Bill Text: IL HB3237 | 2015-2016 | 99th 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 that prohibit liquor distributors and manufacturers from giving, and retail licensees from receiving, anything of value, provides that a manufacturer, distributor or importing distributor may furnish free social media advertising to a person having a retail license if the social media advertisement does not contain the retail price of any alcoholic liquor. Defines "social media". Effective immediately.
Spectrum: Bipartisan Bill
Status: (Passed) 2015-08-24 - Public Act . . . . . . . . . 99-0448 [HB3237 Detail]
Download: Illinois-2015-HB3237-Enrolled.html
Bill Title: Amends the Liquor Control Act of 1934. In provisions that prohibit liquor distributors and manufacturers from giving, and retail licensees from receiving, anything of value, provides that a manufacturer, distributor or importing distributor may furnish free social media advertising to a person having a retail license if the social media advertisement does not contain the retail price of any alcoholic liquor. Defines "social media". Effective immediately.
Spectrum: Bipartisan Bill
Status: (Passed) 2015-08-24 - Public Act . . . . . . . . . 99-0448 [HB3237 Detail]
Download: Illinois-2015-HB3237-Enrolled.html
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1 | AN ACT concerning liquor.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Liquor Control Act of 1934 is amended by | ||||||
5 | changing Sections 1-3.33, 1-3.38, 3-12, 5-1, 5-3, 6-4, 6-5, | ||||||
6 | 6-6, and 6-36 and by adding Section 1-3.40 as follows:
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7 | (235 ILCS 5/1-3.33)
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8 | Sec. 1-3.33.
"Brew Pub" means a person who manufactures no | ||||||
9 | more than 155,000 gallons of beer per year only at a
designated | ||||||
10 | licensed premises to make sales to importing distributors, | ||||||
11 | distributors,
and to non-licensees for use and consumption | ||||||
12 | only, who stores beer
at the designated premises, and who is | ||||||
13 | allowed to sell at retail from the
licensed premises, provided | ||||||
14 | that a brew pub licensee shall not sell for
off-premises | ||||||
15 | consumption more than 155,000 50,000 gallons per year. A person | ||||||
16 | who holds a brew pub license may simultaneously hold a craft | ||||||
17 | brewer license if he or she otherwise qualifies for the craft | ||||||
18 | brewer license and the craft brewer license is for a location | ||||||
19 | separate from the brew pub's licensed premises.
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20 | (Source: P.A. 97-5, eff. 6-1-11.)
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21 | (235 ILCS 5/1-3.38) | ||||||
22 | Sec. 1-3.38. Class 1 brewer. " Class 1 Craft brewer" means a |
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1 | person who is a holder of a licensed brewer license or licensed | ||||||
2 | non-resident dealer license who manufactures up to 930,000 | ||||||
3 | gallons of beer per year and who may make sales and deliveries | ||||||
4 | to importing distributors and distributors and to retail | ||||||
5 | licensees in accordance with the conditions set forth in | ||||||
6 | paragraph (18) of subsection (a) of Section 3-12 of this Act.
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7 | (Source: P.A. 97-5, eff. 6-1-11; 98-401, eff. 8-16-13.)
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8 | (235 ILCS 5/1-3.40 new) | ||||||
9 | Sec. 1-3.40. Class 2 brewer. "Class 2 brewer" means a | ||||||
10 | person who is a holder of a brewer license or non-resident | ||||||
11 | dealer license who manufactures up to 3,720,000 gallons of beer | ||||||
12 | per year for sale to a licensed importing distributor or | ||||||
13 | distributor.
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14 | (235 ILCS 5/3-12)
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15 | (Text of Section before amendment by P.A. 98-939 ) | ||||||
16 | Sec. 3-12. Powers and duties of State Commission.
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17 | (a) The State commission shall have the following powers, | ||||||
18 | functions, and
duties:
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19 | (1) To receive applications and to issue licenses to | ||||||
20 | manufacturers,
foreign importers, importing distributors, | ||||||
21 | distributors, non-resident dealers,
on premise consumption | ||||||
22 | retailers, off premise sale retailers, special event
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23 | retailer licensees, special use permit licenses, auction | ||||||
24 | liquor licenses, brew
pubs, caterer retailers, |
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1 | non-beverage users, railroads, including owners and
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2 | lessees of sleeping, dining and cafe cars, airplanes, | ||||||
3 | boats, brokers, and wine
maker's premises licensees in | ||||||
4 | accordance with the provisions of this Act, and
to suspend | ||||||
5 | or revoke such licenses upon the State commission's | ||||||
6 | determination,
upon notice after hearing, that a licensee | ||||||
7 | has violated any provision of this
Act or any rule or | ||||||
8 | regulation issued pursuant thereto and in effect for 30 | ||||||
9 | days
prior to such violation. Except in the case of an | ||||||
10 | action taken pursuant to a
violation of Section 6-3, 6-5, | ||||||
11 | or 6-9, any action by the State Commission to
suspend or | ||||||
12 | revoke a licensee's license may be limited to the license | ||||||
13 | for the
specific premises where the violation occurred.
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14 | In lieu of suspending or revoking a license, the | ||||||
15 | commission may impose
a fine, upon the State commission's | ||||||
16 | determination and notice after hearing,
that a licensee has | ||||||
17 | violated any provision of this Act or any rule or
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18 | regulation issued pursuant thereto and in effect for 30 | ||||||
19 | days prior to such
violation. | ||||||
20 | For the purpose of this paragraph (1), when determining | ||||||
21 | multiple violations for the sale of alcohol to a person | ||||||
22 | under the age of 21, a second or subsequent violation for | ||||||
23 | the sale of alcohol to a person under the age of 21 shall | ||||||
24 | only be considered if it was committed within 5 years after | ||||||
25 | the date when a prior violation for the sale of alcohol to | ||||||
26 | a person under the age of 21 was committed. |
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1 | The fine imposed under this paragraph may not exceed | ||||||
2 | $500 for each
violation. Each day that the activity, which | ||||||
3 | gave rise to the original fine,
continues is a separate | ||||||
4 | violation. The maximum fine that may be levied against
any | ||||||
5 | licensee, for the period of the license, shall not exceed | ||||||
6 | $20,000.
The maximum penalty that may be imposed on a | ||||||
7 | licensee for selling a bottle of
alcoholic liquor with a | ||||||
8 | foreign object in it or serving from a bottle of
alcoholic | ||||||
9 | liquor with a foreign object in it shall be the destruction | ||||||
10 | of that
bottle of alcoholic liquor for the first 10 bottles | ||||||
11 | so sold or served from by
the licensee. For the eleventh | ||||||
12 | bottle of alcoholic liquor and for each third
bottle | ||||||
13 | thereafter sold or served from by the licensee with a | ||||||
14 | foreign object in
it, the maximum penalty that may be | ||||||
15 | imposed on the licensee is the destruction
of the bottle of | ||||||
16 | alcoholic liquor and a fine of up to $50.
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17 | (2) To adopt such rules and regulations consistent with | ||||||
18 | the
provisions of this Act which shall be necessary to | ||||||
19 | carry on its
functions and duties to the end that the | ||||||
20 | health, safety and welfare of
the People of the State of | ||||||
21 | Illinois shall be protected and temperance in
the | ||||||
22 | consumption of alcoholic liquors shall be fostered and | ||||||
23 | promoted and
to distribute copies of such rules and | ||||||
24 | regulations to all licensees
affected thereby.
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25 | (3) To call upon other administrative departments of | ||||||
26 | the State,
county and municipal governments, county and |
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1 | city police departments and
upon prosecuting officers for | ||||||
2 | such information and assistance as it
deems necessary in | ||||||
3 | the performance of its duties.
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4 | (4) To recommend to local commissioners rules and | ||||||
5 | regulations, not
inconsistent with the law, for the | ||||||
6 | distribution and sale of alcoholic
liquors throughout the | ||||||
7 | State.
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8 | (5) To inspect, or cause to be inspected, any
premises | ||||||
9 | in this State
where alcoholic liquors are manufactured, | ||||||
10 | distributed, warehoused, or
sold. Nothing in this Act
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11 | authorizes an agent of the Commission to inspect private
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12 | areas within the premises without reasonable suspicion or a | ||||||
13 | warrant
during an inspection. "Private areas" include, but | ||||||
14 | are not limited to, safes, personal property, and closed | ||||||
15 | desks.
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16 | (5.1) Upon receipt of a complaint or upon having | ||||||
17 | knowledge that any person
is engaged in business as a | ||||||
18 | manufacturer, importing distributor, distributor,
or | ||||||
19 | retailer without a license or valid license, to notify the | ||||||
20 | local liquor
authority, file a complaint with the State's | ||||||
21 | Attorney's Office of the county
where the incident | ||||||
22 | occurred, or initiate an investigation with the | ||||||
23 | appropriate
law enforcement officials.
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24 | (5.2) To issue a cease and desist notice to persons | ||||||
25 | shipping alcoholic
liquor
into this State from a point | ||||||
26 | outside of this State if the shipment is in
violation of |
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1 | this Act.
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2 | (5.3) To receive complaints from licensees, local | ||||||
3 | officials, law
enforcement agencies, organizations, and | ||||||
4 | persons stating that any licensee has
been or is violating | ||||||
5 | any provision of this Act or the rules and regulations
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6 | issued pursuant to this Act. Such complaints shall be in | ||||||
7 | writing, signed and
sworn to by the person making the | ||||||
8 | complaint, and shall state with specificity
the facts in | ||||||
9 | relation to the alleged violation. If the Commission has
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10 | reasonable grounds to believe that the complaint | ||||||
11 | substantially alleges a
violation of this Act or rules and | ||||||
12 | regulations adopted pursuant to this Act, it
shall conduct | ||||||
13 | an investigation. If, after conducting an investigation, | ||||||
14 | the
Commission is satisfied that the alleged violation did | ||||||
15 | occur, it shall proceed
with disciplinary action against | ||||||
16 | the licensee as provided in this Act.
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17 | (6) To hear and determine appeals from orders of a | ||||||
18 | local commission
in accordance with the provisions of this | ||||||
19 | Act, as hereinafter set forth.
Hearings under this | ||||||
20 | subsection shall be held in Springfield or Chicago,
at | ||||||
21 | whichever location is the more convenient for the majority | ||||||
22 | of persons
who are parties to the hearing.
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23 | (7) The commission shall establish uniform systems of | ||||||
24 | accounts to be
kept by all retail licensees having more | ||||||
25 | than 4 employees, and for this
purpose the commission may | ||||||
26 | classify all retail licensees having more
than 4 employees |
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1 | and establish a uniform system of accounts for each
class | ||||||
2 | and prescribe the manner in which such accounts shall be | ||||||
3 | kept.
The commission may also prescribe the forms of | ||||||
4 | accounts to be kept by
all retail licensees having more | ||||||
5 | than 4 employees, including but not
limited to accounts of | ||||||
6 | earnings and expenses and any distribution,
payment, or | ||||||
7 | other distribution of earnings or assets, and any other
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8 | forms, records and memoranda which in the judgment of the | ||||||
9 | commission may
be necessary or appropriate to carry out any | ||||||
10 | of the provisions of this
Act, including but not limited to | ||||||
11 | such forms, records and memoranda as
will readily and | ||||||
12 | accurately disclose at all times the beneficial
ownership | ||||||
13 | of such retail licensed business. The accounts, forms,
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14 | records and memoranda shall be available at all reasonable | ||||||
15 | times for
inspection by authorized representatives of the | ||||||
16 | State commission or by
any local liquor control | ||||||
17 | commissioner or his or her authorized representative.
The | ||||||
18 | commission, may, from time to time, alter, amend or repeal, | ||||||
19 | in whole
or in part, any uniform system of accounts, or the | ||||||
20 | form and manner of
keeping accounts.
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21 | (8) In the conduct of any hearing authorized to be held | ||||||
22 | by the
commission, to appoint, at the commission's | ||||||
23 | discretion, hearing officers
to conduct hearings involving | ||||||
24 | complex issues or issues that will require a
protracted | ||||||
25 | period of time to resolve, to examine, or cause to be | ||||||
26 | examined,
under oath, any licensee, and to examine or cause |
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1 | to be examined the books and
records
of such licensee; to | ||||||
2 | hear testimony and take proof material for its
information | ||||||
3 | in the discharge of its duties hereunder; to administer or
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4 | cause to be administered oaths; for any such purpose to | ||||||
5 | issue
subpoena or subpoenas to require the attendance of | ||||||
6 | witnesses and the
production of books, which shall be | ||||||
7 | effective in any part of this State, and
to adopt rules to | ||||||
8 | implement its powers under this paragraph (8).
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9 | Any Circuit Court may by order duly entered,
require | ||||||
10 | the attendance of witnesses and the production of relevant | ||||||
11 | books
subpoenaed by the State commission and the court may | ||||||
12 | compel
obedience to its order by proceedings for contempt.
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13 | (9) To investigate the administration of laws in | ||||||
14 | relation to
alcoholic liquors in this and other states and | ||||||
15 | any foreign countries,
and to recommend from time to time | ||||||
16 | to the Governor and through him or
her to the legislature | ||||||
17 | of this State, such amendments to this Act, if any, as
it | ||||||
18 | may think desirable and as will serve to further the | ||||||
19 | general broad
purposes contained in Section 1-2 hereof.
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20 | (10) To adopt such rules and regulations consistent | ||||||
21 | with the
provisions of this Act which shall be necessary | ||||||
22 | for the control, sale or
disposition of alcoholic liquor | ||||||
23 | damaged as a result of an accident, wreck,
flood, fire or | ||||||
24 | other similar occurrence.
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25 | (11) To develop industry educational programs related | ||||||
26 | to responsible
serving and selling, particularly in the |
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1 | areas of overserving consumers and
illegal underage | ||||||
2 | purchasing and consumption of alcoholic beverages.
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3 | (11.1) To license persons providing education and | ||||||
4 | training to alcohol
beverage sellers and servers under the
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5 | Beverage Alcohol Sellers and Servers
Education and | ||||||
6 | Training (BASSET) programs and to develop and administer a | ||||||
7 | public
awareness program in Illinois to reduce or eliminate | ||||||
8 | the illegal purchase and
consumption of alcoholic beverage | ||||||
9 | products by persons under the age of 21.
Application for a | ||||||
10 | license shall be made on forms provided by the State
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11 | Commission.
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12 | (12) To develop and maintain a repository of license | ||||||
13 | and regulatory
information.
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14 | (13) On or before January 15, 1994, the Commission | ||||||
15 | shall issue
a written report to the Governor and General | ||||||
16 | Assembly that is to be based on a
comprehensive study of | ||||||
17 | the impact on and implications for the State of Illinois
of | ||||||
18 | Section 1926 of the Federal ADAMHA Reorganization Act of | ||||||
19 | 1992 (Public Law
102-321). This study shall address the | ||||||
20 | extent to which Illinois currently
complies with the | ||||||
21 | provisions of P.L. 102-321 and the rules promulgated | ||||||
22 | pursuant
thereto.
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23 | As part of its report, the Commission shall provide the | ||||||
24 | following essential
information:
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25 | (i) the number of retail distributors of tobacco | ||||||
26 | products, by type and
geographic area, in the State;
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1 | (ii) the number of reported citations and | ||||||
2 | successful convictions,
categorized by type and | ||||||
3 | location of retail distributor, for violation of the
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4 | Prevention of Tobacco Use by Minors and Sale and | ||||||
5 | Distribution of Tobacco Products Act and the Smokeless
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6 | Tobacco Limitation Act;
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7 | (iii) the extent and nature of organized | ||||||
8 | educational and governmental
activities that are | ||||||
9 | intended to promote, encourage or otherwise secure
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10 | compliance with any Illinois laws that prohibit the | ||||||
11 | sale or distribution of
tobacco products to minors; and
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12 | (iv) the level of access and availability of | ||||||
13 | tobacco products to
individuals under the age of 18.
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14 | To obtain the data necessary to comply with the | ||||||
15 | provisions of P.L. 102-321
and the requirements of this | ||||||
16 | report, the Commission shall conduct random,
unannounced | ||||||
17 | inspections of a geographically and scientifically | ||||||
18 | representative
sample of the State's retail tobacco | ||||||
19 | distributors.
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20 | The Commission shall consult with the Department of | ||||||
21 | Public Health, the
Department of Human Services, the
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22 | Illinois State Police and any
other executive branch | ||||||
23 | agency, and private organizations that may have
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24 | information relevant to this report.
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25 | The Commission may contract with the Food and Drug | ||||||
26 | Administration of the
U.S. Department of Health and Human |
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1 | Services to conduct unannounced
investigations of Illinois | ||||||
2 | tobacco vendors to determine compliance with federal
laws | ||||||
3 | relating to the illegal sale of cigarettes and smokeless | ||||||
4 | tobacco products
to persons under the age of 18.
