Bill Text: IL HB3423 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer or class 2 brewer to obtain a beer showcase permit. Makes conforming changes. Provides that a class 3 brewer licensee who meets certain criteria may obtain a self-distribution exemption to allow the sale of not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, to retail licensees and certain brewers. Provides that a class 2 brewer may transfer up to 139,500 gallons (instead of 31,000 gallons) of beer to a brew pub wholly owned and operated by the class 2 brewer. With regard to special event retailer's licenses and special use permit licenses, provides that those licenses shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form. Removes a provision requiring certain brewers to file a report of their water usage. Provides that any retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced) 2023-04-06 - Added Co-Sponsor Rep. Anne Stava-Murray [HB3423 Detail]

Download: Illinois-2023-HB3423-Introduced.html


103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3423

Introduced , by Rep. Will Guzzardi

SYNOPSIS AS INTRODUCED:
235 ILCS 5/1-3.43
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/6-40 new
235 ILCS 5/8-10.5

Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer or class 2 brewer to obtain a beer showcase permit. Makes conforming changes. Provides that a class 3 brewer licensee who meets certain criteria may obtain a self-distribution exemption to allow the sale of not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, to retail licensees and certain brewers. Provides that a class 2 brewer may transfer up to 139,500 gallons (instead of 31,000 gallons) of beer to a brew pub wholly owned and operated by the class 2 brewer. With regard to special event retailer's licenses and special use permit licenses, provides that those licenses shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form. Removes a provision requiring certain brewers to file a report of their water usage. Provides that any retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program.
LRB103 30931 RPS 57479 b

A BILL FOR

HB3423LRB103 30931 RPS 57479 b
1 AN ACT concerning liquor.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 1-3.43, 5-1, and 8-10.5 and by adding
6Section 6-40 as follows:
7 (235 ILCS 5/1-3.43)
8 Sec. 1-3.43. Beer showcase permit license. "Beer showcase
9permit" means a license for use by a class 1 brewer, class 2
10brewer, class 3 brewer, or distributor to allow for the
11transfer of beer only from an existing licensed premises of a
12class 1 brewer, class 2 brewer, class 3 brewer, or distributor
13to a designated site for a specific event.
14(Source: P.A. 102-442, eff. 8-20-21; revised 2-28-22.)
15 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
16 Sec. 5-1. Licenses issued by the Illinois Liquor Control
17Commission shall be of the following classes:
18 (a) Manufacturer's license - Class 1. Distiller, Class 2.
19Rectifier, Class 3. Brewer, Class 4. First Class Wine
20Manufacturer, Class 5. Second Class Wine Manufacturer, Class
216. First Class Winemaker, Class 7. Second Class Winemaker,
22Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,

HB3423- 2 -LRB103 30931 RPS 57479 b
1Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
2Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
3Class 14. Class 3 Brewer,
4 (b) Distributor's license,
5 (c) Importing Distributor's license,
6 (d) Retailer's license,
7 (e) Special Event Retailer's license (not-for-profit),
8 (f) Railroad license,
9 (g) Boat license,
10 (h) Non-Beverage User's license,
11 (i) Wine-maker's premises license,
12 (j) Airplane license,
13 (k) Foreign importer's license,
14 (l) Broker's license,
15 (m) Non-resident dealer's license,
16 (n) Brew Pub license,
17 (o) Auction liquor license,
18 (p) Caterer retailer license,
19 (q) Special use permit license,
20 (r) Winery shipper's license,
21 (s) Craft distiller tasting permit,
22 (t) Brewer warehouse permit,
23 (u) Distilling pub license,
24 (v) Craft distiller warehouse permit,
25 (w) Beer showcase permit.
26 No person, firm, partnership, corporation, or other legal

HB3423- 3 -LRB103 30931 RPS 57479 b
1business entity that is engaged in the manufacturing of wine
2may concurrently obtain and hold a wine-maker's license and a
3wine manufacturer's license.
4 (a) A manufacturer's license shall allow the manufacture,
5importation in bulk, storage, distribution and sale of
6alcoholic liquor to persons without the State, as may be
7permitted by law and to licensees in this State as follows:
8 Class 1. A Distiller may make sales and deliveries of
9alcoholic liquor to distillers, rectifiers, importing
10distributors, distributors and non-beverage users and to no
11other licensees.
12 Class 2. A Rectifier, who is not a distiller, as defined
13herein, may make sales and deliveries of alcoholic liquor to
14rectifiers, importing distributors, distributors, retailers
15and non-beverage users and to no other licensees.
16 Class 3. A Brewer may make sales and deliveries of beer to
17importing distributors and distributors and may make sales as
18authorized under subsection (e) of Section 6-4 of this Act,
19including any alcoholic liquor that subsection (e) of Section
206-4 authorizes a brewer to sell in its original package only to
21a non-licensee for pick-up by a non-licensee either within the
22interior of the brewery premises or at outside of the brewery
23premises at a curb-side or parking lot adjacent to the brewery
24premises, subject to any local ordinance.
25 Class 4. A first class wine-manufacturer may make sales
26and deliveries of up to 50,000 gallons of wine to

HB3423- 4 -LRB103 30931 RPS 57479 b
1manufacturers, importing distributors and distributors, and to
2no other licensees. If a first-class wine-manufacturer
3manufactures beer, it shall also obtain and shall only be
4eligible for, in addition to any current license, a class 1
5brewer license, shall not manufacture more than 930,000
6gallons of beer per year, and shall not be a member of or
7affiliated with, directly or indirectly, a manufacturer that
8produces more than 930,000 gallons of beer per year. If the
9first-class wine-manufacturer manufactures spirits, it shall
10also obtain and shall only be eligible for, in addition to any
11current license, a class 1 craft distiller license, shall not
12manufacture more than 50,000 gallons of spirits per year, and
13shall not be a member of or affiliated with, directly or
14indirectly, a manufacturer that produces more than 50,000
15gallons of spirits per year. A first-class wine-manufacturer
16shall be permitted to sell wine manufactured at the
17first-class wine-manufacturer premises to non-licensees.
18 Class 5. A second class Wine manufacturer may make sales
19and deliveries of more than 50,000 gallons of wine to
20manufacturers, importing distributors and distributors and to
21no other licensees.
22 Class 6. A first-class wine-maker's license shall allow
23the manufacture of up to 50,000 gallons of wine per year, and
24the storage and sale of such wine to distributors in the State
25and to persons without the State, as may be permitted by law. A
26person who, prior to June 1, 2008 (the effective date of Public

HB3423- 5 -LRB103 30931 RPS 57479 b
1Act 95-634), is a holder of a first-class wine-maker's license
2and annually produces more than 25,000 gallons of its own wine
3and who distributes its wine to licensed retailers shall cease
4this practice on or before July 1, 2008 in compliance with
5Public Act 95-634. If a first-class wine-maker manufactures
6beer, it shall also obtain and shall only be eligible for, in
7addition to any current license, a class 1 brewer license,
8shall not manufacture more than 930,000 gallons of beer per
9year, and shall not be a member of or affiliated with, directly
10or indirectly, a manufacturer that produces more than 930,000
11gallons of beer per year. If the first-class wine-maker
12manufactures spirits, it shall also obtain and shall only be
13eligible for, in addition to any current license, a class 1
14craft distiller license, shall not manufacture more than
1550,000 gallons of spirits per year, and shall not be a member
16of or affiliated with, directly or indirectly, a manufacturer
17that produces more than 50,000 gallons of spirits per year. A
18first-class wine-maker holding a class 1 brewer license or a
19class 1 craft distiller license shall not be eligible for a
20wine-maker's premises license but shall be permitted to sell
21wine manufactured at the first-class wine-maker premises to
22non-licensees.
23 Class 7. A second-class wine-maker's license shall allow
24the manufacture of up to 150,000 gallons of wine per year, and
25the storage and sale of such wine to distributors in this State
26and to persons without the State, as may be permitted by law. A

