act in
| ||||||
2 | accordance with the provisions of Article VIII of this Act, | ||||||
3 | the
winery shipper's license shall be revoked in accordance
| ||||||
4 | with the provisions of Article VII of this Act. If a licensee
| ||||||
5 | fails to properly register and remit tax under the Use Tax Act
| ||||||
6 | or the Retailers' Occupation Tax Act for all wine that is sold
| ||||||
7 | by the winery shipper and shipped to persons in this
State, the | ||||||
8 | winery shipper's license shall be revoked in
accordance with | ||||||
9 | the provisions of Article VII of this Act. | ||||||
10 | A winery shipper licensee must collect, maintain, and
| ||||||
11 | submit to the Commission on a semi-annual basis the
total | ||||||
12 | number of cases per resident of wine shipped to residents
of | ||||||
13 | this State.
A winery shipper licensed under this subsection | ||||||
14 | (r)
must comply with the requirements of Section 6-29 of this | ||||||
15 | Act. | ||||||
16 | Pursuant to paragraph (5.1) or (5.3) of subsection (a) of | ||||||
17 | Section 3-12, the State Commission may receive, respond to, | ||||||
18 | and investigate any complaint and impose any of the remedies | ||||||
19 | specified in paragraph (1) of subsection (a) of Section 3-12. | ||||||
20 | As used in this subsection, "third-party provider" means | ||||||
21 | any entity that provides fulfillment house services, including | ||||||
22 | warehousing, packaging, distribution, order processing, or | ||||||
23 | shipment of wine, but not the sale of wine, on behalf of a | ||||||
24 | licensed winery shipper. | ||||||
25 | (s) A craft distiller tasting permit license shall allow | ||||||
26 | an Illinois licensed class 1 craft distiller or class 2 craft |
| |||||||
| |||||||
1 | distiller to transfer a portion of its alcoholic liquor | ||||||
2 | inventory from its class 1 craft distiller or class 2 craft | ||||||
3 | distiller licensed premises to the premises specified in the | ||||||
4 | license hereby created and to conduct a sampling, only in the | ||||||
5 | premises specified in the license hereby created, of the | ||||||
6 | transferred alcoholic liquor in accordance with subsection (c) | ||||||
7 | of Section 6-31 of this Act. The transferred alcoholic liquor | ||||||
8 | may not be sold or resold in any form. An applicant for the | ||||||
9 | craft distiller tasting permit license must also submit with | ||||||
10 | the application proof satisfactory to the State Commission | ||||||
11 | that the applicant will provide dram shop liability insurance | ||||||
12 | to the maximum limits and have local authority approval. | ||||||
13 | (t) A brewer warehouse permit may be issued to the holder | ||||||
14 | of a class 1 brewer license or a class 2 brewer license. If the | ||||||
15 | holder of the permit is a class 1 brewer licensee, the brewer | ||||||
16 | warehouse permit shall allow the holder to store or warehouse | ||||||
17 | up to 930,000 gallons of tax-determined beer manufactured by | ||||||
18 | the holder of the permit at the premises specified on the | ||||||
19 | permit. If the holder of the permit is a class 2 brewer | ||||||
20 | licensee, the brewer warehouse permit shall allow the holder | ||||||
21 | to store or warehouse up to 3,720,000 gallons of | ||||||
22 | tax-determined beer manufactured by the holder of the permit | ||||||
23 | at the premises specified on the permit. Sales to | ||||||
24 | non-licensees are prohibited at the premises specified in the | ||||||
25 | brewer warehouse permit. | ||||||
26 | (u) A distilling pub license shall allow the licensee to |
| |||||||
| |||||||
1 | only (i) manufacture up to 5,000 gallons of spirits per year | ||||||
2 | only on the premises specified in the license, (ii) make sales | ||||||
3 | of the spirits manufactured on the premises or, with the | ||||||
4 | approval of the State Commission, spirits manufactured on | ||||||
5 | another distilling pub licensed premises that is wholly owned | ||||||
6 | and operated by the same licensee to importing distributors | ||||||
7 | and distributors and to non-licensees for use and consumption, | ||||||
8 | (iii) store the spirits upon the premises, (iv) sell and offer | ||||||
9 | for sale at retail from the licensed premises for off-premises | ||||||
10 | consumption no more than 5,000 gallons per year so long as such | ||||||
11 | sales are only made in-person, (v) sell and offer for sale at | ||||||
12 | retail for use and consumption on the premises specified in | ||||||
13 | the license any form of alcoholic liquor purchased from a | ||||||
14 | licensed distributor or importing distributor, and (vi) with | ||||||
15 | the prior approval of the State Commission, annually transfer | ||||||
16 | no more than 5,000 gallons of spirits manufactured on the | ||||||
17 | premises to a licensed distilling pub wholly owned and | ||||||
18 | operated by the same licensee. | ||||||
19 | A distilling pub licensee shall not under any circumstance | ||||||
20 | sell or offer for sale spirits manufactured by the distilling | ||||||
21 | pub licensee to retail licensees. | ||||||
22 | A person who holds a class 2 craft distiller license may | ||||||
23 | simultaneously hold a distilling pub license if the class 2 | ||||||
24 | craft distiller (i) does not, under any circumstance, sell or | ||||||
25 | offer for sale spirits manufactured by the class 2 craft | ||||||
26 | distiller to retail licensees; (ii) does not hold more than 3 |
| |||||||
| |||||||
1 | distilling pub licenses in this State; (iii) does not | ||||||
2 | manufacture more than a combined 100,000 gallons of spirits | ||||||
3 | per year, including the spirits manufactured at the distilling | ||||||
4 | pub; and (iv) is not a member of or affiliated with, directly | ||||||
5 | or indirectly, a manufacturer that produces more than 100,000 | ||||||
6 | gallons of spirits per year or any other alcoholic liquor. | ||||||
7 | (v) A craft distiller warehouse permit may be issued to | ||||||
8 | the holder of a class 1 craft distiller or class 2 craft | ||||||
9 | distiller license. The craft distiller warehouse permit shall | ||||||
10 | allow the holder to store or warehouse up to 500,000 gallons of | ||||||
11 | spirits manufactured by the holder of the permit at the | ||||||
12 | premises specified on the permit. Sales to non-licensees are | ||||||
13 | prohibited at the premises specified in the craft distiller | ||||||
14 | warehouse permit. | ||||||
15 | (w) A beer showcase permit license shall allow an | ||||||
16 | Illinois-licensed distributor to transfer a portion of its | ||||||
17 | beer inventory from its licensed premises to the premises | ||||||
18 | specified in the beer showcase permit license, and, in the | ||||||
19 | case of a class 3 brewer, transfer only beer the class 3 brewer | ||||||
20 | manufactures from its licensed premises to the premises | ||||||
21 | specified in the beer showcase permit license; and to sell or | ||||||
22 | offer for sale at retail, only in the premises specified in the | ||||||
23 | beer showcase permit license, the transferred or delivered | ||||||
24 | beer for on or off premise consumption, but not for resale in | ||||||
25 | any form and to sell to non-licensees not more than 96 fluid | ||||||
26 | ounces of beer per person. A beer showcase permit license may |
| |||||||||||||||||
| |||||||||||||||||
1 | be granted for the following time periods: one day or less; or | ||||||||||||||||
2 | 2 or more days to a maximum of 15 days per location in any | ||||||||||||||||
3 | 12-month period. An applicant for a beer showcase permit | ||||||||||||||||
4 | license must also submit with the application proof | ||||||||||||||||
5 | satisfactory to the State Commission that the applicant will | ||||||||||||||||
6 | provide dram shop liability insurance to the maximum limits | ||||||||||||||||
7 | and have local authority approval. The State Commission shall | ||||||||||||||||
8 | require the beer showcase applicant to comply with Section | ||||||||||||||||
9 | 6-27.1. | ||||||||||||||||
10 | (Source: P.A. 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; | ||||||||||||||||
11 | 100-816, eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. | ||||||||||||||||
12 | 8-23-18; 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; 101-81, | ||||||||||||||||
13 | eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. 8-23-19; | ||||||||||||||||
14 | 101-615, eff. 12-20-19; 101-668, eff. 1-1-22.)