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5 | (14) On or before April 30, 2008 and every 2 years
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6 | thereafter, the Commission shall present a written
report | ||||||
7 | to the Governor and the General Assembly that shall
be | ||||||
8 | based on a study of the impact of this amendatory Act of
| ||||||
9 | the 95th General Assembly on the business of soliciting,
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10 | selling, and shipping wine from inside and outside of this
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11 | State directly to residents of this State. As part of its
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12 | report, the Commission shall provide all of the
following | ||||||
13 | information: | ||||||
14 | (A) The amount of State excise and sales tax
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15 | revenues generated. | ||||||
16 | (B) The amount of licensing fees received. | ||||||
17 | (C) The number of cases of wine shipped from inside
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18 | and outside of this State directly to residents of this
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19 | State. | ||||||
20 | (D) The number of alcohol compliance operations
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21 | conducted. | ||||||
22 | (E) The number of winery shipper's licenses
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23 | issued. | ||||||
24 | (F) The number of each of the following: reported
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25 | violations; cease and desist notices issued by the
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26 | Commission; notices of violations issued by
the |
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1 | Commission and to the Department of Revenue;
and | ||||||
2 | notices and complaints of violations to law
| ||||||
3 | enforcement officials, including, without limitation,
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4 | the Illinois Attorney General and the U.S. Department
| ||||||
5 | of Treasury's Alcohol and Tobacco Tax and Trade Bureau. | ||||||
6 | (15) As a means to reduce the underage consumption of
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7 | alcoholic liquors, the Commission shall conduct
alcohol | ||||||
8 | compliance operations to investigate whether
businesses | ||||||
9 | that are soliciting, selling, and shipping wine
from inside | ||||||
10 | or outside of this State directly to residents
of this | ||||||
11 | State are licensed by this State or are selling or
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12 | attempting to sell wine to persons under 21 years of age in
| ||||||
13 | violation of this Act. | ||||||
14 | (16) The Commission shall, in addition to
notifying any | ||||||
15 | appropriate law enforcement agency, submit
notices of | ||||||
16 | complaints or violations of Sections 6-29 and
6-29.1 by | ||||||
17 | persons who do not hold a winery shipper's
license under | ||||||
18 | this amendatory Act to the Illinois Attorney General and
to | ||||||
19 | the U.S. Department of Treasury's Alcohol and Tobacco Tax | ||||||
20 | and Trade Bureau. | ||||||
21 | (17) (A) A person licensed to make wine under the laws | ||||||
22 | of another state who has a winery shipper's license under | ||||||
23 | this amendatory Act and annually produces less than 25,000 | ||||||
24 | gallons of wine or a person who has a first-class or | ||||||
25 | second-class wine manufacturer's license, a first-class or | ||||||
26 | second-class wine-maker's license, or a limited wine |
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1 | manufacturer's license under this Act and annually | ||||||
2 | produces less than 25,000 gallons of wine may make | ||||||
3 | application to the Commission for a self-distribution | ||||||
4 | exemption to allow the sale of not more than 5,000 gallons | ||||||
5 | of the exemption holder's wine to retail licensees per | ||||||
6 | year. | ||||||
7 | (B) In the application, which shall be sworn under | ||||||
8 | penalty of perjury, such person shall state (1) the | ||||||
9 | date it was established; (2) its volume of production | ||||||
10 | and sales for each year since its establishment; (3) | ||||||
11 | its efforts to establish distributor relationships; | ||||||
12 | (4) that a self-distribution exemption is necessary to | ||||||
13 | facilitate the marketing of its wine; and (5) that it | ||||||
14 | will comply with the liquor and revenue laws of the | ||||||
15 | United States, this State, and any other state where it | ||||||
16 | is licensed. | ||||||
17 | (C) The Commission shall approve the application | ||||||
18 | for a self-distribution exemption if such person: (1) | ||||||
19 | is in compliance with State revenue and liquor laws; | ||||||
20 | (2) is not a member of any affiliated group that | ||||||
21 | produces more than 25,000 gallons of wine per annum or | ||||||
22 | produces any other alcoholic liquor; (3) will not | ||||||
23 | annually produce for sale more than 25,000 gallons of | ||||||
24 | wine; and (4) will not annually sell more than 5,000 | ||||||
25 | gallons of its wine to retail licensees. | ||||||
26 | (D) A self-distribution exemption holder shall |
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1 | annually certify to the Commission its production of | ||||||
2 | wine in the previous 12 months and its anticipated | ||||||
3 | production and sales for the next 12 months. The | ||||||
4 | Commission may fine, suspend, or revoke a | ||||||
5 | self-distribution exemption after a hearing if it | ||||||
6 | finds that the exemption holder has made a material | ||||||
7 | misrepresentation in its application, violated a | ||||||
8 | revenue or liquor law of Illinois, exceeded production | ||||||
9 | of 25,000 gallons of wine in any calendar year, or | ||||||
10 | become part of an affiliated group producing more than | ||||||
11 | 25,000 gallons of wine or any other alcoholic liquor. | ||||||
12 | (E) Except in hearings for violations of this Act | ||||||
13 | or amendatory Act or a bona fide investigation by duly | ||||||
14 | sworn law enforcement officials, the Commission, or | ||||||
15 | its agents, the Commission shall maintain the | ||||||
16 | production and sales information of a | ||||||
17 | self-distribution exemption holder as confidential and | ||||||
18 | shall not release such information to any person. | ||||||
19 | (F) The Commission shall issue regulations | ||||||
20 | governing self-distribution exemptions consistent with | ||||||
21 | this Section and this Act. | ||||||
22 | (G) Nothing in this subsection (17) shall prohibit | ||||||
23 | a self-distribution exemption holder from entering | ||||||
24 | into or simultaneously having a distribution agreement | ||||||
25 | with a licensed Illinois distributor. | ||||||
26 | (H) It is the intent of this subsection (17) to |
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1 | promote and continue orderly markets. The General | ||||||
2 | Assembly finds that in order to preserve Illinois' | ||||||
3 | regulatory distribution system it is necessary to | ||||||
4 | create an exception for smaller makers of wine as their | ||||||
5 | wines are frequently adjusted in varietals, mixes, | ||||||
6 | vintages, and taste to find and create market niches | ||||||
7 | sometimes too small for distributor or importing | ||||||
8 | distributor business strategies. Limited | ||||||
9 | self-distribution rights will afford and allow smaller | ||||||
10 | makers of wine access to the marketplace in order to | ||||||
11 | develop a customer base without impairing the | ||||||
12 | integrity of the 3-tier system.
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13 | (18) (A) A class 1 craft brewer licensee, who must also | ||||||
14 | be either a licensed brewer or licensed non-resident dealer | ||||||
15 | and annually manufacture less than 930,000 gallons of beer, | ||||||
16 | may make application to the State Commission for a | ||||||
17 | self-distribution exemption to allow the sale of not more | ||||||
18 | than 232,500 gallons of the exemption holder's beer to | ||||||
19 | retail licensees per year. | ||||||
20 | (B) In the application, which shall be sworn under | ||||||
21 | penalty of perjury, the class 1 craft brewer licensee | ||||||
22 | shall state (1) the date it was established; (2) its | ||||||
23 | volume of beer manufactured and sold for each year | ||||||
24 | since its establishment; (3) its efforts to establish | ||||||
25 | distributor relationships; (4) that a | ||||||
26 | self-distribution exemption is necessary to facilitate |
| |||||||
| |||||||
1 | the marketing of its beer; and (5) that it will comply | ||||||
2 | with the alcoholic beverage and revenue laws of the | ||||||
3 | United States, this State, and any other state where it | ||||||
4 | is licensed. | ||||||
5 | (C) Any application submitted shall be posted on | ||||||
6 | the State Commission's website at least 45 days prior | ||||||
7 | to action by the State Commission. The State Commission | ||||||
8 | shall approve the application for a self-distribution | ||||||
9 | exemption if the class 1 craft brewer licensee: (1) is | ||||||
10 | in compliance with the State, revenue, and alcoholic | ||||||
11 | beverage laws; (2) is not a member of any affiliated | ||||||
12 | group that manufacturers more than 930,000 gallons of | ||||||
13 | beer per annum or produces any other alcoholic | ||||||
14 | beverages; (3) shall not annually manufacture for sale | ||||||
15 | more than 930,000 gallons of beer; and (4) shall not | ||||||
16 | annually sell more than 232,500 gallons of its beer to | ||||||
17 | retail licensees ; and (5) has relinquished any brew pub | ||||||
18 | license held by the licensee, including any ownership | ||||||
19 | interest held in the licensed brew pub . | ||||||
20 | (D) A self-distribution exemption holder shall | ||||||
21 | annually certify to the State Commission its | ||||||
22 | manufacture of beer during the previous 12 months and | ||||||
23 | its anticipated manufacture and sales of beer for the | ||||||
24 | next 12 months. The State Commission may fine, suspend, | ||||||
25 | or revoke a self-distribution exemption after a | ||||||
26 | hearing if it finds that the exemption holder has made |
| |||||||
| |||||||
1 | a material misrepresentation in its application, | ||||||
2 | violated a revenue or alcoholic beverage law of | ||||||
3 | Illinois, exceeded the manufacture of 930,000 gallons | ||||||
4 | of beer in any calendar year or became part of an | ||||||
5 | affiliated group manufacturing more than 930,000 | ||||||
6 | gallons of beer or any other alcoholic beverage. | ||||||
7 | (E) The State Commission shall issue rules and | ||||||
8 | regulations governing self-distribution exemptions | ||||||
9 | consistent with this Act. | ||||||
10 | (F) Nothing in this paragraph (18) shall prohibit a | ||||||
11 | self-distribution exemption holder from entering into | ||||||
12 | or simultaneously having a distribution agreement with | ||||||
13 | a licensed Illinois importing distributor or a | ||||||
14 | distributor. If a self-distribution exemption holder | ||||||
15 | enters into a distribution agreement and has assigned | ||||||
16 | distribution rights to an importing distributor or | ||||||
17 | distributor, then the self-distribution exemption | ||||||
18 | holder's distribution rights in the assigned | ||||||
19 | territories shall cease in a reasonable time not to | ||||||
20 | exceed 60 days. | ||||||
21 | (G) It is the intent of this paragraph (18) to | ||||||
22 | promote and continue orderly markets. The General | ||||||
23 | Assembly finds that in order to preserve Illinois' | ||||||
24 | regulatory distribution system, it is necessary to | ||||||
25 | create an exception for smaller manufacturers in order | ||||||
26 | to afford and allow such smaller manufacturers of beer |
| |||||||
| |||||||
1 | access to the marketplace in order to develop a | ||||||
2 | customer base without impairing the integrity of the | ||||||
3 | 3-tier system. | ||||||
4 | (b) On or before April 30, 1999, the Commission shall | ||||||
5 | present a written
report to the Governor and the General | ||||||
6 | Assembly that shall be based on a study
of the impact of this | ||||||
7 | amendatory Act of 1998 on the business of soliciting,
selling, | ||||||
8 | and shipping
alcoholic liquor from outside of this State | ||||||
9 | directly to residents of this
State.
| ||||||
10 | As part of its report, the Commission shall provide the | ||||||
11 | following
information:
| ||||||
12 | (i) the amount of State excise and sales tax revenues | ||||||
13 | generated as a
result of this amendatory Act of 1998;
| ||||||
14 | (ii) the amount of licensing fees received as a result | ||||||
15 | of this amendatory
Act of 1998;
| ||||||
16 | (iii) the number of reported violations, the number of | ||||||
17 | cease and desist
notices issued by the Commission, the | ||||||
18 | number of notices of violations issued
to the Department of | ||||||
19 | Revenue, and the number of notices and complaints of
| ||||||
20 | violations to law enforcement officials.
| ||||||
21 | (Source: P.A. 97-5, eff. 6-1-11; 98-401, eff. 8-16-13; 98-941, | ||||||
22 | eff. 1-1-15.)
| ||||||
23 | (Text of Section after amendment by P.A. 98-939 )
| ||||||
24 | Sec. 3-12. Powers and duties of State Commission.
| ||||||
25 | (a) The State commission shall have the following powers, |
| |||||||
| |||||||
1 | functions, and
duties:
| ||||||
2 | (1) To receive applications and to issue licenses to | ||||||
3 | manufacturers,
foreign importers, importing distributors, | ||||||
4 | distributors, non-resident dealers,
on premise consumption | ||||||
5 | retailers, off premise sale retailers, special event
| ||||||
6 | retailer licensees, special use permit licenses, auction | ||||||
7 | liquor licenses, brew
pubs, caterer retailers, | ||||||
8 | non-beverage users, railroads, including owners and
| ||||||
9 | lessees of sleeping, dining and cafe cars, airplanes, | ||||||
10 | boats, brokers, and wine
maker's premises licensees in | ||||||
11 | accordance with the provisions of this Act, and
to suspend | ||||||
12 | or revoke such licenses upon the State commission's | ||||||
13 | determination,
upon notice after hearing, that a licensee | ||||||
14 | has violated any provision of this
Act or any rule or | ||||||
15 | regulation issued pursuant thereto and in effect for 30 | ||||||
16 | days
prior to such violation. Except in the case of an | ||||||
17 | action taken pursuant to a
violation of Section 6-3, 6-5, | ||||||
18 | or 6-9, any action by the State Commission to
suspend or | ||||||
19 | revoke a licensee's license may be limited to the license | ||||||
20 | for the
specific premises where the violation occurred.
| ||||||
21 | In lieu of suspending or revoking a license, the | ||||||
22 | commission may impose
a fine, upon the State commission's | ||||||
23 | determination and notice after hearing,
that a licensee has | ||||||
24 | violated any provision of this Act or any rule or
| ||||||
25 | regulation issued pursuant thereto and in effect for 30 | ||||||
26 | days prior to such
violation. |
| |||||||
| |||||||
1 | For the purpose of this paragraph (1), when determining | ||||||
2 | multiple violations for the sale of alcohol to a person | ||||||
3 | under the age of 21, a second or subsequent violation for | ||||||
4 | the sale of alcohol to a person under the age of 21 shall | ||||||
5 | only be considered if it was committed within 5 years after | ||||||
6 | the date when a prior violation for the sale of alcohol to | ||||||
7 | a person under the age of 21 was committed. | ||||||
8 | The fine imposed under this paragraph may not exceed | ||||||
9 | $500 for each
violation. Each day that the activity, which | ||||||
10 | gave rise to the original fine,
continues is a separate | ||||||
11 | violation. The maximum fine that may be levied against
any | ||||||
12 | licensee, for the period of the license, shall not exceed | ||||||
13 | $20,000.
The maximum penalty that may be imposed on a | ||||||
14 | licensee for selling a bottle of
alcoholic liquor with a | ||||||
15 | foreign object in it or serving from a bottle of
alcoholic | ||||||
16 | liquor with a foreign object in it shall be the destruction | ||||||
17 | of that
bottle of alcoholic liquor for the first 10 bottles | ||||||
18 | so sold or served from by
the licensee. For the eleventh | ||||||
19 | bottle of alcoholic liquor and for each third
bottle | ||||||
20 | thereafter sold or served from by the licensee with a | ||||||
21 | foreign object in
it, the maximum penalty that may be | ||||||
22 | imposed on the licensee is the destruction
of the bottle of | ||||||
23 | alcoholic liquor and a fine of up to $50.
| ||||||
24 | (2) To adopt such rules and regulations consistent with | ||||||
25 | the
provisions of this Act which shall be necessary to | ||||||
26 | carry on its
functions and duties to the end that the |
| |||||||
| |||||||
1 | health, safety and welfare of
the People of the State of | ||||||
2 | Illinois shall be protected and temperance in
the | ||||||
3 | consumption of alcoholic liquors shall be fostered and | ||||||
4 | promoted and
to distribute copies of such rules and | ||||||
5 | regulations to all licensees
affected thereby.
| ||||||
6 | (3) To call upon other administrative departments of | ||||||
7 | the State,
county and municipal governments, county and | ||||||
8 | city police departments and
upon prosecuting officers for | ||||||
9 | such information and assistance as it
deems necessary in | ||||||
10 | the performance of its duties.
| ||||||
11 | (4) To recommend to local commissioners rules and | ||||||
12 | regulations, not
inconsistent with the law, for the | ||||||
13 | distribution and sale of alcoholic
liquors throughout the | ||||||
14 | State.
| ||||||
15 | (5) To inspect, or cause to be inspected, any
premises | ||||||
16 | in this State
where alcoholic liquors are manufactured, | ||||||
17 | distributed, warehoused, or
sold. Nothing in this Act
| ||||||
18 | authorizes an agent of the Commission to inspect private
| ||||||
19 | areas within the premises without reasonable suspicion or a | ||||||
20 | warrant
during an inspection. "Private areas" include, but | ||||||
21 | are not limited to, safes, personal property, and closed | ||||||
22 | desks.
| ||||||
23 | (5.1) Upon receipt of a complaint or upon having | ||||||
24 | knowledge that any person
is engaged in business as a | ||||||
25 | manufacturer, importing distributor, distributor,
or | ||||||
26 | retailer without a license or valid license, to notify the |
| |||||||
| |||||||
1 | local liquor
authority, file a complaint with the State's | ||||||
2 | Attorney's Office of the county
where the incident | ||||||
3 | occurred, or initiate an investigation with the | ||||||
4 | appropriate
law enforcement officials.
| ||||||
5 | (5.2) To issue a cease and desist notice to persons | ||||||
6 | shipping alcoholic
liquor
into this State from a point | ||||||
7 | outside of this State if the shipment is in
violation of | ||||||
8 | this Act.
| ||||||
9 | (5.3) To receive complaints from licensees, local | ||||||
10 | officials, law
enforcement agencies, organizations, and | ||||||
11 | persons stating that any licensee has
been or is violating | ||||||
12 | any provision of this Act or the rules and regulations
| ||||||
13 | issued pursuant to this Act. Such complaints shall be in | ||||||
14 | writing, signed and
sworn to by the person making the | ||||||
15 | complaint, and shall state with specificity
the facts in | ||||||
16 | relation to the alleged violation. If the Commission has
| ||||||
17 | reasonable grounds to believe that the complaint | ||||||
18 | substantially alleges a
violation of this Act or rules and | ||||||
19 | regulations adopted pursuant to this Act, it
shall conduct | ||||||
20 | an investigation. If, after conducting an investigation, | ||||||
21 | the
Commission is satisfied that the alleged violation did | ||||||
22 | occur, it shall proceed
with disciplinary action against | ||||||
23 | the licensee as provided in this Act.
| ||||||
24 | (6) To hear and determine appeals from orders of a | ||||||
25 | local commission
in accordance with the provisions of this | ||||||
26 | Act, as hereinafter set forth.