HB3423- 6 -LRB103 30931 RPS 57479 b
1person who, prior to June 1, 2008 (the effective date of Public
2Act 95-634), is a holder of a second-class wine-maker's
3license and annually produces more than 25,000 gallons of its
4own wine and who distributes its wine to licensed retailers
5shall cease this practice on or before July 1, 2008 in
6compliance with Public Act 95-634. If a second-class
7wine-maker manufactures beer, it shall also obtain and shall
8only be eligible for, in addition to any current license, a
9class 2 brewer license, shall not manufacture more than
103,720,000 gallons of beer per year, and shall not be a member
11of or affiliated with, directly or indirectly, a manufacturer
12that produces more than 3,720,000 gallons of beer per year. If
13a second-class wine-maker manufactures spirits, it shall also
14obtain and shall only be eligible for, in addition to any
15current license, a class 2 craft distiller license, shall not
16manufacture more than 100,000 gallons of spirits per year, and
17shall not be a member of or affiliated with, directly or
18indirectly, a manufacturer that produces more than 100,000
19gallons of spirits per year.
20 Class 8. A limited wine-manufacturer may make sales and
21deliveries not to exceed 40,000 gallons of wine per year to
22distributors, and to non-licensees in accordance with the
23provisions of this Act.
24 Class 9. A craft distiller license, which may only be held
25by a class 1 craft distiller licensee or class 2 craft
26distiller licensee but not held by both a class 1 craft

HB3423- 7 -LRB103 30931 RPS 57479 b
1distiller licensee and a class 2 craft distiller licensee,
2shall grant all rights conveyed by either: (i) a class 1 craft
3distiller license if the craft distiller holds a class 1 craft
4distiller license; or (ii) a class 2 craft distiller licensee
5if the craft distiller holds a class 2 craft distiller
6license.
7 Class 10. A class 1 craft distiller license, which may
8only be issued to a licensed craft distiller or licensed
9non-resident dealer, shall allow the manufacture of up to
1050,000 gallons of spirits per year provided that the class 1
11craft distiller licensee does not manufacture more than a
12combined 50,000 gallons of spirits per year and is not a member
13of or affiliated with, directly or indirectly, a manufacturer
14that produces more than 50,000 gallons of spirits per year. If
15a class 1 craft distiller manufactures beer, it shall also
16obtain and shall only be eligible for, in addition to any
17current license, a class 1 brewer license, shall not
18manufacture more than 930,000 gallons of beer per year, and
19shall not be a member of or affiliated with, directly or
20indirectly, a manufacturer that produces more than 930,000
21gallons of beer per year. If a class 1 craft distiller
22manufactures wine, it shall also obtain and shall only be
23eligible for, in addition to any current license, a
24first-class wine-manufacturer license or a first-class
25wine-maker's license, shall not manufacture more than 50,000
26gallons of wine per year, and shall not be a member of or

HB3423- 8 -LRB103 30931 RPS 57479 b
1affiliated with, directly or indirectly, a manufacturer that
2produces more than 50,000 gallons of wine per year. A class 1
3craft distiller licensee may make sales and deliveries to
4importing distributors and distributors and to retail
5licensees in accordance with the conditions set forth in
6paragraph (19) of subsection (a) of Section 3-12 of this Act.
7However, the aggregate amount of spirits sold to non-licensees
8and sold or delivered to retail licensees may not exceed 5,000
9gallons per year.
10 A class 1 craft distiller licensee may sell up to 5,000
11gallons of such spirits to non-licensees to the extent
12permitted by any exemption approved by the State Commission
13pursuant to Section 6-4 of this Act. A class 1 craft distiller
14license holder may store such spirits at a non-contiguous
15licensed location, but at no time shall a class 1 craft
16distiller license holder directly or indirectly produce in the
17aggregate more than 50,000 gallons of spirits per year.
18 A class 1 craft distiller licensee may hold more than one
19class 1 craft distiller's license. However, a class 1 craft
20distiller that holds more than one class 1 craft distiller
21license shall not manufacture, in the aggregate, more than
2250,000 gallons of spirits by distillation per year and shall
23not sell, in the aggregate, more than 5,000 gallons of such
24spirits to non-licensees in accordance with an exemption
25approved by the State Commission pursuant to Section 6-4 of
26this Act.

HB3423- 9 -LRB103 30931 RPS 57479 b
1 Class 11. A class 2 craft distiller license, which may
2only be issued to a licensed craft distiller or licensed
3non-resident dealer, shall allow the manufacture of up to
4100,000 gallons of spirits per year provided that the class 2
5craft distiller licensee does not manufacture more than a
6combined 100,000 gallons of spirits per year and is not a
7member of or affiliated with, directly or indirectly, a
8manufacturer that produces more than 100,000 gallons of
9spirits per year. If a class 2 craft distiller manufactures
10beer, it shall also obtain and shall only be eligible for, in
11addition to any current license, a class 2 brewer license,
12shall not manufacture more than 3,720,000 gallons of beer per
13year, and shall not be a member of or affiliated with, directly
14or indirectly, a manufacturer that produces more than
153,720,000 gallons of beer per year. If a class 2 craft
16distiller manufactures wine, it shall also obtain and shall
17only be eligible for, in addition to any current license, a
18second-class wine-maker's license, shall not manufacture more
19than 150,000 gallons of wine per year, and shall not be a
20member of or affiliated with, directly or indirectly, a
21manufacturer that produces more than 150,000 gallons of wine
22per year. A class 2 craft distiller licensee may make sales and
23deliveries to importing distributors and distributors, but
24shall not make sales or deliveries to any other licensee. If
25the State Commission provides prior approval, a class 2 craft
26distiller licensee may annually transfer up to 100,000 gallons

HB3423- 10 -LRB103 30931 RPS 57479 b
1of spirits manufactured by that class 2 craft distiller
2licensee to the premises of a licensed class 2 craft distiller
3wholly owned and operated by the same licensee. A class 2 craft
4distiller may transfer spirits to a distilling pub wholly
5owned and operated by the class 2 craft distiller subject to
6the following limitations and restrictions: (i) the transfer
7shall not annually exceed more than 5,000 gallons; (ii) the
8annual amount transferred shall reduce the distilling pub's
9annual permitted production limit; (iii) all spirits
10transferred shall be subject to Article VIII of this Act; (iv)
11a written record shall be maintained by the distiller and
12distilling pub specifying the amount, date of delivery, and
13receipt of the product by the distilling pub; and (v) the
14distilling pub shall be located no farther than 80 miles from
15the class 2 craft distiller's licensed location.
16 A class 2 craft distiller shall, prior to transferring
17spirits to a distilling pub wholly owned by the class 2 craft
18distiller, furnish a written notice to the State Commission of
19intent to transfer spirits setting forth the name and address
20of the distilling pub and shall annually submit to the State
21Commission a verified report identifying the total gallons of
22spirits transferred to the distilling pub wholly owned by the
23class 2 craft distiller.
24 A class 2 craft distiller license holder may store such
25spirits at a non-contiguous licensed location, but at no time
26shall a class 2 craft distiller license holder directly or

