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



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1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 1-3.03, 3-12, 5-1, 5-3, 6-4, 6-5, and 6-9.1
6and by adding Sections 1-3.43, 1-3.44, 6-6.1, 6-9.5, 6-9.10,
76-9.15, 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
10by the fermentation of the natural contents of fruits, or
11vegetables, or honey, containing sugar, including mead and
12such beverages when fortified by the addition of alcohol or
13spirits, 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
17permit" means a license for use by a class 3 brewer, or
18distributor to allow for the transfer of beer only from an
19existing licensed premises of a class 3 brewer or distributor
20to a designated site for a specific event.
21 (235 ILCS 5/1-3.44 new)

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1 Sec. 1-3.44. Class 3 brewer. "Class 3 brewer" means a
2holder of a brewer's license or a non-resident dealer's
3license who manufactures no more than 155,000 gallons at any
4single brewery premises and no more than 465,000 gallons of
5beer per year in the aggregate, and to make sales to importing
6distributors, distributors, and retail licensees in accordance
7with 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,
12functions, 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

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1 regulation issued pursuant thereto and in effect for 30
2 days prior to such violation. Except in the case of an
3 action taken pursuant to a violation of Section 6-3, 6-5,
4 or 6-9, any action by the State Commission to suspend or
5 revoke a licensee's license may be limited to the license
6 for the specific premises where the violation occurred. An
7 action for a violation of this Act shall be commenced by
8 the State Commission within 2 years after the date the
9 State Commission becomes aware of the violation.
10 In lieu of suspending or revoking a license, the
11 commission may impose a fine, upon the State Commission's
12 determination and notice after hearing, that a licensee
13 has violated any provision of this Act or any rule or
14 regulation issued pursuant thereto and in effect for 30
15 days prior to such violation.
16 For the purpose of this paragraph (1), when
17 determining multiple violations for the sale of alcohol to
18 a person under the age of 21, a second or subsequent
19 violation for the sale of alcohol to a person under the age
20 of 21 shall only be considered if it was committed within 5
21 years after the date when a prior violation for the sale of
22 alcohol to a person under the age of 21 was committed.
23 The fine imposed under this paragraph may not exceed
24 $500 for each violation. Each day that the activity, which
25 gave rise to the original fine, continues is a separate
26 violation. The maximum fine that may be levied against any

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1 licensee, for the period of the license, shall not exceed
2 $20,000. The maximum penalty that may be imposed on a
3 licensee for selling a bottle of alcoholic liquor with a
4 foreign object in it or serving from a bottle of alcoholic
5 liquor with a foreign object in it shall be the
6 destruction of that bottle of alcoholic liquor for the
7 first 10 bottles so sold or served from by the licensee.
8 For the eleventh bottle of alcoholic liquor and for each
9 third bottle thereafter sold or served from by the
10 licensee with a foreign object in it, the maximum penalty
11 that may be imposed on the licensee is the destruction of
12 the bottle of alcoholic liquor and a fine of up to $50.
13 Any notice issued by the State Commission to a
14 licensee for a violation of this Act or any notice with
15 respect to settlement or offer in compromise shall include
16 the field report, photographs, and any other supporting
17 documentation necessary to reasonably inform the licensee
18 of the nature and extent of the violation or the conduct
19 alleged to have occurred. The failure to include such
20 required documentation shall result in the dismissal of
21 the action.
22 (2) To adopt such rules and regulations consistent
23 with the provisions of this Act which shall be necessary
24 to carry on its functions and duties to the end that the
25 health, safety and welfare of the People of the State of
26 Illinois shall be protected and temperance in the

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1 consumption of alcoholic liquors shall be fostered and
2 promoted and to distribute copies of such rules and
3 regulations to all licensees affected thereby.
4 (3) To call upon other administrative departments of
5 the State, county and municipal governments, county and
6 city police departments and upon prosecuting officers for
7 such information and assistance as it deems necessary in
8 the performance of its duties.
9 (4) To recommend to local commissioners rules and
10 regulations, not inconsistent with the law, for the
11 distribution and sale of alcoholic liquors throughout the
12 State.
13 (5) To inspect, or cause to be inspected, any premises
14 in this State where alcoholic liquors are manufactured,
15 distributed, warehoused, or sold. Nothing in this Act
16 authorizes an agent of the State Commission to inspect
17 private areas within the premises without reasonable
18 suspicion or a warrant during an inspection. "Private
19 areas" include, but are not limited to, safes, personal
20 property, and closed desks.
21 (5.1) Upon receipt of a complaint or upon having
22 knowledge that any person is engaged in business as a
23 manufacturer, importing distributor, distributor, or
24 retailer without a license or valid license, to conduct an
25 investigation. If, after conducting an investigation, the
26 State Commission is satisfied that the alleged conduct

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1 occurred or is occurring, it may issue a cease and desist
2 notice as provided in this Act, impose civil penalties as
3 provided in this Act, notify the local liquor authority,
4 or file a complaint with the State's Attorney's Office of
5 the county where the incident occurred or the Attorney
6 General.
7 (5.2) Upon receipt of a complaint or upon having
8 knowledge that any person is shipping alcoholic liquor
9 into this State from a point outside of this State if the
10 shipment is in violation of this Act, to conduct an
11 investigation. If, after conducting an investigation, the
12 State Commission is satisfied that the alleged conduct
13 occurred or is occurring, it may issue a cease and desist
14 notice as provided in this Act, impose civil penalties as
15 provided in this Act, notify the foreign jurisdiction, or
16 file a complaint with the State's Attorney's Office of the
17 county where the incident occurred or the Attorney
18 General.
19 (5.3) To receive complaints from licensees, local
20 officials, law enforcement agencies, organizations, and
21 persons stating that any licensee has been or is violating
22 any provision of this Act or the rules and regulations
23 issued pursuant to this Act. Such complaints shall be in
24 writing, signed and sworn to by the person making the
25 complaint, and shall state with specificity the facts in
26 relation to the alleged violation. If the State Commission

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1 has reasonable grounds to believe that the complaint
2 substantially alleges a violation of this Act or rules and
3 regulations adopted pursuant to this Act, it shall conduct
4 an investigation. If, after conducting an investigation,
5 the State Commission is satisfied that the alleged
6 violation did occur, it shall proceed with disciplinary
7 action against the licensee as provided in this Act.
8 (5.4) To make arrests and issue notices of civil
9 violations where necessary for the enforcement of this
10 Act.
11 (5.5) To investigate any and all unlicensed activity.
12 (5.6) To impose civil penalties or fines to any person
13 who, without holding a valid license, engages in conduct
14 that requires a license pursuant to this Act, in an amount
15 not to exceed $20,000 for each offense as determined by
16 the State Commission. A civil penalty shall be assessed by
17 the State Commission after a hearing is held in accordance
18 with the provisions set forth in this Act regarding the
19 provision of a hearing for the revocation or suspension of
20 a license.
21 (6) To hear and determine appeals from orders of a
22 local commission in accordance with the provisions of this
23 Act, as hereinafter set forth. Hearings under this
24 subsection shall be held in Springfield or Chicago, at
25 whichever location is the more convenient for the majority
26 of persons who are parties to the hearing.

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1 (7) The State Commission shall establish uniform
2 systems of accounts to be kept by all retail licensees
3 having more than 4 employees, and for this purpose the
4 State Commission may classify all retail licensees having
5 more than 4 employees and establish a uniform system of
6 accounts for each class and prescribe the manner in which
7 such accounts shall be kept. The State Commission may also
8 prescribe the forms of accounts to be kept by all retail
9 licensees having more than 4 employees, including, but not
10 limited to, accounts of earnings and expenses and any
11 distribution, payment, or other distribution of earnings
12 or assets, and any other forms, records, and memoranda
13 which in the judgment of the commission may be necessary
14 or appropriate to carry out any of the provisions of this
15 Act, including, but not limited to, such forms, records,
16 and memoranda as will readily and accurately disclose at
17 all times the beneficial ownership of such retail licensed
18 business. The accounts, forms, records, and memoranda
19 shall be available at all reasonable times for inspection
20 by authorized representatives of the State Commission or
21 by any local liquor control commissioner or his or her
22 authorized representative. The commission, may, from time
23 to time, alter, amend, or repeal, in whole or in part, any
24 uniform system of accounts, or the form and manner of
25 keeping accounts.
26 (8) In the conduct of any hearing authorized to be

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

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

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1 from inside and outside of this State directly to
2 residents of this State. As part of its report, the State
3 Commission shall provide all of the following information:
4 (A) The amount of State excise and sales tax
5 revenues generated.
6 (B) The amount of licensing fees received.
7 (C) The number of cases of wine shipped from
8 inside and outside of this State directly to residents
9 of this State.
10 (D) The number of alcohol compliance operations
11 conducted.
12 (E) The number of winery shipper's licenses
13 issued.
14 (F) The number of each of the following: reported
15 violations; cease and desist notices issued by the
16 Commission; notices of violations issued by the
17 Commission and to the Department of Revenue; and
18 notices and complaints of violations to law
19 enforcement officials, including, without limitation,
20 the Illinois Attorney General and the U.S. Department
21 of Treasury's Alcohol and Tobacco Tax and Trade
22 Bureau.
23 (15) As a means to reduce the underage consumption of
24 alcoholic liquors, the State Commission shall conduct
25 alcohol compliance operations to investigate whether
26 businesses that are soliciting, selling, and shipping wine

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1 from inside or outside of this State directly to residents
2 of this State are licensed by this State or are selling or
3 attempting to sell wine to persons under 21 years of age in
4 violation of this Act.
5 (16) The State Commission shall, in addition to
6 notifying any appropriate law enforcement agency, submit
7 notices of complaints or violations of Sections 6-29 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

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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

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1 Commission may fine, suspend, or revoke a
2 self-distribution exemption after a hearing if it finds
3 that the exemption holder has made a material
4 misrepresentation in its application, violated a revenue
5 or liquor law of Illinois, exceeded production of 25,000
6 gallons of wine, 930,000 gallons of beer, or 50,000
7 gallons of spirits in any calendar year, or become part of
8 an affiliated group producing more than 25,000 gallons of
9 wine, 930,000 gallons of beer, or 50,000 gallons of
10 spirits 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

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1 that, in order to preserve Illinois' regulatory
2 distribution system, it is necessary to create an
3 exception for smaller makers of wine as their wines are
4 frequently adjusted in varietals, mixes, vintages, and
5 taste to find and create market niches sometimes too small
6 for distributor or importing distributor business
7 strategies. Limited self-distribution rights will afford
8 and allow smaller makers of wine access to the marketplace
9 in order to develop a customer base without impairing the
10 integrity of the 3-tier system.
11 (18)(A) A class 1 brewer licensee, who must also be
12 either a licensed brewer or licensed non-resident dealer
13 and annually manufacture less than 930,000 gallons of
14 beer, may make application to the State Commission for a
15 self-distribution exemption to allow the sale of not more
16 than 232,500 gallons per year of the exemption holder's
17 beer 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

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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

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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

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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

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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

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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

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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

HB2620 Enrolled- 22 -LRB102 11692 SPS 17026 b
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.

HB2620 Enrolled- 23 -LRB102 11692 SPS 17026 b
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
22present a written report to the Governor and the General
23Assembly that shall be based on a study of the impact of Public
24Act 90-739 on the business of soliciting, selling, and
25shipping alcoholic liquor from outside of this State directly
26to residents of this State.

HB2620 Enrolled- 24 -LRB102 11692 SPS 17026 b
1 As part of its report, the Commission shall provide the
2following 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;
13100-816, eff. 8-13-18; 100-1012, eff. 8-21-18; 100-1050, eff.
148-23-18; 101-37, eff. 7-3-19; 101-81, eff. 7-12-19; 101-482,
15eff. 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
19Commission shall be of the following classes:
20 (a) Manufacturer's license - Class 1. Distiller, Class 2.
21Rectifier, Class 3. Brewer, Class 4. First Class Wine
22Manufacturer, Class 5. Second Class Wine Manufacturer, Class
236. First Class Winemaker, Class 7. Second Class Winemaker,
24Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
25Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft

HB2620 Enrolled- 25 -LRB102 11692 SPS 17026 b
1Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
2Class 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
26business entity that is engaged in the manufacturing of wine

HB2620 Enrolled- 26 -LRB102 11692 SPS 17026 b
1may concurrently obtain and hold a wine-maker's license and a
2wine manufacturer's license.
3 (a) A manufacturer's license shall allow the manufacture,
4importation in bulk, storage, distribution and sale of
5alcoholic liquor to persons without the State, as may be
6permitted by law and to licensees in this State as follows:
7 Class 1. A Distiller may make sales and deliveries of
8alcoholic liquor to distillers, rectifiers, importing
9distributors, distributors and non-beverage users and to no
10other licensees.
11 Class 2. A Rectifier, who is not a distiller, as defined
12herein, may make sales and deliveries of alcoholic liquor to
13rectifiers, importing distributors, distributors, retailers
14and non-beverage users and to no other licensees.
15 Class 3. A Brewer may make sales and deliveries of beer to
16importing distributors and distributors and may make sales as
17authorized under subsection (e) of Section 6-4 of this Act,
18including any alcoholic liquor that subsection (e) of Section
196-4 authorizes a brewer to sell in its original package only to
20a non-licensee for pick-up by a non-licensee either within the
21interior of the brewery premises or at outside of the brewery
22premises at a curb-side or parking lot adjacent to the brewery
23premises, subject to any local ordinance.
24 Class 4. A first class wine-manufacturer may make sales
25and deliveries of up to 50,000 gallons of wine to
26manufacturers, importing distributors and distributors, and to

HB2620 Enrolled- 27 -LRB102 11692 SPS 17026 b
1no other licensees. If a first-class wine-manufacturer
2manufactures beer, it shall also obtain and shall only be
3eligible for, in addition to any current license, a class 1
4brewer license, shall not manufacture more than 930,000
5gallons of beer per year, and shall not be a member of or
6affiliated with, directly or indirectly, a manufacturer that
7produces more than 930,000 gallons of beer per year. If the
8first-class wine-manufacturer manufactures spirits, it shall
9also obtain and shall only be eligible for, in addition to any
10current license, a class 1 craft distiller license, shall not
11manufacture more than 50,000 gallons of spirits per year, and
12shall not be a member of or affiliated with, directly or
13indirectly, a manufacturer that produces more than 50,000
14gallons of spirits per year. A first-class wine-manufacturer
15shall be permitted to sell wine manufactured at the
16first-class wine-manufacturer premises to non-licensees.
17 Class 5. A second class Wine manufacturer may make sales
18and deliveries of more than 50,000 gallons of wine to
19manufacturers, importing distributors and distributors and to
20no other licensees.
21 Class 6. A first-class wine-maker's license shall allow
22the manufacture of up to 50,000 gallons of wine per year, and
23the storage and sale of such wine to distributors in the State
24and to persons without the State, as may be permitted by law. A
25person who, prior to June 1, 2008 (the effective date of Public
26Act 95-634), is a holder of a first-class wine-maker's license

HB2620 Enrolled- 28 -LRB102 11692 SPS 17026 b
1and annually produces more than 25,000 gallons of its own wine
2and who distributes its wine to licensed retailers shall cease
3this practice on or before July 1, 2008 in compliance with
4Public Act 95-634. If a first-class wine-maker manufactures
5beer, it shall also obtain and shall only be eligible for, in
6addition to any current license, a class 1 brewer license,
7shall not manufacture more than 930,000 gallons of beer per
8year, and shall not be a member of or affiliated with, directly
9or indirectly, a manufacturer that produces more than 930,000
10gallons of beer per year. If the first-class wine-maker
11manufactures spirits, it shall also obtain and shall only be
12eligible for, in addition to any current license, a class 1
13craft distiller license, shall not manufacture more than
1450,000 gallons of spirits per year, and shall not be a member
15of or affiliated with, directly or indirectly, a manufacturer
16that produces more than 50,000 gallons of spirits per year. A
17first-class wine-maker holding a class 1 brewer license or a
18class 1 craft distiller license shall not be eligible for a
19wine-maker's premises license but shall be permitted to sell
20wine manufactured at the first-class wine-maker premises to
21non-licensees.
22 Class 7. A second-class wine-maker's license shall allow
23the manufacture of up to between 50,000 and 150,000 gallons of
24wine per year, and the storage and sale of such wine to
25distributors in this State and to persons without the State,
26as may be permitted by law. A person who, prior to June 1, 2008

HB2620 Enrolled- 29 -LRB102 11692 SPS 17026 b
1(the effective date of Public Act 95-634), is a holder of a
2second-class wine-maker's license and annually produces more
3than 25,000 gallons of its own wine and who distributes its
4wine to licensed retailers shall cease this practice on or
5before July 1, 2008 in compliance with Public Act 95-634. If a
6second-class wine-maker manufactures beer, it shall also
7obtain and shall only be eligible for, in addition to any
8current license, a class 2 brewer license, shall not
9manufacture more than 3,720,000 gallons of beer per year, and
10shall not be a member of or affiliated with, directly or
11indirectly, a manufacturer that produces more than 3,720,000
12gallons of beer per year. If a second-class wine-maker
13manufactures spirits, it shall also obtain and shall only be
14eligible for, in addition to any current license, a class 2
15craft distiller license, shall not manufacture more than
16100,000 gallons of spirits per year, and shall not be a member
17of or affiliated with, directly or indirectly, a manufacturer
18that produces more than 100,000 gallons of spirits per year.
19 Class 8. A limited wine-manufacturer may make sales and
20deliveries not to exceed 40,000 gallons of wine per year to
21distributors, and to non-licensees in accordance with the
22provisions of this Act.
23 Class 9. A craft distiller license, which may only be held
24by a class 1 craft distiller licensee or class 2 craft
25distiller licensee but not held by both a class 1 craft
26distiller licensee and a class 2 craft distiller licensee,

HB2620 Enrolled- 30 -LRB102 11692 SPS 17026 b
1shall grant all rights conveyed by either: (i) a class 1 craft
2distiller license if the craft distiller holds a class 1 craft
3distiller license; or (ii) a class 2 craft distiller licensee
4if the craft distiller holds a class 2 craft distiller
5license.
6 Class 10. A class 1 craft distiller license, which may
7only be issued to a licensed craft distiller or licensed
8non-resident dealer, shall allow the manufacture of up to
950,000 gallons of spirits per year provided that the class 1
10craft distiller licensee does not manufacture more than a
11combined 50,000 gallons of spirits per year and is not a member
12of or affiliated with, directly or indirectly, a manufacturer
13that produces more than 50,000 gallons of spirits per year or
14any other alcoholic liquor. If a class 1 craft distiller
15manufactures beer, it shall also obtain and shall only be
16eligible for, in addition to any current license, a class 1
17brewer license, shall not manufacture more than 930,000
18gallons of beer per year, and shall not be a member of or
19affiliated with, directly or indirectly, a manufacturer that
20produces more than 930,000 gallons of beer per year. If a class
211 craft distiller manufactures wine, it shall also obtain and
22shall only be eligible for, in addition to any current
23license, a first-class wine-manufacturer license or a
24first-class wine-maker's license, shall not manufacture more
25than 50,000 gallons of wine per year, and shall not be a member
26of or affiliated with, directly or indirectly, a manufacturer