| ||||||||||||||||
15 | (235 ILCS 5/5-3) (from Ch. 43, par. 118) | ||||||||||||||||
16 | Sec. 5-3. License fees. Except as otherwise provided | ||||||||||||||||
17 | herein, at the time
application is made to the State | ||||||||||||||||
18 | Commission for a license of any class, the
applicant shall pay | ||||||||||||||||
19 | to the State Commission the fee hereinafter provided for
the | ||||||||||||||||
20 | kind of license applied for. | ||||||||||||||||
21 | The fee for licenses issued by the State Commission shall | ||||||||||||||||
22 | be as follows: | ||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | Fees collected under this Section shall be paid into the
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | Dram Shop Fund. On and after July 1, 2003 and until June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | 2016, of the funds received for a
retailer's license, in
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16 | addition to the
first $175, an additional $75 shall be paid | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | into the Dram Shop Fund, and $250
shall be
paid into the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
18 | General Revenue Fund. On and after June 30, 2016, one-half of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
19 | the funds received for a retailer's license shall be paid into | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | the Dram Shop Fund and one-half of the funds received for a | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | retailer's license shall be paid into the General Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | Fund. Beginning June 30, 1990 and on June 30
of each
subsequent | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | year through June 29, 2003, any balance over $5,000,000
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | remaining in the Dram Shop Fund
shall be credited to State | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 | liquor licensees and applied against their fees for
State | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
26 | liquor licenses for the following year. The amount credited to |
| |||||||
| |||||||
1 | each
licensee shall be a proportion of the balance in the Dram | ||||||
2 | Fund that is the
same as the proportion of the license fee paid | ||||||
3 | by the licensee under
this Section for the period in which the | ||||||
4 | balance was accumulated to the
aggregate fees paid by all | ||||||
5 | licensees during that period. | ||||||
6 | No fee shall be paid for licenses issued by the State | ||||||
7 | Commission to
the following non-beverage users: | ||||||
8 | (a) Hospitals, sanitariums, or clinics when their use | ||||||
9 | of alcoholic
liquor is exclusively medicinal, mechanical | ||||||
10 | or scientific. | ||||||
11 | (b) Universities, colleges of learning or schools when | ||||||
12 | their use of
alcoholic liquor is exclusively medicinal, | ||||||
13 | mechanical or scientific. | ||||||
14 | (c) Laboratories when their use is exclusively for the | ||||||
15 | purpose of
scientific research. | ||||||
16 | (Source: P.A. 100-201, eff. 8-18-17; 100-816, eff. 8-13-18; | ||||||
17 | 101-482, eff. 8-23-19; 101-615, eff. 12-20-19; revised | ||||||
18 | 8-19-20.)
| ||||||
19 | (235 ILCS 5/6-4) (from Ch. 43, par. 121)
| ||||||
20 | Sec. 6-4. (a) No person licensed by any licensing | ||||||
21 | authority as a
distiller, or a wine manufacturer, or any | ||||||
22 | subsidiary or affiliate
thereof, or any officer, associate, | ||||||
23 | member, partner, representative,
employee, agent or | ||||||
24 | shareholder owning more than 5% of the outstanding
shares of | ||||||
25 | such person shall be issued an importing distributor's or
|
| |||||||
| |||||||
1 | distributor's license, nor shall any person licensed by any | ||||||
2 | licensing
authority as an importing distributor, distributor | ||||||
3 | or retailer, or any
subsidiary or affiliate thereof, or any | ||||||
4 | officer or associate, member,
partner, representative, | ||||||
5 | employee, agent or shareholder owning more than
5% of the | ||||||
6 | outstanding shares of such person be issued a distiller's
| ||||||
7 | license, a craft distiller's license, or a wine manufacturer's | ||||||
8 | license; and no person or persons
licensed as a distiller, | ||||||
9 | craft distiller, class 1 craft distiller, or class 2 craft | ||||||
10 | distiller by any licensing authority shall have any
interest, | ||||||
11 | directly or indirectly, with such distributor or importing
| ||||||
12 | distributor.
| ||||||
13 | However, an importing distributor or distributor, which on | ||||||
14 | January
1, 1985 is owned by a brewer, or any subsidiary or | ||||||
15 | affiliate thereof or any
officer, associate, member, partner, | ||||||
16 | representative, employee, agent or
shareholder owning more | ||||||
17 | than 5% of the outstanding shares of the importing
distributor | ||||||
18 | or distributor referred to in this paragraph, may own or
| ||||||
19 | acquire an ownership interest of more than 5% of the | ||||||
20 | outstanding shares of
a wine manufacturer and be issued a wine
| ||||||
21 | manufacturer's license by any licensing authority.
| ||||||
22 | (b) The foregoing provisions shall not apply to any person | ||||||
23 | licensed
by any licensing authority as a distiller or wine | ||||||
24 | manufacturer, or to
any subsidiary or affiliate of any | ||||||
25 | distiller or wine manufacturer who
shall have been heretofore | ||||||
26 | licensed by the State Commission as either an
importing |
| |||||||
| |||||||
1 | distributor or distributor during the annual licensing period
| ||||||
2 | expiring June 30, 1947, and shall actually have made sales | ||||||
3 | regularly to
retailers.
| ||||||
4 | (c) Provided, however, that in such instances where a | ||||||
5 | distributor's
or importing distributor's license has been | ||||||
6 | issued to any distiller or
wine manufacturer or to any | ||||||
7 | subsidiary or affiliate of any distiller or
wine manufacturer | ||||||
8 | who has, during the licensing period ending June 30,
1947, | ||||||
9 | sold or distributed as such licensed distributor or importing
| ||||||
10 | distributor alcoholic liquors and wines to retailers, such | ||||||
11 | distiller or
wine manufacturer or any subsidiary or affiliate | ||||||
12 | of any distiller or
wine manufacturer holding such | ||||||
13 | distributor's or importing distributor's
license may continue | ||||||
14 | to sell or distribute to retailers such alcoholic
liquors and | ||||||
15 | wines which are manufactured, distilled, processed or
marketed | ||||||
16 | by distillers and wine manufacturers whose products it sold or
| ||||||
17 | distributed to retailers during the whole or any part of its | ||||||
18 | licensing
periods; and such additional brands and additional | ||||||
19 | products may be added
to the line of such distributor or | ||||||
20 | importing distributor, provided, that
such brands and such | ||||||
21 | products were not sold or distributed by any
distributor or | ||||||
22 | importing distributor licensed by the State Commission
during | ||||||
23 | the licensing period ending June 30, 1947, but can not sell or
| ||||||
24 | distribute to retailers any other alcoholic liquors or wines.
| ||||||
25 | (d) It shall be unlawful for any distiller licensed | ||||||
26 | anywhere to have
any stock ownership or interest in any |
| |||||||
| |||||||
1 | distributor's or importing
distributor's license wherein any | ||||||
2 | other person has an interest therein
who is not a distiller and | ||||||
3 | does not own more than 5% of any stock in any
distillery. | ||||||
4 | Nothing herein contained shall apply to such distillers or
| ||||||
5 | their subsidiaries or affiliates, who had a distributor's or | ||||||
6 | importing
distributor's license during the licensing period | ||||||
7 | ending June 30, 1947,
which license was owned in whole by such | ||||||
8 | distiller, or subsidiaries or
affiliates of such distiller.
| ||||||
9 | (e) Any person licensed as a brewer, class 1 brewer, or | ||||||
10 | class 2 brewer shall be
permitted to sell on the licensed | ||||||
11 | premises to non-licensees for on or off-premises consumption | ||||||
12 | for the premises in which he
or she actually conducts such | ||||||
13 | business: (i) beer manufactured by the brewer, class 1 brewer, | ||||||
14 | or class 2 brewer , or class 3 brewer ; (ii) beer manufactured by | ||||||
15 | any other brewer, class 1 brewer, or class 2 brewer , or class 3 | ||||||
16 | brewer ; and (iii) cider or mead. Any person licensed as a class | ||||||
17 | 3 brewer shall be permitted to sell on the licensed premises to | ||||||
18 | non-licensees for on or off premises consumption for the | ||||||
19 | premises in which he or she actually conducts such business: | ||||||
20 | (i) beer manufactured by the class 3 brewer on the premises; | ||||||
21 | (ii) beer manufactured by any other brewer, class 1 brewer, | ||||||
22 | class 2 brewer, or class 3 brewer; and (iii) cider, wine, and | ||||||
23 | spirits. All products sold under this subsection that are not | ||||||
24 | manufactured on premises must be purchased through a licensed | ||||||
25 | distributor, importing distributor, or manufacturer with | ||||||
26 | self-distribution privileges . Such sales shall be limited to |
| |||||||
| |||||||
1 | on-premises, in-person sales only, for lawful consumption on | ||||||
2 | or off premises. Such authorization shall be considered a | ||||||
3 | privilege granted by the brewer license and, other than a | ||||||
4 | manufacturer of beer
as stated above, no manufacturer or | ||||||
5 | distributor or importing
distributor, excluding airplane | ||||||
6 | licensees exercising powers provided in
paragraph (i) of | ||||||
7 | Section 5-1 of this Act, or any subsidiary or affiliate
| ||||||
8 | thereof, or any officer,
associate, member, partner, | ||||||
9 | representative, employee or agent, or
shareholder shall be | ||||||
10 | issued a retailer's license, nor shall any person
having a | ||||||
11 | retailer's license, excluding airplane licensees exercising | ||||||
12 | powers
provided in paragraph (i) of Section 5-1 of this
Act, or | ||||||
13 | any subsidiary or affiliate thereof, or
any officer, | ||||||
14 | associate, member, partner, representative or agent, or
| ||||||
15 | shareholder be issued a manufacturer's license or importing | ||||||
16 | distributor's
license.