Hearings under this |
| |||||||
| |||||||
1 | subsection shall be held in Springfield or Chicago,
at | ||||||
2 | whichever location is the more convenient for the majority | ||||||
3 | of persons
who are parties to the hearing.
| ||||||
4 | (7) The commission shall establish uniform systems of | ||||||
5 | accounts to be
kept by all retail licensees having more | ||||||
6 | than 4 employees, and for this
purpose the commission may | ||||||
7 | classify all retail licensees having more
than 4 employees | ||||||
8 | and establish a uniform system of accounts for each
class | ||||||
9 | and prescribe the manner in which such accounts shall be | ||||||
10 | kept.
The commission may also prescribe the forms of | ||||||
11 | accounts to be kept by
all retail licensees having more | ||||||
12 | than 4 employees, including but not
limited to accounts of | ||||||
13 | earnings and expenses and any distribution,
payment, or | ||||||
14 | other distribution of earnings or assets, and any other
| ||||||
15 | forms, records and memoranda which in the judgment of the | ||||||
16 | commission may
be necessary or appropriate to carry out any | ||||||
17 | of the provisions of this
Act, including but not limited to | ||||||
18 | such forms, records and memoranda as
will readily and | ||||||
19 | accurately disclose at all times the beneficial
ownership | ||||||
20 | of such retail licensed business. The accounts, forms,
| ||||||
21 | records and memoranda shall be available at all reasonable | ||||||
22 | times for
inspection by authorized representatives of the | ||||||
23 | State commission or by
any local liquor control | ||||||
24 | commissioner or his or her authorized representative.
The | ||||||
25 | commission, may, from time to time, alter, amend or repeal, | ||||||
26 | in whole
or in part, any uniform system of accounts, or the |
| |||||||
| |||||||
1 | form and manner of
keeping accounts.
| ||||||
2 | (8) In the conduct of any hearing authorized to be held | ||||||
3 | by the
commission, to appoint, at the commission's | ||||||
4 | discretion, hearing officers
to conduct hearings involving | ||||||
5 | complex issues or issues that will require a
protracted | ||||||
6 | period of time to resolve, to examine, or cause to be | ||||||
7 | examined,
under oath, any licensee, and to examine or cause | ||||||
8 | to be examined the books and
records
of such licensee; to | ||||||
9 | hear testimony and take proof material for its
information | ||||||
10 | in the discharge of its duties hereunder; to administer or
| ||||||
11 | cause to be administered oaths; for any such purpose to | ||||||
12 | issue
subpoena or subpoenas to require the attendance of | ||||||
13 | witnesses and the
production of books, which shall be | ||||||
14 | effective in any part of this State, and
to adopt rules to | ||||||
15 | implement its powers under this paragraph (8).
| ||||||
16 | Any Circuit Court may by order duly entered,
require | ||||||
17 | the attendance of witnesses and the production of relevant | ||||||
18 | books
subpoenaed by the State commission and the court may | ||||||
19 | compel
obedience to its order by proceedings for contempt.
| ||||||
20 | (9) To investigate the administration of laws in | ||||||
21 | relation to
alcoholic liquors in this and other states and | ||||||
22 | any foreign countries,
and to recommend from time to time | ||||||
23 | to the Governor and through him or
her to the legislature | ||||||
24 | of this State, such amendments to this Act, if any, as
it | ||||||
25 | may think desirable and as will serve to further the | ||||||
26 | general broad
purposes contained in Section 1-2 hereof.
|
| |||||||
| |||||||
1 | (10) To adopt such rules and regulations consistent | ||||||
2 | with the
provisions of this Act which shall be necessary | ||||||
3 | for the control, sale or
disposition of alcoholic liquor | ||||||
4 | damaged as a result of an accident, wreck,
flood, fire or | ||||||
5 | other similar occurrence.
| ||||||
6 | (11) To develop industry educational programs related | ||||||
7 | to responsible
serving and selling, particularly in the | ||||||
8 | areas of overserving consumers and
illegal underage | ||||||
9 | purchasing and consumption of alcoholic beverages.
| ||||||
10 | (11.1) To license persons providing education and | ||||||
11 | training to alcohol
beverage sellers and servers for | ||||||
12 | mandatory and non-mandatory training under the
Beverage | ||||||
13 | Alcohol Sellers and Servers
Education and Training | ||||||
14 | (BASSET) programs and to develop and administer a public
| ||||||
15 | awareness program in Illinois to reduce or eliminate the | ||||||
16 | illegal purchase and
consumption of alcoholic beverage | ||||||
17 | products by persons under the age of 21.
Application for a | ||||||
18 | license shall be made on forms provided by the State
| ||||||
19 | Commission.
| ||||||
20 | (12) To develop and maintain a repository of license | ||||||
21 | and regulatory
information.
| ||||||
22 | (13) On or before January 15, 1994, the Commission | ||||||
23 | shall issue
a written report to the Governor and General | ||||||
24 | Assembly that is to be based on a
comprehensive study of | ||||||
25 | the impact on and implications for the State of Illinois
of | ||||||
26 | Section 1926 of the Federal ADAMHA Reorganization Act of |
| |||||||
| |||||||
1 | 1992 (Public Law
102-321). This study shall address the | ||||||
2 | extent to which Illinois currently
complies with the | ||||||
3 | provisions of P.L. 102-321 and the rules promulgated | ||||||
4 | pursuant
thereto.
| ||||||
5 | As part of its report, the Commission shall provide the | ||||||
6 | following essential
information:
| ||||||
7 | (i) the number of retail distributors of tobacco | ||||||
8 | products, by type and
geographic area, in the State;
| ||||||
9 | (ii) the number of reported citations and | ||||||
10 | successful convictions,
categorized by type and | ||||||
11 | location of retail distributor, for violation of the
| ||||||
12 | Prevention of Tobacco Use by Minors and Sale and | ||||||
13 | Distribution of Tobacco Products Act and the Smokeless
| ||||||
14 | Tobacco Limitation Act;
| ||||||
15 | (iii) the extent and nature of organized | ||||||
16 | educational and governmental
activities that are | ||||||
17 | intended to promote, encourage or otherwise secure
| ||||||
18 | compliance with any Illinois laws that prohibit the | ||||||
19 | sale or distribution of
tobacco products to minors; and
| ||||||
20 | (iv) the level of access and availability of | ||||||
21 | tobacco products to
individuals under the age of 18.
| ||||||
22 | To obtain the data necessary to comply with the | ||||||
23 | provisions of P.L. 102-321
and the requirements of this | ||||||
24 | report, the Commission shall conduct random,
unannounced | ||||||
25 | inspections of a geographically and scientifically | ||||||
26 | representative
sample of the State's retail tobacco |
| |||||||
| |||||||
1 | distributors.
| ||||||
2 | The Commission shall consult with the Department of | ||||||
3 | Public Health, the
Department of Human Services, the
| ||||||
4 | Illinois State Police and any
other executive branch | ||||||
5 | agency, and private organizations that may have
| ||||||
6 | information relevant to this report.
| ||||||
7 | The Commission may contract with the Food and Drug | ||||||
8 | Administration of the
U.S. Department of Health and Human | ||||||
9 | Services to conduct unannounced
investigations of Illinois | ||||||
10 | tobacco vendors to determine compliance with federal
laws | ||||||
11 | relating to the illegal sale of cigarettes and smokeless | ||||||
12 | tobacco products
to persons under the age of 18.
| ||||||
13 | (14) On or before April 30, 2008 and every 2 years
| ||||||
14 | thereafter, the Commission shall present a written
report | ||||||
15 | to the Governor and the General Assembly that shall
be | ||||||
16 | based on a study of the impact of this amendatory Act of
| ||||||
17 | the 95th General Assembly on the business of soliciting,
| ||||||
18 | selling, and shipping wine from inside and outside of this
| ||||||
19 | State directly to residents of this State. As part of its
| ||||||
20 | report, the Commission shall provide all of the
following | ||||||
21 | information: | ||||||
22 | (A) The amount of State excise and sales tax
| ||||||
23 | revenues generated. | ||||||
24 | (B) The amount of licensing fees received. | ||||||
25 | (C) The number of cases of wine shipped from inside
| ||||||
26 | and outside of this State directly to residents of this
|
| |||||||
| |||||||
1 | State. | ||||||
2 | (D) The number of alcohol compliance operations
| ||||||
3 | conducted. | ||||||
4 | (E) The number of winery shipper's licenses
| ||||||
5 | issued. | ||||||
6 | (F) The number of each of the following: reported
| ||||||
7 | violations; cease and desist notices issued by the
| ||||||
8 | Commission; notices of violations issued by
the | ||||||
9 | Commission and to the Department of Revenue;
and | ||||||
10 | notices and complaints of violations to law
| ||||||
11 | enforcement officials, including, without limitation,
| ||||||
12 | the Illinois Attorney General and the U.S. Department
| ||||||
13 | of Treasury's Alcohol and Tobacco Tax and Trade Bureau. | ||||||
14 | (15) As a means to reduce the underage consumption of
| ||||||
15 | alcoholic liquors, the Commission shall conduct
alcohol | ||||||
16 | compliance operations to investigate whether
businesses | ||||||
17 | that are soliciting, selling, and shipping wine
from inside | ||||||
18 | or outside of this State directly to residents
of this | ||||||
19 | State are licensed by this State or are selling or
| ||||||
20 | attempting to sell wine to persons under 21 years of age in
| ||||||
21 | violation of this Act. | ||||||
22 | (16) The Commission shall, in addition to
notifying any | ||||||
23 | appropriate law enforcement agency, submit
notices of | ||||||
24 | complaints or violations of Sections 6-29 and
6-29.1 by | ||||||
25 | persons who do not hold a winery shipper's
license under | ||||||
26 | this amendatory Act to the Illinois Attorney General and
to |
| |||||||
| |||||||
1 | the U.S. Department of Treasury's Alcohol and Tobacco Tax | ||||||
2 | and Trade Bureau. | ||||||
3 | (17) (A) A person licensed to make wine under the laws | ||||||
4 | of another state who has a winery shipper's license under | ||||||
5 | this amendatory Act and annually produces less than 25,000 | ||||||
6 | gallons of wine or a person who has a first-class or | ||||||
7 | second-class wine manufacturer's license, a first-class or | ||||||
8 | second-class wine-maker's license, or a limited wine | ||||||
9 | manufacturer's license under this Act and annually | ||||||
10 | produces less than 25,000 gallons of wine may make | ||||||
11 | application to the Commission for a self-distribution | ||||||
12 | exemption to allow the sale of not more than 5,000 gallons | ||||||
13 | of the exemption holder's wine to retail licensees per | ||||||
14 | year. | ||||||
15 | (B) In the application, which shall be sworn under | ||||||
16 | penalty of perjury, such person shall state (1) the | ||||||
17 | date it was established; (2) its volume of production | ||||||
18 | and sales for each year since its establishment; (3) | ||||||
19 | its efforts to establish distributor relationships; | ||||||
20 | (4) that a self-distribution exemption is necessary to | ||||||
21 | facilitate the marketing of its wine; and (5) that it | ||||||
22 | will comply with the liquor and revenue laws of the | ||||||
23 | United States, this State, and any other state where it | ||||||
24 | is licensed. | ||||||
25 | (C) The Commission shall approve the application | ||||||
26 | for a self-distribution exemption if such person: (1) |
| |||||||
| |||||||
1 | is in compliance with State revenue and liquor laws; | ||||||
2 | (2) is not a member of any affiliated group that | ||||||
3 | produces more than 25,000 gallons of wine per annum or | ||||||
4 | produces any other alcoholic liquor; (3) will not | ||||||
5 | annually produce for sale more than 25,000 gallons of | ||||||
6 | wine; and (4) will not annually sell more than 5,000 | ||||||
7 | gallons of its wine to retail licensees. | ||||||
8 | (D) A self-distribution exemption holder shall | ||||||
9 | annually certify to the Commission its production of | ||||||
10 | wine in the previous 12 months and its anticipated | ||||||
11 | production and sales for the next 12 months. The | ||||||
12 | Commission may fine, suspend, or revoke a | ||||||
13 | self-distribution exemption after a hearing if it | ||||||
14 | finds that the exemption holder has made a material | ||||||
15 | misrepresentation in its application, violated a | ||||||
16 | revenue or liquor law of Illinois, exceeded production | ||||||
17 | of 25,000 gallons of wine in any calendar year, or | ||||||
18 | become part of an affiliated group producing more than | ||||||
19 | 25,000 gallons of wine or any other alcoholic liquor. | ||||||
20 | (E) Except in hearings for violations of this Act | ||||||
21 | or amendatory Act or a bona fide investigation by duly | ||||||
22 | sworn law enforcement officials, the Commission, or | ||||||
23 | its agents, the Commission shall maintain the | ||||||
24 | production and sales information of a | ||||||
25 | self-distribution exemption holder as confidential and | ||||||
26 | shall not release such information to any person. |
| |||||||
| |||||||
1 | (F) The Commission shall issue regulations | ||||||
2 | governing self-distribution exemptions consistent with | ||||||
3 | this Section and this Act. | ||||||
4 | (G) Nothing in this subsection (17) shall prohibit | ||||||
5 | a self-distribution exemption holder from entering | ||||||
6 | into or simultaneously having a distribution agreement | ||||||
7 | with a licensed Illinois distributor. | ||||||
8 | (H) It is the intent of this subsection (17) to | ||||||
9 | promote and continue orderly markets. The General | ||||||
10 | Assembly finds that in order to preserve Illinois' | ||||||
11 | regulatory distribution system it is necessary to | ||||||
12 | create an exception for smaller makers of wine as their | ||||||
13 | wines are frequently adjusted in varietals, mixes, | ||||||
14 | vintages, and taste to find and create market niches | ||||||
15 | sometimes too small for distributor or importing | ||||||
16 | distributor business strategies. Limited | ||||||
17 | self-distribution rights will afford and allow smaller | ||||||
18 | makers of wine access to the marketplace in order to | ||||||
19 | develop a customer base without impairing the | ||||||
20 | integrity of the 3-tier system.