HB2620 Enrolled- 31 -LRB102 11692 SPS 17026 b
1that produces more than 50,000 gallons of wine per year. A
2class 1 craft distiller licensee may make sales and deliveries
3to importing distributors and distributors and to retail
4licensees in accordance with the conditions set forth in
5paragraph (19) of subsection (a) of Section 3-12 of this Act.
6However, the aggregate amount of spirits sold to non-licensees
7and sold or delivered to retail licensees may not exceed 5,000
8gallons per year.
9 A class 1 craft distiller licensee may sell up to 5,000
10gallons of such spirits to non-licensees to the extent
11permitted by any exemption approved by the State Commission
12pursuant to Section 6-4 of this Act. A class 1 craft distiller
13license holder may store such spirits at a non-contiguous
14licensed location, but at no time shall a class 1 craft
15distiller license holder directly or indirectly produce in the
16aggregate more than 50,000 gallons of spirits per year.
17 A class 1 craft distiller licensee may hold more than one
18class 1 craft distiller's license. However, a class 1 craft
19distiller that holds more than one class 1 craft distiller
20license shall not manufacture, in the aggregate, more than
2150,000 gallons of spirits by distillation per year and shall
22not sell, in the aggregate, more than 5,000 gallons of such
23spirits to non-licensees in accordance with an exemption
24approved by the State Commission pursuant to Section 6-4 of
25this Act.
26 Class 11. A class 2 craft distiller license, which may

HB2620 Enrolled- 32 -LRB102 11692 SPS 17026 b
1only be issued to a licensed craft distiller or licensed
2non-resident dealer, shall allow the manufacture of up to
3100,000 gallons of spirits per year provided that the class 2
4craft distiller licensee does not manufacture more than a
5combined 100,000 gallons of spirits per year and is not a
6member of or affiliated with, directly or indirectly, a
7manufacturer that produces more than 100,000 gallons of
8spirits per year or any other alcoholic liquor. If a class 2
9craft distiller manufactures beer, it shall also obtain and
10shall only be eligible for, in addition to any current
11license, a class 2 brewer license, shall not manufacture more
12than 3,720,000 gallons of beer per year, and shall not be a
13member of or affiliated with, directly or indirectly, a
14manufacturer that produces more than 3,720,000 gallons of beer
15per year. If a class 2 craft distiller manufactures wine, it
16shall also obtain and shall only be eligible for, in addition
17to any current license, a second-class wine-maker's license,
18shall not manufacture more than 150,000 gallons of wine per
19year, and shall not be a member of or affiliated with, directly
20or indirectly, a manufacturer that produces more than 150,000
21gallons of wine per year. A class 2 craft distiller licensee
22may make sales and deliveries to importing distributors and
23distributors, but shall not make sales or deliveries to any
24other licensee. If the State Commission provides prior
25approval, a class 2 craft distiller licensee may annually
26transfer up to 100,000 gallons of spirits manufactured by that

HB2620 Enrolled- 33 -LRB102 11692 SPS 17026 b
1class 2 craft distiller licensee to the premises of a licensed
2class 2 craft distiller wholly owned and operated by the same
3licensee. A class 2 craft distiller may transfer spirits to a
4distilling pub wholly owned and operated by the class 2 craft
5distiller subject to the following limitations and
6restrictions: (i) the transfer shall not annually exceed more
7than 5,000 gallons; (ii) the annual amount transferred shall
8reduce the distilling pub's annual permitted production limit;
9(iii) all spirits transferred shall be subject to Article VIII
10of this Act; (iv) a written record shall be maintained by the
11distiller and distilling pub specifying the amount, date of
12delivery, and receipt of the product by the distilling pub;
13and (v) the distilling pub shall be located no farther than 80
14miles from the class 2 craft distiller's licensed location.
15 A class 2 craft distiller shall, prior to transferring
16spirits to a distilling pub wholly owned by the class 2 craft
17distiller, furnish a written notice to the State Commission of
18intent to transfer spirits setting forth the name and address
19of the distilling pub and shall annually submit to the State
20Commission a verified report identifying the total gallons of
21spirits transferred to the distilling pub wholly owned by the
22class 2 craft distiller.
23 A class 2 craft distiller license holder may store such
24spirits at a non-contiguous licensed location, but at no time
25shall a class 2 craft distiller license holder directly or
26indirectly produce in the aggregate more than 100,000 gallons

HB2620 Enrolled- 34 -LRB102 11692 SPS 17026 b
1of spirits per year.
2 Class 12. A class 1 brewer license, which may only be
3issued to a licensed brewer or licensed non-resident dealer,
4shall allow the manufacture of up to 930,000 gallons of beer
5per year provided that the class 1 brewer licensee does not
6manufacture more than a combined 930,000 gallons of beer per
7year and is not a member of or affiliated with, directly or
8indirectly, a manufacturer that produces more than 930,000
9gallons of beer per year or any other alcoholic liquor. If a
10class 1 brewer manufactures spirits, it shall also obtain and
11shall only be eligible for, in addition to any current
12license, a class 1 craft distiller license, shall not
13manufacture more than 50,000 gallons of spirits per year, and
14shall not be a member of or affiliated with, directly or
15indirectly, a manufacturer that produces more than 50,000
16gallons of spirits per year. If a class 1 craft brewer
17manufactures wine, it shall also obtain and shall only be
18eligible for, in addition to any current license, a
19first-class wine-manufacturer license or a first-class
20wine-maker's license, shall not manufacture more than 50,000
21gallons of wine per year, and shall not be a member of or
22affiliated with, directly or indirectly, a manufacturer that
23produces more than 50,000 gallons of wine per year. A class 1
24brewer licensee may make sales and deliveries to importing
25distributors and distributors and to retail licensees in
26accordance with the conditions set forth in paragraph (18) of

HB2620 Enrolled- 35 -LRB102 11692 SPS 17026 b
1subsection (a) of Section 3-12 of this Act. If the State
2Commission provides prior approval, a class 1 brewer may
3annually transfer up to 930,000 gallons of beer manufactured
4by that class 1 brewer to the premises of a licensed class 1
5brewer wholly owned and operated by the same licensee.
6 Class 13. A class 2 brewer license, which may only be
7issued to a licensed brewer or licensed non-resident dealer,
8shall allow the manufacture of up to 3,720,000 gallons of beer
9per year provided that the class 2 brewer licensee does not
10manufacture more than a combined 3,720,000 gallons of beer per
11year and is not a member of or affiliated with, directly or
12indirectly, a manufacturer that produces more than 3,720,000
13gallons of beer per year or any other alcoholic liquor. If a
14class 2 brewer manufactures spirits, it shall also obtain and
15shall only be eligible for, in addition to any current
16license, a class 2 craft distiller license, shall not
17manufacture more than 100,000 gallons of spirits per year, and
18shall not be a member of or affiliated with, directly or
19indirectly, a manufacturer that produces more than 100,000
20gallons of spirits per year. If a class 2 craft distiller
21manufactures wine, it shall also obtain and shall only be
22eligible for, in addition to any current license, a
23second-class wine-maker's license, shall not manufacture more
24than 150,000 gallons of wine per year, and shall not be a
25member of or affiliated with, directly or indirectly, a
26manufacturer that produces more than 150,000 gallons of wine a

HB2620 Enrolled- 36 -LRB102 11692 SPS 17026 b
1year. A class 2 brewer licensee may make sales and deliveries
2to importing distributors and distributors, but shall not make
3sales or deliveries to any other licensee. If the State
4Commission provides prior approval, a class 2 brewer licensee
5may annually transfer up to 3,720,000 gallons of beer
6manufactured by that class 2 brewer licensee to the premises
7of a licensed class 2 brewer wholly owned and operated by the
8same licensee.
9 A class 2 brewer may transfer beer to a brew pub wholly
10owned and operated by the class 2 brewer subject to the
11following limitations and restrictions: (i) the transfer shall
12not annually exceed more than 31,000 gallons; (ii) the annual
13amount transferred shall reduce the brew pub's annual
14permitted production limit; (iii) all beer transferred shall
15be subject to Article VIII of this Act; (iv) a written record
16shall be maintained by the brewer and brew pub specifying the
17amount, date of delivery, and receipt of the product by the
18brew pub; and (v) the brew pub shall be located no farther than
1980 miles from the class 2 brewer's licensed location.
20 A class 2 brewer shall, prior to transferring beer to a
21brew pub wholly owned by the class 2 brewer, furnish a written
22notice to the State Commission of intent to transfer beer
23setting forth the name and address of the brew pub and shall
24annually submit to the State Commission a verified report
25identifying the total gallons of beer transferred to the brew
26pub wholly owned by the class 2 brewer.

HB2620 Enrolled- 37 -LRB102 11692 SPS 17026 b
1 Class 14. A class 3 brewer license, which may be issued to
2a brewer or a non-resident dealer, shall allow the manufacture
3of no more than 465,000 gallons of beer per year and no more
4than 155,000 gallons at a single brewery premises, and shall
5allow the sale of no more than 6,200 gallons of beer from each
6in-state or out-of-state class 3 brewery premises, or 18,600
7gallons in the aggregate, to retail licensees, class 1
8brewers, class 2 brewers, and class 3 brewers as long as the
9class 3 brewer licensee does not manufacture more than a
10combined 465,000 gallons of beer per year and is not a member
11of or affiliated with, directly or indirectly, a manufacturer
12that produces more than 465,000 gallons of beer per year to
13make sales to importing distributors, distributors, retail
14licensees, brewers, class 1 brewers, class 2 brewers, and
15class 3 brewers in accordance with the conditions set forth in
16paragraph (20) of subsection (a) of Section 3-12. If the State
17Commission provides prior approval, a class 3 brewer may
18annually transfer up to 155,000 gallons of beer manufactured
19by that class 3 brewer to the premises of a licensed class 3
20brewer wholly owned and operated by the same licensee. A class
213 brewer shall manufacture beer at the brewer's class 3
22designated licensed premises, and may sell beer as otherwise
23provided in this Act.
24 (a-1) A manufacturer which is licensed in this State to
25make sales or deliveries of alcoholic liquor to licensed
26distributors or importing distributors and which enlists

HB2620 Enrolled- 38 -LRB102 11692 SPS 17026 b
1agents, representatives, or individuals acting on its behalf
2who contact licensed retailers on a regular and continual
3basis in this State must register those agents,
4representatives, or persons acting on its behalf with the
5State Commission.
6 Registration of agents, representatives, or persons acting
7on behalf of a manufacturer is fulfilled by submitting a form
8to the Commission. The form shall be developed by the
9Commission and shall include the name and address of the
10applicant, the name and address of the manufacturer he or she
11represents, the territory or areas assigned to sell to or
12discuss pricing terms of alcoholic liquor, and any other
13questions deemed appropriate and necessary. All statements in
14the forms required to be made by law or by rule shall be deemed
15material, and any person who knowingly misstates any material
16fact under oath in an application is guilty of a Class B
17misdemeanor. Fraud, misrepresentation, false statements,
18misleading statements, evasions, or suppression of material
19facts in the securing of a registration are grounds for
20suspension or revocation of the registration. The State
21Commission shall post a list of registered agents on the
22Commission's website.
23 (b) A distributor's license shall allow (i) the wholesale
24purchase and storage of alcoholic liquors and sale of
25alcoholic liquors to licensees in this State and to persons
26without the State, as may be permitted by law; (ii) the sale of

HB2620 Enrolled- 39 -LRB102 11692 SPS 17026 b
1beer, cider, mead, or any combination thereof or both beer and
2cider to brewers, class 1 brewers, and class 2 brewers that,
3pursuant to subsection (e) of Section 6-4 of this Act, sell
4beer, cider, mead, or any combination thereof or both beer and
5cider to non-licensees at their breweries; and (iii) the sale
6of vermouth to class 1 craft distillers and class 2 craft
7distillers that, pursuant to subsection (e) of Section 6-4 of
8this Act, sell spirits, vermouth, or both spirits and vermouth
9to non-licensees at their distilleries; or (iv) as otherwise
10provided in this Act. No person licensed as a distributor
11shall be granted a non-resident dealer's license.
12 (c) An importing distributor's license may be issued to
13and held by those only who are duly licensed distributors,
14upon the filing of an application by a duly licensed
15distributor, with the Commission and the Commission shall,
16without the payment of any fee, immediately issue such
17importing distributor's license to the applicant, which shall
18allow the importation of alcoholic liquor by the licensee into
19this State from any point in the United States outside this
20State, and the purchase of alcoholic liquor in barrels, casks
21or other bulk containers and the bottling of such alcoholic
22liquors before resale thereof, but all bottles or containers
23so filled shall be sealed, labeled, stamped and otherwise made
24to comply with all provisions, rules and regulations governing
25manufacturers in the preparation and bottling of alcoholic
26liquors. The importing distributor's license shall permit such

HB2620 Enrolled- 40 -LRB102 11692 SPS 17026 b
1licensee to purchase alcoholic liquor from Illinois licensed
2non-resident dealers and foreign importers only. No person
3licensed as an importing distributor shall be granted a
4non-resident dealer's license.
5 (d) A retailer's license shall allow the licensee to sell
6and offer for sale at retail, only in the premises specified in
7the license, alcoholic liquor for use or consumption, but not
8for resale in any form. Nothing in Public Act 95-634 shall
9deny, limit, remove, or restrict the ability of a holder of a
10retailer's license to transfer, deliver, or ship alcoholic
11liquor to the purchaser for use or consumption subject to any
12applicable local law or ordinance. Any retail license issued
13to a manufacturer shall only permit the manufacturer to sell
14beer at retail on the premises actually occupied by the
15manufacturer. For the purpose of further describing the type
16of business conducted at a retail licensed premises, a
17retailer's licensee may be designated by the State Commission
18as (i) an on premise consumption retailer, (ii) an off premise
19sale retailer, or (iii) a combined on premise consumption and
20off premise sale retailer.
21 Notwithstanding any other provision of this subsection
22(d), a retail licensee may sell alcoholic liquors to a special
23event retailer licensee for resale to the extent permitted
24under subsection (e).
25 (e) A special event retailer's license (not-for-profit)
26shall permit the licensee to purchase alcoholic liquors from

HB2620 Enrolled- 41 -LRB102 11692 SPS 17026 b
1an Illinois licensed distributor (unless the licensee
2purchases less than $500 of alcoholic liquors for the special
3event, in which case the licensee may purchase the alcoholic
4liquors from a licensed retailer) and shall allow the licensee
5to sell and offer for sale, at retail, alcoholic liquors for
6use or consumption, but not for resale in any form and only at
7the location and on the specific dates designated for the
8special event in the license. An applicant for a special event
9retailer license must (i) furnish with the application: (A) a
10resale number issued under Section 2c of the Retailers'
11Occupation Tax Act or evidence that the applicant is
12registered under Section 2a of the Retailers' Occupation Tax
13Act, (B) a current, valid exemption identification number
14issued under Section 1g of the Retailers' Occupation Tax Act,
15and a certification to the Commission that the purchase of
16alcoholic liquors will be a tax-exempt purchase, or (C) a
17statement that the applicant is not registered under Section
182a of the Retailers' Occupation Tax Act, does not hold a resale
19number under Section 2c of the Retailers' Occupation Tax Act,
20and does not hold an exemption number under Section 1g of the
21Retailers' Occupation Tax Act, in which event the Commission
22shall set forth on the special event retailer's license a
23statement to that effect; (ii) submit with the application
24proof satisfactory to the State Commission that the applicant
25will provide dram shop liability insurance in the maximum
26limits; and (iii) show proof satisfactory to the State

HB2620 Enrolled- 42 -LRB102 11692 SPS 17026 b
1Commission that the applicant has obtained local authority
2approval.
3 Nothing in this Act prohibits an Illinois licensed
4distributor from offering credit or a refund for unused,
5salable alcoholic liquors to a holder of a special event
6retailer's license or the special event retailer's licensee
7from accepting the credit or refund of alcoholic liquors at
8the conclusion of the event specified in the license.
9 (f) A railroad license shall permit the licensee to import
10alcoholic liquors into this State from any point in the United
11States outside this State and to store such alcoholic liquors
12in this State; to make wholesale purchases of alcoholic
13liquors directly from manufacturers, foreign importers,
14distributors and importing distributors from within or outside
15this State; and to store such alcoholic liquors in this State;
16provided that the above powers may be exercised only in
17connection with the importation, purchase or storage of
18alcoholic liquors to be sold or dispensed on a club, buffet,
19lounge or dining car operated on an electric, gas or steam
20railway in this State; and provided further, that railroad
21licensees exercising the above powers shall be subject to all
22provisions of Article VIII of this Act as applied to importing
23distributors. A railroad license shall also permit the
24licensee to sell or dispense alcoholic liquors on any club,
25buffet, lounge or dining car operated on an electric, gas or
26steam railway regularly operated by a common carrier in this

HB2620 Enrolled- 43 -LRB102 11692 SPS 17026 b
1State, but shall not permit the sale for resale of any
2alcoholic liquors to any licensee within this State. A license
3shall be obtained for each car in which such sales are made.
4 (g) A boat license shall allow the sale of alcoholic
5liquor in individual drinks, on any passenger boat regularly
6operated as a common carrier on navigable waters in this State
7or on any riverboat operated under the Illinois Gambling Act,
8which boat or riverboat maintains a public dining room or
9restaurant thereon.
10 (h) A non-beverage user's license shall allow the licensee
11to purchase alcoholic liquor from a licensed manufacturer or
12importing distributor, without the imposition of any tax upon
13the business of such licensed manufacturer or importing
14distributor as to such alcoholic liquor to be used by such
15licensee solely for the non-beverage purposes set forth in
16subsection (a) of Section 8-1 of this Act, and such licenses
17shall be divided and classified and shall permit the purchase,
18possession and use of limited and stated quantities of
19alcoholic liquor as follows:
20Class 1, not to exceed ......................... 500 gallons
21Class 2, not to exceed ....................... 1,000 gallons
22Class 3, not to exceed ....................... 5,000 gallons
23Class 4, not to exceed ...................... 10,000 gallons
24Class 5, not to exceed ....................... 50,000 gallons
25 (i) A wine-maker's premises license shall allow a licensee
26that concurrently holds a first-class wine-maker's license to

HB2620 Enrolled- 44 -LRB102 11692 SPS 17026 b
1sell and offer for sale at retail in the premises specified in
2such license not more than 50,000 gallons of the first-class
3wine-maker's wine that is made at the first-class wine-maker's
4licensed premises per year for use or consumption, but not for
5resale in any form. A first-class wine-maker that concurrently
6holds a class 1 brewer license or a class 1 craft distiller
7license shall not be eligible to hold a wine-maker's premises
8license. A wine-maker's premises license shall allow a
9licensee who concurrently holds a second-class wine-maker's
10license to sell and offer for sale at retail in the premises
11specified in such license up to 100,000 gallons of the
12second-class wine-maker's wine that is made at the
13second-class wine-maker's licensed premises per year for use
14or consumption but not for resale in any form. A wine-maker's
15premises license shall allow a licensee that concurrently
16holds a first-class wine-maker's license or a second-class
17wine-maker's license to sell and offer for sale at retail at
18the premises specified in the wine-maker's premises license,
19for use or consumption but not for resale in any form, any
20beer, wine, and spirits purchased from a licensed distributor.
21Upon approval from the State Commission, a wine-maker's
22premises license shall allow the licensee to sell and offer
23for sale at (i) the wine-maker's licensed premises and (ii) at
24up to 2 additional locations for use and consumption and not
25for resale. Each location shall require additional licensing
26per location as specified in Section 5-3 of this Act. A