| ||||||
17 | A manufacturer of beer that imports or transfers beer into | ||||||
18 | this State must comply with Sections 6-8 and 8-1 of this Act. | ||||||
19 | A person who holds a class 1 or class 2 brewer license and | ||||||
20 | is authorized by this Section to sell beer to non-licensees | ||||||
21 | shall not sell beer to non-licensees from more than 3 total | ||||||
22 | brewer or commonly owned brew pub licensed locations in this | ||||||
23 | State. The class 1 or class 2 brewer shall designate to the | ||||||
24 | State Commission the brewer or brew pub locations from which | ||||||
25 | it will sell beer to non-licensees. | ||||||
26 | A person licensed as a class 1 craft distiller or a class 2 |
| |||||||
| |||||||
1 | craft distiller, including a person who holds more than one | ||||||
2 | class 1 craft distiller or class 2 craft distiller license, | ||||||
3 | not affiliated with any other person manufacturing spirits may | ||||||
4 | be authorized by the State Commission to sell (1) up to 5,000 | ||||||
5 | gallons of spirits produced by the person to non-licensees for | ||||||
6 | on or off-premises consumption for the premises in which he or | ||||||
7 | she actually conducts business permitting only the retail sale | ||||||
8 | of spirits manufactured at such premises and (2) vermouth | ||||||
9 | purchased through a licensed distributor for on-premises | ||||||
10 | consumption. Such sales shall be limited to on-premises, | ||||||
11 | in-person sales only, for lawful consumption on or off | ||||||
12 | premises, and such authorization shall be considered a | ||||||
13 | privilege granted by the class 1 craft distiller or class 2 | ||||||
14 | craft distiller license. A class 1 craft distiller or class 2 | ||||||
15 | craft distiller licensed for retail sale shall secure liquor | ||||||
16 | liability insurance coverage in an amount at least equal to | ||||||
17 | the maximum liability amounts set forth in subsection (a) of | ||||||
18 | Section 6-21 of this Act. | ||||||
19 | A class 1 craft distiller or class 2 craft distiller | ||||||
20 | license holder shall not deliver any alcoholic liquor to any | ||||||
21 | non-licensee off the licensed premises. A class 1 craft | ||||||
22 | distiller or class 2 craft distiller shall affirm in its | ||||||
23 | annual license application that it does not produce more than | ||||||
24 | 50,000 or 100,000 gallons of distilled spirits annually, | ||||||
25 | whichever is applicable, and that the craft distiller does not | ||||||
26 | sell more than 5,000 gallons of spirits to non-licensees for |
| |||||||
| |||||||
1 | on or off-premises consumption. In the application, which | ||||||
2 | shall be sworn under penalty of perjury, the class 1 craft | ||||||
3 | distiller or class 2 craft distiller shall state the volume of | ||||||
4 | production and sales for each year since the class 1 craft | ||||||
5 | distiller's or class 2 craft distiller's establishment. | ||||||
6 | A person who holds a class 1 craft distiller or class 2 | ||||||
7 | craft distiller license and is authorized by this Section to | ||||||
8 | sell spirits to non-licensees shall not sell spirits to | ||||||
9 | non-licensees from more than 3 total distillery or commonly | ||||||
10 | owned distilling pub licensed locations in this State. The | ||||||
11 | class 1 craft distiller or class 2 craft distiller shall | ||||||
12 | designate to the State Commission the distillery or distilling | ||||||
13 | pub locations from which it will sell spirits to | ||||||
14 | non-licensees. | ||||||
15 | (f) (Blank).
| ||||||
16 | (g) Notwithstanding any of the foregoing prohibitions, a | ||||||
17 | limited wine
manufacturer may sell at retail at its | ||||||
18 | manufacturing site for on or off
premises consumption and may | ||||||
19 | sell to distributors. A limited wine manufacturer licensee
| ||||||
20 | shall secure liquor liability insurance coverage in an amount
| ||||||
21 | at least equal to the maximum liability amounts set forth in
| ||||||
22 | subsection (a) of Section 6-21 of this Act.
| ||||||
23 | (h) The changes made to this Section by Public Act 99-47 | ||||||
24 | shall not diminish or impair the rights of any person, whether | ||||||
25 | a distiller, wine manufacturer, agent, or affiliate thereof, | ||||||
26 | who requested in writing and submitted documentation to the |
| |||||||
| |||||||
1 | State Commission on or before February 18, 2015 to be approved | ||||||
2 | for a retail license pursuant to what has heretofore been | ||||||
3 | subsection (f); provided that, on or before that date, the | ||||||
4 | State Commission considered the intent of that person to apply | ||||||
5 | for the retail license under that subsection and, by recorded | ||||||
6 | vote, the State Commission approved a resolution indicating | ||||||
7 | that such a license application could be lawfully approved | ||||||
8 | upon that person duly filing a formal application for a retail | ||||||
9 | license and if that person, within 90 days of the State | ||||||
10 | Commission appearance and recorded vote, first filed an | ||||||
11 | application with the appropriate local commission, which | ||||||
12 | application was subsequently approved by the appropriate local | ||||||
13 | commission prior to consideration by the State Commission of | ||||||
14 | that person's application for a retail license. It is further | ||||||
15 | provided that the State Commission may approve the person's | ||||||
16 | application for a retail license or renewals of such license | ||||||
17 | if such person continues to diligently adhere to all | ||||||
18 | representations made in writing to the State Commission on or | ||||||
19 | before February 18, 2015, or thereafter, or in the affidavit | ||||||
20 | filed by that person with the State Commission to support the | ||||||
21 | issuance of a retail license and to abide by all applicable | ||||||
22 | laws and duly adopted rules. | ||||||
23 | (i) Notwithstanding any other provision of this Act, the | ||||||
24 | common ownership of a brewery, winery, or a distillery shall | ||||||
25 | not authorize the grant of and aggregation of retail | ||||||
26 | privileges granted to any person or licensees in subsection |
| |||||||
| |||||||
1 | (e). Any person or licensee with common ownership in a | ||||||
2 | brewery, winery, or a distillery shall be limited to the | ||||||
3 | retail privileges granted to only one of the commonly owned | ||||||
4 | brewery, winery, or distillery. The State Commission is hereby | ||||||
5 | authorized to restrict the locations of any commonly owned | ||||||
6 | brewery, winery, or distillery to prevent the expansion of | ||||||
7 | retail privileges, including, without limitation, restricting | ||||||
8 | a commonly owned brewery, winery, or distillery from operating | ||||||
9 | in adjacent licensed premises or restricting self-distribution | ||||||
10 | privileges. | ||||||
11 | (Source: P.A. 100-201, eff. 8-18-17; 100-816, eff. 8-13-18; | ||||||
12 | 100-885, eff. 8-14-18; 101-81, eff. 7-12-19; 101-482, eff. | ||||||
13 | 8-23-19; 101-615, eff. 12-20-19.)
| ||||||
14 | (235 ILCS 5/6-5) (from Ch. 43, par. 122)
| ||||||
15 | Sec. 6-5.