| ||||||
21 | (18) (A) A class 1 craft brewer licensee, who must also | ||||||
22 | be either a licensed brewer or licensed non-resident dealer | ||||||
23 | and annually manufacture less than 930,000 gallons of beer, | ||||||
24 | may make application to the State Commission for a | ||||||
25 | self-distribution exemption to allow the sale of not more | ||||||
26 | than 232,500 gallons of the exemption holder's beer to |
| |||||||
| |||||||
1 | retail licensees per year. | ||||||
2 | (B) In the application, which shall be sworn under | ||||||
3 | penalty of perjury, the class 1 craft brewer licensee | ||||||
4 | shall state (1) the date it was established; (2) its | ||||||
5 | volume of beer manufactured and sold for each year | ||||||
6 | since its establishment; (3) its efforts to establish | ||||||
7 | distributor relationships; (4) that a | ||||||
8 | self-distribution exemption is necessary to facilitate | ||||||
9 | the marketing of its beer; and (5) that it will comply | ||||||
10 | with the alcoholic beverage and revenue laws of the | ||||||
11 | United States, this State, and any other state where it | ||||||
12 | is licensed. | ||||||
13 | (C) Any application submitted shall be posted on | ||||||
14 | the State Commission's website at least 45 days prior | ||||||
15 | to action by the State Commission. The State Commission | ||||||
16 | shall approve the application for a self-distribution | ||||||
17 | exemption if the class 1 craft brewer licensee: (1) is | ||||||
18 | in compliance with the State, revenue, and alcoholic | ||||||
19 | beverage laws; (2) is not a member of any affiliated | ||||||
20 | group that manufacturers more than 930,000 gallons of | ||||||
21 | beer per annum or produces any other alcoholic | ||||||
22 | beverages; (3) shall not annually manufacture for sale | ||||||
23 | more than 930,000 gallons of beer; and (4) shall not | ||||||
24 | annually sell more than 232,500 gallons of its beer to | ||||||
25 | retail licensees ; and (5) has relinquished any brew pub | ||||||
26 | license held by the licensee, including any ownership |
| |||||||
| |||||||
1 | interest it held in the licensed brew pub . | ||||||
2 | (D) A self-distribution exemption holder shall | ||||||
3 | annually certify to the State Commission its | ||||||
4 | manufacture of beer during the previous 12 months and | ||||||
5 | its anticipated manufacture and sales of beer for the | ||||||
6 | next 12 months. The State Commission may fine, suspend, | ||||||
7 | or revoke a self-distribution exemption after a | ||||||
8 | hearing if it finds that the exemption holder has made | ||||||
9 | a material misrepresentation in its application, | ||||||
10 | violated a revenue or alcoholic beverage law of | ||||||
11 | Illinois, exceeded the manufacture of 930,000 gallons | ||||||
12 | of beer in any calendar year or became part of an | ||||||
13 | affiliated group manufacturing more than 930,000 | ||||||
14 | gallons of beer or any other alcoholic beverage. | ||||||
15 | (E) The State Commission shall issue rules and | ||||||
16 | regulations governing self-distribution exemptions | ||||||
17 | consistent with this Act. | ||||||
18 | (F) Nothing in this paragraph (18) shall prohibit a | ||||||
19 | self-distribution exemption holder from entering into | ||||||
20 | or simultaneously having a distribution agreement with | ||||||
21 | a licensed Illinois importing distributor or a | ||||||
22 | distributor. If a self-distribution exemption holder | ||||||
23 | enters into a distribution agreement and has assigned | ||||||
24 | distribution rights to an importing distributor or | ||||||
25 | distributor, then the self-distribution exemption | ||||||
26 | holder's distribution rights in the assigned |
| |||||||
| |||||||
1 | territories shall cease in a reasonable time not to | ||||||
2 | exceed 60 days. | ||||||
3 | (G) It is the intent of this paragraph (18) to | ||||||
4 | promote and continue orderly markets. The General | ||||||
5 | Assembly finds that in order to preserve Illinois' | ||||||
6 | regulatory distribution system, it is necessary to | ||||||
7 | create an exception for smaller manufacturers in order | ||||||
8 | to afford and allow such smaller manufacturers of beer | ||||||
9 | access to the marketplace in order to develop a | ||||||
10 | customer base without impairing the integrity of the | ||||||
11 | 3-tier system. | ||||||
12 | (b) On or before April 30, 1999, the Commission shall | ||||||
13 | present a written
report to the Governor and the General | ||||||
14 | Assembly that shall be based on a study
of the impact of this | ||||||
15 | amendatory Act of 1998 on the business of soliciting,
selling, | ||||||
16 | and shipping
alcoholic liquor from outside of this State | ||||||
17 | directly to residents of this
State.
| ||||||
18 | As part of its report, the Commission shall provide the | ||||||
19 | following
information:
| ||||||
20 | (i) the amount of State excise and sales tax revenues | ||||||
21 | generated as a
result of this amendatory Act of 1998;
| ||||||
22 | (ii) the amount of licensing fees received as a result | ||||||
23 | of this amendatory
Act of 1998;
| ||||||
24 | (iii) the number of reported violations, the number of | ||||||
25 | cease and desist
notices issued by the Commission, the | ||||||
26 | number of notices of violations issued
to the Department of |
| |||||||
| |||||||
1 | Revenue, and the number of notices and complaints of
| ||||||
2 | violations to law enforcement officials.
| ||||||
3 | (Source: P.A. 97-5, eff. 6-1-11; 98-401, eff. 8-16-13; 98-939, | ||||||
4 | eff. 7-1-15; 98-941, eff. 1-1-15; revised 10-6-14.)
| ||||||
5 | (235 ILCS 5/5-1) (from Ch. 43, par. 115) | ||||||
6 | Sec. 5-1. Licenses issued by the Illinois Liquor Control | ||||||
7 | Commission
shall be of the following classes: | ||||||
8 | (a) Manufacturer's license - Class 1.
Distiller, Class 2. | ||||||
9 | Rectifier, Class 3. Brewer, Class 4. First Class Wine
| ||||||
10 | Manufacturer, Class 5. Second Class Wine Manufacturer,
Class 6. | ||||||
11 | First Class Winemaker, Class 7. Second Class Winemaker, Class | ||||||
12 | 8.
Limited Wine Manufacturer, Class 9. Craft Distiller, Class | ||||||
13 | 10. Class 1 Craft Brewer, Class 11. Class 2 Brewer, | ||||||
14 | (b) Distributor's license, | ||||||
15 | (c) Importing Distributor's license, | ||||||
16 | (d) Retailer's license, | ||||||
17 | (e) Special Event Retailer's license (not-for-profit), | ||||||
18 | (f) Railroad license, | ||||||
19 | (g) Boat license, | ||||||
20 | (h) Non-Beverage User's license, | ||||||
21 | (i) Wine-maker's premises license, | ||||||
22 | (j) Airplane license, | ||||||
23 | (k) Foreign importer's license, | ||||||
24 | (l) Broker's license, | ||||||
25 | (m) Non-resident dealer's
license, |
| |||||||
| |||||||
1 | (n) Brew Pub license, | ||||||
2 | (o) Auction liquor license, | ||||||
3 | (p) Caterer retailer license, | ||||||
4 | (q) Special use permit license, | ||||||
5 | (r) Winery shipper's license.
| ||||||
6 | No
person, firm, partnership, corporation, or other legal | ||||||
7 | business entity that is
engaged in the manufacturing of wine | ||||||
8 | may concurrently obtain and hold a
wine-maker's license and a | ||||||
9 | wine manufacturer's license. | ||||||
10 | (a) A manufacturer's license shall allow the manufacture,
| ||||||
11 | importation in bulk, storage, distribution and sale of | ||||||
12 | alcoholic liquor
to persons without the State, as may be | ||||||
13 | permitted by law and to licensees
in this State as follows: | ||||||
14 | Class 1. A Distiller may make sales and deliveries of | ||||||
15 | alcoholic liquor to
distillers, rectifiers, importing | ||||||
16 | distributors, distributors and
non-beverage users and to no | ||||||
17 | other licensees. | ||||||
18 | Class 2. A Rectifier, who is not a distiller, as defined | ||||||
19 | herein, may make
sales and deliveries of alcoholic liquor to | ||||||
20 | rectifiers, importing distributors,
distributors, retailers | ||||||
21 | and non-beverage users and to no other licensees. | ||||||
22 | Class 3. A Brewer may make sales and deliveries of beer to | ||||||
23 | importing
distributors and distributors and may make sales as | ||||||
24 | authorized under subsection (e) of Section 6-4 of this Act. | ||||||
25 | Class 4. A first class wine-manufacturer may make sales and | ||||||
26 | deliveries of
up to 50,000 gallons of wine to manufacturers,
|
| |||||||
| |||||||
1 | importing
distributors and distributors, and to no other | ||||||
2 | licensees. | ||||||
3 | Class 5. A second class Wine manufacturer may make sales | ||||||
4 | and deliveries
of more than 50,000 gallons of wine to | ||||||
5 | manufacturers, importing distributors
and distributors and to | ||||||
6 | no other licensees. | ||||||
7 | Class 6. A first-class wine-maker's license shall allow the | ||||||
8 | manufacture
of up to 50,000 gallons of wine per year, and the
| ||||||
9 | storage
and sale of such
wine to distributors in the State and | ||||||
10 | to persons without the
State, as may be permitted by law. A | ||||||
11 | person who, prior to the effective date of this amendatory Act | ||||||
12 | of the 95th General Assembly, is a holder of a first-class | ||||||
13 | wine-maker's license and annually produces more than 25,000 | ||||||
14 | gallons of its own wine and who distributes its wine to | ||||||
15 | licensed retailers shall cease this practice on or before July | ||||||
16 | 1, 2008 in compliance with this amendatory Act of the 95th | ||||||
17 | General Assembly. | ||||||
18 | Class 7. A second-class wine-maker's license shall allow | ||||||
19 | the manufacture
of between 50,000 and 150,000 gallons of wine | ||||||
20 | per year, and
the
storage and sale of such wine
to distributors | ||||||
21 | in this State and to persons without the State, as may be
| ||||||
22 | permitted by law. A person who, prior to the effective date of | ||||||
23 | this amendatory Act of the 95th General Assembly, is a holder | ||||||
24 | of a second-class wine-maker's license and annually produces | ||||||
25 | more than 25,000 gallons of its own wine and who distributes | ||||||
26 | its wine to licensed retailers shall cease this practice on or |
| |||||||
| |||||||
1 | before July 1, 2008 in compliance with this amendatory Act of | ||||||
2 | the 95th General Assembly. | ||||||
3 | Class 8. A limited wine-manufacturer may make sales and | ||||||
4 | deliveries not to
exceed 40,000 gallons of wine per year to | ||||||
5 | distributors, and to
non-licensees in accordance with the | ||||||
6 | provisions of this Act. | ||||||
7 | Class 9. A craft distiller license shall allow the | ||||||
8 | manufacture of up to 30,000 gallons of spirits by distillation | ||||||
9 | for one year after the effective date of this amendatory Act of | ||||||
10 | the 97th General Assembly and up to 35,000 gallons of spirits | ||||||
11 | by distillation per year thereafter and the storage of such | ||||||
12 | spirits. If a craft distiller licensee is not affiliated with | ||||||
13 | any other manufacturer, then the craft distiller licensee may | ||||||
14 | sell such spirits to distributors in this State and up to 2,500 | ||||||
15 | gallons of such spirits to non-licensees to the extent | ||||||
16 | permitted by any exemption approved by the Commission pursuant | ||||||
17 | to Section 6-4 of this Act. | ||||||
18 | Any craft distiller licensed under this Act who on the | ||||||
19 | effective date of this amendatory Act of the 96th General | ||||||
20 | Assembly was licensed as a distiller and manufactured no more | ||||||
21 | spirits than permitted by this Section shall not be required to | ||||||
22 | pay the initial licensing fee. | ||||||
23 | Class 10. A class 1 brewer craft brewer's license, which | ||||||
24 | may only be issued to a licensed brewer or licensed | ||||||
25 | non-resident dealer, shall allow the manufacture of up to | ||||||
26 | 930,000 gallons of beer per year provided that the class 1 |
| |||||||
| |||||||
1 | brewer licensee does not manufacture more than a combined | ||||||
2 | 930,000 gallons of beer per year and is not a member of or | ||||||
3 | affiliated with, directly or indirectly, a manufacturer that | ||||||
4 | produces more than 930,000 gallons of beer per year or any | ||||||
5 | other alcoholic liquor . A class 1 craft brewer licensee may | ||||||
6 | make sales and deliveries to importing distributors and | ||||||
7 | distributors and to retail licensees in accordance with the | ||||||
8 | conditions set forth in paragraph (18) of subsection (a) of | ||||||
9 | Section 3-12 of this Act. | ||||||
10 | Class 11. A class 2 brewer license, which may only be | ||||||
11 | issued to a licensed brewer or licensed non-resident dealer, | ||||||
12 | shall allow the manufacture of up to 3,720,000 gallons of beer | ||||||
13 | per year provided that the class 2 brewer licensee does not | ||||||
14 | manufacture more than a combined 3,720,000 gallons of beer per | ||||||
15 | year and is not a member of or affiliated with, directly or | ||||||
16 | indirectly, a manufacturer that produces more than 3,720,000 | ||||||
17 | gallons of beer per year or any other alcoholic liquor. A class | ||||||
18 | 2 brewer licensee may make sales and deliveries to importing | ||||||
19 | distributors and distributors, but shall not make sales or | ||||||
20 | deliveries to any other licensee. If the State Commission | ||||||
21 | provides prior approval, a class 2 brewer licensee may annually | ||||||
22 | transfer up to 3,720,000 gallons of beer manufactured by that | ||||||
23 | class 2 brewer licensee to the premises of a licensed class 2 | ||||||
24 | brewer wholly owned and operated by the same licensee. | ||||||
25 | (a-1) A manufacturer which is licensed in this State to | ||||||
26 | make sales or
deliveries of alcoholic liquor to licensed |
| |||||||
| |||||||
1 | distributors or importing distributors and which enlists | ||||||
2 | agents, representatives, or
individuals acting on its behalf | ||||||
3 | who contact licensed retailers on a regular
and continual basis | ||||||
4 | in this State must register those agents, representatives,
or | ||||||
5 | persons acting on its behalf with the State Commission. | ||||||
6 | Registration of agents, representatives, or persons acting | ||||||
7 | on behalf of a
manufacturer is fulfilled by submitting a form | ||||||
8 | to the Commission. The form
shall be developed by the | ||||||
9 | Commission and shall include the name and address of
the | ||||||
10 | applicant, the name and address of the manufacturer he or she | ||||||
11 | represents,
the territory or areas assigned to sell to or | ||||||
12 | discuss pricing terms of
alcoholic liquor, and any other | ||||||
13 | questions deemed appropriate and necessary.
All statements in | ||||||
14 | the forms required to be made by law or by rule shall be
deemed | ||||||
15 | material, and any person who knowingly misstates any material | ||||||
16 | fact under
oath in an application is guilty of a Class B | ||||||
17 | misdemeanor. Fraud,
misrepresentation, false statements, | ||||||
18 | misleading statements, evasions, or
suppression of material | ||||||
19 | facts in the securing of a registration are grounds for
| ||||||
20 | suspension or revocation of the registration. The State | ||||||
21 | Commission shall post a list of registered agents on the | ||||||
22 | Commission's website. | ||||||
23 | (b) A distributor's license shall allow the wholesale | ||||||
24 | purchase and storage
of alcoholic liquors and sale of alcoholic | ||||||
25 | liquors to licensees
in this State and to persons without the | ||||||
26 | State, as may be permitted by law. |
| |||||||
| |||||||
1 | (c) An importing distributor's license may be issued to and | ||||||
2 | held by
those only who are duly licensed distributors, upon the | ||||||
3 | filing of an
application by a duly licensed distributor, with | ||||||
4 | the Commission and
the Commission shall, without the
payment of | ||||||
5 | any fee, immediately issue such importing distributor's
| ||||||
6 | license to the applicant, which shall allow the importation of | ||||||
7 | alcoholic
liquor by the licensee into this State from any point | ||||||
8 | in the United
States outside this State, and the purchase of | ||||||
9 | alcoholic liquor in
barrels, casks or other bulk containers and | ||||||
10 | the bottling of such
alcoholic liquors before resale thereof, | ||||||
11 | but all bottles or containers
so filled shall be sealed, | ||||||
12 | labeled, stamped and otherwise made to comply
with all | ||||||
13 | provisions, rules and regulations governing manufacturers in
| ||||||
14 | the preparation and bottling of alcoholic liquors. The | ||||||
15 | importing
distributor's license shall permit such licensee to | ||||||
16 | purchase alcoholic
liquor from Illinois licensed non-resident | ||||||
17 | dealers and foreign importers only. | ||||||
18 | (d) A retailer's license shall allow the licensee to sell | ||||||
19 | and offer
for sale at retail, only in the premises specified in | ||||||
20 | the license,
alcoholic liquor for use or consumption, but not | ||||||
21 | for resale in any form. Nothing in this amendatory Act of the | ||||||
22 | 95th General Assembly shall deny, limit, remove, or restrict | ||||||
23 | the ability of a holder of a retailer's license to transfer, | ||||||
24 | deliver, or ship alcoholic liquor to the purchaser for use or | ||||||
25 | consumption subject to any applicable local law or ordinance. | ||||||
26 | Any retail license issued to a manufacturer shall only
permit |
| |||||||
| |||||||
1 | the manufacturer to sell beer at retail on the premises | ||||||
2 | actually
occupied by the manufacturer. For the purpose of | ||||||
3 | further describing the type of business conducted at a retail | ||||||
4 | licensed premises, a retailer's licensee may be designated by | ||||||
5 | the State Commission as (i) an on premise consumption retailer, | ||||||
6 | (ii) an off premise sale retailer, or (iii) a combined on | ||||||
7 | premise consumption and off premise sale retailer.