HB2620 Enrolled- 45 -LRB102 11692 SPS 17026 b
1wine-maker's premises licensee shall secure liquor liability
2insurance coverage in an amount at least equal to the maximum
3liability amounts set forth in subsection (a) of Section 6-21
4of this Act.
5 (j) An airplane license shall permit the licensee to
6import alcoholic liquors into this State from any point in the
7United States outside this State and to store such alcoholic
8liquors in this State; to make wholesale purchases of
9alcoholic liquors directly from manufacturers, foreign
10importers, distributors and importing distributors from within
11or outside this State; and to store such alcoholic liquors in
12this State; provided that the above powers may be exercised
13only in connection with the importation, purchase or storage
14of alcoholic liquors to be sold or dispensed on an airplane;
15and provided further, that airplane licensees exercising the
16above powers shall be subject to all provisions of Article
17VIII of this Act as applied to importing distributors. An
18airplane licensee shall also permit the sale or dispensing of
19alcoholic liquors on any passenger airplane regularly operated
20by a common carrier in this State, but shall not permit the
21sale for resale of any alcoholic liquors to any licensee
22within this State. A single airplane license shall be required
23of an airline company if liquor service is provided on board
24aircraft in this State. The annual fee for such license shall
25be as determined in Section 5-3.
26 (k) A foreign importer's license shall permit such

HB2620 Enrolled- 46 -LRB102 11692 SPS 17026 b
1licensee to purchase alcoholic liquor from Illinois licensed
2non-resident dealers only, and to import alcoholic liquor
3other than in bulk from any point outside the United States and
4to sell such alcoholic liquor to Illinois licensed importing
5distributors and to no one else in Illinois; provided that (i)
6the foreign importer registers with the State Commission every
7brand of alcoholic liquor that it proposes to sell to Illinois
8licensees during the license period, (ii) the foreign importer
9complies with all of the provisions of Section 6-9 of this Act
10with respect to registration of such Illinois licensees as may
11be granted the right to sell such brands at wholesale, and
12(iii) the foreign importer complies with the provisions of
13Sections 6-5 and 6-6 of this Act to the same extent that these
14provisions apply to manufacturers.
15 (l) (i) A broker's license shall be required of all
16persons who solicit orders for, offer to sell or offer to
17supply alcoholic liquor to retailers in the State of Illinois,
18or who offer to retailers to ship or cause to be shipped or to
19make contact with distillers, craft distillers, rectifiers,
20brewers or manufacturers or any other party within or without
21the State of Illinois in order that alcoholic liquors be
22shipped to a distributor, importing distributor or foreign
23importer, whether such solicitation or offer is consummated
24within or without the State of Illinois.
25 No holder of a retailer's license issued by the Illinois
26Liquor Control Commission shall purchase or receive any

HB2620 Enrolled- 47 -LRB102 11692 SPS 17026 b
1alcoholic liquor, the order for which was solicited or offered
2for sale to such retailer by a broker unless the broker is the
3holder of a valid broker's license.
4 The broker shall, upon the acceptance by a retailer of the
5broker's solicitation of an order or offer to sell or supply or
6deliver or have delivered alcoholic liquors, promptly forward
7to the Illinois Liquor Control Commission a notification of
8said transaction in such form as the Commission may by
9regulations prescribe.
10 (ii) A broker's license shall be required of a person
11within this State, other than a retail licensee, who, for a fee
12or commission, promotes, solicits, or accepts orders for
13alcoholic liquor, for use or consumption and not for resale,
14to be shipped from this State and delivered to residents
15outside of this State by an express company, common carrier,
16or contract carrier. This Section does not apply to any person
17who promotes, solicits, or accepts orders for wine as
18specifically authorized in Section 6-29 of this Act.
19 A broker's license under this subsection (l) shall not
20entitle the holder to buy or sell any alcoholic liquors for his
21own account or to take or deliver title to such alcoholic
22liquors.
23 This subsection (l) shall not apply to distributors,
24employees of distributors, or employees of a manufacturer who
25has registered the trademark, brand or name of the alcoholic
26liquor pursuant to Section 6-9 of this Act, and who regularly

HB2620 Enrolled- 48 -LRB102 11692 SPS 17026 b
1sells such alcoholic liquor in the State of Illinois only to
2its registrants thereunder.
3 Any agent, representative, or person subject to
4registration pursuant to subsection (a-1) of this Section
5shall not be eligible to receive a broker's license.
6 (m) A non-resident dealer's license shall permit such
7licensee to ship into and warehouse alcoholic liquor into this
8State from any point outside of this State, and to sell such
9alcoholic liquor to Illinois licensed foreign importers and
10importing distributors and to no one else in this State;
11provided that (i) said non-resident dealer shall register with
12the Illinois Liquor Control Commission each and every brand of
13alcoholic liquor which it proposes to sell to Illinois
14licensees during the license period, (ii) it shall comply with
15all of the provisions of Section 6-9 hereof with respect to
16registration of such Illinois licensees as may be granted the
17right to sell such brands at wholesale by duly filing such
18registration statement, thereby authorizing the non-resident
19dealer to proceed to sell such brands at wholesale, and (iii)
20the non-resident dealer shall comply with the provisions of
21Sections 6-5 and 6-6 of this Act to the same extent that these
22provisions apply to manufacturers. No person licensed as a
23non-resident dealer shall be granted a distributor's or
24importing distributor's license.
25 (n) A brew pub license shall allow the licensee to only (i)
26manufacture up to 155,000 gallons of beer per year only on the

HB2620 Enrolled- 49 -LRB102 11692 SPS 17026 b
1premises specified in the license, (ii) make sales of the beer
2manufactured on the premises or, with the approval of the
3Commission, beer manufactured on another brew pub licensed
4premises that is wholly owned and operated by the same
5licensee to importing distributors, distributors, and to
6non-licensees for use and consumption, (iii) store the beer
7upon the premises, (iv) sell and offer for sale at retail from
8the licensed premises for off-premises consumption no more
9than 155,000 gallons per year so long as such sales are only
10made in-person, (v) sell and offer for sale at retail for use
11and consumption on the premises specified in the license any
12form of alcoholic liquor purchased from a licensed distributor
13or importing distributor, (vi) with the prior approval of the
14Commission, annually transfer no more than 155,000 gallons of
15beer manufactured on the premises to a licensed brew pub
16wholly owned and operated by the same licensee, and (vii)
17notwithstanding item (i) of this subsection, brew pubs wholly
18owned and operated by the same licensee may combine each
19location's production limit of 155,000 gallons of beer per
20year and allocate the aggregate total between the wholly
21owned, operated, and licensed locations.
22 A brew pub licensee shall not under any circumstance sell
23or offer for sale beer manufactured by the brew pub licensee to
24retail licensees.
25 A person who holds a class 2 brewer license may
26simultaneously hold a brew pub license if the class 2 brewer

HB2620 Enrolled- 50 -LRB102 11692 SPS 17026 b
1(i) does not, under any circumstance, sell or offer for sale
2beer 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
5gallons of beer per year, including the beer manufactured at
6the brew pub; and (iv) is not a member of or affiliated with,
7directly or indirectly, a manufacturer that produces more than
83,720,000 gallons of beer per year or any other alcoholic
9liquor.
10 Notwithstanding any other provision of this Act, a
11licensed brewer, class 2 brewer, or non-resident dealer who
12before July 1, 2015 manufactured less than 3,720,000 gallons
13of beer per year and held a brew pub license on or before July
141, 2015 may (i) continue to qualify for and hold that brew pub
15license for the licensed premises and (ii) manufacture more
16than 3,720,000 gallons of beer per year and continue to
17qualify for and hold that brew pub license if that brewer,
18class 2 brewer, or non-resident dealer does not simultaneously
19hold a class 1 brewer license and is not a member of or
20affiliated with, directly or indirectly, a manufacturer that
21produces more than 3,720,000 gallons of beer per year or that
22produces any other alcoholic liquor.
23 A brew pub licensee may apply for a class 3 brewer license
24and upon: (i) meeting all applicable qualifications of this
25Act, and relinquishing all commonly owned brew pub or retail
26licenses shall be issued a class 3 brewer license. Nothing in

HB2620 Enrolled- 51 -LRB102 11692 SPS 17026 b
1this Act shall prohibit the issuance of a class 3 brewer
2license 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,
13the class 3 brewer license shall expire on the same date as the
14existing brew pub license and the State Commission shall not
15require a class 3 brewer licensee to obtain a brewer license,
16or in the alternative to pay a fee for a brewer license, until
17the date the brew pub license of the applicant would have
18expired.
19 (o) A caterer retailer license shall allow the holder to
20serve alcoholic liquors as an incidental part of a food
21service that serves prepared meals which excludes the serving
22of snacks as the primary meal, either on or off-site whether
23licensed or unlicensed. A caterer retailer license shall allow
24the holder, a distributor, or an importing distributor to
25transfer any inventory to and from the holder's retail
26premises and shall allow the holder to purchase alcoholic

HB2620 Enrolled- 52 -LRB102 11692 SPS 17026 b
1liquor from a distributor or importing distributor to be
2delivered directly to an off-site event.
3 Nothing in this Act prohibits a distributor or importing
4distributor from offering credit or a refund for unused,
5salable beer to a holder of a caterer retailer license or a
6caterer retailer licensee from accepting a credit or refund
7for unused, salable beer, in the event an act of God is the
8sole reason an off-site event is cancelled and if: (i) the
9holder of a caterer retailer license has not transferred
10alcoholic liquor from its caterer retailer premises to an
11off-site location; (ii) the distributor or importing
12distributor offers the credit or refund for the unused,
13salable beer that it delivered to the off-site premises and
14not for any unused, salable beer that the distributor or
15importing distributor delivered to the caterer retailer's
16premises; and (iii) the unused, salable beer would likely
17spoil if transferred to the caterer retailer's premises. A
18caterer retailer license shall allow the holder to transfer
19any inventory from any off-site location to its caterer
20retailer premises at the conclusion of an off-site event or
21engage a distributor or importing distributor to transfer any
22inventory from any off-site location to its caterer retailer
23premises at the conclusion of an off-site event, provided that
24the distributor or importing distributor issues bona fide
25charges to the caterer retailer licensee for fuel, labor, and
26delivery and the distributor or importing distributor collects

HB2620 Enrolled- 53 -LRB102 11692 SPS 17026 b
1payment from the caterer retailer licensee prior to the
2distributor or importing distributor transferring inventory to
3the caterer retailer premises.
4 For purposes of this subsection (o), an "act of God" means
5an unforeseeable event, such as a rain or snow storm, hail, a
6flood, or a similar event, that is the sole cause of the
7cancellation of an off-site, outdoor event.
8 (p) An auction liquor license shall allow the licensee to
9sell and offer for sale at auction wine and spirits for use or
10consumption, or for resale by an Illinois liquor licensee in
11accordance with provisions of this Act. An auction liquor
12license will be issued to a person and it will permit the
13auction liquor licensee to hold the auction anywhere in the
14State. An auction liquor license must be obtained for each
15auction at least 14 days in advance of the auction date.
16 (q) A special use permit license shall allow an Illinois
17licensed retailer to transfer a portion of its alcoholic
18liquor inventory from its retail licensed premises to the
19premises specified in the license hereby created; to purchase
20alcoholic liquor from a distributor or importing distributor
21to be delivered directly to the location specified in the
22license hereby created; and to sell or offer for sale at
23retail, only in the premises specified in the license hereby
24created, the transferred or delivered alcoholic liquor for use
25or consumption, but not for resale in any form. A special use
26permit license may be granted for the following time periods:

HB2620 Enrolled- 54 -LRB102 11692 SPS 17026 b
1one day or less; 2 or more days to a maximum of 15 days per
2location in any 12-month period. An applicant for the special
3use permit license must also submit with the application proof
4satisfactory to the State Commission that the applicant will
5provide dram shop liability insurance to the maximum limits
6and have local authority approval.
7 A special use permit license shall allow the holder to
8transfer any inventory from the holder's special use premises
9to its retail premises at the conclusion of the special use
10event or engage a distributor or importing distributor to
11transfer any inventory from the holder's special use premises
12to its retail premises at the conclusion of an off-site event,
13provided that the distributor or importing distributor issues
14bona fide charges to the special use permit licensee for fuel,
15labor, and delivery and the distributor or importing
16distributor collects payment from the retail licensee prior to
17the distributor or importing distributor transferring
18inventory to the retail premises.
19 Nothing in this Act prohibits a distributor or importing
20distributor from offering credit or a refund for unused,
21salable beer to a special use permit licensee or a special use
22permit licensee from accepting a credit or refund for unused,
23salable beer at the conclusion of the event specified in the
24license if: (i) the holder of the special use permit license
25has not transferred alcoholic liquor from its retail licensed
26premises to the premises specified in the special use permit

HB2620 Enrolled- 55 -LRB102 11692 SPS 17026 b
1license; (ii) the distributor or importing distributor offers
2the credit or refund for the unused, salable beer that it
3delivered to the premises specified in the special use permit
4license and not for any unused, salable beer that the
5distributor or importing distributor delivered to the
6retailer's premises; and (iii) the unused, salable beer would
7likely spoil if transferred to the retailer premises.
8 (r) A winery shipper's license shall allow a person with a
9first-class or second-class wine manufacturer's license, a
10first-class or second-class wine-maker's license, or a limited
11wine manufacturer's license or who is licensed to make wine
12under the laws of another state to ship wine made by that
13licensee directly to a resident of this State who is 21 years
14of age or older for that resident's personal use and not for
15resale. Prior to receiving a winery shipper's license, an
16applicant for the license must provide the Commission with a
17true copy of its current license in any state in which it is
18licensed as a manufacturer of wine. An applicant for a winery
19shipper's license must also complete an application form that
20provides any other information the Commission deems necessary.
21The application form shall include all addresses from which
22the applicant for a winery shipper's license intends to ship
23wine, including the name and address of any third party,
24except for a common carrier, authorized to ship wine on behalf
25of the manufacturer. The application form shall include an
26acknowledgement consenting to the jurisdiction of the

HB2620 Enrolled- 56 -LRB102 11692 SPS 17026 b
1Commission, the Illinois Department of Revenue, and the courts
2of this State concerning the enforcement of this Act and any
3related laws, rules, and regulations, including authorizing
4the Department of Revenue and the Commission to conduct audits
5for the purpose of ensuring compliance with Public Act 95-634,
6and an acknowledgement that the wine manufacturer is in
7compliance with Section 6-2 of this Act. Any third party,
8except for a common carrier, authorized to ship wine on behalf
9of a first-class or second-class wine manufacturer's licensee,
10a first-class or second-class wine-maker's licensee, a limited
11wine manufacturer's licensee, or a person who is licensed to
12make wine under the laws of another state shall also be
13disclosed by the winery shipper's licensee, and a copy of the
14written appointment of the third-party wine provider, except
15for a common carrier, to the wine manufacturer shall be filed
16with the State Commission as a supplement to the winery
17shipper's license application or any renewal thereof. The
18winery shipper's license holder shall affirm under penalty of
19perjury, as part of the winery shipper's license application
20or renewal, that he or she only ships wine, either directly or
21indirectly through a third-party provider, from the licensee's
22own production.
23 Except for a common carrier, a third-party provider
24shipping wine on behalf of a winery shipper's license holder
25is the agent of the winery shipper's license holder and, as
26such, a winery shipper's license holder is responsible for the

HB2620 Enrolled- 57 -LRB102 11692 SPS 17026 b
1acts and omissions of the third-party provider acting on
2behalf of the license holder. A third-party provider, except
3for a common carrier, that engages in shipping wine into
4Illinois on behalf of a winery shipper's license holder shall
5consent to the jurisdiction of the State Commission and the
6State. Any third-party, except for a common carrier, holding
7such an appointment shall, by February 1 of each calendar year
8and upon request by the State Commission or the Department of
9Revenue, file with the State Commission a statement detailing
10each shipment made to an Illinois resident. The statement
11shall include the name and address of the third-party provider
12filing the statement, the time period covered by the
13statement, 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.
18If the Department of Revenue or the State Commission requests
19a statement under this paragraph, the third-party provider
20must provide that statement no later than 30 days after the
21request is made. Any books, records, supporting papers, and
22documents containing information and data relating to a
23statement under this paragraph shall be kept and preserved for
24a period of 3 years, unless their destruction sooner is
25authorized, in writing, by the Director of Revenue, and shall
26be open and available to inspection by the Director of Revenue

HB2620 Enrolled- 58 -LRB102 11692 SPS 17026 b
1or the State Commission or any duly authorized officer, agent,
2or employee of the State Commission or the Department of
3Revenue, at all times during business hours of the day. Any
4person who violates any provision of this paragraph or any
5rule of the State Commission for the administration and
6enforcement of the provisions of this paragraph is guilty of a
7Class C misdemeanor. In case of a continuing violation, each
8day's continuance thereof shall be a separate and distinct
9offense.
10 The State Commission shall adopt rules as soon as
11practicable to implement the requirements of Public Act 99-904
12and shall adopt rules prohibiting any such third-party
13appointment of a third-party provider, except for a common
14carrier, that has been deemed by the State Commission to have
15violated the provisions of this Act with regard to any winery
16shipper licensee.
17 A winery shipper licensee must pay to the Department of
18Revenue the State liquor gallonage tax under Section 8-1 for
19all wine that is sold by the licensee and shipped to a person
20in this State. For the purposes of Section 8-1, a winery
21shipper licensee shall be taxed in the same manner as a
22manufacturer of wine. A licensee who is not otherwise required
23to register under the Retailers' Occupation Tax Act must
24register under the Use Tax Act to collect and remit use tax to
25the Department of Revenue for all gallons of wine that are sold
26by the licensee and shipped to persons in this State. If a

HB2620 Enrolled- 59 -LRB102 11692 SPS 17026 b
1licensee fails to remit the tax imposed under this Act in
2accordance with the provisions of Article VIII of this Act,
3the winery shipper's license shall be revoked in accordance
4with the provisions of Article VII of this Act. If a licensee
5fails to properly register and remit tax under the Use Tax Act
6or the Retailers' Occupation Tax Act for all wine that is sold
7by the winery shipper and shipped to persons in this State, the
8winery shipper's license shall be revoked in accordance with
9the provisions of Article VII of this Act.
10 A winery shipper licensee must collect, maintain, and
11submit to the Commission on a semi-annual basis the total
12number of cases per resident of wine shipped to residents of
13this State. A winery shipper licensed under this subsection
14(r) must comply with the requirements of Section 6-29 of this
15Act.
16 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
17Section 3-12, the State Commission may receive, respond to,
18and investigate any complaint and impose any of the remedies
19specified in paragraph (1) of subsection (a) of Section 3-12.
20 As used in this subsection, "third-party provider" means
21any entity that provides fulfillment house services, including
22warehousing, packaging, distribution, order processing, or
23shipment of wine, but not the sale of wine, on behalf of a
24licensed winery shipper.
25 (s) A craft distiller tasting permit license shall allow
26an Illinois licensed class 1 craft distiller or class 2 craft

HB2620 Enrolled- 60 -LRB102 11692 SPS 17026 b
1distiller to transfer a portion of its alcoholic liquor
2inventory from its class 1 craft distiller or class 2 craft
3distiller licensed premises to the premises specified in the
4license hereby created and to conduct a sampling, only in the
5premises specified in the license hereby created, of the
6transferred alcoholic liquor in accordance with subsection (c)
7of Section 6-31 of this Act. The transferred alcoholic liquor
8may not be sold or resold in any form. An applicant for the
9craft distiller tasting permit license must also submit with
10the application proof satisfactory to the State Commission
11that the applicant will provide dram shop liability insurance
12to the maximum limits and have local authority approval.
13 (t) A brewer warehouse permit may be issued to the holder
14of a class 1 brewer license or a class 2 brewer license. If the
15holder of the permit is a class 1 brewer licensee, the brewer
16warehouse permit shall allow the holder to store or warehouse
17up to 930,000 gallons of tax-determined beer manufactured by
18the holder of the permit at the premises specified on the
19permit. If the holder of the permit is a class 2 brewer
20licensee, the brewer warehouse permit shall allow the holder
21to store or warehouse up to 3,720,000 gallons of
22tax-determined beer manufactured by the holder of the permit
23at the premises specified on the permit. Sales to
24non-licensees are prohibited at the premises specified in the
25brewer warehouse permit.
26 (u) A distilling pub license shall allow the licensee to