Except as otherwise provided in this Section, it | ||||||
16 | is unlawful
for any person having a retailer's license or
any | ||||||
17 | officer, associate, member, representative or agent of such | ||||||
18 | licensee
to accept, receive or borrow money, or anything else | ||||||
19 | of value, or accept
or receive credit (other than | ||||||
20 | merchandising credit in the ordinary
course of business for a | ||||||
21 | period not to exceed 30 days) directly or
indirectly from any | ||||||
22 | manufacturer, importing distributor or distributor
of | ||||||
23 | alcoholic liquor, or from any person connected with or in any | ||||||
24 | way
representing, or from any member of the family of, such | ||||||
25 | manufacturer,
importing distributor, distributor or |
| |||||||
| |||||||
1 | wholesaler, or from any
stockholders in any corporation | ||||||
2 | engaged in manufacturing, distributing
or wholesaling of such | ||||||
3 | liquor, or from any officer, manager, agent or
representative | ||||||
4 | of said manufacturer. Except as provided below, it is
unlawful | ||||||
5 | for any manufacturer
or distributor or importing distributor | ||||||
6 | to give or lend money or
anything of value, or otherwise loan | ||||||
7 | or extend credit (except such
merchandising credit) directly | ||||||
8 | or indirectly to any retail licensee or
to the manager, | ||||||
9 | representative, agent, officer or director of such
licensee. A | ||||||
10 | manufacturer, distributor or importing distributor may furnish
| ||||||
11 | free advertising, posters,
signs, brochures, hand-outs, or | ||||||
12 | other promotional devices or materials to
any unit of | ||||||
13 | government owning or operating any auditorium, exhibition | ||||||
14 | hall,
recreation facility or other similar facility holding a | ||||||
15 | retailer's license,
provided that the primary purpose of such | ||||||
16 | promotional devices or materials
is to promote public events | ||||||
17 | being held at such facility. A unit of government
owning or | ||||||
18 | operating such a facility holding a retailer's license may | ||||||
19 | accept
such promotional devices or materials designed | ||||||
20 | primarily to promote public
events held at the facility. No | ||||||
21 | retail licensee delinquent beyond the
30 day period specified | ||||||
22 | in this Section shall
solicit, accept or receive credit, | ||||||
23 | purchase or acquire alcoholic
liquors, directly or indirectly | ||||||
24 | from any other licensee, and no
manufacturer, distributor or | ||||||
25 | importing distributor shall knowingly grant
or extend credit, | ||||||
26 | sell, furnish or supply alcoholic liquors to any such
|
| |||||||
| |||||||
1 | delinquent retail licensee; provided that the purchase price | ||||||
2 | of all beer
sold to a retail licensee shall be paid by the | ||||||
3 | retail licensee in cash
on or before delivery of the beer, and | ||||||
4 | unless the purchase price payable
by a retail licensee for | ||||||
5 | beer sold to him in returnable bottles shall
expressly include | ||||||
6 | a charge for the bottles and cases, the retail
licensee shall, | ||||||
7 | on or before delivery of such beer, pay the seller in
cash a | ||||||
8 | deposit in an amount not less than the deposit required to be
| ||||||
9 | paid by the distributor to the brewer; but where the brewer | ||||||
10 | sells direct
to the retailer, the deposit shall be an amount no | ||||||
11 | less than that
required by the brewer from his own | ||||||
12 | distributors; and provided further,
that in no instance shall | ||||||
13 | this deposit be less than 50 cents for each
case of beer in | ||||||
14 | pint or smaller bottles and 60 cents for each case of
beer in | ||||||
15 | quart or half-gallon bottles; and provided further, that the
| ||||||
16 | purchase price of all beer sold to an importing distributor or
| ||||||
17 | distributor shall be paid by such importing distributor or | ||||||
18 | distributor
in cash on or before the 15th day (Sundays and | ||||||
19 | holidays excepted) after
delivery of such beer to such | ||||||
20 | purchaser; and unless the purchase price
payable by such | ||||||
21 | importing distributor or distributor for beer sold in
| ||||||
22 | returnable bottles and cases shall expressly include a charge | ||||||
23 | for the
bottles and cases, such importing distributor or | ||||||
24 | distributor shall, on
or before the 15th day (Sundays and | ||||||
25 | holidays excepted) after delivery of
such beer to such | ||||||
26 | purchaser, pay the seller in cash a required amount as
a |
| |||||||
| |||||||
1 | deposit to assure the return of such bottles and cases. | ||||||
2 | Nothing herein
contained shall prohibit any licensee from | ||||||
3 | crediting or refunding to a
purchaser the actual amount of | ||||||
4 | money paid for bottles, cases, kegs or
barrels returned by the | ||||||
5 | purchaser to the seller or paid by the purchaser
as a deposit | ||||||
6 | on bottles, cases, kegs or barrels, when such containers or
| ||||||
7 | packages are returned to the seller. Nothing herein contained | ||||||
8 | shall
prohibit any manufacturer, importing distributor or | ||||||
9 | distributor from
extending usual and customary credit for | ||||||
10 | alcoholic liquor sold to
customers or purchasers who live in | ||||||
11 | or maintain places of business
outside of this State when such | ||||||
12 | alcoholic liquor is actually transported
and delivered to such | ||||||
13 | points outside of this State.
| ||||||
14 | A manufacturer, distributor, or importing distributor may | ||||||
15 | furnish free social media advertising to a retail licensee if | ||||||
16 | the social media advertisement does not contain the retail | ||||||
17 | price of any alcoholic liquor and the social media | ||||||
18 | advertisement complies with any applicable rules or | ||||||
19 | regulations issued by the Alcohol and Tobacco Tax and Trade | ||||||
20 | Bureau of the United States Department of the Treasury. A | ||||||
21 | manufacturer, distributor, or importing distributor may list | ||||||
22 | the names of one or more unaffiliated retailers in the | ||||||
23 | advertisement of alcoholic liquor through social media. | ||||||
24 | Nothing in this Section shall prohibit a retailer from | ||||||
25 | communicating with a manufacturer, distributor, or importing | ||||||
26 | distributor on social media or sharing media on the social |
| |||||||
| |||||||
1 | media of a manufacturer, distributor, or importing | ||||||
2 | distributor. A retailer may request free social media | ||||||
3 | advertising from a manufacturer, distributor, or importing | ||||||
4 | distributor. Nothing in this Section shall prohibit a | ||||||
5 | manufacturer, distributor, or importing distributor from | ||||||
6 | sharing, reposting, or otherwise forwarding a social media | ||||||
7 | post by a retail licensee, so long as the sharing, reposting, | ||||||
8 | or forwarding of the social media post does not contain the | ||||||
9 | retail price of any alcoholic liquor. No manufacturer, | ||||||
10 | distributor, or importing distributor shall pay or reimburse a | ||||||
11 | retailer, directly or indirectly, for any social media | ||||||
12 | advertising services, except as specifically permitted in this | ||||||
13 | Act. No retailer shall accept any payment or reimbursement, | ||||||
14 | directly or indirectly, for any social media advertising | ||||||
15 | services offered by a manufacturer, distributor, or importing | ||||||
16 | distributor, except as specifically permitted in this Act. For | ||||||
17 | the purposes of this Section, "social media" means a service, | ||||||
18 | platform, or site where users communicate with one another and | ||||||
19 | share media, such as pictures, videos, music, and blogs, with | ||||||
20 | other users free of charge. | ||||||
21 | No right of action shall exist for the collection of any | ||||||
22 | claim based
upon credit extended to a distributor, importing | ||||||
23 | distributor or retail
licensee contrary to the provisions of | ||||||
24 | this Section.
| ||||||
25 | Every manufacturer, importing distributor and distributor | ||||||
26 | shall
submit or cause to be submitted, to the State |
| |||||||
| |||||||
1 | Commission, in triplicate,
not later than Thursday of each | ||||||
2 | calendar week, a verified written list
of the names and | ||||||
3 | respective addresses of each retail licensee purchasing
| ||||||
4 | spirits or wine from such manufacturer, importing distributor | ||||||
5 | or
distributor who, on the first business day of that calendar | ||||||
6 | week, was
delinquent beyond the above mentioned permissible | ||||||
7 | merchandising credit
period of 30 days; or, if such is the | ||||||
8 | fact, a verified written statement
that no retail licensee | ||||||
9 | purchasing spirits or wine was then delinquent
beyond such | ||||||
10 | permissible merchandising credit period of 30 days.
| ||||||
11 | Every manufacturer, importing distributor and distributor | ||||||
12 | shall
submit or cause to be submitted, to the State | ||||||
13 | Commission, in triplicate,
a verified written list of the | ||||||
14 | names and respective addresses of each
previously reported | ||||||
15 | delinquent retail licensee who has cured such
delinquency by | ||||||
16 | payment, which list shall be submitted not later than the
| ||||||
17 | close of the second full business day following the day such | ||||||
18 | delinquency
was so cured.