HB3423- 11 -LRB103 30931 RPS 57479 b
1indirectly produce in the aggregate more than 100,000 gallons
2of spirits per year.
3 Class 12. A class 1 brewer license, which may only be
4issued to a licensed brewer or licensed non-resident dealer,
5shall allow the manufacture of up to 930,000 gallons of beer
6per year provided that the class 1 brewer licensee does not
7manufacture more than a combined 930,000 gallons of beer per
8year and is not a member of or affiliated with, directly or
9indirectly, a manufacturer that produces more than 930,000
10gallons of beer per year. If a class 1 brewer manufactures
11spirits, it shall also obtain and shall only be eligible for,
12in addition to any current license, a class 1 craft distiller
13license, shall not manufacture more than 50,000 gallons of
14spirits per year, and shall not be a member of or affiliated
15with, directly or indirectly, a manufacturer that produces
16more than 50,000 gallons of spirits per year. If a class 1
17craft brewer manufactures wine, it shall also obtain and shall
18only be eligible for, in addition to any current license, a
19first-class wine-manufacturer license or a first-class
20wine-maker's license, shall not manufacture more than 50,000
21gallons of wine per year, and shall not be a member of or
22affiliated with, directly or indirectly, a manufacturer that
23produces more than 50,000 gallons of wine per year. A class 1
24brewer licensee may make sales and deliveries to importing
25distributors and distributors and to retail licensees in
26accordance with the conditions set forth in paragraph (18) of

HB3423- 12 -LRB103 30931 RPS 57479 b
1subsection (a) of Section 3-12 of this Act. If the State
2Commission provides prior approval, a class 1 brewer may
3annually transfer up to 930,000 gallons of beer manufactured
4by that class 1 brewer to the premises of a licensed class 1
5brewer wholly owned and operated by the same licensee.
6 Class 13. A class 2 brewer license, which may only be
7issued to a licensed brewer or licensed non-resident dealer,
8shall allow the manufacture of up to 3,720,000 gallons of beer
9per year provided that the class 2 brewer licensee does not
10manufacture more than a combined 3,720,000 gallons of beer per
11year and is not a member of or affiliated with, directly or
12indirectly, a manufacturer that produces more than 3,720,000
13gallons of beer per year. If a class 2 brewer manufactures
14spirits, it shall also obtain and shall only be eligible for,
15in addition to any current license, a class 2 craft distiller
16license, shall not manufacture more than 100,000 gallons of
17spirits per year, and shall not be a member of or affiliated
18with, directly or indirectly, a manufacturer that produces
19more than 100,000 gallons of spirits per year. If a class 2
20craft distiller manufactures wine, it shall also obtain and
21shall only be eligible for, in addition to any current
22license, a second-class wine-maker's license, shall not
23manufacture more than 150,000 gallons of wine per year, and
24shall not be a member of or affiliated with, directly or
25indirectly, a manufacturer that produces more than 150,000
26gallons of wine a year. A class 2 brewer licensee may make

HB3423- 13 -LRB103 30931 RPS 57479 b
1sales and deliveries to importing distributors and
2distributors, but shall not make sales or deliveries to any
3other licensee. If the State Commission provides prior
4approval, a class 2 brewer licensee may annually transfer up
5to 3,720,000 gallons of beer manufactured by that class 2
6brewer licensee to the premises of a licensed class 2 brewer
7wholly owned and operated by the same licensee.
8 A class 2 brewer may transfer beer to a brew pub wholly
9owned and operated by the class 2 brewer subject to the
10following limitations and restrictions: (i) the transfer shall
11not annually exceed more than 139,500 31,000 gallons; (ii) the
12annual amount transferred shall reduce the brew pub's annual
13permitted production limit; (iii) all beer transferred shall
14be subject to Article VIII of this Act; (iv) a written record
15shall be maintained by the brewer and brew pub specifying the
16amount, date of delivery, and receipt of the product by the
17brew pub; and (v) the brew pub shall be located no farther than
1880 miles from the class 2 brewer's licensed location.
19 A class 2 brewer shall, prior to transferring beer to a
20brew pub wholly owned by the class 2 brewer, furnish a written
21notice to the State Commission of intent to transfer beer
22setting forth the name and address of the brew pub and shall
23annually submit to the State Commission a verified report
24identifying the total gallons of beer transferred to the brew
25pub wholly owned by the class 2 brewer.
26 Class 14. A class 3 brewer license, which may be issued to

HB3423- 14 -LRB103 30931 RPS 57479 b
1a brewer or a non-resident dealer, shall allow the manufacture
2of no more than 465,000 gallons of beer per year and no more
3than 155,000 gallons at a single brewery premises, and shall
4allow the sale of no more than 77,500 6,200 gallons of beer
5from each in-state or out-of-state class 3 brewery premises,
6or 232,500 18,600 gallons in the aggregate, to retail
7licensees, class 1 brewers, class 2 brewers, and class 3
8brewers as long as the class 3 brewer licensee does not
9manufacture more than a combined 465,000 gallons of beer per
10year and is not a member of or affiliated with, directly or
11indirectly, a manufacturer that produces more than 465,000
12gallons of beer per year to make sales to importing
13distributors, distributors, retail licensees, brewers, class 1
14brewers, class 2 brewers, and class 3 brewers in accordance
15with the conditions set forth in paragraph (20) of subsection
16(a) of Section 3-12. If the State Commission provides prior
17approval, a class 3 brewer may annually transfer up to 155,000
18gallons of beer manufactured by that class 3 brewer to the
19premises of a licensed class 3 brewer wholly owned and
20operated by the same licensee. A class 3 brewer shall
21manufacture beer at the brewer's class 3 designated licensed
22premises, and may sell beer as otherwise provided in this Act.
23 (a-1) A manufacturer which is licensed in this State to
24make sales or deliveries of alcoholic liquor to licensed
25distributors or importing distributors and which enlists
26agents, representatives, or individuals acting on its behalf

HB3423- 15 -LRB103 30931 RPS 57479 b
1who contact licensed retailers on a regular and continual
2basis in this State must register those agents,
3representatives, or persons acting on its behalf with the
4State Commission.
5 Registration of agents, representatives, or persons acting
6on behalf of a manufacturer is fulfilled by submitting a form
7to the Commission. The form shall be developed by the
8Commission and shall include the name and address of the
9applicant, the name and address of the manufacturer he or she
10represents, the territory or areas assigned to sell to or
11discuss pricing terms of alcoholic liquor, and any other
12questions deemed appropriate and necessary. All statements in
13the forms required to be made by law or by rule shall be deemed
14material, and any person who knowingly misstates any material
15fact under oath in an application is guilty of a Class B
16misdemeanor. Fraud, misrepresentation, false statements,
17misleading statements, evasions, or suppression of material
18facts in the securing of a registration are grounds for
19suspension or revocation of the registration. The State
20Commission shall post a list of registered agents on the
21Commission's website.
22 (b) A distributor's license shall allow (i) the wholesale
23purchase and storage of alcoholic liquors and sale of
24alcoholic liquors to licensees in this State and to persons
25without the State, as may be permitted by law; (ii) the sale of
26beer, cider, mead, or any combination thereof to brewers,