| ||||||
8 | Notwithstanding any other provision of this subsection | ||||||
9 | (d), a retail
licensee may sell alcoholic liquors to a special | ||||||
10 | event retailer licensee for
resale to the extent permitted | ||||||
11 | under subsection (e). | ||||||
12 | (e) A special event retailer's license (not-for-profit) | ||||||
13 | shall permit the
licensee to purchase alcoholic liquors from an | ||||||
14 | Illinois licensed distributor
(unless the licensee purchases | ||||||
15 | less than $500 of alcoholic liquors for the
special event, in | ||||||
16 | which case the licensee may purchase the alcoholic liquors
from | ||||||
17 | a licensed retailer) and shall allow the licensee to sell and | ||||||
18 | offer for
sale, at retail, alcoholic liquors for use or | ||||||
19 | consumption, but not for resale
in any form and only at the | ||||||
20 | location and on the specific dates designated for
the special | ||||||
21 | event in the license. An applicant for a special event retailer
| ||||||
22 | license must
(i) furnish with the application: (A) a resale | ||||||
23 | number issued under Section
2c of the Retailers' Occupation Tax | ||||||
24 | Act or evidence that the applicant is
registered under Section | ||||||
25 | 2a of the Retailers' Occupation Tax Act, (B) a
current, valid | ||||||
26 | exemption identification
number issued under Section 1g of the |
| |||||||
| |||||||
1 | Retailers' Occupation Tax Act, and a
certification to the | ||||||
2 | Commission that the purchase of alcoholic liquors will be
a | ||||||
3 | tax-exempt purchase, or (C) a statement that the applicant is | ||||||
4 | not registered
under Section 2a of the Retailers' Occupation | ||||||
5 | Tax Act, does not hold a resale
number under Section 2c of the | ||||||
6 | Retailers' Occupation Tax Act, and does not
hold an exemption | ||||||
7 | number under Section 1g of the Retailers' Occupation Tax
Act, | ||||||
8 | in which event the Commission shall set forth on the special | ||||||
9 | event
retailer's license a statement to that effect; (ii) | ||||||
10 | submit with the application proof satisfactory to
the State | ||||||
11 | Commission that the applicant will provide dram shop liability
| ||||||
12 | insurance in the maximum limits; and (iii) show proof | ||||||
13 | satisfactory to the
State Commission that the applicant has | ||||||
14 | obtained local authority
approval. | ||||||
15 | (f) A railroad license shall permit the licensee to import | ||||||
16 | alcoholic
liquors into this State from any point in the United | ||||||
17 | States outside this
State and to store such alcoholic liquors | ||||||
18 | in this State; to make wholesale
purchases of alcoholic liquors | ||||||
19 | directly from manufacturers, foreign
importers, distributors | ||||||
20 | and importing distributors from within or outside
this State; | ||||||
21 | and to store such alcoholic liquors in this State; provided
| ||||||
22 | that the above powers may be exercised only in connection with | ||||||
23 | the
importation, purchase or storage of alcoholic liquors to be | ||||||
24 | sold or
dispensed on a club, buffet, lounge or dining car | ||||||
25 | operated on an electric,
gas or steam railway in this State; | ||||||
26 | and provided further, that railroad
licensees exercising the |
| |||||||
| |||||||
1 | above powers shall be subject to all provisions of
Article VIII | ||||||
2 | of this Act as applied to importing distributors. A railroad
| ||||||
3 | license shall also permit the licensee to sell or dispense | ||||||
4 | alcoholic
liquors on any club, buffet, lounge or dining car | ||||||
5 | operated on an electric,
gas or steam railway regularly | ||||||
6 | operated by a common carrier in this State,
but shall not | ||||||
7 | permit the sale for resale of any alcoholic liquors to any
| ||||||
8 | licensee within this State. A license shall be obtained for | ||||||
9 | each car in which
such sales are made. | ||||||
10 | (g) A boat license shall allow the sale of alcoholic liquor | ||||||
11 | in
individual drinks, on any passenger boat regularly operated | ||||||
12 | as a common
carrier on navigable waters in this State or on any | ||||||
13 | riverboat operated
under
the Riverboat Gambling Act, which boat | ||||||
14 | or riverboat maintains a public
dining room or restaurant | ||||||
15 | thereon. | ||||||
16 | (h) A non-beverage user's license shall allow the licensee | ||||||
17 | to
purchase alcoholic liquor from a licensed manufacturer or | ||||||
18 | importing
distributor, without the imposition of any tax upon | ||||||
19 | the business of such
licensed manufacturer or importing | ||||||
20 | distributor as to such alcoholic
liquor to be used by such | ||||||
21 | licensee solely for the non-beverage purposes
set forth in | ||||||
22 | subsection (a) of Section 8-1 of this Act, and
such licenses | ||||||
23 | shall be divided and classified and shall permit the
purchase, | ||||||
24 | possession and use of limited and stated quantities of
| ||||||
25 | alcoholic liquor as follows: | ||||||
26 | Class 1, not to exceed ......................... 500 gallons
|
| |||||||
| |||||||
1 | Class 2, not to exceed ....................... 1,000 gallons
| ||||||
2 | Class 3, not to exceed ....................... 5,000 gallons
| ||||||
3 | Class 4, not to exceed ...................... 10,000 gallons
| ||||||
4 | Class 5, not to exceed ....................... 50,000 gallons | ||||||
5 | (i) A wine-maker's premises license shall allow a
licensee | ||||||
6 | that concurrently holds a first-class wine-maker's license to | ||||||
7 | sell
and offer for sale at retail in the premises specified in | ||||||
8 | such license
not more than 50,000 gallons of the first-class | ||||||
9 | wine-maker's wine that is
made at the first-class wine-maker's | ||||||
10 | licensed premises per year for use or
consumption, but not for | ||||||
11 | resale in any form. A wine-maker's premises
license shall allow | ||||||
12 | a licensee who concurrently holds a second-class
wine-maker's | ||||||
13 | license to sell and offer for sale at retail in the premises
| ||||||
14 | specified in such license up to 100,000 gallons of the
| ||||||
15 | second-class wine-maker's wine that is made at the second-class | ||||||
16 | wine-maker's
licensed premises per year
for use or consumption | ||||||
17 | but not for resale in any form. A wine-maker's premises license | ||||||
18 | shall allow a
licensee that concurrently holds a first-class | ||||||
19 | wine-maker's license or a second-class
wine-maker's license to | ||||||
20 | sell
and offer for sale at retail at the premises specified in | ||||||
21 | the wine-maker's premises license, for use or consumption but | ||||||
22 | not for resale in any form, any beer, wine, and spirits | ||||||
23 | purchased from a licensed distributor. Upon approval from the
| ||||||
24 | State Commission, a wine-maker's premises license
shall allow | ||||||
25 | the licensee to sell and offer for sale at (i) the wine-maker's
| ||||||
26 | licensed premises and (ii) at up to 2 additional locations for |
| |||||||
| |||||||
1 | use and
consumption and not for resale. Each location shall | ||||||
2 | require additional
licensing per location as specified in | ||||||
3 | Section 5-3 of this Act. A wine-maker's premises licensee shall
| ||||||
4 | secure liquor liability insurance coverage in an amount at
| ||||||
5 | least equal to the maximum liability amounts set forth in
| ||||||
6 | subsection (a) of Section 6-21 of this Act.
| ||||||
7 | (j) An airplane license shall permit the licensee to import
| ||||||
8 | alcoholic liquors into this State from any point in the United | ||||||
9 | States
outside this State and to store such alcoholic liquors | ||||||
10 | in this State; to
make wholesale purchases of alcoholic liquors | ||||||
11 | directly from
manufacturers, foreign importers, distributors | ||||||
12 | and importing
distributors from within or outside this State; | ||||||
13 | and to store such
alcoholic liquors in this State; provided | ||||||
14 | that the above powers may be
exercised only in connection with | ||||||
15 | the importation, purchase or storage
of alcoholic liquors to be | ||||||
16 | sold or dispensed on an airplane; and
provided further, that | ||||||
17 | airplane licensees exercising the above powers
shall be subject | ||||||
18 | to all provisions of Article VIII of this Act as
applied to | ||||||
19 | importing distributors. An airplane licensee shall also
permit | ||||||
20 | the sale or dispensing of alcoholic liquors on any passenger
| ||||||
21 | airplane regularly operated by a common carrier in this State, | ||||||
22 | but shall
not permit the sale for resale of any alcoholic | ||||||
23 | liquors to any licensee
within this State. A single airplane | ||||||
24 | license shall be required of an
airline company if liquor | ||||||
25 | service is provided on board aircraft in this
State. The annual | ||||||
26 | fee for such license shall be as determined in
Section 5-3. |
| |||||||
| |||||||
1 | (k) A foreign importer's license shall permit such licensee | ||||||
2 | to purchase
alcoholic liquor from Illinois licensed | ||||||
3 | non-resident dealers only, and to
import alcoholic liquor other | ||||||
4 | than in bulk from any point outside the
United States and to | ||||||
5 | sell such alcoholic liquor to Illinois licensed
importing | ||||||
6 | distributors and to no one else in Illinois;
provided that (i) | ||||||
7 | the foreign importer registers with the State Commission
every
| ||||||
8 | brand of
alcoholic liquor that it proposes to sell to Illinois | ||||||
9 | licensees during the
license period, (ii) the foreign importer | ||||||
10 | complies with all of the provisions
of Section
6-9 of this Act | ||||||
11 | with respect to registration of such Illinois licensees as may
| ||||||
12 | be granted the
right to sell such brands at wholesale, and | ||||||
13 | (iii) the foreign importer complies with the provisions of | ||||||
14 | Sections 6-5 and 6-6 of this Act to the same extent that these | ||||||
15 | provisions apply to manufacturers. | ||||||
16 | (l) (i) A broker's license shall be required of all persons
| ||||||
17 | who solicit
orders for, offer to sell or offer to supply | ||||||
18 | alcoholic liquor to
retailers in the State of Illinois, or who | ||||||
19 | offer to retailers to ship or
cause to be shipped or to make | ||||||
20 | contact with distillers, rectifiers,
brewers or manufacturers | ||||||
21 | or any other party within or without the State
of Illinois in | ||||||
22 | order that alcoholic liquors be shipped to a distributor,
| ||||||
23 | importing distributor or foreign importer, whether such | ||||||
24 | solicitation or
offer is consummated within or without the | ||||||
25 | State of Illinois. | ||||||
26 | No holder of a retailer's license issued by the Illinois |
| |||||||
| |||||||
1 | Liquor
Control Commission shall purchase or receive any | ||||||
2 | alcoholic liquor, the
order for which was solicited or offered | ||||||
3 | for sale to such retailer by a
broker unless the broker is the | ||||||
4 | holder of a valid broker's license. | ||||||
5 | The broker shall, upon the acceptance by a retailer of the | ||||||
6 | broker's
solicitation of an order or offer to sell or supply or | ||||||
7 | deliver or have
delivered alcoholic liquors, promptly forward | ||||||
8 | to the Illinois Liquor
Control Commission a notification of | ||||||
9 | said transaction in such form as
the Commission may by | ||||||
10 | regulations prescribe. | ||||||
11 | (ii) A broker's license shall be required of
a person | ||||||
12 | within this State, other than a retail licensee,
who, for a fee | ||||||
13 | or commission, promotes, solicits, or accepts orders for
| ||||||
14 | alcoholic liquor, for use or consumption and not for
resale, to | ||||||
15 | be shipped from this State and delivered to residents outside | ||||||
16 | of
this State by an express company, common carrier, or | ||||||
17 | contract carrier.
This Section does not apply to any person who | ||||||
18 | promotes, solicits, or accepts
orders for wine as specifically | ||||||
19 | authorized in Section 6-29 of this Act. | ||||||
20 | A broker's license under this subsection (l)
shall not | ||||||
21 | entitle the holder to
buy or sell any
alcoholic liquors for his | ||||||
22 | own account or to take or deliver title to
such alcoholic | ||||||
23 | liquors. | ||||||
24 | This subsection (l)
shall not apply to distributors, | ||||||
25 | employees of
distributors, or employees of a manufacturer who | ||||||
26 | has registered the
trademark, brand or name of the alcoholic |
| |||||||
| |||||||
1 | liquor pursuant to Section 6-9
of this Act, and who regularly | ||||||
2 | sells such alcoholic liquor
in the State of Illinois only to | ||||||
3 | its registrants thereunder. | ||||||
4 | Any agent, representative, or person subject to | ||||||
5 | registration pursuant to
subsection (a-1) of this Section shall | ||||||
6 | not be eligible to receive a broker's
license. | ||||||
7 | (m) A non-resident dealer's license shall permit such | ||||||
8 | licensee to ship
into and warehouse alcoholic liquor into this | ||||||
9 | State from any point
outside of this State, and to sell such | ||||||
10 | alcoholic liquor to Illinois licensed
foreign importers and | ||||||
11 | importing distributors and to no one else in this State;
| ||||||
12 | provided that (i) said non-resident dealer shall register with | ||||||
13 | the Illinois Liquor
Control Commission each and every brand of | ||||||
14 | alcoholic liquor which it proposes
to sell to Illinois | ||||||
15 | licensees during the license period, (ii) it shall comply with | ||||||
16 | all of the provisions of Section 6-9 hereof with
respect to | ||||||
17 | registration of such Illinois licensees as may be granted the | ||||||
18 | right
to sell such brands at wholesale, and (iii) the | ||||||
19 | non-resident dealer shall comply with the provisions of | ||||||
20 | Sections 6-5 and 6-6 of this Act to the same extent that these | ||||||
21 | provisions apply to manufacturers. | ||||||
22 | (n) A brew pub license shall allow the licensee to only (i) | ||||||
23 | to manufacture up to 155,000 gallons of beer per year only
on | ||||||
24 | the premises specified in the license, (ii) to make sales of | ||||||
25 | the
beer manufactured on the premises or, with the approval of | ||||||
26 | the Commission, beer manufactured on another brew pub licensed |
| |||||||
| |||||||
1 | premises that is wholly substantially owned and operated by the | ||||||
2 | same licensee to importing distributors, distributors,
and to | ||||||
3 | non-licensees for use and consumption, (iii) to store the beer | ||||||
4 | upon
the premises, and (iv) to sell and offer for sale at | ||||||
5 | retail from the licensed
premises , provided that a brew pub | ||||||
6 | licensee shall not sell for off-premises
consumption no more | ||||||
7 | than 155,000 50,000 gallons per year so long as such sales are | ||||||
8 | only made in-person, (v) sell and offer for sale at retail for | ||||||
9 | use and consumption on the premises specified in the license | ||||||
10 | any form of alcoholic liquor purchased from a licensed | ||||||
11 | distributor or importing distributor, and (vi) with the prior | ||||||
12 | approval of the Commission, annually transfer no more than | ||||||
13 | 155,000 gallons of beer manufactured on the premises to a | ||||||
14 | licensed brew pub wholly owned and operated by the same | ||||||
15 | licensee . | ||||||
16 | A brew pub licensee shall not under any circumstance sell | ||||||
17 | or offer for sale beer manufactured by the brew pub licensee to | ||||||
18 | retail licensees. | ||||||
19 | A person who holds a class 2 brewer license may | ||||||
20 | simultaneously hold a brew pub license if the class 2 brewer | ||||||
21 | (i) does not, under any circumstance, sell or offer for sale | ||||||
22 | beer manufactured by the class 2 brewer to retail licensees; | ||||||
23 | (ii) does not hold more than 3 brew pub licenses in this State; | ||||||
24 | (iii) does not manufacture more than a combined 3,720,000 | ||||||
25 | gallons of beer per year, including the beer manufactured at | ||||||
26 | the brew pub; and (iv) is not a member of or affiliated with, |
| |||||||
| |||||||
1 | directly or indirectly, a manufacturer that produces more than | ||||||
2 | 3,720,000 gallons of beer per year or any other alcoholic | ||||||
3 | liquor. | ||||||
4 | Notwithstanding any other provision of this Act, a licensed | ||||||
5 | brewer, class 2 brewer, or non-resident dealer who before July | ||||||
6 | 1, 2015 manufactured less than than 3,720,000 gallons of beer | ||||||
7 | per year and held a brew pub license on or before July 1, 2015 | ||||||
8 | may (i) continue to qualify for and hold that brew pub license | ||||||
9 | for the licensed premises and (ii) manufacture more than | ||||||
10 | 3,720,000 gallons of beer per year and continue to qualify for | ||||||
11 | and hold that brew pub license if that brewer, class 2 brewer, | ||||||
12 | or non-resident dealer does not simultaneously hold a class 1 | ||||||
13 | brewer license and is not a member of or affiliated with, | ||||||
14 | directly or indirectly, a manufacturer that produces more than | ||||||
15 | 3,720,000 gallons of beer per year or that produces any other | ||||||
16 | alcoholic liquor. | ||||||
17 | A person who holds a brew pub license may simultaneously | ||||||
18 | hold a craft brewer license if he or she otherwise qualifies | ||||||
19 | for the craft brewer license and the craft brewer license is | ||||||
20 | for a location separate from the brew pub's licensed premises. | ||||||
21 | A brew pub license shall permit a person who has received prior | ||||||
22 | approval from the Commission to annually transfer no more than | ||||||
23 | a total of 50,000 gallons of beer manufactured on premises to | ||||||
24 | all other licensed brew pubs that are substantially owned and | ||||||
25 | operated by the same person. | ||||||
26 | (o) A caterer retailer license shall allow the holder
to |
| |||||||
| |||||||
1 | serve alcoholic liquors as an incidental part of a food service | ||||||
2 | that serves
prepared meals which excludes the serving of snacks | ||||||
3 | as
the primary meal, either on or off-site whether licensed or | ||||||
4 | unlicensed. | ||||||
5 | (p) An auction liquor license shall allow the licensee to | ||||||
6 | sell and offer
for sale at auction wine and spirits for use or | ||||||
7 | consumption, or for resale by
an Illinois liquor licensee in | ||||||
8 | accordance with provisions of this Act. An
auction liquor | ||||||
9 | license will be issued to a person and it will permit the
| ||||||
10 | auction liquor licensee to hold the auction anywhere in the | ||||||
11 | State. An auction
liquor license must be obtained for each | ||||||
12 | auction at least 14 days in advance of
the auction date. | ||||||
13 | (q) A special use permit license shall allow an Illinois | ||||||
14 | licensed
retailer to transfer a portion of its alcoholic liquor | ||||||
15 | inventory from its
retail licensed premises to the premises | ||||||
16 | specified in the license hereby
created, and to sell or offer | ||||||
17 | for sale at retail, only in the premises
specified in the | ||||||
18 | license hereby created, the transferred alcoholic liquor for
| ||||||
19 | use or consumption, but not for resale in any form. A special | ||||||
20 | use permit
license may be granted for the following time | ||||||
21 | periods: one day or less; 2 or
more days to a maximum of 15 days | ||||||
22 | per location in any 12 month period. An
applicant for the | ||||||
23 | special use permit license must also submit with the
| ||||||
24 | application proof satisfactory to the State Commission that the | ||||||
25 | applicant will
provide dram shop liability insurance to the | ||||||
26 | maximum limits and have local
authority approval. |
| |||||||
| |||||||
1 | (r) A winery shipper's license shall allow a person
with a | ||||||
2 | first-class or second-class wine manufacturer's
license, a | ||||||
3 | first-class or second-class wine-maker's license,
or a limited | ||||||
4 | wine manufacturer's license or who is licensed to
make wine | ||||||
5 | under the laws of another state to ship wine
made by that | ||||||
6 | licensee directly to a resident of this
State who is 21 years | ||||||
7 | of age or older for that resident's
personal use and not for | ||||||
8 | resale. Prior to receiving a
winery shipper's license, an | ||||||
9 | applicant for the license must
provide the Commission with a | ||||||
10 | true copy of its current
license in any state in which it is | ||||||
11 | licensed as a manufacturer
of wine. An applicant for a winery | ||||||
12 | shipper's license must
also complete an application form that | ||||||
13 | provides any other
information the Commission deems necessary. | ||||||
14 | The
application form shall include an acknowledgement | ||||||
15 | consenting
to the jurisdiction of the Commission, the Illinois
| ||||||
16 | Department of Revenue, and the courts of this State concerning
| ||||||
17 | the enforcement of this Act and any related laws, rules, and
| ||||||
18 | regulations, including authorizing the Department of Revenue
| ||||||
19 | and the Commission to conduct audits for the purpose of
| ||||||
20 | ensuring compliance with this amendatory Act. | ||||||
21 | A winery shipper licensee must pay to the Department
of | ||||||
22 | Revenue the State liquor gallonage tax under Section 8-1 for
| ||||||
23 | all wine that is sold by the licensee and shipped to a person
| ||||||
24 | in this State. For the purposes of Section 8-1, a winery
| ||||||
25 | shipper licensee shall be taxed in the same manner as a
| ||||||
26 | manufacturer of wine. A licensee who is not otherwise required |
| |||||||
| |||||||
1 | to register under the Retailers' Occupation Tax Act must
| ||||||
2 | register under the Use Tax Act to collect and remit use tax to
| ||||||
3 | the Department of Revenue for all gallons of wine that are sold
| ||||||
4 | by the licensee and shipped to persons in this State. If a
| ||||||
5 | licensee fails to remit the tax imposed under this Act in
| ||||||
6 | accordance with the provisions of Article VIII of this Act, the
| ||||||
7 | winery shipper's license shall be revoked in accordance
with | ||||||
8 | the provisions of Article VII of this Act. If a licensee
fails | ||||||
9 | to properly register and remit tax under the Use Tax Act
or the | ||||||
10 | Retailers' Occupation Tax Act for all wine that is sold
by the | ||||||
11 | winery shipper and shipped to persons in this
State, the winery | ||||||
12 | shipper's license shall be revoked in
accordance with the | ||||||
13 | provisions of Article VII of this Act. | ||||||
14 | A winery shipper licensee must collect, maintain, and
| ||||||
15 | submit to the Commission on a semi-annual basis the
total | ||||||
16 | number of cases per resident of wine shipped to residents
of | ||||||
17 | this State.