HB2620 Enrolled- 61 -LRB102 11692 SPS 17026 b
1only (i) manufacture up to 5,000 gallons of spirits per year
2only on the premises specified in the license, (ii) make sales
3of the spirits manufactured on the premises or, with the
4approval of the State Commission, spirits manufactured on
5another distilling pub licensed premises that is wholly owned
6and operated by the same licensee to importing distributors
7and distributors and to non-licensees for use and consumption,
8(iii) store the spirits upon the premises, (iv) sell and offer
9for sale at retail from the licensed premises for off-premises
10consumption no more than 5,000 gallons per year so long as such
11sales are only made in-person, (v) sell and offer for sale at
12retail for use and consumption on the premises specified in
13the license any form of alcoholic liquor purchased from a
14licensed distributor or importing distributor, and (vi) with
15the prior approval of the State Commission, annually transfer
16no more than 5,000 gallons of spirits manufactured on the
17premises to a licensed distilling pub wholly owned and
18operated by the same licensee.
19 A distilling pub licensee shall not under any circumstance
20sell or offer for sale spirits manufactured by the distilling
21pub licensee to retail licensees.
22 A person who holds a class 2 craft distiller license may
23simultaneously hold a distilling pub license if the class 2
24craft distiller (i) does not, under any circumstance, sell or
25offer for sale spirits manufactured by the class 2 craft
26distiller to retail licensees; (ii) does not hold more than 3

HB2620 Enrolled- 62 -LRB102 11692 SPS 17026 b
1distilling pub licenses in this State; (iii) does not
2manufacture more than a combined 100,000 gallons of spirits
3per year, including the spirits manufactured at the distilling
4pub; and (iv) is not a member of or affiliated with, directly
5or indirectly, a manufacturer that produces more than 100,000
6gallons of spirits per year or any other alcoholic liquor.
7 (v) A craft distiller warehouse permit may be issued to
8the holder of a class 1 craft distiller or class 2 craft
9distiller license. The craft distiller warehouse permit shall
10allow the holder to store or warehouse up to 500,000 gallons of
11spirits manufactured by the holder of the permit at the
12premises specified on the permit. Sales to non-licensees are
13prohibited at the premises specified in the craft distiller
14warehouse permit.
15 (w) A beer showcase permit license shall allow an
16Illinois-licensed distributor to transfer a portion of its
17beer inventory from its licensed premises to the premises
18specified in the beer showcase permit license, and, in the
19case of a class 3 brewer, transfer only beer the class 3 brewer
20manufactures from its licensed premises to the premises
21specified in the beer showcase permit license; and to sell or
22offer for sale at retail, only in the premises specified in the
23beer showcase permit license, the transferred or delivered
24beer for on or off premise consumption, but not for resale in
25any form and to sell to non-licensees not more than 96 fluid
26ounces of beer per person. A beer showcase permit license may

HB2620 Enrolled- 63 -LRB102 11692 SPS 17026 b
1be granted for the following time periods: one day or less; or
22 or more days to a maximum of 15 days per location in any
312-month period. An applicant for a beer showcase permit
4license must also submit with the application proof
5satisfactory to the State Commission that the applicant will
6provide dram shop liability insurance to the maximum limits
7and have local authority approval. The State Commission shall
8require the beer showcase applicant to comply with Section
96-27.1.
10(Source: P.A. 100-17, eff. 6-30-17; 100-201, eff. 8-18-17;
11100-816, eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff.
128-23-18; 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; 101-81,
13eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. 8-23-19;
14101-615, 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
17Commission shall be of the following classes:
18 (a) Manufacturer's license - Class 1. Distiller, Class 2.
19Rectifier, Class 3. Brewer, Class 4. First Class Wine
20Manufacturer, Class 5. Second Class Wine Manufacturer, Class
216. First Class Winemaker, Class 7. Second Class Winemaker,
22Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
23Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
24Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
25Class 14. Class 3 Brewer,

HB2620 Enrolled- 64 -LRB102 11692 SPS 17026 b
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
24business entity that is engaged in the manufacturing of wine
25may concurrently obtain and hold a wine-maker's license and a
26wine manufacturer's license.

HB2620 Enrolled- 65 -LRB102 11692 SPS 17026 b
1 (a) A manufacturer's license shall allow the manufacture,
2importation in bulk, storage, distribution and sale of
3alcoholic liquor to persons without the State, as may be
4permitted by law and to licensees in this State as follows:
5 Class 1. A Distiller may make sales and deliveries of
6alcoholic liquor to distillers, rectifiers, importing
7distributors, distributors and non-beverage users and to no
8other licensees.
9 Class 2. A Rectifier, who is not a distiller, as defined
10herein, may make sales and deliveries of alcoholic liquor to
11rectifiers, importing distributors, distributors, retailers
12and non-beverage users and to no other licensees.
13 Class 3. A Brewer may make sales and deliveries of beer to
14importing distributors and distributors and may make sales as
15authorized under subsection (e) of Section 6-4 of this Act,
16including any alcoholic liquor that subsection (e) of Section
176-4 authorizes a brewer to sell in its original package only to
18a non-licensee for pick-up by a non-licensee either within the
19interior of the brewery premises or at outside of the brewery
20premises at a curb-side or parking lot adjacent to the brewery
21premises, subject to any local ordinance.
22 Class 4. A first class wine-manufacturer may make sales
23and deliveries of up to 50,000 gallons of wine to
24manufacturers, importing distributors and distributors, and to
25no other licensees. If a first-class wine-manufacturer
26manufactures beer, it shall also obtain and shall only be

HB2620 Enrolled- 66 -LRB102 11692 SPS 17026 b
1eligible for, in addition to any current license, a class 1
2brewer license, shall not manufacture more than 930,000
3gallons of beer per year, and shall not be a member of or
4affiliated with, directly or indirectly, a manufacturer that
5produces more than 930,000 gallons of beer per year. If the
6first-class wine-manufacturer manufactures spirits, it shall
7also obtain and shall only be eligible for, in addition to any
8current license, a class 1 craft distiller license, shall not
9manufacture more than 50,000 gallons of spirits per year, and
10shall not be a member of or affiliated with, directly or
11indirectly, a manufacturer that produces more than 50,000
12gallons of spirits per year. A first-class wine-manufacturer
13shall be permitted to sell wine manufactured at the
14first-class wine-manufacturer premises to non-licensees.
15 Class 5. A second class Wine manufacturer may make sales
16and deliveries of more than 50,000 gallons of wine to
17manufacturers, importing distributors and distributors and to
18no other licensees.
19 Class 6. A first-class wine-maker's license shall allow
20the manufacture of up to 50,000 gallons of wine per year, and
21the storage and sale of such wine to distributors in the State
22and to persons without the State, as may be permitted by law. A
23person who, prior to June 1, 2008 (the effective date of Public
24Act 95-634), is a holder of a first-class wine-maker's license
25and annually produces more than 25,000 gallons of its own wine
26and who distributes its wine to licensed retailers shall cease

HB2620 Enrolled- 67 -LRB102 11692 SPS 17026 b
1this practice on or before July 1, 2008 in compliance with
2Public Act 95-634. If a first-class wine-maker manufactures
3beer, it shall also obtain and shall only be eligible for, in
4addition to any current license, a class 1 brewer license,
5shall not manufacture more than 930,000 gallons of beer per
6year, and shall not be a member of or affiliated with, directly
7or indirectly, a manufacturer that produces more than 930,000
8gallons of beer per year. If the first-class wine-maker
9manufactures spirits, it shall also obtain and shall only be
10eligible for, in addition to any current license, a class 1
11craft distiller license, shall not manufacture more than
1250,000 gallons of spirits per year, and shall not be a member
13of or affiliated with, directly or indirectly, a manufacturer
14that produces more than 50,000 gallons of spirits per year. A
15first-class wine-maker holding a class 1 brewer license or a
16class 1 craft distiller license shall not be eligible for a
17wine-maker's premises license but shall be permitted to sell
18wine manufactured at the first-class wine-maker premises to
19non-licensees.
20 Class 7. A second-class wine-maker's license shall allow
21the manufacture of up to between 50,000 and 150,000 gallons of
22wine per year, and the storage and sale of such wine to
23distributors in this State and to persons without the State,
24as 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
26second-class wine-maker's license and annually produces more

HB2620 Enrolled- 68 -LRB102 11692 SPS 17026 b
1than 25,000 gallons of its own wine and who distributes its
2wine to licensed retailers shall cease this practice on or
3before July 1, 2008 in compliance with Public Act 95-634. If a
4second-class wine-maker manufactures beer, it shall also
5obtain and shall only be eligible for, in addition to any
6current license, a class 2 brewer license, shall not
7manufacture more than 3,720,000 gallons of beer per year, and
8shall not be a member of or affiliated with, directly or
9indirectly, a manufacturer that produces more than 3,720,000
10gallons of beer per year. If a second-class wine-maker
11manufactures spirits, it shall also obtain and shall only be
12eligible for, in addition to any current license, a class 2
13craft distiller license, shall not manufacture more than
14100,000 gallons of spirits per year, and shall not be a member
15of or affiliated with, directly or indirectly, a manufacturer
16that produces more than 100,000 gallons of spirits per year.
17 Class 8. A limited wine-manufacturer may make sales and
18deliveries not to exceed 40,000 gallons of wine per year to
19distributors, and to non-licensees in accordance with the
20provisions of this Act.
21 Class 9. A craft distiller license, which may only be held
22by a class 1 craft distiller licensee or class 2 craft
23distiller licensee but not held by both a class 1 craft
24distiller licensee and a class 2 craft distiller licensee,
25shall grant all rights conveyed by either: (i) a class 1 craft
26distiller license if the craft distiller holds a class 1 craft

HB2620 Enrolled- 69 -LRB102 11692 SPS 17026 b
1distiller license; or (ii) a class 2 craft distiller licensee
2if the craft distiller holds a class 2 craft distiller
3license.
4 Class 10. A class 1 craft distiller license, which may
5only be issued to a licensed craft distiller or licensed
6non-resident dealer, shall allow the manufacture of up to
750,000 gallons of spirits per year provided that the class 1
8craft distiller licensee does not manufacture more than a
9combined 50,000 gallons of spirits per year and is not a member
10of or affiliated with, directly or indirectly, a manufacturer
11that produces more than 50,000 gallons of spirits per year or
12any other alcoholic liquor. If a class 1 craft distiller
13manufactures beer, it shall also obtain and shall only be
14eligible for, in addition to any current license, a class 1
15brewer license, shall not manufacture more than 930,000
16gallons of beer per year, and shall not be a member of or
17affiliated with, directly or indirectly, a manufacturer that
18produces more than 930,000 gallons of beer per year. If a class
191 craft distiller manufactures wine, it shall also obtain and
20shall only be eligible for, in addition to any current
21license, a first-class wine-manufacturer license or a
22first-class wine-maker's license, shall not manufacture more
23than 50,000 gallons of wine per year, and shall not be a member
24of or affiliated with, directly or indirectly, a manufacturer
25that produces more than 50,000 gallons of wine per year. A
26class 1 craft distiller licensee may make sales and deliveries

HB2620 Enrolled- 70 -LRB102 11692 SPS 17026 b
1to importing distributors and distributors and to retail
2licensees in accordance with the conditions set forth in
3paragraph (19) of subsection (a) of Section 3-12 of this Act.
4However, the aggregate amount of spirits sold to non-licensees
5and sold or delivered to retail licensees may not exceed 5,000
6gallons per year.
7 A class 1 craft distiller licensee may sell up to 5,000
8gallons of such spirits to non-licensees to the extent
9permitted by any exemption approved by the State Commission
10pursuant to Section 6-4 of this Act. A class 1 craft distiller
11license holder may store such spirits at a non-contiguous
12licensed location, but at no time shall a class 1 craft
13distiller license holder directly or indirectly produce in the
14aggregate more than 50,000 gallons of spirits per year.
15 A class 1 craft distiller licensee may hold more than one
16class 1 craft distiller's license. However, a class 1 craft
17distiller that holds more than one class 1 craft distiller
18license shall not manufacture, in the aggregate, more than
1950,000 gallons of spirits by distillation per year and shall
20not sell, in the aggregate, more than 5,000 gallons of such
21spirits to non-licensees in accordance with an exemption
22approved by the State Commission pursuant to Section 6-4 of
23this Act.
24 Class 11. A class 2 craft distiller license, which may
25only be issued to a licensed craft distiller or licensed
26non-resident dealer, shall allow the manufacture of up to

HB2620 Enrolled- 71 -LRB102 11692 SPS 17026 b
1100,000 gallons of spirits per year provided that the class 2
2craft distiller licensee does not manufacture more than a
3combined 100,000 gallons of spirits per year and is not a
4member of or affiliated with, directly or indirectly, a
5manufacturer that produces more than 100,000 gallons of
6spirits per year or any other alcoholic liquor. If a class 2
7craft distiller manufactures beer, it shall also obtain and
8shall only be eligible for, in addition to any current
9license, a class 2 brewer license, shall not manufacture more
10than 3,720,000 gallons of beer per year, and shall not be a
11member of or affiliated with, directly or indirectly, a
12manufacturer that produces more than 3,720,000 gallons of beer
13per year. If a class 2 craft distiller manufactures wine, it
14shall also obtain and shall only be eligible for, in addition
15to any current license, a second-class wine-maker's license,
16shall not manufacture more than 150,000 gallons of wine per
17year, and shall not be a member of or affiliated with, directly
18or indirectly, a manufacturer that produces more than 150,000
19gallons of wine per year. A class 2 craft distiller licensee
20may make sales and deliveries to importing distributors and
21distributors, but shall not make sales or deliveries to any
22other licensee. If the State Commission provides prior
23approval, a class 2 craft distiller licensee may annually
24transfer up to 100,000 gallons of spirits manufactured by that
25class 2 craft distiller licensee to the premises of a licensed
26class 2 craft distiller wholly owned and operated by the same

HB2620 Enrolled- 72 -LRB102 11692 SPS 17026 b
1licensee. A class 2 craft distiller may transfer spirits to a
2distilling pub wholly owned and operated by the class 2 craft
3distiller subject to the following limitations and
4restrictions: (i) the transfer shall not annually exceed more
5than 5,000 gallons; (ii) the annual amount transferred shall
6reduce the distilling pub's annual permitted production limit;
7(iii) all spirits transferred shall be subject to Article VIII
8of this Act; (iv) a written record shall be maintained by the
9distiller and distilling pub specifying the amount, date of
10delivery, and receipt of the product by the distilling pub;
11and (v) the distilling pub shall be located no farther than 80
12miles from the class 2 craft distiller's licensed location.
13 A class 2 craft distiller shall, prior to transferring
14spirits to a distilling pub wholly owned by the class 2 craft
15distiller, furnish a written notice to the State Commission of
16intent to transfer spirits setting forth the name and address
17of the distilling pub and shall annually submit to the State
18Commission a verified report identifying the total gallons of
19spirits transferred to the distilling pub wholly owned by the
20class 2 craft distiller.
21 A class 2 craft distiller license holder may store such
22spirits at a non-contiguous licensed location, but at no time
23shall a class 2 craft distiller license holder directly or
24indirectly produce in the aggregate more than 100,000 gallons
25of spirits per year.
26 Class 12. A class 1 brewer license, which may only be

HB2620 Enrolled- 73 -LRB102 11692 SPS 17026 b
1issued to a licensed brewer or licensed non-resident dealer,
2shall allow the manufacture of up to 930,000 gallons of beer
3per year provided that the class 1 brewer licensee does not
4manufacture more than a combined 930,000 gallons of beer per
5year and is not a member of or affiliated with, directly or
6indirectly, a manufacturer that produces more than 930,000
7gallons of beer per year or any other alcoholic liquor. If a
8class 1 brewer manufactures spirits, it shall also obtain and
9shall only be eligible for, in addition to any current
10license, a class 1 craft distiller license, shall not
11manufacture more than 50,000 gallons of spirits per year, and
12shall not be a member of or affiliated with, directly or
13indirectly, a manufacturer that produces more than 50,000
14gallons of spirits per year. If a class 1 craft brewer
15manufactures wine, it shall also obtain and shall only be
16eligible for, in addition to any current license, a
17first-class wine-manufacturer license or a first-class
18wine-maker's license, shall not manufacture more than 50,000
19gallons of wine per year, and shall not be a member of or
20affiliated with, directly or indirectly, a manufacturer that
21produces more than 50,000 gallons of wine per year. A class 1
22brewer licensee may make sales and deliveries to importing
23distributors and distributors and to retail licensees in
24accordance with the conditions set forth in paragraph (18) of
25subsection (a) of Section 3-12 of this Act. If the State
26Commission provides prior approval, a class 1 brewer may

HB2620 Enrolled- 74 -LRB102 11692 SPS 17026 b
1annually transfer up to 930,000 gallons of beer manufactured
2by that class 1 brewer to the premises of a licensed class 1
3brewer wholly owned and operated by the same licensee.
4 Class 13. A class 2 brewer license, which may only be
5issued to a licensed brewer or licensed non-resident dealer,
6shall allow the manufacture of up to 3,720,000 gallons of beer
7per year provided that the class 2 brewer licensee does not
8manufacture more than a combined 3,720,000 gallons of beer per
9year and is not a member of or affiliated with, directly or
10indirectly, a manufacturer that produces more than 3,720,000
11gallons of beer per year or any other alcoholic liquor. If a
12class 2 brewer manufactures spirits, it shall also obtain and
13shall only be eligible for, in addition to any current
14license, a class 2 craft distiller license, shall not
15manufacture more than 100,000 gallons of spirits per year, and
16shall not be a member of or affiliated with, directly or
17indirectly, a manufacturer that produces more than 100,000
18gallons of spirits per year. If a class 2 craft distiller
19manufactures wine, it shall also obtain and shall only be
20eligible for, in addition to any current license, a
21second-class wine-maker's license, shall not manufacture more
22than 150,000 gallons of wine per year, and shall not be a
23member of or affiliated with, directly or indirectly, a
24manufacturer that produces more than 150,000 gallons of wine a
25year. A class 2 brewer licensee may make sales and deliveries
26to importing distributors and distributors, but shall not make

HB2620 Enrolled- 75 -LRB102 11692 SPS 17026 b
1sales or deliveries to any other licensee. If the State
2Commission provides prior approval, a class 2 brewer licensee
3may annually transfer up to 3,720,000 gallons of beer
4manufactured by that class 2 brewer licensee to the premises
5of a licensed class 2 brewer wholly owned and operated by the
6same licensee.
7 A class 2 brewer may transfer beer to a brew pub wholly
8owned and operated by the class 2 brewer subject to the
9following limitations and restrictions: (i) the transfer shall
10not annually exceed more than 31,000 gallons; (ii) the annual
11amount transferred shall reduce the brew pub's annual
12permitted production limit; (iii) all beer transferred shall
13be subject to Article VIII of this Act; (iv) a written record
14shall be maintained by the brewer and brew pub specifying the
15amount, date of delivery, and receipt of the product by the
16brew pub; and (v) the brew pub shall be located no farther than
1780 miles from the class 2 brewer's licensed location.
18 A class 2 brewer shall, prior to transferring beer to a
19brew pub wholly owned by the class 2 brewer, furnish a written
20notice to the State Commission of intent to transfer beer
21setting forth the name and address of the brew pub and shall
22annually submit to the State Commission a verified report
23identifying the total gallons of beer transferred to the brew
24pub wholly owned by the class 2 brewer.
25 Class 14. A class 3 brewer license, which may be issued to
26a brewer or a non-resident dealer, shall allow the manufacture