| ||||||
19 | The written list of delinquent retail licensees shall be | ||||||
20 | developed, administered, and maintained only by the State | ||||||
21 | Commission. The State Commission shall notify each retail | ||||||
22 | licensee that it has been placed on the delinquency list. | ||||||
23 | Determinations of delinquency or nondelinquency shall be made | ||||||
24 | only by the State Commission. | ||||||
25 | Such written verified reports required to be submitted by | ||||||
26 | this
Section shall be posted by the State Commission in each of |
| |||||||
| |||||||
1 | its offices
in places available for public inspection not | ||||||
2 | later than the day
following receipt thereof by the State | ||||||
3 | Commission. The reports so posted shall
constitute notice to | ||||||
4 | every manufacturer, importing distributor and
distributor of | ||||||
5 | the information contained therein. Actual notice to
| ||||||
6 | manufacturers, importing distributors and distributors of the
| ||||||
7 | information contained in any such posted reports, however | ||||||
8 | received,
shall also constitute notice of such information.
| ||||||
9 | The 30 day merchandising credit period allowed by this | ||||||
10 | Section shall
commence with the day immediately following the | ||||||
11 | date of invoice and
shall include all successive days | ||||||
12 | including Sundays and holidays to and
including the 30th | ||||||
13 | successive day.
| ||||||
14 | In addition to other methods allowed by law, payment by | ||||||
15 | check during
the period for which merchandising credit may be | ||||||
16 | extended under the
provisions of this Section shall be | ||||||
17 | considered payment. All checks
received in payment for | ||||||
18 | alcoholic liquor shall be promptly deposited for
collection. A | ||||||
19 | post dated check or a check dishonored on presentation for
| ||||||
20 | payment shall not be deemed payment.
| ||||||
21 | A retail licensee shall not be deemed to be delinquent in | ||||||
22 | payment for
any alleged sale to him of alcoholic liquor when | ||||||
23 | there exists a bona fide
dispute between such retailer and a | ||||||
24 | manufacturer, importing distributor
or distributor with | ||||||
25 | respect to the amount of indebtedness existing
because of such | ||||||
26 | alleged sale. A retail licensee shall not be deemed to be |
| |||||||
| |||||||
1 | delinquent under this provision and 11 Ill. Adm. Code 100.90 | ||||||
2 | until 30 days after the date on which the region in which the | ||||||
3 | retail licensee is located enters Phase 4 of the Governor's | ||||||
4 | Restore Illinois Plan as issued on May 5, 2020. | ||||||
5 | A delinquent retail licensee who engages in the retail | ||||||
6 | liquor
business at 2 or more locations shall be deemed to be | ||||||
7 | delinquent with
respect to each such location.
| ||||||
8 | The license of any person who violates any provision of | ||||||
9 | this Section
shall be subject to suspension or revocation in | ||||||
10 | the manner provided by
this Act.
| ||||||
11 | If any part or provision of this Article or the | ||||||
12 | application thereof
to any person or circumstances shall be | ||||||
13 | adjudged invalid by a court of
competent jurisdiction, such | ||||||
14 | judgment shall be confined by its operation
to the controversy | ||||||
15 | in which it was mentioned and shall not affect or
invalidate | ||||||
16 | the remainder of this Article or the application thereof to
| ||||||
17 | any other person or circumstance and to this and the | ||||||
18 | provisions of this
Article are declared severable.
| ||||||
19 | (Source: P.A. 101-631, eff. 6-2-20.)
| ||||||
20 | (235 ILCS 5/6-6.1 new) | ||||||
21 | Sec. 6-6.1. Stocking, rotation, resetting, and pricing | ||||||
22 | services. | ||||||
23 | (a) In this Section: | ||||||
24 | "Reset" means the large-scale rearrangement of the | ||||||
25 | alcoholic liquor products at a retailer's premises. |
| |||||||
| |||||||
1 | "Rotation" means moving newer, fresher products from a | ||||||
2 | storage area to a point-of-sale area and the replenishing of | ||||||
3 | the point-of-sale area with fresh products. | ||||||
4 | "Stocking" means the placing of alcoholic liquors where | ||||||
5 | they are to be stored or where they are offered for sale. | ||||||
6 | (b) Manufacturers, distributors, or importing distributors | ||||||
7 | may stock at retail licensed establishments alcoholic liquors | ||||||
8 | they sell, provided that the alcoholic liquor products of | ||||||
9 | other manufacturers, distributors, or importing distributors | ||||||
10 | are not moved, altered, or disturbed. This stocking may be | ||||||
11 | done one time either during the normal course of, 24 hours | ||||||
12 | before, or within 24 hours after a regular sales call or one | ||||||
13 | time either during the normal course of, 24 hours before, or | ||||||
14 | within 24 hours after delivery to the retailer. The stocking | ||||||
15 | is considered service incidental to a sales call or delivery. | ||||||
16 | (c) Manufacturers, distributors, or importing distributors | ||||||
17 | may rotate their own alcoholic liquor products at a retailer's | ||||||
18 | premises one time either during the normal course of, 24 hours | ||||||
19 | before, or within 24 hours after a regular sales call or one | ||||||
20 | time either during the normal course of, 24 hours before, or | ||||||
21 | within 24 hours after delivery to the retailer. Rotation may | ||||||
22 | be performed at any location within a retailer's premises. | ||||||
23 | (d) Manufacturers, distributors, or importing distributors | ||||||
24 | may participate in or be present at merchandising resets | ||||||
25 | conducted at a retailer's premises no more than 4 times per | ||||||
26 | year. During resets, manufacturers, distributors, or importing |
| |||||||
| |||||||
1 | distributors may stock or restock entire sections of | ||||||
2 | point-of-sale locations at the retailer's premises. No reset | ||||||
3 | shall occur without at least 14 days' prior notice made by the | ||||||
4 | retailer to all manufacturers, distributors, or importing | ||||||
5 | distributors whose alcoholic liquor products are carried by | ||||||
6 | the retailer. Manufacturers, distributors, or importing | ||||||
7 | distributors may only move, alter, disturb, or displace their | ||||||
8 | alcoholic liquor products and the products of properly | ||||||
9 | notified, but nonattending, manufacturers, distributors, or | ||||||
10 | importing distributors. | ||||||
11 | (e) Manufacturers, distributors, or importing distributors | ||||||
12 | may provide to retailers recommended diagrams, shelf plans, or | ||||||
13 | shelf schematics that suggest beneficial display locations for | ||||||
14 | their alcoholic liquor products at the retailer's premises. | ||||||
15 | Manufacturers, distributors, or importing distributors may not | ||||||
16 | condition pricing discounts, credits, rebates, access to | ||||||
17 | brands, or the provision of any other item or activity | ||||||
18 | permissible under this Act upon a retailer's choice to | ||||||
19 | implement or not implement diagrams, shelf plans, or shelf | ||||||
20 | schematics. | ||||||
21 | (f) Manufacturers, distributors, or importing distributors | ||||||
22 | may not affix prices to products on behalf of retailers. This | ||||||
23 | prohibition includes the indirect affixing of prices to | ||||||
24 | product, including entering prices into a retailer's computer | ||||||
25 | system. This prohibition does not prohibit manufacturers, | ||||||
26 | distributors, or importing distributors, after stocking a |
| |||||||
| |||||||
1 | shelf, from affixing shelf tags that identify the product and | ||||||
2 | price of the alcoholic liquor; however, at no time may | ||||||
3 | manufacturers, distributors, or importing distributors | ||||||
4 | delegate or contract this service to a third party. Shelf tags | ||||||
5 | are considered point-of-sale advertising materials and are | ||||||
6 | subject to Section 6-6. If permitted stocking by | ||||||
7 | manufacturers, distributors, or importing distributors | ||||||
8 | involves movement and a change in the placement of its product | ||||||
9 | on the retailer's shelf, shelf tags may be moved to the new | ||||||
10 | position of the product.
| ||||||
11 | (235 ILCS 5/6-9.1)
| ||||||
12 | Sec. 6-9.1. Deliveries to retail establishments.
| ||||||
13 | (a) A distributor of wine or spirits shall deliver to any | ||||||
14 | retailer within
any
geographic area in which that distributor | ||||||
15 | has been granted by a wholesaler the
right to sell its | ||||||
16 | trademark, brand, or name at least once every 2 weeks if (i)
in
| ||||||
17 | the case of a retailer located in a county with a population of | ||||||
18 | at least
3,000,000 inhabitants or in a county adjacent to a | ||||||
19 | county with at least
3,000,000 inhabitants, the retailer | ||||||
20 | agrees to purchase at least $200 of wine or
spirits from the | ||||||
21 | distributor every 2 weeks; or (ii) in the case of a retailer
| ||||||
22 | located in a county with a population of less than 3,000,000 | ||||||
23 | that is not
adjacent to a county with a population of at least | ||||||
24 | 3,000,000 inhabitants, the
retailer agrees to purchase at | ||||||
25 | least $50 of wine or spirits from the
distributor
every 2 |
| |||||||
| |||||||
1 | weeks.