HB3423- 16 -LRB103 30931 RPS 57479 b
1class 1 brewers, and class 2 brewers that, pursuant to
2subsection (e) of Section 6-4 of this Act, sell beer, cider,
3mead, or any combination thereof to non-licensees at their
4breweries; (iii) the sale of vermouth to class 1 craft
5distillers and class 2 craft distillers that, pursuant to
6subsection (e) of Section 6-4 of this Act, sell spirits,
7vermouth, or both spirits and vermouth to non-licensees at
8their distilleries; or (iv) as otherwise provided in this Act.
9No person licensed as a distributor shall be granted a
10non-resident dealer's license.
11 (c) An importing distributor's license may be issued to
12and held by those only who are duly licensed distributors,
13upon the filing of an application by a duly licensed
14distributor, with the Commission and the Commission shall,
15without the payment of any fee, immediately issue such
16importing distributor's license to the applicant, which shall
17allow the importation of alcoholic liquor by the licensee into
18this State from any point in the United States outside this
19State, and the purchase of alcoholic liquor in barrels, casks
20or other bulk containers and the bottling of such alcoholic
21liquors before resale thereof, but all bottles or containers
22so filled shall be sealed, labeled, stamped and otherwise made
23to comply with all provisions, rules and regulations governing
24manufacturers in the preparation and bottling of alcoholic
25liquors. The importing distributor's license shall permit such
26licensee to purchase alcoholic liquor from Illinois licensed

HB3423- 17 -LRB103 30931 RPS 57479 b
1non-resident dealers and foreign importers only. No person
2licensed as an importing distributor shall be granted a
3non-resident dealer's license.
4 (d) A retailer's license shall allow the licensee to sell
5and offer for sale at retail, only in the premises specified in
6the license, alcoholic liquor for use or consumption, but not
7for resale in any form. Except as provided in Section 6-16,
86-29, or 6-29.1, nothing in this Act shall deny, limit,
9remove, or restrict the ability of a holder of a retailer's
10license to transfer or ship alcoholic liquor to the purchaser
11for use or consumption subject to any applicable local law or
12ordinance. For the purposes of this Section, "shipping" means
13the movement of alcoholic liquor from a licensed retailer to a
14consumer via a common carrier. Except as provided in Section
156-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,
16remove, or restrict the ability of a holder of a retailer's
17license to deliver alcoholic liquor to the purchaser for use
18or consumption. The delivery shall be made only within 12
19hours from the time the alcoholic liquor leaves the licensed
20premises of the retailer for delivery. For the purposes of
21this Section, "delivery" means the movement of alcoholic
22liquor purchased from a licensed retailer to a consumer
23through the following methods:
24 (1) delivery within licensed retailer's parking lot,
25 including curbside, for pickup by the consumer;
26 (2) delivery by an owner, officer, director,

HB3423- 18 -LRB103 30931 RPS 57479 b
1 shareholder, or employee of the licensed retailer; or
2 (3) delivery by a third-party contractor, independent
3 contractor, or agent with whom the licensed retailer has
4 contracted to make deliveries of alcoholic liquors.
5 Under subsection (1), (2), or (3), delivery shall not
6include the use of common carriers.
7 Any retail license issued to a manufacturer shall only
8permit the manufacturer to sell beer at retail on the premises
9actually occupied by the manufacturer. For the purpose of
10further describing the type of business conducted at a retail
11licensed premises, a retailer's licensee may be designated by
12the State Commission as (i) an on premise consumption
13retailer, (ii) an off premise sale retailer, or (iii) a
14combined on premise consumption and off premise sale retailer.
15 Except for a municipality with a population of more than
161,000,000 inhabitants, a home rule unit may not regulate the
17delivery of alcoholic liquor inconsistent with this
18subsection. This paragraph is a limitation under subsection
19(i) of Section 6 of Article VII of the Illinois Constitution on
20the concurrent exercise by home rule units of powers and
21functions exercised by the State.
22 Notwithstanding any other provision of this subsection
23(d), a retail licensee may sell alcoholic liquors to a special
24event retailer licensee for resale to the extent permitted
25under subsection (e).
26 (e) A special event retailer's license (not-for-profit)

HB3423- 19 -LRB103 30931 RPS 57479 b
1shall permit the licensee to purchase alcoholic liquors from
2an Illinois licensed distributor (unless the licensee
3purchases less than $500 of alcoholic liquors for the special
4event, in which case the licensee may purchase the alcoholic
5liquors from a licensed retailer) and shall allow the licensee
6to sell and offer for sale, at retail, alcoholic liquors for
7consumption on or off the premises specified in the license
8use or consumption, but not for resale in any form and only at
9the location and on the specific dates designated for the
10special event in the license. An applicant for a special event
11retailer license must (i) furnish with the application: (A) a
12resale number issued under Section 2c of the Retailers'
13Occupation Tax Act or evidence that the applicant is
14registered under Section 2a of the Retailers' Occupation Tax
15Act, (B) a current, valid exemption identification number
16issued under Section 1g of the Retailers' Occupation Tax Act,
17and a certification to the Commission that the purchase of
18alcoholic liquors will be a tax-exempt purchase, or (C) a
19statement that the applicant is not registered under Section
202a of the Retailers' Occupation Tax Act, does not hold a resale
21number under Section 2c of the Retailers' Occupation Tax Act,
22and does not hold an exemption number under Section 1g of the
23Retailers' Occupation Tax Act, in which event the Commission
24shall set forth on the special event retailer's license a
25statement to that effect; (ii) submit with the application
26proof satisfactory to the State Commission that the applicant

HB3423- 20 -LRB103 30931 RPS 57479 b
1will provide dram shop liability insurance in the maximum
2limits; and (iii) show proof satisfactory to the State
3Commission that the applicant has obtained local authority
4approval.
5 Nothing in this Act prohibits an Illinois licensed
6distributor from offering credit or a refund for unused,
7salable alcoholic liquors to a holder of a special event
8retailer's license or the special event retailer's licensee
9from accepting the credit or refund of alcoholic liquors at
10the conclusion of the event specified in the license.
11 (f) A railroad license shall permit the licensee to import
12alcoholic liquors into this State from any point in the United
13States outside this State and to store such alcoholic liquors
14in this State; to make wholesale purchases of alcoholic
15liquors directly from manufacturers, foreign importers,
16distributors and importing distributors from within or outside
17this State; and to store such alcoholic liquors in this State;
18provided that the above powers may be exercised only in
19connection with the importation, purchase or storage of
20alcoholic liquors to be sold or dispensed on a club, buffet,
21lounge or dining car operated on an electric, gas or steam
22railway in this State; and provided further, that railroad
23licensees exercising the above powers shall be subject to all
24provisions of Article VIII of this Act as applied to importing
25distributors. A railroad license shall also permit the
26licensee to sell or dispense alcoholic liquors on any club,

HB3423- 21 -LRB103 30931 RPS 57479 b
1buffet, lounge or dining car operated on an electric, gas or
2steam railway regularly operated by a common carrier in this
3State, but shall not permit the sale for resale of any
4alcoholic liquors to any licensee within this State. A license
5shall be obtained for each car in which such sales are made.
6 (g) A boat license shall allow the sale of alcoholic
7liquor in individual drinks, on any passenger boat regularly
8operated as a common carrier on navigable waters in this State
9or on any riverboat operated under the Illinois Gambling Act,
10which boat or riverboat maintains a public dining room or
11restaurant thereon.
12 (h) A non-beverage user's license shall allow the licensee
13to purchase alcoholic liquor from a licensed manufacturer or
14importing distributor, without the imposition of any tax upon
15the business of such licensed manufacturer or importing
16distributor as to such alcoholic liquor to be used by such
17licensee solely for the non-beverage purposes set forth in
18subsection (a) of Section 8-1 of this Act, and such licenses
19shall be divided and classified and shall permit the purchase,
20possession and use of limited and stated quantities of
21alcoholic liquor as follows:
22Class 1, not to exceed ......................... 500 gallons
23Class 2, not to exceed ....................... 1,000 gallons
24Class 3, not to exceed ....................... 5,000 gallons
25Class 4, not to exceed ...................... 10,000 gallons
26Class 5, not to exceed ....................... 50,000 gallons