HB2620 Enrolled- 76 -LRB102 11692 SPS 17026 b
1of no more than 465,000 gallons of beer per year and no more
2than 155,000 gallons at a single brewery premises, and shall
3allow the sale of no more than 6,200 gallons of beer from each
4in-state or out-of-state class 3 brewery premises, or 18,600
5gallons in the aggregate, to retail licensees, class 1
6brewers, class 2 brewers, and class 3 brewers as long as the
7class 3 brewer licensee does not manufacture more than a
8combined 465,000 gallons of beer per year and is not a member
9of or affiliated with, directly or indirectly, a manufacturer
10that produces more than 465,000 gallons of beer per year to
11make sales to importing distributors, distributors, retail
12licensees, brewers, class 1 brewers, class 2 brewers, and
13class 3 brewers in accordance with the conditions set forth in
14paragraph (20) of subsection (a) of Section 3-12. If the State
15Commission provides prior approval, a class 3 brewer may
16annually transfer up to 155,000 gallons of beer manufactured
17by that class 3 brewer to the premises of a licensed class 3
18brewer wholly owned and operated by the same licensee. A class
193 brewer shall manufacture beer at the brewer's class 3
20designated licensed premises, and may sell beer as otherwise
21provided in this Act.
22 (a-1) A manufacturer which is licensed in this State to
23make sales or deliveries of alcoholic liquor to licensed
24distributors or importing distributors and which enlists
25agents, representatives, or individuals acting on its behalf
26who contact licensed retailers on a regular and continual

HB2620 Enrolled- 77 -LRB102 11692 SPS 17026 b
1basis in this State must register those agents,
2representatives, or persons acting on its behalf with the
3State Commission.
4 Registration of agents, representatives, or persons acting
5on behalf of a manufacturer is fulfilled by submitting a form
6to the Commission. The form shall be developed by the
7Commission and shall include the name and address of the
8applicant, the name and address of the manufacturer he or she
9represents, the territory or areas assigned to sell to or
10discuss pricing terms of alcoholic liquor, and any other
11questions deemed appropriate and necessary. All statements in
12the forms required to be made by law or by rule shall be deemed
13material, and any person who knowingly misstates any material
14fact under oath in an application is guilty of a Class B
15misdemeanor. Fraud, misrepresentation, false statements,
16misleading statements, evasions, or suppression of material
17facts in the securing of a registration are grounds for
18suspension or revocation of the registration. The State
19Commission shall post a list of registered agents on the
20Commission's website.
21 (b) A distributor's license shall allow (i) the wholesale
22purchase and storage of alcoholic liquors and sale of
23alcoholic liquors to licensees in this State and to persons
24without the State, as may be permitted by law; (ii) the sale of
25beer, cider, mead, or any combination thereof or both beer and
26cider to brewers, class 1 brewers, and class 2 brewers that,

HB2620 Enrolled- 78 -LRB102 11692 SPS 17026 b
1pursuant to subsection (e) of Section 6-4 of this Act, sell
2beer, cider, mead, or any combination thereof or both beer and
3cider to non-licensees at their breweries; and (iii) the sale
4of vermouth to class 1 craft distillers and class 2 craft
5distillers that, pursuant to subsection (e) of Section 6-4 of
6this Act, sell spirits, vermouth, or both spirits and vermouth
7to non-licensees at their distilleries; or (iv) as otherwise
8provided in this Act. No person licensed as a distributor
9shall be granted a non-resident dealer's license.
10 (c) An importing distributor's license may be issued to
11and held by those only who are duly licensed distributors,
12upon the filing of an application by a duly licensed
13distributor, with the Commission and the Commission shall,
14without the payment of any fee, immediately issue such
15importing distributor's license to the applicant, which shall
16allow the importation of alcoholic liquor by the licensee into
17this State from any point in the United States outside this
18State, and the purchase of alcoholic liquor in barrels, casks
19or other bulk containers and the bottling of such alcoholic
20liquors before resale thereof, but all bottles or containers
21so filled shall be sealed, labeled, stamped and otherwise made
22to comply with all provisions, rules and regulations governing
23manufacturers in the preparation and bottling of alcoholic
24liquors. The importing distributor's license shall permit such
25licensee to purchase alcoholic liquor from Illinois licensed
26non-resident dealers and foreign importers only. No person

HB2620 Enrolled- 79 -LRB102 11692 SPS 17026 b
1licensed as an importing distributor shall be granted a
2non-resident dealer's license.
3 (d) A retailer's license shall allow the licensee to sell
4and offer for sale at retail, only in the premises specified in
5the license, alcoholic liquor for use or consumption, but not
6for resale in any form. Except as provided in Section 6-16,
76-29, or 6-29.1, nothing in this Act shall deny, limit,
8remove, or restrict the ability of a holder of a retailer's
9license to transfer or ship alcoholic liquor to the purchaser
10for use or consumption subject to any applicable local law or
11ordinance. For the purposes of this Section, "shipping" means
12the movement of alcoholic liquor from a licensed retailer to a
13consumer via a common carrier. Except as provided in Section
146-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,
15remove, or restrict the ability of a holder of a retailer's
16license to deliver alcoholic liquor to the purchaser for use
17or consumption. The delivery shall be made only within 12
18hours from the time the alcoholic liquor leaves the licensed
19premises of the retailer for delivery. For the purposes of
20this Section, "delivery" means the movement of alcoholic
21liquor purchased from a licensed retailer to a consumer
22through 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

HB2620 Enrolled- 80 -LRB102 11692 SPS 17026 b
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
5include the use of common carriers.
6 Any retail license issued to a manufacturer shall only
7permit the manufacturer to sell beer at retail on the premises
8actually occupied by the manufacturer. For the purpose of
9further describing the type of business conducted at a retail
10licensed premises, a retailer's licensee may be designated by
11the State Commission as (i) an on premise consumption
12retailer, (ii) an off premise sale retailer, or (iii) a
13combined on premise consumption and off premise sale retailer.
14 Except for a municipality with a population of more than
151,000,000 inhabitants, a home rule unit may not regulate the
16delivery of alcoholic liquor inconsistent with this
17subsection. This paragraph is a limitation under subsection
18(i) of Section 6 of Article VII of the Illinois Constitution on
19the concurrent exercise by home rule units of powers and
20functions exercised by the State.
21 Notwithstanding any other provision of this subsection
22(d), a retail licensee may sell alcoholic liquors to a special
23event retailer licensee for resale to the extent permitted
24under subsection (e).
25 (e) A special event retailer's license (not-for-profit)
26shall permit the licensee to purchase alcoholic liquors from

HB2620 Enrolled- 81 -LRB102 11692 SPS 17026 b
1an Illinois licensed distributor (unless the licensee
2purchases less than $500 of alcoholic liquors for the special
3event, in which case the licensee may purchase the alcoholic
4liquors from a licensed retailer) and shall allow the licensee
5to sell and offer for sale, at retail, alcoholic liquors for
6use or consumption, but not for resale in any form and only at
7the location and on the specific dates designated for the
8special event in the license. An applicant for a special event
9retailer license must (i) furnish with the application: (A) a
10resale number issued under Section 2c of the Retailers'
11Occupation Tax Act or evidence that the applicant is
12registered under Section 2a of the Retailers' Occupation Tax
13Act, (B) a current, valid exemption identification number
14issued under Section 1g of the Retailers' Occupation Tax Act,
15and a certification to the Commission that the purchase of
16alcoholic liquors will be a tax-exempt purchase, or (C) a
17statement that the applicant is not registered under Section
182a of the Retailers' Occupation Tax Act, does not hold a resale
19number under Section 2c of the Retailers' Occupation Tax Act,
20and does not hold an exemption number under Section 1g of the
21Retailers' Occupation Tax Act, in which event the Commission
22shall set forth on the special event retailer's license a
23statement to that effect; (ii) submit with the application
24proof satisfactory to the State Commission that the applicant
25will provide dram shop liability insurance in the maximum
26limits; and (iii) show proof satisfactory to the State

HB2620 Enrolled- 82 -LRB102 11692 SPS 17026 b
1Commission that the applicant has obtained local authority
2approval.
3 Nothing in this Act prohibits an Illinois licensed
4distributor from offering credit or a refund for unused,
5salable alcoholic liquors to a holder of a special event
6retailer's license or the special event retailer's licensee
7from accepting the credit or refund of alcoholic liquors at
8the conclusion of the event specified in the license.
9 (f) A railroad license shall permit the licensee to import
10alcoholic liquors into this State from any point in the United
11States outside this State and to store such alcoholic liquors
12in this State; to make wholesale purchases of alcoholic
13liquors directly from manufacturers, foreign importers,
14distributors and importing distributors from within or outside
15this State; and to store such alcoholic liquors in this State;
16provided that the above powers may be exercised only in
17connection with the importation, purchase or storage of
18alcoholic liquors to be sold or dispensed on a club, buffet,
19lounge or dining car operated on an electric, gas or steam
20railway in this State; and provided further, that railroad
21licensees exercising the above powers shall be subject to all
22provisions of Article VIII of this Act as applied to importing
23distributors. A railroad license shall also permit the
24licensee to sell or dispense alcoholic liquors on any club,
25buffet, lounge or dining car operated on an electric, gas or
26steam railway regularly operated by a common carrier in this

HB2620 Enrolled- 83 -LRB102 11692 SPS 17026 b
1State, but shall not permit the sale for resale of any
2alcoholic liquors to any licensee within this State. A license
3shall be obtained for each car in which such sales are made.
4 (g) A boat license shall allow the sale of alcoholic
5liquor in individual drinks, on any passenger boat regularly
6operated as a common carrier on navigable waters in this State
7or on any riverboat operated under the Illinois Gambling Act,
8which boat or riverboat maintains a public dining room or
9restaurant thereon.
10 (h) A non-beverage user's license shall allow the licensee
11to purchase alcoholic liquor from a licensed manufacturer or
12importing distributor, without the imposition of any tax upon
13the business of such licensed manufacturer or importing
14distributor as to such alcoholic liquor to be used by such
15licensee solely for the non-beverage purposes set forth in
16subsection (a) of Section 8-1 of this Act, and such licenses
17shall be divided and classified and shall permit the purchase,
18possession and use of limited and stated quantities of
19alcoholic liquor as follows:
20Class 1, not to exceed ......................... 500 gallons
21Class 2, not to exceed ....................... 1,000 gallons
22Class 3, not to exceed ....................... 5,000 gallons
23Class 4, not to exceed ...................... 10,000 gallons
24Class 5, not to exceed ....................... 50,000 gallons
25 (i) A wine-maker's premises license shall allow a licensee
26that concurrently holds a first-class wine-maker's license to

HB2620 Enrolled- 84 -LRB102 11692 SPS 17026 b
1sell and offer for sale at retail in the premises specified in
2such license not more than 50,000 gallons of the first-class
3wine-maker's wine that is made at the first-class wine-maker's
4licensed premises per year for use or consumption, but not for
5resale in any form. A wine-maker's premises license shall
6allow a licensee who concurrently holds a second-class
7wine-maker's license to sell and offer for sale at retail in
8the premises specified in such license up to 100,000 gallons
9of the second-class wine-maker's wine that is made at the
10second-class wine-maker's licensed premises per year for use
11or consumption but not for resale in any form. A first-class
12wine-maker that concurrently holds a class 1 brewer license or
13a class 1 craft distiller license shall not be eligible to hold
14a wine-maker's premises license. A wine-maker's premises
15license shall allow a licensee that concurrently holds a
16first-class wine-maker's license or a second-class
17wine-maker's license to sell and offer for sale at retail at
18the premises specified in the wine-maker's premises license,
19for use or consumption but not for resale in any form, any
20beer, wine, and spirits purchased from a licensed distributor.
21Upon approval from the State Commission, a wine-maker's
22premises license shall allow the licensee to sell and offer
23for sale at (i) the wine-maker's licensed premises and (ii) at
24up to 2 additional locations for use and consumption and not
25for resale. Each location shall require additional licensing
26per location as specified in Section 5-3 of this Act. A

HB2620 Enrolled- 85 -LRB102 11692 SPS 17026 b
1wine-maker's premises licensee shall secure liquor liability
2insurance coverage in an amount at least equal to the maximum
3liability amounts set forth in subsection (a) of Section 6-21
4of this Act.
5 (j) An airplane license shall permit the licensee to
6import alcoholic liquors into this State from any point in the
7United States outside this State and to store such alcoholic
8liquors in this State; to make wholesale purchases of
9alcoholic liquors directly from manufacturers, foreign
10importers, distributors and importing distributors from within
11or outside this State; and to store such alcoholic liquors in
12this State; provided that the above powers may be exercised
13only in connection with the importation, purchase or storage
14of alcoholic liquors to be sold or dispensed on an airplane;
15and provided further, that airplane licensees exercising the
16above powers shall be subject to all provisions of Article
17VIII of this Act as applied to importing distributors. An
18airplane licensee shall also permit the sale or dispensing of
19alcoholic liquors on any passenger airplane regularly operated
20by a common carrier in this State, but shall not permit the
21sale for resale of any alcoholic liquors to any licensee
22within this State. A single airplane license shall be required
23of an airline company if liquor service is provided on board
24aircraft in this State. The annual fee for such license shall
25be as determined in Section 5-3.
26 (k) A foreign importer's license shall permit such

HB2620 Enrolled- 86 -LRB102 11692 SPS 17026 b
1licensee to purchase alcoholic liquor from Illinois licensed
2non-resident dealers only, and to import alcoholic liquor
3other than in bulk from any point outside the United States and
4to sell such alcoholic liquor to Illinois licensed importing
5distributors and to no one else in Illinois; provided that (i)
6the foreign importer registers with the State Commission every
7brand of alcoholic liquor that it proposes to sell to Illinois
8licensees during the license period, (ii) the foreign importer
9complies with all of the provisions of Section 6-9 of this Act
10with respect to registration of such Illinois licensees as may
11be granted the right to sell such brands at wholesale, and
12(iii) the foreign importer complies with the provisions of
13Sections 6-5 and 6-6 of this Act to the same extent that these
14provisions apply to manufacturers.
15 (l) (i) A broker's license shall be required of all
16persons who solicit orders for, offer to sell or offer to
17supply alcoholic liquor to retailers in the State of Illinois,
18or who offer to retailers to ship or cause to be shipped or to
19make contact with distillers, craft distillers, rectifiers,
20brewers or manufacturers or any other party within or without
21the State of Illinois in order that alcoholic liquors be
22shipped to a distributor, importing distributor or foreign
23importer, whether such solicitation or offer is consummated
24within or without the State of Illinois.
25 No holder of a retailer's license issued by the Illinois
26Liquor Control Commission shall purchase or receive any

HB2620 Enrolled- 87 -LRB102 11692 SPS 17026 b
1alcoholic liquor, the order for which was solicited or offered
2for sale to such retailer by a broker unless the broker is the
3holder of a valid broker's license.
4 The broker shall, upon the acceptance by a retailer of the
5broker's solicitation of an order or offer to sell or supply or
6deliver or have delivered alcoholic liquors, promptly forward
7to the Illinois Liquor Control Commission a notification of
8said transaction in such form as the Commission may by
9regulations prescribe.
10 (ii) A broker's license shall be required of a person
11within this State, other than a retail licensee, who, for a fee
12or commission, promotes, solicits, or accepts orders for
13alcoholic liquor, for use or consumption and not for resale,
14to be shipped from this State and delivered to residents
15outside of this State by an express company, common carrier,
16or contract carrier. This Section does not apply to any person
17who promotes, solicits, or accepts orders for wine as
18specifically authorized in Section 6-29 of this Act.
19 A broker's license under this subsection (l) shall not
20entitle the holder to buy or sell any alcoholic liquors for his
21own account or to take or deliver title to such alcoholic
22liquors.
23 This subsection (l) shall not apply to distributors,
24employees of distributors, or employees of a manufacturer who
25has registered the trademark, brand or name of the alcoholic
26liquor pursuant to Section 6-9 of this Act, and who regularly

HB2620 Enrolled- 88 -LRB102 11692 SPS 17026 b
1sells such alcoholic liquor in the State of Illinois only to
2its registrants thereunder.
3 Any agent, representative, or person subject to
4registration pursuant to subsection (a-1) of this Section
5shall not be eligible to receive a broker's license.
6 (m) A non-resident dealer's license shall permit such
7licensee to ship into and warehouse alcoholic liquor into this
8State from any point outside of this State, and to sell such
9alcoholic liquor to Illinois licensed foreign importers and
10importing distributors and to no one else in this State;
11provided that (i) said non-resident dealer shall register with
12the Illinois Liquor Control Commission each and every brand of
13alcoholic liquor which it proposes to sell to Illinois
14licensees during the license period, (ii) it shall comply with
15all of the provisions of Section 6-9 hereof with respect to
16registration of such Illinois licensees as may be granted the
17right to sell such brands at wholesale by duly filing such
18registration statement, thereby authorizing the non-resident
19dealer to proceed to sell such brands at wholesale, and (iii)
20the non-resident dealer shall comply with the provisions of
21Sections 6-5 and 6-6 of this Act to the same extent that these
22provisions apply to manufacturers. No person licensed as a
23non-resident dealer shall be granted a distributor's or
24importing distributor's license.
25 (n) A brew pub license shall allow the licensee to only (i)
26manufacture up to 155,000 gallons of beer per year only on the

HB2620 Enrolled- 89 -LRB102 11692 SPS 17026 b
1premises specified in the license, (ii) make sales of the beer
2manufactured on the premises or, with the approval of the
3Commission, beer manufactured on another brew pub licensed
4premises that is wholly owned and operated by the same
5licensee to importing distributors, distributors, and to
6non-licensees for use and consumption, (iii) store the beer
7upon the premises, (iv) sell and offer for sale at retail from
8the licensed premises for off-premises consumption no more
9than 155,000 gallons per year so long as such sales are only
10made in-person, (v) sell and offer for sale at retail for use
11and consumption on the premises specified in the license any
12form of alcoholic liquor purchased from a licensed distributor
13or importing distributor, (vi) with the prior approval of the
14Commission, annually transfer no more than 155,000 gallons of
15beer manufactured on the premises to a licensed brew pub
16wholly owned and operated by the same licensee, and (vii)
17notwithstanding item (i) of this subsection, brew pubs wholly
18owned and operated by the same licensee may combine each
19location's production limit of 155,000 gallons of beer per
20year and allocate the aggregate total between the wholly
21owned, operated, and licensed locations.
22 A brew pub licensee shall not under any circumstance sell
23or offer for sale beer manufactured by the brew pub licensee to
24retail licensees.
25 A person who holds a class 2 brewer license may
26simultaneously hold a brew pub license if the class 2 brewer