A winery shipper licensed under this subsection (r)
| ||||||
18 | must comply with the requirements of Section 6-29 of this | ||||||
19 | amendatory Act. | ||||||
20 | Pursuant to paragraph (5.1) or (5.3) of subsection (a) of | ||||||
21 | Section 3-12, the State Commission may receive, respond to, and | ||||||
22 | investigate any complaint and impose any of the remedies | ||||||
23 | specified in paragraph (1) of subsection (a) of Section 3-12. | ||||||
24 | (Source: P.A. 97-5, eff. 6-1-11; 97-455, eff. 8-19-11; 97-813, | ||||||
25 | eff. 7-13-12; 97-1166, eff. 3-1-13; 98-394, eff. 8-16-13; | ||||||
26 | 98-401, eff. 8-16-13; 98-756, eff. 7-16-14.)
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | (235 ILCS 5/5-3) (from Ch. 43, par. 118) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Sec. 5-3. License fees. Except as otherwise provided | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | herein, at the time
application is made to the State Commission | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | for a license of any class, the
applicant shall pay to the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | State Commission the fee hereinafter provided for
the kind of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | license applied for. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | The fee for licenses issued by the State Commission shall | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | be as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | For a manufacturer's license: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | Fees collected under this Section shall be paid into the
| |||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | Dram Shop Fund. On and after July 1, 2003, of the funds | |||||||||||||||||||||||||||||||||||||||||||||||||||||
16 | received for a
retailer's license, in
addition to the
first | |||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | $175, an additional $75 shall be paid into the Dram Shop Fund, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
18 | and $250
shall be
paid into the General Revenue Fund. Beginning | |||||||||||||||||||||||||||||||||||||||||||||||||||||
19 | June 30, 1990 and on June 30
of each
subsequent year through | |||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | June 29, 2003, any balance over $5,000,000
remaining in the | |||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | Dram Shop Fund
shall be credited to State liquor licensees and | |||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | applied against their fees for
State liquor licenses for the | |||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | following year. The amount credited to each
licensee shall be a | |||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | proportion of the balance in the Dram Fund that is the
same as | |||||||||||||||||||||||||||||||||||||||||||||||||||||
25 | the proportion of the license fee paid by the licensee under
| |||||||||||||||||||||||||||||||||||||||||||||||||||||
26 | this Section for the period in which the balance was |
| |||||||
| |||||||
1 | accumulated to the
aggregate fees paid by all licensees during | ||||||
2 | that period. | ||||||
3 | No fee shall be paid for licenses issued by the State | ||||||
4 | Commission to
the following non-beverage users: | ||||||
5 | (a) Hospitals, sanitariums, or clinics when their use | ||||||
6 | of alcoholic
liquor is exclusively medicinal, mechanical | ||||||
7 | or scientific. | ||||||
8 | (b) Universities, colleges of learning or schools when | ||||||
9 | their use of
alcoholic liquor is exclusively medicinal, | ||||||
10 | mechanical or scientific. | ||||||
11 | (c) Laboratories when their use is exclusively for the | ||||||
12 | purpose of
scientific research. | ||||||
13 | (Source: P.A. 97-5, eff. 6-1-11; 98-55, eff. 7-5-13.)
| ||||||
14 | (235 ILCS 5/6-4) (from Ch. 43, par. 121)
| ||||||
15 | Sec. 6-4. (a) No person licensed by any licensing authority | ||||||
16 | as a
distiller, or a wine manufacturer, or any subsidiary or | ||||||
17 | affiliate
thereof, or any officer, associate, member, partner, | ||||||
18 | representative,
employee, agent or shareholder owning more | ||||||
19 | than 5% of the outstanding
shares of such person shall be | ||||||
20 | issued an importing distributor's or
distributor's license, | ||||||
21 | nor shall any person licensed by any licensing
authority as an | ||||||
22 | importing distributor, distributor or retailer, or any
| ||||||
23 | subsidiary or affiliate thereof, or any officer or associate, | ||||||
24 | member,
partner, representative, employee, agent or | ||||||
25 | shareholder owning more than
5% of the outstanding shares of |
| |||||||
| |||||||
1 | such person be issued a distiller's
license or a wine | ||||||
2 | manufacturer's license; and no person or persons
licensed as a | ||||||
3 | distiller by any licensing authority shall have any
interest, | ||||||
4 | directly or indirectly, with such distributor or importing
| ||||||
5 | distributor.
| ||||||
6 | However, an importing distributor or distributor, which on | ||||||
7 | January
1, 1985 is owned by a brewer, or any subsidiary or | ||||||
8 | affiliate thereof or any
officer, associate, member, partner, | ||||||
9 | representative, employee, agent or
shareholder owning more | ||||||
10 | than 5% of the outstanding shares of the importing
distributor | ||||||
11 | or distributor referred to in this paragraph, may own or
| ||||||
12 | acquire an ownership interest of more than 5% of the | ||||||
13 | outstanding shares of
a wine manufacturer and be issued a wine
| ||||||
14 | manufacturer's license by any licensing authority.
| ||||||
15 | (b) The foregoing provisions shall not apply to any person | ||||||
16 | licensed
by any licensing authority as a distiller or wine | ||||||
17 | manufacturer, or to
any subsidiary or affiliate of any | ||||||
18 | distiller or wine manufacturer who
shall have been heretofore | ||||||
19 | licensed by the State Commission as either an
importing | ||||||
20 | distributor or distributor during the annual licensing period
| ||||||
21 | expiring June 30, 1947, and shall actually have made sales | ||||||
22 | regularly to
retailers.
| ||||||
23 | (c) Provided, however, that in such instances where a | ||||||
24 | distributor's
or importing distributor's license has been | ||||||
25 | issued to any distiller or
wine manufacturer or to any | ||||||
26 | subsidiary or affiliate of any distiller or
wine manufacturer |
| |||||||
| |||||||
1 | who has, during the licensing period ending June 30,
1947, sold | ||||||
2 | or distributed as such licensed distributor or importing
| ||||||
3 | distributor alcoholic liquors and wines to retailers, such | ||||||
4 | distiller or
wine manufacturer or any subsidiary or affiliate | ||||||
5 | of any distiller or
wine manufacturer holding such | ||||||
6 | distributor's or importing distributor's
license may continue | ||||||
7 | to sell or distribute to retailers such alcoholic
liquors and | ||||||
8 | wines which are manufactured, distilled, processed or
marketed | ||||||
9 | by distillers and wine manufacturers whose products it sold or
| ||||||
10 | distributed to retailers during the whole or any part of its | ||||||
11 | licensing
periods; and such additional brands and additional | ||||||
12 | products may be added
to the line of such distributor or | ||||||
13 | importing distributor, provided, that
such brands and such | ||||||
14 | products were not sold or distributed by any
distributor or | ||||||
15 | importing distributor licensed by the State Commission
during | ||||||
16 | the licensing period ending June 30, 1947, but can not sell or
| ||||||
17 | distribute to retailers any other alcoholic liquors or wines.
| ||||||
18 | (d) It shall be unlawful for any distiller licensed | ||||||
19 | anywhere to have
any stock ownership or interest in any | ||||||
20 | distributor's or importing
distributor's license wherein any | ||||||
21 | other person has an interest therein
who is not a distiller and | ||||||
22 | does not own more than 5% of any stock in any
distillery. | ||||||
23 | Nothing herein contained shall apply to such distillers or
| ||||||
24 | their subsidiaries or affiliates, who had a distributor's or | ||||||
25 | importing
distributor's license during the licensing period | ||||||
26 | ending June 30, 1947,
which license was owned in whole by such |
| |||||||
| |||||||
1 | distiller, or subsidiaries or
affiliates of such distiller.
| ||||||
2 | (e) Any person having been licensed as a brewer, class 1 | ||||||
3 | brewer, or class 2 brewer manufacturer shall be
permitted to | ||||||
4 | sell on the licensed premises to non-licensees for on or | ||||||
5 | off-premises consumption for the premises receive one | ||||||
6 | retailer's license for the premises in which he
or she actually | ||||||
7 | conducts such business , permitting only the retail sale of beer | ||||||
8 | manufactured by the brewer, class 1 brewer, or class 2 brewer. | ||||||
9 | Such sales shall be limited to on-premises, in-person sales | ||||||
10 | only, for lawful consumption on or off premises. Such | ||||||
11 | authorization shall be considered a privilege granted by the | ||||||
12 | brewer license and, other at such premises and only on
such | ||||||
13 | premises, but no such person shall be entitled to more than one
| ||||||
14 | retailer's license in any event, and, other than a manufacturer | ||||||
15 | of beer
as stated above, no manufacturer or distributor or | ||||||
16 | importing
distributor, excluding airplane licensees exercising | ||||||
17 | powers provided in
paragraph (i) of Section 5-1 of this Act, or | ||||||
18 | any subsidiary or affiliate
thereof, or any officer,
associate, | ||||||
19 | member, partner, representative, employee or agent, or
| ||||||
20 | shareholder shall be issued a retailer's license, nor shall any | ||||||
21 | person
having a retailer's license, excluding airplane | ||||||
22 | licensees exercising powers
provided in paragraph (i) of | ||||||
23 | Section 5-1 of this
Act, or any subsidiary or affiliate | ||||||
24 | thereof, or
any officer, associate, member, partner, | ||||||
25 | representative or agent, or
shareholder be issued a | ||||||
26 | manufacturer's license or importing distributor's
license.
|
| |||||||
| |||||||
1 | A person who holds a class 1 or class 2 brewer license and | ||||||
2 | is authorized by this Section to sell beer to non-licensees | ||||||
3 | shall not sell beer to non-licensees from more than 3 total | ||||||
4 | brewer or commonly owned brew pub licensed locations in this | ||||||
5 | State. The class 1 or class 2 brewer shall designate to the | ||||||
6 | State Commission the brewer or brew pub locations from which it | ||||||
7 | will sell beer to non-licensees. | ||||||
8 | A person licensed as a craft distiller not affiliated with | ||||||
9 | any other person manufacturing spirits may be authorized by the | ||||||
10 | Commission to sell up to 2,500 gallons of spirits produced by | ||||||
11 | the person to non-licensees for on or off-premises consumption | ||||||
12 | for the premises in which he or she actually conducts business | ||||||
13 | permitting only the retail sale of spirits manufactured at such | ||||||
14 | premises. Such sales shall be limited to on-premises, in-person | ||||||
15 | sales only, for lawful consumption on or off premises, and such | ||||||
16 | authorization shall be considered a privilege granted by the | ||||||
17 | craft distiller license. A craft distiller licensed for retail | ||||||
18 | sale shall secure liquor liability insurance coverage in an | ||||||
19 | amount at least equal to the maximum liability amounts set | ||||||
20 | forth in subsection (a) of Section 6-21 of this Act. | ||||||
21 | (f) However, the foregoing prohibitions against any person | ||||||
22 | licensed as
a distiller or wine manufacturer being issued a | ||||||
23 | retailer's license shall not apply:
| ||||||
24 | (i) to any hotel, motel or restaurant whose principal | ||||||
25 | business is not
the sale of alcoholic liquors if said | ||||||
26 | retailer's sales of any alcoholic
liquors manufactured, |
| |||||||
| |||||||
1 | sold, distributed or controlled, directly or
indirectly, | ||||||
2 | by any affiliate, subsidiary, officer, associate, member,
| ||||||
3 | partner, representative, employee, agent or shareholder | ||||||
4 | owning more than 5%
of the outstanding shares of such | ||||||
5 | person does not exceed
10% of the total alcoholic liquor | ||||||
6 | sales of said retail licensee; and
| ||||||
7 | (ii) where the Commission determines, having | ||||||
8 | considered the public
welfare, the economic impact upon the | ||||||
9 | State and the entirety of the facts
and circumstances | ||||||
10 | involved, that the purpose and intent of this Section
would | ||||||
11 | not be violated by granting an exemption.
| ||||||
12 | (g) Notwithstanding any of the foregoing prohibitions, a | ||||||
13 | limited wine
manufacturer may sell at retail at its | ||||||
14 | manufacturing site for on or off
premises consumption and may | ||||||
15 | sell to distributors. A limited wine manufacturer licensee
| ||||||
16 | shall secure liquor liability insurance coverage in an amount
| ||||||
17 | at least equal to the maximum liability amounts set forth in
| ||||||
18 | subsection (a) of Section 6-21 of this Act.
| ||||||
19 | (Source: P.A. 96-1367, eff. 7-28-10; 97-606, eff. 8-26-11; | ||||||
20 | 97-1166, eff. 3-1-13.)
| ||||||
21 | (235 ILCS 5/6-5) (from Ch. 43, par. 122)
| ||||||
22 | Sec. 6-5.