HB3423- 22 -LRB103 30931 RPS 57479 b
1 (i) A wine-maker's premises license shall allow a licensee
2that concurrently holds a first-class wine-maker's license to
3sell and offer for sale at retail in the premises specified in
4such license not more than 50,000 gallons of the first-class
5wine-maker's wine that is made at the first-class wine-maker's
6licensed premises per year for use or consumption, but not for
7resale in any form. A wine-maker's premises license shall
8allow a licensee who concurrently holds a second-class
9wine-maker's license to sell and offer for sale at retail in
10the premises specified in such license up to 100,000 gallons
11of the second-class wine-maker's wine that is made at the
12second-class wine-maker's licensed premises per year for use
13or consumption but not for resale in any form. A first-class
14wine-maker that concurrently holds a class 1 brewer license or
15a class 1 craft distiller license shall not be eligible to hold
16a wine-maker's premises license. A wine-maker's premises
17license shall allow a licensee that concurrently holds a
18first-class wine-maker's license or a second-class
19wine-maker's license to sell and offer for sale at retail at
20the premises specified in the wine-maker's premises license,
21for use or consumption but not for resale in any form, any
22beer, wine, and spirits purchased from a licensed distributor.
23Upon approval from the State Commission, a wine-maker's
24premises license shall allow the licensee to sell and offer
25for sale at (i) the wine-maker's licensed premises and (ii) at
26up to 2 additional locations for use and consumption and not

HB3423- 23 -LRB103 30931 RPS 57479 b
1for resale. Each location shall require additional licensing
2per location as specified in Section 5-3 of this Act. A
3wine-maker's premises licensee shall secure liquor liability
4insurance coverage in an amount at least equal to the maximum
5liability amounts set forth in subsection (a) of Section 6-21
6of this Act.
7 (j) An airplane license shall permit the licensee to
8import alcoholic liquors into this State from any point in the
9United States outside this State and to store such alcoholic
10liquors in this State; to make wholesale purchases of
11alcoholic liquors directly from manufacturers, foreign
12importers, distributors and importing distributors from within
13or outside this State; and to store such alcoholic liquors in
14this State; provided that the above powers may be exercised
15only in connection with the importation, purchase or storage
16of alcoholic liquors to be sold or dispensed on an airplane;
17and provided further, that airplane licensees exercising the
18above powers shall be subject to all provisions of Article
19VIII of this Act as applied to importing distributors. An
20airplane licensee shall also permit the sale or dispensing of
21alcoholic liquors on any passenger airplane regularly operated
22by a common carrier in this State, but shall not permit the
23sale for resale of any alcoholic liquors to any licensee
24within this State. A single airplane license shall be required
25of an airline company if liquor service is provided on board
26aircraft in this State. The annual fee for such license shall

HB3423- 24 -LRB103 30931 RPS 57479 b
1be as determined in Section 5-3.
2 (k) A foreign importer's license shall permit such
3licensee to purchase alcoholic liquor from Illinois licensed
4non-resident dealers only, and to import alcoholic liquor
5other than in bulk from any point outside the United States and
6to sell such alcoholic liquor to Illinois licensed importing
7distributors and to no one else in Illinois; provided that (i)
8the foreign importer registers with the State Commission every
9brand of alcoholic liquor that it proposes to sell to Illinois
10licensees during the license period, (ii) the foreign importer
11complies with all of the provisions of Section 6-9 of this Act
12with respect to registration of such Illinois licensees as may
13be granted the right to sell such brands at wholesale, and
14(iii) the foreign importer complies with the provisions of
15Sections 6-5 and 6-6 of this Act to the same extent that these
16provisions apply to manufacturers.
17 (l) (i) A broker's license shall be required of all
18persons who solicit orders for, offer to sell or offer to
19supply alcoholic liquor to retailers in the State of Illinois,
20or who offer to retailers to ship or cause to be shipped or to
21make contact with distillers, craft distillers, rectifiers,
22brewers or manufacturers or any other party within or without
23the State of Illinois in order that alcoholic liquors be
24shipped to a distributor, importing distributor or foreign
25importer, whether such solicitation or offer is consummated
26within or without the State of Illinois.

HB3423- 25 -LRB103 30931 RPS 57479 b
1 No holder of a retailer's license issued by the Illinois
2Liquor Control Commission shall purchase or receive any
3alcoholic liquor, the order for which was solicited or offered
4for sale to such retailer by a broker unless the broker is the
5holder of a valid broker's license.
6 The broker shall, upon the acceptance by a retailer of the
7broker's solicitation of an order or offer to sell or supply or
8deliver or have delivered alcoholic liquors, promptly forward
9to the Illinois Liquor Control Commission a notification of
10said transaction in such form as the Commission may by
11regulations prescribe.
12 (ii) A broker's license shall be required of a person
13within this State, other than a retail licensee, who, for a fee
14or commission, promotes, solicits, or accepts orders for
15alcoholic liquor, for use or consumption and not for resale,
16to be shipped from this State and delivered to residents
17outside of this State by an express company, common carrier,
18or contract carrier. This Section does not apply to any person
19who promotes, solicits, or accepts orders for wine as
20specifically authorized in Section 6-29 of this Act.
21 A broker's license under this subsection (l) shall not
22entitle the holder to buy or sell any alcoholic liquors for his
23own account or to take or deliver title to such alcoholic
24liquors.
25 This subsection (l) shall not apply to distributors,
26employees of distributors, or employees of a manufacturer who

HB3423- 26 -LRB103 30931 RPS 57479 b
1has registered the trademark, brand or name of the alcoholic
2liquor pursuant to Section 6-9 of this Act, and who regularly
3sells such alcoholic liquor in the State of Illinois only to
4its registrants thereunder.
5 Any agent, representative, or person subject to
6registration pursuant to subsection (a-1) of this Section
7shall not be eligible to receive a broker's license.
8 (m) A non-resident dealer's license shall permit such
9licensee to ship into and warehouse alcoholic liquor into this
10State from any point outside of this State, and to sell such
11alcoholic liquor to Illinois licensed foreign importers and
12importing distributors and to no one else in this State;
13provided that (i) said non-resident dealer shall register with
14the Illinois Liquor Control Commission each and every brand of
15alcoholic liquor which it proposes to sell to Illinois
16licensees during the license period, (ii) it shall comply with
17all of the provisions of Section 6-9 hereof with respect to
18registration of such Illinois licensees as may be granted the
19right to sell such brands at wholesale by duly filing such
20registration statement, thereby authorizing the non-resident
21dealer to proceed to sell such brands at wholesale, and (iii)
22the non-resident dealer shall comply with the provisions of
23Sections 6-5 and 6-6 of this Act to the same extent that these
24provisions apply to manufacturers. No person licensed as a
25non-resident dealer shall be granted a distributor's or
26importing distributor's license.