HB2620 Enrolled- 90 -LRB102 11692 SPS 17026 b
1(i) does not, under any circumstance, sell or offer for sale
2beer 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
5gallons of beer per year, including the beer manufactured at
6the brew pub; and (iv) is not a member of or affiliated with,
7directly or indirectly, a manufacturer that produces more than
83,720,000 gallons of beer per year or any other alcoholic
9liquor.
10 Notwithstanding any other provision of this Act, a
11licensed brewer, class 2 brewer, or non-resident dealer who
12before July 1, 2015 manufactured less than 3,720,000 gallons
13of beer per year and held a brew pub license on or before July
141, 2015 may (i) continue to qualify for and hold that brew pub
15license for the licensed premises and (ii) manufacture more
16than 3,720,000 gallons of beer per year and continue to
17qualify for and hold that brew pub license if that brewer,
18class 2 brewer, or non-resident dealer does not simultaneously
19hold a class 1 brewer license and is not a member of or
20affiliated with, directly or indirectly, a manufacturer that
21produces more than 3,720,000 gallons of beer per year or that
22produces any other alcoholic liquor.
23 A brew pub licensee may apply for a class 3 brewer license
24and upon: (i) meeting all applicable qualifications of this
25Act, and relinquishing all commonly owned brew pub or retail
26licenses shall be issued a class 3 brewer license. Nothing in

HB2620 Enrolled- 91 -LRB102 11692 SPS 17026 b
1this Act shall prohibit the issuance of a class 3 brewer
2license 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,
13the class 3 brewer license shall expire on the same date as the
14existing brew pub license and the State Commission shall not
15require a class 3 brewer licensee to obtain a brewer license,
16or in the alternative to pay a fee for a brewer license, until
17the date the brew pub license of the applicant would have
18expired.
19 (o) A caterer retailer license shall allow the holder to
20serve alcoholic liquors as an incidental part of a food
21service that serves prepared meals which excludes the serving
22of snacks as the primary meal, either on or off-site whether
23licensed or unlicensed. A caterer retailer license shall allow
24the holder, a distributor, or an importing distributor to
25transfer any inventory to and from the holder's retail
26premises and shall allow the holder to purchase alcoholic

HB2620 Enrolled- 92 -LRB102 11692 SPS 17026 b
1liquor from a distributor or importing distributor to be
2delivered directly to an off-site event.
3 Nothing in this Act prohibits a distributor or importing
4distributor from offering credit or a refund for unused,
5salable beer to a holder of a caterer retailer license or a
6caterer retailer licensee from accepting a credit or refund
7for unused, salable beer, in the event an act of God is the
8sole reason an off-site event is cancelled and if: (i) the
9holder of a caterer retailer license has not transferred
10alcoholic liquor from its caterer retailer premises to an
11off-site location; (ii) the distributor or importing
12distributor offers the credit or refund for the unused,
13salable beer that it delivered to the off-site premises and
14not for any unused, salable beer that the distributor or
15importing distributor delivered to the caterer retailer's
16premises; and (iii) the unused, salable beer would likely
17spoil if transferred to the caterer retailer's premises. A
18caterer retailer license shall allow the holder to transfer
19any inventory from any off-site location to its caterer
20retailer premises at the conclusion of an off-site event or
21engage a distributor or importing distributor to transfer any
22inventory from any off-site location to its caterer retailer
23premises at the conclusion of an off-site event, provided that
24the distributor or importing distributor issues bona fide
25charges to the caterer retailer licensee for fuel, labor, and
26delivery and the distributor or importing distributor collects

HB2620 Enrolled- 93 -LRB102 11692 SPS 17026 b
1payment from the caterer retailer licensee prior to the
2distributor or importing distributor transferring inventory to
3the caterer retailer premises.
4 For purposes of this subsection (o), an "act of God" means
5an unforeseeable event, such as a rain or snow storm, hail, a
6flood, or a similar event, that is the sole cause of the
7cancellation of an off-site, outdoor event.
8 (p) An auction liquor license shall allow the licensee to
9sell and offer for sale at auction wine and spirits for use or
10consumption, or for resale by an Illinois liquor licensee in
11accordance with provisions of this Act. An auction liquor
12license will be issued to a person and it will permit the
13auction liquor licensee to hold the auction anywhere in the
14State. An auction liquor license must be obtained for each
15auction at least 14 days in advance of the auction date.
16 (q) A special use permit license shall allow an Illinois
17licensed retailer to transfer a portion of its alcoholic
18liquor inventory from its retail licensed premises to the
19premises specified in the license hereby created; to purchase
20alcoholic liquor from a distributor or importing distributor
21to be delivered directly to the location specified in the
22license hereby created; and to sell or offer for sale at
23retail, only in the premises specified in the license hereby
24created, the transferred or delivered alcoholic liquor for use
25or consumption, but not for resale in any form. A special use
26permit license may be granted for the following time periods:

HB2620 Enrolled- 94 -LRB102 11692 SPS 17026 b
1one day or less; 2 or more days to a maximum of 15 days per
2location in any 12-month period. An applicant for the special
3use permit license must also submit with the application proof
4satisfactory to the State Commission that the applicant will
5provide dram shop liability insurance to the maximum limits
6and have local authority approval.
7 A special use permit license shall allow the holder to
8transfer any inventory from the holder's special use premises
9to its retail premises at the conclusion of the special use
10event or engage a distributor or importing distributor to
11transfer any inventory from the holder's special use premises
12to its retail premises at the conclusion of an off-site event,
13provided that the distributor or importing distributor issues
14bona fide charges to the special use permit licensee for fuel,
15labor, and delivery and the distributor or importing
16distributor collects payment from the retail licensee prior to
17the distributor or importing distributor transferring
18inventory to the retail premises.
19 Nothing in this Act prohibits a distributor or importing
20distributor from offering credit or a refund for unused,
21salable beer to a special use permit licensee or a special use
22permit licensee from accepting a credit or refund for unused,
23salable beer at the conclusion of the event specified in the
24license if: (i) the holder of the special use permit license
25has not transferred alcoholic liquor from its retail licensed
26premises to the premises specified in the special use permit

HB2620 Enrolled- 95 -LRB102 11692 SPS 17026 b
1license; (ii) the distributor or importing distributor offers
2the credit or refund for the unused, salable beer that it
3delivered to the premises specified in the special use permit
4license and not for any unused, salable beer that the
5distributor or importing distributor delivered to the
6retailer's premises; and (iii) the unused, salable beer would
7likely spoil if transferred to the retailer premises.
8 (r) A winery shipper's license shall allow a person with a
9first-class or second-class wine manufacturer's license, a
10first-class or second-class wine-maker's license, or a limited
11wine manufacturer's license or who is licensed to make wine
12under the laws of another state to ship wine made by that
13licensee directly to a resident of this State who is 21 years
14of age or older for that resident's personal use and not for
15resale. Prior to receiving a winery shipper's license, an
16applicant for the license must provide the Commission with a
17true copy of its current license in any state in which it is
18licensed as a manufacturer of wine. An applicant for a winery
19shipper's license must also complete an application form that
20provides any other information the Commission deems necessary.
21The application form shall include all addresses from which
22the applicant for a winery shipper's license intends to ship
23wine, including the name and address of any third party,
24except for a common carrier, authorized to ship wine on behalf
25of the manufacturer. The application form shall include an
26acknowledgement consenting to the jurisdiction of the

HB2620 Enrolled- 96 -LRB102 11692 SPS 17026 b
1Commission, the Illinois Department of Revenue, and the courts
2of this State concerning the enforcement of this Act and any
3related laws, rules, and regulations, including authorizing
4the Department of Revenue and the Commission to conduct audits
5for the purpose of ensuring compliance with Public Act 95-634,
6and an acknowledgement that the wine manufacturer is in
7compliance with Section 6-2 of this Act. Any third party,
8except for a common carrier, authorized to ship wine on behalf
9of a first-class or second-class wine manufacturer's licensee,
10a first-class or second-class wine-maker's licensee, a limited
11wine manufacturer's licensee, or a person who is licensed to
12make wine under the laws of another state shall also be
13disclosed by the winery shipper's licensee, and a copy of the
14written appointment of the third-party wine provider, except
15for a common carrier, to the wine manufacturer shall be filed
16with the State Commission as a supplement to the winery
17shipper's license application or any renewal thereof. The
18winery shipper's license holder shall affirm under penalty of
19perjury, as part of the winery shipper's license application
20or renewal, that he or she only ships wine, either directly or
21indirectly through a third-party provider, from the licensee's
22own production.
23 Except for a common carrier, a third-party provider
24shipping wine on behalf of a winery shipper's license holder
25is the agent of the winery shipper's license holder and, as
26such, a winery shipper's license holder is responsible for the

HB2620 Enrolled- 97 -LRB102 11692 SPS 17026 b
1acts and omissions of the third-party provider acting on
2behalf of the license holder. A third-party provider, except
3for a common carrier, that engages in shipping wine into
4Illinois on behalf of a winery shipper's license holder shall
5consent to the jurisdiction of the State Commission and the
6State. Any third-party, except for a common carrier, holding
7such an appointment shall, by February 1 of each calendar year
8and upon request by the State Commission or the Department of
9Revenue, file with the State Commission a statement detailing
10each shipment made to an Illinois resident. The statement
11shall include the name and address of the third-party provider
12filing the statement, the time period covered by the
13statement, 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.
18If the Department of Revenue or the State Commission requests
19a statement under this paragraph, the third-party provider
20must provide that statement no later than 30 days after the
21request is made. Any books, records, supporting papers, and
22documents containing information and data relating to a
23statement under this paragraph shall be kept and preserved for
24a period of 3 years, unless their destruction sooner is
25authorized, in writing, by the Director of Revenue, and shall
26be open and available to inspection by the Director of Revenue

HB2620 Enrolled- 98 -LRB102 11692 SPS 17026 b
1or the State Commission or any duly authorized officer, agent,
2or employee of the State Commission or the Department of
3Revenue, at all times during business hours of the day. Any
4person who violates any provision of this paragraph or any
5rule of the State Commission for the administration and
6enforcement of the provisions of this paragraph is guilty of a
7Class C misdemeanor. In case of a continuing violation, each
8day's continuance thereof shall be a separate and distinct
9offense.
10 The State Commission shall adopt rules as soon as
11practicable to implement the requirements of Public Act 99-904
12and shall adopt rules prohibiting any such third-party
13appointment of a third-party provider, except for a common
14carrier, that has been deemed by the State Commission to have
15violated the provisions of this Act with regard to any winery
16shipper licensee.
17 A winery shipper licensee must pay to the Department of
18Revenue the State liquor gallonage tax under Section 8-1 for
19all wine that is sold by the licensee and shipped to a person
20in this State. For the purposes of Section 8-1, a winery
21shipper licensee shall be taxed in the same manner as a
22manufacturer of wine. A licensee who is not otherwise required
23to register under the Retailers' Occupation Tax Act must
24register under the Use Tax Act to collect and remit use tax to
25the Department of Revenue for all gallons of wine that are sold
26by the licensee and shipped to persons in this State. If a

HB2620 Enrolled- 99 -LRB102 11692 SPS 17026 b
1licensee fails to remit the tax imposed under this Act in
2accordance with the provisions of Article VIII of this Act,
3the winery shipper's license shall be revoked in accordance
4with the provisions of Article VII of this Act. If a licensee
5fails to properly register and remit tax under the Use Tax Act
6or the Retailers' Occupation Tax Act for all wine that is sold
7by the winery shipper and shipped to persons in this State, the
8winery shipper's license shall be revoked in accordance with
9the provisions of Article VII of this Act.
10 A winery shipper licensee must collect, maintain, and
11submit to the Commission on a semi-annual basis the total
12number of cases per resident of wine shipped to residents of
13this State. A winery shipper licensed under this subsection
14(r) must comply with the requirements of Section 6-29 of this
15Act.
16 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
17Section 3-12, the State Commission may receive, respond to,
18and investigate any complaint and impose any of the remedies
19specified in paragraph (1) of subsection (a) of Section 3-12.
20 As used in this subsection, "third-party provider" means
21any entity that provides fulfillment house services, including
22warehousing, packaging, distribution, order processing, or
23shipment of wine, but not the sale of wine, on behalf of a
24licensed winery shipper.
25 (s) A craft distiller tasting permit license shall allow
26an Illinois licensed class 1 craft distiller or class 2 craft

HB2620 Enrolled- 100 -LRB102 11692 SPS 17026 b
1distiller to transfer a portion of its alcoholic liquor
2inventory from its class 1 craft distiller or class 2 craft
3distiller licensed premises to the premises specified in the
4license hereby created and to conduct a sampling, only in the
5premises specified in the license hereby created, of the
6transferred alcoholic liquor in accordance with subsection (c)
7of Section 6-31 of this Act. The transferred alcoholic liquor
8may not be sold or resold in any form. An applicant for the
9craft distiller tasting permit license must also submit with
10the application proof satisfactory to the State Commission
11that the applicant will provide dram shop liability insurance
12to the maximum limits and have local authority approval.
13 (t) A brewer warehouse permit may be issued to the holder
14of a class 1 brewer license or a class 2 brewer license. If the
15holder of the permit is a class 1 brewer licensee, the brewer
16warehouse permit shall allow the holder to store or warehouse
17up to 930,000 gallons of tax-determined beer manufactured by
18the holder of the permit at the premises specified on the
19permit. If the holder of the permit is a class 2 brewer
20licensee, the brewer warehouse permit shall allow the holder
21to store or warehouse up to 3,720,000 gallons of
22tax-determined beer manufactured by the holder of the permit
23at the premises specified on the permit. Sales to
24non-licensees are prohibited at the premises specified in the
25brewer warehouse permit.
26 (u) A distilling pub license shall allow the licensee to

HB2620 Enrolled- 101 -LRB102 11692 SPS 17026 b
1only (i) manufacture up to 5,000 gallons of spirits per year
2only on the premises specified in the license, (ii) make sales
3of the spirits manufactured on the premises or, with the
4approval of the State Commission, spirits manufactured on
5another distilling pub licensed premises that is wholly owned
6and operated by the same licensee to importing distributors
7and distributors and to non-licensees for use and consumption,
8(iii) store the spirits upon the premises, (iv) sell and offer
9for sale at retail from the licensed premises for off-premises
10consumption no more than 5,000 gallons per year so long as such
11sales are only made in-person, (v) sell and offer for sale at
12retail for use and consumption on the premises specified in
13the license any form of alcoholic liquor purchased from a
14licensed distributor or importing distributor, and (vi) with
15the prior approval of the State Commission, annually transfer
16no more than 5,000 gallons of spirits manufactured on the
17premises to a licensed distilling pub wholly owned and
18operated by the same licensee.
19 A distilling pub licensee shall not under any circumstance
20sell or offer for sale spirits manufactured by the distilling
21pub licensee to retail licensees.
22 A person who holds a class 2 craft distiller license may
23simultaneously hold a distilling pub license if the class 2
24craft distiller (i) does not, under any circumstance, sell or
25offer for sale spirits manufactured by the class 2 craft
26distiller to retail licensees; (ii) does not hold more than 3

HB2620 Enrolled- 102 -LRB102 11692 SPS 17026 b
1distilling pub licenses in this State; (iii) does not
2manufacture more than a combined 100,000 gallons of spirits
3per year, including the spirits manufactured at the distilling
4pub; and (iv) is not a member of or affiliated with, directly
5or indirectly, a manufacturer that produces more than 100,000
6gallons of spirits per year or any other alcoholic liquor.
7 (v) A craft distiller warehouse permit may be issued to
8the holder of a class 1 craft distiller or class 2 craft
9distiller license. The craft distiller warehouse permit shall
10allow the holder to store or warehouse up to 500,000 gallons of
11spirits manufactured by the holder of the permit at the
12premises specified on the permit. Sales to non-licensees are
13prohibited at the premises specified in the craft distiller
14warehouse permit.
15 (w) A beer showcase permit license shall allow an
16Illinois-licensed distributor to transfer a portion of its
17beer inventory from its licensed premises to the premises
18specified in the beer showcase permit license, and, in the
19case of a class 3 brewer, transfer only beer the class 3 brewer
20manufactures from its licensed premises to the premises
21specified in the beer showcase permit license; and to sell or
22offer for sale at retail, only in the premises specified in the
23beer showcase permit license, the transferred or delivered
24beer for on or off premise consumption, but not for resale in
25any form and to sell to non-licensees not more than 96 fluid
26ounces of beer per person. A beer showcase permit license may

HB2620 Enrolled- 103 -LRB102 11692 SPS 17026 b
1be granted for the following time periods: one day or less; or
22 or more days to a maximum of 15 days per location in any
312-month period. An applicant for a beer showcase permit
4license must also submit with the application proof
5satisfactory to the State Commission that the applicant will
6provide dram shop liability insurance to the maximum limits
7and have local authority approval. The State Commission shall
8require the beer showcase applicant to comply with Section
96-27.1.
10(Source: P.A. 100-17, eff. 6-30-17; 100-201, eff. 8-18-17;
11100-816, eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff.
128-23-18; 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; 101-81,
13eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. 8-23-19;
14101-615, 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
17herein, at the time application is made to the State
18Commission for a license of any class, the applicant shall pay
19to the State Commission the fee hereinafter provided for the
20kind of license applied for.
21 The fee for licenses issued by the State Commission shall
22be as follows:
23OnlineInitial
24renewallicense
25 or

HB2620 Enrolled- 104 -LRB102 11692 SPS 17026 b
1 non-online
2 renewal
3 For a manufacturer's license:
4 Class 1. Distiller .................$4,000$5,000
5 Class 2. Rectifier .................4,000 5,000
6 Class 3. Brewer ....................1,200 1,500
7 Class 4. First-class Wine
8 Manufacturer ...................1,200 7501,500 900
9 Class 5. Second-class
10 Wine Manufacturer ..............1,500 1,750
11 Class 6. First-class wine-maker ....1,200 750 1,500 900
12 Class 7. Second-class wine-maker ...1,500 1,750
13 Class 8. Limited Wine
14 Manufacturer....................250 350
15 Class 9. Craft Distiller............ $2,000 $2,500
16 Class 10. Class 1 Craft Distiller... 50 75
17 Class 11. Class 2 Craft Distiller... 75 100
18 Class 12. Class 1 Brewer............50 75
19 Class 13. Class 2 Brewer............ 75 100
20 Class 14. Class 3 Brewer............ 25 50
21 For a Brew Pub License..............1,2001,500
22 For a Distilling Pub License........ 1,200 1,500
23 For a caterer retailer's license....350 500
24 For a foreign importer's license ...25 25
25 For an importing distributor's
26 license.........................2525

HB2620 Enrolled- 105 -LRB102 11692 SPS 17026 b
1 For a distributor's license
2 (11,250,000 gallons
3 or over)........................1,4502,200
4 For a distributor's license
5 (over 4,500,000 gallons, but
6 under 11,250,000 gallons)....... 9501,450
7 For a distributor's license
8 (4,500,000 gallons or under)....300450
9 For a non-resident dealer's license
10 (500,000 gallons or over)
11 or with self-distribution
12 privileges ......................1,200 1,500
13 For a non-resident dealer's license
14 (under 500,000 gallons) ........250 350
15 For a wine-maker's premises
16 license ........................250500
17 For a winery shipper's license
18 (under 250,000 gallons).........200 350
19 For a winery shipper's license
20 (250,000 or over, but
21 under 500,000 gallons)..........7501,000
22 For a winery shipper's license
23 (500,000 gallons or over).......1,200 1,500
24 For a wine-maker's premises
25 license, second location .......500 1,000
26 For a wine-maker's premises

HB2620 Enrolled- 106 -LRB102 11692 SPS 17026 b
1 license, third location ........5001,000
2 For a retailer's license ...........600 750
3 For a special event retailer's
4 license, (not-for-profit) ......25 25
5 For a beer showcase permit license,
6 one day only .................... 100 150
7 2 days or more .................. 150 250
8 For a special use permit license,
9 one day only ...................100 150
10 2 days or more .................150 250
11 For a railroad license .............100 150
12 For a boat license .................500 1,000
13 For an airplane license, times the
14 licensee's maximum number of
15 aircraft in flight, serving
16 liquor over the State at any
17 given time, which either
18 originate, terminate, or make
19 an intermediate stop in
20 the State.......................100150
21 For a non-beverage user's license:
22 Class 1 ........................2424
23 Class 2 ........................6060
24 Class 3 ........................120120
25 Class 4 ........................240240
26 Class 5 ........................600600