Except as otherwise provided in this Section, it | ||||||
23 | is unlawful
for any person having a retailer's license or
any | ||||||
24 | officer, associate, member, representative or agent of such | ||||||
25 | licensee
to accept, receive or borrow money, or anything else |
| |||||||
| |||||||
1 | of value, or accept
or receive credit (other than merchandising | ||||||
2 | credit in the ordinary
course of business for a period not to | ||||||
3 | exceed 30 days) directly or
indirectly from any manufacturer, | ||||||
4 | importing distributor or distributor
of alcoholic liquor, or | ||||||
5 | from any person connected with or in any way
representing, or | ||||||
6 | from any member of the family of, such manufacturer,
importing | ||||||
7 | distributor, distributor or wholesaler, or from any
| ||||||
8 | stockholders in any corporation engaged in manufacturing, | ||||||
9 | distributing
or wholesaling of such liquor, or from any | ||||||
10 | officer, manager, agent or
representative of said | ||||||
11 | manufacturer. Except as provided below, it is
unlawful for any | ||||||
12 | manufacturer
or distributor or importing distributor to give or | ||||||
13 | lend money or
anything of value, or otherwise loan or extend | ||||||
14 | credit (except such
merchandising credit) directly or | ||||||
15 | indirectly to any retail licensee or
to the manager, | ||||||
16 | representative, agent, officer or director of such
licensee. A | ||||||
17 | manufacturer, distributor or importing distributor may furnish
| ||||||
18 | free advertising, posters,
signs, brochures, hand-outs, or | ||||||
19 | other promotional devices or materials to
any unit of | ||||||
20 | government owning or operating any auditorium, exhibition | ||||||
21 | hall,
recreation facility or other similar facility holding a | ||||||
22 | retailer's license,
provided that the primary purpose of such | ||||||
23 | promotional devices or materials
is to promote public events | ||||||
24 | being held at such facility. A unit of government
owning or | ||||||
25 | operating such a facility holding a retailer's license may | ||||||
26 | accept
such promotional devices or materials designed |
| |||||||
| |||||||
1 | primarily to promote public
events held at the facility. No | ||||||
2 | retail licensee delinquent beyond the
30 day period specified | ||||||
3 | in this Section shall
solicit, accept or receive credit, | ||||||
4 | purchase or acquire alcoholic
liquors, directly or indirectly | ||||||
5 | from any other licensee, and no
manufacturer, distributor or | ||||||
6 | importing distributor shall knowingly grant
or extend credit, | ||||||
7 | sell, furnish or supply alcoholic liquors to any such
| ||||||
8 | delinquent retail licensee; provided that the purchase price of | ||||||
9 | all beer
sold to a retail licensee shall be paid by the retail | ||||||
10 | licensee in cash
on or before delivery of the beer, and unless | ||||||
11 | the purchase price payable
by a retail licensee for beer sold | ||||||
12 | to him in returnable bottles shall
expressly include a charge | ||||||
13 | for the bottles and cases, the retail
licensee shall, on or | ||||||
14 | before delivery of such beer, pay the seller in
cash a deposit | ||||||
15 | in an amount not less than the deposit required to be
paid by | ||||||
16 | the distributor to the brewer; but where the brewer sells | ||||||
17 | direct
to the retailer, the deposit shall be an amount no less | ||||||
18 | than that
required by the brewer from his own distributors; and | ||||||
19 | provided further,
that in no instance shall this deposit be | ||||||
20 | less than 50 cents for each
case of beer in pint or smaller | ||||||
21 | bottles and 60 cents for each case of
beer in quart or | ||||||
22 | half-gallon bottles; and provided further, that the
purchase | ||||||
23 | price of all beer sold to an importing distributor or
| ||||||
24 | distributor shall be paid by such importing distributor or | ||||||
25 | distributor
in cash on or before the 15th day (Sundays and | ||||||
26 | holidays excepted) after
delivery of such beer to such |
| |||||||
| |||||||
1 | purchaser; and unless the purchase price
payable by such | ||||||
2 | importing distributor or distributor for beer sold in
| ||||||
3 | returnable bottles and cases shall expressly include a charge | ||||||
4 | for the
bottles and cases, such importing distributor or | ||||||
5 | distributor shall, on
or before the 15th day (Sundays and | ||||||
6 | holidays excepted) after delivery of
such beer to such | ||||||
7 | purchaser, pay the seller in cash a required amount as
a | ||||||
8 | deposit to assure the return of such bottles and cases. Nothing | ||||||
9 | herein
contained shall prohibit any licensee from crediting or | ||||||
10 | refunding to a
purchaser the actual amount of money paid for | ||||||
11 | bottles, cases, kegs or
barrels returned by the purchaser to | ||||||
12 | the seller or paid by the purchaser
as a deposit on bottles, | ||||||
13 | cases, kegs or barrels, when such containers or
packages are | ||||||
14 | returned to the seller. Nothing herein contained shall
prohibit | ||||||
15 | any manufacturer, importing distributor or distributor from
| ||||||
16 | extending usual and customary credit for alcoholic liquor sold | ||||||
17 | to
customers or purchasers who live in or maintain places of | ||||||
18 | business
outside of this State when such alcoholic liquor is | ||||||
19 | actually transported
and delivered to such points outside of | ||||||
20 | this State.
| ||||||
21 | A manufacturer, distributor, or importing distributor may | ||||||
22 | furnish free social media advertising to a retail licensee if | ||||||
23 | the social media advertisement does not contain the retail | ||||||
24 | price of any alcoholic liquor and the social media | ||||||
25 | advertisement complies with any applicable rules or | ||||||
26 | regulations issued by the Alcohol and Tobacco Tax and Trade |
| |||||||
| |||||||
1 | Bureau of the United States Department of the Treasury. A | ||||||
2 | manufacturer, distributor, or importing distributor may list | ||||||
3 | the names of one or more unaffiliated retailers in the | ||||||
4 | advertisement of alcoholic liquor through social media. | ||||||
5 | Nothing in this Section shall prohibit a retailer from | ||||||
6 | communicating with a manufacturer, distributor, or importing | ||||||
7 | distributor on social media or sharing media on the social | ||||||
8 | media of a manufacturer, distributor, or importing | ||||||
9 | distributor. A retailer may request free social media | ||||||
10 | advertising from a manufacturer, distributor, or importing | ||||||
11 | distributor. Nothing in this Section shall prohibit a | ||||||
12 | manufacturer, distributor, or importing distributor from | ||||||
13 | sharing, reposting, or otherwise forwarding a social media post | ||||||
14 | by a retail licensee, so long as the sharing, reposting, or | ||||||
15 | forwarding of the social media post does not contain the retail | ||||||
16 | price of any alcoholic liquor. No manufacturer, distributor, or | ||||||
17 | importing distributor shall pay or reimburse a retailer, | ||||||
18 | directly or indirectly, for any social media advertising | ||||||
19 | services, except as specifically permitted in this Act. No | ||||||
20 | retailer shall accept any payment or reimbursement, directly or | ||||||
21 | indirectly, for any social media advertising services offered | ||||||
22 | by a manufacturer, distributor, or importing distributor, | ||||||
23 | except as specifically permitted in this Act. For the purposes | ||||||
24 | of this Section, "social media" means a service, platform, or | ||||||
25 | site where users communicate with one another and share media, | ||||||
26 | such as pictures, videos, music, and blogs, with other users |
| |||||||
| |||||||
1 | free of charge. | ||||||
2 | No right of action shall exist for the collection of any | ||||||
3 | claim based
upon credit extended to a distributor, importing | ||||||
4 | distributor or retail
licensee contrary to the provisions of | ||||||
5 | this Section.
| ||||||
6 | Every manufacturer, importing distributor and distributor | ||||||
7 | shall
submit or cause to be submitted, to the State Commission, | ||||||
8 | in triplicate,
not later than Thursday of each calendar week, a | ||||||
9 | verified written list
of the names and respective addresses of | ||||||
10 | each retail licensee purchasing
spirits or wine from such | ||||||
11 | manufacturer, importing distributor or
distributor who, on the | ||||||
12 | first business day of that calendar week, was
delinquent beyond | ||||||
13 | the above mentioned permissible merchandising credit
period of | ||||||
14 | 30 days; or, if such is the fact, a verified written statement
| ||||||
15 | that no retail licensee purchasing spirits or wine was then | ||||||
16 | delinquent
beyond such permissible merchandising credit period | ||||||
17 | of 30 days.
| ||||||
18 | Every manufacturer, importing distributor and distributor | ||||||
19 | shall
submit or cause to be submitted, to the State Commission, | ||||||
20 | in triplicate,
a verified written list of the names and | ||||||
21 | respective addresses of each
previously reported delinquent | ||||||
22 | retail licensee who has cured such
delinquency by payment, | ||||||
23 | which list shall be submitted not later than the
close of the | ||||||
24 | second full business day following the day such delinquency
was | ||||||
25 | so cured.
| ||||||
26 | Such written verified reports required to be submitted by |
| |||||||
| |||||||
1 | this
Section shall be posted by the State Commission in each of | ||||||
2 | its offices
in places available for public inspection not later | ||||||
3 | than the day
following receipt thereof by the Commission. The | ||||||
4 | reports so posted shall
constitute notice to every | ||||||
5 | manufacturer, importing distributor and
distributor of the | ||||||
6 | information contained therein. Actual notice to
manufacturers, | ||||||
7 | importing distributors and distributors of the
information | ||||||
8 | contained in any such posted reports, however received,
shall | ||||||
9 | also constitute notice of such information.
| ||||||
10 | The 30 day merchandising credit period allowed by this | ||||||
11 | Section shall
commence with the day immediately following the | ||||||
12 | date of invoice and
shall include all successive days including | ||||||
13 | Sundays and holidays to and
including the 30th successive day.
| ||||||
14 | In addition to other methods allowed by law, payment by | ||||||
15 | check during
the period for which merchandising credit may be | ||||||
16 | extended under the
provisions of this Section shall be | ||||||
17 | considered payment. All checks
received in payment for | ||||||
18 | alcoholic liquor shall be promptly deposited for
collection. A | ||||||
19 | post dated check or a check dishonored on presentation for
| ||||||
20 | payment shall not be deemed payment.
| ||||||
21 | A retail licensee shall not be deemed to be delinquent in | ||||||
22 | payment for
any alleged sale to him of alcoholic liquor when | ||||||
23 | there exists a bona fide
dispute between such retailer and a | ||||||
24 | manufacturer, importing distributor
or distributor with | ||||||
25 | respect to the amount of indebtedness existing
because of such | ||||||
26 | alleged sale.
|
| |||||||
| |||||||
1 | A delinquent retail licensee who engages in the retail | ||||||
2 | liquor
business at 2 or more locations shall be deemed to be | ||||||
3 | delinquent with
respect to each such location.
| ||||||
4 | The license of any person who violates any provision of | ||||||
5 | this Section
shall be subject to suspension or revocation in | ||||||
6 | the manner provided by
this Act.
| ||||||
7 | If any part or provision of this Article or the application | ||||||
8 | thereof
to any person or circumstances shall be adjudged | ||||||
9 | invalid by a court of
competent jurisdiction, such judgment | ||||||
10 | shall be confined by its operation
to the controversy in which | ||||||
11 | it was mentioned and shall not affect or
invalidate the | ||||||
12 | remainder of this Article or the application thereof to
any | ||||||
13 | other person or circumstance and to this and the provisions of | ||||||
14 | this
Article are declared severable.
| ||||||
15 | (Source: P.A. 83-762.)
| ||||||
16 | (235 ILCS 5/6-6) (from Ch. 43, par. 123)
| ||||||
17 | Sec. 6-6.
Except as otherwise provided in this Act no | ||||||
18 | manufacturer or
distributor or importing distributor shall, | ||||||
19 | directly or indirectly,
sell, supply, furnish, give or pay for, | ||||||
20 | or loan or lease, any
furnishing, fixture or equipment on the | ||||||
21 | premises of a place of business
of another licensee authorized | ||||||
22 | under this Act to sell alcoholic liquor
at retail, either for | ||||||
23 | consumption on or off the premises, nor shall he or she,
| ||||||
24 | directly or indirectly, pay for any such license, or advance, | ||||||
25 | furnish,
lend or give money for payment of such license, or |
| |||||||
| |||||||
1 | purchase or become
the owner of any note, mortgage, or other | ||||||
2 | evidence of indebtedness of
such licensee or any form of | ||||||
3 | security therefor, nor shall such
manufacturer, or | ||||||
4 | distributor, or importing distributor, directly or
indirectly, | ||||||
5 | be interested in the ownership, conduct or operation of the
| ||||||
6 | business of any licensee authorized to sell alcoholic liquor at | ||||||
7 | retail,
nor shall any manufacturer, or distributor, or | ||||||
8 | importing distributor be
interested directly or indirectly or | ||||||
9 | as owner or part owner of said
premises or as lessee or lessor | ||||||
10 | thereof, in any premises upon which
alcoholic liquor is sold at | ||||||
11 | retail.
| ||||||
12 | No manufacturer or distributor or importing distributor | ||||||
13 | shall,
directly or indirectly or through a subsidiary or | ||||||
14 | affiliate, or by any
officer, director or firm of such | ||||||
15 | manufacturer, distributor or importing
distributor, furnish, | ||||||
16 | give, lend or rent, install, repair or maintain,
to or for any | ||||||
17 | retail licensee in this State, any
signs or inside advertising | ||||||
18 | materials except as provided in this Section and
Section 6-5. | ||||||
19 | With respect to
retail licensees, other than any government | ||||||
20 | owned or operated auditorium,
exhibition hall, recreation | ||||||
21 | facility or other similar facility holding a
retailer's license | ||||||
22 | as described in Section 6-5, a manufacturer,
distributor, or | ||||||
23 | importing distributor may furnish, give, lend or rent and
| ||||||
24 | erect, install, repair and maintain to or for any retail | ||||||
25 | licensee, for use
at any one time in or about or in connection | ||||||
26 | with a retail establishment on
which the products of the |
| |||||||
| |||||||
1 | manufacturer, distributor or importing
distributor are sold, | ||||||
2 | the following signs and inside advertising materials
as | ||||||
3 | authorized in subparts (i), (ii), (iii), and (iv):
| ||||||
4 | (i) Permanent outside signs shall be limited to one | ||||||
5 | outside sign, per
brand, in place and in use at any one | ||||||
6 | time,
costing not more than $893, exclusive of erection,
| ||||||
7 | installation, repair and maintenance costs, and permit | ||||||
8 | fees and
shall bear only the manufacturer's name, brand | ||||||
9 | name, trade name, slogans,
markings, trademark, or other | ||||||
10 | symbols commonly associated with and generally
used in | ||||||
11 | identifying the product including, but not limited to, | ||||||
12 | "cold beer", "on
tap", "carry out", and "packaged liquor".
| ||||||
13 | (ii) Temporary outside signs shall be
limited to one | ||||||
14 | temporary outside sign per brand. Examples of temporary | ||||||
15 | outside
signs are banners, flags, pennants,
streamers, and | ||||||
16 | other items of a temporary and non-permanent
nature. Each | ||||||
17 | temporary outside sign must include the manufacturer's | ||||||
18 | name,
brand name, trade name, slogans, markings,
| ||||||
19 | trademark, or other symbol commonly associated with and | ||||||
20 | generally used in
identifying the product. Temporary | ||||||
21 | outside signs may also include,
for example, the product,
| ||||||
22 | price, packaging, date or dates of a promotion and an | ||||||
23 | announcement of a
retail licensee's specific sponsored | ||||||
24 | event, if the temporary outside sign is
intended to promote | ||||||
25 | a product, and provided that the announcement of the retail
| ||||||
26 | licensee's event and the product promotion are held |
| |||||||
| |||||||
1 | simultaneously. However,
temporary outside signs may not | ||||||
2 | include names, slogans, markings, or logos that
relate to | ||||||
3 | the retailer. Nothing in this subpart (ii) shall prohibit a
| ||||||
4 | distributor or importing distributor from bearing the cost | ||||||
5 | of creating or
printing a temporary outside sign for the | ||||||
6 | retail licensee's specific sponsored
event or from bearing | ||||||
7 | the cost of creating or printing a temporary sign for a
| ||||||
8 | retail licensee containing, for example, community | ||||||
9 | goodwill expressions,
regional sporting event | ||||||
10 | announcements, or seasonal messages, provided that the
| ||||||
11 | primary purpose of the temporary outside sign is to | ||||||
12 | highlight, promote, or
advertise the product.
In addition, | ||||||
13 | temporary outside signs provided by the manufacturer to
the | ||||||
14 | distributor or importing distributor may also include, for | ||||||
15 | example, subject
to the limitations of this Section, | ||||||
16 | preprinted community goodwill expressions,
sporting event | ||||||
17 | announcements, seasonal messages, and manufacturer | ||||||
18 | promotional
announcements. However, a distributor or | ||||||
19 | importing distributor shall not bear
the cost of such | ||||||
20 | manufacturer preprinted signs.
| ||||||
21 | (iii) Permanent inside
signs, whether visible from the | ||||||
22 | outside or the inside of the premises,
include, but are not | ||||||
23 | limited to: alcohol lists and menus that may include
names, | ||||||
24 | slogans, markings, or logos that relate to the retailer; | ||||||
25 | neons;
illuminated signs; clocks; table lamps; mirrors; | ||||||
26 | tap handles; decalcomanias;
window painting; and window |
| |||||||
| |||||||
1 | trim. All permanent inside signs in place
and in use at any | ||||||
2 | one time shall cost in the aggregate not more than $2000 | ||||||
3 | per
manufacturer. A permanent inside sign must include the
| ||||||
4 | manufacturer's name, brand name, trade name, slogans, | ||||||
5 | markings, trademark, or
other symbol commonly associated | ||||||
6 | with and generally used in identifying
the product. | ||||||
7 | However,
permanent inside signs may not include names, | ||||||
8 | slogans, markings, or logos
that relate to the retailer. | ||||||
9 | For the purpose of this subpart (iii), all
permanent inside | ||||||
10 | signs may be displayed in an adjacent courtyard or patio
| ||||||
11 | commonly referred to as a "beer garden" that is a part of | ||||||
12 | the retailer's
licensed premises.
| ||||||
13 | (iv) Temporary inside signs shall include, but are not | ||||||
14 | limited to, lighted
chalk boards, acrylic table tent | ||||||
15 | beverage or hors d'oeuvre list holders,
banners, flags, | ||||||
16 | pennants, streamers, and inside advertising materials such | ||||||
17 | as
posters, placards, bowling sheets, table tents, inserts | ||||||
18 | for acrylic table tent
beverage or hors d'oeuvre list | ||||||
19 | holders, sports schedules,
or similar printed or | ||||||
20 | illustrated materials; however, such items, for example,
| ||||||
21 | as coasters, trays, napkins, glassware and cups shall not | ||||||
22 | be deemed to be
inside signs or advertising materials and | ||||||
23 | may only be sold to retailers. All
temporary inside signs | ||||||
24 | and inside advertising materials in place and in use at
any | ||||||
25 | one time shall cost in the aggregate not more than $325 per | ||||||
26 | manufacturer.