HB3423- 27 -LRB103 30931 RPS 57479 b
1 (n) A brew pub license shall allow the licensee to only (i)
2manufacture up to 155,000 gallons of beer per year only on the
3premises specified in the license, (ii) make sales of the beer
4manufactured on the premises or, with the approval of the
5Commission, beer manufactured on another brew pub licensed
6premises that is wholly owned and operated by the same
7licensee to importing distributors, distributors, and to
8non-licensees for use and consumption, (iii) store the beer
9upon the premises, (iv) sell and offer for sale at retail from
10the licensed premises for off-premises consumption no more
11than 155,000 gallons per year so long as such sales are only
12made in-person, (v) sell and offer for sale at retail for use
13and consumption on the premises specified in the license any
14form of alcoholic liquor purchased from a licensed distributor
15or importing distributor, (vi) with the prior approval of the
16Commission, annually transfer no more than 155,000 gallons of
17beer manufactured on the premises to a licensed brew pub
18wholly owned and operated by the same licensee, and (vii)
19notwithstanding item (i) of this subsection, brew pubs wholly
20owned and operated by the same licensee may combine each
21location's production limit of 155,000 gallons of beer per
22year and allocate the aggregate total between the wholly
23owned, operated, and licensed locations.
24 A brew pub licensee shall not under any circumstance sell
25or offer for sale beer manufactured by the brew pub licensee to
26retail licensees.

HB3423- 28 -LRB103 30931 RPS 57479 b
1 A person who holds a class 2 brewer license may
2simultaneously hold a brew pub license if the class 2 brewer
3(i) does not, under any circumstance, sell or offer for sale
4beer manufactured by the class 2 brewer to retail licensees;
5(ii) does not hold more than 3 brew pub licenses in this State;
6(iii) does not manufacture more than a combined 3,720,000
7gallons of beer per year, including the beer manufactured at
8the brew pub; and (iv) is not a member of or affiliated with,
9directly or indirectly, a manufacturer that produces more than
103,720,000 gallons of beer per year or any other alcoholic
11liquor.
12 Notwithstanding any other provision of this Act, a
13licensed brewer, class 2 brewer, or non-resident dealer who
14before July 1, 2015 manufactured less than 3,720,000 gallons
15of beer per year and held a brew pub license on or before July
161, 2015 may (i) continue to qualify for and hold that brew pub
17license for the licensed premises and (ii) manufacture more
18than 3,720,000 gallons of beer per year and continue to
19qualify for and hold that brew pub license if that brewer,
20class 2 brewer, or non-resident dealer does not simultaneously
21hold a class 1 brewer license and is not a member of or
22affiliated with, directly or indirectly, a manufacturer that
23produces more than 3,720,000 gallons of beer per year or that
24produces any other alcoholic liquor.
25 A brew pub licensee may apply for a class 3 brewer license
26and, upon: (i) meeting all applicable qualifications of this

HB3423- 29 -LRB103 30931 RPS 57479 b
1Act, and relinquishing all commonly owned brew pub or retail
2licenses, shall be issued a class 3 brewer license. Nothing in
3this Act shall prohibit the issuance of a class 3 brewer
4license if the applicant:
5 (1) has a valid retail license on or before May 1,
6 2021;
7 (2) has an ownership interest in at least two brew
8 pubs licenses on or before May 1, 2021;
9 (3) the brew pub licensee applies for a class 3 brewer
10 license on or before October 1, 2022 and relinquishes all
11 commonly owned brew pub licenses; and
12 (4) relinquishes all commonly owned retail licenses on
13 or before December 31, 2022.
14 If a brew pub licensee is issued a class 3 brewer license,
15the class 3 brewer license shall expire on the same date as the
16existing brew pub license and the State Commission shall not
17require a class 3 brewer licensee to obtain a brewer license,
18or in the alternative to pay a fee for a brewer license, until
19the date the brew pub license of the applicant would have
20expired.
21 (o) A caterer retailer license shall allow the holder to
22serve alcoholic liquors as an incidental part of a food
23service that serves prepared meals which excludes the serving
24of snacks as the primary meal, either on or off-site whether
25licensed or unlicensed. A caterer retailer license shall allow
26the holder, a distributor, or an importing distributor to

HB3423- 30 -LRB103 30931 RPS 57479 b
1transfer any inventory to and from the holder's retail
2premises and shall allow the holder to purchase alcoholic
3liquor from a distributor or importing distributor to be
4delivered directly to an off-site event.
5 Nothing in this Act prohibits a distributor or importing
6distributor from offering credit or a refund for unused,
7salable beer to a holder of a caterer retailer license or a
8caterer retailer licensee from accepting a credit or refund
9for unused, salable beer, in the event an act of God is the
10sole reason an off-site event is cancelled and if: (i) the
11holder of a caterer retailer license has not transferred
12alcoholic liquor from its caterer retailer premises to an
13off-site location; (ii) the distributor or importing
14distributor offers the credit or refund for the unused,
15salable beer that it delivered to the off-site premises and
16not for any unused, salable beer that the distributor or
17importing distributor delivered to the caterer retailer's
18premises; and (iii) the unused, salable beer would likely
19spoil if transferred to the caterer retailer's premises. A
20caterer retailer license shall allow the holder to transfer
21any inventory from any off-site location to its caterer
22retailer premises at the conclusion of an off-site event or
23engage a distributor or importing distributor to transfer any
24inventory from any off-site location to its caterer retailer
25premises at the conclusion of an off-site event, provided that
26the distributor or importing distributor issues bona fide

HB3423- 31 -LRB103 30931 RPS 57479 b
1charges to the caterer retailer licensee for fuel, labor, and
2delivery and the distributor or importing distributor collects
3payment from the caterer retailer licensee prior to the
4distributor or importing distributor transferring inventory to
5the caterer retailer premises.
6 For purposes of this subsection (o), an "act of God" means
7an unforeseeable event, such as a rain or snow storm, hail, a
8flood, or a similar event, that is the sole cause of the
9cancellation of an off-site, outdoor event.
10 (p) An auction liquor license shall allow the licensee to
11sell and offer for sale at auction wine and spirits for use or
12consumption, or for resale by an Illinois liquor licensee in
13accordance with provisions of this Act. An auction liquor
14license will be issued to a person and it will permit the
15auction liquor licensee to hold the auction anywhere in the
16State. An auction liquor license must be obtained for each
17auction at least 14 days in advance of the auction date.
18 (q) A special use permit license shall allow an Illinois
19licensed retailer to transfer a portion of its alcoholic
20liquor inventory from its retail licensed premises to the
21premises specified in the license hereby created; to purchase
22alcoholic liquor from a distributor or importing distributor
23to be delivered directly to the location specified in the
24license hereby created; and to sell or offer for sale at
25retail, only in the premises specified in the license hereby
26created, the transferred or delivered alcoholic liquor for

HB3423- 32 -LRB103 30931 RPS 57479 b
1consumption on or off the premises specified in the license
2use or consumption, but not for resale in any form. A special
3use permit license may be granted for the following time
4periods: one day or less; 2 or more days to a maximum of 15
5days per location in any 12-month period. An applicant for the
6special use permit license must also submit with the
7application proof satisfactory to the State Commission that
8the applicant will provide dram shop liability insurance to
9the maximum limits and have local authority approval.
10 A special use permit license shall allow the holder to
11transfer any inventory from the holder's special use premises
12to its retail premises at the conclusion of the special use
13event or engage a distributor or importing distributor to
14transfer any inventory from the holder's special use premises
15to its retail premises at the conclusion of an off-site event,
16provided that the distributor or importing distributor issues
17bona fide charges to the special use permit licensee for fuel,
18labor, and delivery and the distributor or importing
19distributor collects payment from the retail licensee prior to
20the distributor or importing distributor transferring
21inventory to the retail premises.
22 Nothing in this Act prohibits a distributor or importing
23distributor from offering credit or a refund for unused,
24salable beer to a special use permit licensee or a special use
25permit licensee from accepting a credit or refund for unused,
26salable beer at the conclusion of the event specified in the