HB2620 Enrolled- 107 -LRB102 11692 SPS 17026 b
1 For a broker's license .............750 1,000
2 For an auction liquor license ......100 150
3 For a homebrewer special
4 event permit....................2525
5 For a craft distiller
6 tasting permit..................25 25
7 For a BASSET trainer license........ 300 350
8 For a tasting representative
9 license.........................200300
10 For a brewer warehouse permit....... 2525
11 For a craft distiller
12 warehouse permit...............25 25
13 Fees collected under this Section shall be paid into the
14Dram Shop Fund. On and after July 1, 2003 and until June 30,
152016, of the funds received for a retailer's license, in
16addition to the first $175, an additional $75 shall be paid
17into the Dram Shop Fund, and $250 shall be paid into the
18General Revenue Fund. On and after June 30, 2016, one-half of
19the funds received for a retailer's license shall be paid into
20the Dram Shop Fund and one-half of the funds received for a
21retailer's license shall be paid into the General Revenue
22Fund. Beginning June 30, 1990 and on June 30 of each subsequent
23year through June 29, 2003, any balance over $5,000,000
24remaining in the Dram Shop Fund shall be credited to State
25liquor licensees and applied against their fees for State
26liquor licenses for the following year. The amount credited to

HB2620 Enrolled- 108 -LRB102 11692 SPS 17026 b
1each licensee shall be a proportion of the balance in the Dram
2Fund that is the same as the proportion of the license fee paid
3by the licensee under this Section for the period in which the
4balance was accumulated to the aggregate fees paid by all
5licensees during that period.
6 No fee shall be paid for licenses issued by the State
7Commission 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;
17101-482, eff. 8-23-19; 101-615, eff. 12-20-19; revised
188-19-20.)
19 (235 ILCS 5/6-4) (from Ch. 43, par. 121)
20 Sec. 6-4. (a) No person licensed by any licensing
21authority as a distiller, or a wine manufacturer, or any
22subsidiary or affiliate thereof, or any officer, associate,
23member, partner, representative, employee, agent or
24shareholder owning more than 5% of the outstanding shares of
25such person shall be issued an importing distributor's or

HB2620 Enrolled- 109 -LRB102 11692 SPS 17026 b
1distributor's license, nor shall any person licensed by any
2licensing authority as an importing distributor, distributor
3or retailer, or any subsidiary or affiliate thereof, or any
4officer or associate, member, partner, representative,
5employee, agent or shareholder owning more than 5% of the
6outstanding shares of such person be issued a distiller's
7license, a craft distiller's license, or a wine manufacturer's
8license; and no person or persons licensed as a distiller,
9craft distiller, class 1 craft distiller, or class 2 craft
10distiller by any licensing authority shall have any interest,
11directly or indirectly, with such distributor or importing
12distributor.
13 However, an importing distributor or distributor, which on
14January 1, 1985 is owned by a brewer, or any subsidiary or
15affiliate thereof or any officer, associate, member, partner,
16representative, employee, agent or shareholder owning more
17than 5% of the outstanding shares of the importing distributor
18or distributor referred to in this paragraph, may own or
19acquire an ownership interest of more than 5% of the
20outstanding shares of a wine manufacturer and be issued a wine
21manufacturer's license by any licensing authority.
22 (b) The foregoing provisions shall not apply to any person
23licensed by any licensing authority as a distiller or wine
24manufacturer, or to any subsidiary or affiliate of any
25distiller or wine manufacturer who shall have been heretofore
26licensed by the State Commission as either an importing

HB2620 Enrolled- 110 -LRB102 11692 SPS 17026 b
1distributor or distributor during the annual licensing period
2expiring June 30, 1947, and shall actually have made sales
3regularly to retailers.
4 (c) Provided, however, that in such instances where a
5distributor's or importing distributor's license has been
6issued to any distiller or wine manufacturer or to any
7subsidiary or affiliate of any distiller or wine manufacturer
8who has, during the licensing period ending June 30, 1947,
9sold or distributed as such licensed distributor or importing
10distributor alcoholic liquors and wines to retailers, such
11distiller or wine manufacturer or any subsidiary or affiliate
12of any distiller or wine manufacturer holding such
13distributor's or importing distributor's license may continue
14to sell or distribute to retailers such alcoholic liquors and
15wines which are manufactured, distilled, processed or marketed
16by distillers and wine manufacturers whose products it sold or
17distributed to retailers during the whole or any part of its
18licensing periods; and such additional brands and additional
19products may be added to the line of such distributor or
20importing distributor, provided, that such brands and such
21products were not sold or distributed by any distributor or
22importing distributor licensed by the State Commission during
23the licensing period ending June 30, 1947, but can not sell or
24distribute to retailers any other alcoholic liquors or wines.
25 (d) It shall be unlawful for any distiller licensed
26anywhere to have any stock ownership or interest in any

HB2620 Enrolled- 111 -LRB102 11692 SPS 17026 b
1distributor's or importing distributor's license wherein any
2other person has an interest therein who is not a distiller and
3does not own more than 5% of any stock in any distillery.
4Nothing herein contained shall apply to such distillers or
5their subsidiaries or affiliates, who had a distributor's or
6importing distributor's license during the licensing period
7ending June 30, 1947, which license was owned in whole by such
8distiller, or subsidiaries or affiliates of such distiller.
9 (e) Any person licensed as a brewer, class 1 brewer, or
10class 2 brewer shall be permitted to sell on the licensed
11premises to non-licensees for on or off-premises consumption
12for the premises in which he or she actually conducts such
13business: (i) beer manufactured by the brewer, class 1 brewer,
14or class 2 brewer, or class 3 brewer; (ii) beer manufactured by
15any other brewer, class 1 brewer, or class 2 brewer, or class 3
16brewer; and (iii) cider or mead. Any person licensed as a class
173 brewer shall be permitted to sell on the licensed premises to
18non-licensees for on or off premises consumption for the
19premises 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,
22class 2 brewer, or class 3 brewer; and (iii) cider, wine, and
23spirits. All products sold under this subsection that are not
24manufactured on premises must be purchased through a licensed
25distributor, importing distributor, or manufacturer with
26self-distribution privileges. Such sales shall be limited to

HB2620 Enrolled- 112 -LRB102 11692 SPS 17026 b
1on-premises, in-person sales only, for lawful consumption on
2or off premises. Such authorization shall be considered a
3privilege granted by the brewer license and, other than a
4manufacturer of beer as stated above, no manufacturer or
5distributor or importing distributor, excluding airplane
6licensees exercising powers provided in paragraph (i) of
7Section 5-1 of this Act, or any subsidiary or affiliate
8thereof, or any officer, associate, member, partner,
9representative, employee or agent, or shareholder shall be
10issued a retailer's license, nor shall any person having a
11retailer's license, excluding airplane licensees exercising
12powers provided in paragraph (i) of Section 5-1 of this Act, or
13any subsidiary or affiliate thereof, or any officer,
14associate, member, partner, representative or agent, or
15shareholder be issued a manufacturer's license or importing
16distributor's license.
17 A manufacturer of beer that imports or transfers beer into
18this 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
20is authorized by this Section to sell beer to non-licensees
21shall not sell beer to non-licensees from more than 3 total
22brewer or commonly owned brew pub licensed locations in this
23State. The class 1 or class 2 brewer shall designate to the
24State Commission the brewer or brew pub locations from which
25it will sell beer to non-licensees.
26 A person licensed as a class 1 craft distiller or a class 2

HB2620 Enrolled- 113 -LRB102 11692 SPS 17026 b
1craft distiller, including a person who holds more than one
2class 1 craft distiller or class 2 craft distiller license,
3not affiliated with any other person manufacturing spirits may
4be authorized by the State Commission to sell (1) up to 5,000
5gallons of spirits produced by the person to non-licensees for
6on or off-premises consumption for the premises in which he or
7she actually conducts business permitting only the retail sale
8of spirits manufactured at such premises and (2) vermouth
9purchased through a licensed distributor for on-premises
10consumption. Such sales shall be limited to on-premises,
11in-person sales only, for lawful consumption on or off
12premises, and such authorization shall be considered a
13privilege granted by the class 1 craft distiller or class 2
14craft distiller license. A class 1 craft distiller or class 2
15craft distiller licensed for retail sale shall secure liquor
16liability insurance coverage in an amount at least equal to
17the maximum liability amounts set forth in subsection (a) of
18Section 6-21 of this Act.
19 A class 1 craft distiller or class 2 craft distiller
20license holder shall not deliver any alcoholic liquor to any
21non-licensee off the licensed premises. A class 1 craft
22distiller or class 2 craft distiller shall affirm in its
23annual license application that it does not produce more than
2450,000 or 100,000 gallons of distilled spirits annually,
25whichever is applicable, and that the craft distiller does not
26sell more than 5,000 gallons of spirits to non-licensees for

HB2620 Enrolled- 114 -LRB102 11692 SPS 17026 b
1on or off-premises consumption. In the application, which
2shall be sworn under penalty of perjury, the class 1 craft
3distiller or class 2 craft distiller shall state the volume of
4production and sales for each year since the class 1 craft
5distiller's or class 2 craft distiller's establishment.
6 A person who holds a class 1 craft distiller or class 2
7craft distiller license and is authorized by this Section to
8sell spirits to non-licensees shall not sell spirits to
9non-licensees from more than 3 total distillery or commonly
10owned distilling pub licensed locations in this State. The
11class 1 craft distiller or class 2 craft distiller shall
12designate to the State Commission the distillery or distilling
13pub locations from which it will sell spirits to
14non-licensees.
15 (f) (Blank).
16 (g) Notwithstanding any of the foregoing prohibitions, a
17limited wine manufacturer may sell at retail at its
18manufacturing site for on or off premises consumption and may
19sell to distributors. A limited wine manufacturer licensee
20shall secure liquor liability insurance coverage in an amount
21at least equal to the maximum liability amounts set forth in
22subsection (a) of Section 6-21 of this Act.
23 (h) The changes made to this Section by Public Act 99-47
24shall not diminish or impair the rights of any person, whether
25a distiller, wine manufacturer, agent, or affiliate thereof,
26who requested in writing and submitted documentation to the

HB2620 Enrolled- 115 -LRB102 11692 SPS 17026 b
1State Commission on or before February 18, 2015 to be approved
2for a retail license pursuant to what has heretofore been
3subsection (f); provided that, on or before that date, the
4State Commission considered the intent of that person to apply
5for the retail license under that subsection and, by recorded
6vote, the State Commission approved a resolution indicating
7that such a license application could be lawfully approved
8upon that person duly filing a formal application for a retail
9license and if that person, within 90 days of the State
10Commission appearance and recorded vote, first filed an
11application with the appropriate local commission, which
12application was subsequently approved by the appropriate local
13commission prior to consideration by the State Commission of
14that person's application for a retail license. It is further
15provided that the State Commission may approve the person's
16application for a retail license or renewals of such license
17if such person continues to diligently adhere to all
18representations made in writing to the State Commission on or
19before February 18, 2015, or thereafter, or in the affidavit
20filed by that person with the State Commission to support the
21issuance of a retail license and to abide by all applicable
22laws and duly adopted rules.
23 (i) Notwithstanding any other provision of this Act, the
24common ownership of a brewery, winery, or a distillery shall
25not authorize the grant of and aggregation of retail
26privileges granted to any person or licensees in subsection

HB2620 Enrolled- 116 -LRB102 11692 SPS 17026 b
1(e). Any person or licensee with common ownership in a
2brewery, winery, or a distillery shall be limited to the
3retail privileges granted to only one of the commonly owned
4brewery, winery, or distillery. The State Commission is hereby
5authorized to restrict the locations of any commonly owned
6brewery, winery, or distillery to prevent the expansion of
7retail privileges, including, without limitation, restricting
8a commonly owned brewery, winery, or distillery from operating
9in adjacent licensed premises or restricting self-distribution
10privileges.
11(Source: P.A. 100-201, eff. 8-18-17; 100-816, eff. 8-13-18;
12100-885, eff. 8-14-18; 101-81, eff. 7-12-19; 101-482, eff.
138-23-19; 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
16is unlawful for any person having a retailer's license or any
17officer, associate, member, representative or agent of such
18licensee to accept, receive or borrow money, or anything else
19of value, or accept or receive credit (other than
20merchandising credit in the ordinary course of business for a
21period not to exceed 30 days) directly or indirectly from any
22manufacturer, importing distributor or distributor of
23alcoholic liquor, or from any person connected with or in any
24way representing, or from any member of the family of, such
25manufacturer, importing distributor, distributor or

HB2620 Enrolled- 117 -LRB102 11692 SPS 17026 b
1wholesaler, or from any stockholders in any corporation
2engaged in manufacturing, distributing or wholesaling of such
3liquor, or from any officer, manager, agent or representative
4of said manufacturer. Except as provided below, it is unlawful
5for any manufacturer or distributor or importing distributor
6to give or lend money or anything of value, or otherwise loan
7or extend credit (except such merchandising credit) directly
8or indirectly to any retail licensee or to the manager,
9representative, agent, officer or director of such licensee. A
10manufacturer, distributor or importing distributor may furnish
11free advertising, posters, signs, brochures, hand-outs, or
12other promotional devices or materials to any unit of
13government owning or operating any auditorium, exhibition
14hall, recreation facility or other similar facility holding a
15retailer's license, provided that the primary purpose of such
16promotional devices or materials is to promote public events
17being held at such facility. A unit of government owning or
18operating such a facility holding a retailer's license may
19accept such promotional devices or materials designed
20primarily to promote public events held at the facility. No
21retail licensee delinquent beyond the 30 day period specified
22in this Section shall solicit, accept or receive credit,
23purchase or acquire alcoholic liquors, directly or indirectly
24from any other licensee, and no manufacturer, distributor or
25importing distributor shall knowingly grant or extend credit,
26sell, furnish or supply alcoholic liquors to any such

HB2620 Enrolled- 118 -LRB102 11692 SPS 17026 b
1delinquent retail licensee; provided that the purchase price
2of all beer sold to a retail licensee shall be paid by the
3retail licensee in cash on or before delivery of the beer, and
4unless the purchase price payable by a retail licensee for
5beer sold to him in returnable bottles shall expressly include
6a charge for the bottles and cases, the retail licensee shall,
7on or before delivery of such beer, pay the seller in cash a
8deposit in an amount not less than the deposit required to be
9paid by the distributor to the brewer; but where the brewer
10sells direct to the retailer, the deposit shall be an amount no
11less than that required by the brewer from his own
12distributors; and provided further, that in no instance shall
13this deposit be less than 50 cents for each case of beer in
14pint or smaller bottles and 60 cents for each case of beer in
15quart or half-gallon bottles; and provided further, that the
16purchase price of all beer sold to an importing distributor or
17distributor shall be paid by such importing distributor or
18distributor in cash on or before the 15th day (Sundays and
19holidays excepted) after delivery of such beer to such
20purchaser; and unless the purchase price payable by such
21importing distributor or distributor for beer sold in
22returnable bottles and cases shall expressly include a charge
23for the bottles and cases, such importing distributor or
24distributor shall, on or before the 15th day (Sundays and
25holidays excepted) after delivery of such beer to such
26purchaser, pay the seller in cash a required amount as a

HB2620 Enrolled- 119 -LRB102 11692 SPS 17026 b
1deposit to assure the return of such bottles and cases.
2Nothing herein contained shall prohibit any licensee from
3crediting or refunding to a purchaser the actual amount of
4money paid for bottles, cases, kegs or barrels returned by the
5purchaser to the seller or paid by the purchaser as a deposit
6on bottles, cases, kegs or barrels, when such containers or
7packages are returned to the seller. Nothing herein contained
8shall prohibit any manufacturer, importing distributor or
9distributor from extending usual and customary credit for
10alcoholic liquor sold to customers or purchasers who live in
11or maintain places of business outside of this State when such
12alcoholic liquor is actually transported and delivered to such
13points outside of this State.
14 A manufacturer, distributor, or importing distributor may
15furnish free social media advertising to a retail licensee if
16the social media advertisement does not contain the retail
17price of any alcoholic liquor and the social media
18advertisement complies with any applicable rules or
19regulations issued by the Alcohol and Tobacco Tax and Trade
20Bureau of the United States Department of the Treasury. A
21manufacturer, distributor, or importing distributor may list
22the names of one or more unaffiliated retailers in the
23advertisement of alcoholic liquor through social media.
24Nothing in this Section shall prohibit a retailer from
25communicating with a manufacturer, distributor, or importing
26distributor on social media or sharing media on the social

HB2620 Enrolled- 120 -LRB102 11692 SPS 17026 b
1media of a manufacturer, distributor, or importing
2distributor. A retailer may request free social media
3advertising from a manufacturer, distributor, or importing
4distributor. Nothing in this Section shall prohibit a
5manufacturer, distributor, or importing distributor from
6sharing, reposting, or otherwise forwarding a social media
7post by a retail licensee, so long as the sharing, reposting,
8or forwarding of the social media post does not contain the
9retail price of any alcoholic liquor. No manufacturer,
10distributor, or importing distributor shall pay or reimburse a
11retailer, directly or indirectly, for any social media
12advertising services, except as specifically permitted in this
13Act. No retailer shall accept any payment or reimbursement,
14directly or indirectly, for any social media advertising
15services offered by a manufacturer, distributor, or importing
16distributor, except as specifically permitted in this Act. For
17the purposes of this Section, "social media" means a service,
18platform, or site where users communicate with one another and
19share media, such as pictures, videos, music, and blogs, with
20other users free of charge.
21 No right of action shall exist for the collection of any
22claim based upon credit extended to a distributor, importing
23distributor or retail licensee contrary to the provisions of
24this Section.
25 Every manufacturer, importing distributor and distributor
26shall submit or cause to be submitted, to the State

HB2620 Enrolled- 121 -LRB102 11692 SPS 17026 b
1Commission, in triplicate, not later than Thursday of each
2calendar week, a verified written list of the names and
3respective addresses of each retail licensee purchasing
4spirits or wine from such manufacturer, importing distributor
5or distributor who, on the first business day of that calendar
6week, was delinquent beyond the above mentioned permissible
7merchandising credit period of 30 days; or, if such is the
8fact, a verified written statement that no retail licensee
9purchasing spirits or wine was then delinquent beyond such
10permissible merchandising credit period of 30 days.
11 Every manufacturer, importing distributor and distributor
12shall submit or cause to be submitted, to the State
13Commission, in triplicate, a verified written list of the
14names and respective addresses of each previously reported
15delinquent retail licensee who has cured such delinquency by
16payment, which list shall be submitted not later than the
17close of the second full business day following the day such
18delinquency was so cured.
19 The written list of delinquent retail licensees shall be
20developed, administered, and maintained only by the State
21Commission. The State Commission shall notify each retail
22licensee that it has been placed on the delinquency list.
23Determinations of delinquency or nondelinquency shall be made
24only by the State Commission.
25 Such written verified reports required to be submitted by
26this Section shall be posted by the State Commission in each of

HB2620 Enrolled- 122 -LRB102 11692 SPS 17026 b
1its offices in places available for public inspection not
2later than the day following receipt thereof by the State
3Commission. The reports so posted shall constitute notice to
4every manufacturer, importing distributor and distributor of
5the information contained therein. Actual notice to
6manufacturers, importing distributors and distributors of the
7information contained in any such posted reports, however
8received, shall also constitute notice of such information.
9 The 30 day merchandising credit period allowed by this
10Section shall commence with the day immediately following the
11date of invoice and shall include all successive days
12including Sundays and holidays to and including the 30th
13successive day.
14 In addition to other methods allowed by law, payment by
15check during the period for which merchandising credit may be
16extended under the provisions of this Section shall be
17considered payment. All checks received in payment for
18alcoholic liquor shall be promptly deposited for collection. A
19post dated check or a check dishonored on presentation for
20payment shall not be deemed payment.
21 A retail licensee shall not be deemed to be delinquent in
22payment for any alleged sale to him of alcoholic liquor when
23there exists a bona fide dispute between such retailer and a
24manufacturer, importing distributor or distributor with
25respect to the amount of indebtedness existing because of such
26alleged sale. A retail licensee shall not be deemed to be

HB2620 Enrolled- 123 -LRB102 11692 SPS 17026 b
1delinquent under this provision and 11 Ill. Adm. Code 100.90
2until 30 days after the date on which the region in which the
3retail licensee is located enters Phase 4 of the Governor's
4Restore Illinois Plan as issued on May 5, 2020.
5 A delinquent retail licensee who engages in the retail
6liquor business at 2 or more locations shall be deemed to be
7delinquent with respect to each such location.
8 The license of any person who violates any provision of
9this Section shall be subject to suspension or revocation in
10the manner provided by this Act.
11 If any part or provision of this Article or the
12application thereof to any person or circumstances shall be
13adjudged invalid by a court of competent jurisdiction, such
14judgment shall be confined by its operation to the controversy
15in which it was mentioned and shall not affect or invalidate
16the remainder of this Article or the application thereof to
17any other person or circumstance and to this and the
18provisions 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
22services.
23 (a) In this Section:
24 "Reset" means the large-scale rearrangement of the
25alcoholic liquor products at a retailer's premises.