| ||||||
2 | (b) On January 1, 2002 and every 2 years thereafter, the | ||||||
3 | dollar amounts in
items
(i) and (ii) of subsection (a) shall be | ||||||
4 | increased or decreased by a percentage
equal to the percentage | ||||||
5 | increase or decrease in the Consumer Price Index
during the | ||||||
6 | previous 2 years according to the most recent available data. | ||||||
7 | (c) Any brewer or non-resident dealer which holds | ||||||
8 | self-distribution privileges pursuant to a class 1 brewer | ||||||
9 | license or a class 3 brewer license under this Act shall | ||||||
10 | deliver beer to any retailer in the brewer's wholly owned or | ||||||
11 | leased vehicles or through a freight forwarding service, | ||||||
12 | excluding common carriers such as Federal Express, United | ||||||
13 | Parcel Service, or similar common carriers, and shall provide | ||||||
14 | services to the retailer upon the request of the retailer if | ||||||
15 | such services are permitted under this Act and the rules of the | ||||||
16 | Commission.
| ||||||
17 | (Source: P.A. 91-482, eff. 1-1-00.)
| ||||||
18 | (235 ILCS 5/6-9.5 new) | ||||||
19 | Sec. 6-9.5. Definitions. As used in this Section through | ||||||
20 | Section 6-9.15: | ||||||
21 | "Common ownership" means any ownership interest of more | ||||||
22 | than 5% of the total ownership interest of 2 or more retail | ||||||
23 | licensees. | ||||||
24 | "Cooperative agent" means a person or persons with the | ||||||
25 | authority to contract for the purchase and delivery of wine |
| |||||||
| |||||||
1 | and spirits on behalf of a cooperative purchase group. | ||||||
2 | "Cooperative purchase group" means a group of 2 or more | ||||||
3 | individually owned or commonly owned retail licensees who join | ||||||
4 | together to enter into a cooperative purchase agreement. | ||||||
5 | "Cooperative purchasing agreement" means an agreement | ||||||
6 | entered into between 2 or more individually owned, commonly | ||||||
7 | owned, or not commonly owned retail licensees for the purpose | ||||||
8 | of purchasing wine or spirits, excluding any product fermented | ||||||
9 | with malt or any substitute for malt, from a distributor or | ||||||
10 | importing distributor. | ||||||
11 | "Quantity discounting" means a sales program between a | ||||||
12 | wine or spirits distributor or importing distributor and a | ||||||
13 | retail licensee, retail licensees, or a cooperative purchase | ||||||
14 | group in which the primary purpose of the program is to | ||||||
15 | increase product sales to retail licensees and is not a | ||||||
16 | subterfuge to provide prohibited things of value as | ||||||
17 | inducements to retail licensees or to the members of a | ||||||
18 | cooperative purchasing group. "Quantity discounting" includes | ||||||
19 | circumstances in which a wine or spirits distributor or | ||||||
20 | importing distributor offers a retail licensee, retail | ||||||
21 | licensees, or a cooperative purchase group a discount based | ||||||
22 | upon an agreement by which the retail licensee, retail | ||||||
23 | licensees, or a cooperative purchase group may purchase a | ||||||
24 | predetermined number of products in return for receiving a | ||||||
25 | discount on the goods purchased that may be applied either as a | ||||||
26 | price reduction at the time of sale or as a rebate or credit |
| |||||||
| |||||||
1 | following the sale.
| ||||||
2 | (235 ILCS 5/6-9.10 new) | ||||||
3 | Sec. 6-9.10. Cooperative purchasing agreements. | ||||||
4 | (a) A cooperative purchasing agreement shall only be valid | ||||||
5 | if the following conditions are met: | ||||||
6 | (1) the agreement is in writing and signed by all | ||||||
7 | parties to the agreement; | ||||||
8 | (2) the agreement contains the complete license | ||||||
9 | information for all parties to the agreement, including | ||||||
10 | State and local license numbers and expiration dates as | ||||||
11 | well as the date on which the retail member joined the | ||||||
12 | cooperative purchase group; | ||||||
13 | (3) a retail licensee that is a party to the agreement | ||||||
14 | must not be a party to any other related cooperative | ||||||
15 | purchasing agreement; | ||||||
16 | (4) the agreement identifies and designates the name | ||||||
17 | and address of the agent or agents with the authority to | ||||||
18 | contract for the purchase and delivery of wine or spirits | ||||||
19 | on behalf of the cooperative purchase group; | ||||||
20 | (5) a copy of the executed agreement, including any | ||||||
21 | amendments, deletions, or additions, is kept on the | ||||||
22 | premises of each party to the agreement for a period of 3 | ||||||
23 | years; | ||||||
24 | (6) a copy of the executed agreement, including any | ||||||
25 | amendments, deletions, or additions, is delivered to the |
| |||||||
| |||||||
1 | relevant licensee with distribution privileges and to the | ||||||
2 | State Commission before making any purchases under the | ||||||
3 | agreement; any amendments, deletions, or additions must be | ||||||
4 | submitted to the State Commission within 7 business days | ||||||
5 | after the amendment, deletion, or addition is executed; | ||||||
6 | and | ||||||
7 | (7) the agreement must designate whether the | ||||||
8 | cooperative purchasing group is comprised of retail | ||||||
9 | licenses engaged in the sale of wine or spirits on or off | ||||||
10 | the premises. | ||||||
11 | (b) A retail licensee may, pursuant to a cooperative | ||||||
12 | purchasing agreement, make purchases as a member of a | ||||||
13 | cooperative purchase group or independently of any such group. | ||||||
14 | Nothing in this Section or any other Section of this Act shall | ||||||
15 | be construed to prohibit commonly or not commonly owned retail | ||||||
16 | licensees from making purchases separate and apart from any | ||||||
17 | membership in a cooperative purchase group. | ||||||
18 | (c) A retailer may only be a member of one cooperative | ||||||
19 | purchase group at a time. A retail licensee may change to a | ||||||
20 | different cooperative purchase group no more than twice in a | ||||||
21 | 12-month period. However, if an existing cooperative purchase | ||||||
22 | group member purchases a retail location from a member of | ||||||
23 | another cooperative purchase group, the new owner of the | ||||||
24 | retail location may move the membership of the retail licensee | ||||||
25 | to a different cooperative purchasing group. | ||||||
26 | (d) When a retail licensee joins an existing cooperative |
| |||||||
| |||||||
1 | purchasing group, the new member must be a member for a period | ||||||
2 | of 7 days before being able to participate in any quantity | ||||||
3 | discount programs. | ||||||
4 | (e) Cooperative purchasing group members must be either | ||||||
5 | all on-premises retail licensees or all off-premises retail | ||||||
6 | licensees. | ||||||
7 | (f) Any individual retail licensee that is a member of a | ||||||
8 | cooperative purchase group that fails to comply with the terms | ||||||
9 | and conditions of this Section may be deemed to be in violation | ||||||
10 | of Section 6-5. Any distributor or importing distributor that | ||||||
11 | fails to comply with this Section may be deemed to be in | ||||||
12 | violation of Section 6-5. | ||||||
13 | (g) The State Commission shall keep a list of the members | ||||||
14 | of each cooperative purchase group and shall make that list | ||||||
15 | available on its website. | ||||||
16 | (h) A retail licensee that is a member of a cooperative | ||||||
17 | purchase group shall not have an ownership interest, directly | ||||||
18 | or indirectly, in any entity licensed by this Act other than a | ||||||
19 | retailer. | ||||||
20 | (i) It is unlawful for a distributor or importing | ||||||
21 | distributor to furnish, give, or lend money or anything of | ||||||
22 | value to a cooperative agent. | ||||||
23 | (j) It is the duty of each retail licensee of the | ||||||
24 | cooperative purchase group to make books and records available | ||||||
25 | upon reasonable notice for the purpose of investigation and | ||||||
26 | control by the State Commission or any local liquor control |
| |||||||
| |||||||
1 | commission having jurisdiction over the retail licensee of the | ||||||
2 | cooperative purchase group. | ||||||
3 | (k) A cooperative agent shall not have an ownership | ||||||
4 | interest, directly or indirectly, in an entity licensed under | ||||||
5 | any other license category under this Act. | ||||||
6 | (l) A retailer, manufacturer, importing distributor, | ||||||
7 | distributor, or cooperative agent shall remain in compliance | ||||||
8 | with federal law pursuant to the prohibitions and exceptions | ||||||
9 | provided in 27 CFR Part 6 and any promulgated rules thereof. A | ||||||
10 | cooperative agent that is compliant with Sections 6-5 and 6-6 | ||||||
11 | shall not receive cash or anything of value from both the | ||||||
12 | retail licensee and an importing distributor or distributor, | ||||||
13 | non-resident dealer or manufacturers as part of a cooperative | ||||||
14 | purchasing group agreement.