HB3423- 33 -LRB103 30931 RPS 57479 b
1license if: (i) the holder of the special use permit license
2has not transferred alcoholic liquor from its retail licensed
3premises to the premises specified in the special use permit
4license; (ii) the distributor or importing distributor offers
5the credit or refund for the unused, salable beer that it
6delivered to the premises specified in the special use permit
7license and not for any unused, salable beer that the
8distributor or importing distributor delivered to the
9retailer's premises; and (iii) the unused, salable beer would
10likely spoil if transferred to the retailer premises.
11 (r) A winery shipper's license shall allow a person with a
12first-class or second-class wine manufacturer's license, a
13first-class or second-class wine-maker's license, or a limited
14wine manufacturer's license or who is licensed to make wine
15under the laws of another state to ship wine made by that
16licensee directly to a resident of this State who is 21 years
17of age or older for that resident's personal use and not for
18resale. Prior to receiving a winery shipper's license, an
19applicant for the license must provide the Commission with a
20true copy of its current license in any state in which it is
21licensed as a manufacturer of wine. An applicant for a winery
22shipper's license must also complete an application form that
23provides any other information the Commission deems necessary.
24The application form shall include all addresses from which
25the applicant for a winery shipper's license intends to ship
26wine, including the name and address of any third party,

HB3423- 34 -LRB103 30931 RPS 57479 b
1except for a common carrier, authorized to ship wine on behalf
2of the manufacturer. The application form shall include an
3acknowledgement consenting to the jurisdiction of the
4Commission, the Illinois Department of Revenue, and the courts
5of this State concerning the enforcement of this Act and any
6related laws, rules, and regulations, including authorizing
7the Department of Revenue and the Commission to conduct audits
8for the purpose of ensuring compliance with Public Act 95-634,
9and an acknowledgement that the wine manufacturer is in
10compliance with Section 6-2 of this Act. Any third party,
11except for a common carrier, authorized to ship wine on behalf
12of a first-class or second-class wine manufacturer's licensee,
13a first-class or second-class wine-maker's licensee, a limited
14wine manufacturer's licensee, or a person who is licensed to
15make wine under the laws of another state shall also be
16disclosed by the winery shipper's licensee, and a copy of the
17written appointment of the third-party wine provider, except
18for a common carrier, to the wine manufacturer shall be filed
19with the State Commission as a supplement to the winery
20shipper's license application or any renewal thereof. The
21winery shipper's license holder shall affirm under penalty of
22perjury, as part of the winery shipper's license application
23or renewal, that he or she only ships wine, either directly or
24indirectly through a third-party provider, from the licensee's
25own production.
26 Except for a common carrier, a third-party provider

HB3423- 35 -LRB103 30931 RPS 57479 b
1shipping wine on behalf of a winery shipper's license holder
2is the agent of the winery shipper's license holder and, as
3such, a winery shipper's license holder is responsible for the
4acts and omissions of the third-party provider acting on
5behalf of the license holder. A third-party provider, except
6for a common carrier, that engages in shipping wine into
7Illinois on behalf of a winery shipper's license holder shall
8consent to the jurisdiction of the State Commission and the
9State. Any third-party, except for a common carrier, holding
10such an appointment shall, by February 1 of each calendar year
11and upon request by the State Commission or the Department of
12Revenue, file with the State Commission a statement detailing
13each shipment made to an Illinois resident. The statement
14shall include the name and address of the third-party provider
15filing the statement, the time period covered by the
16statement, and the following information:
17 (1) the name, address, and license number of the
18 winery shipper on whose behalf the shipment was made;
19 (2) the quantity of the products delivered; and
20 (3) the date and address of the shipment.
21If the Department of Revenue or the State Commission requests
22a statement under this paragraph, the third-party provider
23must provide that statement no later than 30 days after the
24request is made. Any books, records, supporting papers, and
25documents containing information and data relating to a
26statement under this paragraph shall be kept and preserved for

HB3423- 36 -LRB103 30931 RPS 57479 b
1a period of 3 years, unless their destruction sooner is
2authorized, in writing, by the Director of Revenue, and shall
3be open and available to inspection by the Director of Revenue
4or the State Commission or any duly authorized officer, agent,
5or employee of the State Commission or the Department of
6Revenue, at all times during business hours of the day. Any
7person who violates any provision of this paragraph or any
8rule of the State Commission for the administration and
9enforcement of the provisions of this paragraph is guilty of a
10Class C misdemeanor. In case of a continuing violation, each
11day's continuance thereof shall be a separate and distinct
12offense.
13 The State Commission shall adopt rules as soon as
14practicable to implement the requirements of Public Act 99-904
15and shall adopt rules prohibiting any such third-party
16appointment of a third-party provider, except for a common
17carrier, that has been deemed by the State Commission to have
18violated the provisions of this Act with regard to any winery
19shipper licensee.
20 A winery shipper licensee must pay to the Department of
21Revenue the State liquor gallonage tax under Section 8-1 for
22all wine that is sold by the licensee and shipped to a person
23in this State. For the purposes of Section 8-1, a winery
24shipper licensee shall be taxed in the same manner as a
25manufacturer of wine. A licensee who is not otherwise required
26to register under the Retailers' Occupation Tax Act must

HB3423- 37 -LRB103 30931 RPS 57479 b
1register under the Use Tax Act to collect and remit use tax to
2the Department of Revenue for all gallons of wine that are sold
3by the licensee and shipped to persons in this State. If a
4licensee fails to remit the tax imposed under this Act in
5accordance with the provisions of Article VIII of this Act,
6the winery shipper's license shall be revoked in accordance
7with the provisions of Article VII of this Act. If a licensee
8fails to properly register and remit tax under the Use Tax Act
9or the Retailers' Occupation Tax Act for all wine that is sold
10by the winery shipper and shipped to persons in this State, the
11winery shipper's license shall be revoked in accordance with
12the provisions of Article VII of this Act.
13 A winery shipper licensee must collect, maintain, and
14submit to the Commission on a semi-annual basis the total
15number of cases per resident of wine shipped to residents of
16this State. A winery shipper licensed under this subsection
17(r) must comply with the requirements of Section 6-29 of this
18Act.
19 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
20Section 3-12, the State Commission may receive, respond to,
21and investigate any complaint and impose any of the remedies
22specified in paragraph (1) of subsection (a) of Section 3-12.
23 As used in this subsection, "third-party provider" means
24any entity that provides fulfillment house services, including
25warehousing, packaging, distribution, order processing, or
26shipment of wine, but not the sale of wine, on behalf of a

HB3423- 38 -LRB103 30931 RPS 57479 b
1licensed winery shipper.
2 (s) A craft distiller tasting permit license shall allow
3an Illinois licensed class 1 craft distiller or class 2 craft
4distiller to transfer a portion of its alcoholic liquor
5inventory from its class 1 craft distiller or class 2 craft
6distiller licensed premises to the premises specified in the
7license hereby created and to conduct a sampling, only in the
8premises specified in the license hereby created, of the
9transferred alcoholic liquor in accordance with subsection (c)
10of Section 6-31 of this Act. The transferred alcoholic liquor
11may not be sold or resold in any form. An applicant for the
12craft distiller tasting permit license must also submit with
13the application proof satisfactory to the State Commission
14that the applicant will provide dram shop liability insurance
15to the maximum limits and have local authority approval.
16 (t) A brewer warehouse permit may be issued to the holder
17of a class 1 brewer license or a class 2 brewer license. If the
18holder of the permit is a class 1 brewer licensee, the brewer
19warehouse permit shall allow the holder to store or warehouse
20up to 930,000 gallons of tax-determined beer manufactured by
21the holder of the permit at the premises specified on the
22permit. If the holder of the permit is a class 2 brewer
23licensee, the brewer warehouse permit shall allow the holder
24to store or warehouse up to 3,720,000 gallons of
25tax-determined beer manufactured by the holder of the permit
26at the premises specified on the permit. Sales to