HB2620 Enrolled- 124 -LRB102 11692 SPS 17026 b
1 "Rotation" means moving newer, fresher products from a
2storage area to a point-of-sale area and the replenishing of
3the point-of-sale area with fresh products.
4 "Stocking" means the placing of alcoholic liquors where
5they are to be stored or where they are offered for sale.
6 (b) Manufacturers, distributors, or importing distributors
7may stock at retail licensed establishments alcoholic liquors
8they sell, provided that the alcoholic liquor products of
9other manufacturers, distributors, or importing distributors
10are not moved, altered, or disturbed. This stocking may be
11done one time either during the normal course of, 24 hours
12before, or within 24 hours after a regular sales call or one
13time either during the normal course of, 24 hours before, or
14within 24 hours after delivery to the retailer. The stocking
15is considered service incidental to a sales call or delivery.
16 (c) Manufacturers, distributors, or importing distributors
17may rotate their own alcoholic liquor products at a retailer's
18premises one time either during the normal course of, 24 hours
19before, or within 24 hours after a regular sales call or one
20time either during the normal course of, 24 hours before, or
21within 24 hours after delivery to the retailer. Rotation may
22be performed at any location within a retailer's premises.
23 (d) Manufacturers, distributors, or importing distributors
24may participate in or be present at merchandising resets
25conducted at a retailer's premises no more than 4 times per
26year. During resets, manufacturers, distributors, or importing

HB2620 Enrolled- 125 -LRB102 11692 SPS 17026 b
1distributors may stock or restock entire sections of
2point-of-sale locations at the retailer's premises. No reset
3shall occur without at least 14 days' prior notice made by the
4retailer to all manufacturers, distributors, or importing
5distributors whose alcoholic liquor products are carried by
6the retailer. Manufacturers, distributors, or importing
7distributors may only move, alter, disturb, or displace their
8alcoholic liquor products and the products of properly
9notified, but nonattending, manufacturers, distributors, or
10importing distributors.
11 (e) Manufacturers, distributors, or importing distributors
12may provide to retailers recommended diagrams, shelf plans, or
13shelf schematics that suggest beneficial display locations for
14their alcoholic liquor products at the retailer's premises.
15Manufacturers, distributors, or importing distributors may not
16condition pricing discounts, credits, rebates, access to
17brands, or the provision of any other item or activity
18permissible under this Act upon a retailer's choice to
19implement or not implement diagrams, shelf plans, or shelf
20schematics.
21 (f) Manufacturers, distributors, or importing distributors
22may not affix prices to products on behalf of retailers. This
23prohibition includes the indirect affixing of prices to
24product, including entering prices into a retailer's computer
25system. This prohibition does not prohibit manufacturers,
26distributors, or importing distributors, after stocking a

HB2620 Enrolled- 126 -LRB102 11692 SPS 17026 b
1shelf, from affixing shelf tags that identify the product and
2price of the alcoholic liquor; however, at no time may
3manufacturers, distributors, or importing distributors
4delegate or contract this service to a third party. Shelf tags
5are considered point-of-sale advertising materials and are
6subject to Section 6-6. If permitted stocking by
7manufacturers, distributors, or importing distributors
8involves movement and a change in the placement of its product
9on the retailer's shelf, shelf tags may be moved to the new
10position 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
14retailer within any geographic area in which that distributor
15has been granted by a wholesaler the right to sell its
16trademark, brand, or name at least once every 2 weeks if (i) in
17the case of a retailer located in a county with a population of
18at least 3,000,000 inhabitants or in a county adjacent to a
19county with at least 3,000,000 inhabitants, the retailer
20agrees to purchase at least $200 of wine or spirits from the
21distributor every 2 weeks; or (ii) in the case of a retailer
22located in a county with a population of less than 3,000,000
23that is not adjacent to a county with a population of at least
243,000,000 inhabitants, the retailer agrees to purchase at
25least $50 of wine or spirits from the distributor every 2

HB2620 Enrolled- 127 -LRB102 11692 SPS 17026 b
1weeks.
2 (b) On January 1, 2002 and every 2 years thereafter, the
3dollar amounts in items (i) and (ii) of subsection (a) shall be
4increased or decreased by a percentage equal to the percentage
5increase or decrease in the Consumer Price Index during the
6previous 2 years according to the most recent available data.
7 (c) Any brewer or non-resident dealer which holds
8self-distribution privileges pursuant to a class 1 brewer
9license or a class 3 brewer license under this Act shall
10deliver beer to any retailer in the brewer's wholly owned or
11leased vehicles or through a freight forwarding service,
12excluding common carriers such as Federal Express, United
13Parcel Service, or similar common carriers, and shall provide
14services to the retailer upon the request of the retailer if
15such services are permitted under this Act and the rules of the
16Commission.
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
20Section 6-9.15:
21 "Common ownership" means any ownership interest of more
22than 5% of the total ownership interest of 2 or more retail
23licensees.
24 "Cooperative agent" means a person or persons with the
25authority to contract for the purchase and delivery of wine

HB2620 Enrolled- 128 -LRB102 11692 SPS 17026 b
1and spirits on behalf of a cooperative purchase group.
2 "Cooperative purchase group" means a group of 2 or more
3individually owned or commonly owned retail licensees who join
4together to enter into a cooperative purchase agreement.
5 "Cooperative purchasing agreement" means an agreement
6entered into between 2 or more individually owned, commonly
7owned, or not commonly owned retail licensees for the purpose
8of purchasing wine or spirits, excluding any product fermented
9with malt or any substitute for malt, from a distributor or
10importing distributor.
11 "Quantity discounting" means a sales program between a
12wine or spirits distributor or importing distributor and a
13retail licensee, retail licensees, or a cooperative purchase
14group in which the primary purpose of the program is to
15increase product sales to retail licensees and is not a
16subterfuge to provide prohibited things of value as
17inducements to retail licensees or to the members of a
18cooperative purchasing group. "Quantity discounting" includes
19circumstances in which a wine or spirits distributor or
20importing distributor offers a retail licensee, retail
21licensees, or a cooperative purchase group a discount based
22upon an agreement by which the retail licensee, retail
23licensees, or a cooperative purchase group may purchase a
24predetermined number of products in return for receiving a
25discount on the goods purchased that may be applied either as a
26price reduction at the time of sale or as a rebate or credit

HB2620 Enrolled- 129 -LRB102 11692 SPS 17026 b
1following 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
5if 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

HB2620 Enrolled- 130 -LRB102 11692 SPS 17026 b
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
12purchasing agreement, make purchases as a member of a
13cooperative purchase group or independently of any such group.
14Nothing in this Section or any other Section of this Act shall
15be construed to prohibit commonly or not commonly owned retail
16licensees from making purchases separate and apart from any
17membership in a cooperative purchase group.
18 (c) A retailer may only be a member of one cooperative
19purchase group at a time. A retail licensee may change to a
20different cooperative purchase group no more than twice in a
2112-month period. However, if an existing cooperative purchase
22group member purchases a retail location from a member of
23another cooperative purchase group, the new owner of the
24retail location may move the membership of the retail licensee
25to a different cooperative purchasing group.
26 (d) When a retail licensee joins an existing cooperative

HB2620 Enrolled- 131 -LRB102 11692 SPS 17026 b
1purchasing group, the new member must be a member for a period
2of 7 days before being able to participate in any quantity
3discount programs.
4 (e) Cooperative purchasing group members must be either
5all on-premises retail licensees or all off-premises retail
6licensees.
7 (f) Any individual retail licensee that is a member of a
8cooperative purchase group that fails to comply with the terms
9and conditions of this Section may be deemed to be in violation
10of Section 6-5. Any distributor or importing distributor that
11fails to comply with this Section may be deemed to be in
12violation of Section 6-5.
13 (g) The State Commission shall keep a list of the members
14of each cooperative purchase group and shall make that list
15available on its website.
16 (h) A retail licensee that is a member of a cooperative
17purchase group shall not have an ownership interest, directly
18or indirectly, in any entity licensed by this Act other than a
19retailer.
20 (i) It is unlawful for a distributor or importing
21distributor to furnish, give, or lend money or anything of
22value to a cooperative agent.
23 (j) It is the duty of each retail licensee of the
24cooperative purchase group to make books and records available
25upon reasonable notice for the purpose of investigation and
26control by the State Commission or any local liquor control

HB2620 Enrolled- 132 -LRB102 11692 SPS 17026 b
1commission having jurisdiction over the retail licensee of the
2cooperative purchase group.
3 (k) A cooperative agent shall not have an ownership
4interest, directly or indirectly, in an entity licensed under
5any other license category under this Act.
6 (l) A retailer, manufacturer, importing distributor,
7distributor, or cooperative agent shall remain in compliance
8with federal law pursuant to the prohibitions and exceptions
9provided in 27 CFR Part 6 and any promulgated rules thereof. A
10cooperative agent that is compliant with Sections 6-5 and 6-6
11shall not receive cash or anything of value from both the
12retail licensee and an importing distributor or distributor,
13non-resident dealer or manufacturers as part of a cooperative
14purchasing group agreement.
15 (235 ILCS 5/6-9.15 new)
16 Sec. 6-9.15. Quantity discounting terms for wine or
17spirits cooperative purchase agreements.
18 (a) All wine or spirits quantity discount programs offered
19to consumption off the premises retailers must be offered to
20all consumption off the premises cooperative groups and
21cooperative agents; and all quantity discount programs offered
22to consumption on the premises retailers shall be offered to
23all consumption on the premises cooperative groups and
24cooperative agents. Quantity discount programs shall:
25 (1) be open and available for acceptance for 7

HB2620 Enrolled- 133 -LRB102 11692 SPS 17026 b
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
20quantity discount sales to participating members of a
21cooperative purchase group shall issue customary invoices to
22each participating retail licensee itemizing the wine or
23spirit sold and delivered as part of a quantity discount
24program to each participating retail licensee.
25 (c) If a distributor or importing distributor offers a
26quantity discount for wine or spirits, excluding any product

HB2620 Enrolled- 134 -LRB102 11692 SPS 17026 b
1fermented with malt or any substitute for malt, cooperative
2purchase groups shall purchase a minimum of 250 cases in each
3quantity discount program. Each individual participating
4member of a cooperative purchase group purchasing product
5through a quantity discount program may be required to
6purchase 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
14purchase order under the name of the cooperative purchase
15group and shall identify each participating retail member
16involved with the purchase, the quantity of product purchase,
17the price attributable to each retailer member's purchase and
18a requested delivery date. A retail licensee may make
19purchases through a cooperative purchasing group or
20independently of such group. Nothing in this Section shall be
21construed to prohibit retail licensees from making purchases
22separate and apart from any cooperative purchasing group.
23 (e) Each distributor or importing distributor shall
24separately invoice each participating cooperative purchase
25group member for the purchase made on behalf of such
26participating member.

HB2620 Enrolled- 135 -LRB102 11692 SPS 17026 b
1 (f) A cooperative purchasing group shall maintain the
2records of each cooperative purchase order placed for 90 days.
3The 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
15and records requirements of Section 6-10 and subsection (e) of
1611 Ill. Admin. Code 100.130.
17 (h) A cooperative purchasing group shall retain a surety
18bond at all times for no less than $250,000. If a cooperative
19purchasing group member is delinquent in payment pursuant to
20Section 6-5, the surety shall immediately pay the importing
21distributor or distributor the delinquent amount. The surety
22bond required by this Section may be acquired from a company,
23agent, or broker of the cooperative purchase group's choice.
24If the surety bond does not cure the indebtedness, the 30-day
25merchandising credit requirements of Section 6-5 shall apply
26jointly to each cooperative purchasing group until the

HB2620 Enrolled- 136 -LRB102 11692 SPS 17026 b
1indebtedness is cured. The cooperative purchasing group is
2responsible for all costs and fees related to the surety bond.
3 (i) Any licensee that fails to comply with the terms and
4conditions of this Section may be deemed to be in violation of
5this Act.
6 (j) Nothing in this Section shall apply to quantity
7discount programs offered for any product fermented with malt
8or any substitute for malt. Nothing in the Section shall be
9construed to prohibit, limit, or interfere with quantity
10discount, credit, or rebate programs offered for any product
11fermented 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
14licensee from another retail licensee.
15 (a) No retail licensee may purchase wine or spirits from,
16or possess wine or spirits purchased from, any person other
17than a distributor or importing distributor; however, a retail
18licensee that purchases wine or spirits from a licensed
19Illinois retailer shall only receive a warning for the first 2
20violations of this Section within a 12-month period. If a
21retail licensee violates this Section a third time within the
22same 12-month period of the preceding 2 warnings, then the
23retailer licensee may be subject to the penalties under
24Section 10-1.
25 (b) A retailer that is delinquent in payment pursuant to

HB2620 Enrolled- 137 -LRB102 11692 SPS 17026 b
1Section 6-5 shall be prohibited from purchasing wine or
2spirits from another retailer pursuant to this Section until
3the indebtedness is cured.
4 (235 ILCS 5/6-37 new)
5 Sec. 6-37. Transfer of wine or spirits by a retail
6licensee with multiple licenses.
7 (a) No original package of wine or spirits may be
8transferred from one retail licensee to any other retail
9licensee without prior permission from the State Commission;
10however, if the same retailer owns more than one licensed
11retail location, an off-premise retailer may transfer up to 3%
12of its average monthly purchases by volume and an on-premise
13retailer may transfer up to 5% of its average monthly
14purchases by volume of original package of wine or spirits
15from one or more of such retailer's licensed locations to
16another of that retailer's licensed locations each month
17without prior permission from the State Commission, subject to
18the 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.

HB2620 Enrolled- 138 -LRB102 11692 SPS 17026 b
1 (b) All transfers must be properly documented on a form
2provided by the State Commission that includes the following
3information:
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
12an original package of wine or spirits as authorized by this
13Section shall not be deemed to be engaged in business as a
14wholesaler or distributor based upon the transfer authorized
15by this Section.
16 (d) A transfer authorized by this Section shall not be
17deemed a sale.
18 (e) A retailer that is delinquent in payment pursuant to
19Section 6-5 shall be prohibited from transferring wine or
20spirits to a commonly owned retailer pursuant to this Section
21until the indebtedness is cured.
22 (f) As used in this Section:
23 "Average monthly purchases" is calculated using a 12-month
24rolling average of the total volume purchased over the 12 most
25recent months previous to the month in which the transfer is
26made and dividing that total by 12.

HB2620 Enrolled- 139 -LRB102 11692 SPS 17026 b
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
4by a retail licensee with multiple licenses.
5 (a) No original package of wine or spirits may be
6transferred from one retail licensee to any other retail
7licensee without permission from the State Commission pursuant
8to 11 Ill. Admin. Code 100.250; however, if the same retailer
9owns more than one licensed retail location, the retailer may
10transfer inventory of original packages of wine or spirits
11from one or more of such retailer's licensed locations to
12another of that retailer's licensed locations without prior
13permission from the State Commission, under the following
14circumstances:
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;

HB2620 Enrolled- 140 -LRB102 11692 SPS 17026 b
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
18provided by the State Commission that includes the following
19information:
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.

HB2620 Enrolled- 141 -LRB102 11692 SPS 17026 b
1 (d) A retail licensee location that transfers or receives
2an original package of wine or spirits as authorized by this
3Section shall not be deemed to be engaged in business as a
4wholesaler or distributor based upon the transfer authorized
5by this Section.
6 (e) A transfer authorized by this Section shall not be
7deemed 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
12in the transaction.
13 "Final packaging container" means the last vessel in which
14beer is held before (i) consumption by an individual on the
15brewer's licensed premises; (ii) being placed in a keg,
16bottle, or can for consumption by an individual; or (iii)
17being removed for additional fermentation and aging in a cask
18or barrel.
19 (b) A brewer who is a class 1 brewer, class 2 brewer, class
203 brewer, or brew pub licensee shall accurately measure the
21quantity of beer transferred into its final packaging
22container to determine the brewer's tax liability by
23converting beer production into the amount of beer sold and to
24ensure compliance with any production or self-distribution
25quantity limitations under this Act applicable to the class 1

HB2620 Enrolled- 142 -LRB102 11692 SPS 17026 b
1brewer, class 2 brewer, class 3 brewer, or brew pub. The
2measurement shall comply with 27 CFR 25.41 and 27 CFR 25.42.
3Any brewer subject to this Section shall file, on the same date
4as the brewer files similar reports with the U.S. Department
5of the Treasury's Tobacco and Alcohol Tax and Trade Bureau,
6with the Department and State Commission a report of their use
7of water along with their "Brewer's Report of Operations"
8filed with the U.S. Department of Treasury's Alcohol and
9Tobacco Tax and Trade Bureau and shall maintain and produce
10for examination and inspection by the Department and the State
11Commission utility bills for water for 3 years along with
12their "Brewer's Report of Operations" filed with the U.S.
13Department of Treasury's Alcohol and Tobacco Tax and Trade
14Bureau. The Department, in cooperation with the State
15Commission, may audit on an annual basis the amount a class 1
16brewer, class 2 brewer, class 3 brewer, or brew pub licensee
17produces to determine compliance with this Act.
18 (c) A brewer's failure to comply with this Section shall
19result in the State Commission issuing a fine or suspending or
20revoking the brewer's license.
21 Section 95. No acceleration or delay. Where this Act makes
22changes in a statute that is represented in this Act by text
23that is not yet or no longer in effect (for example, a Section
24represented by multiple versions), the use of that text does
25not accelerate or delay the taking effect of (i) the changes

HB2620 Enrolled- 143 -LRB102 11692 SPS 17026 b
1made by this Act or (ii) provisions derived from any other
2Public Act.
3 Section 99. Effective date. This Act takes effect upon
4becoming law, except that the changes to Section 6-5 of the
5Liquor Control Act of 1934 take effect January 1, 2022.
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