| ||||||
15 | (235 ILCS 5/6-9.15 new) | ||||||
16 | Sec. 6-9.15. Quantity discounting terms for wine or | ||||||
17 | spirits cooperative purchase agreements. | ||||||
18 | (a) All wine or spirits quantity discount programs offered | ||||||
19 | to consumption off the premises retailers must be offered to | ||||||
20 | all consumption off the premises cooperative groups and | ||||||
21 | cooperative agents; and all quantity discount programs offered | ||||||
22 | to consumption on the premises retailers shall be offered to | ||||||
23 | all consumption on the premises cooperative groups and | ||||||
24 | cooperative agents. Quantity discount programs shall: | ||||||
25 | (1) be open and available for acceptance for 7 |
| |||||||
| |||||||
1 | business days; | ||||||
2 | (2) be designed and implemented to produce product | ||||||
3 | volume growth with retail licensees; | ||||||
4 | (3) be based on the volume of product purchased; | ||||||
5 | however, discounts may include price reductions, cash, and | ||||||
6 | credits and no-charge wine or spirits products may be | ||||||
7 | given instead of a discount; | ||||||
8 | (4) be documented on related sales invoices or credit | ||||||
9 | memoranda; | ||||||
10 | (5) not require a retail licensee to take and dispose | ||||||
11 | of any quota of wine or spirits; however, bona fide | ||||||
12 | quantity discounts shall not be deemed to be quota sales; | ||||||
13 | and | ||||||
14 | (6) not require a retail licensee to purchase one | ||||||
15 | product in order to purchase another; this includes | ||||||
16 | combination sales if one or more products may be purchased | ||||||
17 | only in combination with other products and not | ||||||
18 | individually. | ||||||
19 | (b) A distributor or importing distributor that makes | ||||||
20 | quantity discount sales to participating members of a | ||||||
21 | cooperative purchase group shall issue customary invoices to | ||||||
22 | each participating retail licensee itemizing the wine or | ||||||
23 | spirit sold and delivered as part of a quantity discount | ||||||
24 | program to each participating retail licensee. | ||||||
25 | (c) If a distributor or importing distributor offers a | ||||||
26 | quantity discount for wine or spirits, excluding any product |
| |||||||
| |||||||
1 | fermented with malt or any substitute for malt, cooperative | ||||||
2 | purchase groups shall purchase a minimum of 250 cases in each | ||||||
3 | quantity discount program. Each individual participating | ||||||
4 | member of a cooperative purchase group purchasing product | ||||||
5 | through a quantity discount program may be required to | ||||||
6 | purchase the following minimum amounts: | ||||||
7 | (1) 2% of cases of any quantity discount program of | ||||||
8 | 500 or fewer cases. | ||||||
9 | (2) 1.5% of cases of any quantity discount program of | ||||||
10 | at least 501 and not more than 2,000 cases. | ||||||
11 | (3) 1% of cases of any quantity discount program of | ||||||
12 | 2,001 or more cases. | ||||||
13 | (d) The cooperative agent shall place each cooperative | ||||||
14 | purchase order under the name of the cooperative purchase | ||||||
15 | group and shall identify each participating retail member | ||||||
16 | involved with the purchase, the quantity of product purchase, | ||||||
17 | the price attributable to each retailer member's purchase and | ||||||
18 | a requested delivery date. A retail licensee may make | ||||||
19 | purchases through a cooperative purchasing group or | ||||||
20 | independently of such group. Nothing in this Section shall be | ||||||
21 | construed to prohibit retail licensees from making purchases | ||||||
22 | separate and apart from any cooperative purchasing group. | ||||||
23 | (e) Each distributor or importing distributor shall | ||||||
24 | separately invoice each participating cooperative purchase | ||||||
25 | group member for the purchase made on behalf of such | ||||||
26 | participating member. |
| |||||||
| |||||||
1 | (f) A cooperative purchasing group shall maintain the | ||||||
2 | records of each cooperative purchase order placed for 90 days. | ||||||
3 | The records shall include: | ||||||
4 | (1) the date the cooperative purchasing group order | ||||||
5 | was placed and the date of any amendments to the order; | ||||||
6 | (2) the distributor or importing distributor with | ||||||
7 | which the cooperative purchasing group placed the order; | ||||||
8 | (3) the names and license numbers of each cooperative | ||||||
9 | purchasing group member participating in the order; | ||||||
10 | (4) the price discounts and net price of all wine or | ||||||
11 | spirits ordered by each cooperative purchase group member; | ||||||
12 | and | ||||||
13 | (5) the requested delivery date for the order. | ||||||
14 | (g) A cooperative purchase group is subject to the books | ||||||
15 | and records requirements of Section 6-10 and subsection (e) of | ||||||
16 | 11 Ill. Admin. Code 100.130. | ||||||
17 | (h) A cooperative purchasing group shall retain a surety | ||||||
18 | bond at all times for no less than $250,000. If a cooperative | ||||||
19 | purchasing group member is delinquent in payment pursuant to | ||||||
20 | Section 6-5, the surety shall immediately pay the importing | ||||||
21 | distributor or distributor the delinquent amount. The surety | ||||||
22 | bond required by this Section may be acquired from a company, | ||||||
23 | agent, or broker of the cooperative purchase group's choice. | ||||||
24 | If the surety bond does not cure the indebtedness, the 30-day | ||||||
25 | merchandising credit requirements of Section 6-5 shall apply | ||||||
26 | jointly to each cooperative purchasing group until the |
| |||||||
| |||||||
1 | indebtedness is cured. The cooperative purchasing group is | ||||||
2 | responsible for all costs and fees related to the surety bond. | ||||||
3 | (i) Any licensee that fails to comply with the terms and | ||||||
4 | conditions of this Section may be deemed to be in violation of | ||||||
5 | this Act. | ||||||
6 | (j) Nothing in this Section shall apply to quantity | ||||||
7 | discount programs offered for any product fermented with malt | ||||||
8 | or any substitute for malt. Nothing in the Section shall be | ||||||
9 | construed to prohibit, limit, or interfere with quantity | ||||||
10 | discount, credit, or rebate programs offered for any product | ||||||
11 | fermented with malt or any substitute for malt.
| ||||||
12 | (235 ILCS 5/6-17.5 new) | ||||||
13 | Sec. 6-17.5. Purchase of wine or spirits by a retail | ||||||
14 | licensee from another retail licensee. | ||||||
15 | (a) No retail licensee may purchase wine or spirits from, | ||||||
16 | or possess wine or spirits purchased from, any person other | ||||||
17 | than a distributor or importing distributor; however, a retail | ||||||
18 | licensee that purchases wine or spirits from a licensed | ||||||
19 | Illinois retailer shall only receive a warning for the first 2 | ||||||
20 | violations of this Section within a 12-month period. If a | ||||||
21 | retail licensee violates this Section a third time within the | ||||||
22 | same 12-month period of the preceding 2 warnings, then the | ||||||
23 | retailer licensee may be subject to the penalties under | ||||||
24 | Section 10-1. | ||||||
25 | (b) A retailer that is delinquent in payment pursuant to |
| |||||||
| |||||||
1 | Section 6-5 shall be prohibited from purchasing wine or | ||||||
2 | spirits from another retailer pursuant to this Section until | ||||||
3 | the indebtedness is cured.