Nothing in this subpart (iv) prohibits a |
| |||||||
| |||||||
1 | distributor or importing distributor
from paying the cost | ||||||
2 | of
printing or creating any temporary inside banner or | ||||||
3 | inserts for acrylic table
tent beverage or hors d'oeuvre | ||||||
4 | list holders for a retail licensee, provided
that the | ||||||
5 | primary purpose for the banner or insert is to highlight, | ||||||
6 | promote, or
advertise the product. For the purpose of this | ||||||
7 | subpart (iv), all temporary
inside signs and inside | ||||||
8 | advertising materials may be displayed in an adjacent
| ||||||
9 | courtyard or patio commonly referred to as a "beer garden" | ||||||
10 | that is a part of
the retailer's licensed premises.
| ||||||
11 | A "cost adjustment factor" shall be used to periodically | ||||||
12 | update the
dollar limitations prescribed in subparts (i), | ||||||
13 | (iii), and (iv). The Commission
shall establish the adjusted | ||||||
14 | dollar limitation on an annual basis beginning in
January, | ||||||
15 | 1997. The term "cost adjustment factor"
means a percentage | ||||||
16 | equal to the change in the Bureau of Labor Statistics
Consumer | ||||||
17 | Price Index or 5%, whichever is greater.
The restrictions | ||||||
18 | contained in this Section 6-6 do not apply to signs, or
| ||||||
19 | promotional or advertising materials furnished by | ||||||
20 | manufacturers, distributors
or importing distributors to a | ||||||
21 | government owned or operated facility holding
a retailer's | ||||||
22 | license as described in Section 6-5.
| ||||||
23 | No distributor or importing distributor shall directly or | ||||||
24 | indirectly
or through a subsidiary or affiliate, or by any | ||||||
25 | officer, director or
firm of such manufacturer, distributor or | ||||||
26 | importing distributor,
furnish, give, lend or rent, install, |
| |||||||
| |||||||
1 | repair or maintain, to or for any
retail licensee in this | ||||||
2 | State, any signs or
inside advertising materials described in | ||||||
3 | subparts (i), (ii), (iii), or (iv)
of this Section except as | ||||||
4 | the agent for or on behalf of a manufacturer,
provided that the | ||||||
5 | total cost of any signs and inside advertising materials
| ||||||
6 | including but not limited to labor, erection, installation and | ||||||
7 | permit fees
shall be paid by the manufacturer whose product or | ||||||
8 | products said signs
and inside advertising materials advertise | ||||||
9 | and except as follows:
| ||||||
10 | A distributor or importing distributor may purchase from or | ||||||
11 | enter into a
written agreement with a manufacturer or a | ||||||
12 | manufacturer's designated supplier
and such manufacturer or | ||||||
13 | the manufacturer's designated supplier may sell or
enter into | ||||||
14 | an agreement to sell to a distributor or importing distributor
| ||||||
15 | permitted signs and advertising materials described in | ||||||
16 | subparts (ii), (iii), or
(iv) of this Section for the purpose | ||||||
17 | of furnishing, giving, lending, renting,
installing, | ||||||
18 | repairing, or maintaining such signs or advertising materials | ||||||
19 | to or
for any retail licensee in this State. Any purchase by a | ||||||
20 | distributor or
importing distributor from a manufacturer or a | ||||||
21 | manufacturer's designated
supplier shall be voluntary and the | ||||||
22 | manufacturer may not require the
distributor or the importing | ||||||
23 | distributor to purchase signs or advertising
materials from the | ||||||
24 | manufacturer or the manufacturer's designated supplier.
| ||||||
25 | A distributor or importing distributor shall be deemed the | ||||||
26 | owner of such
signs or advertising materials purchased from a |
| |||||||
| |||||||
1 | manufacturer or
a manufacturer's designated supplier.
| ||||||
2 | The provisions of Public Act 90-373
concerning signs or | ||||||
3 | advertising materials delivered by a manufacturer to a
| ||||||
4 | distributor or importing distributor shall apply only to signs | ||||||
5 | or advertising
materials delivered on or after August 14, 1997.
| ||||||
6 | A manufacturer, distributor, or importing distributor may | ||||||
7 | furnish free social media advertising to a retail licensee if | ||||||
8 | the social media advertisement does not contain the retail | ||||||
9 | price of any alcoholic liquor and the social media | ||||||
10 | advertisement complies with any applicable rules or | ||||||
11 | regulations issued by the Alcohol and Tobacco Tax and Trade | ||||||
12 | Bureau of the United States Department of the Treasury. A | ||||||
13 | manufacturer, distributor, or importing distributor may list | ||||||
14 | the names of one or more unaffiliated retailers in the | ||||||
15 | advertisement of alcoholic liquor through social media. | ||||||
16 | Nothing in this Section shall prohibit a retailer from | ||||||
17 | communicating with a manufacturer, distributor, or importing | ||||||
18 | distributor on social media or sharing media on the social | ||||||
19 | media of a manufacturer, distributor, or importing | ||||||
20 | distributor. A retailer may request free social media | ||||||
21 | advertising from a manufacturer, distributor, or importing | ||||||
22 | distributor. Nothing in this Section shall prohibit a | ||||||
23 | manufacturer, distributor, or importing distributor from | ||||||
24 | sharing, reposting, or otherwise forwarding a social media post | ||||||
25 | by a retail licensee, so long as the sharing, reposting, or | ||||||
26 | forwarding of the social media post does not contain the retail |
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| |||||||
1 | price of any alcoholic liquor. No manufacturer, distributor, or | ||||||
2 | importing distributor shall pay or reimburse a retailer, | ||||||
3 | directly or indirectly, for any social media advertising | ||||||
4 | services, except as specifically permitted in this Act. No | ||||||
5 | retailer shall accept any payment or reimbursement, directly or | ||||||
6 | indirectly, for any social media advertising services offered | ||||||
7 | by a manufacturer, distributor, or importing distributor, | ||||||
8 | except as specifically permitted in this Act. For the purposes | ||||||
9 | of this Section, "social media" means a service, platform, or | ||||||
10 | site where users communicate with one another and share media, | ||||||
11 | such as pictures, videos, music, and blogs, with other users | ||||||
12 | free of charge. | ||||||
13 | No person engaged in the business of manufacturing, | ||||||
14 | importing or
distributing alcoholic liquors shall, directly or | ||||||
15 | indirectly, pay for,
or advance, furnish, or lend money for the | ||||||
16 | payment of any license for
another. Any licensee who shall | ||||||
17 | permit or assent, or be a party in any
way to any violation or | ||||||
18 | infringement of the provisions of this Section
shall be deemed | ||||||
19 | guilty of a violation of this Act, and any money loaned
| ||||||
20 | contrary to a provision of this Act shall not be recovered | ||||||
21 | back, or any
note, mortgage or other evidence of indebtedness, | ||||||
22 | or security, or any
lease or contract obtained or made contrary | ||||||
23 | to this Act shall be
unenforceable and void.
| ||||||
24 | This Section shall not apply to airplane licensees | ||||||
25 | exercising powers
provided in paragraph (i) of Section 5-1 of | ||||||
26 | this Act.
|
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| |||||||
1 | (Source: P.A. 98-756, eff. 7-16-14.)
| ||||||
2 | (235 ILCS 5/6-36) | ||||||
3 | Sec. 6-36. Homemade brewed beverages. | ||||||
4 | (a) No license or permit is required under this Act for the | ||||||
5 | making of homemade brewed beverages or for the possession, | ||||||
6 | transportation, or storage of homemade brewed beverages by any | ||||||
7 | person 21 years of age or older, if all of the following apply: | ||||||
8 | (1) the person who makes the homemade brewed beverages | ||||||
9 | receives no compensation; | ||||||
10 | (2) the homemade brewed beverages are is not sold or | ||||||
11 | offered for sale; and | ||||||
12 | (3) the total quantity of homemade brewed beverages | ||||||
13 | made, in a calendar year, by the person does not exceed 100 | ||||||
14 | gallons if the household has only one person 21 years of | ||||||
15 | age or older or 200 gallons if the household has 2 or more | ||||||
16 | persons 21 years of age or older. | ||||||
17 | (b) A person who makes, possesses, transports, or stores | ||||||
18 | homemade brewed beverages in compliance with the limitations | ||||||
19 | specified in subsection (a) is not a brewer, class 1 craft | ||||||
20 | brewer, class 2 brewer, wholesaler, retailer, or a manufacturer | ||||||
21 | of beer for the purposes of this Act. | ||||||
22 | (c) Homemade brewed beverages made in compliance with the | ||||||
23 | limitations specified in subsection (a) may be consumed by the | ||||||
24 | person who made it and his or her family, neighbors, and | ||||||
25 | friends at any private residence or other private location |
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| |||||||
1 | where the possession and consumption of alcohol are is | ||||||
2 | permissible under this Act, local ordinances, and other | ||||||
3 | applicable law, provided that the homemade brewed beverages are | ||||||
4 | not made available for consumption by the general public. | ||||||
5 | (d) Homemade brewed beverages made in compliance with the | ||||||
6 | limitations specified in subsection (a) may be used for | ||||||
7 | purposes of a public exhibition, demonstration, tasting, or | ||||||
8 | sampling with sampling sizes as authorized by Section 6-31, if | ||||||
9 | the event is held at a private residence or at a location other | ||||||
10 | than a retail licensed premises. If the public event is not | ||||||
11 | held at a private residence, the event organizer shall obtain a | ||||||
12 | homebrewer special event permit for each location, and is | ||||||
13 | subject to the provisions in subsection (a) of Section 6-21. | ||||||
14 | Homemade brewed beverages used for purposes described in this | ||||||
15 | subsection (d), including the submission or consumption of the | ||||||
16 | homemade brewed beverages, are not considered sold or offered | ||||||
17 | for sale under this Act. A public exhibition, demonstration, | ||||||
18 | tasting, or sampling with sampling sizes as authorized by | ||||||
19 | Section 6-31 held by a licensee on a location other than a | ||||||
20 | retail licensed premises may require an admission charge to the | ||||||
21 | event, but no separate or additional fee may be charged for the | ||||||
22 | consumption of a person's homemade brewed beverages at the | ||||||
23 | public exhibition, demonstration, tasting, or sampling with | ||||||
24 | sampling sizes as authorized by Section 6-31. Event admission | ||||||
25 | charges that are collected may be partially used to provide | ||||||
26 | prizes to makers of homemade brewed beverages, but the |
| |||||||
| |||||||
1 | admission charges may not be divided in any fashion among the | ||||||
2 | makers of the homemade brewed beverages who participate in the | ||||||
3 | event. Homemade brewed beverages used for purposes described in | ||||||
4 | this subsection (d) are not considered sold or offered for sale | ||||||
5 | under this Act if a maker of homemade brewed beverages receives | ||||||
6 | free event admission or discounted event admission in return | ||||||
7 | for the maker's donation of the homemade brewed beverages to an | ||||||
8 | event specified in this subsection (d) that collects event | ||||||
9 | admission charges; free admission or discounted admission to | ||||||
10 | the event is not considered compensation under this Act. No | ||||||
11 | admission fee and no charge for the consumption of a person's | ||||||
12 | homemade brewed beverage may be collected if the public | ||||||
13 | exhibition, demonstration, tasting, or sampling with sampling | ||||||
14 | sizes as authorized by Section 6-31 is held at a private | ||||||
15 | residence. | ||||||
16 | (e) A person who is not a licensee under this Act may at a | ||||||
17 | private residence, and a person who is a licensee under this | ||||||
18 | Act may on the licensed premises, conduct, sponsor, or host a | ||||||
19 | contest, competition, or other event for the exhibition, | ||||||
20 | demonstration, judging, tasting, or sampling of homemade | ||||||
21 | brewed beverages made in compliance with the limitations | ||||||
22 | specified in subsection (a), if the person does not sell the | ||||||
23 | homemade brewed beverages and, unless the person is the brewer | ||||||
24 | of the homemade brewed beverages, does not acquire any | ||||||
25 | ownership interest in the homemade brewed beverages. If the | ||||||
26 | contest, competition, exhibition, demonstration, or judging is |
| |||||||
| |||||||
1 | not held at a private residence, the consumption of the | ||||||
2 | homemade brewed beverages is limited to qualified judges and | ||||||
3 | stewards as defined by a national or international beer judging | ||||||
4 | program, who are identified by the event organizer in advance | ||||||
5 | of the contest, competition, exhibition, demonstration, or | ||||||
6 | judging. Homemade brewed beverages used for the purposes | ||||||
7 | described in this subsection (e), including the submission or | ||||||
8 | consumption of the homemade brewed beverages, are not | ||||||
9 | considered sold or offered for sale under this Act and any | ||||||
10 | prize awarded at a contest or competition or as a result of an | ||||||
11 | exhibition, demonstration, or judging is not considered | ||||||
12 | compensation under this Act. An exhibition, demonstration, | ||||||
13 | judging, contest, or competition held by a licensee on a | ||||||
14 | licensed premises may require an admission charge to the event, | ||||||
15 | but no separate or additional fee may be charged for the | ||||||
16 | consumption of a person's homemade brewed beverage at the | ||||||
17 | exhibition, demonstration, judging, contest, or competition. A | ||||||
18 | portion of event admission charges that are collected may be | ||||||
19 | used to provide prizes to makers of homemade brewed beverages, | ||||||
20 | but the admission charges may not be divided in any fashion | ||||||
21 | among the makers of the homemade brewed beverages who | ||||||
22 | participate in the event. Homemade brewed beverages used for | ||||||
23 | purposes described in this subsection (e) are not considered | ||||||
24 | sold or offered for sale under this Act if a maker of homemade | ||||||
25 | brewed beverages receives free event admission or discounted | ||||||
26 | event admission in return for the maker's donation of the |
| |||||||
| |||||||
1 | homemade brewed beverages to an event specified in this | ||||||
2 | subsection (e) that collects event admission charges; free | ||||||
3 | admission or discounted admission to the event is not | ||||||
4 | considered compensation under this Act. No admission fee and no | ||||||
5 | charge for the consumption of a person's homemade brewed | ||||||
6 | beverage may be charged if the exhibition, demonstration, | ||||||
7 | judging, contest, or competition is held at a private | ||||||
8 | residence. The fact that a person is acting in a manner | ||||||
9 | authorized by this Section is not, by itself, sufficient to | ||||||
10 | constitute a public nuisance under Section 10-7 of this Act. If | ||||||
11 | the contest, competition, or other event is held on licensed | ||||||
12 | premises, the licensee may allow the homemade brewed beverages | ||||||
13 | to be stored on the premises if the homemade brewed beverages | ||||||
14 | are clearly identified and , kept separate from any alcohol | ||||||
15 | beverages owned by the licensee. If the contest, competition, | ||||||
16 | or other event is held on licensed premises, other provisions | ||||||
17 | of this Act not inconsistent with this Section apply. | ||||||
18 | (f) A commercial enterprise engaged primarily in selling | ||||||
19 | supplies and equipment to the public for use by homebrewers may | ||||||
20 | manufacture homemade brewed beverages for the purpose of | ||||||
21 | tasting the homemade brewed beverages at the location of the | ||||||
22 | commercial enterprise, provided that the homemade brewed | ||||||
23 | beverages are not sold or offered for sale. Homemade brewed | ||||||
24 | beverages provided at a commercial enterprise for tasting under | ||||||
25 | this subsection (f) shall be in compliance with Sections 6-16, | ||||||
26 | 6-21, and 6-31 of this Act. A commercial enterprise engaged |
| |||||||
| |||||||
1 | solely in selling supplies and equipment for use by homebrewers | ||||||
2 | shall not be required to secure a license under this Act, | ||||||
3 | however, such commercial enterprise shall secure liquor | ||||||
4 | liability insurance coverage in an amount at least equal to the | ||||||
5 | maximum liability amounts set forth in subsection (a) of | ||||||
6 | Section 6-21 of this Act. | ||||||
7 | (g) Homemade brewed beverages are not subject to Section | ||||||
8 | 8-1 of this Act.
| ||||||
9 | (Source: P.A. 98-55, eff. 7-5-13; revised 11-26-14.)
| ||||||
10 | Section 95. No acceleration or delay. Where this Act makes | ||||||
11 | changes in a statute that is represented in this Act by text | ||||||
12 | that is not yet or no longer in effect (for example, a Section | ||||||
13 | represented by multiple versions), the use of that text does | ||||||
14 | not accelerate or delay the taking effect of (i) the changes | ||||||
15 | made by this Act or (ii) provisions derived from any other | ||||||
16 | Public Act.
| ||||||
17 | Section 99. Effective date. This Act takes effect upon | ||||||
18 | becoming law.
|