HB3423- 39 -LRB103 30931 RPS 57479 b
1non-licensees are prohibited at the premises specified in the
2brewer warehouse permit.
3 (u) A distilling pub license shall allow the licensee to
4only (i) manufacture up to 5,000 gallons of spirits per year
5only on the premises specified in the license, (ii) make sales
6of the spirits manufactured on the premises or, with the
7approval of the State Commission, spirits manufactured on
8another distilling pub licensed premises that is wholly owned
9and operated by the same licensee to importing distributors
10and distributors and to non-licensees for use and consumption,
11(iii) store the spirits upon the premises, (iv) sell and offer
12for sale at retail from the licensed premises for off-premises
13consumption no more than 5,000 gallons per year so long as such
14sales are only made in-person, (v) sell and offer for sale at
15retail for use and consumption on the premises specified in
16the license any form of alcoholic liquor purchased from a
17licensed distributor or importing distributor, and (vi) with
18the prior approval of the State Commission, annually transfer
19no more than 5,000 gallons of spirits manufactured on the
20premises to a licensed distilling pub wholly owned and
21operated by the same licensee.
22 A distilling pub licensee shall not under any circumstance
23sell or offer for sale spirits manufactured by the distilling
24pub licensee to retail licensees.
25 A person who holds a class 2 craft distiller license may
26simultaneously hold a distilling pub license if the class 2

HB3423- 40 -LRB103 30931 RPS 57479 b
1craft distiller (i) does not, under any circumstance, sell or
2offer for sale spirits manufactured by the class 2 craft
3distiller to retail licensees; (ii) does not hold more than 3
4distilling pub licenses in this State; (iii) does not
5manufacture more than a combined 100,000 gallons of spirits
6per year, including the spirits manufactured at the distilling
7pub; and (iv) is not a member of or affiliated with, directly
8or indirectly, a manufacturer that produces more than 100,000
9gallons of spirits per year or any other alcoholic liquor.
10 (v) A craft distiller warehouse permit may be issued to
11the holder of a class 1 craft distiller or class 2 craft
12distiller license. The craft distiller warehouse permit shall
13allow the holder to store or warehouse up to 500,000 gallons of
14spirits manufactured by the holder of the permit at the
15premises specified on the permit. Sales to non-licensees are
16prohibited at the premises specified in the craft distiller
17warehouse permit.
18 (w) A beer showcase permit license shall allow an
19Illinois-licensed distributor or beer manufacturer with retail
20privileges to transfer a portion of its beer inventory from
21its licensed premises to the premises specified in the beer
22showcase permit license, and, in the case of a class 1 brewer,
23class 2 brewer, or class 3 brewer, transfer only beer the class
241 brewer, class 2 brewer, or class 3 brewer manufactures from
25its licensed premises to the premises specified in the beer
26showcase permit license; and to sell or offer for sale at

HB3423- 41 -LRB103 30931 RPS 57479 b
1retail, only in the premises specified in the beer showcase
2permit license, the transferred or delivered beer for on or
3off premise consumption, but not for resale in any form and to
4sell to non-licensees not more than 96 fluid ounces of beer per
5person. A beer showcase permit license may be granted for the
6following time periods: one day or less; or 2 or more days to a
7maximum of 15 days per location in any 12-month period. An
8applicant for a beer showcase permit license must also submit
9with the application proof satisfactory to the State
10Commission that the applicant will provide dram shop liability
11insurance to the maximum limits and have local authority
12approval. The State Commission shall require the beer showcase
13applicant to comply with Section 6-27.1.
14(Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19;
15101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff.
168-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22;
17102-442, eff. 8-20-21; revised 2-28-22.)
18 (235 ILCS 5/6-40 new)
19 Sec. 6-40. Consumer loyalty and reward programs.
20 (a) In this Section, "consumer loyalty and reward program"
21means any program offered to consumers by a licensed retailer
22or manufacturer with retail privileges designed to allow a
23consumer to access rewards for purchases made at the retailer
24or manufacturer with retail privileges. "Consumer loyalty and
25reward program" includes, but is not limited to, point

HB3423- 42 -LRB103 30931 RPS 57479 b
1accumulation programs, memberships in retailer clubs or
2organizations, email lists or other forms of registration by a
3consumer in a retailer program, or mug clubs.
4 (b) Any retail licensee or licensed manufacturer with
5retail privileges may offer incentives to consumers for
6participation in a consumer loyalty and reward program.
7 (c) Any retail licensee or licensed manufacturer with
8retail privileges may, as part of a consumer loyalty and
9reward program, offer consumers discounts on its products.
10 (d) Any retail licensee or licensed manufacturer with
11retail privileges may offer benefits to the members or
12participants of a consumer loyalty and reward program that are
13not offered to other consumers.
14 (e) Any retail licensee or licensed manufacturer with
15retail privileges may offer specialty glassware for sale to
16members or participants in a consumer loyalty and reward
17program and offer a price discount to the owner of that
18glassware for additional purchases using the glassware.
19 (235 ILCS 5/8-10.5)
20 Sec. 8-10.5. Beer production quantity reporting.
21 (a) As used in this Section:
22 "Directly" means that a licensed distributor was not used
23in the transaction.
24 "Final packaging container" means the last vessel in which
25beer is held before (i) consumption by an individual on the

HB3423- 43 -LRB103 30931 RPS 57479 b
1brewer's licensed premises; (ii) being placed in a keg,
2bottle, or can for consumption by an individual; or (iii)
3being removed for additional fermentation and aging in a cask
4or barrel.
5 (b) A brewer who is a class 1 brewer, class 2 brewer, class
63 brewer, or brew pub licensee shall accurately measure the
7quantity of beer transferred into its final packaging
8container to determine the brewer's tax liability by
9converting beer production into the amount of beer sold and to
10ensure compliance with any production or self-distribution
11quantity limitations under this Act applicable to the class 1
12brewer, class 2 brewer, class 3 brewer, or brew pub. The
13measurement shall comply with 27 CFR 25.41 and 27 CFR 25.42.
14Any brewer subject to this Section shall file, on the same date
15as the brewer files similar reports with the U.S. Department
16of the Treasury's Tobacco and Alcohol Tax and Trade Bureau,
17with the Department and State Commission a report of their use
18of water along with their "Brewer's Report of Operations"
19filed with the U.S. Department of Treasury's Alcohol and
20Tobacco Tax and Trade Bureau and shall maintain and produce
21for examination and inspection by the Department and the State
22Commission utility bills for water for 3 years along with
23their "Brewer's Report of Operations" filed with the U.S.
24Department of Treasury's Alcohol and Tobacco Tax and Trade
25Bureau. The Department, in cooperation with the State
26Commission, may audit on an annual basis the amount a class 1

HB3423- 44 -LRB103 30931 RPS 57479 b
1brewer, class 2 brewer, class 3 brewer, or brew pub licensee
2produces to determine compliance with this Act.
3 (c) A brewer's failure to comply with this Section shall
4result in the State Commission issuing a fine or suspending or
5revoking the brewer's license.
6(Source: P.A. 102-442, eff. 8-20-21.)
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