| ||||||
4 | (235 ILCS 5/6-37 new) | ||||||
5 | Sec. 6-37. Transfer of wine or spirits by a retail | ||||||
6 | licensee with multiple licenses. | ||||||
7 | (a) No original package of wine or spirits may be | ||||||
8 | transferred from one retail licensee to any other retail | ||||||
9 | licensee without prior permission from the State Commission; | ||||||
10 | however, if the same retailer owns more than one licensed | ||||||
11 | retail location, an off-premise retailer may transfer up to 3% | ||||||
12 | of its average monthly purchases by volume and an on-premise | ||||||
13 | retailer may transfer up to 5% of its average monthly | ||||||
14 | purchases by volume of original package of wine or spirits | ||||||
15 | from one or more of such retailer's licensed locations to | ||||||
16 | another of that retailer's licensed locations each month | ||||||
17 | without prior permission from the State Commission, subject to | ||||||
18 | the following conditions: | ||||||
19 | (1) notice is provided to the distributor responsible | ||||||
20 | for the geographic area of the brand, size, and quantity | ||||||
21 | of the wine or spirits to be transferred within the | ||||||
22 | geographic area; and | ||||||
23 | (2) the transfer is made by common carrier, a licensed | ||||||
24 | distributor's or importing distributor's vehicle, or a | ||||||
25 | vehicle owned and operated by the licensee. |
| |||||||
| |||||||
1 | (b) All transfers must be properly documented on a form | ||||||
2 | provided by the State Commission that includes the following | ||||||
3 | information: | ||||||
4 | (1) the license number of the retail licensee's | ||||||
5 | location from which the transfer is to be made and the | ||||||
6 | license number of the retail licensee's location to which | ||||||
7 | the transfer is to be made; | ||||||
8 | (2) the brand, size, and quantity of the wine or | ||||||
9 | spirits to be transferred; and | ||||||
10 | (3) the date the transfer is made. | ||||||
11 | (c) A retail licensee location that transfers or receives | ||||||
12 | an original package of wine or spirits as authorized by this | ||||||
13 | Section shall not be deemed to be engaged in business as a | ||||||
14 | wholesaler or distributor based upon the transfer authorized | ||||||
15 | by this Section. | ||||||
16 | (d) A transfer authorized by this Section shall not be | ||||||
17 | deemed a sale. | ||||||
18 | (e) A retailer that is delinquent in payment pursuant to | ||||||
19 | Section 6-5 shall be prohibited from transferring wine or | ||||||
20 | spirits to a commonly owned retailer pursuant to this Section | ||||||
21 | until the indebtedness is cured. | ||||||
22 | (f) As used in this Section: | ||||||
23 | "Average monthly purchases" is calculated using a 12-month | ||||||
24 | rolling average of the total volume purchased over the 12 most | ||||||
25 | recent months previous to the month in which the transfer is | ||||||
26 | made and dividing that total by 12. |
| |||||||
| |||||||
1 | "Month" means a calendar month.
| ||||||
2 | (235 ILCS 5/6-38 new) | ||||||
3 | Sec. 6-38. One-time inventory transfer of wine or spirits | ||||||
4 | by a retail licensee with multiple licenses. | ||||||
5 | (a) No original package of wine or spirits may be | ||||||
6 | transferred from one retail licensee to any other retail | ||||||
7 | licensee without permission from the State Commission pursuant | ||||||
8 | to 11 Ill. Admin. Code 100.250; however, if the same retailer | ||||||
9 | owns more than one licensed retail location, the retailer may | ||||||
10 | transfer inventory of original packages of wine or spirits | ||||||
11 | from one or more of such retailer's licensed locations to | ||||||
12 | another of that retailer's licensed locations without prior | ||||||
13 | permission from the State Commission, under the following | ||||||
14 | circumstances: | ||||||
15 | (1) acts of god (such as, but not limited to, | ||||||
16 | pandemics, fires, explosions, tornadoes, earthquakes, | ||||||
17 | drought, and floods); | ||||||
18 | (2) federal, State, or local law or ordinance change; | ||||||
19 | (3) bankruptcy; | ||||||
20 | (4) permanent or temporary closure of one or more of | ||||||
21 | the retail licensee's locations; | ||||||
22 | (5) the retail licensee obtains an additional liquor | ||||||
23 | license for a new location; | ||||||
24 | (6) a retail licensee purchases another retail | ||||||
25 | licensee's location; |
| |||||||
| |||||||
1 | (7) a new licensee opens a business at the same | ||||||
2 | location where the prior licensee conducted business, when | ||||||
3 | the new licensee takes possession of the inventory of the | ||||||
4 | immediately prior license; or | ||||||
5 | (8) other unforeseeable circumstances beyond the | ||||||
6 | control of the licensee, such as circumstances: | ||||||
7 | (A) the licensee cannot reasonably take | ||||||
8 | precautions to prevent; and | ||||||
9 | (B) in which the only reasonable method of | ||||||
10 | disposing of the alcoholic liquor products would be a | ||||||
11 | transfer to another licensee or location. | ||||||
12 | (b) The transfer shall be made by: | ||||||
13 | (1) common carrier; | ||||||
14 | (2) a licensed distributor's or importing | ||||||
15 | distributor's vehicle; or | ||||||
16 | (3) a vehicle owned and operated by the licensee. | ||||||
17 | (c) All transfers must be properly documented on a form | ||||||
18 | provided by the State Commission that includes the following | ||||||
19 | information: | ||||||
20 | (1) the license number of the retail licensee's | ||||||
21 | location from which the transfer is to be made and the | ||||||
22 | license number of the retail licensee's location to which | ||||||
23 | the transfer is to be made; | ||||||
24 | (2) the brand, size, and quantity of the wine or | ||||||
25 | spirits to be transferred; and | ||||||
26 | (3) the date the transfer is made. |
| |||||||
| |||||||
1 | (d) A retail licensee location that transfers or receives | ||||||
2 | an original package of wine or spirits as authorized by this | ||||||
3 | Section shall not be deemed to be engaged in business as a | ||||||
4 | wholesaler or distributor based upon the transfer authorized | ||||||
5 | by this Section. | ||||||
6 | (e) A transfer authorized by this Section shall not be | ||||||
7 | deemed a sale.
| ||||||
8 | (235 ILCS 5/8-10.5 new) | ||||||
9 | Sec. 8-10.5. Beer production quantity reporting. | ||||||
10 | (a) As used in this Section: | ||||||
11 | "Directly" means that a licensed distributor was not used | ||||||
12 | in the transaction. | ||||||
13 | "Final packaging container" means the last vessel in which | ||||||
14 | beer is held before (i) consumption by an individual on the | ||||||
15 | brewer's licensed premises; (ii) being placed in a keg, | ||||||
16 | bottle, or can for consumption by an individual; or (iii) | ||||||
17 | being removed for additional fermentation and aging in a cask | ||||||
18 | or barrel. | ||||||
19 | (b) A brewer who is a class 1 brewer, class 2 brewer, class | ||||||
20 | 3 brewer, or brew pub licensee shall accurately measure the | ||||||
21 | quantity of beer transferred into its final packaging | ||||||
22 | container to determine the brewer's tax liability by | ||||||
23 | converting beer production into the amount of beer sold and to | ||||||
24 | ensure compliance with any production or self-distribution | ||||||
25 | quantity limitations under this Act applicable to the class 1 |
| |||||||
| |||||||
1 | brewer, class 2 brewer, class 3 brewer, or brew pub. The | ||||||
2 | measurement shall comply with 27 CFR 25.41 and 27 CFR 25.42. | ||||||
3 | Any brewer subject to this Section shall file, on the same date | ||||||
4 | as the brewer files similar reports with the U.S. Department | ||||||
5 | of the Treasury's Tobacco and Alcohol Tax and Trade Bureau, | ||||||
6 | with the Department and State Commission a report of their use | ||||||
7 | of water along with their "Brewer's Report of Operations" | ||||||
8 | filed with the U.S. Department of Treasury's Alcohol and | ||||||
9 | Tobacco Tax and Trade Bureau and shall maintain and produce | ||||||
10 | for examination and inspection by the Department and the State | ||||||
11 | Commission utility bills for water for 3 years along with | ||||||
12 | their "Brewer's Report of Operations" filed with the U.S. | ||||||
13 | Department of Treasury's Alcohol and Tobacco Tax and Trade | ||||||
14 | Bureau. The Department, in cooperation with the State | ||||||
15 | Commission, may audit on an annual basis the amount a class 1 | ||||||
16 | brewer, class 2 brewer, class 3 brewer, or brew pub licensee | ||||||
17 | produces to determine compliance with this Act. | ||||||
18 | (c) A brewer's failure to comply with this Section shall | ||||||
19 | result in the State Commission issuing a fine or suspending or | ||||||
20 | revoking the brewer's license.
| ||||||
21 | Section 95. No acceleration or delay. Where this Act makes | ||||||
22 | changes in a statute that is represented in this Act by text | ||||||
23 | that is not yet or no longer in effect (for example, a Section | ||||||
24 | represented by multiple versions), the use of that text does | ||||||
25 | not accelerate or delay the taking effect of (i) the changes |
| |||||||
| |||||||
1 | made by this Act or (ii) provisions derived from any other | ||||||
2 | Public Act.
| ||||||
3 | Section 99. Effective date. This Act takes effect upon | ||||||
4 | becoming law, except that the changes to Section 6-5 of the | ||||||
5 | Liquor Control Act of 1934 take effect January 1, 2022.
|